Exhibit 99.2

BURNING ROCK BIOTECH LIMITED

INDEX TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	PAGES
Condensed Consolidated Balance Sheets as of December 31, 2021 and June 30, 2022		F-2
Condensed Consolidated Statements of Comprehensive Loss for the six months ended June 30, 2021 and 2022		F-5
Condensed Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2021 and 2022		F-7
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2022		F-9
Notes to the Consolidated Financial Statements for the six months ended June 30, 2021 and 2022		F-11

F-1

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

		As of
	Notes	December 31, 2021		June 30, 2022
		RMB		RMB		US$
				(unaudited)
ASSETS
Current assets:
Cash and cash equivalents			1,431,317		1,148,597		171,481
Restricted cash			7,795		4,453		665
Short-term investments			63,757		—		—
Accounts receivable (net of allowances of RMB39,166 and RMB44,823 (US$6,692) as of December 31, 2021 and June 30, 2022, respectively.)	5		92,197		100,960		15,073
Contract assets	6		42,391		44,593		6,657
Inventories, net	7		123,210		129,637		19,355
Prepayments and other current assets	8		60,279		34,845		5,205
Total current assets			1,820,946		1,463,085		218,436
Non-current assets:
Equity method investment			910		733		109
Convertible note receivable			—		5,000		746
Property and equipment, net	9		325,438		301,249		44,975
Operating right-of-use-assets			81,007		66,655		9,951
Intangible assets, net			5,150		3,354		500
Other non-current assets			45,136		21,198		3,165
Total non-current assets			457,641		398,189		59,446
TOTAL ASSETS			2,278,587		1,861,274		277,882

F-2

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

		As of
	Notes	December 31, 2021		June 30, 2022
		RMB		RMB		US$
				(unaudited)
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB279,601and RMB275,112 (US$41,072) as of December 31, 2021 and June 30, 2022, respectively):
Accounts payable			63,080		56,495		8,434
Deferred revenue			142,871		163,093		24,349
Accrued liabilities and other current liabilities			127,892		98,435		14,696
Customer deposits			972		1,052		157
Short-term borrowings			2,370		2,370		354
Current portion of operating lease liabilities			34,999		38,005		5,674
Total current liabilities			372,184		359,450		53,664
Non-current liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB38,232 and RMB41,896 (US$6,255) as of December 31, 2021 and June 30, 2022, respectively):
Other non-current liabilities			11,776		37,242		4,830
Operating lease liabilities			49,316		32,349		5,560
Total non-current liabilities			61,092		69,591		10,390
TOTAL LIABILITIES			433,276		429,041		64,054

F-3

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

			As of
	Notes		December 31, 2021			June 30, 2022
			RMB			RMB			US$
						(unaudited)
Commitments and contingencies		15
Shareholders’ equity:
Class A ordinary shares (par value of US$0.0002 per share; 230,000,000 shares authorized; 87,784,001 shares and 88,116,172 shares issued and outstanding as of December 31, 2021 and June 30, 2022)				116			116			18
Class B ordinary shares (par value of US$0.0002 per share; 20,000,000 shares authorized; 17,324,848 shares issued and outstanding as of December 31, 2021 and June 30, 2022)				21			21			3
Equity forward		10		—			(66,850	)		(9,980	)
Additional paid-in capital				4,280,956			4,431,603			661,621
Accumulated deficits				(2,228,713	)		(2,752,238	)		(410,898	)
Accumulated other comprehensive loss				(207,069	)		(180,419	)		(26,936	)
Total shareholders’ equity				1,845,311			1,432,233			213,828
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				2,278,587			1,861,274			277,882

