Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Entity Interactive Data Current | Yes |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Gracell Biotechnologies Inc. |
Entity Central Index Key | 0001826492 |
Current Fiscal Year End Date | --12-31 |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Filer Category | Non-accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Document Annual Report | true |
Entity Address, Country | CN |
Entity Ex Transition Period | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Transition Report | false |
Entity Common Stock, Shares Outstanding | 272,815,996 |
ICFR Auditor Attestation Flag | false |
ADR [Member] | |
Document Information [Line Items] | |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | American depositary shares |
Trading Symbol | GRCL |
Common Stock [Member] | |
Document Information [Line Items] | |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | Ordinary shares |
No Trading Symbol Flag | true |
Consolidated Balance Sheet
Consolidated Balance Sheet ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 754,308 | $ 115,603 | ¥ 312,058 |
Short-term investments | 18,743 | 2,872 | 4,200 |
Prepayments and other current assets | 42,418 | 6,501 | 24,095 |
Total current assets | 815,469 | 124,976 | 340,353 |
Property, equipment and software, net | 119,083 | 18,250 | 48,323 |
Other non-current assets | 30,398 | 4,658 | 23,541 |
TOTAL ASSETS | 964,950 | 147,884 | 412,217 |
Current liabilities: | |||
Accruals and other current liabilities (including accruals and other current liabilities of the consolidated VIEs without recourse to the Company of RMB7,886 and RMB11,157 as of December 31, 2019 and 2020, respectively) | 42,401 | 6,498 | 18,166 |
Short-term borrowings (including accruals and short-term borrowings of the consolidated VIEs without recourse to the Company of nil and RMB49,990 as of December 31, 2019 and 2020, respectively) | 49,990 | 7,661 | 0 |
Current portion of long-term borrowings (including accruals and current portion of long-term borrowings of the consolidated VIEs without recourse to the Company of nil and RMB970 as of December 31, 2019 and 2020, respectively) | 970 | 149 | 0 |
Total current liabilities | 93,361 | 14,308 | 18,166 |
Convertible loans (including convertible loans of the consolidated VIEs without recourse to the Company of nil and nil as of December 31, 2019 and 2020, respectively) | 0 | 0 | 138,695 |
Long-term borrowings (including long-term borrowings of the consolidated VIEs without recourse to the Company of nil and RMB51,926 as of December 31, 2019 and 2020, respectively) | 51,926 | 7,958 | 0 |
TOTAL LIABILITIES | 145,287 | 22,266 | 156,861 |
Commitments and Contingencies | |||
Mezzanine equity: | |||
Total mezzanine equity | 1,407,536 | 215,714 | 547,843 |
Shareholders' deficit: | |||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 99,044,776 and 99,044,776 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 68 | 10 | 68 |
Additional paid-in capital | 0 | 0 | 0 |
Accumulated other comprehensive loss | (23,912) | (3,665) | (3,159) |
Accumulated deficit | (564,029) | (86,441) | (289,396) |
Total shareholders' deficit | (587,873) | (90,096) | (292,487) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | 964,950 | 147,884 | 412,217 |
Series A Redeemable Convertible Preferred Shares [Member] | |||
Mezzanine equity: | |||
Total mezzanine equity | 110,468 | 16,930 | 82,334 |
Series B One Redeemable Convertible Preferred Shares [Member] | |||
Mezzanine equity: | |||
Total mezzanine equity | 142,481 | 21,836 | 0 |
Series B Two Redeemable Convertible Preferred Shares [Member] | |||
Mezzanine equity: | |||
Total mezzanine equity | 495,799 | 75,985 | 465,509 |
Series C Redeemable Convertible Preferred Shares [Member] | |||
Mezzanine equity: | |||
Total mezzanine equity | ¥ 658,788 | $ 100,963 | ¥ 0 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares |
Convertible loans | ¥ 0 | ¥ 138,695 | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | |
Common Stock, Shares, Issued | 99,044,776 | 99,044,776 | |
Common Stock, Shares, Outstanding | 99,044,776 | 99,044,776 | |
Short term bank borrowings | ¥ 49,990 | ¥ 0 | |
Current portion of long term debt | 970 | 0 | |
Long term borrowings net of current portion | ¥ 51,926 | ¥ 0 | |
Series A Redeemable Convertible Preferred Shares [Member] | |||
Temporary Equity, Par or Stated Value Per Share | $ / shares | 0.0001 | ||
Temporary Equity, Shares Authorized | 31,343,284 | 31,343,284 | |
Temporary Equity, Shares Issued | 31,343,284 | 31,343,284 | |
Temporary Equity, Shares Outstanding | 31,343,284 | 31,343,284 | |
Series B One Redeemable Convertible Preferred Shares [Member] | |||
Temporary Equity, Par or Stated Value Per Share | $ / shares | 0.0001 | ||
Temporary Equity, Shares Authorized | 21,735,721 | 0 | |
Temporary Equity, Shares Issued | 21,735,721 | 0 | |
Temporary Equity, Shares Outstanding | 21,735,721 | 0 | |
Series B Two Redeemable Convertible Preferred Shares [Member] | |||
Temporary Equity, Par or Stated Value Per Share | $ / shares | 0.0001 | ||
Temporary Equity, Shares Authorized | 59,327,653 | 59,327,653 | |
Temporary Equity, Shares Issued | 59,327,653 | 59,327,653 | |
Temporary Equity, Shares Outstanding | 59,327,653 | 59,327,653 | |
Series C Redeemable Convertible Preferred Shares [Member] | |||
Temporary Equity, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||
Temporary Equity, Shares Authorized | 61,364,562 | 0 | |
Temporary Equity, Shares Issued | 61,364,562 | 0 | |
Temporary Equity, Shares Outstanding | 61,364,562 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Payable and Accrued Liabilities, Current | ¥ | ¥ 11,157 | ¥ 7,886 | |
Convertible loans | ¥ | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | Nonrecourse [Member] | |||
Short term bank borrowings | ¥ | 49,990 | 0 | |
Current portion of long term debt | ¥ | 970 | 0 | |
Long term borrowings net of current portion | ¥ | ¥ 51,926 | ¥ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss ¥ in Thousands, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Expenses | ||||
Research and development expenses | ¥ (168,830) | $ (25,874) | ¥ (119,218) | ¥ (52,243) |
Administrative expenses | (45,566) | (6,983) | (27,362) | (10,261) |
Loss from operations | (214,396) | (32,857) | (146,580) | (62,504) |
Interest income | 2,870 | 440 | 3,932 | 1,435 |
Interest expense | (2,155) | (330) | ||
Other income | 4,707 | 721 | 1,449 | 256 |
Foreign exchange gain (loss), net | (2,914) | (447) | 2,556 | |
Others, net | (12) | (2) | (21) | 20 |
Loss before income tax | (211,900) | (32,475) | (138,664) | (60,793) |
Income tax expense | 0 | 0 | ||
Net loss | (211,900) | (32,475) | (138,664) | (60,793) |
Deemed dividend to convertible redeemable preferred shareholders | 0 | 0 | (25,390) | |
Accretion of convertible redeemable preferred shares to redemption value | (62,733) | (9,614) | (36,802) | (12,199) |
Net loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | (274,633) | (42,089) | (200,856) | (72,992) |
Other comprehensive loss | ||||
Foreign currency translation adjustments, net of nil tax | (20,753) | (3,181) | (3,159) | |
Total comprehensive loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | ¥ (295,386) | $ (45,270) | ¥ (204,015) | ¥ (72,992) |
Weighted average number of ordinary shares used in per share calculation: | ||||
—Basic | 99,044,776 | 99,044,776 | 99,053,363 | 100,089,552 |
—Diluted | 99,044,776 | 99,044,776 | 99,053,363 | 100,089,552 |
Net loss per share attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | ||||
—Basic | (per share) | ¥ (2.77) | $ (0.42) | ¥ (2.03) | ¥ (0.73) |
—Diluted | (per share) | ¥ (2.77) | $ (0.42) | ¥ (2.03) | ¥ (0.73) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments tax | ¥ 0 | ¥ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Deficit ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Ordinary sharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Accumulated other comprehensive lossCNY (¥) | Accumulated deficitCNY (¥) |
Beginning Balance at Dec. 31, 2017 | ¥ (8,029) | ¥ 69 | ¥ 876 | ¥ (8,974) | ||
Beginning Balance (Shares) at Dec. 31, 2017 | shares | 100,089,552 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net loss | (60,793) | (60,793) | ||||
Accretion of convertible redeemable preferred shares to redemption value | (12,199) | ¥ (876) | (11,323) | |||
Ending Balance at Dec. 31, 2018 | (81,021) | ¥ 69 | (81,090) | |||
Ending Balance (Shares) at Dec. 31, 2018 | shares | 100,089,552 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net loss | (138,664) | (138,664) | ||||
Repurchase of ordinary shares (Note 8) (Shares) | shares | (1,044,776) | |||||
Repurchase of ordinary shares (Note 8) | (7,451) | ¥ (1) | (7,450) | |||
Repurchase of convertible redeemable preferred shares (Note 9) | (25,390) | (25,390) | ||||
Accretion of convertible redeemable preferred shares to redemption value | (36,802) | (36,802) | ||||
Foreign currency translation adjustment | (3,159) | ¥ (3,159) | ||||
Ending Balance at Dec. 31, 2019 | (292,487) | ¥ 68 | (3,159) | (289,396) | ||
Ending Balance (Shares) at Dec. 31, 2019 | shares | 99,044,776 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net loss | (211,900) | $ (32,475) | ¥ 0 | (211,900) | ||
Accretion of convertible redeemable preferred shares to redemption value | (62,733) | (9,614) | (62,733) | |||
Foreign currency translation adjustment | (20,753) | (3,181) | (20,753) | |||
Ending Balance at Dec. 31, 2020 | ¥ (587,873) | $ (90,096) | ¥ 68 | ¥ (23,912) | ¥ (564,029) | |
Ending Balance (Shares) at Dec. 31, 2020 | shares | 99,044,776 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (211,900) | $ (32,475) | ¥ (138,664) | ¥ (60,793) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 21,589 | 3,309 | 5,124 | 2,992 |
Foreign exchange (gain) loss, net | 2,914 | 447 | (2,556) | |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | (18,295) | (2,804) | (10,023) | (10,612) |
Accrued liabilities and other current liabilities | 7,543 | 1,156 | 10,726 | 6,557 |
Net cash used in operating activities | (198,149) | (30,367) | (135,393) | (61,856) |
Cash flows from investing activities: | ||||
Purchase of property, equipment and software | (79,400) | (12,169) | (56,432) | (11,357) |
Investments in short-term investments | (28,055) | (4,300) | (80,200) | (335,000) |
Proceeds from disposal of short-term investments | 13,514 | 2,071 | 178,000 | 233,000 |
Net cash (used in) generated from investing activities | (93,941) | (14,398) | 41,368 | (113,357) |
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible loans | 138,695 | |||
Repayment of convertible loans | (138,695) | (21,256) | ||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 795,420 | 121,903 | 439,501 | |
Repurchase of ordinary shares and preferred shares | (44,705) | |||
Proceeds from bank borrowings | 103,008 | 15,787 | 10,000 | |
Repayments of bank borrowings | (122) | (19) | (10,000) | |
Payment of initial public offering costs | (3,144) | (482) | ||
Net cash generated from financing activities | 756,467 | 115,933 | 394,796 | 138,695 |
Effect of exchange rate on cash and cash equivalents | (22,127) | (3,390) | (603) | |
Net increase in cash and cash equivalents | 442,250 | 67,778 | 300,168 | (36,518) |
Cash and cash equivalents at the beginning of year | 312,058 | 47,825 | 11,890 | 48,408 |
Cash and cash equivalents at the end of year | 754,308 | 115,603 | 312,058 | 11,890 |
Supplemental cashflow disclosures: | ||||
Interest paid | 2,155 | 330 | ||
Non-cash activities: | ||||
Deemed dividend to convertible redeemable preferred shareholders | 0 | 0 | 25,390 | |
Accretion of convertible redeemable preferred shares to redemption value | 62,733 | 9,614 | ¥ 36,802 | ¥ 12,199 |
Payables for deferred initial public offering cost | ¥ 14,924 | $ 2,287 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | 1. ORGANIZATION AND BASIS OF PRESENTATION (a) Nature of operations Gracell Biotechnologies Inc. (the “Company”), an exempted company with limited liability, was incorporated in Cayman Islands on May 22, 2018. The Company, through its consolidated subsidiaries and variable interest entity (“VIE”) (collectively referred to as the “Group”) engaged primarily in the business of discovering and developing cell therapies to resolve industry challenges and fulfill unmet medical needs in the treatment of cancer (collectively referred to as the “Gracell Business”). The Group’s principal operation and geographic market is in the People’s Republic of China (“PRC”). (b) Reorganization The Group carried out its principal business in the People’s Republic of China (the “PRC”) since May 22, 2017 mainly through Gracell Biotechnologies (Shanghai) Co., Ltd. (“Gracell Biotechnologies” or the “VIE”) in the PRC. In connection with the Company’s planned initial public offering on the overseas capital market and facilitate offshore financing, the Group underwent a reorganization through which Gracell Biotechnologies (HK) Limited and Gracell Bioscience (Shanghai) Co., Ltd., (the “WFOE”), were established. The Company then entered into a series of contractual arrangements among the WFOE, the VIE and the VIE’s shareholders in January 2019 and the VIE’s shareholders swapped their shares in the VIE for shares in the Company to establish the Company as the ultimate holding company and the VIE became the variable interest entity of the Group (“Reorganization”). As of December 31, 2020, the Company’s principal subsidiaries are as follows: Date of incorporation Place of incorporation Percentage of ownership by the Company Principal activities Subsidiaries Gracell Biotechnologies Holdings Limited (“Gracell BVI”) May 22, 2018 British VirginIslands 100% Investment holding Gracell Biotechnologies (HK) Limited June 7, 2018 Hong Kong 100% Investment holding Gracell Bioscience (Shanghai) Co., Ltd. August 24, 2018 The PRC 100% Research and development of innovative medicines Gracell Biopharmaceuticals, Inc. February 11, 2020 The United States of America 100% Research and development of innovative medicines Gracell Biomedicine (Shanghai) Co., Ltd. August 19, 2020 The PRC 100% Research and development of innovative medicines VIE Gracell Biotechnologies (Shanghai) Co., Ltd. May 22, 2017 The PRC — Research and development of innovative medicines VIE’s subsidiary Suzhou Gracell Biotechnologies Co., Ltd. (“Suzhou Gracell”) April 23, 2018 The PRC — Research and development of innovative medicines On January 12, 2021, the Company completed its Initial Public Offering and became listed on the Nasdaq Global Selected Market (see Note 16 for details). (c) Basis of Presentation for the Reorganization The Reorganization consists of transferring the Gracell Business to the Group, which is controlled by the founder immediately before and after the Reorganization. The Reorganization was a recapitalization with no substantial changes in the shareholding of the Company. Accordingly, the Reorganization is accounted for as a transaction under common control. Therefore, the accompanying consolidated financial statements include the assets, liabilities, revenue, expenses and cash flows of the Gracell Business for the periods presented and are prepared on a carryover basis as if the corporate structure of the Group after the Reorganization had been in existence throughout the periods presented. Accordingly, the effect of the ordinary shares and the preferred shares issued by the Company pursuant to the Reorganization have been presented retrospectively as of the beginning of the earliest period presented on the consolidated financial statements or the original issue date, whichever is later, as if such shares were issued by the Company when the Group issued such interests. (d) Contractual agreements with the VIE Due to restrictions imposed by PRC laws and regulations on foreign ownership of companies engaged in the development and application of human stem cell or gene diagnostic and therapeutic technologies, the Group operates its restricted businesses in the PRC through its VIE, whose equity interests are ultimately held by the founder and other shareholders of the Group through the VIE’s nominee shareholder. The Company obtained control over the VIE by entering into a series of contractual arrangements with the VIE’s legal shareholder who is also referred to as nominee shareholder. The nominee shareholder is the legal owner of the VIE. However, the rights of the nominee shareholder have been transferred to the Group through the contractual arrangements. The contractual arrangements used to control the VIE are the voting rights proxy agreement, call option agreement, technology consultation and service agreement, business cooperation agreement and equity pledge agreement. The Company’s management concluded that the Company, through the contractual arrangements, has the power to direct the activities that most significantly impact the VIE’s economic performance and bears the risks of and enjoys the rewards normally associated with ownership of the VIE. Therefore, the Company is the ultimate primary beneficiary of the VIE. As such, the Company consolidates the financial statements of the VIE and its subsidiary, and the financial results of the VIE were included in the Group’s consolidated financial statements in accordance with the basis of presentation as stated in Note 2. The following is a summary of the principal terms of the contractual agreements entered into by and among the WFOE, the VIE and the nominee shareholders of the VIE are described below: Voting rights proxy agreement The WFOE, the Group’s VIE and the nominee shareholders of the VIE have entered into an voting rights proxy agreement, pursuant to which the nominee shareholders of the Group’s VIE irrevocably appointed WFOE or its designated persons as their attorney-in-fact The agreement will remain in force for twenty (20) years and can be extended only if the WFOE gives its written notice of the extension of this agreement before the expiration of this agreement and the other parties shall agree with this extension without reserve. Call option agreement The WFOE, the Group’s VIE and the nominee shareholders of the VIE have entered into a call option agreement, pursuant to which the shareholders of the VIE irrevocably granted the WFOE an exclusive option to purchase, or have its designated person to purchase, at its discretion, to the extent permitted under PRC law, all or part of their equity interests in the VIE and the purchase price shall be the lowest price permitted by applicable PRC law. The shareholders undertake that, without the prior written consent of the WFOE, they shall not sell, transfer, mortgage or otherwise dispose of its equity interests in the VIE or allow the encumbrance thereon of any security interest, increase or decrease the registered capital of the VIE, appoint or replace any directors of the VIE, sell, transfer, mortgage or dispose of the VIE’s assets