Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Type | 20-F |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | AnPac Bio-Medical Science Co., Ltd. |
Document Period End Date | Dec. 31, 2019 |
Entity Well Known Seasoned Issuer | No |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001786511 |
Amendment Flag | false |
Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 9,868,000 |
Class A Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 7,004,900 |
Class B Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 2,863,100 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 880 | ¥ 6,125 | ¥ 12,887 |
Advances to suppliers | 157 | 1,093 | 2,807 |
Accounts receivable, net of allowance for doubtful accounts of RMB198 and RMB177 (US$25) as of December 31, 2018 and 2019 respectively | 186 | 1,295 | 2,749 |
Amounts due from related parties | 80 | 555 | 269 |
Inventories | 45 | 313 | 62 |
Other current assets | 1,837 | 12,790 | 2,078 |
Total current assets | 3,185 | 22,171 | 20,852 |
Property and equipment, net | 2,710 | 18,868 | 18,141 |
Land use rights, net | 172 | 1,194 | 1,222 |
Intangible assets, net | 747 | 5,200 | 5,406 |
Goodwill | 319 | 2,223 | 2,223 |
Long-term investments | 334 | 2,326 | 3,456 |
Other assets | 144 | 1,000 | 1,462 |
TOTAL ASSETS | 7,611 | 52,982 | 52,762 |
Current liabilities: | |||
Short-term debt | 5,540 | 38,568 | 25,961 |
Accounts payable | 259 | 1,800 | 1,618 |
Advance from customers | 352 | 2,450 | 4,313 |
Amounts due to related parties | 660 | 4,597 | 28,687 |
Accrued expenses and other current liabilities | 2,698 | 18,782 | 10,859 |
Total current liabilities | 9,509 | 66,197 | 71,438 |
Deferred tax liabilities | 163 | 1,134 | 1,222 |
Other long-term liabilities | 226 | 1,575 | 2,495 |
TOTAL LIABILITIES | 9,898 | 68,906 | 75,155 |
Commitments and contingencies | |||
Shareholders' deficit: | |||
Ordinary shares | 569 | ||
Additional paid-in capital | 37,021 | 257,736 | 152,367 |
Accumulated deficits | (39,712) | (276,476) | (174,353) |
Accumulated other comprehensive (loss) income | 303 | 2,110 | (976) |
Total AnPac Bio-Medical Science Co., Ltd. shareholders' deficit | (2,294) | (15,973) | (22,393) |
Noncontrolling interests | 7 | 49 | |
Total shareholders' deficit | (2,287) | (15,924) | (22,393) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 7,611 | 52,982 | ¥ 52,762 |
Class A Ordinary Shares | |||
Shareholders' deficit: | |||
Ordinary shares | 67 | 466 | |
Class B Ordinary Shares | |||
Shareholders' deficit: | |||
Ordinary shares | $ 27 | ¥ 191 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares |
Allowance for doubtful accounts | $ 25 | ¥ 177 | ¥ 198 |
Ordinary Shares | |||
Ordinary shares, par value per share | $ / shares | $ 0.01 | ||
Ordinary shares authorized | 0 | 0 | 100,000,000 |
Ordinary Shares issued | 0 | 0 | 8,596,900 |
Ordinary shares outstanding | 0 | 0 | 0 |
Class A Ordinary Shares | |||
Ordinary Shares | |||
Ordinary shares, par value per share | $ / shares | $ 0.01 | ||
Ordinary shares authorized | 70,000,000 | 70,000,000 | 0 |
Ordinary Shares issued | 7,004,900 | 7,004,900 | 0 |
Ordinary shares outstanding | 7,004,900 | 7,004,900 | 0 |
Class B Ordinary Shares | |||
Ordinary Shares | |||
Ordinary shares, par value per share | $ / shares | $ 0.01 | ||
Ordinary shares authorized | 30,000,000 | 30,000,000 | 0 |
Ordinary Shares issued | 2,863,100 | 2,863,100 | 0 |
Ordinary shares outstanding | 2,863,100 | 2,863,100 | 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Total revenues | $ 1,558 | ¥ 10,845 | ¥ 10,250 |
Cost of revenues | (869) | (6,047) | (5,672) |
Gross Profit | 689 | 4,798 | 4,578 |
Operating expenses: | |||
Selling and marketing expenses (including RMB700 and RMB2,199 (US$316) from related parties for years ended December 31, 2018 and 2019, respectively) | (1,958) | (13,633) | (9,827) |
Research and development expenses | (1,413) | (9,839) | (10,106) |
General and administrative expenses | (10,167) | (70,781) | (28,847) |
Other operating income | 54 | 373 | 593 |
Loss from operations | (12,795) | (89,082) | (43,609) |
Non-operating income and expenses: | |||
Interest expense, net (including RMB 824 and RMB 1,565 (US$225) from related parties for years ended December 31, 2018 and 2019, respectively) | (375) | (2,609) | (925) |
Foreign exchange loss, net | (461) | (3,219) | (2,776) |
Share of net (loss) gain in equity method investments | 27 | 190 | (441) |
Other income (expense), net | (1,023) | (7,119) | 5,256 |
Loss before income taxes | (14,627) | (101,839) | (42,495) |
Income tax benefit | 31 | 218 | 199 |
Net loss | (14,596) | (101,621) | (42,296) |
Net loss attributable to noncontrolling interests | 81 | 561 | 233 |
Net loss attributable to ordinary shareholders | $ (14,515) | ¥ (101,060) | ¥ (42,063) |
Loss per share: | |||
Ordinary shares-basic and diluted | (per share) | $ (1.62) | ¥ (11.31) | ¥ (4.93) |
Weighted average shares outstanding used in calculating basic and diluted loss per share | |||
Ordinary shares-basic and diluted | 8,937,600 | 8,937,600 | 8,524,100 |
Other comprehensive income, net of tax: | |||
Fair value change relating to Company's own credit risk on convertible loan | $ (137) | ¥ (955) | |
Foreign currency translation differences | 428 | 2,978 | ¥ 797 |
Total comprehensive loss | (14,305) | (99,598) | (41,499) |
Total comprehensive loss attributable to noncontrolling interests | (81) | (561) | (233) |
Total comprehensive loss attributable to ordinary shareholders | (14,224) | (99,037) | (41,266) |
Cancer screening and detection tests. | |||
Total revenues | 1,491 | 10,381 | 9,557 |
Physical checkup packages. | |||
Total revenues | $ 67 | ¥ 464 | ¥ 693 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Selling and marketing expenses from related parties | $ 316 | ¥ 2,199 | ¥ 700 |
Interest expense from related parties | 227 | 1,579 | 824 |
Cancer screening and detection tests. | |||
Revenue from related parties | $ 97 | ¥ 683 | ¥ 639 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (DEFICIT) ¥ in Thousands | Class A Ordinary SharesOrdinary SharesUSD ($)shares | Class A Ordinary SharesOrdinary SharesCNY (¥)shares | Class A Ordinary Sharesshares | Class B Ordinary SharesOrdinary SharesUSD ($)shares | Class B Ordinary SharesOrdinary SharesCNY (¥)shares | Class B Ordinary Sharesshares | Total AnPac Bio-Medical Science Co., Ltd. Shareholders' EquityUSD ($) | Total AnPac Bio-Medical Science Co., Ltd. Shareholders' EquityCNY (¥) | Ordinary SharesCNY (¥)shares | Additional Paid-in CapitalUSD ($) | Additional Paid-in CapitalCNY (¥) | Accumulated DeficitsUSD ($) | Accumulated DeficitsCNY (¥) | Accumulated Other Comprehensive IncomeUSD ($) | Accumulated Other Comprehensive IncomeCNY (¥) | Noncontrolling InterestsUSD ($) | Noncontrolling InterestsCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance, beginning of period at Dec. 31, 2017 | ¥ 9,558 | ¥ 564 | ¥ 143,057 | ¥ (132,290) | ¥ (1,773) | ¥ (61) | ¥ 9,497 | ||||||||||||
Balance, beginning of period (in shares) at Dec. 31, 2017 | shares | 8,524,000 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net loss | (42,063) | (42,063) | (233) | (42,296) | |||||||||||||||
Issuance of ordinary shares | 2,561 | ¥ 6 | 2,555 | 2,561 | |||||||||||||||
Ordinary share purchased | shares | 93,700 | ||||||||||||||||||
Foreign currency translation differences | 797 | 797 | 797 | ||||||||||||||||
Acquisition of non-controlling interest | (454) | (454) | 294 | (160) | |||||||||||||||
Repurchase and cancellation of shares | (728) | ¥ (1) | (727) | (728) | |||||||||||||||
Repurchase and cancellation of shares (in shares) | shares | (20,800) | ||||||||||||||||||
Share-based compensation (Note 12) | 7,936 | 7,936 | 7,936 | ||||||||||||||||
Balance, end of period at Dec. 31, 2018 | (22,393) | ¥ 569 | 152,367 | (174,353) | (976) | ¥ (22,393) | |||||||||||||
Balance end of period (in shares) at Dec. 31, 2018 | shares | 0 | 0 | 8,596,900 | 0 | 0 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Cumulative effect of the adoption of ASU 2016-01 (Note 10) | ASU 2016-01 | (1,063) | 1,063 | |||||||||||||||||
Cumulative effect of the adoption of ASU 2016-01 (Note 10) | 1,063 | ||||||||||||||||||
Balance, beginning of period | (22,393) | ¥ 569 | 152,367 | (175,416) | 87 | ¥ (22,393) | |||||||||||||
Re-designation of authorized ordinary shares (Note 1) | ¥ 378 | ¥ 191 | ¥ (569) | ||||||||||||||||
Re-designation of authorized ordinary shares (Note 1) (in shares) | shares | 5,733,800 | 5,733,800 | 2,863,100 | 2,863,100 | (8,596,900) | ||||||||||||||
Net loss | (101,060) | (101,060) | (561) | $ (14,596,000) | (101,621) | ||||||||||||||
Issuance of ordinary shares | $ 1,347,200 | ¥ 93 | 72,602 | 72,509 | 72,602 | ||||||||||||||
Fair value change relating to Company's own credit risk on convertible loan | (955) | (955) | (137,000) | (955) | |||||||||||||||
Foreign currency translation differences | 2,978 | 2,978 | 428,000 | 2,978 | |||||||||||||||
Capital contribution from noncontrolling interest holders | 610 | 610 | |||||||||||||||||
Repurchase and cancellation of shares | (76,100) | (5) | 5 | ||||||||||||||||
Share-based compensation (Note 12) | 32,855 | 32,855 | 32,855 | ||||||||||||||||
Balance, end of period at Dec. 31, 2019 | $ 67,000 | ¥ 466 | $ 27,000 | ¥ 191 | $ (2,294,000) | ¥ (15,973) | $ 37,021,000 | ¥ 257,736 | $ (39,712,000) | ¥ (276,476) | $ 303,000 | 2,110 | $ 7,000 | ¥ 49 | $ (2,287,000) | ¥ (15,924) | |||
Balance end of period (in shares) at Dec. 31, 2019 | shares | 7,004,900 | 7,004,900 | 7,004,900 | 2,863,100 | 2,863,100 | 2,863,100 | 0 | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | ¥ 87 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating activities: | |||
Net loss | $ (14,596) | ¥ (101,621) | ¥ (42,296) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 383 | 2,664 | 3,144 |
Share of net loss (gain) in equity method investments | (27) | (190) | 441 |
Bad debt expense | 41 | 285 | 452 |
(Gains) losses on disposal of land use rights and property and equipment | 1 | 4 | (4,955) |
Foreign exchange loss, net | 594 | 4,133 | 2,473 |
Share-based compensation | 4,719 | 32,855 | 7,936 |
Fair value loss on convertible loans | 761 | 5,296 | 784 |
Inventory provision | 44 | 304 | |
impairment charges | 190 | 1,320 | 0 |
Changes in operating assets and liabilities: | |||
Advances to suppliers | 246 | 1,714 | (1,646) |
Accounts receivable | 185 | 1,286 | (1,095) |
Inventories | (80) | (555) | 178 |
Amounts due from related parties | (41) | (286) | 13 |
Other current assets | (413) | (2,875) | 670 |
Other assets | 66 | 462 | (231) |
Accounts payable | 26 | 182 | (843) |
Amounts due to related parties | 152 | 1,060 | 960 |
Advance from customers | (269) | (1,863) | 2,328 |
Accrued expenses and other current liabilities | 1,183 | 8,233 | 1,412 |
Other long-term liabilities | (132) | (920) | (784) |
Deferred tax liabilities | (13) | (88) | (88) |
Net cash used in operating activities | (6,980) | (48,600) | (31,147) |
Investing activities: | |||
Purchase of property and equipment | (401) | (2,790) | (2,417) |
Purchases of intangible assets | (53) | (371) | (430) |
Proceeds from disposal of land use rights | 5,257 | ||
Cash paid for business combination, net of cash acquired | (3,540) | ||
Proceeds from short-term investments | 3,006 | 20,929 | 12,000 |
Purchases of short-term investments | (3,006) | (20,929) | (12,000) |
Purchases of long-term investments | (43) | (300) | (1,550) |
Net cash used in investing activities | (497) | (3,461) | (2,680) |
Financing activities: | |||
Proceeds from short-term borrowings | 3,490 | 24,300 | 26,645 |
Repayment of short-term borrowings | (2,629) | (18,300) | (14,700) |
Repayment of related party loan | (22) | (150) | (350) |
Capital contribution from noncontrolling interest holders | 88 | 610 | |
Advance from investors | 25,000 | ||
Repurchase of shares | (728) | ||
Proceeds from issuance of ordinary shares | 6,838 | 47,602 | 404 |
Payment for initial public offering costs | (1,143) | (7,954) | |
Net cash generated from financing activities | 6,622 | 46,108 | 36,271 |
Effect of exchange rate changes on cash and cash equivalents | (116) | (809) | (969) |
Net increase (decrease) in cash and cash equivalents | (971) | (6,762) | 1,475 |
Cash and cash equivalents at beginning of year | 1,851 | 12,887 | 11,412 |
Cash and cash equivalents at end of year | 880 | 6,125 | 12,887 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 148 | 1,028 | 891 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Purchase of ordinary shares when registered included in advance from investors | 3,591 | 25,000 | 2,157 |
Purchase of property and equipment included in accrued expenses and other current liabilities | $ 2 | ¥ 15 | ¥ 28 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES AnPac Bio-Medical Science Co., Ltd. (the “Company”) was incorporated in the British Virgin Islands (the “BVI”) in January 2010. The Company and its subsidiaries (collectively, the “Group”) are engaged in marketing and selling a multi-cancer screening and detection test that uses innovative, patented cancer differentiation analysis (the “CDA”) technology and proprietary cancer-detection devices in the People’s Republic of China (the “PRC” or “China”). Dr. Chris Chang Yu is the Founder of the Group (the “Founder”). In preparation of its initial public offering in the United States, the Company had undergone a reorganization in 2019. On October 29, 2019, the board of directors approved the re-designation of the authorized share capital of 100,000 ordinary shares to 71,369 Class A ordinary shares and 28,631 Class B ordinary shares. On October 31, 2019, the board of directors approved the increase of authorized share capital of the Class A and Class B ordinary shares to 700,000 and 300,000, respectively. Holders of Class A ordinary shares and Class B ordinary shares have the same rights, except for voting and conversion rights. Each Class A ordinary share is entitled to one vote; and each Class B ordinary share is entitled to ten votes and is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. On October 31, 2019, the board of directors approved a share split of 1-for-100, pursuant to which the authorized share capital of the Class A and Class B ordinary shares would increase to 70,000,000 and 30,000,000, respectively, with a par value of US$0.01. The registration of the above changes was completed on November 12, 2019 and the ordinary shares have been retrospectively adjusted accordingly. On January 30, 2020, the Company completed an initial public offering ("IPO") on the Nasdaq Stock Exchange. The Company offered 1,333,360 ADSs representing 1,333,360 Class A ordinary shares at USD12.00 per ADS. As of the date of this report, the details of the Company’s principal subsidiaries are as follows: Percentage of Date of Place of Major subsidiaries Ownership Incorporation Incorporation Major Operation Changhe Bio-Medical Technology (Yangzhou) Co., Ltd. % March 2010 the PRC Cancer screening and detection tests Changwei System Technology (Shanghai) Co., Ltd. % March 2011 the PRC Research and development AnPac Bio-Medical Technology (Lishui) Co., Ltd. % October 2012 the PRC Cancer screening detection tests and device manufacturing Shanghai Xinshenpai Technology Co., Ltd. % October 2013 the PRC Cancer screening and detection tests AnPac Bio-Medical Technology (Shanghai) Co., Ltd. % April 2014 the PRC Cancer screening and detection tests AnPac Technology USA Co., Ltd. (“AnPac US”) % September 2015 the U.S. Clinical trials for research on cancer screening and detection tests Lishui AnPac Medical Laboratory Co., Ltd. % August 2016 the PRC Cancer screening and detection tests Shiji (Hainan) Medical Technology Ltd. % November 2017 the PRC Cancer screening and detection tests Penghui Health Management Co., Ltd. % May 2018 the PRC Cancer screening and detection tests |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. (c) The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Areas where management uses subjective judgement include, but are not limited to allowance for doubtful accounts, share-based compensation, deferred tax and uncertain tax position, purchase price allocation, valuation of convertible loans, useful lives of intangible assets and property and equipment, and impairment of long-lived assets, goodwill and long-term investments. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. (d) The functional currency of the Company and AnPac US is the United States dollar and its reporting currency is Renminbi. The functional currency of the Company’s PRC subsidiaries is the RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. The financial statements of the Company and AnPac US are translated from the functional currency to the reporting currency, RMB. Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss. The Group uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive loss, a component of shareholders’ deficit. (e) Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.9618 on December 31, 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal or use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. (g) Short -term investments All highly liquid investments with original maturities of greater than three months, but less than 12 months, are classified as short-term investments. Investments that are expected to be realized in cash during the next 12 months are also included in short-term investments. The Group accounts for short-term debt instruments in accordance with ASC 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as “held-to-maturity”, “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities are included in earnings. Any realized gains or losses on the sale of the short-term investments are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. The securities that the Group has positive intent and ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. For individual securities classified as held-to-maturity securities, the Group evaluates whether a decline in fair value below the amortized cost basis is other-than-temporary in accordance with ASC 320. Other-than-temporary impairment loss is recognized in the consolidated statements of comprehensive loss equal to the entire excess of the debt security’s amortized cost basis over its fair value at the balance sheet date of the reporting period for which the assessment is made. The Group’s short-term held-to-maturity investments consisted of wealth management products as the Group has the positive intent and ability to hold those securities to maturity. For the years ended December 31, 2018 and 2019, the Group recorded interest income from its short-term investments of RMB158 and RMB39 (US$6) in the consolidated statements of comprehensive loss, respectively. (h) Accounts receivable, net of allowance for doubtful accounts Accounts receivable are recorded at their invoiced amounts, net of allowances for doubtful accounts. An allowance for doubtful accounts is recorded when the collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers specific evidence, including aging of the receivable, the customer’s payment history, its current creditworthiness and current economic trends. Accounts receivable are written off after all collection efforts have ceased. The Group regularly reviews the adequacy and appropriateness of the allowance for doubtful accounts. Movement in the allowances for doubtful debts were as follows: Year Ended December 31, 2018 2019 2019 RMB RMB US$ Balance at beginning of year 18 198 28 Additional provision 334 168 24 Write-offs (154) (189) (27) Balance at end of year 198 177 25 (i) Inventories Inventories are stated at the lower of cost or net realizable value. Cost of inventories are determined using the first in first out method. The Group records inventory reserves for obsolete and slow-moving inventory. (j) Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Repair and maintenance costs are charged to expense as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Retirements, sale and disposals of assets are recorded by removing the cost and accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Direct costs that are related to the construction of