AnPac Bio-Medical Science Co., Ltd (NASDAQ:ANPC) Q2 2020 Earnings Conference Call - Final Transcript

Sep 10, 2020 • 08:00 am ET

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AnPac Bio-Medical Science Co., Ltd (NASDAQ:ANPC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, everyone. Thank you for standing by. [Operator Instructions] The call is being recorded.

At this time, I will turn the call over to Phil Case.

Executive
Phil Case

Welcome everyone. This is Phile Case, Investor Relations for the Company. This is AnPac Bio's First Six Months of the Fiscal Year 2020 Financial Results conference call. During today's presentation, all parties will be on listen-only. Joining us today from AnPac Bio are also the Company's Chairman and CEO, Dr. Chris Yu and the Company's Chief Financial Officer, Mr. Edward Tang.

I'd like to remind our listeners who are on the call, management's prepared remarks contain forward-looking statements, which are subject to risks and uncertainties. And management may make may make additional forward-looking statements in response to your questions. Therefore the Company claims the protection of the Safe Harbor for forward-looking statements as contained in the Privacy and Security Litigation Reform Act of 1995. This presentation may include references to non-GAAP financial measures as defined by the SEC's newly issued Regulation G. AnPac Bio is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

At this time, I would like to turn the call over to Dr. Chris Xu, Chairman and CEO of AnPac Bio. Dr. Yu, please go ahead.

Executive
Chris Yu

Thank you Phil and everyone for joining AnPac Bio's earnings conference call today. We are pleased to report strong financial results for the first six months of fiscal year 2020 with both revenue, gross margin and average selling price up. Our revenue increased by 3.4% to RMB4.1 million. We have also paid down debt significantly. Net loss was RMB56.1 million, which contained an IPO dominated one-time charge of RMB19.4 million and a stock compensation related cost of RMB17.5 million compared with the same period of last year of RMB34.9 million.

We're proud of the financial results given the tremendous amount of headwinds during the period. Starting in late January, several of our labs begins shutting down due to the COVID-19. By the end of April with COVID-19 gradually under control and once we had put in plans to safely protect our employees, we began slowly opening up. Towards the second half of the May, we started to see testing volume returning to normal level. We then had an excellent June with 65 [Phonetic] pay tests in a single month alone. During the period, we have also commercialized the two new products to broaden our offerings including our immunology test, which has significant market potential and appeal and also complement to cancer test as well. In addition, our US San Jose lab has been qualifying our novel test via laboratory developed test route as well as qualifying our COVID-19 antibody test on a major supplies equivalent which has already received the EFDA's -- FDA's Emergency Use approval. And we finally intend to -- we fully intend to commercialize it in the second half of the year.

Furthermore, in the United States our new