or beneficial interest in the business or revenues, conduct any merger, acquisition or investments, declare or distribution any dividend; change or amend articles of association or incur any debts or guarantee liabilities. The exclusive option agreement will remain effective until all equity interests in the VIE are transferred or assigned to the WFOE or its designated representative(s). Technology consultation and service agreement The WFOE and the VIE entered into a technology consultation and service agreement under which the WFOE engages the VIE as its exclusive consultant and provider of fund, human, technology and intellectual properties service and technical support, consulting services and other commercial services on exclusive basis in relation to the principal business. The WFOE has exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of this agreement. During the term of the agreement, the VIE may not enter into any agreement with third parties for the provision of identical or similar service without prior consent of the WFOE. In exchange, WFOE agrees to pay an annual service fee to the VIE and such fee is determined by WFOE based on its services provided including various factors such as WFOE’s incurred technology support and consulting services fees, performance data and the VIE’s revenues. The agreement will remain in force for twenty (20) years and can be extended with WFOE’s written notice of the extension before the expiration of this agreement and the VIE shall agree with this extension without reserve. Business cooperation agreement Under the business cooperation agreement entered between the VIE and WFOE, WFOE has the exclusive right to provide to the VIE technology support, consulting services and other commercial services including market analysis and consultation, products research and development, training and operation management consultation services. The VIE can’t sell, dispose, pledge the intellectual property rights created by the performance of this agreement which should be exclusively owned by WFOE. In exchange, WFOE agrees to pay an annual service fee to VIE based on the services provided including various factors such as WFOE’s incurred technology support and consulting services fees, performance data and VIE’s profit. The agreement shall maintain effective unless terminated under applicable PRC laws and regulations. Equity Pledge Agreement Pursuant to the share pledge agreement entered between the VIE and its shareholders and WFOE, the shareholders of VIE have to pledge all of their equity interests in the VIE to WFOE to guarantee the performance by the VIE and its shareholders’ performance of their respective obligations under the call option agreement, technology consultation and service agreement, and voting rights proxy agreement. If the VIE and/or its shareholders breach their contractual obligations under those agreements, WFOE, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. The shareholders of VIE also undertakes that, during the term of the equity pledge agreements, they shall not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests. During the term of the equity pledge agreement, WFOE has the right to receive all of the dividends and profits distributed on the pledged equity interests. The pledge will remain binding until the VIE and their shareholders discharge all their obligations under the contractual arrangements. Spouse Consent Letter On January 3, 2019, the spouse of the founder, unconditionally and irrevocably agreed that the equity interest in the VIE held by the founder will be disposed of pursuant to the equity pledge agreement, the voting rights proxy agreement and the call option agreement. The spouse agreed not to make any assertions in connection with the equity interest in the VIE held by the founder. Risks in relation to the VIE structure A significant part of the Group’s business is conducted through the VIE of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of the management, the contractual arrangements with the VIE and the nominee shareholder are in compliance with PRC laws and regulations and is legally binding and enforceable. Nominee shareholders indicate that they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of the PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if nominee shareholders of the VIE was to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. It is possible that the Group’s operation of certain of its operations and businesses through the VIE could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote, on March 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, which became effective on January 1, 2020 and replaces three laws regulating foreign investment in China, namely, the Wholly Foreign-Invested Enterprise Law of the PRC, the Sino-Foreign Cooperative Joint Venture Enterprise Law of the PRC and the Sino-Foreign Equity Joint Venture Enterprise Law of the PRC, together with their implementation rules and ancillary regulations. The Foreign Investment Law of the PRC embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. However, since it is relatively new, uncertainties still exist in relation to its interpretation and implementation. For example, the Foreign Investment Law of the PRC adds a catch-all If the Group’s corporate structure or the contractual arrangements with the VIE were found to be in violation of any existing or future PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: • revoking the business licenses and/or operating licenses of such entities; • discontinuing or placing restrictions or onerous conditions on the Group’s operation through any transactions between the PRC subsidiary and the VIE; • imposing fines, confiscating the income from the PRC subsidiary or the VIE, or imposing other requirements with which the VIE may not be able to comply; • requiring the Group to restructure the ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering the equity pledges of the VIE, which in turn would affect the Group’s ability to consolidate, derive economic interests from, or exert effective control over the VIE; • restricting or prohibiting the Group’s use of the proceeds of this offering to finance the Group’s business and operations in China; or • taking other regulatory or enforcement actions that could be harmful to the Group’s business. The imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIE, which may result in deconsolidation of the VIE in the Group’s consolidated financial statements. In the opinion of the management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group believes that the contractual arrangements among each of the VIE, their respective shareholders and relevant wholly foreign owned enterprise are in compliance with PRC law and are legally enforceable. The Group’s operations depend on the VIE to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The Company’s management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under the PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIE or the nominee shareholders of the VIE fail to perform their obligations under those arrangements. The contractual arrangements cannot be unilaterally terminated. Management concluded that the Company, through the WFOE and the contractual arrangements, has the power and control to direct the activities that most significantly impact the VIE’s economic performance, bears the risks and enjoys the rewards normally associated with ownership of the VIE, receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from the VIE as if it was their sole shareholder and therefore the Company is the ultimate primary beneficiary of the VIE. As such, the Group consolidates the financial results of the VIE which are prepared in accordance with the basis of presentation as stated in Note 2 below. The following financial information of the Group’s VIE and the VIE’s subsidiary as of December 31, 2019 and 2020 and for each of the three years in the period ended December 31, 2020 is included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2019 2020 RMB RMB US$ (Note 2) ASSETS Current assets: Cash and cash equivalents 42,153 49,749 7,624 Short-term investments 4,200 18,743 2,872 Amounts due from related parties 51,835 48,505 7,434 Prepayments and other current assets 17,912 29,152 4,469 Total current assets 116,100 146,149 22,399 Property, equipment and software 36,350 78,401 12,016 Other non-current 17,682 9,744 1,493 TOTAL ASSETS 170,132 234,294 35,908 LIABILITIES Current liabilities: Amounts due to related parties 218,719 270,004 41,380 Accruals and other current liabilities 7,886 11,157 1,710 Short-term borrowings — 49,990 7,661 Current portion of long-term borrowings — 970 149 Total current liabilities 226,605 332,121 50,900 Amounts due to related parties 23,000 29,915 4,585 Long-term borrowings — 51,926 7,958 TOTAL LIABILITIES 249,605 413,962 63,443 For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Total revenue from related parties 130 6,604 16,906 2,591 Net loss (59,582 ) (83,066 ) (100,195 ) (15,355 ) For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Net cash used in operating activities (61,856 ) (87,277 ) (84,862 ) (13,006 ) Net cash generated from (used in) investing activities (113,358 ) 59,281 (68,628 ) (10,518 ) Net cash generated from financing activities 138,695 58,259 161,086 24,688 The Company’s involvement with the VIE is through the contractual arrangements disclosed in Note 1. All recognized assets held by the VIE are disclosed in the table above. In accordance with various contractual agreements, the Company has the power to direct the activities of the VIE and can have assets transferred out of the VIE. Therefore, the Company considers that there are no assets in the respective VIE that can be used only to settle obligations of the respective VIE, except for the registered capital of the VIE. As the respective VIE is incorporated as limited liability company under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIE. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIE. As the Group is conducting certain businesses in the PRC through the VIE, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary. The Group believes that the contractual arrangements among the VIE shareholders, the VIE and the WFOE comply with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of the VIE were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control the VIE also depends on the voting rights proxy and the effect of the share pledge under the Equity Pledge Agreement and the WFOE has to vote on all matters requiring shareholders’ approval in the VIE. As noted above, the Company believes this voting right proxy is legally enforceable but may not be as effective as direct equity ownership. |
Summary of Significant accounti
Summary of Significant accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompany consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principal accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. Principles of Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, and the VIE have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly: (1) controls more than one half of the voting power; (2) has the power to appoint or remove the majority of the members of the board of directors; (3) casts a majority of votes at the meeting of the board of directors; or (4) governs the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. The Company applies the guidance codified in Accounting Standard Codification (“ASC”) 810, Consolidations, which contains guidance of accounting for VIEs. The guidance requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but are not limited to, the useful lives and impairment of long-lived assets, deferred tax valuation allowance, share-based compensation expenses. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates. Foreign currency translation The Group uses Chinese Renminbi (“RMB”) as its reporting currency. The United States Dollar (“US$”) is the functional currency of the Group’s entities incorporated in the Cayman Islands, Hong Kong, the RMB is the functional currency of the Company’s PRC subsidiaries. Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in other than the functional currencies are translated at the balance sheet date exchange rate. The resulting exchange differences are recorded in the consolidated statements of comprehensive loss as foreign currency translation adjustments. The consolidated financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses are translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are reflected in the accumulated other comprehensive income. Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss, consolidated statements of changes in shareholders’ deficit and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.5250, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. The US$ convenience translation is not required under U.S. GAAP and all US$ convenience translation amounts in the accompanying consolidated financial statements are unaudited. Cash and cash equivalents Cash and cash equivalents primarily consist of cash and demand deposits which are highly liquid. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. Short-term investments Short-term investments are deposits at bank with maturities of greater than three months, but less than twelve months. Short-term investments are stated at cost, which approximates fair value. Interest earned is included in interest income. Fair value measurements The Group applies ASC 820, Fair Value Measurements and Disclosures Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes 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 does not have any non-financial Property, equipment and software Property and equipment and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Category Estimated Useful Life Machinery and laboratory equipment 5 years Vehicles 4 years Furniture and tools 3-5 Electronic equipment 3 years Computer software 3-5 Leasehold improvements Lesser of lease terms or estimated useful lives of the assets Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation and amortization from the asset and accumulated depreciation and amortization accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Impairment of long-lived assets The Group evaluates the recoverability of its long-lived assets, including fixed assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to the estimated undiscounted future 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 is the new cost basis and is 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. No impairment loss was recorded for the years ended December 31, 2019 and 2020. Segment reporting In accordance with ASC 280, Segment Reporting Research and development expenses Elements of research and development expenses primarily include (1) payroll and other related costs of personnel engaged in research and development activities, (2) costs related to pre-clinical Research and Development Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the governments. The Group’s PRC based subsidiaries received government subsidies from certain local governments. The Group’s government subsidies consist of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has set certain conditions for the subsidies. Other subsidies are the subsidies that the local government has not set any conditions and are not tied to future trends or performance of the Group, receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. For the years ended December 31, 2019 and 2020, no specific subsidies were received by the Group. Other subsidies are recognized as other income upon receipt as further performance by the Group is not required. Leases 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 exists: 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 incurrence of an obligation at the inception of the lease. The Group had no capital leases for the years ended December 31, 2019 and 2020. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over their respective lease terms. The Group leases certain office space under non-cancelable Comprehensive loss 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 shareholders and distributions to shareholders. Accumulated other comprehensive loss of the Group includes foreign currency translation adjustments. Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes The Group evaluates its uncertain tax positions using the provisions of ASC 740, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the consolidated financial statements. The Group recognizes in the consolidated financial statements the benefit of a tax position which is “more likely than not” to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Group’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. Borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statements of comprehensive loss over the period of the borrowings using the effective interest method. Share-based compensation The Company grants share options to eligible employees and consultants and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation The Company follows ASC 718 to determine whether a share option should be classified and accounted for as a liability award or equity award. All grants of share-based awards to employees, management and nonemployees classified as equity awards are recognized in the financial statements based on their grant date fair values which are calculated using the binomial option pricing model. Employees’ share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses (a) immediately at the grant date if no vesting conditions are required; or (b) for share-based awards granted with only service conditions, using the straight-line method, over the vesting period; or (c) for share-based awards granted with service conditions and the occurrence of an initial public offering (“IPO”) as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded vesting method. The Company early adopted Accounting Standards Update (“ASU”) 2016-09, Net loss per share In accordance with ASC 260, Earnings Per Share two-class two-class if-converted two-class Employee defined contribution plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and the VIE of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB 5.46 million and RMB 4.29 million for the years ended December 31, 2019 and 2020 respectively. Concentration of risks Concentration of credit risk As of December 31, 2019 and 2020, the aggregate amount of cash and cash equivalents and short-term investments of RMB 221,568 and RMB 771,319 respectively, were held at major financial institutions located in the mainland of China, and RMB 94,690 and RMB 1,731 , respectively, were deposited with major financial institutions located outside the mainland of China. These financial institutions are of high credit quality and management continually monitors the credit worthiness of these financial institutions. Business and economic risk The Group believes that changes in any of the following areas could have a material adverse effect on the Group’s future consolidated 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 new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with the Group’s ability to attract employees necessary to support its growth. The Group’s operations could also be adversely affected by significant political, regulatory, economic and social uncertainties in the PRC. Foreign currency exchange rate risk A significant portion of the Group’s businesses are transacted in RMB, which is not a freely convertible currency. 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 US$ 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. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. 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 and depreciation of approximately 1.3% and 6.5% in the years ended December 31, 2019 and 2020, respectively. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. Recently issued accounting pronouncements The Group qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Group adopts the following standards based on extended transition period provided to private companies or early adopts as necessary as permitted by the respective standards. New and amended standards adopted by the Group In August 2018, the FASB issued ASU No. 2018-13, 2018-13”). 2018-13 2018-13 2018-13. 2018-13 In November 2018, the FASB issued ASU 2018-18, In February 2016, the FASB issued ASU No. 2016-02 2016-02”), No. 2018-10 2018-10”), 2016-02; No. 2018-11 2018-11”), No. 2019-10, 2019-10”), 2016-02 2016-02, 2016-02 In June 2016, the FASB issued ASU No. 2016-13, 2016-13”). 2016-13 2019-10, 2016-13 2016-13 In December 2019, the FASB issued ASU 2019-12, 2019-12 In August 2020, the FASB issued ASU 2020-06, Debt—Debt with (Subtopic 470-20) and (Subtopic 815-40): Accounting Subtopic 470-20, Debt—Debt |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets [Abstract] | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 3. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consist of the following: As of December 31, 2019 2020 RMB RMB US$ (Note 2) Deductible value-added tax input 13,770 30,961 4,745 Prepayments for CRO and other services 5,427 3,295 505 Deposits 3,959 3,326 510 Others 939 4,836 741 24,095 42,418 6,501 |