property and equipment and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. (k) term investments The Group’s long-term investments include equity method investments and Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323, Investments-Equity Method and Joint Ventures ("ASC 323"). Under the equity method, the Group initially records its investment at cost and the difference between the cost of the equity investee and the amount of the underlying equity in the net assets of the equity investee is accounted for as if the investee were a consolidated subsidiary. The equity method goodwill is not subsequently amortized and is not tested for impairment under ASC 350. The share of earnings or losses of the investee are recognized in the consolidated statements of comprehensive loss. Equity method adjustments include the Group’s proportionate share of investee income or loss, adjustments to recognize certain differences between the Group’s carrying value and its equity in net assets of the investee at the date of investment, impairments, and other adjustments required by the equity method. The Group assesses its equity investment for other-than-temporary impairment by considering factors as well as all relevant and available information including, but not limited to, current economic and market conditions, the operating performance of the investees including current earnings trends, the general market conditions in the investee’s industry or geographic area, factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, and cash burn rate and other company-specific information. Investments in equity securities without readily determinable fair values are measured at cost minus impairment adjusted by observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These investments are measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive loss equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption of ASU 2016-01 on January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. In the years ended December 31, 2018 and 2019, the Group has recognized an impairment on its equity investment in Jiangsu Anpac Health Management Co., Ltd. of Nil and RMB1,320 (US$190). (l) use right, net All land in the PRC is owned by the PRC government. The PRC government may sell land use rights for a specified period of time. Land use rights represent lease prepayments to the PRC government and are carried at cost less accumulated amortization. Land use rights are amortized on a straight-line basis over the terms of the land use right of 50 years. (m) Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations . The cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total of the cost of the acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the identifiable net assets of the acquiree, the difference is recognized directly in earnings. The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. (n) Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. All intangible assets with finite lives are amortized using the straight-line method over the estimated useful lives. Intangible assets have estimated useful lives from the date of purchase as follows: Category Estimated useful life Software years Medical license years (o) Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2018 and 2019 was related to its business acquisition in November 2017. Goodwill acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance with ASC 350‑20, Intangibles-Goodwill and Other, Goodwill, ("ASC 350-20") the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350‑20. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired, and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. In the years ended December 31, 2018 and 2019, the Group performed a qualitative assessment for the reporting unit. Based on the requirements of ASC 350‑20, the Group evaluated all relevant qualitative and quantitative factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not that the fair value of the reporting unit was less than its carrying amount. Therefore, no goodwill impairment was recognized as of December 31, 2018 and 2019. (p) Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets, including property and equipment and intangibles with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The adjusted carrying amount of the assets become new cost basis and are depreciated over the assets’ remaining useful lives. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. (q) The Group applies ASC 820, Fair Value Measurements and Disclosures , (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group’s financial instruments include cash and cash equivalents, accounts receivables, accounts payable, other receivables, other payables and short-term debt. The carrying values of these financial instruments approximate their fair values due to their short-term maturities. The Company elected the fair value option to account for its convertible loans. The fair value of the convertible loans as of December 31, 2018 and 2019 was RMB17,961 and RMB24,568 (US$3,529), calculated using the binomial tree model based on probability of remaining as straight debt using discounted cash flow and equity based on the premium conversion ratio of 25%, respectively. The convertible loans are classified as level 3 instruments as the valuation was determined based on unobservable inputs which are supported by little or no market activity and reflect the Group’s own assumptions in measuring fair value. Significant inputs used in developing the fair value of the convertible loans include time to maturity, risk-free interest rate, straight debt discount rate, probability to convert and expected timing of conversion. Refer to Note 8 for additional information. Prior to the adoption of ASU 2016-01 on January 1, 2019, fair value changes relating to the Company's own credit risks of the convertible bonds accounted for under fair value option were recognized together with the total changes in fair value in the consolidated statement of comprehensive loss. After the adoption of ASU 2016-01, such fair value changes related to the Company's own credit risks are recognized separately in accumulated other comprehensive loss. There was decrease to beginning retained deficits of RMB1,063 and increase to accumulated other comprehensive income of RMB1,063 in consolidated statements of shareholders' deficits as a result of applying the new accounting standard. As the inputs used in developing the fair value for level 3 instruments are unobservable, and require significant management estimate, a change in these inputs could result in a significant change in the fair value measurement. (r) Revenue recognition Effective January 1, 2017, the Group early adopted ASC 606, Revenue from Contracts with Customers and subsequent amendments to the initial guidance or implementation guidance issued between August 2015 and December 2016 within ASU 2015‑14, ASU 2016‑08, ASU 2016‑10, ASU 2016‑12 and ASU 2016‑20 (collectively, “ASC 606”). The transition adjustment using modified retrospective method recorded in 2017 beginning retained earnings was immaterial. The Group derives its revenues principally from customers through the Group’s cancer screening and detection test and physical checkup package services. Revenue is recognized when the Group satisfies the performance obligations in an amount of consideration to which the Group expects to be entitled to in exchange for those services. The Group evaluates the presentation of revenue on a gross or net basis based on whether it controls the services provided to customers and is the principal (i.e. “gross”), or the Group arranges for other parties to provide the service to the customers and is an agent (i.e. “net”). The Group presents value-added taxes as a reduction from revenues. Revenue from cancer screening and detection tests Revenue from cancer screening and detection test are primarily generated through the sales of the Group’s cancer screening and detection tests based on CDA technology and other cancer screening and detection technologies, such as biomarker-based tests, to its customers i.e. corporations and life insurance companies. A contract exists when the master service agreement has been executed and the customer submitting a service request, which is a placed order. The Group’s contracts have a single performance obligation which is satisfied upon rendering of the cancer screening and detection tests and delivery of the cancer screening and detection test results to the customer. The Group acts as the principal as it controls the cancer screening and detection tests before it is transferred to the customer and records revenue on a gross basis at a point in time, when the cancer screening and detection test results are delivered to the customer. Revenue from physical checkup packages The Group facilitates corporations and life insurance companies to procure physical checkup package services for their employees and policy holders, respectively, from third-party physical checkup package service providers. The Group enters into contracts with corporations and life insurance companies and physical checkup service providers. The Group considers both the corporations and life insurance companies and the third-party physical checkup package service providers as its customers in this type of transaction. The Group’s performance obligation is to facilitate the corporations and life insurance companies and the third-party physical checkup package service providers to complete the purchase of physical checkup package services, which is not controlled by the Group prior to being transferred to the corporations and life insurance companies. Therefore, the Group fulfills its performance obligation at a point in time when the employees and policy holders of corporations and life insurance companies, respectively, complete the physical checkups and the Group records the net amount that it retains from such completed transaction as revenue. The Group also enters into arrangements to deliver both cancer screening and detection tests and physical checkup package services. The Group is the principal for the cancer screening and detection tests and the agent for physical checkup package services. Revenues for cancer screening and detection tests and physical checkup are both recognized at a point in time when the performance obligation is satisfied upon delivery of the cancer screening and detection test results to the end customers and completion of physical checkup respectively. As the Group acts as both the principal and agent in the arrangement, the Group allocates the transaction price to each performance obligation on a relative stand-alone selling price basis. All revenues are generated in the PRC. Contract balances The payment terms and conditions within the Group’s contracts vary by the type of services and the customers. Contract assets relate to the Group’s conditional right to consideration for completed performance obligations under the contract. Accounts receivable are recorded when the right to consideration becomes unconditional. The Group does not have contract assets for the years presented. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. Contract liabilities represent considerations received from corporations and life insurance companies in advance of satisfying the Group’s performance obligations under the contract, which are presented in “advance from customers” in the consolidated balance sheets. Revenue recognized that was included in contract liabilities at the beginning of the period was RMB503 and RMB2,700 (US$388) for the years ended December 31, 2018 and 2019, respectively. The following table reflects the changes in contract liabilities as of December 31, 2018 and 2019: As of December 31, 2018 2019 2019 RMB RMB US$ Contract liabilities 4,313 2,450 352 Contract liabilities decreased by RMB1,863 (US$269), due to the decrease in consideration received by corporations and life insurance companies in the normal course of business. PRC Value-Added Taxes and surcharges Starting from May 2016, the services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. Practical expedients The Group has applied the following practical expedients: (i) The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. (ii) The Group recognizes incremental costs to obtain a contract as expenses when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. (s) Costs of revenues consists of staff costs, outsourced testing costs, blood sample taking costs, medical consumable costs, share-based compensation and depreciation of CDA equipment. (t) Research and development expenses primarily are comprised of costs incurred in performing research and development activities, including related personnel and consultant’s salaries, benefits, share-based compensation and related costs, raw materials and supplies for internally-developed product candidates and external costs of outside vendors engaged to conduct clinical development activities and trials. The Group expenses research and development expenses as they are incurred. (u) Government grants include financial incentives in the form of cash subsidies that involve no conditions or continuing performance obligations of the Group. Government grants are recognized as other non-operating income upon receipt. For government grants related to assets in the form of land use rights, the government grants are recorded as deferred income when received. The deferred income is then recognized in other income, net in the consolidated statement of comprehensive loss on a systematic basis over the useful life of the related asset. (v) Leases are classified at the inception date as either a capital lease or an operating lease. The Group assesses a lease to be a capital lease if any of the following conditions exist: (a) ownership is transferred to the lessee by the end of the lease term, (b) there is a bargain purchase option, (c) the lease term is at least 75% of the property’s estimated remaining economic life, or (d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an occurrence of an obligation at the inception of the lease. The Group has no capital leases for the years presented. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective lease terms. The Group leases office space, storage unit, research laboratory, employee accommodation and manufacturing space under operating lease agreements. Certain of the lease agreements contain rent holidays. Rent holidays are considered in determining the straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on straight-line basis over the term of the lease. (w) As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. The total expenses the Group incurred for the plan were RMB3,250 and RMB3,249 (US$467) for the year ended December 31, 2018 and 2019, respectively. (x) The Group accounts for share-based compensation in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or an equity award. All the Company’s share-based awards were classified as equity awards and are recognized in the consolidated financial statements based on their grant date fair values. In June 2018, the FASB issued ASU No. 2018‑07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting to simplify the accounting for share-based payments to nonemployees (“ASU 2018‑07”) by aligning it with the accounting for share-based payments to employees, with certain exceptions. The measurement of equity-classified nonemployee awards will be fixed at the grant date. The Group elected to early adopt ASU 2018‑07 on January 1, 2017 and the transition adjustment recorded in 2017 beginning retained earnings was immaterial. In accordance with ASC 718, the Group recognizes share-based compensation cost for equity awards to employees and non-employees with a performance condition based on the probable outcome of that performance condition. Compensation cost is recognized if it is probable that the performance condition will be achieved and shall not be recognized if it is not probable that the performance condition will be achieved. The Group has elected to recognize share-based compensation using the straight-line method for all share-based awards granted with graded vesting based on service conditions. The Group uses the accelerated method for all awards granted with graded vesting based on performance conditions. The Group accounts for forfeitures as they occur in accordance with ASU No. 2016‑09, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting . The Group, with the assistance of an independent third-party valuation firm, determined the fair value of the stock options granted to employees. The binomial option pricing model was applied in determining the estimated fair value of the options granted to employees |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | 3. OTHER CURRENT ASSETS Other current assets consists of the following: As of December 31, 2018 2019 2019 RMB RMB US$ Capitalized listing expense — 9,764 1,404 Tax recoverable 1,431 1,574 226 Others 647 1,452 207 Total 2,078 12,790 1,837 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 4 . PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of December 31, 2018 2019 2019 RMB RMB US$ Buildings 15,771 16,029 2,302 Leasehold improvements 52 52 8 Furniture, fixtures and equipment 8,466 10,352 1,487 Motor vehicles 526 530 76 Total 24,815 26,963 3,873 Less: Accumulated depreciation (7,093) (8,728) (1,255) 17,722 18,235 2,618 Construction in progress 419 633 92 Property and equipment, net 18,141 18,868 2,710 Depreciation expense was RMB2,357 and RMB2,059 (US$296) for the years ended December 31, 2018 and 2019, respectively. No impairment charges were recognized on the property and equipment for the years ended December 31, 2018 and 2019. |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2019 | |
Land use rights | |
LAND USE RIGHTS, NET | |
LAND USE RIGHTS, NET | 5 . The land use rights assets as of December 31, 2019 and 2018 are summarized as follows: As of December 31, 2018 2019 2019 RMB RMB US$ Land use rights, cost 1,388 1,388 199 Less: Accumulated amortization (166) (194) (27) Land use rights, net 1,222 1,194 172 Amortization expense of the land use rights for the years ended December 31, 2018 and 2019 was RMB257 and RMB28 (US$ 4), respectively. As of December 31, 2019, expected amortization expense for the land use rights is approximately RMB28 in 2020, RMB28 in 2021, RMB28 in 2022, RMB28 in 2023, RMB28 in 2024 and RMB1,054 in 2025 and thereafter. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
Purchased software and Medical License Intangibles | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 6 . INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of December 31, 2018 2019 2019 RMB RMB US$ Software 934 1,305 187 Medical license 5,300 5,300 761 Total 6,234 6,605 948 Less: Accumulated amortization (828) (1,405) (201) Total 5,406 5,200 747 Amortization expense of intangible assets for the years ended December 31, 2018 and 2019 amounted to RMB530 and RMB577 (US$83), respectively. The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB 2020 594 2021 575 2022 518 2023 391 2024 353 Thereafter 2,769 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 7 . LONG-TERM INVESTMENTS As at December 31, 2018 and 2019, long-term investments consisted of the following: As of December 31, 2018 2019 2019 RMB RMB US$ Equity method investments Anpac Beijing Health Management Co., Ltd (“Anpac Beijing”) 607 802 115 Shanghai Moxu Bio-medical Science Co., Ltd.(“Moxu”) 99 94 14 Equity securities without readily determinable fair values Jiangsu Anpac Health Management Co., Ltd. (“Jiangsu Anpac”) 2,750 2,750 395 Less: Impairment — (1,320) (190) Total 3,456 2,326 334 Equity method investments On October 19, 2017, the Group and other third parties established Anpac Beijing, of which the Group owned 35% of the investment. In October 2019, the Group’s registered shareholding ratio of Anpac Beijing decreased from 35% to 18% according to the resolution of Anpac Beijing signed in October and the Group's paid-in shareholding ratio is 35% in both 2018 and 2019. On June 8, 2018, the Group and other third parties established Moxu, of which the Group owned 20% of the investment. Equity securities without readily determinable fair values In January 2016, the Group and other third parties established Jiangsu Anpac, of which the Group owned 10% of the investment. In November 2017, the Group further acquired a 5% equity interest. The Group accounted for the investment under cost method since the Group does not have the ability to exert significant influence over Jiangsu Anpac prior to January 1, 2019. With the adoption of ASU 2016-01, the Group accounted for it as equity securities without readily determinable fair values. The Group elected to use the measurement alternative to measure such investments at fair value based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including the investees' revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. |