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-4

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

			For the six months ended June 30
	Notes		2021			2022
			RMB			RMB			US$
			(unaudited)			(unaudited)
Revenues:
Revenues from services				164,414			185,581			27,707
Revenues from sales of products				69,488			80,789			12,061
Total revenues		3		233,902			266,370			39,768
Cost of revenues:
Cost of services				(46,731	)		(66,462	)		(9,923	)
Cost of goods sold				(20,000	)		(29,726	)		(4,438	)
Total cost of revenues				(66,731	)		(96,188	)		(14,361	)
Gross profit				167,171			170,182			25,407
Operating expenses:
Research and development expenses				(185,485	)		(211,608	)		(31,592	)
Selling and marketing expenses				(123,188	)		(194,845	)		(29,090	)
General and administrative expenses (including related party amounts of RMB475 and RMB94 (US$14) for the six months ended June 30, 2021 and 2022, respectively.)		14		(232,389	)		(292,049	)		(43,602	)
Total operating expenses				(541,062	)		(698,502	)		(104,284	)
Loss from operations				(373,891	)		(528,320	)		(78,877	)
Interest income				1,468			4,517			674
Interest expenses				(1,075	)		90			13
Other expense, net (net off by related party income of RMB334 and nil for the six months ended June 30, 2021 and 2022, respectively.)				551			425			63
Foreign exchange (loss) gain, net				(503	)		(153	)		(23	)
Loss before income tax				(373,450	)		(523,441	)		(78,150	)

F-5

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

		For the six months ended June 30
	Notes	2021			2022
		RMB			RMB			US$
		(unaudited)			(unaudited)
Income tax expenses	12		(1,626	)		(84	)		(13	)
Net loss			(375,076	)		(523,525	)		(78,163	)
Net loss attributable to Burning Rock Biotech Limited’s shareholders			(375,076	)		(523,525	)		(78,163	)
Loss per share for class A and class B ordinary shares:	13
Class A ordinary shares - basic and diluted			(3.60	)		(4.98	)		(0.74	)
Class B ordinary shares - basic and diluted			(3.60	)		(4.98	)		(0.74	)
Weighted average shares outstanding used in loss per share computation:	13
Class A ordinary shares - basic and diluted			86,742,880			87,357,120			87,357,120
Class B ordinary shares - basic and diluted			17,324,848			17,324,848			17,324,848
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments			(20,900	)		26,650			3,979
Total comprehensive loss			(395,976	)		(496,875	)		(74,184	)
Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders			(395,976	)		(496,875	)		(74,184	)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-6

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

	Ordinary shares					Treasury stock			Additional paid- in capital			Accumulated deficit			Accumulated other comprehensive (loss) income			Total shareholders’ equity
	Number of shares			Amount
				RMB		RMB			RMB			RMB			RMB			RMB
Balance as of January 1, 2021		104,781,929			137		—			4,006,616			(1,418,160	)		(167,589	)		2,421,004
Net loss		—			—		—			—			(375,076	)		—			(375,076	)
Other comprehensive income		—			—		—			—			—			(20,900	)		(20,900	)
Issuance of restricted shares		2,424			—		—			—			—			—			—
Refund for prepaid subscription for forfeited restricted shares		(16,233	)		—		—			(1,629	)		—			—			(1,629	)
Purchase of treasury stock		(61,026	)		—		(4,270	)		—			—			—			(4,270	)
Exercise of options (note 11)		85,903			—		—			—			—			—			—
Adoption of ASC 326		—			—		—			—			(13,856	)		—			(13,856	)
Share-based compensation (note 11)		—			—		—			168,167			—			—			168,167
Balance as of June 30, 2021 (unaudited)		104,792,997			137		(4,270	)		4,173,154			(1,807,092	)		(188,489	)		2,173,440

F-7

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

	Ordinary shares					Treasury stock			Additional paid-in capital			Accumulated deficit						Accumulated other comprehensive (loss) income			Total shareholders’ equity
	Number of shares			Amount											Equity forward
				RMB		RMB			RMB			RMB			RMB			RMB			RMB
Balance as of January 1, 2022		105,108,849			137		—			4,280,956			(2,228,713	)		—			(207,069	)		1,845,311
Net loss		—			—		—			—			(523,525	)		—			—			(523,525	)
Other comprehensive income		—			—		—			—			—			—			26,650			26,650
Refund of consideration for Employee Share Incentive Program		(73,489	)		—		—			(3,385	)		—			—			—			(3,385	)
Purchase of treasury stock		—			—		(3,258	)		—			—			—			—			(3,258	)
Equity forward contract (note 10)		—			—		—			—			—			(66,850	)		—			(66,850	)
Exercise of options (note 11)		405,661			—		3,258			(3,258	)		—			—			—			—
Share-based compensation (note 11)		—			—		—			157,290			—			—			—			157,290
Balance as of June 30, 2022 (unaudited)		105,441,021			137		—			4,431,603			(2,752,238	)		(66,850	)		(180,419	)		1,432,233
Balance as of June 30, 2022 (US$) (unaudited)		105,441,021			21		—			661,621			(410,898	)		(9,980	)		(26,936	)		213,828