Property, Equipment And Softwar
Property, Equipment And Software | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE | 4. PROPERTY, EQUIPMENT AND SOFTWARE Property, equipment and software consist of the following: As of December 31, 2019 2020 RMB RMB US$ (Note 2) Machinery and laboratory equipment 20,281 63,172 9,682 Leasehold improvements (a) 5,654 53,405 8,185 Construction in Progress 28,515 28,403 4,353 Vehicles 1,088 1,088 167 Others 1,121 2,940 449 Total property, equipment and software 56,659 149,008 22,836 Less: accumulated depreciation and amortization (8,336 ) (29,925 ) (4,586 ) Property, equipment and software, net 48,323 119,083 18,250 Depreciation and amortization expenses recognized for the years ended December 31, 2019 and 2020 were RMB 5,124 and RMB 21,5 89 Note (a): As of December 31, 2020, Suzhou Gracell has completed the renovation of a new leased laboratory. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | 5. OTHER NON-CURRENT Other non-current As of December 31, 2019 2020 RMB RMB US$ (Note 2) Prepayment for property, equipment and software 23,541 30,398 4,658 |
Accruals And Other Current Liab
Accruals And Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUALS AND OTHER CURRENT LIABILITIES | 6. ACCRUALS AND OTHER CURRENT LIABILITIES Accruals and other current liabilities consist of the following: As of December 31, 2019 2020 RMB RMB US$ (Note 2) Salary and welfare payables 6,720 12,119 1,857 Accrued external research and development related expenses 6,942 9,425 1,444 Professional service fees 2,092 15,399 2,360 Rental fees 2,072 2,835 435 Others 340 2,623 402 18,166 42,401 6,498 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | 7. BORROWINGS As of December 31, 2019 2020 RMB RMB US$ (Note 2) Current Short-term borrowings: Bank loans — 49,990 7,661 Current portion of long-term borrowings — 970 149 Total current borrowings — 50,960 7,810 Non-Current Long-term borrowings: Bank loans — 51,926 7,958 Total non-current — 51,926 7,958 Total borrowings — 102,886 15,768 Short-term borrowings In May 2020, Suzhou Gracell entered into a loan agreement with China Construction Bank, under which Suzhou Gracell borrowed an aggregate principal amount of RMB5.0 million in the form of a term loan for 12 months. Interest on the outstanding loan balance accrues at a fixed annual rate equal to the one-year loan the one-year loan the one-year loan the one-year loan the one-year loan the one-year loan Other than the interest rate, these loan agreements with China Construction Bank have substantially the same terms and conditions. The effective interest rate of these borrowing is 3.65% to 4.35% per annum. In December 2020, Suzhou Gracell entered into two loan agreements with China CITIC Bank. Under each agreement Suzhou Gracell borrowed a principal amount of RMB5.0 million respectively in the form of a term loan for 12 months. Interest on the outstanding loan balance accrues at a fixed annual rate equal to the one-year loan In December 2020, Suzhou Gracell entered into a loan agreement with China Industrial Bank Co., Ltd., under which Suzhou Gracell borrowed an aggregate principal amount of RMB9.99 million in the form of a term loan for 12 months. Interest on the outstanding loan balance accrues at a fixed annual rate equal to the one-year loan Long-term borrowings In January 2020, Suzhou Gracell entered into a loan agreement with Bank of China, under which Suzhou Gracell obtained a term loan facility of RMB69.0 million for a term of 72 months commencing from the first drawdown date. Interest on the outstanding loan balance accrues at a variable annual rate equal to the five-year loan prime rate plus 0.2%. Suzhou Gracell is required to make interest payments on the loan on a semi-annual basis and payments of principal according to the agreed repayment schedule which will commence from the end of the 42nd month after the first drawdown date. Suzhou Gracell borrowed an aggregate principal amount of RMB44.28 million within the facility limit as of December 31, 2020. The effective interest rate of these borrowings is 4.85% to 5.00% per annum. In July 2020, Suzhou Gracell entered into a loan agreement with China Merchants Bank, under which Suzhou Gracell obtained a term loan facility of RMB29.0 million for a term of 60 months commencing from June 2, 2020 and ending on June 1, 2025. During the term, Suzhou Gracell may make multiple drawdowns within the facility limit. Interest on the outstanding loan balance accrues quarterly at a variable annual rate equal to the one-year |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
ORDINARY SHARES | 8. ORDINARY SHARES As at December 31, 2019 and 2020, 500,000,000 ordinary shares with a par value of $0.0001 had been authorized by the Company. Each ordinary share is entitled to one vote. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors of the Company. In 2017, the VIE issued 9,800,000 ordinary shares to William Wei Cao with total consideration of RMB2,150 and 208,955 ordinary shares to Shanghai Guidance Capital Ltd. (“Shanghai Zhaoheng”) and Suzhou Tonghe Venture Investment Partnership II (L.P.) (“Tonghe II”) for a total consideration of RMB200. On January 3, 2019, the VIE repurchased 104,478 shares of ordinary shares held by Shanghai Zhaoheng. As part of the Reorganization in January 2019, the former ordinary shares were exchanged for ordinary shares of the Company on a 1:10 basis. On March 6, 2020, 1,044,776 ordinary shares of the Company was transferred from Tonghe II to OrbiMed Asia Partners III, L.P., King Star Med LP, LAV Granite Limited, LAV Biosciences Fund V, L.P., Victory Treasure Limited and OrbiMed Asia Partners III, L.P.. On October 14, 2020, William Cao Wei transferred 5,910,000 ordinary shares of the Company to Michelia Figo Holding Limited with an aggregate consideration of US$1.00 per share. As at December 31, 2020, 99,044,776 shares of ordinary shares were issued and outstanding. |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Shares | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity [Abstract] | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 9. CONVERTIBLE REDEEMABLE PREFERRED SHARES On August 8, 2017, the VIE issued 3,656,716 shares of Series A convertible redeemable preferred shares (“Series A Preferred Shares”) to certain investors at US$3.032 per share for a total consideration of US$11,087 (equivalent to approximately RMB69,800). On August 14, 2018, the Company, the VIE and certain investors entered into a convertible loan agreement and a warrant agreement. Prior to the obtaining of requisite overseas direct investment approvals (“ODI approval”), the investors agreed to provide a convertible loan in an aggregate principal amount of US$22,000 (equivalent to approximately RMB138,695) to the VIE, with no interest and acquire warrants to subscribe for a total number of 21,735,721 Series B1 Preferred Shares of the Company at US$1.0122 per share. On January 3, 2019, the VIE repurchased 104,478 shares of ordinary shares and 522,388 shares of Series A Preferred Shares for an aggregate price of US$6,657 (equivalent to approximately RMB44,705). The consideration exceeded the carrying value of repurchased ordinary shares and Series A Preferred Shares by RMB32,840, which was recorded as deemed dividend to the ordinary and preferred shareholders. As part of the Reorganization in January 2019, the former Series A Preferred Shares were exchanged for 31,343,284 Series A Convertible Redeemable Preferred Shares of the Company (“Series A Preferred Shares”) on a 1:10 basis at US$0.3032 per share. On February 22, 2019, the Company issued 59,327,653 shares of Series B-2 B-2 B-1 B-2 As disclosed in Note 1(b), the Group had undergone the Reorganization and changed the issuer of the Series A Preferred Shares to be the reporting entity through share swaps. The major terms and number of shares of the Series A Preferred Shares have remained the same. Thus, there is no accounting impact as a result of the Reorganization at the consolidated level. As further discussed in Note 1(b), the Reorganization was a transaction by Group entities under common control. The equity section of the Company after the Reorganization is assumed to have existed from the earliest period presented in the consolidated financial statements. During the period from July 2, 2020 to September 9, 2020, the Company issued 21,735,721 Series B-1 On October 20, 2020, the Company issued 61,364,562 shares of Series C convertible redeemable preferred shares (“Series C Preferred Shares”) to certain investors at US$ 1.635331 per share for total consideration of US$100,351. The key features of the Series A, Series B and Series C Preferred Shares (collectively the “Preferred Shares”) are as follows: Dividends right Each Preferred Share shall have the right to receive non-cumulative as-converted Liquidation preference In the event of any liquidation, dissolution or winding up of the Company, either voluntarily or involuntarily, all assets and funds of the Company legally available for distribution (after satisfaction of all creditors’ claims and claims that may be preferred by law) shall be distributed in the following preference order: (i) Holders of the Series C Preferred Shares shall be entitled to receive a per share amount equal to 100% of the issue price of Series C Preferred Shares, respectively, plus all declared but unpaid dividends and minus all paid dividends. (ii) Holders of the Series B Preferred Shares shall be entitled to receive a per share amount equal to 140% of the issue price of Series B Preferred Shares, respectively, plus all declared but unpaid dividends and minus all paid dividends. (iii) Holders of the Series A Preferred Shares shall be entitled to receive a per share amount equal to 150% of the issue price of Series A Preferred Shares, respectively, plus all declared but unpaid dividends and minus all paid dividends. Conversion right Each Preferred Share may be converted at any time into ordinary shares at the option of the preferred shareholders based on the then-effective conversion price. The initial conversion ratio is 1:1, subject to adjustment in the event of share splits and combinations, ordinary share dividends and distributions, reorganizations, mergers, consolidations, exchanges, substitutions, or dilutive issuance. All Preferred Shares are converted automatically into ordinary shares at the then effective applicable conversion price upon a Qualified Public Offering (public offering of the Company’s shares with an offering price (exclusive of underwriting discounts and registration expenses) that reflects the minimum market capitalization and other conditions set forth in the Company’s articles). Redemption right At any time following the first occurrence of any redemption event specified in the shareholders’ agreement (“Redemption Events”), the outstanding preferred shareholders may request a redemption up to all of the outstanding shares held. The Redemption Events shall mean: (i) the Company fails to complete a Qualified Public Offering within five (5) years from October 20, 2020; (ii) any material breach or violation by any Group Company, the Founder or the Founder Holding Company of any of its representations, warranties or covenants contained in the Transaction Documents made to any Investor alone or together with any other Person and such breach or violation is not curable or is not cured within thirty (30) days from the date of occurrence; (iii) the Founder ceases to hold the offices of Chairman and president of the Company or ceases to be in full-time employment by any Group Company in any other capacity within five (5) years from October 20, 2020 unless otherwise approved by the Board (including all Investor Directors); (iv) the exercise of redemption right by any holders with redemption right. The price at which each Preferred Share shall be redeemed equals to: (i) in respect of each Series C Preferred Share, 100% of the original issue price on each preferred share, plus all declared but unpaid dividends on such Series C Preferred Share accrued as of the redemption payment date; and (ii) in respect of each Series B Preferred Share, 140% of the original issue price on each preferred share, plus all declared but unpaid dividends on such Series B Preferred Share accrued as of the redemption payment date; and (iii) in respect of each Series A Preferred Share, 150% of the issue price of Series B-2 After the liquidation amounts of all series of the Preferred Shares have been paid in full, any remaining funds or assets of the Company legally available for distribution to shareholders shall be distributed ratably among the holders of the Preferred Shares, on an as-converted Accounting of Preferred Shares The Preferred Shares are classified as mezzanine equity in the consolidated balance sheets because they are contingently redeemable upon the occurrence of an event outside of the Company’s control (e.g. the Company not achieving a Qualified Public Offering or a deemed liquidation event before October 20, 2025 (“Target QIPO Date”). The Preferred Shares were determined to be mezzanine equity with no embedded feature to be bifurcated and no beneficial conversion features to be recognized. The Preferred Shares are initially recorded at their respective issuance date fair value, net of issuance cost. The Company incurred issuance cost with amount of RMB13,386 (US$2,000) for the issuance of Series C Preferred Shares. The cumulative undeclared dividends are not recorded in the consolidated balance sheet as the Company does not have the obligation to pay the cumulative dividend before it is declared by the board of directors. The Company concluded that the Preferred Shares are not currently redeemable, but are probable to become redeemable. The Company accreted changes in the redemption value over the period from the date of issuance to the earliest redemption date using the effective interest method. The accretion is recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in-capital, paid-in-capital, Modification of Preferred Shares On January 3, 2019, the Target QIPO Date was extended from November 15, 2022 to February 22, 2024 upon issuance of Series B-2 On March 6, 2020, the redemption price of Series A Preferred Shares was amended. Before modification, the redemption price of each share of Series A Preferred Shares equals to 150% of the original issue price on each preferred share, plus the interest at an annual compound rate of eight percent (8%) on the original issue price on each preferred share accrued from August 8, 2017 to the redemption payment date minus all paid dividends on such Series A Preferred Share. The amendment is accounted for as a modification rather than extinguishment as the fair values of these Preferred Shares immediately after the amendment were not significantly different from their respective fair values immediately before the amendment. When Preferred Shares are modified and such modification results in value transfer between preferred shareholders and ordinary shareholders, the value transferred is treated as a deemed dividend to or deemed contribution from the preferred shareholders. The change in fair value of Series A Preferred Shares immediately before and after the modification was RMB9,055. The decrease in fair value of the ordinary shares is RMB9,055, in substance, a transfer of wealth from the ordinary shareholders to the Series A preferred shareholders. On October 20, 2020, the Target QIPO Date was extended from February 22, 2024 to October 20, 2025 upon issuance of Series C Preferred Shares. The amendment is accounted for as a modification rather than extinguishment as the fair values of these Preferred Shares immediately after the amendment were not significantly different from their respective fair values immediately before the amendment. When Preferred Shares are modified and such modification results in value transfer between preferred shareholders and ordinary shareholders, the value transferred is treated as a deemed dividend to or deemed contribution from the preferred shareholders. The change in fair value of Series A, Series B-1 B-2 The Company’s Preferred Shares activities for the periods presented are summarized below: Mezzanine equity Series A Series B-1 Series B-2 Series C Total RMB RMB RMB RMB RMB Balance as of December 31, 2018 83,404 — — — 83,404 Issuance of Series B-2 — — 439,501 — 439,501 Repurchase of Series A Preferred