SHORT-TERM DEBT
SHORT-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM DEBT | |
SHORT-TERM DEBT | 8. SHORT-TERM DEBT As of December 31, 2018 2019 2019 RMB RMB US$ Short-term bank and other borrowings (i) 8,000 14,000 2,011 Convertible loans (ii) 17,961 24,568 3,529 Total 25,961 38,568 5,540 (i) The short-term borrowings in 2019 consists of an RMB8,000 and an RMB6,000 borrowing that has a fixed interest rate of 11% and 4.35%, respectively and are pledged by certain properties of the Group and Dr. Chris Chang Yu, and guaranteed by Dr. Chris Chang Yu. (ii) During April to August of 2018, the Group issued convertible loans with an aggregate principal amount of US$2,500 to Jiaxing Zhijun Investment Management Co., Ltd. (“Zhijun”). The CL is originally due in one year and bears interest of 9% per annum if the conversion feature is not triggered. The CL is ultimately guaranteed by Dr. Chris Chang Yu’s personal assets. Conversion feature During the term of the CL, if the Group completes a financing round that raises in aggregate, an amount greater than US$5,000 (or an amount otherwise mutually agreed between the Group and Zhijun), Zhijun may convert the principal amount of the CL into the Group’s ordinary shares at a premium of 25% of the loan principal or at the conversion price based on the agreed Group’s valuation of RMB488,000 after the effectiveness of the second modification of CL on October 30, 2019 as mentioned below. Modifications of CL On April 26, 2019, the Group and Zhijun agreed to extend the term of the CL to October 31, 2019. No other terms of the CL were modified. On October 30, 2019 the Group and Zhijun agreed to further extend the term of the CL to April 30, 2020, and the conversion feature has also been changed as mentioned above. In accordance with ASC 470‑50, Debt, as the present value of cash flows under the term of the new debt instrument did not differ by more than 10% from the present value of the remaining cash flows under the term of the original debt instrument, the modification was accounted for prospectively as yield adjustments based on the revised terms. The Group has elected to recognize the CL at fair value and therefore there was no further evaluation of embedded features for bifurcation. The Group recognized an unrealized loss of RMB784 and RMB5,296 (US$761) in other expense for the years ended December 31, 2018 and 2019, except for the fair value changes related to the Group's own credit risks which are recognized in accumulated other comprehensive loss for the year ended December 31, 2019. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 . ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2018 2019 2019 RMB RMB US$ Salary and welfare payable 7,735 9,498 1,364 Payable for business combination and long-term investment 300 — — Payable for acquisition of noncontrolling interests 245 245 35 Accrued rental 801 1,550 223 Accrued expenses 691 4,430 636 Value added tax and other taxes payable 523 100 14 Payable for property and equipment 28 15 2 Accrued utilities 5 5 1 Other payables 531 2,939 423 Total 10,859 18,782 2,698 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 10. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Other comprehensive (loss) income includes the foreign currency translation differences and fair value change relating to Company's own credit risk on convertible loan. A rollforward of the amounts included in accumulated other comprehensive (loss) income for the years ended December 31, 2018 and 2019 was as follows: Foreign currency Fair Value translation adjustments change Total RMB Balance as of January 1, 2018 (1,773) — (1,773) Foreign currency translation differences 797 — 797 Balance as of December 31, 2018 (976) — (976) Cumulative effect of the adoption of ASU 2016-01* — 1,063 1,063 Balance as of January 1, 2019 (976) 1,063 87 Fair value change relating to Company's own credit risk on convertible loan — (955) (955) Foreign currency translation differences 2,978 — 2,978 Balance as of December 31, 2019 2,002 108 2,110 US$ Balance as of December 31, 2019 288 15 303 *Adjustment of fair value change related to Company’s own credit risk on convertible loan from accumulated other comprehensive income to opening retained earnings as a result of the adoption of ASU 2016-01 on January 1, 2019. There have been no reclassifications out of accumulated other comprehensive income to net income for the periods presented. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 11. SHARE BASED COMPENSATION On February 1, 2010, the shareholders and Board of Directors (the “Board”) of the Company approved a resolution which authorized the chairman of the Board to grant share options to its eligible employees, directors, officers and consultants of the Group of a number of shares not exceeding 1,190,000 before July 1, 2017. On October 19, 2015, the shareholders and the Board approved a resolution to increase the authorized number to grant in the future up to 1,866,600. On July 1, 2017, in order to provide additional incentives to attract and retain key employees, directors, officers and consultants of outstanding ability and to motivate them to exert their best efforts, the shareholders and the Board further approved a resolution to grant in the future up to 860,000. The options granted are vested either (i) immediately upon grant date; or (ii) over various vesting schedule which no more than four years. On October 31, 2019, the shareholders and the Board approved the 2019 Share Incentive Plan (“2019 Plan”) which authorized the compensation committee or such other committee to grant share options to directors, service provider, advisor, employees and consultants of the Group of a number of shares not exceeding 1,105,300. As of December 31, 2019, no options has been granted under 2019 Plan. On October 31, 2019, the board of directors approved a share split of 1‑for‑100, pursuant to which the authorized share capital of the Class A and Class B ordinary shares would further increase to 70,000,000 and 30,000,000 respectively, with a par value of US$0.01. The registration of the above changes was completed on November 12, 2019 and the number of underlying shares and the fair market value per ordinary share as at grant dates have been retrospectively adjusted accordingly. Employees The options granted to employees are measured based on the grant date fair value of the equity instrument. They are accounted for as equity awards and contain only service vesting conditions. The following table summarized the Group’s employee share option activities: Weighted Weighted Average Weighted Average Remaining Aggregate Number of Average Grant date Contractual Intrinsic Options Exercise Price Fair Value Term Value US$ per US$ per Years US$ option option Share options outstanding at January 1, 2018 427,100 0.0001 4.93 7.21 4,041 Granted 206,000 0.0005 9.53 Forfeited (1,600) 0.0010 4.45 Share options outstanding at January 1, 2019 631,500 0.0002 6.43 6,090 Granted 327,000 Forfeited (42,000) Nil 9.68 Share options outstanding at December 31, 2019 916,500 7.48 7.26 8,985 Vested and expected to vest at December 31, 2019 916,500 0.0003 7.48 7.26 8,985 Exercisable as of December 31, 2019 592,000 5,804 The aggregate intrinsic value in the table above represents the difference between the exercise price of the awards and the fair value of the underlying Ordinary Shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant Ordinary Shares. The total fair value of the equity awards vested during the years ended December 31, 2018 and 2019 were RMB2,312 and RMB12,376 (US$1,778), respectively. As of December 31, 2019, there was RMB 15,595 (US$2,240) in total unrecognized employee share-based compensation expense related to unvested options, that may be adjusted for actual forfeitures occurring in the future. Total unrecognized compensation cost may be recognized over a weighted-average period of 2.27 years. Nonemployees The options granted to nonemployees are accounted for as equity awards with service and/or performance vesting conditions. The following table summarized the Group’s nonemployee share option activity: Weighted Weighted Weighted Average Average Average Remaining Aggregate Number of Exercise Grant date Contractual Intrinsic Options Price Fair Value Term Value US$ per US$ per option option Years US$ Share options outstanding at January 1, 2018 219,400 0.0000 4.91 7.22 2,076 Granted 53,700 0.0005 9.55 Forfeited (160,000) Nil 4.44 Exercised (19,400) Nil 6.50 Share options outstanding at January 1, 2019 93,700 0.0004 7.53 8.11 904 Granted 153,300 0.0003 9.80 Share options outstanding at December 31, 2019 247,000 0.0003 8.94 8.40 2,422 Vested and expected to vest at December 31, 2019 247,000 0.0003 8.94 8.40 2,422 Exercisable as of December 31, 2019 202,600 0.0003 9.00 8.21 1,986 The aggregate intrinsic value in the table above represents the difference between the exercise price of the awards and the fair value of the underlying Ordinary Shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant Ordinary Shares. The total fair value of the equity awards vested during the years ended December 31, 2018 and 2019 were RMB3,004 and RMB9,284 (US$1,334) respectively. As of December 31, 2019, there was RMB 2,859 (US$411) of total unrecognized nonemployee share-based compensation expenses, related to unvested share-based awards. Total unrecognized compensation cost may be recognized over a weighted-average period of 0.71 years. Fair value of options The Company uses the binomial tree option pricing model to estimate the fair value of share options with the assistance of an independent third-party valuation firm. The assumptions used to value the share options granted to employees and nonemployee were as follows: 2018 2019 Risk-free interest rate 2.46%- 3.11 % 1.55%- 2.50 % Expected volatility range 62.14%- 63.61 % 60.37%- 64.48 % Exercise multiple Fair market value per ordinary share as at grant dates US$9.46- 9.61 US$9.61- 9.80 The estimated fair value of the Company’s ordinary shares at their respective grant dates, was determined with the assistance of an independent third-party valuation firm. The risk-free interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. Expected volatility is estimated based on the historical volatility ordinary shares of several comparable companies in the same industry. The expected exercise multiple is based on management’s estimation, which the Company believes is representative of the future. The Company also entered into a share purchase agreement with CRS Holdings Inc. ("CRS", a company controlled by Dr. Chris Chang Yu, who has also been served as the Chief Executive Officer since the inception of the Group) in 2019. Per the share purchase agreement, CRS purchased 214,000 ordinary shares at a consideration of $3.27 per share. The below fair value offering price in the share purchase agreement with CRS essentially represents compensation to Dr. Chris Chang Yu, for past services incurred. The following table sets forth the amount of share-based compensation expense included in each of the relevant financial statement line items: For the year ended December 31, 2018 2019 2019 RMB RMB US$ Cost of revenues 317 327 47 Selling and marketing expenses 2,871 5,393 775 Research and development expenses 1,958 2,534 364 General and administrative expenses 2,790 24,601 3,533 Total share-based compensation expenses 7,936 32,855 4,719 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 12. INCOME TAXES BVI The Company is incorporated in the BVI and conducts its primary business operations through the subsidiaries in the PRC and the U.S. Under the current laws of the BVI, the Company is not subject to tax on income or capital gains. Additionally, upon payments of dividends by the Company to its shareholders, no BVI withholding tax will be imposed. PRC The Company’s subsidiaries in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the “EIT Law”), which was effective since January 1, 2008. Changhe Bio-Medical Technology (Yangzhou) Co., Ltd., Changwei System Technology (Shanghai) Co., Ltd., Shanghai Xinshenpai Technology Co., Ltd., AnPac Bio-Medical Technology (Shanghai) Co., Ltd., Lishui AnPac Medical Laboratory Co., Ltd., Shiji (Hainan) Medical Technology Ltd. and Penghui Health Management Co., Ltd. are entitled to a preferential income tax rate of 20%, as they qualify as small and micro-sized enterprises. Dividends, interests, rent and royalties payable by the Company’s PRC subsidiaries, to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with PRC that provides for a reduced withholding tax rate or an exemption from withholding tax. United States AnPac US is subject to the U.S. federal corporate income tax at a rate of 21% for the years ended December 31, 2018 and 2019, respectively. AnPac US is also subject to state income tax in California for the years ended December 31, 2018 and 2019. The Group’s loss before income taxes consisted of: Years ended December 31, 2018 2019 2019 RMB RMB US$ Non-PRC (18,944) (56,658) (8,137) PRC (23,551) (45,181) (6,490) Total (42,495) (101,839) (14,627) The current and deferred components of income tax benefit appearing in the consolidated statements of comprehensive income are as follows: Years ended December 31, 2018 2019 2019 RMB RMB US$ Current tax 111 130 18 Deferred tax 88 88 13 Total 199 218 31 The reconciliation of tax computed by applying the statutory income tax rate of 25% for the years ended December 31, 2018 and 2019 applicable to the PRC operations to income tax benefit were as follows: Years ended December 31, 2018 2019 2019 RMB RMB US$ Loss before income taxes (42,495) (101,839) (14,627) Income tax benefit computed at the statutory income tax rate at 25% 10,624 25,460 3,657 Non-deductible expenses (4,485) (5,141) (738) International rate differences (2,227) (11,367) (1,633) Preferential tax rate differences (210) (710) (102) Effect of change in tax rate (826) 789 113 Change in valuation allowance (2,677) (8,813) (1,266) Income tax benefit 199 218 31 Deferred Taxes The significant components of deferred taxes were as follows: As of December 31, 2018 2019 2019 RMB RMB US$ Deferred tax assets: Net loss carryforward 14,705 23,148 3,325 Accrued expenses 1,043 1,479 212 Bad debt expenses 85 70 10 Others 120 69 10 Valuation allowance (15,953) (24,766) (3,557) Total deferred tax assets — — — Deferred tax liabilities: Long-lived assets arising from acquisition (1,222) (1,134) (163) Total deferred tax liabilities (1,222) (1,134) (163) The Group operates through several subsidiaries. Valuation allowance is considered for each of the entities. Realization of the net deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss carry forwards. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity basis. As of December 31, 2018 and 2019, the Company and all of its subsidiaries were in cumulative loss position, valuation allowances were provided against deferred tax assets in entities where it was determined it was more likely than not that the benefits of the deferred tax assets will not be realized. As of December 31, 2019, the Group had tax losses of RMB136,796 (US$19,896) derived from entities in the PRC and the U.S., of which can be carried forward per tax regulation to offset future taxable income. The PRC taxable losses of RMB 109,181 (US$15,683) will expire from 2020 to 2024 if not utilized. The U.S. taxable losses of RMB19,043 (US$ 2,735) can be utilized indefinitely while the remainder will expire from 2035 to 2037. Unrecognized Tax Benefits As of December 31, 2018 and 2019, the Group recorded an unrecognized tax benefit of RMB9,398 and RMB11,847 (US$1,702), respectively, of which RMB9,235 and RMB11,847 (US$1,702), respectively, were presented on a net basis against the deferred tax assets related to tax loss carry forwards on the consolidated balance sheets. The unrecognized tax benefits were primarily related to transfer pricing and deductibility of expense. The amounts of unrecognized tax benefits will change in the next 12 months, pending clarification of current tax law or audit by the tax authorities, however, an estimate of the range of the possible change cannot be made at this time. As of December 31, 2018 and 2019, unrecognized tax benefits of RMB130 and Nil, if ultimately recognized, will impact the effective tax rate. A roll-forward of unrecognized tax benefits is as follows: Years ended December 31, 2018 2019 2019 RMB RMB US$ Balance at beginning of year 6,936 9,398 1,350 Addition based on tax positions related to the current year 3,064 2,810 404 Decrease based on tax positions related to prior years (602) (361) (52) Balance at end of year 9,398 11,847 1,702 The Group recorded interest accrued in relation to the unrecognized tax benefit in income tax expense of RMB40 and Nil for the years ended December 31, 2018 and 2019, respectively. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 13. RESTRICTED NET ASSETS In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to make appropriations to certain statutory reserves, namely a general reserve fund, an enterprise expansion fund, a staff welfare fund and a bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax profits to a general reserve fund until such fund has reached 50% of its respective registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus funds are at the discretion of the board of directors for the foreign invested enterprises. For other subsidiaries incorporated in the PRC, the general reserve fund was appropriated based on 10% of net profits as reported in each subsidiary’s PRC statutory accounts. General reserve and statutory surplus funds are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company. Staff welfare and bonus fund and statutory public welfare funds are restricted to capital expenditures for the collective welfare of employees. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they allowed for distribution except under liquidation. As of December 31, 2018 and 2019, the PRC subsidiaries did not have after-tax profit and therefore no statutory reserves were allocated. In addition, under PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer their net assets to the Company in the form of dividend payments, loans or advances. As of December 31, 2018 and 2019, restricted net assets of the Company’s PRC subsidiaries were RMB2,580 and RMB5,406 (US$777), respectively. Furthermore, cash transfers from the Group’s PRC subsidiaries to the Group’s subsidiaries outside of the PRC are subject to the PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the Group’s PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