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-8

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

	For the six months ended June 30
	2021			2022
	RMB			RMB			US$
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net loss		(375,076	)		(523,525	)		(78,163	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		21,652			60,154			8,981
Allowance for credit losses		3,054			16,677			2,490
Inventory write down		1,697			7,007			1,046
Loss on disposal of equipment		13			1,113			166
Share of loss from equity method investee		143			217			32
Share-based compensation		168,167			157,290			23,483
Non-cash operating lease expenses		12,756			19,739			2,947
Derecognition of right of use assets and lease liability		—			(137	)		(20	)
Changes in operating assets and liabilities:
Inventories		(55,299	)		(10,948	)		(1,634	)
Accounts receivable		(344	)		(14,420	)		(2,153	)
Contract assets		(12,282	)		(13,317	)		(1,988	)
Prepayments and other current assets		(22,461	)		25,554			3,815
Amounts due from related parties		(416	)		—			—
Other non-current assets		—			24,187			3,611
Accounts payable		9,315			3,877			579
Deferred revenue		27,115			20,222			3,019
Accrued liabilities and other current liabilities		(1,305	)		(29,457	)		(4,399	)
Customer deposits		(78	)		80			12
Deferred government grants		(263	)		—			—
Operating lease liabilities		(8,531	)		(19,584	)		(2,924	)
Other non-current liabilities		—			21,637			3,230
Net cash used in operating activities		(232,143	)		(253,634	)		(37,870	)
Cash flows from investing activities:
Proceeds from maturity of short-term investments		323,335			65,598			9,794
Proceeds from disposal of equipment		2,559			352			53
Prepayment for property and equipment		—			(7,901	)		(1,180	)
Purchase of property and equipment		(104,822	)		(35,137	)		(5,243	)
Purchase of intangible assets		(320	)		(194	)		(29	)
Investment in convertible loan		—			(5,000	)		(746	)
Net cash generated from investing activities		220,752			17,718			2,649

F-9

BURNING ROCK BIOTECH LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

	For the six months ended June 30
	2021			2022
	RMB			RMB			US$
	(unaudited)			(unaudited)
Cash flows from financing activities:
Purchase of equity forward		—			(66,850	)		(9,980	)
Purchase of treasury shares		(4,270	)		(3,258	)		(486	)
Refund of consideration for Employee Share Incentive Program		(1,629	)		(3,385	)		(505	)
Finance lease payments		(2,647	)		—			—
Repayment of long-term borrowings		(4,577	)		—			—
Net cash used in financing activities		(13,123	)		(73,493	)		(10,971	)
Effect of exchange rate on cash, cash equivalents and restricted cash		(17,427	)		23,347			3,484
Net decrease in cash, cash equivalents and restricted cash		(41,941	)		(286,062	)		(42,708	)
Cash, cash equivalents and restricted cash at the beginning of period		1,925,206			1,439,112			214,854
Cash, cash equivalents and restricted cash at the end of period		1,883,265			1,153,050			172,146
Supplemental disclosures of non-cash information:
Purchase of property and equipment included in accounts payable		3,186			10,462			1,562
Purchase of property and equipment included in other non-current assets		(4,170	)		7,794			1,164
Derecognition of right-of-use asset and lease liability		—			137			20
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents		1,852,927			1,148,597			171,481
Restricted cash		30,338			4,453			665
Total cash, cash equivalents and restricted cash shown in the condensed consolidated balance sheets		1,883,265			1,153,050			172,146

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-10

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

1. ORGANIZATION

Burning Rock Biotech Limited (the “Company”) is a limited liability company incorporated in the Cayman Islands on March 10, 2014. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries, the variable interest entity (“VIE”) and subsidiaries of the VIE. The Company, together with its subsidiaries, the VIE and the VIE’s subsidiaries (collectively, the “Group”) are principally engaged in developing and providing cancer therapy selection tests in the People’s Republic of China (the “PRC” or “China”).