Shares (11,864 ) — — — (11,864 ) Accretion of Series A Preferred Shares to redemption value 10,794 — — — 10,794 Accretion of Series B-2 — — 26,008 — 26,008 Balance as of December 31, 2019 82,334 — 465,509 547,843 Issuance of Series B-1 — 138,695 — — 138,695 Issuance of Series C Preferred Shares — — — 658,26 5 658,26 5 Accretion of Series A Preferred Shares to redemption value 28,134 — — — 28,134 Accretion of Series B-1 — 3,786 — — 3,786 Accretion of Series B-2 — — 30,290 — 30,290 Accretion of Series C Preferred Shares to redemption value — — — 523 523 Balance as of December 31, 2020 110,468 142,481 495,799 658,78 8 1,407,53 6 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 10. SHARE-BASED COMPENSATION On August 8, 2017, the Company adopted the 2017 Employee Stock Option Plan (“PRC Plan” or “2017 Plan”), which was replaced by the Amended and Restated 2017 Employee Stock Option Plan (“Global Plan”) on April 15, 2019 to reserve a pool of 4,388,060 shares of the Company’s ordinary shares to be granted to the officers, directors, employees and consultants of the Company as part of the Reorganization. The replacement of PRC Plan with Global Plan and revocation of the original 2017 Plan are viewed as having no accounting impacts as the 2017 Plan has remained effective throughout and there’s essentially no change but merely just to change the form of the plan due to the Reorganization. In July 2020, the Company adopted the Second Amended and Restated Employee Stock Option Plan (“the Second Global Plan”) and increased the maximum number of shares issuable to 7,388,060. In October 2020, the Company adopted the Third Amended and Restated Employee Stock Option Plan (“the Third Global Plan”) and increased the maximum number of shares issuable to 10,216,234. The terms of the Second Global Plan and the Third Global Plan are substantially the same other than the maximum aggregate number of shares the Company may issue under the respective plan. Share options granted will be exercisable upon the Company completes a listing and the grantee renders service to the Company in accordance with a stipulated service. Grantees are generally subject to a four-year vesting schedule, under which the shares vest in four equal instalments over the four years. The share option, to the extent then vested, shall become exercisable only upon the earlier of (i) a listing, and (ii) a sale of all or substantially all of the issued share capital of the Company, or (iii) a sale by the Company of all or substantially all of its assets (but excluding any internal reorganization). Prior to the Company completes a listing, all share options granted to a grantee shall be forfeited at the time the grantee terminates his service with the Group. After the Company completes a listing, vested options not exercised by a grantee shall be exercised until later of: (i) 90 days after the date when the options become exercisable, or (ii) 3 months after the date of cessation of employment or directorship, or such longer period as the Board may determine. The share option awards shall expire no more than 10 years from their grant dates (“Option Period”). If a listing is not achieved, a share option will lapse automatically upon the expiry of the Option Period. The Company granted 1,375,500, 941,814 and 5,198,298 share options to grantees, with an exercise price of US$0.30, US$1.06 and US$1.65, for the years ended December 31, 2018, 2019 and 2020, respectively. No options are exercisable as of December 31, 2018, 2019 and 2020 and prior to the Group completing IPO. In December 2020, the Company adopted 2020 Share Incentive Plan (the “2020 Plan”), which will become effective immediately prior to the completion of the Company’s IPO. Under the 2020 Plan, the maximum aggregate number of ordinary shares available for issuance shall initially be three percent (3%) of the ordinary shares of the Company outstanding immediately upon completion of the Company’s IPO. Subsequently, the maximum aggregate number of ordinary shares available for issuance will be increased on an annual basis on the first calendar day of the fiscal year to be the lesser of a number determined by the board of directors or one percent (1%) of the total issued and outstanding ordinary shares on the last day of the immediately preceding fiscal year. The 2020 Plan is governed by the Company’s board of directors or a designated committee and permits various types of awards to be granted to eligible persons under specific terms and vesting schedule evidenced by an award agreement. The awards are equity classified. Cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded vesting method. The following table sets forth the share options activities for the years ended December 31, 2018, 2019 and 2020: Number of Options Weighted- Average Exercise Price Weighted- Average Grant Date Fair Value Weighted- Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value US$ per option US$ per option RMB per option Years RMB Outstanding at January 1, 2018 532,000 0.30 0.09 0.61 9.69 — Granted 1,375,500 0.30 0.29 1.97 — — Outstanding at January 1, 2019 1,907,500 0.30 0.24 1.59 9.33 3,798 Granted 941,814 1.06 0.38 2.65 — — Forfeited (92,190 ) 0.71 0.30 2.06 — — Outstanding at January 1, 2020 2,757,124 0.55 0.28 1.93 8.67 7,728 Granted 5,198,298 1.65 0.56 3.92 — — Forfeited (545,823 ) 0.71 0.37 2.56 — — Outstanding at December 31, 2020 7,409,599 1.32 0.47 3.28 8.89 112,024 Vested and expected to vest at December 31, 2020 7,409,599 1.32 0.47 3.28 8.89 112,024 Exercisable at December 31, 2020 — — — — — — Share-based compensation related to the vested but not exercisable share options that will be recognized upon completion of the IPO for the years ended December 31, 2018, 2019 and 2020 were US$98, US$380 and US$1,195 (approximately RMB657, RMB2,579 and RMB8,315), respectively. As of December 31, 2018, 2019 and 2020, there were US$350, US$401 and US$2,287(approximately RMB2,375, RMB2,756 and RMB16,017) of share-based compensation related to the unvested share options, which will be recognized over a weighted-average period of 3.47, 2.85 and 3.18 years, respectively. Fair value of share options The fair value of options was determined using the binomial option valuation model, with the assistance from an independent third-party appraiser. The binomial model requires the input of highly subjective assumptions, including the expected volatility, the exercise multiple, the risk-free rate and the dividend yield. For expected volatility, the Group has made reference to historical volatility of several comparable companies in the same industry. The exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. The risk-free rate for periods within the contractual life of the options is based on the market yield of U.S. Treasury Strips plus China country risk premium with a maturity life equal to the remaining maturity life of the options as of the valuation date, sourced from Bloomberg. The dividend yield is based on our expected dividend policy over the contractual life of the options. The assumptions used to estimate the fair value of the share options granted are as follows: For the year ended December 31, 2018 For the year ended December 31, 2019 For the year ended December 31, 2020 Risk-free interest rate 3.7%-4.0 % 2.9%-3.1 % 1.6%-2.1 % Dividend yield 0 % 0 % 0 % Expected volatility range 55.0%-56.2 % 53.7%-54.3 % 54.9%-58.1 % Exercise multiple 2.20 2.20 2.20-2.80 Contractual life 10 years 10 years 10 years Since the exercisability is dependent upon the listing, and it is not probable that this performance condition can be achieved until a listing, no share-based compensation expense was recorded for the years ended December 31, 2018, 2019 and 2020. The Group will recognize compensation expenses relating to options vested cumulatively upon the completion of the Company’s listing. |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSE | 11. INCOME TAX EXPENSE PRC Effective from January 1, 2008, the PRC’s statutory, Enterprise Income Tax (“EIT”) rate is 25%. According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in R&D activities are entitled to claim an additional tax deduction amounting to 50% of the qualified R&D expenses incurred in determining its tax assessable profits for that year. The additional tax deduction amount of the qualified R&D expenses has been increased from 50% to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). Cayman Islands Gracell Biotechnologies Inc. is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands Gracell Biotechnologies Inc. is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. British Virgin Islands Gracell BVI is incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, Gracell Biotechnologies Inc. is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no British Virgin Islands withholding tax is imposed. Hong Kong Gracell HK is incorporated in Hong Kong. Companies registered in Hong Kong are subject to Hong Kong profits tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the relevant Hong Kong tax laws. The applicable tax rate in Hong Kong is 16.5%. For the three years ended December 31, 2020, Gracell HK did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earnings in Hong Kong for any of the periods presented. Under the Hong Kong tax law, Gracell HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. Reconciliation between the income tax expense computed by applying the statutory tax rate to loss before income tax and the actual provision for income tax is as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Loss before income tax (60,793 ) (138,664 ) (211,900 ) (32,475 ) Income tax computed at respective applicable tax rate (15,198 ) (32,091 ) (48,606 ) (7,449 ) Research and development super-deduction(a) (6,862 ) (16,996 ) (22,121 ) (3,390 ) Non-deductible 23 346 100 15 Changes in valuation allowance 22,037 48,741 70,627 10,824 Income tax expense — — — — Deferred taxes were measured using the enacted tax rates for the periods in which the temporary differences are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2018, 2019 and 2020 are as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Deferred tax assets: Net operating loss carry forward 22,651 70,374 140,905 21,595 Depreciation and amortization of property, equipment and software 1,777 2,795 2,892 443 Gross deferred tax assets 24,428 73,169 143,797 22,038 Less: valuation allowance (24,428 ) (73,169 ) (143,797 ) (22,038 ) Total deferred tax assets, net — — — — Movement of the valuation allowance is as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Balance as of January 1 2,391 24,428 73,169 11,214 Addition 22,037 48,741 70,628 10,824 Balance as of December 31 24,428 73,169 143,797 22,038 A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized in the foreseeable future. In making such determination, the Group evaluates a variety of positive and negative factors including the Group’s operating history, accumulated deficit, the existence of taxable temporary differences and reversal periods. The Group has incurred net accumulated operating losses for income tax purposes since its inception. The Group believes that it is more likely than not that these net accumulated operating losses will not be utilized in the future. Therefore, the Group has provided full valuation allowances for the deferred tax assets as of December 31, 2018, 2019 and 2020. The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2018, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | 12. NET LOSS PER SHARE Basic and diluted net loss per share for the years ended December 31, 2018, 2019 and 2020 are calculated as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Numerator: Net loss attributable to Gracell Biotechnologies Inc.’s shareholders (60,793 ) (138,664 ) (211,900 ) (32,475 ) Deemed dividend to convertible redeemable preferred shareholders — (25,390 ) — — Accretion of convertible redeemable preferred shares to redemption value (12,199 ) (36,802 ) (62,733 ) (9,614 ) Net loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders (72,992 ) (200,856 ) (274,633 ) (42,089 ) Denominator: Weighted-average number of ordinary shares outstanding—basic and diluted 100,089,552 99,053,363 99,044,776 99,044,776 Net loss per share attributable to Gracell Biotechnologies Inc.’s ordinary shareholders—basic and diluted (0.73 ) (2.03 ) (2.77 ) (0.42 ) For the years ended December 31, 2018, 2019 and 2020, assumed conversion of the Preferred Shares has not been reflected in the dilutive calculations pursuant to ASC 260, “Earnings Per Share,” due to the anti-dilutive effect. For the years ended December 31, 2018, 2019 and 2020, the Company also has certain share options, which cannot be exercised until the Company completes IPO, that are not included in the computation of diluted losses per shares as such contingent event had not taken place. The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows: For the years ended December 31, 2018 2019 2020 shares shares shares Convertible redeemable preferred shares 36,567,165 85,779,363 110,230,842 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS a) Related Parties Name of related parties Relationship William Wei Cao Founder, CEO and a principal shareholder of the Company Unitex Capital Ltd. An entity controlled by Founder b) The Group had the following related party transactions: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Rent Payment: William Wei Cao 500 — — — Payment for in-licensing Unitex Capital Ltd (a) — 1,358 — — Payment for professional service fee Unitex Capital Ltd (b) — — 2,631 381 Note (a): For the year ended December 31, 2019, the Group paid RMB1,358 to obtain an exclusive license from Unitex Capital Ltd. Note (b): For the year ended December 31, 2020, the Group paid RMB2,631 professional service fee to Unitex Capital Ltd. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Operating lease commitments Future minimum payments under non-cancelable RMB US$ (Note 2) For the years ending: 2021 8,949 1,372 2022 9,712 1,488 2023 6,956 1,066 2024 — — 2025 — — Total 25,617 3,926 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The Group’s lease arrangements have no renewal options, rent escalation clauses, restrictions or contingent rents and are all executed with third parties. For the years ended December 31, 2018, 2019 and 2020, total rental related expenses for all operating leases amounted to RMB3,145, RMB11,104 and RMB11,536, respectively. Contingencies The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position or results of operations. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
RESTRICTED NET ASSETS | 15. RESTRICTED NET ASSETS The Group’s ability to pay dividends may depend on the Group receiving distributions of funds from its PRC subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiary only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s PRC subsidiary. In accordance with the Company law of the PRC, a domestic enterprise is required to provide statutory reserves of at least 10% of its annual after-tax As a result of these PRC laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax Foreign exchange and other regulations in the PRC further restrict the Company’s PRC subsidiaries from transferring funds to the Company in the form of dividends, loans and advances. Since the Group has a consolidated shareholders’ deficit, its net asset base for purposes of calculating the proportionate share of restricted net assets of consolidated subsidiaries should be zero. Therefore, the restrictions placed on the net assets of the Company’s PRC subsidiaries with positive equity would result in the 25 percent threshold being exceeded and a corresponding requirement to provide parent company financial information (Note 18). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
subsequent events | 16. SUBSEQUENT EVENTS The Group evaluated subsequent events through April 23, 2020, the date these consolidated financial statements were issued. On January 12, 2021, the Company completed its IPO. At the closing of its IPO, the Company issued 11,000,000 American depositary shares (“ADSs”) at public offering price of US$19.00 per ADS. The number of ADSs issued at closing included the exercise in full of the underwriters’ option to purchase 1,650,000 additional ADSs from the Company. The aggregate gross proceeds from the IPO were approximately US$240 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. Each ADS represents 5 ordinary shares of the Company. Upon the completion of the IPO, the Company’s then outstanding 31,343,284 Series A Preferred Shares, 21,735,721 Series B-1 Series B-2 Preferred On March 15, 2021, the Stock Option Plan Committee passed resolutions and granted 298,800 options under the 2020 Plan to certain employees with an exercise price of US$23.2 per option. On March 30, 2021, Suzhou Gracell entered into a loan agreement with China CITIC Bank, under which Suzhou Gracell borrowed an aggregate principal amount of RMB10.0 million in the form of a term loan for 12 months. Interest on the outstanding loan balance accrues at a fixed annual rate equal to the one-year loan prime rate. Suzhou Gracell is required to make interest payments on the loan on a monthly basis and repay principal at the end of the loan term. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [text block] | 17. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X 4-08 The subsidiaries did not pay any dividends to the Company for the years presented. For the purpose of presenting parent company only financial information, the Company records its investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments (deficit) in subsidiaries” and the loss of the subsidiaries is presented as “share of losses of subsidiaries”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, long-term obligations, other long-term debt, or guarantees as of December 31, 2019 and 2020. Balance sheets As of December 31, 2019 2020 RMB RMB US$ (Note 2) ASSETS Current assets: Cash and cash equivalents 236,263 683,565 104,761 Amounts due from related parties 138,695 — — Total current assets 374,958 683,565 104,761 Investments in subsidiaries 41,198 148,654 22,782 Amounts due from related parties 23,000 29,915 4,585 Other non-current — 17,568 2,691 TOTAL ASSETS 439,156 879,702 134,819 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Amounts due to related parties 44,705 45,587 6,986 Accruals and other current liabilities 400 14,452 2,215 Total current liabilities 45,105 60,039 9,201 Convertible loans 138,695 — — TOTAL LIABILITIES 183,800 60,039 9,201 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT (CONTINUED) Mezzanine equity: Series A convertible redeemable preferred shares (US$ 0.0001 par value; 31,343,284 and 31,343,284 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) 82,334 110,468 16,930 Series B-1 — 142,481 21,836 Series B-2 465,509 495,799 75,985 Series C convertible redeemable preferred shares (US$ 0.0001 par value; nil and 61,364,562 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) — 658,788 100,963 Total mezzanine equity 547,843 1,407,536 215,714 Shareholders’ deficit: Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 99,044,776 and 99,044,776 shares issued and outstanding as of December 31, 2019 and 2020, respectively) 68 68 10 Accumulated other comprehensive loss (3,159 ) (23,912 ) (3,665 ) Accumulated deficit (289,396 ) (564,029 ) (86,441 ) Total shareholders’ deficit (292,487 ) (587,873 ) (90,096 ) TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT 439,156 879,702 134,819 Statements of comprehensive loss For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Expenses Research and development expenses — (2,289 ) (1,753 ) (269 ) Administrative expenses — (3,334 ) (13,745 ) (2,106 ) Loss from operations — (5,623 ) (15,498 ) (2,375 ) Interest income — 2,904 2,179 334 Other losses — (21 ) — — Foreign exchange gain (loss), net — — (1,551 ) (238 ) Share of losses of subsidiaries (60,793 ) (135,924 ) (197,030 ) (30,196 ) Loss before income tax (60,793 ) (138,664 ) (211,900 ) (32,475 ) Income tax expense — — — — Net loss (60,793 ) (138,664 ) (211,900 ) (32,475 ) Deemed dividend to convertible redeemable preferred shareholders — (25,390 ) — — Accretion of convertible redeemable preferred shares to redemption value (12,199 ) (36,802 ) (62,733 ) (9,614 ) Net loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders (72,992 ) (200,856 ) (274,633 ) (42,089 ) Other comprehensive loss Foreign currency translation adjustments, net of nil tax — (3,159 ) (20,754 ) (3,181 ) Total comprehensive loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders (72,992 ) (204,015 ) (295,387 ) (45,270 ) Statements of cash flows For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Net cash used in operating activities — (5,499 ) (13,309 ) (2,040 ) Net cash used in investing activities — (197,739 ) (312,649 ) (47,916 ) Net cash generated from financing activities — 439,501 792,775 121,498 Effect of exchange rate on cash and cash equivalents — — (19,515 ) (2,991 ) Net increase in cash and cash equivalents — 236,263 447,302 68,551 Cash and cash equivalents at the beginning of year — — 236,263 36,210 Cash and cash equivalents at the end of year — 236,263 683,565 104,761 |