RELATED PARTY TRANSACTIONS AND BALANCES | 14. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. The related parties that had transactions or balances with the Group in 2018 and 2019 consisted of: Related Party Nature of the party Relationship with the Group Dr. Chris Chang Yu Individual Founder and Chairman Ms. Lin Yu Individual Director of the Group Anpai (Shanghai) Healthcare Management and Consulting Co., Ltd. (“Anpai”) Health management Equity investee of the Group Anpac Beijing Health management Equity investee of the Group Jiaxing Zhijun Sihang Investment Partnership Enterprises (limited partnership) (“Jiaxing Zhijun”) Private equity investment Shareholder Zhijun Investment management General partner of the shareholder CRS Investor Controlled by Dr. Chris Chang Yu Jiangsu Anpac Health management Equity investee of the Group Shanghai Yulin Information Technology Co., Ltd. (“Shanghai Yulin”) Information technology Controlled by Ms. Lin Yu (a) Related party balances As of December 31, 2018 2019 2019 RMB RMB US$ Due from related parties: Anpai 269 535 77 Jiangsu Anpac — 1 — Jiaxing Zhijun — 6 1 Shanghai Yulin — 13 2 269 555 80 Amounts due from Anpai, Jingsu Anpac and Jiaxing Zhijun comprise of accounts receivable. Amounts due from Shanghai Yulin comprise of other current assets. As of December 31, 2018 2019 2019 RMB RMB US$ Due to related parties: CRS 2,413 1,894 272 Jiaxing Zhijun 25,000 — — Zhijun 824 2,403 345 Jiangsu Anpac 450 300 43 28,687 4,597 660 Amounts due to CRS and Jiangsu Anpac comprise of loans which were interest-free, unsecured and repayable on demand while amounts due to Zhijun comprise of the accrued interest expense due to Zhijun of RMB2,403 (US$345) for the CL. (b) Related party transactions During the years ended December 31, 2018 and 2019, related party transactions consisted of the following: Year Ended December 31, 2018 2019 2019 RMB RMB US$ Revenue rendered to Anpac Beijing 231 3 — Revenue rendered to Jiangsu Anpac 110 64 9 Revenue rendered to Anpai 298 616 88 Consulting service received from Anpac Beijing 700 2,199 316 Advance from Jiaxing Zhijun 25,000 — — Purchase ordinary shares with the advance from Jiaxing Zhijun — 25,000 3,591 CL from Zhijun 16,445 — — Interest expense to Zhijun 824 1,579 227 Loan from CRS 1,431 1,202 173 Repayment of loan to CRS (1,144) (1,262) (181) Loan to Shanghai Yulin — (2,885) (414) Repayment of loan from Shanghai Yulin — 2,872 413 Repayment to Jiangsu Anpac (350) (150) (22) (c) Guarantor The Group’s short-term borrowings in 2019 consisting of an RMB8,000 and RMB6,000 borrowing are guaranteed by Dr. Chris Chang Yu. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 15. FAIR VALUE MEASUREMENTS As of December 31, 2019, assets and liabilities measured or disclosed at fair value are summarized below: Fair value measurements as of December 31, 2019 using Quoted prices in Significant Significant active observable unobservable markets inputs inputs Total fair value (Level 1) (Level 2) (Level 3) Impairment RMB US$ RMB RMB RMB RMB US$ Fair value measurement — Recurring: CL 24,568 3,529 — — 24,568 — — Fair value measurement — Non-Recurring: Equity investments accounted for at fair value using the measurement alternative 1,430 205 — — 1,430 1,320 190 The Group recognized an unrealized loss of RMB5,296 (US$761) for measuring CL using the binomial tree model described in Note 2(q) occurring in the year ended December 31, 2019. There was no transfer into or out of Level 3 of the fair value hierarchy for the year ended December 31, 2019. The Group measures equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC 820 at fair value on a nonrecurring basis using the measurement alternative, as there are no observable price changes in orderly transactions for identical or similar investments of the same issuer. As a result of reduced expectations of future cash flows from long-term investment of Jiangsu AnPac, the Group determined that the long-term investment with a carrying amount of RMB2,750 was not fully recoverable and consequently recorded an impairment charge of RMB1,320 for the years ended December 31, 2019. The investments are re-measured to fair value using valuation methodologies which require management to use significant unobservable inputs (level 3) such as revenue growth rate and discount rate. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES (a) As lessee The Group has entered into lease agreements for its business operations. Such leases are classified as operating leases. Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2019 were as follows: Year ending December 31, RMB US$ 2020 3,215 462 2021 2,492 358 2022 2,019 290 Thereafter 9,489 1,363 Total 17,215 2,473 (b) In the ordinary course of the business, the Group is subject to periodic legal or administrative proceedings. As of December 31, 2018 and 2019, the Group is not a party to any legal or administrative proceedings which will have a material adverse effect on the Group’s business, financial position, results of operations and cash flows. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
LOSS PER SHARE | |
LOSS PER SHARE | 17. LOSS PER SHARE Basic and diluted loss per share for each of the years presented is calculated as follows: Year Ended December 31, 2018 2019 2019 RMB RMB US$ Numerator: Net loss used in calculating loss per share-basic and diluted (42,063) (101,060) (14,515) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted 8,524,100 8,937,600 8,937,600 Basic and diluted loss per share: To ordinary shares (4.93) (11.31) (1.62) The Group did not include share options in the computation of diluted loss per share for the year ended December 31, 2018 and 2019 because those share options were anti-dilutive for loss per share. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS The Company evaluated subsequent events through May 15, 2020, the date on which these consolidated financial statements were issued. On January 30, 2020, the Company completed its IPO on the NASDAQ Global Market. The Company offered 1,333,360 ADSs representing 1,333,360 Class A ordinary shares at US$12.00 per ADS. As a result of the pandemic of COVID-19 in China, the United States and the world, the Company’s operations have been, and may continue to be, adversely impacted by disruptions in business activities, commercial transactions and general uncertainties surrounding the duration of the outbreaks and the various governments’ business, travel and other restrictions. These adverse effects could include the Company’s ability to market and conduct its tests in China, commercialize its tests in the United States and carry out research studies and activities in China and the United States, temporary closures of its laboratory facilities and offices in China and the United States and its customers’ and suppliers’ facilities, the delay in construction of its new Philadelphia laboratory, delayed supply of products and services from its suppliers, and delayed or cancelled orders from its customers (such as due to temporary decreased demand for disease screening and detection or physical checkup services or generally due to reduced commercial activities). In addition, the Company’s business operations could be disrupted if any of its employees is suspected of contracting the coronavirus or any other epidemic disease, since its employees could be quarantined and/or its offices be shut down for disinfection. In particular, the closing of blood sampling points countrywide in China since the Chinese New Year, as a measure by the Chinese government to contain the spread of COVID-19, has significantly reduced the number of samples that the Company could collect for its CDA tests. Despite partial recovery of the blood sampling points in April 2020, the number of blood samples that the Company can collect is still limited. There have also been delays of orders and cancellation of some orders for planned CDA tests and physical checkups from the Company’s customers. As a result, the Company expects that its revenues in the first half of 2020 will decrease significantly and its revenues for the year of 2020 will also decrease compared to the first half of 2019 and full year of 2019, respectively. While the Company strives to bring in new customers and launch new tests to mitigate the negative impact of COVID-19, it has no control over the development of the COVID-19 situations in China, the United States or around the world and therefore may not be able to achieve a revenue growth or maintain its historical revenue level in future periods. Moreover, the Company’s plan to commercialize its CDA test in the United States has been delayed (as indicated by the delay in construction of their new Philadelphia laboratory), and will likely continue to be adversely affected, by the COVID-19 outbreak in the United States. The downturn brought by and the duration of the coronavirus pandemic is difficult to assess or predict and actual effects will depend on many factors beyond the Company’s control, including the increased world-wide spread of COVID-19 and the relevant governments’ actions to contain COVID-19 or treat its impact. The extent to which COVID-19 impacts the Company’s results remains uncertain. The business, results of operations, financial condition and prospects could be adversely affected directly, as well as to the extent that the coronavirus or any other epidemic harms the Chinese and the United States’ economies in general. In February 2020, the Group has redeemed the CL with principal amount of US$1,750. In April 2020, the Group and Zhijun agreed to extend the principal amount of US$750 to May 31, 2020. In March 2020, the Group has repaid the short-term borrowing with principal amount of RMB8,000. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 19 . PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, 2018 2019 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 3,703 44 6 Amounts due from related parties 53,672 99,704 14,322 Other current assets 82 872 125 Total current assets 57,457 100,620 14,453 Non-current assets: Investments in subsidiaries (49,811) (72,289) (10,383) Other assets 851 760 109 TOTAL ASSETS 8,497 29,091 4,179 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Short-term debt 17,961 24,568 3,529 Amounts due to related parties 12,600 18,194 2,613 Accrued expenses and other current liabilities 329 2,302 331 Total liabilities 30,890 45,064 6,473 Shareholders’ deficit: Ordinary shares (US$0.01 par value per share; 100,000,000 shares and Nil authorized as of December 31, 2018 and 2019; 8,596,900 and Nil shares issued and outstanding as of December 31, 2018 and 2019, respectively) 569 — — Class A Ordinary shares (US$0.01 par value per share; Nil and 70,000,000 shares authorized as of December 31, 2018 and 2019; Nil and 7,004,900 shares issued and outstanding as of December 31, 2018 and 2019, respectively) — 466 67 Class B Ordinary shares (US$0.01 par value per share; Nil and 30,000,000 shares authorized as of December 31, 2018 and 2019; Nil and 2,863,100 shares issued and outstanding as of December 31, 2018 and 2019, respectively) — 191 27 Additional paid-in capital 152,367 257,736 37,021 Accumulated deficits (174,353) (276,476) (39,712) Accumulated other comprehensive (loss) income (976) 2,110 303 Total shareholders’ deficit (22,393) (15,973) (2,294) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 8,497 29,091 4,179 Condensed statements of comprehensive loss As of December 31 2018 2019 2019 RMB RMB US$ Operating loss: Selling and marketing expenses (2,871) (5,393) (775) Research and development expenses (1,958) (2,534) (364) General and administrative expenses (3,537) (31,884) (4,579) Loss from operations (8,366) (39,811) (5,718) Interest expense (828) (1,576) (226) Other expense, net (784) (5,273) (757) Share of losses of subsidiaries (32,085) (54,400) (7,814) Loss before income taxes and net loss (42,063) (101,060) (14,515) Other comprehensive income, net of tax — Fair value change relating to Company's own credit risk on convertible loan — (955) (137) — Foreign currency translation difference 797 2,978 428 Total comprehensive loss (41,266) (99,037) (14,224) Condensed statements of cash flows As of December 31 2018 2019 2019 RMB RMB US$ Net cash used in operating activities (1,259) (11,922) (1,712) Net cash used in investing activities (12,475) (31,415) (4,512) Net cash generated from financing activities 15,150 39,648 5,695 Effect of exchange rate changes on cash and cash equivalents 125 30 4 Net increase (decrease) in cash and cash equivalents 1,541 (3,659) (525) Cash and cash equivalents at beginning of year 2,162 3,703 531 Cash and cash equivalents at end of year 3,703 44 6 (a) Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investments in its subsidiaries The parent company records its investments in its subsidiaries under the equity method of accounting as prescribed in ASC 323, In vestments-Equity Method and Joint Ventures . Such investments are presented on the condensed balance sheets as “Investments in subsidiaries” and their respective profit or loss as “Share of loss in subsidiaries’ on the condensed statements of comprehensive loss. Equity method accounting ceases when the carrying amount of the investment, including any additional financial support, in a subsidiary is reduced to zero unless the parent company has guaranteed obligations of the subsidiary or is otherwise committed to provide further financial support. If the subsidiary subsequently reports net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net loss not recognized during the period the equity method was suspended. The subsidiaries did not pay any dividends to the Company for the years presented. |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of consolidation | (b) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. |
Use of estimates | (c) The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Areas where management uses subjective judgement include, but are not limited to allowance for doubtful accounts, share-based compensation, deferred tax and uncertain tax position, purchase price allocation, valuation of convertible loans, useful lives of intangible assets and property and equipment, and impairment of long-lived assets, goodwill and long-term investments. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. |
Foreign currency | (d) The functional currency of the Company and AnPac US is the United States dollar and its reporting currency is Renminbi. The functional currency of the Company’s PRC subsidiaries is the RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. The financial statements of the Company and AnPac US are translated from the functional currency to the reporting currency, RMB. Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss. The Group uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive loss, a component of shareholders’ deficit. |
Convenience translation | (e) Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.9618 on December 31, 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal or use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. |
Short-term investments | (g) Short -term investments All highly liquid investments with original maturities of greater than three months, but less than 12 months, are classified as short-term investments. Investments that are expected to be realized in cash during the next 12 months are also included in short-term investments. The Group accounts for short-term debt instruments in accordance with ASC 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as “held-to-maturity”, “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities are included in earnings. Any realized gains or losses on the sale of the short-term investments are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. The securities that the Group has positive intent and ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. For individual securities classified as held-to-maturity securities, the Group evaluates whether a decline in fair value below the amortized cost basis is other-than-temporary in accordance with ASC 320. Other-than-temporary impairment loss is recognized in the consolidated statements of comprehensive loss equal to the entire excess of the debt security’s amortized cost basis over its fair value at the balance sheet date of the reporting period for which the assessment is made. The Group’s short-term held-to-maturity investments consisted of wealth management products as the Group has the positive intent and ability to hold those securities to maturity. For the years ended December 31, 2018 and 2019, the Group recorded interest income from its short-term investments of RMB158 and RMB39 (US$6) in the consolidated statements of comprehensive loss, respectively. |
Accounts receivable, net of allowance for doubtful accounts | (h) Accounts receivable, net of allowance for doubtful accounts Accounts receivable are recorded at their invoiced amounts, net of allowances for doubtful accounts. An allowance for doubtful accounts is recorded when the collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers specific evidence, including aging of the receivable, the customer’s payment history, its current creditworthiness and current economic trends. Accounts receivable are written off after all collection efforts have ceased. The Group regularly reviews the adequacy and appropriateness of the allowance for doubtful accounts. Movement in the allowances for doubtful debts were as follows: Year Ended December 31, 2018 2019 2019 RMB RMB US$ Balance at beginning of year 18 198 28 Additional provision 334 168 24 Write-offs (154) (189) (27) Balance at end of year 198 177 25 |
Inventories | (i) Inventories Inventories are stated at the lower of cost or net realizable value. Cost of inventories are determined using the first in first out method. The Group records inventory reserves for obsolete and slow-moving inventory. |
Property and equipment | (j) Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Repair and maintenance costs are charged to expense as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Retirements, sale and disposals of assets are recorded by removing the cost and accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Direct costs that are related to the construction of property and equipment and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. |
Long-term investments | (k) term investments The Group’s long-term investments include equity method investments and Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323, Investments-Equity Method and Joint Ventures ("ASC 323"). Under the equity method, the Group initially records its investment at cost and the difference between the cost of the equity investee and the amount of the underlying equity in the net assets of the equity investee is accounted for as if the investee were a consolidated subsidiary. The equity method goodwill is not subsequently amortized and is not tested for impairment under ASC 350. The share of earnings or losses of the investee are recognized in the consolidated statements of comprehensive loss. Equity method adjustments include the Group’s proportionate share of investee income or loss, adjustments to recognize certain differences between the Group’s carrying value and its equity in net assets of the investee at the date of investment, impairments, and other adjustments required by the equity method. The Group assesses its equity investment for other-than-temporary impairment by considering factors as well as all relevant and available information including, but not limited to, current economic and market conditions, the operating performance of the investees including current earnings trends, the general market conditions in the investee’s industry or geographic area, factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, and cash burn rate and other company-specific information. Investments in equity securities without readily determinable fair values are measured at cost minus impairment adjusted by observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These investments are measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive loss equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption of ASU 2016-01 on January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. In the years ended December 31, 2018 and 2019, the Group has recognized an impairment on its equity investment in Jiangsu Anpac Health Management Co., Ltd. of Nil and RMB1,320 (US$190). |
Land use right, net | (l) use right, net All land in the PRC is owned by the PRC government. The PRC government may sell land use rights for a specified period of time. Land use rights represent lease prepayments to the PRC government and are carried at cost less accumulated amortization. Land use rights are amortized on a straight-line basis over the terms of the land use right of 50 years. |
