 BEIJING, Aug. 06, 2020 GLOBE NEWSWIRE -- Genetron Holdings Limited Genetron Health or the Company Nasdaq: GTH, a leading precision oncology company in China that specializes in offering molecular profiling tests, today announced its unaudited financial results for the second quarter ended June 30, 2020. Second Quarter 2020 Unaudited Financial and Operating Highlights Recorded total revenue of RMB101.7 million for the second quarter 2020, representing a 40.3 increase over the same period of 2019. Reported diagnosis and monitoring revenue of RMB 93.9 million for the second quarter 2020, representing a 52.1 increase from the same period of 2019. Reported gross margin improved to 63.1 for the second quarter 2020, compared to 47.8 in the same period of 2019. Presented data at the American Association for Cancer Research AACR Virtual Annual Meeting II that highlighted Genetron Healths industry-leading technological capability. Deepened collaboration with Thermo Fisher Scientific for joint marketing in China. Received US FDA approval for emergency use of Genetron SARS-CoV-2 RNA Test in June 2020. Strengthened the leadership team by appointing the former U.S. FDA senior officer, Yun-Fu Hu, PhD, as Chief Medical Officer. Successfully completed the initial public offering IPO in June 2020 and raised approximately US235.0 million of net proceeds.During the second quarter of 2020, our business rebounded as economic and social activities gradually resumed in China upon the easing of restrictions related to COVID-19. However, towards the later part of the second quarter, Beijing experienced a second wave of an outbreak, which has caused some negative impact on our business, remarked Mr. Sizhen Wang, co-founder and CEO of Genetron Health. Despite these challenges, we are pleased with our second quarter financial results as our robust top-line growth was accompanied by strong gross margins and an improved expense structure. This highlighted the resilience of Genetron Healths business and our solid execution in scaling our business.Looking ahead to the second half of 2020, while we are confident about our fundamental business, and the strength of our balance sheet following our successful IPO, the COVID-19 pandemic continues to present uncertainties and challenges to all industry players, including us. We will continue to stay nimble in the face of changing market conditions, and our long term growth strategies also remain intact. We intend to continue to expand our product portfolio for diagnosis and monitoring, develop our high-value early screening pipeline assets, and to work with additional biopharmaceutical partners. It is our goal to focus on the creation of long term shareholder value as we expand our precision oncology platform, concluded Mr. Wang.Second Quarter 2020 Unaudited Financial Results Total revenue for the second quarter 2020 increased by 40.3 to RMB101.7 million US14.4 million from RMB72.5 million in the same period of 2019.Diagnosis and monitoring revenue increased by 52.1 to RMB93.9 million US13.3 million in the second quarter 2020 from RMB61.7 million in the same period of 2019. The increase was mainly driven by the growth in the revenues generated from both the provision of LDT services and the sale of IVD products. Revenue generated from the provision of LDT services increased by 30.7 to RMB75.8 million US10.7 million during the second quarter 2020 from RMB58.0 million in the same period of 2019. LDT diagnostic tests sold in the second quarter 2020 totaled approximately 6,700 units, representing an increase of 15 compared to the number of LDT diagnostic tests sold in the same period of 2019. The average selling price also increased, attributable to a shift to higher value products such as Genetron Healths Onco PanScanTM. Revenue generated from sale of IVD In-vitro diagnostic products increased by 381.4 to RMB18.1 million US2.6 million in the second quarter 2020 from RMB3.8 million in the second quarter 2019. The increase was mainly driven by the increase in the number of assays and sequencing platforms sold in the second quarter 2020, notably the Genetron S5 instrument and Lung 8 Assay.Revenue generated from development services decreased by 27.3 to RMB7.8 million US1.1 million in the second quarter 2020, from RMB10.8 million in the same period of 2019. The change mainly resulted from the decrease in sequencing services, reflecting the adjustment of the Companys business strategy towards biopharmaceutical services as reflected in the increased revenue from biopharmaceutical services recorded in the second quarter 2020.Despite higher revenue, cost of revenue remained relatively stable at RMB37.5 million US5.3 million for the three months ended June 30, 2020, compared to RMB37.8 million in the same period of 2019.Gross profit