Burning Rock Biotech Limited Q2 FY2023 earnings call

• Goal for 2023: Profitability (breakeven excluding R&D in a quarter), continued revenue growth with profitability, leading position in MCED. - Q2 2023 result: Non-GAAP gross profit minus SG&A was RMB 7.6 million, first quarter breakeven in operating history. - Volume trends: In-hospital model volume grew 72% year-on-year, overall volume 33% year-on-year; sequential growth: in-hospital 24%, overall 19%. - Pharma segment: Revenue grew 46%, contract value signed in first half of 2023 grew 46%. - Cash balance: Plan for RMB 400 million outflow in 2023, first half had RMB 199 million, R&D clinical programs on track.

Therapy selection: In-hospital model growth 44% year-on-year. MRD: Launched installed personalized MRD in top hospitals end of May 2023, impact expected in Q4 2023. Biopharma: Contract value of new projects 43% year-on-year growth in the first half of 2023, revenue 46% increase. MCED: Several big studies like PREVENT, PREDICT and PRESCIENT clinical trials ongoing, setting solid base for MCED data.

• Goal to breakeven excluding R&D in 2023 quarter. - Mild revenue increase expected in 2023. - Continued leading position in MCED with focus on R&D there. - Optimistic on biopharma growth with new MRD platform and international orders.

Industry-wide disturbance in China's healthcare industry since end of July, central lab channel more vulnerable.

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