There was no change to the Company’s principal subsidiaries, the VIE and the VIE’s subsidiaries since December 31, 2021.

To comply with PRC laws and regulations which prohibit and restrict foreign ownership of business involving the development and application of genomic diagnosis and treatment technology, the Group conducts its business in the PRC principally through the VIE and the VIE’s subsidiaries. The equity interests of the VIE are legally held by PRC shareholders (the “Nominee Shareholders”).

Despite the lack of majority ownership, the Company through the wholly foreign owned entity (“the WFOE”) has effective control of the VIE through a series of contractual arrangements (the “VIE agreements”) and a parent-subsidiary relationship exists between the Company and the VIE. Through the VIE agreements, the Nominee Shareholders of the VIE effectively assigned all of their voting rights underlying their equity interests in the VIE to the Company, and therefore, the Company has the power to direct the activities of the VIE that most significantly impact its economic performance. The Company also has the right to receive economic benefits that potentially could be significant to the VIE. The WFOE was the primary beneficiary of the VIE through October 2019 and the Company has replaced the WFOE as the primary beneficiary of the VIE since October 2019. Based on the above, the Company consolidates the VIE in accordance with SEC Regulation S-X-3A-02 and Accounting Standards Codification (“ASC”) Topic 810-10 (“ASC 810-10”), Consolidation: Overall.

F-11

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

1 ORGANIZATION (CONTINUED)

The following table sets forth the assets and liabilities of the VIE and subsidiaries of the VIE included in the Group’s unaudited interim condensed consolidated balance sheet:

	As of
	December 31, 2021		June 30, 2022
	RMB		RMB		US$
			(unaudited)
Cash and cash equivalents		185,850		332,367		49,621
Restricted cash		—		2,892		432
Accounts receivable (net of allowances of RMB38,922 and RMB44,566 (US$6,654) as of December 31, 2021 and June 30, 2022, respectively)		92,197		100,960		15,072
Contract assets		42,391		44,593		6,657
Inter-company receivables*		75,560		214,874		32,080
Inventories		119,257		120,952		18,058
Prepayments and other current assets		40,957		17,388		2,596
Total current assets		556,212		834,026		124,516
Property and equipment, net		42,623		58,285		8,702
Intangible assets, net		633		375		56
Other non-current assets		8,346		10,227		1,527
Operating right-of-use assets		51,630		41,875		6,252
Total non-current assets		103,232		110,762		16,537
TOTAL ASSETS		659,444		944,788		141,053
Accounts payable		27,102		19,925		2,975
Deferred revenue		133,489		163,095		24,349
Inter-company payables*		897,633		1,397,180		208,593
Accrued liabilities and other current liabilities		89,976		62,557		9,339
Customer deposits		972		484		72
Short-term borrowing		2,370		2,370		354
Current portion of operating lease liabilities		25,692		26,681		3,983
Total current liabilities		1,177,234		1,672,292		249,665
Deferred government grant
Other non-current liabilities		8,563		24,034		3,588
Non-current portion of operating lease liabilities		29,669		17,862		2,667
Total non-current liabilities		38,232		41,896		6,255
TOTAL LIABILITIES		1,215,466		1,714,188		255,920

* Inter-company receivables/payables represent balances of the VIE and subsidiaries of the VIE due from/to the Company and the Group’s consolidated subsidiaries.