Summary of Significant accoun_2
Summary of Significant accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompany consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principal accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of Consolidation | Principles of Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, and the VIE have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly: (1) controls more than one half of the voting power; (2) has the power to appoint or remove the majority of the members of the board of directors; (3) casts a majority of votes at the meeting of the board of directors; or (4) governs the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. The Company applies the guidance codified in Accounting Standard Codification (“ASC”) 810, Consolidations, which contains guidance of accounting for VIEs. The guidance requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but are not limited to, the useful lives and impairment of long-lived assets, deferred tax valuation allowance, share-based compensation expenses. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates. |
Foreign currency translation | Foreign currency translation The Group uses Chinese Renminbi (“RMB”) as its reporting currency. The United States Dollar (“US$”) is the functional currency of the Group’s entities incorporated in the Cayman Islands, Hong Kong, the RMB is the functional currency of the Company’s PRC subsidiaries. Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in other than the functional currencies are translated at the balance sheet date exchange rate. The resulting exchange differences are recorded in the consolidated statements of comprehensive loss as foreign currency translation adjustments. The consolidated financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses are translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are reflected in the accumulated other comprehensive income. Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss, consolidated statements of changes in shareholders’ deficit and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.5250, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. The US$ convenience translation is not required under U.S. GAAP and all US$ convenience translation amounts in the accompanying consolidated financial statements are unaudited. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consist of cash and demand deposits which are highly liquid. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. |
Short-term investments | Short-term investments Short-term investments are deposits at bank with maturities of greater than three months, but less than twelve months. Short-term investments are stated at cost, which approximates fair value. Interest earned is included in interest income. |
Fair value measurements | Fair value measurements The Group applies ASC 820, Fair Value Measurements and Disclosures Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes 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 does not have any non-financial |
Property, equipment and software | Property, equipment and software Property and equipment and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Category Estimated Useful Life Machinery and laboratory equipment 5 years Vehicles 4 years Furniture and tools 3-5 Electronic equipment 3 years Computer software 3-5 Leasehold improvements Lesser of lease terms or estimated useful lives of the assets Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation and amortization from the asset and accumulated depreciation and amortization accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates the recoverability of its long-lived assets, including fixed assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to the estimated undiscounted future 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 is the new cost basis and is 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. No impairment loss was recorded for the years ended December 31, 2019 and 2020. |
Segment reporting | Segment reporting In accordance with ASC 280, Segment Reporting |
Research and development expenses | Research and development expenses Elements of research and development expenses primarily include (1) payroll and other related costs of personnel engaged in research and development activities, (2) costs related to pre-clinical Research and Development |
Government subsidies | Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the governments. The Group’s PRC based subsidiaries received government subsidies from certain local governments. The Group’s government subsidies consist of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has set certain conditions for the subsidies. Other subsidies are the subsidies that the local government has not set any conditions and are not tied to future trends or performance of the Group, receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. For the years ended December 31, 2019 and 2020, no specific subsidies were received by the Group. Other subsidies are recognized as other income upon receipt as further performance by the Group is not required. |
Leases | Leases 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 exists: 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 incurrence of an obligation at the inception of the lease. The Group had no capital leases for the years ended December 31, 2019 and 2020. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over their respective lease terms. The Group leases certain office space under non-cancelable |
Comprehensive loss | Comprehensive loss 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 shareholders and distributions to shareholders. Accumulated other comprehensive loss of the Group includes foreign currency translation adjustments. |
Income taxes | Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes The Group evaluates its uncertain tax positions using the provisions of ASC 740, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the consolidated financial statements. The Group recognizes in the consolidated financial statements the benefit of a tax position which is “more likely than not” to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Group’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. |
Borrowings | Borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statements of comprehensive loss over the period of the borrowings using the effective interest method. |
Share-based compensation | Share-based compensation The Company grants share options to eligible employees and consultants and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation The Company follows ASC 718 to determine whether a share option should be classified and accounted for as a liability award or equity award. All grants of share-based awards to employees, management and nonemployees classified as equity awards are recognized in the financial statements based on their grant date fair values which are calculated using the binomial option pricing model. Employees’ share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses (a) immediately at the grant date if no vesting conditions are required; or (b) for share-based awards granted with only service conditions, using the straight-line method, over the vesting period; or (c) for share-based awards granted with service conditions and the occurrence of an initial public offering (“IPO”) as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded vesting method. The Company early adopted Accounting Standards Update (“ASU”) 2016-09, |
Net loss per share | Net loss per share In accordance with ASC 260, Earnings Per Share two-class two-class if-converted two-class |
Employee defined contribution plan | Employee defined contribution plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and the VIE of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB 5.46 million and RMB 4.29 million for the years ended December 31, 2019 and 2020 respectively. |
Concentration of risks | Concentration of risks Concentration of credit risk As of December 31, 2019 and 2020, the aggregate amount of cash and cash equivalents and short-term investments of RMB 221,568 and RMB 771,319 respectively, were held at major financial institutions located in the mainland of China, and RMB 94,690 and RMB 1,731 , respectively, were deposited with major financial institutions located outside the mainland of China. These financial institutions are of high credit quality and management continually monitors the credit worthiness of these financial institutions. Business and economic risk The Group believes that changes in any of the following areas could have a material adverse effect on the Group’s future consolidated 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 new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with the Group’s ability to attract employees necessary to support its growth. The Group’s operations could also be adversely affected by significant political, regulatory, economic and social uncertainties in the PRC. Foreign currency exchange rate risk A significant portion of the Group’s businesses are transacted in RMB, which is not a freely convertible currency. 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 US$ 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. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. 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 and depreciation of approximately 1.3% and 6.5% in the years ended December 31, 2019 and 2020, respectively. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements The Group qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Group adopts the following standards based on extended transition period provided to private companies or early adopts as necessary as permitted by the respective standards. New and amended standards adopted by the Group In August 2018, the FASB issued ASU No. 2018-13, 2018-13”). 2018-13 2018-13 2018-13. 2018-13 In November 2018, the FASB issued ASU 2018-18, In February 2016, the FASB issued ASU No. 2016-02 2016-02”), No. 2018-10 2018-10”), 2016-02; No. 2018-11 2018-11”), No. 2019-10, 2019-10”), 2016-02 2016-02, 2016-02 In June 2016, the FASB issued ASU No. 2016-13, 2016-13”). 2016-13 2019-10, 2016-13 2016-13 In December 2019, the FASB issued ASU 2019-12, 2019-12 In August 2020, the FASB issued ASU 2020-06, Debt—Debt with (Subtopic 470-20) and (Subtopic 815-40): Accounting Subtopic 470-20, Debt—Debt |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Variable Interest Entities and Subsidiaries | As of December 31, 2020, the Company’s principal subsidiaries are as follows: Date of incorporation Place of incorporation Percentage of ownership by the Company Principal activities Subsidiaries Gracell Biotechnologies Holdings Limited (“Gracell BVI”) May 22, 2018 British VirginIslands 100% Investment holding Gracell Biotechnologies (HK) Limited June 7, 2018 Hong Kong 100% Investment holding Gracell Bioscience (Shanghai) Co., Ltd. August 24, 2018 The PRC 100% Research and development of innovative medicines Gracell Biopharmaceuticals, Inc. February 11, 2020 The United States of America 100% Research and development of innovative medicines Gracell Biomedicine (Shanghai) Co., Ltd. August 19, 2020 The PRC 100% Research and development of innovative medicines VIE Gracell Biotechnologies (Shanghai) Co., Ltd. May 22, 2017 The PRC — Research and development of innovative medicines VIE’s subsidiary Suzhou Gracell Biotechnologies Co., Ltd. (“Suzhou Gracell”) April 23, 2018 The PRC — Research and development of innovative medicines |
Summary of Financial Statements of the Variable Interest Entity and its Subsidiaries | The following financial information of the Group’s VIE and the VIE’s subsidiary as of December 31, 2019 and 2020 and for each of the three years in the period ended December 31, 2020 is included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2019 2020 RMB RMB US$ (Note 2) ASSETS Current assets: Cash and cash equivalents 42,153 49,749 7,624 Short-term investments 4,200 18,743 2,872 Amounts due from related parties 51,835 48,505 7,434 Prepayments and other current assets 17,912 29,152 4,469 Total current assets 116,100 146,149 22,399 Property, equipment and software 36,350 78,401 12,016 Other non-current 17,682 9,744 1,493 TOTAL ASSETS 170,132 234,294 35,908 LIABILITIES Current liabilities: Amounts due to related parties 218,719 270,004 41,380 Accruals and other current liabilities 7,886 11,157 1,710 Short-term borrowings — 49,990 7,661 Current portion of long-term borrowings — 970 149 Total current liabilities 226,605 332,121 50,900 Amounts due to related parties 23,000 29,915 4,585 Long-term borrowings — 51,926 7,958 TOTAL LIABILITIES 249,605 413,962 63,443 For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Total revenue from related parties 130 6,604 16,906 2,591 Net loss (59,582 ) (83,066 ) (100,195 ) (15,355 ) For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Net cash used in operating activities (61,856 ) (87,277 ) (84,862 ) (13,006 ) Net cash generated from (used in) investing activities (113,358 ) 59,281 (68,628 ) (10,518 ) Net cash generated from financing activities 138,695 58,259 161,086 24,688 |
Summary of Significant accoun_3
Summary of Significant accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Property Plant and Equipment Useful Lives | Property and equipment and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Category Estimated Useful Life Machinery and laboratory equipment 5 years Vehicles 4 years Furniture and tools 3-5 Electronic equipment 3 years Computer software 3-5 Leasehold improvements Lesser of lease terms or estimated useful lives of the assets |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets [Abstract] | |
Summary of Prepayment And Other Assets | Prepayments and other current assets consist of the following: As of December 31, 2019 2020 RMB RMB US$ (Note 2) Deductible value-added tax input 13,770 30,961 4,745 Prepayments for CRO and other services 5,427 3,295 505 Deposits 3,959 3,326 510 Others 939 4,836 741 24,095 42,418 6,501 |
Property, Equipment And Softw_2
Property, Equipment And Software (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property Equipment And Software | Property, equipment and software consist of the following: As of December 31, 2019 2020 RMB RMB US$ (Note 2) Machinery and laboratory equipment 20,281 63,172 9,682 Leasehold improvements (a) 5,654 53,405 8,185 Construction in Progress 28,515 28,403 4,353 Vehicles 1,088 1,088 167 Others 1,121 2,940 449 Total property, equipment and software 56,659 149,008 22,836 Less: accumulated depreciation and amortization (8,336 ) (29,925 ) (4,586 ) Property, equipment and software, net 48,323 119,083 18,250 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Summary of Other Non-current Assets | Other non-current As of December 31, 2019 2020 RMB RMB US$ (Note 2) Prepayment for property, equipment and software 23,541 30,398 4,658 |
Accruals and Other Current Li_2
Accruals and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Summary of Accruals And Other Current Liabilities Payable | Accruals and other current liabilities consist of the following: As of December 31, 2019 2020 RMB RMB US$ (Note 2) Salary and welfare payables 6,720 12,119 1,857 Accrued external research and development related expenses 6,942 9,425 1,444 Professional service fees 2,092 15,399 2,360 Rental fees 2,072 2,835 435 Others 340 2,623 402 18,166 42,401 6,498 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings | As of December 31, 2019 2020 RMB RMB US$ (Note 2) Current Short-term borrowings: Bank loans — 49,990 7,661 Current portion of long-term borrowings — 970 149 Total current borrowings — 50,960 7,810 Non-Current Long-term borrowings: Bank loans — 51,926 7,958 Total non-current — 51,926 7,958 Total borrowings — 102,886 15,768 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity [Abstract] | |