Business combinations | (m) Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations . The cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total of the cost of the acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the identifiable net assets of the acquiree, the difference is recognized directly in earnings. The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. |
Intangible assets | (n) Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. All intangible assets with finite lives are amortized using the straight-line method over the estimated useful lives. Intangible assets have estimated useful lives from the date of purchase as follows: Category Estimated useful life Software years Medical license years |
Goodwill | (o) Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2018 and 2019 was related to its business acquisition in November 2017. Goodwill acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance with ASC 350‑20, Intangibles-Goodwill and Other, Goodwill, ("ASC 350-20") the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350‑20. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired, and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. In the years ended December 31, 2018 and 2019, the Group performed a qualitative assessment for the reporting unit. Based on the requirements of ASC 350‑20, the Group evaluated all relevant qualitative and quantitative factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not that the fair value of the reporting unit was less than its carrying amount. Therefore, no goodwill impairment was recognized as of December 31, 2018 and 2019. |
Impairment of long-lived assets other than goodwill | (p) Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets, including property and equipment and intangibles with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The adjusted carrying amount of the assets become new cost basis and are depreciated over the assets’ remaining useful lives. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. |
Fair value of financial instruments | (q) The Group applies ASC 820, Fair Value Measurements and Disclosures , (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group’s financial instruments include cash and cash equivalents, accounts receivables, accounts payable, other receivables, other payables and short-term debt. The carrying values of these financial instruments approximate their fair values due to their short-term maturities. The Company elected the fair value option to account for its convertible loans. The fair value of the convertible loans as of December 31, 2018 and 2019 was RMB17,961 and RMB24,568 (US$3,529), calculated using the binomial tree model based on probability of remaining as straight debt using discounted cash flow and equity based on the premium conversion ratio of 25%, respectively. The convertible loans are classified as level 3 instruments as the valuation was determined based on unobservable inputs which are supported by little or no market activity and reflect the Group’s own assumptions in measuring fair value. Significant inputs used in developing the fair value of the convertible loans include time to maturity, risk-free interest rate, straight debt discount rate, probability to convert and expected timing of conversion. Refer to Note 8 for additional information. Prior to the adoption of ASU 2016-01 on January 1, 2019, fair value changes relating to the Company's own credit risks of the convertible bonds accounted for under fair value option were recognized together with the total changes in fair value in the consolidated statement of comprehensive loss. After the adoption of ASU 2016-01, such fair value changes related to the Company's own credit risks are recognized separately in accumulated other comprehensive loss. There was decrease to beginning retained deficits of RMB1,063 and increase to accumulated other comprehensive income of RMB1,063 in consolidated statements of shareholders' deficits as a result of applying the new accounting standard. As the inputs used in developing the fair value for level 3 instruments are unobservable, and require significant management estimate, a change in these inputs could result in a significant change in the fair value measurement. |
Revenue recognition | (r) Revenue recognition Effective January 1, 2017, the Group early adopted ASC 606, Revenue from Contracts with Customers and subsequent amendments to the initial guidance or implementation guidance issued between August 2015 and December 2016 within ASU 2015‑14, ASU 2016‑08, ASU 2016‑10, ASU 2016‑12 and ASU 2016‑20 (collectively, “ASC 606”). The transition adjustment using modified retrospective method recorded in 2017 beginning retained earnings was immaterial. The Group derives its revenues principally from customers through the Group’s cancer screening and detection test and physical checkup package services. Revenue is recognized when the Group satisfies the performance obligations in an amount of consideration to which the Group expects to be entitled to in exchange for those services. The Group evaluates the presentation of revenue on a gross or net basis based on whether it controls the services provided to customers and is the principal (i.e. “gross”), or the Group arranges for other parties to provide the service to the customers and is an agent (i.e. “net”). The Group presents value-added taxes as a reduction from revenues. Revenue from cancer screening and detection tests Revenue from cancer screening and detection test are primarily generated through the sales of the Group’s cancer screening and detection tests based on CDA technology and other cancer screening and detection technologies, such as biomarker-based tests, to its customers i.e. corporations and life insurance companies. A contract exists when the master service agreement has been executed and the customer submitting a service request, which is a placed order. The Group’s contracts have a single performance obligation which is satisfied upon rendering of the cancer screening and detection tests and delivery of the cancer screening and detection test results to the customer. The Group acts as the principal as it controls the cancer screening and detection tests before it is transferred to the customer and records revenue on a gross basis at a point in time, when the cancer screening and detection test results are delivered to the customer. Revenue from physical checkup packages The Group facilitates corporations and life insurance companies to procure physical checkup package services for their employees and policy holders, respectively, from third-party physical checkup package service providers. The Group enters into contracts with corporations and life insurance companies and physical checkup service providers. The Group considers both the corporations and life insurance companies and the third-party physical checkup package service providers as its customers in this type of transaction. The Group’s performance obligation is to facilitate the corporations and life insurance companies and the third-party physical checkup package service providers to complete the purchase of physical checkup package services, which is not controlled by the Group prior to being transferred to the corporations and life insurance companies. Therefore, the Group fulfills its performance obligation at a point in time when the employees and policy holders of corporations and life insurance companies, respectively, complete the physical checkups and the Group records the net amount that it retains from such completed transaction as revenue. The Group also enters into arrangements to deliver both cancer screening and detection tests and physical checkup package services. The Group is the principal for the cancer screening and detection tests and the agent for physical checkup package services. Revenues for cancer screening and detection tests and physical checkup are both recognized at a point in time when the performance obligation is satisfied upon delivery of the cancer screening and detection test results to the end customers and completion of physical checkup respectively. As the Group acts as both the principal and agent in the arrangement, the Group allocates the transaction price to each performance obligation on a relative stand-alone selling price basis. All revenues are generated in the PRC. Contract balances The payment terms and conditions within the Group’s contracts vary by the type of services and the customers. Contract assets relate to the Group’s conditional right to consideration for completed performance obligations under the contract. Accounts receivable are recorded when the right to consideration becomes unconditional. The Group does not have contract assets for the years presented. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. Contract liabilities represent considerations received from corporations and life insurance companies in advance of satisfying the Group’s performance obligations under the contract, which are presented in “advance from customers” in the consolidated balance sheets. Revenue recognized that was included in contract liabilities at the beginning of the period was RMB503 and RMB2,700 (US$388) for the years ended December 31, 2018 and 2019, respectively. The following table reflects the changes in contract liabilities as of December 31, 2018 and 2019: As of December 31, 2018 2019 2019 RMB RMB US$ Contract liabilities 4,313 2,450 352 Contract liabilities decreased by RMB1,863 (US$269), due to the decrease in consideration received by corporations and life insurance companies in the normal course of business. PRC Value-Added Taxes and surcharges Starting from May 2016, the services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. Practical expedients The Group has applied the following practical expedients: (i) The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. (ii) The Group recognizes incremental costs to obtain a contract as expenses when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. |
Costs of revenues | (s) Costs of revenues consists of staff costs, outsourced testing costs, blood sample taking costs, medical consumable costs, share-based compensation and depreciation of CDA equipment. |
Research and development expenses | (t) Research and development expenses primarily are comprised of costs incurred in performing research and development activities, including related personnel and consultant’s salaries, benefits, share-based compensation and related costs, raw materials and supplies for internally-developed product candidates and external costs of outside vendors engaged to conduct clinical development activities and trials. The Group expenses research and development expenses as they are incurred. |
Government grants | (u) Government grants include financial incentives in the form of cash subsidies that involve no conditions or continuing performance obligations of the Group. Government grants are recognized as other non-operating income upon receipt. For government grants related to assets in the form of land use rights, the government grants are recorded as deferred income when received. The deferred income is then recognized in other income, net in the consolidated statement of comprehensive loss on a systematic basis over the useful life of the related asset. |
Leases | (v) Leases are classified at the inception date as either a capital lease or an operating lease. The Group assesses a lease to be a capital lease if any of the following conditions exist: (a) ownership is transferred to the lessee by the end of the lease term, (b) there is a bargain purchase option, (c) the lease term is at least 75% of the property’s estimated remaining economic life, or (d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an occurrence of an obligation at the inception of the lease. The Group has no capital leases for the years presented. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective lease terms. The Group leases office space, storage unit, research laboratory, employee accommodation and manufacturing space under operating lease agreements. Certain of the lease agreements contain rent holidays. Rent holidays are considered in determining the straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on straight-line basis over the term of the lease. |
Employee benefit expenses | (w) As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. The total expenses the Group incurred for the plan were RMB3,250 and RMB3,249 (US$467) for the year ended December 31, 2018 and 2019, respectively. |
Share-based compensation | (x) The Group accounts for share-based compensation in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or an equity award. All the Company’s share-based awards were classified as equity awards and are recognized in the consolidated financial statements based on their grant date fair values. In June 2018, the FASB issued ASU No. 2018‑07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting to simplify the accounting for share-based payments to nonemployees (“ASU 2018‑07”) by aligning it with the accounting for share-based payments to employees, with certain exceptions. The measurement of equity-classified nonemployee awards will be fixed at the grant date. The Group elected to early adopt ASU 2018‑07 on January 1, 2017 and the transition adjustment recorded in 2017 beginning retained earnings was immaterial. In accordance with ASC 718, the Group recognizes share-based compensation cost for equity awards to employees and non-employees with a performance condition based on the probable outcome of that performance condition. Compensation cost is recognized if it is probable that the performance condition will be achieved and shall not be recognized if it is not probable that the performance condition will be achieved. The Group has elected to recognize share-based compensation using the straight-line method for all share-based awards granted with graded vesting based on service conditions. The Group uses the accelerated method for all awards granted with graded vesting based on performance conditions. The Group accounts for forfeitures as they occur in accordance with ASU No. 2016‑09, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting . The Group, with the assistance of an independent third-party valuation firm, determined the fair value of the stock options granted to employees. The binomial option pricing model was applied in determining the estimated fair value of the options granted to employees and non-employees. |
Income taxes | (y) The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expenses. |
Comprehensive loss | (z) Comprehensive loss is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income , requires that all items that are required to be recognized under current accounting standards as components of comprehensive loss be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Group’s comprehensive loss includes net loss and foreign currency translation differences, and is presented in the consolidated statements of comprehensive loss. |
Segment reporting | (aa) The Group’s Chief Executive Officer is the chief operating decision-maker that reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Group as a whole and hence, the Group has only one reportable segment in accordance with ASC 280, Segment Reporting . The Group operates and manages its business as a single segment. As the Group’s long-lived assets are substantially all located in the PRC and all the Group revenues are derived from within the PRC, no geographical segments are presented. |
Loss per share | (ab) Loss per share is calculated in accordance with ASC 260, Earnings per Share . Basic loss per ordinary share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of the ordinary shares issuable upon the conversion of the share options, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. Basic and diluted loss per ordinary share is presented in the Group’s consolidated statements of comprehensive loss. |
Concentration of Risks | (ac) Concentration of credit risk Financial instruments that potentially subject the Group to significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivables. As of December 31, 2018 and 2019, the aggregate amounts of cash and cash equivalents of RMB7,016 and RMB5,045 (US$725), respectively, were held at major financial institutions located in the PRC and RMB5,871 and RMB1,080 (US$155), respectively, were deposited with major financial institutions located outside the PRC. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. Historically, deposits in Chinese banks are secured due to the state policy on protecting depositors’ interests. However, China promulgated a new Bankruptcy Law in August 2006 that came into effect on June 1, 2007 which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the new Bankruptcy Law, a Chinese bank may go into bankruptcy. In addition, since China’s concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have been significant competitors against Chinese banks in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy of those Chinese banks in which the Group has deposits has increased. In the event of bankruptcy of one of the banks which holds the Group’s deposits, the Group is unlikely to claim its deposits back in full since the bank is unlikely to be classified as a secured creditor based on PRC laws. Accounts receivables, unsecured and denominated in RMB, derived from sales of the Group’s cancer screening and detection test and physical checkup package services, are exposed to credit risk. As of December 31, 2018 and 2019, the Group had one customer and two customers, respectively, each with a receivable balance exceeding 10% of the total accounts receivable balance. The risk is mitigated by credit evaluations the Group performs on its customers. Business, customer, political, social and economic risks The Group participates in a dynamic industry and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to new entrants; advances and new trends in industry standards; changes in certain strategic relationships or customer relationships; regulatory considerations; intellectual property considerations; and risks associated with the Group’s ability to attract and retain employees necessary to support its growth. The Group’s operations could be also adversely affected by significant political, economic and social uncertainties in the PRC. For the years ended December 31, 2018 and 2019, the Group had one customer and two customers, respectively, that accounted for more than 10% of the total revenues. For the years ended December 31, 2018 and 2019, the Group had two suppliers and two suppliers, respectively, that accounted for more than 10% of cost of revenues. Currency convertibility risk A significant portion of the Group’s expenses, assets and liabilities are denominated in RMB. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into U.S. dollar or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approvals of foreign currency payments by the PBOC or other institutions require submitting a payment application form together with relevant documents. Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. Foreign currency exchange rate risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For U.S. dollar against RMB, there was appreciation of approximately 5.7% and appreciation of approximately 1.3%, in the years ended December 31, 2018 and 2019. It is difficult to predict how market forces or PRC or the U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The functional currency and the reporting currency of the Company and AnPac US are the US$ and the RMB, respectively. Most of the revenues and costs of the Group are denominated in RMB, while a portion of cash and cash equivalents and convertible loans (" CL ") are denominated in US$. It is difficult to predict how market forces or PRC or the U.S. government policy may impact the exchange rate between the Renminbi and the US$ in the future. Any significant fluctuation of the valuation of RMB may materially affect the Group’s cash flows, revenues, earnings and financial position, and the value of any dividends payable on the ADS in US$. Liquidity Risks As of December 31, 2019, the Group had RMB6,125 (US$880) of cash and cash equivalents and a working capital deficit of RMB44,026 (US$6,324). For the year ended December 31, 2019, the Group incurred RMB48,600 (US$6,980) of negative cash flows from operations and RMB3,161 (US$454) of capital expenditures. |