increased by 85.3 to RMB64.2 million US9.1 million in the second quarter 2020 from RMB34.7 million in the same period of 2019. Gross margin increased to 63.1 for the second quarter of 2020, compared to 47.8 in the same period of 2019. The change was mainly attributable to the improved scale, operational optimization, and better product mix.Operating expenses increased by 15.6 to RMB117.4 million US16.6 million for the three months ended June 30, 2020, from RMB101.5 million in the same period of 2019.Selling expenses decreased by 7.1 to RMB60.6 million US8.6 million in the second quarter 2020 from RMB65.2 million in the same period of 2019. Selling expenses as a percentage of revenues decreased to 59.6 in the second quarter 2020 from 90.0 in the same period of 2019. These decreases were primarily due to improvement in sales productivity, and limited travel and marketing activities amid the COVID-19 impact.Administrative expenses increased by 0.2 to RMB27.9 million US4.0 million in the second quarter 2020 from RMB27.8 million in the same period of 2019. Administrative expenses as a percentage of revenues decreased to 27.4 in the second quarter 2020 from 38.4 in the second quarter 2019, reflecting the benefit of improved operational scale.Research and development expenses increased by 55.7 to RMB29.8 million US4.2 million in the second quarter 2020 from RMB19.2 million in the same period of 2019. The increase was driven by continued innovation efforts inclusive of development of new products and technologies. Research and development expenses as a percentage of revenues increased to 29.3 in the second quarter of 2020 from 26.4 in the same period of 2019.Other income-net was RMB1.3 million US0.2 million in the second quarter of 2020, decreased from RMB10.5 million in the same period of 2019. The decrease was mainly due to reduced government subsidies.As a result of the above, operating loss decreased by 20.6 to RMB53.1 million US7.5 million for the three months ended June 30, 2020, from RMB66.9 million for the three months ended June 30, 2019.The Company recorded RMB2,778.6 million US393.3 million and RMB67.8 million in fair value loss of financial instruments with preferred rights for the three months ended June 30, 2020 and 2019, respectively. The fair value loss of financial instruments with preferred rights was primarily attributable to the change in the fair value of preferred shares. Preferred shares were attached with certain key preferred rights, including anti-dilution rights, liquidation preference and redemption rights. With the significant increase of valuation immediately prior to the IPO during the second quarter of 2020, the fair value loss of financial instruments with preferred rights recorded in the same quarter increased significantly. At the completion of the IPO, all preferred shares were converted to ordinary shares. As a result, in compliance with IFRS, the carrying value of the financial instruments with preferred rights under non-current liabilities was derecognized and the same amount was recorded into total shareholders equity. In the future, the fair value loss of financial instruments will no longer reoccur.Net loss for the period was RMB2,832.4 million US400.9 million for the three months ended June 30, 2020, compared to RMB135.7 million for the three months ended June 30, 2019.Non-IFRS net loss for the period, defined as net loss for the period excluding share-based compensation expenses, fair value change and other loss of financial instruments with preferred rights, was RMB43.9 million US6.2 million for the three months ended June 30, 2020, compared to RMB58.8 million for the three months ended June 30, 2019.Basic net loss per ordinary share was RMB17.04 US2.41 for the second quarter of 2020, compared with a basic net loss per ordinary share of RMB1.09 for the same period of 2019. Excluding share-based compensation expenses, fair value change of financial instruments with preferred rights and other loss of financial instruments with preferred rights, non-IFRS basic net loss per ordinary share was RMB0.26 US0.04 for the second quarter of 2020, compared with non-IFRS basic net loss per ordinary share of RMB0.47 for the same period of 2019. Diluted net loss per ordinary share is equivalent to basic net loss per ordinary share. Each ADS represents of five ordinary shares, par value US0.00002 per share.Cash, cash equivalents and financial assets at fair value were RMB1,891.3 million US267.7 million as of June 30, 2020. In June 2020, Genetron Health completed its IPO and raised approximately US235.0 million of net proceeds after deducting underwriting discounts and commissions and estimated offering expenses payable.Conference Call A conference call and webcast to discuss the results will be held at 8:30 a.m. U.S. 