Disclosure Details Of Movements In Redeemable Convertible Preferred Stock | The Company’s Preferred Shares activities for the periods presented are summarized below: Mezzanine equity Series A Series B-1 Series B-2 Series C Total RMB RMB RMB RMB RMB Balance as of December 31, 2018 83,404 — — — 83,404 Issuance of Series B-2 — — 439,501 — 439,501 Repurchase of Series A Preferred Shares (11,864 ) — — — (11,864 ) Accretion of Series A Preferred Shares to redemption value 10,794 — — — 10,794 Accretion of Series B-2 — — 26,008 — 26,008 Balance as of December 31, 2019 82,334 — 465,509 547,843 Issuance of Series B-1 — 138,695 — — 138,695 Issuance of Series C Preferred Shares — — — 658,26 5 658,26 5 Accretion of Series A Preferred Shares to redemption value 28,134 — — — 28,134 Accretion of Series B-1 — 3,786 — — 3,786 Accretion of Series B-2 — — 30,290 — 30,290 Accretion of Series C Preferred Shares to redemption value — — — 523 523 Balance as of December 31, 2020 110,468 142,481 495,799 658,78 8 1,407,53 6 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the option activities | The following table sets forth the share options activities for the years ended December 31, 2018, 2019 and 2020: Number of Options Weighted- Average Exercise Price Weighted- Average Grant Date Fair Value Weighted- Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value US$ per option US$ per option RMB per option Years RMB Outstanding at January 1, 2018 532,000 0.30 0.09 0.61 9.69 — Granted 1,375,500 0.30 0.29 1.97 — — Outstanding at January 1, 2019 1,907,500 0.30 0.24 1.59 9.33 3,798 Granted 941,814 1.06 0.38 2.65 — — Forfeited (92,190 ) 0.71 0.30 2.06 — — Outstanding at January 1, 2020 2,757,124 0.55 0.28 1.93 8.67 7,728 Granted 5,198,298 1.65 0.56 3.92 — — Forfeited (545,823 ) 0.71 0.37 2.56 — — Outstanding at December 31, 2020 7,409,599 1.32 0.47 3.28 8.89 112,024 Vested and expected to vest at December 31, 2020 7,409,599 1.32 0.47 3.28 8.89 112,024 Exercisable at December 31, 2020 — — — — — — |
Schedule of the assumptions used to estimate the fair value of the options | The assumptions used to estimate the fair value of the share options granted are as follows: For the year ended December 31, 2018 For the year ended December 31, 2019 For the year ended December 31, 2020 Risk-free interest rate 3.7%-4.0 % 2.9%-3.1 % 1.6%-2.1 % Dividend yield 0 % 0 % 0 % Expected volatility range 55.0%-56.2 % 53.7%-54.3 % 54.9%-58.1 % Exercise multiple 2.20 2.20 2.20-2.80 Contractual life 10 years 10 years 10 years |
Income Tax Expenses (Tables)
Income Tax Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the income tax expense computed by applying the statutory tax rate to loss before income tax and the actual provision for income tax is as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Loss before income tax (60,793 ) (138,664 ) (211,900 ) (32,475 ) Income tax computed at respective applicable tax rate (15,198 ) (32,091 ) (48,606 ) (7,449 ) Research and development super-deduction(a) (6,862 ) (16,996 ) (22,121 ) (3,390 ) Non-deductible 23 346 100 15 Changes in valuation allowance 22,037 48,741 70,627 10,824 Income tax expense — — — — |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2018, 2019 and 2020 are as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Deferred tax assets: Net operating loss carry forward 22,651 70,374 140,905 21,595 Depreciation and amortization of property, equipment and software 1,777 2,795 2,892 443 Gross deferred tax assets 24,428 73,169 143,797 22,038 Less: valuation allowance (24,428 ) (73,169 ) (143,797 ) (22,038 ) Total deferred tax assets, net — — — — |
Summary of Valuation Allowance [Table Text Block] | Movement of the valuation allowance is as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Balance as of January 1 2,391 24,428 73,169 11,214 Addition 22,037 48,741 70,628 10,824 Balance as of December 31 24,428 73,169 143,797 22,038 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted net loss per share for the years ended December 31, 2018, 2019 and 2020 are calculated as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Numerator: Net loss attributable to Gracell Biotechnologies Inc.’s shareholders (60,793 ) (138,664 ) (211,900 ) (32,475 ) Deemed dividend to convertible redeemable preferred shareholders — (25,390 ) — — Accretion of convertible redeemable preferred shares to redemption value (12,199 ) (36,802 ) (62,733 ) (9,614 ) Net loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders (72,992 ) (200,856 ) (274,633 ) (42,089 ) Denominator: Weighted-average number of ordinary shares outstanding—basic and diluted 100,089,552 99,053,363 99,044,776 99,044,776 Net loss per share attributable to Gracell Biotechnologies Inc.’s ordinary shareholders—basic and diluted (0.73 ) (2.03 ) (2.77 ) (0.42 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows: For the years ended December 31, 2018 2019 2020 shares shares shares Convertible redeemable preferred shares 36,567,165 85,779,363 110,230,842 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The Group had the following related party transactions: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Rent Payment: William Wei Cao 500 — — — Payment for in-licensing Unitex Capital Ltd (a) — 1,358 — — Payment for professional service fee Unitex Capital Ltd (b) — — 2,631 381 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum payments under non-cancelable RMB US$ (Note 2) For the years ending: 2021 8,949 1,372 2022 9,712 1,488 2023 6,956 1,066 2024 — — 2025 — — Total 25,617 3,926 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet [table text block] | Balance sheets As of December 31, 2019 2020 RMB RMB US$ (Note 2) ASSETS Current assets: Cash and cash equivalents 236,263 683,565 104,761 Amounts due from related parties 138,695 — — Total current assets 374,958 683,565 104,761 Investments in subsidiaries 41,198 148,654 22,782 Amounts due from related parties 23,000 29,915 4,585 Other non-current — 17,568 2,691 TOTAL ASSETS 439,156 879,702 134,819 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Amounts due to related parties 44,705 45,587 6,986 Accruals and other current liabilities 400 14,452 2,215 Total current liabilities 45,105 60,039 9,201 Convertible loans 138,695 — — TOTAL LIABILITIES 183,800 60,039 9,201 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT (CONTINUED) Mezzanine equity: Series A convertible redeemable preferred shares (US$ 0.0001 par value; 31,343,284 and 31,343,284 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) 82,334 110,468 16,930 Series B-1 — 142,481 21,836 Series B-2 465,509 495,799 75,985 Series C convertible redeemable preferred shares (US$ 0.0001 par value; nil and 61,364,562 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) — 658,788 100,963 Total mezzanine equity 547,843 1,407,536 215,714 Shareholders’ deficit: Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 99,044,776 and 99,044,776 shares issued and outstanding as of December 31, 2019 and 2020, respectively) 68 68 10 Accumulated other comprehensive loss (3,159 ) (23,912 ) (3,665 ) Accumulated deficit (289,396 ) (564,029 ) (86,441 ) Total shareholders’ deficit (292,487 ) (587,873 ) (90,096 ) TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT 439,156 879,702 134,819 |
Condensed Statement of Comprehensive Income [table text block] | Statements of comprehensive loss For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Expenses Research and development expenses — (2,289 ) (1,753 ) (269 ) Administrative expenses — (3,334 ) (13,745 ) (2,106 ) Loss from operations — (5,623 ) (15,498 ) (2,375 ) Interest income — 2,904 2,179 334 Other losses — (21 ) — — Foreign exchange gain (loss), net — — (1,551 ) (238 ) Share of losses of subsidiaries (60,793 ) (135,924 ) (197,030 ) (30,196 ) Loss before income tax (60,793 ) (138,664 ) (211,900 ) (32,475 ) Income tax expense — — — — Net loss (60,793 ) (138,664 ) (211,900 ) (32,475 ) Deemed dividend to convertible redeemable preferred shareholders — (25,390 ) — — Accretion of convertible redeemable preferred shares to redemption value (12,199 ) (36,802 ) (62,733 ) (9,614 ) Net loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders (72,992 ) (200,856 ) (274,633 ) (42,089 ) Other comprehensive loss Foreign currency translation adjustments, net of nil tax — (3,159 ) (20,754 ) (3,181 ) Total comprehensive loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders (72,992 ) (204,015 ) (295,387 ) (45,270 ) |
Condensed Cash Flow Statement [table text block] | Statements of cash flows For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2) Net cash used in operating activities — (5,499 ) (13,309 ) (2,040 ) Net cash used in investing activities — (197,739 ) (312,649 ) (47,916 ) Net cash generated from financing activities — 439,501 792,775 121,498 Effect of exchange rate on cash and cash equivalents — — (19,515 ) (2,991 ) Net increase in cash and cash equivalents — 236,263 447,302 68,551 Cash and cash equivalents at the beginning of year — — 236,263 36,210 Cash and cash equivalents at the end of year — 236,263 683,565 104,761 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Summary of Variable Interest Entities and Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Gracell Biotechnologies Holdings Limited ("Gracell BVI") | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Date of incorporation | May 22, 2018 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Gracell Biotechnologies (HK) Limited | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Date of incorporation | Jun. 7, 2018 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Gracell Bioscience (Shanghai) Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Date of incorporation | Aug. 24, 2018 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Research and development of innovative medicines |
Gracell Biopharmaceuticals, Inc. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Date of incorporation | Feb. 11, 2020 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Research and development of innovative medicines |
Gracell Biomedicine (Shanghai) Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Date of incorporation | Aug. 19, 2020 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Research and development of innovative medicines |
Gracell Biotechnologies (Shanghai) Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Date of incorporation | May 22, 2017 |
Principal activities | Research and development of innovative medicines |
Suzhou Gracell Biotechnologies Co., Ltd. ("Suzhou Gracell") | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Date of incorporation | Apr. 23, 2018 |
Principal activities | Research and development of innovative medicines |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Summary of Financial Statements of the Variable Interest Entity and its Subsidiaries (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Current assets: | |||||
Cash and cash equivalents | ¥ 754,308 | ¥ 312,058 | $ 115,603 | ||
Prepayments and other current assets | 42,418 | 24,095 | 6,501 | ||
Total current assets | 815,469 | 340,353 | 124,976 | ||
Property, equipment and software | 119,083 | 48,323 | 18,250 | ||
Other non-current assets | 30,398 | 23,541 | 4,658 | ||
TOTAL ASSETS | 964,950 | 412,217 | 147,884 | ||
Current liabilities: | |||||
Short-term borrowings | 49,990 | 0 | 7,661 | ||
Current portion of long-term borrowings | 970 | 0 | 149 | ||
Total current liabilities | 93,361 | 18,166 | 14,308 | ||
Long-term borrowings | 51,926 | 0 | 7,958 | ||
TOTAL LIABILITIES | 145,287 | 156,861 | 22,266 | ||
Net loss | (274,633) | $ (42,089) | (200,856) | ¥ (72,992) | |
Net cash used in operating activities | (198,149) | (30,367) | (135,393) | (61,856) | |
Net cash generated from (used in) investing activities | (93,941) | (14,398) | 41,368 | (113,357) | |
Net cash generated from financing activities | 756,467 | 115,933 | 394,796 | 138,695 | |
Variable Interest Entities And Its Subsidaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 49,749 | 42,153 | 7,624 | ||
Short-term investments | 18,743 | 4,200 | 2,872 | ||
Amounts due from related parties | 48,505 | 51,835 | 7,434 | ||
Prepayments and other current assets | 29,152 | 17,912 | 4,469 | ||
Total current assets | 146,149 | 116,100 | 22,399 | ||
Property, equipment and software | 78,401 | 36,350 | 12,016 | ||
Other non-current assets | 9,744 | 17,682 | 1,493 | ||
TOTAL ASSETS | 234,294 | 170,132 | 35,908 | ||
Current liabilities: | |||||
Amounts due to related parties | 270,004 | 218,719 | 41,380 | ||
Accruals and other current liabilities | 11,157 | 7,886 | 1,710 | ||
Short-term borrowings | 49,990 | 0 | 7,661 | ||
Current portion of long-term borrowings | 970 | 0 | 149 | ||
Total current liabilities | 332,121 | 226,605 | 50,900 | ||
Amounts due to related parties | 29,915 | 23,000 | 4,585 | ||
Long-term borrowings | 51,926 | 0 | 7,958 | ||
TOTAL LIABILITIES | 413,962 | 249,605 | $ 63,443 | ||
Total revenue from related parties | 16,906 | 2,591 | 6,604 | 130 | |
Net loss | (100,195) | (15,355) | (83,066) | (59,582) | |
Net cash used in operating activities | (84,862) | (13,006) | (87,277) | (61,856) | |
Net cash generated from (used in) investing activities | (68,628) | (10,518) | 59,281 | (113,358) | |
Net cash generated from financing activities | ¥ 161,086 | $ 24,688 | ¥ 58,259 | ¥ 138,695 |
Summary of Significant accoun_4
Summary of Significant accounting Policies - Additional Information (Detail) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Accounting Policies [Line Items] | ||
Closing foreign exchange rate | 6.5250 | |
Impairment of long lived assets held for sale | ¥ 0 | ¥ 0 |
Assets under capital leases net of accumulated amortization | ¥ 0 | 0 |
Percentage of tax benefits to be realised to be eligible for recognition | 50.00% | |
Defined contribution plan expenses | ¥ 4,290 | ¥ 5,460 |
Percentage appreciation in the foreign currency | 6.50% | 1.30% |
Maximum | ||
Accounting Policies [Line Items] | ||
Estimated lease assets | ¥ 30,000 | |
Estimated lease liabilities | ¥ 20,000 | |
Minimum | ||
Accounting Policies [Line Items] | ||
Estimated lease assets | 20,000 | |
Estimated lease liabilities | 30,000 | |
CHINA | ||
Accounting Policies [Line Items] | ||
Cash and cash equivalents and short term investments | 771,319 | 221,568 |
Outside China [Member] | ||
Accounting Policies [Line Items] | ||
Cash and cash equivalents and short term investments | ¥ 1,731 | ¥ 94,690 |
Assets held under capital leases [Member] | ||
Accounting Policies [Line Items] | ||
Lease term as a percentage of the properties estimated remaining economic useful life | 75.00% | 75.00% |
Present value of minimum lease payments as a percentage of the fair value of the property at the inception of lease | 90.00% | 90.00% |
Summary of Significant accoun_5
Summary of Significant accounting Policies - Summary of Property Plant and Equipment Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Machinery and laboratory equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Furniture and tools | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and tools | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of lease terms or estimated useful lives of the assets |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Summary of Prepayment And Other Assets (Detail)Prepayments and Other Current Assets ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Prepaid Expense and Other Assets [Abstract] | |||
Deductible value-added tax input | ¥ 30,961 | $ 4,745 | ¥ 13,770 |
Prepayments for CRO and other services | 3,295 | 505 | 5,427 |
Deposits | 3,326 | 510 | 3,959 |
Others | 4,836 | 741 | 939 |
Prepaid expense and other assets current | ¥ 42,418 | $ 6,501 | ¥ 24,095 |
Property, Equipment And Softw_3
Property, Equipment And Software - Summary of Property Equipment And Software (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Total property, equipment and software | ¥ 149,008 | $ 22,836 | ¥ 56,659 | |
Less: accumulated depreciation and amortization | (29,925) | (4,586) | (8,336) | |
Property, equipment and software, net | 119,083 | 18,250 | 48,323 | |
Machinery and laboratory equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property, equipment and software | 63,172 | 9,682 | 20,281 | |
Leasehold improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property, equipment and software | [1] | 53,405 | 8,185 | 5,654 |
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property, equipment and software | 28,403 | 4,353 | 28,515 | |
Vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property, equipment and software | 1,088 | 167 | 1,088 | |
Others [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property, equipment and software | ¥ 2,940 | $ 449 | ¥ 1,121 | |
[1] | As of December 31, 2020, Suzhou Gracell has completed the renovation of a new leased laboratory. |
Property, Equipment And Softw_4
Property, Equipment And Software - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expenses | ¥ 21,589 | $ 3,309 | ¥ 5,124 | ¥ 2,992 |
Other Non-Current Assets - Summ
Other Non-Current Assets - Summary of Other Non-current Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Other Assets, Noncurrent [Abstract] | |||
Prepayment for property, equipment and software | ¥ 30,398 | $ 4,658 | ¥ 23,541 |
Accruals And Other Current Li_3
Accruals And Other Current Liabilities - Summary of Accruals And Other Current Liabilities Payable (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Payables and Accruals [Abstract] | |||
Salary and welfare payables | ¥ 12,119 | $ 1,857 | ¥ 6,720 |
Accrued external research and development related expenses | 9,425 | 1,444 | 6,942 |
Professional service fees | 15,399 | 2,360 | 2,092 |
Rental fees | 2,835 | 435 | 2,072 |
Others | 2,623 | 402 | 340 |
Accrued liabilities and other liabilities | ¥ 42,401 | $ 6,498 | ¥ 18,166 |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Short-term borrowings: | |||
Bank loans | ¥ 49,990 | $ 7,661 | ¥ 0 |
Current portion of long-term borrowings | 970 | 149 | 0 |
Total current borrowings | 50,960 | 7,810 | 0 |
Long-term borrowings: | |||
Bank loans | 51,926 | 7,958 | 0 |
Total non-current borrowings | 51,926 | 7,958 | 0 |
Total borrowings | ¥ 102,886 | $ 15,768 | ¥ 0 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020CNY (¥) | Nov. 30, 2020CNY (¥) | Sep. 30, 2020CNY (¥) | Jul. 31, 2020CNY (¥) | Jun. 30, 2020CNY (¥) | May 31, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Sep. 01, 2020CNY (¥) | Jul. 01, 2020CNY (¥) | Jun. 01, 2020CNY (¥) | May 01, 2020CNY (¥) | Jan. 01, 2020CNY (¥) | |
Proceeds from short term bank loan | ¥ 103,008,000 | $ 15,787 | ¥ 10,000,000 | ||||||||||||
Line of credit facility maximum borrowing capacity | ¥ 69,000,000 | ||||||||||||||
Short term debt interest rate terms | one-year loan prime rate plus 0.5% | ||||||||||||||
Term Loan Facility Two [Member] | |||||||||||||||
Line of credit facility maximum borrowing capacity | ¥ 29,000,000 | ||||||||||||||
Bank Of China [Member] | Term loan [Member] | |||||||||||||||
Debt instrument variable interest rate spread | 0.20% | 0.20% | |||||||||||||
Long term debt instrument term | 72 months | 72 months | 72 months | ||||||||||||
Short term debt interest rate terms | five-year loan prime rate plus 0.2% | five-year loan prime rate plus 0.2% | |||||||||||||
Long term line of credit aggregate amount drawn | $ | $ 44,280 | ||||||||||||||
Bank Of China [Member] | Term loan [Member] | Maximum [Member] | |||||||||||||||
Short term debt effective rate of interest | 5.00% | 5.00% | 5.00% | ||||||||||||