Recent accounting pronouncements | (ad) The Group is an emerging growth company (“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC can take advantage of extended transition periods for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. The Group elected to take advantage of the extended transition periods. However, this election will not apply should the Group cease to be classified as an EGC. In February 2016, the FASB issued ASU No. 2016‑02, Leases (Topic 842) (“ASU 2016‑02”). ASU 2016‑02 modifies existing guidance for off-balance sheet treatment of a lessees’ operating leases by requiring lessees to recognize lease assets and lease liabilities. Under ASU 2016‑02, lessor accounting is largely unchanged. ASU 2016‑02 is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Group will adopt ASU 2016‑02 on January 1, 2021 using the modified retrospective method and will not restate comparable periods. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. The Group currently believes the most significant change will be related to the recognition of right-of-use assets and operating lease liabilities on the consolidated balance sheets upon adoption, which will increase total assets and liabilities. In June 2016, the FASB issued ASU No. 2016‑13, Financial Instruments – Credit Losses (“ASU 2016‑13”). The amendments in ASU 2016‑13 update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Group will adopt ASU 2016‑13 on January 1, 2022, and is currently evaluating the impact on its consolidated financial statements of adopting this guidance. In January 2017, the FASB issued ASU 2017-04, "Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how an entity is required to test goodwill for impairment by eliminating step two from the goodwill impairment test. Step two of the goodwill impairment test measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with its carrying amount. The new guidance is effective prospectively for us for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) : Simplifying the Accounting for Income Taxes . This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. This standard is effective for the Company for the annual reporting periods beginning January 1, 2022 and interim periods beginning January 1, 2023. Early adoption is permitted. The Group does not expect any material impact on the Group’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323) , and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. This guidance addresses accounting for the transition into and out of the equity method and provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. This standard is effective for the Company beginning January 1, 2022 including interim periods within the fiscal year. Early adoption is permitted. The Group does not expect any material impact on the Company’s consolidated financial statements. (ae) Adopted accounting standards In January 2016, the FASB issued ASU No. 2016-01, which improves the recognition and measurement of financial instruments. The new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Group adopted the ASU effective January 1, 2019. The unrealized gains (losses), net of tax, on the available-for-sale securities of RMB1,063 were reclassified from retained earnings to accumulated other comprehensive income as of January 1, 2019. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU does not provide a definition of restricted cash or restricted cash equivalents. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. As a result of this update, restricted cash are included within cash and cash equivalents on the statements of consolidated cash flows. The Group adopted ASU 2016-18 effective January 1, 2019. No cumulative impact was recognized as of January 1, 2019. In January 2017, the FASB issued ASU No. 2017-01 ("ASU 2017-01"), Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. ASU 2017-01 is effective for the Group for annual reporting periods beginning January 1, 2019 and interim periods within annual periods beginning January 1, 2020. This standard has no material impact on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). This update allows companies the option to reclassify to retained earnings the tax effects related to items in accumulated other comprehensive income (loss) as a result of the Tax Cuts and Jobs Act that was enacted in the United States on December 22, 2017. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. This guidance should be applied either in the period of adoption or retrospectively to each period in which the effects of the change in the U.S. federal income tax rate in the Tax Cuts and Jobs Act is recognized. The Group adopted ASU 2018-2 effective January 1, 2019. No cumulative impact was recognized as of January 1, 2019. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . The update eliminates, modifies, and adds certain disclosure requirements for fair value measurements. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. The added disclosure requirements and the modified disclosure on the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented. All other changes to disclosure requirements in this update should be applied retrospectively to all periods presented upon their effective date. The Group adopted ASU 2018-13 effective January 1, 2019. No cumulative impact was recognized as of January 1, 2019. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of subsidiaries | Percentage of Date of Place of Major subsidiaries Ownership Incorporation Incorporation Major Operation Changhe Bio-Medical Technology (Yangzhou) Co., Ltd. % March 2010 the PRC Cancer screening and detection tests Changwei System Technology (Shanghai) Co., Ltd. % March 2011 the PRC Research and development AnPac Bio-Medical Technology (Lishui) Co., Ltd. % October 2012 the PRC Cancer screening detection tests and device manufacturing Shanghai Xinshenpai Technology Co., Ltd. % October 2013 the PRC Cancer screening and detection tests AnPac Bio-Medical Technology (Shanghai) Co., Ltd. % April 2014 the PRC Cancer screening and detection tests AnPac Technology USA Co., Ltd. (“AnPac US”) % September 2015 the U.S. Clinical trials for research on cancer screening and detection tests Lishui AnPac Medical Laboratory Co., Ltd. % August 2016 the PRC Cancer screening and detection tests Shiji (Hainan) Medical Technology Ltd. % November 2017 the PRC Cancer screening and detection tests Penghui Health Management Co., Ltd. % May 2018 the PRC Cancer screening and detection tests |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Schedule of movement in the allowances for doubtful debts | Year Ended December 31, 2018 2019 2019 RMB RMB US$ Balance at beginning of year 18 198 28 Additional provision 334 168 24 Write-offs (154) (189) (27) Balance at end of year 198 177 25 |
Schedule of estimated useful lives of property and equipment | Category Estimated useful life Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years |
Schedule of finite lived intangible assets estimated useful lives | Category Estimated useful life Software years Medical license years |
Schedule of changes in contract liabilities | As of December 31, 2018 2019 2019 RMB RMB US$ Contract liabilities 4,313 2,450 352 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT ASSETS | |
Summary of other current assets | As of December 31, 2018 2019 2019 RMB RMB US$ Capitalized listing expense — 9,764 1,404 Tax recoverable 1,431 1,574 226 Others 647 1,452 207 Total 2,078 12,790 1,837 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | As of December 31, 2018 2019 2019 RMB RMB US$ Buildings 15,771 16,029 2,302 Leasehold improvements 52 52 8 Furniture, fixtures and equipment 8,466 10,352 1,487 Motor vehicles 526 530 76 Total 24,815 26,963 3,873 Less: Accumulated depreciation (7,093) (8,728) (1,255) 17,722 18,235 2,618 Construction in progress 419 633 92 Property and equipment, net 18,141 18,868 2,710 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) - Purchased software and Medical License Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | |
Schedule of components of intangible assets | As of December 31, 2018 2019 2019 RMB RMB US$ Software 934 1,305 187 Medical license 5,300 5,300 761 Total 6,234 6,605 948 Less: Accumulated amortization (828) (1,405) (201) Total 5,406 5,200 747 |
Schedule of estimated amortization expense | Year ending December 31, RMB 2020 594 2021 575 2022 518 2023 391 2024 353 Thereafter 2,769 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Land use rights | |
LAND USE RIGHTS, NET | |
Schedule of components of intangible assets, including land use rights | As of December 31, 2018 2019 2019 RMB RMB US$ Land use rights, cost 1,388 1,388 199 Less: Accumulated amortization (166) (194) (27) Land use rights, net 1,222 1,194 172 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM INVESTMENTS | |
Schedule of components of long-term investments | As of December 31, 2018 2019 2019 RMB RMB US$ Equity method investments Anpac Beijing Health Management Co., Ltd (“Anpac Beijing”) 607 802 115 Shanghai Moxu Bio-medical Science Co., Ltd.(“Moxu”) 99 94 14 Equity securities without readily determinable fair values Jiangsu Anpac Health Management Co., Ltd. (“Jiangsu Anpac”) 2,750 2,750 395 Less: Impairment — (1,320) (190) Total 3,456 2,326 334 |
SHORT-TERM DEBT (Tables)
SHORT-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM DEBT | |
Schedule of components of short-term debt | As of December 31, 2018 2019 2019 RMB RMB US$ Short-term bank and other borrowings (i) 8,000 14,000 2,011 Convertible loans (ii) 17,961 24,568 3,529 Total 25,961 38,568 5,540 (i) The short-term borrowings in 2019 consists of an RMB8,000 and an RMB6,000 borrowing that has a fixed interest rate of 11% and 4.35%, respectively and are pledged by certain properties of the Group and Dr. Chris Chang Yu, and guaranteed by Dr. Chris Chang Yu. (ii) During April to August of 2018, the Group issued convertible loans with an aggregate principal amount of US$2,500 to Jiaxing Zhijun Investment Management Co., Ltd. (“Zhijun”). The CL is originally due in one year and bears interest of 9% per annum if the conversion feature is not triggered. The CL is ultimately guaranteed by Dr. Chris Chang Yu’s personal assets. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of components of accrued expenses and other current liabilities | As of December 31, 2018 2019 2019 RMB RMB US$ Salary and welfare payable 7,735 9,498 1,364 Payable for business combination and long-term investment 300 — — Payable for acquisition of noncontrolling interests 245 245 35 Accrued rental 801 1,550 223 Accrued expenses 691 4,430 636 Value added tax and other taxes payable 523 100 14 Payable for property and equipment 28 15 2 Accrued utilities 5 5 1 Other payables 531 2,939 423 Total 10,859 18,782 2,698 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
Schedule of rollforward of accumulated other comprehensive (loss) income | Foreign currency Fair Value translation adjustments change Total RMB Balance as of January 1, 2018 (1,773) — (1,773) Foreign currency translation differences 797 — 797 Balance as of December 31, 2018 (976) — (976) Cumulative effect of the adoption of ASU 2016-01* — 1,063 1,063 Balance as of January 1, 2019 (976) 1,063 87 Fair value change relating to Company's own credit risk on convertible loan — (955) (955) Foreign currency translation differences 2,978 — 2,978 Balance as of December 31, 2019 2,002 108 2,110 US$ Balance as of December 31, 2019 288 15 303 *Adjustment of fair value change related to Company’s own credit risk on convertible loan from accumulated other comprehensive income to opening retained earnings as a result of the adoption of ASU 2016-01 on January 1, 2019. |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used to value share options granted | 2018 2019 Risk-free interest rate 2.46%- 3.11 % 1.55%- 2.50 % Expected volatility range 62.14%- 63.61 % 60.37%- 64.48 % Exercise multiple Fair market value per ordinary share as at grant dates US$9.46- 9.61 US$9.61- 9.80 |
Schedule of share-based compensation expenses included in financial statement line items | For the year ended December 31, 2018 2019 2019 RMB RMB US$ Cost of revenues 317 327 47 Selling and marketing expenses 2,871 5,393 775 Research and development expenses 1,958 2,534 364 General and administrative expenses 2,790 24,601 3,533 Total share-based compensation expenses 7,936 32,855 4,719 |
Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Group's employee and non employee share option activities | The following table summarized the Group’s employee share option activities: Weighted Weighted Average Weighted Average Remaining Aggregate Number of Average Grant date Contractual Intrinsic Options Exercise Price Fair Value Term Value US$ per US$ per Years US$ option option Share options outstanding at January 1, 2018 427,100 0.0001 4.93 7.21 4,041 Granted 206,000 0.0005 9.53 Forfeited (1,600) 0.0010 4.45 Share options outstanding at January 1, 2019 631,500 0.0002 6.43 6,090 Granted 327,000 Forfeited (42,000) Nil 9.68 Share options outstanding at December 31, 2019 916,500 7.48 7.26 8,985 Vested and expected to vest at December 31, 2019 916,500 0.0003 7.48 7.26 8,985 Exercisable as of December 31, 2019 592,000 5,804 |
Nonemployees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Group's employee and non employee share option activities | The following table summarized the Group’s nonemployee share option activity: Weighted Weighted Weighted Average Average Average Remaining Aggregate Number of Exercise Grant date Contractual Intrinsic Options Price Fair Value Term Value US$ per US$ per option option Years US$ Share options outstanding at January 1, 2018 219,400 0.0000 4.91 7.22 2,076 Granted 53,700 0.0005 9.55 Forfeited (160,000) Nil 4.44 Exercised (19,400) Nil 6.50 Share options outstanding at January 1, 2019 93,700 0.0004 7.53 8.11 904 Granted 153,300 0.0003 9.80 Share options outstanding at December 31, 2019 247,000 0.0003 8.94 8.40 2,422 Vested and expected to vest at December 31, 2019 247,000 0.0003 8.94 8.40 2,422 Exercisable as of December 31, 2019 202,600 0.0003 9.00 8.21 1,986 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Schedule of loss before income taxes | Years ended December 31, 2018 2019 2019 RMB RMB US$ Non-PRC (18,944) (56,658) (8,137) PRC (23,551) (45,181) (6,490) Total (42,495) (101,839) (14,627) |
Schedule of current and deferred components of income tax (expense) benefit | Years ended December 31, 2018 2019 2019 RMB RMB US$ Current tax 111 130 18 Deferred tax 88 88 13 Total 199 218 31 |
Schedule of reconciliation of tax computed by applying the statutory income tax rate to income tax (expense) benefit | Years ended December 31, 2018 2019 2019 RMB RMB US$ Loss before income taxes (42,495) (101,839) (14,627) Income tax benefit computed at the statutory income tax rate at 25% 10,624 25,460 3,657 Non-deductible expenses (4,485) (5,141) (738) International rate differences (2,227) (11,367) (1,633) Preferential tax rate differences (210) (710) (102) Effect of change in tax rate (826) 789 113 Change in valuation allowance (2,677) (8,813) (1,266) Income tax benefit 199 218 31 |
Schedule of components of deferred taxes | As of December 31, 2018 2019 2019 RMB RMB US$ Deferred tax assets: Net loss carryforward 14,705 23,148 3,325 Accrued expenses 1,043 1,479 212 Bad debt expenses 85 70 10 Others 120 69 10 Valuation allowance (15,953) (24,766) (3,557) Total deferred tax assets — — — Deferred tax liabilities: Long-lived assets arising from acquisition (1,222) (1,134) (163) Total deferred tax liabilities (1,222) (1,134) (163) |
Schedule of roll-forward of unrecognized tax benefits | Years ended December 31, 2018 2019 2019 RMB RMB US$ Balance at beginning of year 6,936 9,398 1,350 Addition based on tax positions related to the current year 3,064 2,810 404 Decrease based on tax positions related to prior years (602) (361) (52) Balance at end of year 9,398 11,847 1,702 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
Schedule of related parties that had transactions or balances with the Group | Related Party Nature of the party Relationship with the Group Dr. Chris Chang Yu Individual Founder and Chairman Ms. Lin Yu Individual Director of the Group Anpai (Shanghai) Healthcare Management and Consulting Co., Ltd. (“Anpai”) Health management Equity investee of the Group Anpac Beijing Health management Equity investee of the Group Jiaxing Zhijun Sihang Investment Partnership Enterprises (limited partnership) (“Jiaxing Zhijun”) Private equity investment Shareholder Zhijun Investment management General partner of the shareholder CRS Investor Controlled by Dr. Chris Chang Yu Jiangsu Anpac Health management Equity investee of the Group Shanghai Yulin Information Technology Co., Ltd. (“Shanghai Yulin”) Information technology Controlled by Ms. Lin Yu |
Schedule of related party balances | (a) Related party balances As of December 31, 2018 2019 2019 RMB RMB US$ Due from related parties: Anpai 269 535 77 Jiangsu Anpac — 1 — Jiaxing Zhijun — 6 1 Shanghai Yulin — 13 2 269 555 80 Amounts due from Anpai, Jingsu Anpac and Jiaxing Zhijun comprise of accounts receivable. Amounts due from Shanghai Yulin comprise of other current assets. As of December 31, 2018 2019 2019 RMB RMB US$ Due to related parties: CRS 2,413 1,894 272 Jiaxing Zhijun 25,000 — — Zhijun 824 2,403 345 Jiangsu Anpac 450 300 43 28,687 4,597 660 |
Schedule of related party transactions summary | Year Ended December 31, 2018 2019 2019 RMB RMB US$ Revenue rendered to Anpac Beijing 231 3 — Revenue rendered to Jiangsu Anpac 110 64 9 Revenue rendered to Anpai 298 616 88 Consulting service received from Anpac Beijing 700 2,199 316 Advance from Jiaxing Zhijun 25,000 — — Purchase ordinary shares with the advance from Jiaxing Zhijun — 25,000 3,591 CL from Zhijun 16,445 — — Interest expense to Zhijun 824 1,579 227 Loan from CRS 1,431 1,202 173 Repayment of loan to CRS (1,144) (1,262) (181) Loan to Shanghai Yulin — (2,885) (414) Repayment of loan from Shanghai Yulin — 2,872 413 Repayment to Jiangsu Anpac (350) (150) (22) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value hierarchy of the Group's financial instruments | Fair value measurements as of December 31, 2019 using Quoted prices in Significant Significant active observable unobservable markets inputs inputs Total fair value (Level 1) (Level 2) (Level 3) Impairment RMB US$ RMB RMB RMB RMB US$ Fair value measurement — Recurring: CL 24,568 3,529 — — 24,568 — — Fair value measurement — Non-Recurring: Equity investments accounted for at fair value using the measurement alternative 1,430 205 — — 1,430 1,320 190 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease payments under non-cancellable operating lease agreements | Year ending December 31, RMB US$ 2020 3,215 462 2021 2,492 358 2022 2,019 290 Thereafter 9,489 1,363 Total 17,215 2,473 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LOSS PER SHARE | |