F-12

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

1 ORGANIZATION (CONTINUED)

As of December 31, 2021, and June 30, 2022, there were no pledges or collateralization of the VIE and VIE’s subsidiaries’ assets that can only be used to settle obligations of the VIE and VIEs’ subsidiaries. The amounts of the net liabilities of the VIE and subsidiaries of the VIE were RMB556,022 and RMB769,398 (US$114,871) as of December 31, 2021, and June 30, 2022, respectively. The creditors of the VIE and subsidiaries of the VIE’s third-party liabilities did not have recourse to the general credit of the primary beneficiary in the normal course of business. The VIE holds certain assets, including detection equipment and related equipment for use in their operations. The Company did not provide nor intend to provide additional financial or other support not previously contractually required to the VIE and subsidiaries of the VIE during the periods presented.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding financial reporting that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2021. Accordingly, these unaudited interim condensed consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for annual financial statements.

The unaudited interim condensed financial statements have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2021 and, in the opinion of management, reflect all normal recurring adjustments, necessary to present a fair statement of the results for the interim periods presented. Results of the operations for the six months ended June 30, 2022 are not necessarily indicative of the results expected for the full fiscal year or for any future annual or interim period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2021.

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Convenience translation

Translations of amounts from RMB into US$ for the convenience of the reader have been calculated at the exchange rate of RMB 6.6981 per US$1.00 on June 30, 2022, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate or at any other rate.

F-13

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Use of estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affected the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Areas where management uses subjective judgment include, but are not limited to, allowance for credit losses, inventory provision, standalone selling prices of performance obligations, the useful lives and impairment of long-lived assets, breakage income and incremental borrowing rates for lease liabilities. Management bases its estimates on historical experience and on assumptions that it believes are reasonable. Actual results could differ materially from those estimates.

Accounts receivable, contract assets and allowance for credit losses

The Group records the allowance for credit losses as an offset to accounts receivable and contract assets, with estimated credit losses charged to “General and administrative expenses” in the condensed consolidated statements of comprehensive loss. The Group assesses credit loss by reviewing accounts receivable and contract assets on a collective basis where similar characteristics exist, primarily based on similar business segments, service or product offerings and on an individual basis when the Group identifies specific customers with known disputes or collectability issues. The Group applies a migration roll rate method that considers historical collectability based on past due status, the age of the accounts receivable and contract asset balances, credit quality of the Group’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions and other factors that may affect the Group’s ability to collect from customers. The Group writes off accounts receivable and contract assets are deemed uncollectible when after all collection efforts have ceased.

F-14

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Contract liabilities

The Group records a contract liability, which is presented as “deferred revenue” on the consolidated balance sheets when a customer pays consideration before the Group provides products or services.

Deferred revenue increased RMB20,222 (US$3,019) compared to the year ended December 31, 2021 is a result of the increase in consideration received from the Group’s customers. The Group receives payments from customers based on a billing schedule as established in contracts. Revenue recognized that was included in deferred revenue balance at the beginning of the period was RMB18,845 and RMB14,101(US$2,105) for the six months ended June 30, 2021 and 2022, respectively.

The transaction prices allocated to the remaining performance obligations (unsatisfied or partially satisfied) as of December 31, 2021 and June 30, 2022 were RMB199,354 and RMB 356,887(US$53,282), respectively. RMB203,955 (US$30,450) of transaction prices allocated to the remaining performance obligations which are expected to be recognized as revenue after one year are related to pharma research and development services. All the other amounts of transaction prices allocated to the remaining performance obligations are expected to be recognized as revenue within one year. The amounts disclosed above do not include variable consideration which is constrained.

Significant accounting policies

For a more complete discussion of the Company’s significant accounting policies and other information, the unaudited interim condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report (Form 20-F) for the year ended December 31, 2021.

There have been no material changes to the Company’s significant accounting policies as of and for the six months ended June 30, 2022, as compared to the significant accounting policies described in the Annual Report.

F-15

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

3 SEGMENT REPORTING

The Group had three operating segments, including the central laboratory business, the in-hospital business and pharma research and development services for the six-months ended June 30, 2022 and 2021. The operating segments also represented the reporting segments. The Group’s CODM assesses the performance of the operating segments based on the measures of revenues, cost of revenue and gross profit by the central laboratory business, the in-hospital business and pharma research and development services. Other than the information provided below, the CODM does not use any other measures by segments.