Long term debt effective rate of interest | 5.00% | 5.00% | 5.00% | ||||||||||||
Bank Of China [Member] | Term loan [Member] | Minimum [Member] | |||||||||||||||
Short term debt effective rate of interest | 4.85% | 4.85% | 4.85% | ||||||||||||
Long term debt effective rate of interest | 4.85% | 4.85% | 4.85% | ||||||||||||
Bank Of China [Member] | Term Loan Facility Two [Member] | |||||||||||||||
Debt instrument variable interest rate spread | 1.00% | ||||||||||||||
Long term debt instrument term | 60 months | 60 months | 60 months | ||||||||||||
Short term debt interest rate terms | loan prime rate plus 1% | ||||||||||||||
Long term line of credit aggregate amount drawn | ¥ 8,740,000 | ¥ 8,740,000 | |||||||||||||
Long term line of credit aggregate amount repaid | 120,000 | 120,000 | |||||||||||||
Short Term Loan Agreement One [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Debt instrument face value | ¥ 5,000,000 | ||||||||||||||
Proceeds from short term bank loan | ¥ 5,000,000 | ||||||||||||||
Short term loan period | 12 months | ||||||||||||||
Debt instrument variable interest rate spread | 0.50% | ||||||||||||||
Short term debt interest rate terms | one-year loan prime rate plus 0.5% | ||||||||||||||
Short Term Loan Agreement One [Member] | China CITIC Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Debt instrument face value | 5,000,000 | 5,000,000 | |||||||||||||
Proceeds from short term bank loan | ¥ 5,000,000 | ||||||||||||||
Short term loan period | 12 months | ||||||||||||||
Short term debt interest rate terms | one-year loan prime rate | ||||||||||||||
Short Term Loan Agreement One [Member] | China Industrial Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Debt instrument face value | ¥ 9,990,000 | ¥ 9,990,000 | |||||||||||||
Proceeds from short term bank loan | ¥ 9,990,000 | ||||||||||||||
Short term loan period | 12 months | ||||||||||||||
Debt instrument variable interest rate spread | 0.85% | ||||||||||||||
Short term debt interest rate terms | one-year loan prime rate plus 0.85% | ||||||||||||||
Short Term Loan Agreement Two [Member] | Bank Of China [Member] | |||||||||||||||
Short term debt effective rate of interest | 4.85% | 4.85% | 4.85% | ||||||||||||
Long term debt effective rate of interest | 4.85% | 4.85% | 4.85% | ||||||||||||
Short Term Loan Agreement Two [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Debt instrument face value | ¥ 5,000,000 | ||||||||||||||
Proceeds from short term bank loan | ¥ 5,000,000 | ||||||||||||||
Short term loan period | 12 months | ||||||||||||||
Debt instrument variable interest rate spread | 0.15% | ||||||||||||||
Short term debt interest rate terms | one-year loan prime rate plus 0.15% | ||||||||||||||
Short Term Loan Agreement Three [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | Bank Of China [Member] | |||||||||||||||
Short term debt interest rate terms | one-year loan prime rate minus 0.2% | ||||||||||||||
Short Term Loan Agreement Three [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Debt instrument face value | ¥ 5,000,000 | ||||||||||||||
Proceeds from short term bank loan | ¥ 5,000,000 | ||||||||||||||
Short term loan period | 12 months | 12 months | |||||||||||||
Debt instrument variable interest rate spread | 0.20% | ||||||||||||||
Short Term Loan Agreement Four [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Debt instrument face value | ¥ 5,000,000 | ||||||||||||||
Proceeds from short term bank loan | ¥ 5,000,000 | ||||||||||||||
Short term loan period | 12 months | ||||||||||||||
Short term debt interest rate terms | one-year loan prime rate | ||||||||||||||
Short Term Loan Agreement Five [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Debt instrument face value | ¥ 5,000,000 | ¥ 5,000,000 | ¥ 5,000,000 | ||||||||||||
Debt instrument variable interest rate spread | 0.50% | ||||||||||||||
Short Term Loan Agreement Six [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | |||||||||||||||
Short term loan period | 12 months | ||||||||||||||
Debt instrument variable interest rate spread | 0.50% | ||||||||||||||
Short term debt interest rate terms | one-year loan prime rate plus 0.5% | ||||||||||||||
Short Term Loan Agreements [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | Maximum [Member] | |||||||||||||||
Short term debt effective rate of interest | 4.35% | 4.35% | 4.35% | ||||||||||||
Long term debt effective rate of interest | 4.35% | 4.35% | 4.35% | ||||||||||||
Short Term Loan Agreements [Member] | China Construction Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | Minimum [Member] | |||||||||||||||
Short term debt effective rate of interest | 3.65% | 3.65% | 3.65% | ||||||||||||
Long term debt effective rate of interest | 3.65% | 3.65% | 3.65% |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) ¥ in Thousands | Jan. 03, 2019shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2020$ / sharesshares | Oct. 14, 2020$ / sharesshares | Mar. 06, 2020shares |
Class of Stock [Line Items] | |||||||
Common stock, Shares authorized | 500,000,000 | 500,000,000 | |||||
Common stock, Par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Common stock shares issued | 99,044,776 | 99,044,776 | |||||
Common stock, shares, outstanding | 99,044,776 | 99,044,776 | |||||
Stockholders equity split | 1:10 | ||||||
William Wei Cao [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock shares issued | 9,800,000 | ||||||
Proceeds from common stock issued | ¥ | ¥ 2,150 | ||||||
Shanghai Guidance Capital Ltd And Suzhou Tonghe Venture Investment Partnership II [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock shares issued | 208,955 | ||||||
Proceeds from common stock issued | ¥ | ¥ 200 | ||||||
Shanghai Guidance Capital Ltd [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchased during period, shares | 104,478 | ||||||
OrbiMed Asia Partners III LP King Star Med LP LAV Granite Limited LAV Biosciences Fund V LP Victory Treasure Limited and OrbiMed Asia Partners III LP [Member] | |||||||
Class of Stock [Line Items] | |||||||
Temporary Equity, Shares Issued | 1,044,776 | ||||||
Michelia Figo Holding Limited [Member] | |||||||
Class of Stock [Line Items] | |||||||
Temporary Equity, Shares Issued | 5,910,000 | ||||||
Temporary Equity, Par or Stated Value Per Share | $ / shares | $ 1 |
Convertible Redeemable Prefer_3
Convertible Redeemable Preferred Shares - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Oct. 20, 2020CNY (¥)shares | Oct. 20, 2020USD ($)shares | Mar. 06, 2020CNY (¥) | Feb. 22, 2019CNY (¥)shares | Jan. 03, 2019USD ($)shares | Aug. 08, 2017CNY (¥)shares | Aug. 08, 2017USD ($)$ / sharesshares | Sep. 09, 2020shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Oct. 20, 2020$ / shares | Feb. 22, 2019$ / shares | Jan. 01, 2019$ / shares | Aug. 14, 2018CNY (¥)shares | Aug. 14, 2018USD ($)$ / sharesshares |
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Proceeds from redeemable convertible preferred stock | ¥ 795,420 | $ 121,903 | ¥ 439,501 | ||||||||||||||||
Shares of one class converted into another conversion ratio | 1 | 1 | |||||||||||||||||
Tenure of the founder of the company in the capacity of chairman or president or in any other capacity | 5 years | 5 years | 5 years | 5 years | |||||||||||||||
Stock issuance stock | ¥ 3,144 | $ 482 | |||||||||||||||||
Accretion of convertible redeemable preferred shares to redemption value | ¥ 62,733 | $ 9,614 | ¥ 36,802 | ¥ 12,199 | |||||||||||||||
Variable Interest Entities [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Stock shares repurchased during the period shares | shares | 104,478 | ||||||||||||||||||
Payments for the repurchase of redeemable convertible preferred stock and common stock | 44,705 | $ 6,657 | |||||||||||||||||
Deemed Dividend To The Holders Of Redeemable Convertible Preferred Stock And Equity Stock | ¥ | ¥ 32,840 | ||||||||||||||||||
Variable Interest Entities [Member] | Convertible Loan Agreement [Member] | Convertible Debt [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Debt instrument face value | ¥ 138,695 | $ 22,000 | |||||||||||||||||
Series A Redeemable Convertible Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Temporary equity stock shares issued during the period shares | shares | 3,656,716 | 3,656,716 | |||||||||||||||||
Temporary equity sale or issue price per share | $ / shares | $ 3.032 | ||||||||||||||||||
Proceeds from redeemable convertible preferred stock | ¥ 69,800 | $ 11,087 | |||||||||||||||||
Shares of one class converted into another number | shares | 31,343,284 | 31,343,284 | |||||||||||||||||
Shares converted from one class to another conversion price | $ / shares | $ 0.3032 | ||||||||||||||||||
Temporary equity liquidation preference per share as a percentage of issue price | 150.00% | 150.00% | 150.00% | 150.00% | 150.00% | 150.00% | |||||||||||||
Temporary equity redemption price as percentage of issue price per share | 150.00% | 150.00% | 150.00% | 150.00% | 150.00% | 150.00% | |||||||||||||
Accretion of convertible redeemable preferred shares to redemption value | ¥ | ¥ 28,134 | ¥ 10,794 | |||||||||||||||||
Series A Redeemable Convertible Preferred Shares [Member] | Modification Of Redeemable Convertible Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Reclassification from permanent equity to temporary equity | ¥ | ¥ 625 | ||||||||||||||||||
Series A Redeemable Convertible Preferred Shares [Member] | Variable Interest Entities [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Temporary equity shares repurchased during the period shares | shares | 522,388 | ||||||||||||||||||
Series B Redeemable Convertible Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Temporary equity liquidation preference per share as a percentage of issue price | 140.00% | 140.00% | 140.00% | 140.00% | 140.00% | 140.00% | |||||||||||||
Temporary equity redemption price as percentage of issue price per share | 140.00% | 140.00% | 140.00% | 140.00% | 140.00% | 140.00% | |||||||||||||
Series B Redeemable Convertible Preferred Shares [Member] | Series B Two Redeemable Convertible Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Temporary equity stock shares issued during the period shares | shares | 59,327,653 | ||||||||||||||||||
Temporary equity sale or issue price per share | $ / shares | $ 1.0619 | ||||||||||||||||||
Proceeds from redeemable convertible preferred stock | ¥ 439,501 | $ 63,000 | |||||||||||||||||
Series C One Redeemable Convertible Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Temporary equity stock shares issued during the period shares | shares | 61,364,562 | 61,364,562 | |||||||||||||||||
Temporary equity sale or issue price per share | $ / shares | $ 1.635331 | ||||||||||||||||||
Proceeds from redeemable convertible preferred stock | $ | $ 100,351 | ||||||||||||||||||
Temporary equity liquidation preference per share as a percentage of issue price | 100.00% | ||||||||||||||||||
Stock issuance stock | ¥ 13,386 | $ 2,000 | |||||||||||||||||
Temporary equity redemption price as percentage of issue price per share | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||||||||||
Series C One Redeemable Convertible Preferred Shares [Member] | Variable Interest Entities [Member] | Warrant Agreement [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Class of warrants or rights number of securities called by warrants or rights | shares | 21,735,721 | 21,735,721 | |||||||||||||||||
Class of warrants or rights exercise price per share | $ / shares | $ 1.0122 | ||||||||||||||||||
Series B 1 convertible redeemable preferred shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Number of shares issued in exchange for Convertible debt | shares | 21,735,721 | ||||||||||||||||||
Series A Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Percentage of original issue price on each preferred share | 150.00% | ||||||||||||||||||
Annual compound interest rate on the original issue price on each preferred share accrued | (8.00%) | ||||||||||||||||||
Change in fair value of preferred shares after modification | ¥ | ¥ 1,284 | ¥ 9,055 | |||||||||||||||||
Series A Preferred Shares [Member] | Maximum [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Fair Value of Shares oustanding | ¥ | 1,760 | ||||||||||||||||||
Series A Preferred Shares [Member] | Minimum [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Fair Value of Shares oustanding | ¥ | ¥ 9,055 | ||||||||||||||||||
Series B 1 Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Change in fair value of preferred shares after modification | ¥ | 82 | ||||||||||||||||||
Series B 2 Preferred Shares [Member] | |||||||||||||||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||||||||||||||
Change in fair value of preferred shares after modification | ¥ | ¥ 394 |
Convertible Redeemable Prefer_4
Convertible Redeemable Preferred Shares - Disclosure Details Of Movements In Redeemable Convertible Preferred Stock (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Convertible Redeemable Preferred Stock [Line Items] | ||||
Beginning balance | ¥ 547,843 | ¥ 83,404 | ||
Issuance of Series Preferred Shares | 138,695 | 439,501 | ||
Repurchase of Series A Preferred Shares | (11,864) | |||
Accretion of Series Preferred Shares to redemption value | 62,733 | $ 9,614 | 36,802 | ¥ 12,199 |
Ending balance | 1,407,536 | 215,714 | 547,843 | 83,404 |
Series A Redeemable Convertible Preferred Shares [Member] | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Beginning balance | 82,334 | 83,404 | ||
Repurchase of Series A Preferred Shares | (11,864) | |||
Accretion of Series Preferred Shares to redemption value | 28,134 | 10,794 | ||
Ending balance | 110,468 | 16,930 | 82,334 | ¥ 83,404 |
Series B One Redeemable Convertible Preferred Shares [Member] | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Beginning balance | 0 | |||
Issuance of Series Preferred Shares | 138,695 | |||
Accretion of Series Preferred Shares to redemption value | 3,786 | |||
Ending balance | 142,481 | 21,836 | 0 | |
Series B Two Redeemable Convertible Preferred Shares [Member] | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Beginning balance | 465,509 | |||
Issuance of Series Preferred Shares | 439,501 | |||
Accretion of Series Preferred Shares to redemption value | 30,290 | 26,008 | ||
Ending balance | 495,799 | 75,985 | 465,509 | |
Series C Redeemable Convertible Preferred Shares [Member] | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Beginning balance | 0 | |||
Issuance of Series Preferred Shares | 658,265 | |||
Accretion of Series Preferred Shares to redemption value | 523 | |||
Ending balance | ¥ 658,788 | $ 100,963 | ¥ 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of the Option Activities (Detail) | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)$ / shares¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2020$ / shares | |
Share-based Payment Arrangement [Abstract] | |||||||
Number of Options, Outstanding at beginning balance | shares | 2,757,124 | 1,907,500 | 532,000 | 532,000 | |||
Number of Options, Granted | shares | 5,198,298 | 941,814 | 1,375,500 | 1,375,500 | |||
Number of Options, Forfeited | shares | (545,823) | (92,190) | |||||
Number of Options, Outstanding at ending balance | shares | 7,409,599 | 2,757,124 | 1,907,500 | 1,907,500 | |||
Number of options, Vested and expected to vest | shares | 7,409,599 | 7,409,599 | |||||
Number of options, Exercisable | shares | |||||||
Weighted Average Exercise Price, Outstanding at beginning balance | $ / shares | $ 0.55 | $ 0.30 | $ 0.30 | ||||
Weighted Average Exercise Price, Granted | $ / shares | 1.65 | 1.06 | 0.30 | ||||
Weighted Average Exercise Price, Forfeited | $ / shares | 0.71 | 0.71 | |||||
Weighted Average Exercise Price, Outstanding at ending balance | $ / shares | 1.32 | 0.55 | 0.30 | ||||
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | $ 1.32 | ||||||
Weighted average exercise price, Exercisable | $ / shares | |||||||
Weighted-Average Grant Date Fair Value, Outstanding at beginning balance | (per share) | ¥ 1.93 | 0.28 | ¥ 1.59 | 0.24 | ¥ 0.61 | 0.09 | |
Weighted-Average Grant Date Fair Value, Granted | (per share) | 3.92 | 0.56 | 2.65 | 0.38 | 1.97 | 0.29 | |
Weighted-Average Grant Date Fair Value, Forfeited | (per share) | 2.56 | 0.37 | 2.06 | 0.30 | |||
Weighted-Average Grant Date Fair Value, Outstanding at ending balance | (per share) | 3.28 | $ 0.47 | ¥ 1.93 | $ 0.28 | ¥ 1.59 | $ 0.24 | |
Weighted-Average Grant Date Fair Value, Vested and expected to vest | (per share) | 3.28 | $ 3.28 | 0.47 | ||||
Weighted-Average Grant Date Fair Value, Exercisable | (per share) | |||||||
Weighted Average Remaining Contractual Term, Outstanding at bagging balance (In Years) | 8 years 10 months 20 days | 8 years 8 months 1 day | 9 years 8 months 8 days | 9 years 8 months 8 days | |||
Weighted Average Remaining Contractual Term, Granted | |||||||
Weighted Average Remaining Contractual Term, Forfeited | |||||||
Weighted Average Remaining Contractual Term, Outstanding at ending balance | 8 years 10 months 20 days | 8 years 8 months 1 day | 9 years 8 months 8 days | 9 years 8 months 8 days | |||
Weighted Average Remaining Contractual Term, Vested and expected to vest | 8 years 10 months 20 days | ||||||
Weighted Average Remaining Contractual Term, Exercisable | |||||||
Aggregate Intrinsic Value, Outstanding at bagging balance | ¥ 7,728 | ¥ 3,798 | |||||
Aggregate Intrinsic Value, Granted | (per share) | |||||||
Aggregate Intrinsic Value, Forfeited | ¥ | |||||||
Aggregate Intrinsic Value, Outstanding at ending balance | ¥ | 112,024 | ¥ 7,728 | ¥ 3,798 | ||||
Aggregate Intrinsic Value, Vested and expected to vest | ¥ | 112,024 | $ 112,024 | |||||
Aggregate Intrinsic Value, Exercisable | ¥ |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Jul. 31, 2020shares | Dec. 31, 2019USD ($) | Apr. 15, 2019shares | Dec. 31, 2018USD ($) | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||||
Share based compensation by share based payment arrangement exercise price per share of stock options granted during the period | $ / shares | $ 1.65 | $ 1.06 | $ 0.30 | ||||||||||
Share based compensation by share based payment arrangement number of options granted during the period | 5,198,298 | 5,198,298 | 941,814 | 941,814 | 1,375,500 | 1,375,500 | |||||||
Share based compensation by share based payment arrangement unrecognised compensation related to unvested stock options | ¥ 16,017 | ¥ 2,756 | ¥ 16,017 | ¥ 2,756 | ¥ 2,375 | $ 2,287 | $ 401 | $ 350 | |||||
Share based compensation by share based payment arrangement unrecognised compensation weighted average period of recognition | 3 years 2 months 4 days | 3 years 2 months 4 days | 2 years 10 months 6 days | 2 years 10 months 6 days | 3 years 5 months 19 days | 3 years 5 months 19 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 3.00% | ||||||||||||
Share Based Compensation By Share Based Payment Arrangement Additional Number Of Shares Available For Issuance As Percentage Of Outstanding Stock Maximum | 1.00% | 1.00% | 1.00% | ||||||||||