Schedule of calculation of basic and diluted loss per share | Year Ended December 31, 2018 2019 2019 RMB RMB US$ Numerator: Net loss used in calculating loss per share-basic and diluted (42,063) (101,060) (14,515) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted 8,524,100 8,937,600 8,937,600 Basic and diluted loss per share: To ordinary shares (4.93) (11.31) (1.62) |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | As of December 31, 2018 2019 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 3,703 44 6 Amounts due from related parties 53,672 99,704 14,322 Other current assets 82 872 125 Total current assets 57,457 100,620 14,453 Non-current assets: Investments in subsidiaries (49,811) (72,289) (10,383) Other assets 851 760 109 TOTAL ASSETS 8,497 29,091 4,179 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Short-term debt 17,961 24,568 3,529 Amounts due to related parties 12,600 18,194 2,613 Accrued expenses and other current liabilities 329 2,302 331 Total liabilities 30,890 45,064 6,473 Shareholders’ deficit: Ordinary shares (US$0.01 par value per share; 100,000,000 shares and Nil authorized as of December 31, 2018 and 2019; 8,596,900 and Nil shares issued and outstanding as of December 31, 2018 and 2019, respectively) 569 — — Class A Ordinary shares (US$0.01 par value per share; Nil and 70,000,000 shares authorized as of December 31, 2018 and 2019; Nil and 7,004,900 shares issued and outstanding as of December 31, 2018 and 2019, respectively) — 466 67 Class B Ordinary shares (US$0.01 par value per share; Nil and 30,000,000 shares authorized as of December 31, 2018 and 2019; Nil and 2,863,100 shares issued and outstanding as of December 31, 2018 and 2019, respectively) — 191 27 Additional paid-in capital 152,367 257,736 37,021 Accumulated deficits (174,353) (276,476) (39,712) Accumulated other comprehensive (loss) income (976) 2,110 303 Total shareholders’ deficit (22,393) (15,973) (2,294) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 8,497 29,091 4,179 |
Schedule of condensed statements of comprehensive loss | As of December 31 2018 2019 2019 RMB RMB US$ Operating loss: Selling and marketing expenses (2,871) (5,393) (775) Research and development expenses (1,958) (2,534) (364) General and administrative expenses (3,537) (31,884) (4,579) Loss from operations (8,366) (39,811) (5,718) Interest expense (828) (1,576) (226) Other expense, net (784) (5,273) (757) Share of losses of subsidiaries (32,085) (54,400) (7,814) Loss before income taxes and net loss (42,063) (101,060) (14,515) Other comprehensive income, net of tax — Fair value change relating to Company's own credit risk on convertible loan — (955) (137) — Foreign currency translation difference 797 2,978 428 Total comprehensive loss (41,266) (99,037) (14,224) |
Schedule of condensed statements of cash flows | As of December 31 2018 2019 2019 RMB RMB US$ Net cash used in operating activities (1,259) (11,922) (1,712) Net cash used in investing activities (12,475) (31,415) (4,512) Net cash generated from financing activities 15,150 39,648 5,695 Effect of exchange rate changes on cash and cash equivalents 125 30 4 Net increase (decrease) in cash and cash equivalents 1,541 (3,659) (525) Cash and cash equivalents at beginning of year 2,162 3,703 531 Cash and cash equivalents at end of year 3,703 44 6 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | Jan. 30, 2020$ / sharesshares | Oct. 31, 2019Vote$ / sharesshares | Dec. 31, 2019$ / sharesshares | Oct. 30, 2019shares | Oct. 29, 2019shares | Dec. 31, 2018$ / sharesshares |
Entity Information [Line Items] | ||||||
Common Stock, Shares Authorized | 0 | 100,000 | 100,000,000 | |||
Stock split ratio | 100 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||||
Common stock Conversion per share | 1 | |||||
Changhe Bio-Medical Technology (Yangzhou) Co., Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
Changwei System Technology (Shanghai) Co., Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
AnPac Bio-Medical Technology (Lishui) Co., Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
Shanghai Xinshenpai Technology Co., Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
AnPac Bio-Medical Technology (Shanghai) Co., Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
AnPac Technology USA Co., Ltd. (AnPac US) | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
Lishui AnPac Medical Laboratory Co., Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
Shiji (Hainan) Medical Technology Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
Penghui Health Management Co., Ltd. | ||||||
Entity Information [Line Items] | ||||||
Percentage of Ownership | 100.00% | |||||
Class A Ordinary Shares | ||||||
Entity Information [Line Items] | ||||||
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 | 700,000 | 71,369 | 0 | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common Stock, Voting Rights, Number per Share | Vote | 1 | |||||
Class B Ordinary Shares | ||||||
Entity Information [Line Items] | ||||||
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 | 300,000 | 28,631 | 0 | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||||
Common Stock, Voting Rights, Number per Share | Vote | 10 | |||||
IPO [Member] | Class A Ordinary Shares | Subsequent events | ||||||
Entity Information [Line Items] | ||||||
Issuance of ordinary shares (in shares) | 1,333,360 | |||||
IPO [Member] | American Depository Shares [Member] | Subsequent events | ||||||
Entity Information [Line Items] | ||||||
Issuance of ordinary shares (in shares) | 1,333,360 | |||||
Share Price | $ / shares | $ 12 |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Movement in the allowances for doubtful debts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / ¥ | Dec. 31, 2019CNY (¥)$ / ¥ | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Convenience Translation | ||||
Convenience translation at noon buying rate | 6.9618 | 6.9618 | ||
Short-term Investments | ||||
Interest income from short-term investments | $ 6 | ¥ 39 | $ 158 | |
Movement in the Allowances for Doubtful Debts | ||||
Balance at beginning of year | 28 | 198 | ¥ 18 | |
Additional provision | 24 | 168 | 334 | |
Write-offs | (27) | (189) | (154) | |
Balance at end of year | $ 25 | ¥ 177 | $ 28 | ¥ 198 |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, property and equipment | 20 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, property and equipment | 3 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, property and equipment | 5 years |
Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, property and equipment | 5 years |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Long-term Investment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Long-term Investments | |||
impairment charges | $ 190 | ¥ 1,320 | ¥ 0 |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Land use right, net and Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Land use rights | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives, intangible asset | 50 years |
Purchased software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives, intangible asset | 3 years |
Medical license | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives, intangible asset | 15 years |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Goodwill disclosures | ||
Number of reporting Unit | 1 | |
Number of reportable segment | 1 | |
Goodwill impairment recognized | $ | $ 0 | $ 0 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Fair value of financial instruments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ (39,712) | ¥ (276,476) | ¥ (174,353) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 303 | 2,110 | (976) |
Convertible loan | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
The fair value of the convertible loans | $ 3,529 | 24,568 | ¥ 17,961 |
Premium conversion ratio used to estimate fair value | 25 | ||
ASU 2016-01 | Restatement Adjustment [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Retained Earnings (Accumulated Deficit) | 1,063 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ¥ 1,063 |
SUMMARY OF PRINCIPAL ACCOUNT_10
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Contract balances (Details) ¥ in Thousands, $ in Thousands | May 01, 2016 | Dec. 31, 2019USD ($)segment | Dec. 31, 2019CNY (¥)segment | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) |
Contract balances | |||||||
Contract assets | $ | $ 0 | $ 0 | |||||
Revenue recognized that was included in contract liabilities | 388 | ¥ 2,700 | ¥ 503 | ||||
Value added tax rate | 6.00% | ||||||
Contract liabilities | 352 | ¥ 2,450 | ¥ 4,313 | ||||
Decrease in contract with customer liability due to decrease in consideration received | $ 269 | ¥ 1,863 | |||||
Practical Expedients | |||||||
Nondisclosure of transaction price allocation | true | true | |||||
Recognized incremental costs when incurred | true | true | |||||
Employee benefit expenses | |||||||
Contributions to PRC statutory employee benefit plans | $ 467 | ¥ 3,249 | ¥ 3,250 | ||||
Segment reporting | |||||||
Number of reportable segment | 1 | 1 | |||||
Number of operating segment | 1 | 1 |
SUMMARY OF PRINCIPAL ACCOUNT_11
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Concentration of risks (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)itemcustomer | Dec. 31, 2019CNY (¥)itemcustomer | Dec. 31, 2018CNY (¥)itemcustomer | Dec. 31, 2019CNY (¥) | |
Concentration Risk [Line Items] | ||||
Cash and cash equivalents | $ 880 | ¥ 12,887 | ¥ 6,125 | |
(Depreciation) appreciation of exchange rate during the period | 1.30% | 1.30% | 5.70% | |
Working capital deficit | $ 6,324 | 44,026 | ||
Net cash used in operating activities | (6,980) | ¥ (48,600) | ¥ (31,147) | |
Capital expenditures | 454 | ¥ 3,161 | ||
Retained Earnings (Accumulated Deficit) | (39,712) | (174,353) | (276,476) | |
Credit risk | Geographic concentration | PRC | ||||
Concentration Risk [Line Items] | ||||
Cash and cash equivalents | 725 | 7,016 | 5,045 | |
Credit risk | Geographic concentration | Non-PRC | ||||
Concentration Risk [Line Items] | ||||
Cash and cash equivalents | $ 155 | ¥ 5,871 | 1,080 | |
Accounts receivable | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Number of customers exceeding 10% of benchmark | 2 | 2 | 1 | |
Revenue | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Number of customers exceeding 10% of benchmark | 2 | 2 | 1 | |
Cost of revenues | Supplier concentration | ||||
Concentration Risk [Line Items] | ||||
Number of suppliers exceeding 10% of benchmark | item | 2 | 2 | 2 | |
Restatement Adjustment [Member] | ASU 2016-01 | ||||
Concentration Risk [Line Items] | ||||
Retained Earnings (Accumulated Deficit) | ¥ | ¥ 1,063 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
OTHER CURRENT ASSETS | |||
Capitalized listing expense | $ 1,404 | ¥ 9,764 | |
Tax recoverable | 226 | 1,574 | ¥ 1,431 |
Others | 207 | 1,452 | 647 |
Total | $ 1,837 | ¥ 12,790 | ¥ 2,078 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Total gross, excluding construction in progress | $ 3,873 | ¥ 24,815 | ¥ 26,963 | |
Less: Accumulated depreciation | (1,255) | (7,093) | (8,728) | |
Total net, excluding construction in progress | 2,618 | 17,722 | 18,235 | |
Property and equipment, net | 2,710 | 18,141 | 18,868 | |
Depreciation expense | 296 | ¥ 2,059 | 2,357 | |
Impairment charges recognized on property and equipment | ¥ 0 | 0 | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 2,302 | 15,771 | 16,029 | |
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 8 | 52 | 52 | |
Furniture, fixtures and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 1,487 | 8,466 | 10,352 | |
Motor vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 76 | 526 | 530 | |
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 92 | ¥ 419 | ¥ 633 |
LAND USE RIGHTS, NET (Details)
LAND USE RIGHTS, NET (Details) - Land use rights ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | |
LAND USE RIGHTS, NET | ||||
Land use rights, cost | $ 199 | ¥ 1,388 | ¥ 1,388 | |
Less: Accumulated amortization | (27) | (166) | (194) | |
Land use rights, net | 172 | 1,222 | ¥ 1,194 | |
Amortization expense | $ 4 | ¥ 28 | ¥ 257 |
LAND USE RIGHTS, NET - Addition
LAND USE RIGHTS, NET - Additional information (Details) - Land use rights ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Expected amortization expense | |
2020 | ¥ 28 |
2021 | 28 |
2022 | 28 |
2023 | 28 |
2024 | 28 |
2025 and thereafter | ¥ 1,054 |
INTANGIBLE ASSETS, NET - Intang
INTANGIBLE ASSETS, NET - Intangible assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | |
Purchased software and Medical License Intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 948 | ¥ 6,234 | ¥ 6,605 | |
Less: Accumulated amortization | (201) | (828) | (1,405) | |
Total | 747 | 5,406 | 5,200 | |
Amortization expense | 83 | ¥ 577 | 530 | |
Purchased software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 187 | 934 | 1,305 | |
Medical license | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 761 | ¥ 5,300 | ¥ 5,300 |
INTANGIBLE ASSETS, NET - Estima
INTANGIBLE ASSETS, NET - Estimated aggregate amortization expense (Details) - Purchased software and Medical License Intangibles ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Expected amortization expense | |
2020 | ¥ 594 |
2021 | 575 |
2022 | 518 |
2023 | 391 |
2024 | 353 |
Thereafter | ¥ 2,769 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | 24 Months Ended | |||||||
Nov. 30, 2017 | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Oct. 31, 2019 | Jun. 08, 2018 | Oct. 19, 2017 | Jan. 31, 2016 | |
Schedule of Investments [Line Items] | ||||||||||
Less: Impairment | $ 190 | ¥ 1,320 | ¥ 0 | |||||||
Total long-term investments | 334 | 3,456 | $ 334 | ¥ 2,326 | ||||||
Anpac Beijing | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Equity method investments | 115 | 607 | $ 115 | 802 | ||||||
Ownership percentage, equity method investment | 18.00% | 35.00% | ||||||||
Paid-in shareholding ratio | 35.00% | |||||||||
Moxu | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Equity method investments | 14 | 99 | $ 14 | 94 | ||||||
Ownership percentage, equity method investment | 20.00% | |||||||||
Jiangsu Anpac | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Cost method investments | $ 395 | ¥ 2,750 | $ 395 | ¥ 2,750 | ||||||
Ownership percentage, cost method investment | 10.00% | |||||||||
Additional equity interest acquired, cost method investment | 5.00% |
SHORT-TERM DEBT (Details)
SHORT-TERM DEBT (Details) ¥ in Thousands, $ in Thousands | Oct. 30, 2019USD ($) | Oct. 30, 2019CNY (¥) | Apr. 26, 2019 | Aug. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) |
Short-term Debt [Line Items] | ||||||||
Short-term debt | $ 5,540 | ¥ 25,961 | ¥ 38,568 | |||||
Short-term bank and other borrowings | ||||||||
Short-term Debt [Line Items] | ||||||||
Short-term debt | 2,011 | 8,000 | 14,000 | |||||
Convertible loan | ||||||||
Short-term Debt [Line Items] | ||||||||
Short-term debt | 3,529 | 17,961 | 24,568 | |||||
Recognized an unrealized loss | $ 761 | ¥ 5,296 | ¥ 784 | |||||
Borrowings At Interest Rate Of 11% [Member] | Short-term bank and other borrowings | ||||||||
Short-term Debt [Line Items] | ||||||||
Short-term debt | ¥ 8,000 | |||||||
Fixed interest rate | 11.00% | 11.00% | ||||||
Borrowings At Interest Rate Of 4.35% [Member] | Short-term bank and other borrowings | ||||||||
Short-term Debt [Line Items] | ||||||||
Short-term debt | ¥ 6,000 | |||||||
Fixed interest rate | 4.35% | 4.35% | ||||||
Zhijun | Convertible loan | ||||||||
Short-term Debt [Line Items] | ||||||||
Fixed interest rate | 9.00% | |||||||
Principal amount of debt issued to Zhijun | $ | $ 2,500 | |||||||
Term of loan | 1 year | |||||||
Financing round that might trigger conversion | $ | $ 5,000 | |||||||
Premium conversion ratio | 25 | 25 | ||||||
Debt conversion amount | ¥ 488,000 | |||||||
Debt extension, maximum change in remaining cash flows | 10.00% |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Salary and welfare payable | $ 1,364 | ¥ 9,498 | ¥ 7,735 |
Payable for business combination and long-term investment | 300 | ||
Payable for acquisition of non-controlling interests | 35 | 245 | 245 |
Accrued rental | 223 | 1,550 | 801 |
Accrued expenses | 636 | 4,430 | 691 |
Value added tax and other taxes payable | 14 | 100 | 523 |
Payable for property and equipment | 2 | 15 | 28 |
Accrued utilities | 1 | 5 | 5 |
Other payables | 423 | 2,939 | 531 |
Total. | $ 2,698 | ¥ 18,782 | ¥ 10,859 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | ¥ (22,393) | ||
Foreign currency translation differences | $ 428 | 2,978 | ¥ 797 |
Balance as of January 1, 2019 | (22,393) | ||
Fair value change relating to Company's own credit risk on convertible loan | (137) | (955) | |
Balance, end of period | (2,294) | (15,973) | (22,393) |
No reclassifications out of aoci | 0 | 0 | |
Accumulated Other Comprehensive Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (976) | (1,773) | |
Cumulative effect of the adoption of ASU 2016-01* | 1,063 | ||
Foreign currency translation differences | 2,978 | 797 | |
Balance as of January 1, 2019 | 87 | 87 | |
Fair value change relating to Company's own credit risk on convertible loan | (955) | ||
Balance, end of period | 303 | 2,110 | (976) |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (976) | (1,773) | |
Foreign currency translation differences | 2,978 | 797 | |
Balance as of January 1, 2019 | (976) | ||
Balance, end of period | 288 | 2,002 | (976) |
Fair value change | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of the adoption of ASU 2016-01* | ¥ 1,063 | ||
Foreign currency translation differences | 0 | ||
Balance as of January 1, 2019 | 1,063 | ||
Fair value change relating to Company's own credit risk on convertible loan | (955) | ||
Balance, end of period | $ 15 | ¥ 108 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) | Oct. 31, 2019$ / sharesshares | Jul. 01, 2017shares | Dec. 31, 2019$ / sharesshares | Oct. 30, 2019shares | Oct. 29, 2019shares | Dec. 31, 2018$ / sharesshares | Oct. 19, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Stock split ratio | 100 | ||||||
Shares authorized | 0 | 100,000 | 100,000,000 | ||||
Par value | $ / shares | $ 0.01 | $ 0.01 | |||||
CRS Holdings Inc | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Ordinary share purchased | 214,000 | ||||||
Share Price | $ / shares | $ 3.27 | ||||||
Class A Ordinary Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized | 70,000,000 | 70,000,000 | 700,000 | 71,369 | 0 | ||
Par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Class B Ordinary Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized | 30,000,000 | 30,000,000 | 300,000 | 28,631 | 0 | ||
Par value | $ / shares | $ 0.01 | $ 0.01 | |||||
Two Thousand Nineteen Share Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted | 0 | ||||||
Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for option grants | 1,190,000 | 1,866,600 | |||||
Additional shares authorized for option grants | 860,000 | ||||||
Options | Two Thousand Nineteen Share Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for option grants | 1,105,300 |
SHARE BASED COMPENSATION - Empl
SHARE BASED COMPENSATION - Employees and non employees (Details) $ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | |
Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options outstanding, beginning of period | shares | 631,500 | 631,500 | 427,100 | |||
Granted (in shares) | shares | 327,000 | 327,000 | 206,000 | |||
Forfeited (in shares) | shares | (42,000) | (42,000) | (1,600) | |||
Options outstanding, end of period | shares | 916,500 | 916,500 | 631,500 | 427,100 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, beginning of period | $ 0.0002 | $ 0.0001 | ||||
Granted, per share | 0.0004 | 0.0005 | ||||
Forfeited, per share | 0 | 0.0010 | ||||
Weighted Average Exercise Price, Ending of period | 0.0003 | 0.0002 | $ 0.0001 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, beginning of period | 6.43 | 4.93 | ||||
Fair value of grants, per share | 9.80 | 9.53 | ||||
Fair value of forfeitures, per share | 9.68 | 4.45 | ||||
Weighted Average Grant Date Fair Value, end of period | $ 7.48 | $ 6.43 | $ 4.93 | |||
Weighted Average Remaining Contractual Term | 7 years 3 months 4 days | 7 years 3 months 4 days | 7 years 2 months 19 days | 7 years 2 months 16 days | ||
Aggregate Intrinsic Value | $ | $ 8,985,000 | $ 6,090,000 | $ 4,041,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Vested and expected to vest, shares outstanding | shares | 916,500 | 916,500 | ||||
Vested and expected to vest, weighted average exercise price | $ 0.0003 | |||||
Vested and expected to vest, weighted average grant date fair value, per share | $ 7.48 | |||||
Vested and expected to vest, remaining contractual term | 7 years 3 months 4 days | 7 years 3 months 4 days | ||||