Summarized information by segments for the six months ended June 30, 2022 and 2021 is as follows:

	For the six months ended June 30,2021												For the six months ended June 30,2022
	Central laboratory business			In-hospital business			Pharma research and development services			Total			Central laboratory business			In-hospital business			Pharma research and development services			Total
	RMB			RMB			RMB			RMB			RMB			RMB			RMB			RMB			US$
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
Revenues from services		154,560			8			9,846			164,414			152,808			2,345			30,428			185,581			27,707
Revenues from sales of products		—			69,488			—			69,488			—			80,789			—			80,789			12,061
Total revenues		154,560			69,496			9,846			233,902			152,808			83,134			30,428			266,370			39,768
Cost of revenues		(40,667	)		(20,000	)		(6,064	)		(66,731	)		(44,659	)		(29,726	)		(21,803	)		(96,188	)		(14,361	)
Gross profit		113,893			49,496			3,782			167,171			108,149			53,408			8,625			170,182			25,407

F-16

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

4 FAIR VALUE MEASUREMENTS

The Group applies ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided for fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—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 carrying amounts of cash and cash equivalent, restricted cash, short-term investments, accounts receivable, amounts due from and due to related parties, accounts payable and short-term borrowings approximate their fair values because of their generally short maturities. The carrying amounts of long-term borrowings and lease liabilities approximate their fair values since they bear interest at rates which approximate market interest rates.

The Group did not transfer any assets or liabilities in or out of Level 3 during the six months ended June 30, 2021 and 2022. As of December 31, 2021 and June 30, 2022, there was no warrants outstanding. Therefore, there was no asset or liability measured at fair value using Level 3 unobservable inputs on a recurring basis as of December 31, 2021 and June 30, 2022.

There were no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2021 and June 30, 2022.

F-17

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

5 ACCOUNTS RECEIVABLE, NET

	As of
	December 31, 2021			June 30, 2022
	RMB			RMB			US$
				(unaudited)
Accounts receivable		131,363			145,783			21,765
Allowance for credit losses		(39,166	)		(44,823	)		(6,692	)
		92,197			100,960			15,073

The changes in the allowance for credit losses were as follows:

	For the six months ended June 30
	2021			2022
	RMB			RMB		US$
	(unaudited)			(unaudited)
Balance at beginning of the period		24,215			39,166		5,847
Adoption of ASC 326		11,358			—		—
Provisions		(937	)		5,657		845
Balance at end of the period		34,636			44,823		6,692

6 CONTRACT ASSETS

	As of
	December 31, 2021			June 30, 2022
	RMB			RMB			US$
				(unaudited)
Contract assets		56,869			70,186			10,478
Allowance for credit losses		(14,478	)		(25,593	)		(3,821	)
		42,391			44,593			6,657

F-18

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

6 CONTRACT ASSETS (CONTINUED)

The changes in the allowance for credit losses were as follows:

	For the six months ended June 30
	2021		2022
	RMB		RMB		US$
			(unaudited)
Balance at beginning of the period		3,497		14,478		2,162
Adoption of ASC 326		2,383		—		—
Provisions		4,088		11,115		1,659
Balance at end of the period		9,968		25,593		3,821

7 INVENTORIES, NET

	As of
	December 31, 2021			June 30, 2022
	RMB			RMB			US$
				(unaudited)
Raw materials		82,455			90,957			13,580
Work in progress		7,902			10,220			1,526
Finished goods		35,481			38,095			5,687
Inventory provision		(2,628	)		(9,635	)		(1,438	)
		123,210			129,637			19,355

8 PREPAYMENTS AND OTHER CURRENT ASSETS

	As of
	December 31, 2021		June 30, 2022
	RMB		RMB		US$
			(unaudited)
Deductible input VAT		23,232		17,828		2,663
Prepayments		30,695		10,746		1,605
Advance to employees		—		1,673		250
Deposits		1,874		2,158		322
Interest receivables		111		405		60
Employee loan (i)		3,500		—		—
Others (ii)		867		2,035		305
		60,279		34,845		5,205

(i) On March 16, 2021 the Group extended a loan to an employee with principal amount of RMB3,500 (US$523) at simple annual interest rate of 3.08%. The loan was repaid in February 2022.