Post Completion Of IPO [Member] | |||||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||||
Allocated share based compensation expense | ¥ 8,315 | $ 1,195 | ¥ 2,579 | $ 380 | ¥ 657 | $ 98 | |||||||
Restated And Amended Employee Stock Option Plan Two Thousand And Nineteen [Member] | |||||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||||
Common stock shares reserved for future issuance | 4,388,060 | ||||||||||||
Share based compensation by share based payment arrangement exercise price per share of stock options granted during the period | $ / shares | $ 1.65 | $ 1.06 | $ 0.30 | ||||||||||
Share based compensation by share based payment arrangement number of options granted during the period | 5,198,298 | 5,198,298 | 941,814 | 941,814 | 1,375,500 | 1,375,500 | |||||||
Restated And Amended Employee Stock Option Plan Two Thousand And Nineteen [Member] | Maximum [Member] | |||||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||||
Share based compensation by share based payment arrangement expiration term | 10 years | ||||||||||||
Second Amended and Restated Employee Stock Option Plan [Member] | Maximum [Member] | |||||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,388,060 | ||||||||||||
Third Amended And Restated Employee Stock Option Plan [Member] | |||||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||||
Common stock shares reserved for future issuance | 10,216,234 | 10,216,234 | 10,216,234 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule Of Share Based Payment Award Stock Options Valuation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Risk-free interest rate minimum | 1.60% | 2.90% | 3.70% |
Risk-free interest rate maximum | 2.10% | 3.10% | 4.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility range minimum | 54.90% | 53.70% | 55.00% |
Expected volatility range maximum | 58.10% | 54.30% | 56.20% |
Exercise multiple | 2.20 | 2.20 | |
Contractual life | 10 years | 10 years | 10 years |
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Exercise multiple | 2.80 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Exercise multiple | 2.20 |
Income Tax Expenses - Summary o
Income Tax Expenses - Summary of Reconciliation Between the Income Tax Expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Loss before income tax | ¥ (211,900) | $ (32,475) | ¥ (138,664) | ¥ (60,793) |
Income tax computed at respective applicable tax rate | (48,606) | (7,449) | (32,091) | (15,198) |
Research and development super-deduction | (22,121) | (3,390) | (16,996) | (6,862) |
Non-deductible expenses | 100 | 15 | 346 | 23 |
Changes in valuation allowance | 70,627 | 10,824 | ¥ 48,741 | 22,037 |
Income tax expenses | ¥ 0 | $ 0 |
Income Tax Expenses - Details o
Income Tax Expenses - Details of Tax Effects of Temporary Differences that Give Rise to the Deferred Tax Balances (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Deferred tax assets | ||||||
Net operating loss carry forward | ¥ 140,905 | $ 21,595 | ¥ 70,374 | ¥ 22,651 | ||
Depreciation and amortization of property, equipment and software | 2,892 | 443 | 2,795 | 1,777 | ||
Gross deferred tax assets | 143,797 | 22,038 | 73,169 | 24,428 | ||
Less: valuation allowance | (143,797) | $ (22,038) | ¥ (73,169) | $ (11,214) | ¥ (24,428) | ¥ (2,391) |
Total deferred tax assets, net |
Income Tax Expenses - Disclosur
Income Tax Expenses - Disclosure of Movement of the Valuation Allowance (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Valuation Allowance [Line Items] | ||||
Balance as of January 1 | ¥ 73,169 | $ 11,214 | ¥ 24,428 | ¥ 2,391 |
Addition | 70,628 | 10,824 | 48,741 | 22,037 |
Balance as of December 31 | ¥ 143,797 | $ 22,038 | ¥ 73,169 | ¥ 24,428 |
Income Tax Expenses - Additiona
Income Tax Expenses - Additional Information (Detail) - CNY (¥) ¥ in Thousands | Jan. 01, 2008 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | |
PRC Country [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Statutory Income Tax Rate | 25.00% | ||||
Tax Reduction Percentage | 50.00% | ||||
PRC Country [Member] | Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax Reduction Percentage | 75.00% | ||||
PRC Country [Member] | Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax Reduction Percentage | 50.00% | ||||
HONG KONG | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Applicable Tax rate | 16.50% | ||||
Assessable Profits | ¥ 0 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Earning Per Shares Basic and Diluted (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Gracell Biotechnologies Inc.'s shareholders | ¥ (211,900) | $ (32,475) | ¥ (138,664) | ¥ (60,793) |
Deemed dividend to convertible redeemable preferred shareholders | 0 | 0 | (25,390) | |
Accretion of convertible redeemable preferred shares to redemption value | (62,733) | (9,614) | (36,802) | (12,199) |
Net loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | ¥ (274,633) | $ (42,089) | ¥ (200,856) | ¥ (72,992) |
Weighted-average number of ordinary shares outstanding—basic and diluted | 99,044,776 | 99,044,776 | 99,053,363 | 100,089,552 |
Net loss per share attributable to Gracell Biotechnologies Inc.'s ordinary shareholders—basic and diluted | (per share) | ¥ (2.77) | $ (0.42) | ¥ (2.03) | ¥ (0.73) |
Net Loss Per Share - Summary _2
Net Loss Per Share - Summary of Antidilutive Securities Excluded From Computation of Earnings Per Share Amount (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Convertible Redeemable Preferred Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible redeemable preferred shares | 110,230,842 | 85,779,363 | 36,567,165 |
Related Party Transactions - Sc
Related Party Transactions - Schedule Of Related Party Transactions (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
William Wei Cao [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | ¥ 500 | |||
Unitex Capital Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | ¥ 1,358 | |||
Related Party Transaction, Expenses from Transactions with Related Party | ¥ 2,631 | $ 381 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Payments Of Professional Service Fee | ¥ 2,631 | ||
William Wei Cao [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | ¥ 500 | ||
Unitex Capital Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | ¥ 1,358 | ||
Chief Executive Officer [Member] | William Wei Cao [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of Common Ownership or Management Control Relationships | Founder, CEO and a principal shareholder of the Company | ||
Controller [Member] | Unitex Capital Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Nature of Common Ownership or Management Control Relationships | An entity controlled by Founder |
Commitments And Contingencies -
Commitments And Contingencies - Summary of Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) - Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
For the years ending: | ||
2021 | ¥ 8,949 | $ 1,372 |
2022 | 9,712 | 1,488 |
2023 | 6,956 | 1,066 |
2024 | ||
2025 | ||
Total | ¥ 25,617 | $ 3,926 |
Commitments And Contingencies_2
Commitments And Contingencies - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | ¥ 11,536 | ¥ 11,104 | ¥ 3,145 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Minimum percentage of profit allocated to general reserve fund | 10.00% |
Maximum threshold percentage of general reserve fund to registered capital | 50.00% |
Percentage of annual appropriations after-tax income prior to payment of dividends | 10.00% |
Percentage of threshold exceeded on Company subsidiaries Net asset | 25.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Mar. 30, 2021USD ($) | Mar. 15, 2021$ / sharesshares | Jan. 12, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019shares | Dec. 31, 2018CNY (¥)shares |
Subsequent Event [Line Items] | ||||||||
Share based compensation by share based payment arrangement number of options granted during the period | 5,198,298 | 5,198,298 | 941,814 | 1,375,500 | ||||
Proceeds from short term bank loan | ¥ 103,008 | $ 15,787 | ¥ 10,000 | |||||
Subsequent Event [Member] | IPO [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from Issuance Initial Public Offering | $ | $ 240,000 | |||||||
Subsequent Event [Member] | IPO [Member] | American Depositary Shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Temporary Equity, Shares Issued | 11,000,000 | |||||||
Temporary Equity, Par or Stated Value Per Share | $ / shares | $ 19 | |||||||
Subsequent Event [Member] | Over-Allotment Option [Member] | American Depositary Shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Temporary Equity, Shares Issued | 1,650,000 | |||||||
Subsequent Event [Member] | 2020 Plan [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share based compensation by share based payment arrangement number of options granted during the period | 298,800 | |||||||
Weighted Average Price of Shares | $ / shares | $ 23.2 | |||||||
Subsequent Event [Member] | Series A Preferred Shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Temporary Equity, Shares Outstanding | 31,343,284 | |||||||
Conversion of Stock, Shares Converted | 31,343,284 | |||||||
Subsequent Event [Member] | Series B 1 Preferred Shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Temporary Equity, Shares Outstanding | 21,735,721 | |||||||
Conversion of Stock, Shares Converted | 21,735,721 | |||||||
Subsequent Event [Member] | Series B 2 Preferred Shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Temporary Equity, Shares Outstanding | 59,327,653 | |||||||
Conversion of Stock, Shares Converted | 59,327,653 | |||||||
Subsequent Event [Member] | Series C Preferred Shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Temporary Equity, Shares Outstanding | 61,364,562 | |||||||
Conversion of Stock, Shares Converted | 61,364,562 | |||||||
Short Term Loan Agreement One [Member] | China Industrial Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt instrument face value | ¥ | ¥ 9,990 | ¥ 9,990 | ||||||
Proceeds from short term bank loan | ¥ | ¥ 9,990 | |||||||
Short term loan period | 12 months | |||||||
Short Term Loan Agreement One [Member] | China Industrial Bank [Member] | Suzhou Gracell Biotechnologies Co Ltd Suzhou Gracell [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt instrument face value | $ | $ 10,000 | |||||||
Proceeds from short term bank loan | $ | $ 10,000 | |||||||
Short term loan period | 12 years |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company - Condensed Financial Information of Parent Company (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 754,308 | $ 115,603 | ¥ 312,058 | ||
Total current assets | 815,469 | 124,976 | 340,353 | ||
Other non-current assets | 30,398 | 4,658 | 23,541 | ||
TOTAL ASSETS | 964,950 | 147,884 | 412,217 | ||
Current liabilities: | |||||
Total current liabilities | 93,361 | 14,308 | 18,166 | ||
TOTAL LIABILITIES | 145,287 | 22,266 | 156,861 | ||
Shareholders' deficit: | |||||
Accumulated other comprehensive loss | (23,912) | (3,665) | (3,159) | ||
Accumulated deficit | (564,029) | (86,441) | (289,396) | ||
Total shareholders' deficit | (587,873) | (90,096) | (292,487) | ¥ (81,021) | ¥ (8,029) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | 964,950 | 147,884 | 412,217 | ||
Parent Company [member] | |||||
Current assets: | |||||
Cash and cash equivalents | 683,565 | 104,761 | 236,263 | ||
Amounts due from related parties | 138,695 | ||||
Total current assets | 683,565 | 104,761 | 374,958 | ||
Investments in subsidiaries | 148,654 | 22,782 | 41,198 | ||
Amounts due from related parties | 29,915 | 4,585 | 23,000 | ||
Other non-current assets | 17,568 | 2,691 | |||
TOTAL ASSETS | 879,702 | 134,819 | 439,156 | ||
Current liabilities: | |||||
Amounts due to related parties | 45,587 | 6,986 | 44,705 | ||
Accruals and other current liabilities | 14,452 | 2,215 | 400 | ||
Total current liabilities | 60,039 | 9,201 | 45,105 | ||
Convertible loans | 138,695 | ||||
TOTAL LIABILITIES | 60,039 | 9,201 | 183,800 | ||
Mezzanine equity: | |||||
Total mezzanine equity | 1,407,536 | 215,714 | 547,843 | ||
Shareholders' deficit: | |||||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 99,044,776 and 99,044,776 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 68 | 10 | 68 | ||
Accumulated other comprehensive loss | (23,912) | (3,665) | (3,159) | ||
Accumulated deficit | (564,029) | (86,441) | (289,396) | ||
Total shareholders' deficit | (587,873) | (90,096) | (292,487) | ||
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | 879,702 | 134,819 | 439,156 | ||
Parent Company [member] | Series A convertible redeemable preferred shares [member] | |||||
Mezzanine equity: | |||||
Total mezzanine equity | 110,468 | 16,930 | 82,334 | ||
Parent Company [member] | Series B 1 convertible redeemable preferred shares [Member] | |||||
Mezzanine equity: | |||||
Total mezzanine equity | 142,481 | 21,836 | |||
Parent Company [member] | Series B 2 convertible redeemable preferred shares [member] | |||||
Mezzanine equity: | |||||
Total mezzanine equity | 495,799 | 75,985 | ¥ 465,509 | ||
Parent Company [member] | Series C convertible redeemable preferred shares [Member] | |||||
Mezzanine equity: | |||||
Total mezzanine equity | ¥ 658,788 | $ 100,963 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company - Condensed Financial Information Of Parent Company (Parenthetical) (Detail) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, Par or stated value per share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common stock shares issued | 99,044,776 | 99,044,776 |
Common stock, shares, outstanding | 99,044,776 | 99,044,776 |
Parent Company [member] | ||
Common stock, Par or stated value per share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common stock shares issued | 99,044,776 | 99,044,776 |
Common stock, shares, outstanding | 99,044,776 | 99,044,776 |
Parent Company [member] | Series A convertible redeemable preferred shares [member] | ||
Temporary Equity, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Temporary Equity, Shares Authorized | 31,343,284 | 31,343,284 |
Temporary Equity, Shares Issued | 31,343,284 | 31,343,284 |
Temporary Equity, Shares Outstanding | 31,343,284 | 31,343,284 |
Parent Company [member] | Series B 1 convertible redeemable preferred shares [Member] | ||
Temporary Equity, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Temporary Equity, Shares Authorized | 21,735,721 | 0 |
Temporary Equity, Shares Issued | 21,735,721 | 0 |
Temporary Equity, Shares Outstanding | 21,735,721 | 0 |
Parent Company [member] | Series B 2 convertible redeemable preferred shares [member] | ||
Temporary Equity, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Temporary Equity, Shares Authorized | 59,327,653 | 59,327,653 |
Temporary Equity, Shares Issued | 59,327,653 | 59,327,653 |
Temporary Equity, Shares Outstanding | 59,327,653 | 59,327,653 |
Parent Company [member] | Series C convertible redeemable preferred shares [Member] | ||
Temporary Equity, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Temporary Equity, Shares Authorized | 61,364,562 | 0 |
Temporary Equity, Shares Issued | 61,364,562 | 0 |
Temporary Equity, Shares Outstanding | 61,364,562 | 0 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company - Condensed Statement Of Comprehensive Income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Expenses | ||||
Research and development expenses | ¥ (168,830) | $ (25,874) | ¥ (119,218) | ¥ (52,243) |
Administrative expenses | (45,566) | (6,983) | (27,362) | (10,261) |
Loss from operations | (214,396) | (32,857) | (146,580) | (62,504) |
Interest income | 2,870 | 440 | 3,932 | 1,435 |
Other losses | (4,707) | (721) | (1,449) | (256) |
Foreign exchange gain (loss), net | (2,914) | (447) | 2,556 | |
Loss before income tax | (211,900) | (32,475) | (138,664) | (60,793) |
Income tax expense | 0 | 0 | ||
Net loss | (211,900) | (32,475) | (138,664) | (60,793) |
Deemed dividend to convertible redeemable preferred shareholders | 0 | 0 | (25,390) | |
Accretion of convertible redeemable preferred shares to redemption value | (62,733) | (9,614) | (36,802) | (12,199) |
Net loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | (274,633) | (42,089) | (200,856) | (72,992) |
Other comprehensive loss | ||||
Foreign currency translation adjustments, net of nil tax | (20,753) | (3,181) | (3,159) | |
Total comprehensive loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | (295,386) | (45,270) | (204,015) | (72,992) |
Parent Company [member] | ||||
Expenses | ||||
Research and development expenses | (1,753) | (269) | (2,289) | |
Administrative expenses | (13,745) | (2,106) | (3,334) | |
Loss from operations | (15,498) | (2,375) | (5,623) | |
Interest income | 2,179 | 334 | 2,904 | |
Other losses | (21) | |||
Foreign exchange gain (loss), net | (1,551) | (238) | ||
Share of losses of subsidiaries | (197,030) | (30,196) | (135,924) | (60,793) |
Loss before income tax | (211,900) | (32,475) | (138,664) | (60,793) |
Income tax expense | ||||
Net loss | (211,900) | (32,475) | (138,664) | (60,793) |
Deemed dividend to convertible redeemable preferred shareholders | (25,390) | |||
Accretion of convertible redeemable preferred shares to redemption value | (62,733) | (9,614) | (36,802) | (12,199) |
Net loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | (274,633) | (42,089) | (200,856) | (72,992) |
Other comprehensive loss | ||||
Foreign currency translation adjustments, net of nil tax | (20,754) | (3,181) | (3,159) | |
Total comprehensive loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders | ¥ (295,387) | $ (45,270) | ¥ (204,015) | ¥ (72,992) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company - Condensed Cash Flow Statement (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash used in operating activities | ¥ (198,149) | $ (30,367) | ¥ (135,393) | ¥ (61,856) |
Net cash generated from (used in) investing activities | (93,941) | (14,398) | 41,368 | (113,357) |
Net cash generated from financing activities | 756,467 | 115,933 | 394,796 | 138,695 |
Net increase (decrease) in cash and cash equivalents | 442,250 | 67,778 | 300,168 | (36,518) |
Cash and cash equivalents at the beginning of year | 312,058 | 47,825 | 11,890 | 48,408 |
Cash and cash equivalents at the end of year | 754,308 | 115,603 | 312,058 | ¥ 11,890 |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash used in operating activities | (13,309) | (2,040) | (5,499) | |
Net cash generated from (used in) investing activities | (312,649) | (47,916) | (197,739) | |
Net cash generated from financing activities | 792,775 | 121,498 | 439,501 | |
Effect of exchange rate on cash and cash equivalents | (19,515) | (2,991) | ||
Net increase (decrease) in cash and cash equivalents | 447,302 | 68,551 | 236,263 | |
Cash and cash equivalents at the beginning of year | 236,263 | 36,210 | ||
Cash and cash equivalents at the end of year | ¥ 683,565 | $ 104,761 | ¥ 236,263 |