Vested and expected to vest, aggregate intrinsic value | $ | $ 8,985,000 | |||||
Exercisable, shares outstanding | shares | 592,000 | 592,000 | ||||
Exercisable, weighted average exercise price | $ 0.0002 | |||||
Exercisable, weighted average grant date fair value, per share | $ 6.30 | |||||
Exercisable, remaining contractual term | 6 years 4 months 17 days | 6 years 4 months 17 days | ||||
Exercisable, aggregate intrinsic value | $ | $ 5,804,000 | |||||
Fair value of equity awards vested | 1,778,000 | ¥ 12,376 | ¥ 2,312 | |||
Unrecognized employee share-based compensation expense | $ 2,240,000 | ¥ 15,595 | ||||
Period for recognition of unrecognized compensation cost | 2 years 3 months 7 days | 2 years 3 months 7 days | ||||
Nonemployees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options outstanding, beginning of period | shares | 93,700 | 93,700 | 219,400 | |||
Granted (in shares) | shares | 153,300 | 153,300 | 53,700 | |||
Forfeited (in shares) | shares | (160,000) | |||||
Exercised (in shares) | shares | (19,400) | |||||
Options outstanding, end of period | shares | 247,000 | 247,000 | 93,700 | 219,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, beginning of period | $ 0.0004 | $ 0 | ||||
Granted, per share | 0.0003 | 0.0005 | ||||
Forfeited, per share | 0 | |||||
Exercised, per share | 0 | |||||
Weighted Average Exercise Price, Ending of period | 0.0003 | 0.0004 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, beginning of period | 7.53 | 4.91 | ||||
Fair value of grants, per share | 9.80 | 9.55 | ||||
Fair value of forfeitures, per share | 4.44 | |||||
Fair value of exercises, per share | 6.50 | |||||
Weighted Average Grant Date Fair Value, end of period | $ 8.94 | $ 7.53 | $ 4.91 | |||
Weighted Average Remaining Contractual Term | 8 years 1 month 10 days | 8 years 1 month 10 days | 7 years 2 months 19 days | |||
Aggregate Intrinsic Value | $ | $ 2,422,000 | $ 904,000 | $ 2,076,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Vested and expected to vest, shares outstanding | shares | 247,000 | 247,000 | ||||
Vested and expected to vest, weighted average exercise price | $ 0.0003 | |||||
Vested and expected to vest, weighted average grant date fair value, per share | $ 8.94 | |||||
Vested and expected to vest, remaining contractual term | 8 years 4 months 24 days | 8 years 4 months 24 days | ||||
Vested and expected to vest, aggregate intrinsic value | $ | $ 2,422,000 | |||||
Exercisable, shares outstanding | shares | 202,600 | 202,600 | ||||
Exercisable, weighted average exercise price | $ 0.0003 | |||||
Exercisable, weighted average grant date fair value, per share | $ 9 | |||||
Exercisable, remaining contractual term | 8 years 2 months 16 days | 8 years 2 months 16 days | ||||
Exercisable, aggregate intrinsic value | $ | $ 1,986,000 | |||||
Fair value of equity awards vested | 1,334,000 | ¥ 9,284 | ¥ 3,004 | |||
Unrecognized employee share-based compensation expense | $ 411,000 | ¥ 2,859 | ||||
Period for recognition of unrecognized compensation cost | 8 months 16 days | 8 months 16 days |
SHARE BASED COMPENSATION - Fair
SHARE BASED COMPENSATION - Fair value of options (Details) - Options | 12 Months Ended | |
Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |
Fair value of options | ||
Exercise multiple | 2.5 | 2.5 |
Minimum | ||
Fair value of options | ||
Risk-free interest rate | 1.55% | 2.46% |
Expected volatility range | 60.37% | 62.14% |
Fair market value per ordinary share as at grant dates | $ 9.61 | $ 9.46 |
Maximum | ||
Fair value of options | ||
Risk-free interest rate | 2.50% | 3.11% |
Expected volatility range | 64.48% | 63.61% |
Fair market value per ordinary share as at grant dates | $ 9.80 | $ 9.61 |
SHARE BASED COMPENSATION - Shar
SHARE BASED COMPENSATION - Share-based compensation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expenses | $ 4,719 | ¥ 32,855 | ¥ 7,936 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expenses | 47 | 327 | 317 |
Selling and marketing expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expenses | 775 | 5,393 | 2,871 |
Research and development expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expenses | 364 | 2,534 | 1,958 |
General and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expenses | $ 3,533 | ¥ 24,601 | ¥ 2,790 |
INCOME TAXES (Details)
INCOME TAXES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Taxes | |||
Statutory rate | 25.00% | 25.00% | 25.00% |
Loss before income taxes | |||
Non-PRC | $ (8,137) | ¥ (56,658) | ¥ (18,944) |
PRC | (6,490) | (45,181) | (23,551) |
Loss before income taxes | (14,627) | (101,839) | (42,495) |
Current and deferred components of income tax (expense) benefit | |||
Current tax | 18 | 130 | 111 |
Deferred tax | 13 | 88 | 88 |
Total | $ 31 | ¥ 218 | ¥ 199 |
PRC | |||
Income Taxes | |||
Statutory rate | 25.00% | 25.00% | |
Preferential income tax rate | 20.00% | 20.00% | |
Dividend Withholding Tax Rate Percentage | 10.00% | 10.00% | |
United States | |||
Income Taxes | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory rate | 25.00% | 25.00% | 25.00% |
Loss before income taxes | $ (14,627) | ¥ (101,839) | ¥ (42,495) |
Income tax benefit computed at the statutory income tax rate at 25% | 3,657 | 25,460 | 10,624 |
Non-deductible expenses | (738) | (5,141) | (4,485) |
International rate differences | (1,633) | (11,367) | (2,227) |
Preferential tax rate differences | (102) | (710) | (210) |
Effect of change in tax rate | 113 | 789 | (826) |
Change in valuation allowance | (1,266) | (8,813) | (2,677) |
Total | $ 31 | ¥ 218 | ¥ 199 |
INCOME TAXES - Components of de
INCOME TAXES - Components of deferred taxes (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Deferred tax assets: | |||
Net loss carryforward | $ 3,325 | ¥ 23,148 | ¥ 14,705 |
Accrued expenses | 212 | 1,479 | 1,043 |
Bad debt expenses | 10 | 70 | 85 |
Others | 10 | 69 | 120 |
Valuation allowance | (3,557) | (24,766) | (15,953) |
Deferred tax liabilities: | |||
Long-lived assets arising from acquisition | (163) | (1,134) | (1,222) |
Total deferred tax liabilities | $ (163) | ¥ (1,134) | ¥ (1,222) |
INCOME TAXES - Tax losses (Deta
INCOME TAXES - Tax losses (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Operating Loss Carryforwards | ||
Operating Loss Carryforwards | $ 19,896 | ¥ 136,796 |
PRC | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards | 15,683 | 109,181 |
United States | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards | $ 2,735 | ¥ 19,043 |
INCOME TAXES - Unrecognized tax
INCOME TAXES - Unrecognized tax benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Unrecognized Tax Benefits | ||||||
Unrecognized tax benefit | $ 1,702 | ¥ 11,847 | ¥ 9,398 | $ 1,702 | ¥ 11,847 | ¥ 9,398 |
Unrecognized tax benefit related to tax loss carryforward | $ 1,702 | 11,847 | 9,235 | |||
Portion of unrecognized tax benefit that will impact the effective tax rate | ¥ 0 | ¥ 130 | ||||
Reconciliation of Unrecognized Tax Benefits | ||||||
Unrecognized tax benefit, beginning of period | 1,350 | 9,398 | 6,936 | |||
Addition based on tax positions related to the current year | 404 | 2,810 | 3,064 | |||
Decrease based on tax positions related to prior years | (52) | (361) | (602) | |||
Unrecognized tax benefit, end of period | $ 1,702 | 11,847 | 9,398 | |||
Interest accrued in relation to the unrecognized tax benefit | ¥ 0 | ¥ 40 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50.00% | ||
Percentage of net income which subsidiaries are required to allocate to general reserve fund | 10.00% | ||
Amount of statutory reserve allocated | ¥ 0 | ¥ 0 | |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $ 777 | ¥ 5,406 | ¥ 2,580 |
Minimum | |||
Percentage of net income which a foreign invested enterprise is required to allocate to general reserve fund | 10.00% |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Related party balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 80 | ¥ 555 | ¥ 269 |
Due to related parties | 660 | 4,597 | 28,687 |
Anpai | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 77 | 535 | 269 |
Jiangsu Anpac | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 1 | ||
Due to related parties | 43 | 300 | 450 |
Jiaxing Zhijun | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 1 | 6 | |
Due to related parties | 25,000 | ||
Shanghai Yulin | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 2 | 13 | |
CRS | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 272 | 1,894 | 2,413 |
Zhijun | |||
Related Party Transaction [Line Items] | |||
Accrued interest expense | 345 | 2,403 | |
Due to related parties | $ 345 | ¥ 2,403 | ¥ 824 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Interest expense | $ 227 | ¥ 1,579 | ¥ 824 | |
Repayment of related party loan | (22) | (150) | (350) | |
Short-term Debt | 5,540 | 25,961 | ¥ 38,568 | |
Anpac Beijing | ||||
Related Party Transaction [Line Items] | ||||
Revenue rendered | 3 | 231 | ||
Anpac Beijing | Consulting service | ||||
Related Party Transaction [Line Items] | ||||
Related party expense | 316 | 2,199 | 700 | |
Anpai | ||||
Related Party Transaction [Line Items] | ||||
Revenue rendered | 88 | 616 | 298 | |
CRS | ||||
Related Party Transaction [Line Items] | ||||
Loan from related party | 173 | 1,202 | 1,431 | |
Repayment of loan | (181) | (1,262) | (1,144) | |
Jiaxing Zhijun | Advance | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction | 25,000 | |||
Jiaxing Zhijun | Purchase ordinary shares with the advance | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction | 3,591 | 25,000 | ||
Zhijun | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | 227 | 1,579 | 824 | |
Zhijun | Convertible loan | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction | 16,445 | |||
Shanghai Yulin | ||||
Related Party Transaction [Line Items] | ||||
Loan to related party | (414) | (2,885) | ||
Repayment of loan to related party | 413 | 2,872 | ||
Jiangsu Anpac | ||||
Related Party Transaction [Line Items] | ||||
Revenue rendered | 9 | 64 | 110 | |
Repayment of related party loan | (22) | ¥ (150) | (350) | |
Short-term bank and other borrowings | ||||
Related Party Transaction [Line Items] | ||||
Short-term Debt | $ 2,011 | ¥ 8,000 | 14,000 | |
Short-term bank and other borrowings | Borrowings At Interest Rate Of 11% [Member] | ||||
Related Party Transaction [Line Items] | ||||
Short-term Debt | 8,000 | |||
Short-term bank and other borrowings | Borrowings At Interest Rate Of 4.35% [Member] | ||||
Related Party Transaction [Line Items] | ||||
Short-term Debt | ¥ 6,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value loss on convertible loans | $ 761 | ¥ 5,296 | ¥ 784 | |
No transfers into Level 3 | 0 | |||
No transfers out of Level 3 | 0 | |||
Carrying amount of long-term investment not fully recoverable | ¥ 2,750 | |||
impairment charges | 190 | 1,320 | ¥ 0 | |
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
CL | 3,529 | 24,568 | ||
impairment charges | $ | 190 | |||
Non recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity investments accounted for at fair value using the measurement alternative | $ 205 | 1,430 | ||
impairment charges | ¥ 1,320 | |||
Level 3 | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
CL | 24,568 | |||
Level 3 | Non recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity investments accounted for at fair value using the measurement alternative | ¥ 1,430 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Operating lease commitments | ||
2020 | $ 462 | ¥ 3,215 |
2021 | 358 | 2,492 |
2022 | 290 | 2,019 |
Thereafter | 1,363 | 9,489 |
Total | $ 2,473 | ¥ 17,215 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | |||
Net loss used in calculating loss per share-basic and diluted | $ (14,515) | ¥ (101,060) | ¥ (42,063) |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic and diluted loss per share | 8,937,600 | 8,937,600 | 8,524,100 |
Basic and diluted loss per share | (per share) | $ (1.62) | ¥ (11.31) | ¥ (4.93) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jan. 30, 2020$ / sharesshares | Mar. 31, 2020CNY (¥) | Feb. 29, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Apr. 30, 2020USD ($) |
Subsequent Event [Line Items] | |||||||
Repayments of Short-term Debt | $ 2,629 | ¥ 18,300 | ¥ 14,700 | ||||
Subsequent events | |||||||
Subsequent Event [Line Items] | |||||||
Repayments of Short-term Debt | ¥ | ¥ 8,000 | ||||||
Subsequent events | Convertible loan | |||||||
Subsequent Event [Line Items] | |||||||
Principal amount redeemed | $ | $ 1,750 | ||||||
Principal amount of debt issued to Zhijun | $ | $ 750 | ||||||
Subsequent events | IPO [Member] | American Depository Shares [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Issuance of ordinary shares (in shares) | shares | 1,333,360 | ||||||
Share Price | $ / shares | $ 12 | ||||||
Subsequent events | IPO [Member] | Class A Ordinary Shares | |||||||
Subsequent Event [Line Items] | |||||||
Issuance of ordinary shares (in shares) | shares | 1,333,360 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 880 | ¥ 6,125 | ¥ 12,887 |
Amounts due from related parties | 80 | 555 | 269 |
Other current assets | 1,837 | 12,790 | 2,078 |
Total current assets | 3,185 | 22,171 | 20,852 |
Non-current assets: | |||
Other assets | 144 | 1,000 | 1,462 |
TOTAL ASSETS | 7,611 | 52,982 | 52,762 |
Current liabilities: | |||
Short-term debt | 5,540 | 38,568 | 25,961 |
Amounts due to related parties | 660 | 4,597 | 28,687 |
Accrued expenses and other current liabilities | 2,698 | 18,782 | 10,859 |
TOTAL LIABILITIES | 9,898 | 68,906 | 75,155 |
Shareholders' deficit: | |||
Ordinary shares | 569 | ||
Additional paid-in capital | 37,021 | 257,736 | 152,367 |
Accumulated deficits | (39,712) | (276,476) | (174,353) |
Accumulated other comprehensive (loss) income | 303 | 2,110 | (976) |
Total AnPac Bio-Medical Science Co., Ltd. shareholders' deficit | (2,294) | (15,973) | (22,393) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 7,611 | 52,982 | 52,762 |
Parent Company | Reportable Legal Entity | |||
Current assets: | |||
Cash and cash equivalents | 6 | 44 | 3,703 |
Amounts due from related parties | 14,322 | 99,704 | 53,672 |
Other current assets | 125 | 872 | 82 |
Total current assets | 14,453 | 100,620 | 57,457 |
Non-current assets: | |||
Investments in subsidiaries | (10,383) | (72,289) | (49,811) |
Other assets | 109 | 760 | 851 |
TOTAL ASSETS | 4,179 | 29,091 | 8,497 |
Current liabilities: | |||
Short-term debt | 3,529 | 24,568 | 17,961 |
Amounts due to related parties | 2,613 | 18,194 | 12,600 |
Accrued expenses and other current liabilities | 331 | 2,302 | 329 |
TOTAL LIABILITIES | 6,473 | 45,064 | 30,890 |
Shareholders' deficit: | |||
Ordinary shares | 569 | ||
Additional paid-in capital | 37,021 | 257,736 | 152,367 |
Accumulated deficits | (39,712) | (276,476) | (174,353) |
Accumulated other comprehensive (loss) income | 303 | 2,110 | (976) |
Total AnPac Bio-Medical Science Co., Ltd. shareholders' deficit | (2,294) | (15,973) | (22,393) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 4,179 | 29,091 | ¥ 8,497 |
Class A Ordinary Shares | |||
Shareholders' deficit: | |||
Ordinary shares | 67 | 466 | |
Class A Ordinary Shares | Parent Company | Reportable Legal Entity | |||
Shareholders' deficit: | |||
Ordinary shares | 67 | 466 | |
Class B Ordinary Shares | |||
Shareholders' deficit: | |||
Ordinary shares | 27 | 191 | |
Class B Ordinary Shares | Parent Company | Reportable Legal Entity | |||
Shareholders' deficit: | |||
Ordinary shares | $ 27 | ¥ 191 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets - Parenthetical (Details) - $ / shares | Dec. 31, 2019 | Oct. 31, 2019 | Oct. 30, 2019 | Oct. 29, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, par value per share | $ 0.01 | $ 0.01 | |||
Ordinary shares authorized | 0 | 100,000 | 100,000,000 | ||
Ordinary Shares issued | 0 | 8,596,900 | |||
Ordinary shares outstanding | 0 | 0 | |||
Class A Ordinary Shares | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, par value per share | $ 0.01 | $ 0.01 | $ 0.01 | ||
Ordinary shares authorized | 70,000,000 | 70,000,000 | 700,000 | 71,369 | 0 |
Ordinary Shares issued | 7,004,900 | 0 | |||
Ordinary shares outstanding | 7,004,900 | 0 | |||
Class B Ordinary Shares | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, par value per share | $ 0.01 | $ 0.01 | |||
Ordinary shares authorized | 30,000,000 | 30,000,000 | 300,000 | 28,631 | 0 |
Ordinary Shares issued | 2,863,100 | 0 | |||
Ordinary shares outstanding | 2,863,100 | 0 | |||
Parent Company | Reportable Legal Entity | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, par value per share | $ 0.01 | $ 0.01 | |||
Ordinary shares authorized | 0 | 100,000,000 | |||
Ordinary Shares issued | 0 | 8,596,900 | |||
Ordinary shares outstanding | 0 | 8,596,900 | |||
Parent Company | Class A Ordinary Shares | Reportable Legal Entity | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, par value per share | $ 0.01 | $ 0.01 | |||
Ordinary shares authorized | 70,000,000 | 0 | |||
Ordinary Shares issued | 7,004,900 | 0 | |||
Ordinary shares outstanding | 7,004,900 | 0 | |||
Parent Company | Class B Ordinary Shares | Reportable Legal Entity | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, par value per share | $ 0.01 | ||||
Ordinary shares authorized | 30,000,000 | 0 | |||
Ordinary Shares issued | 2,863,100 | 0 | |||
Ordinary shares outstanding | 2,863,100 | 0 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating loss: | |||
Selling and marketing expenses | $ (1,958) | ¥ (13,633) | ¥ (9,827) |
Research and development expenses | (1,413) | (9,839) | (10,106) |
General and administrative expenses | (10,167) | (70,781) | (28,847) |
Loss from operations | (12,795) | (89,082) | (43,609) |
Interest expense | (375) | (2,609) | (925) |
Other expense, net | (1,023) | (7,119) | 5,256 |
Net loss attributable to ordinary shareholders | (14,515) | (101,060) | (42,063) |
Other comprehensive income, net of tax: | |||
Fair value change relating to Company's own credit risk on convertible loan | (137) | (955) | |
-Foreign currency translation difference | 428 | 2,978 | 797 |
Total comprehensive loss attributable to ordinary shareholders | (14,224) | (99,037) | (41,266) |
Parent Company | Reportable Legal Entity | |||
Operating loss: | |||
Selling and marketing expenses | (775) | (5,393) | (2,871) |
Research and development expenses | (364) | (2,534) | (1,958) |
General and administrative expenses | (4,579) | (31,884) | (3,537) |
Loss from operations | (5,718) | (39,811) | (8,366) |
Interest expense | (226) | (1,576) | (828) |
Other expense, net | (757) | (5,273) | (784) |
Share of losses of subsidiaries | (7,814) | (54,400) | (32,085) |
Net loss attributable to ordinary shareholders | (14,515) | (101,060) | (42,063) |
Other comprehensive income, net of tax: | |||
Fair value change relating to Company's own credit risk on convertible loan | (137) | (955) | |
-Foreign currency translation difference | 428 | 2,978 | 797 |
Total comprehensive loss attributable to ordinary shareholders | $ (14,224) | ¥ (99,037) | ¥ (41,266) |
PARENT COMPANY ONLY CONDENSED_6
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | $ (6,980) | ¥ (48,600) | ¥ (31,147) |
Net cash used in investing activities | (497) | (3,461) | (2,680) |
Net cash generated from financing activities | 6,622 | 46,108 | 36,271 |
Effect of exchange rate changes on cash and cash equivalents | (116) | (809) | (969) |
Net increase in cash and cash equivalents | (971) | (6,762) | 1,475 |
Cash and cash equivalents at beginning of year | 1,851 | 12,887 | 11,412 |
Cash and cash equivalents at end of year | 880 | 6,125 | 12,887 |
Reportable Legal Entity | Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | (1,712) | (11,922) | (1,259) |
Net cash used in investing activities | (4,512) | (31,415) | (12,475) |
Net cash generated from financing activities | 5,695 | 39,648 | 15,150 |
Effect of exchange rate changes on cash and cash equivalents | 4 | 30 | 125 |
Net increase in cash and cash equivalents | (525) | (3,659) | 1,541 |
Cash and cash equivalents at beginning of year | 531 | 3,703 | 2,162 |
Cash and cash equivalents at end of year | $ 6 | ¥ 44 | ¥ 3,703 |