(ii) Certain financial assets included in others, net of the allowance for credit losses of RMB95 and nil as of December 31, 2021 and June 30, 2022, respectively. Cumulative effect of adopting ASC 326 on January 1, 2021 of other current assets was RMB115 (US$17). Reversal of provision were RMB97 and RMB95 (US$14) for the six months ended June 30, 2021 and 2022, respectively.

F-19

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

9 PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following:

	As of
	December 31, 2021			June 30, 2022
	RMB			RMB			US$
				(unaudited)
Machinery and laboratory equipment		231,289			246,389			36,785
Vehicles		2,812			2,808			419
Furniture and tools		15,723			16,756			2,502
Electronic equipment		48,068			49,937			7,455
Leasehold improvements		161,037			161,691			24,140
Construction in progress		27,555			40,062			5,981
		486,484			517,643			77,282
Accumulated depreciation		(161,046	)		(216,394	)		(32,307	)
		325,438			301,249			44,975

Depreciation expenses recognized for the six months ended June 30, 2021 and 2022 were RMB20,614, and RMB57,953 (US$8,652), respectively. 

F-20

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

10 EQUITY FORWARD

On June 21, 2022, the Company’s board of directors authorized a share repurchase plan under which the Company may repurchase up to US$10,000 its Class A ordinary shares in the form of its ADS during a 12-month period (the “Share Repurchase Program”). The Company entered an accelerated share repurchase (“ASR”) agreement with Bank of America, pursuant to which it prepaid US$10,000 with the repurchase price determined by the volume-weighted average price (“VWAP”) of the Company’s ADS over the term of the ASR. The settlement date of this contract was August 23, 2022.

The Company evaluated and concluded the ASR agreement was an equity classified forward contract pursuant to ASC 815-40-25-10 and recognized the contract notional amount as contra-equity in the statement of changes in shareholder equity for the six months ended June 30, 2022

11 SHARE-BASED COMPENSATION

Total share-based compensation expenses recognized for the six months ended June 30, 2021 and 2022 were as follows:

	For the six months ended June 30,
	2021		2022
	RMB		RMB		US$
	(unaudited)		(unaudited)
Cost of revenues		745		806		120
Research and development expenses		43,230		24,222		3,616
Selling and marketing expenses		5,442		3,932		587
General and administrative expenses		118,750		128,330		19,159
		168,167		157,290		23,483

F-21

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

12 INCOME TAXES

For interim income tax reporting, the Group computed an estimate annual effective tax rate (“EAETR”) and apply it to year-to-date ordinary income (loss), exclusive of discrete items. Tax jurisdictions with a projected or year-to-date loss for which a tax benefit cannot be realized are excluded. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur.

The Group recorded income tax expenses of RMB84 (US$13), representing effective tax rate of nil for the six months ended June 30, 2022 compared to RMB1,626 for the six months ended June 30, 2021. The primary difference between the PRC statutory tax rate of 15% for qualified high-tech enterprise and the effective tax rate for the six months ended June 30, 2022 are primarily due to permanent book to tax adjustments such as super R&D deduction netted with nondeductible entertainment expense and stock compensation expense.

As of June 30, 2022, there was no significant impact from tax uncertainties on the Group’s unaudited interim condensed consolidated financial statements. The Group did not record any interest and penalties related to an uncertain tax position for the six months ended June 30, 2021 and 2022. The Group does not expect the amount of unrecognized tax benefits would increase significantly in the next 12 months.

In general, the PRC tax authorities have up to five years to conduct examinations of the tax filings of the Company’s PRC subsidiaries, the VIE and the VIE’s subsidiaries. Accordingly, the PRC tax filings from 2017 through 2021 remain open to examination by the respective tax authorities. The Group may also be subject to the examinations of the tax filings in other jurisdictions, which are not material to the consolidated financial statements.

F-22

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

13 LOSS PER SHARE

Basic and diluted loss per share for the six months ended June 30, 2021 and 2022 are calculated as follows:

	For the six months ended June 30,
	2021						2022
	Class A			Class B			Class A						Class B
	RMB			RMB			RMB			US$			RMB			US$
	(unaudited)						(unaudited)
Numerator:
Net loss attributable to ordinary shareholders		(312,635	)		(62,441	)		(436,882	)		(65,227	)		(86,643	)		(12,936	)
Denominator:
Weighted-average number of ordinary shares outstanding		87,470,332			17,324,848			87,909,137			87,909,137			17,324,848			17,324,848
Effect of unvested restricted shares		(727,452	)		—			(552,017	)		(552,017	)		—			—
Weighted average number of ordinary shares outstanding – basic and diluted		86,742,880			17,324,848			87,357,120			87,357,120			17,324,848			17,324,848
Loss per share - basic and diluted		(3.60	)		(3.60	)		(4.98	)		(0.74	)		(4.98	)		(0.74	)

For the six months ended June 30, 2021 and 2022, the two-class method was applied to the outstanding Class A and Class B ordinary shares. The unvested restricted shares were excluded from the computation of weighted-average number or ordinary shares outstanding because the Group is in a loss position and the holders of the restricted shares do not have an obligation to fund losses of the Group. The effects of all outstanding share options were excluded from the computation of diluted loss per share for the six months ended June 30, 2021 and 2022 as their effects would be anti-dilutive.

F-23

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

14 RELATED PARTY TRANSACTIONS

a) Related parties

Name of related parties	Relationship
Yusheng Han	Shareholder of the shareholder of the Company, Chief Executive Officer and director
Shaokun Chuai	Shareholder of the shareholder of the Company, Chief Operating Officer and director
EaSuMed Holding Ltd.	Equity method investee
Guangzhou Burning Rock Biological Engineering Co., Ltd.	Company controlled by the Founder

b) The Group had the following related party balance at the end of the periods:

	As of
	December 31, 2021		June 30, 2022
	RMB		RMB		US$
			(unaudited)
EaSuMed Holding Ltd.		212		—		—
Total amounts due from related parties		212		—		—

All the balances with a related party as of December 31, 2021 were unsecured. All outstanding balances are repayable on demand unless otherwise disclosed. No allowance for credit losses was recognized for the amounts due from related parties for the six months ended June 30, 2021 and 2022.

F-24

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

14 RELATED PARTY TRANSACTIONS (CONTINUED)

c) The Group had the following related party transactions:

	For the six months ended June 30,
	2021		2022
	RMB		RMB		US$
	(unaudited)		(unaudited)
Consulting service received from:
EaSuMed Holding Ltd.		475		94		14
Rental income from:
Guangzhou Burning Rock Biological Engineering Co., Ltd.(i)		97		—		—
Equipment usage service income from:
Guangzhou Burning Rock Biological Engineering Co., Ltd.(ii)		237		—		—

(i) On April 1, 2021, the Group entered into a one-year sublease agreement on its office with a related party and recorded RMB97 in other income for the six month ended June 30, 2021. The lease was early terminated on September 30, 2021.

(ii) On April 1, 2021, the Group entered into a contract to provide equipment usage service to its related party with a total contact amount of RMB997, of which RMB237 was recorded in other income for the six month ended June 30, 2021. The contract was early terminated on September 30, 2021.

15 COMMITMENTS AND CONTINGENCIES

Capital expenditure commitments

The Group has capital expenditure commitments for the laboratory leasehold improvements of RMB6,520 (US$973) as of June 30, 2022, which are scheduled to be paid within one year.

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.

F-25

BURNING ROCK BIOTECH LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”),

except for number of shares and per share data)

16 RESTRICTED NET ASSETS

Under the PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries and the VIE with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. The Company’s restricted net assets from its PRC subsidiaries, the VIE and VIE’s subsidiaries, as determined pursuant to PRC GAAP, were RMB382,724 and RMB344,331 (US$51,407) as of December 31, 2021 and June 30, 2022, respectively.

17 SUBSEQUENT EVENTS

On August 23, 2022, the Company repurchased a total of 3,023,138 Class A ordinary shares in the form of ADSs upon settlement of the ASR program.

F-26