Unaudited Interim Condensed Consolidated Financial Statements |
PAGES |
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F-2 |
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F-4 |
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F-5 |
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F-6 |
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F-7 |
As of December 31, |
As of June 30, |
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2021 |
2022 |
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Notes |
RMB |
RMB |
US$ |
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(Note 2) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Short-term investments |
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Prepayments and other current assets |
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Total current assets |
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Property, equipment and software |
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Operating lease right-of-use |
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Other non-current assets |
6 | |||||||||||||
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TOTAL ASSETS |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accruals and other current liabilities (including accruals and other current liabilities of the consolidated VIEs without recourse to the Company of RMB |
7 | |||||||||||||
Short-term borrowings (including short-term borrowings of the consolidated VIEs without recourse to the Company of RMB |
8 | |||||||||||||
Operating lease liabilities, current (including operating lease liabilities, current of the consolidated VIEs without recourse to the Company of RMB |
5 | |||||||||||||
Amounts due to related parties |
13 | |||||||||||||
Current portion of long-term borrowings (including current portion of long-term borrowings of the consolidated VIEs without recourse to the Company of RMB |
8 | |||||||||||||
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Total current liabilities |
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Operating lease liabilities, non-current (including operating lease liabilities, non-current of the consolidated VIEs without recourse to the Company of RMB |
5 | |||||||||||||
Long-term borrowings (including long-term borrowings of the consolidated VIEs without recourse to the Company of RMB |
8 | |||||||||||||
Other non-current liabilities |
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TOTAL LIABILITIES |
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Commitments and contingencies |
14 |
As of December 31, |
As of June 30, |
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2021 |
2022 |
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Notes |
RMB |
RMB |
US$ |
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(Note 2) |
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Shareholders’ equity: |
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Ordinary shares (par value of US$ |
9 | |||||||||||||||
Additional paid-in capital |
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Accumulated other comprehensive income/(loss) |
( |
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Accumulated deficit |
( |
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Total shareholders’ equity |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
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For the six months ended June 30, |
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2021 |
2022 |
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Notes |
RMB |
RMB |
US$ |
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(Note 2) |
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Expenses |
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Research and development expenses |
( |
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) | ( |
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Administrative expenses |
( |
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Loss from operations |
( |
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( |
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( |
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Interest income |
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Interest expense |
( |
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Other income |
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Foreign exchange gain (loss), net |
( |
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Others, net |
( |
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Loss before income tax |
( |
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( |
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( |
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Income tax expense |
11 | |||||||||||||
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Net loss |
( |
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( |
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( |
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Accretion of convertible redeemable preferred shares to redemption value |
12 | ( |
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Net loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders |
( |
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( |
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( |
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Other comprehensive income (loss) |
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Foreign currency translation adjustments, net of |
( |
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Total comprehensive loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders |
( |
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( |
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( |
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Weighted average number of ordinary shares used in per share calculation: |
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—Basic |
12 | |||||||||||||
—Diluted |
12 | |||||||||||||
Net loss per share attributable to Gracell Biotechnologies Inc.’s ordinary shareholders |
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—Basic |
12 | ( |
) | ( |
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—Diluted |
12 | ( |
) | ( |
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Ordinary shares |
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Number of shares |
Amount |
Additional paid-in capital |
Accumulated other comprehensive gain/(loss) |
Accumulated deficit |
Total shareholders’ equity/(deficit) |
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RMB |
RMB |
RMB |
RMB |
RMB |
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Balance as of December 31, 2020 |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Accretions of convertible redeemable preferred shares to redemption value |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Share-based compensation |
— | — | — | — | ||||||||||||||||||||
Conversion of preferred shares to ordinary shares upon the completion of initial public offering (“IPO”) |
— | — | ||||||||||||||||||||||
Issuance of ordinary shares upon IPO and over-allotment, net of issuance cost |
— | — | ||||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | ( |
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Balance as of June 30, 2021 |
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Ordinary shares |
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Number of shares |
Amount |
Additional paid-in capital |
Accumulated other comprehensive gain/(loss) |
Accumulated deficit |
Total shareholders’ equity |
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RMB |
RMB |
RMB |
RMB |
RMB |
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Balance as of December 31, 2021 |
( |
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( |
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Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Share-based compensation |
— | — | — | — | ||||||||||||||||||||
Exercise of options and restricted share units |
— | — | ||||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | — | ||||||||||||||||||||
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Balance as of June 30, 2022 |
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For the six months ended June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Cash flows from operating activities: |
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Net loss |
( |
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) | ( |
) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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Share-based compensation |
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Amortization of right-of use assets and interest of lease liabilities |
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Foreign exchange gain, net |
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Changes in operating assets and liabilities: |
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Prepayments and other current assets |
( |
) | ||||||||||
Amounts due to related party |
— | |||||||||||
Accruals and other current liabilities |
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Other non-current assets |
— | ( |
) | ( |
) | |||||||
Lease liabilities |
( |
) | ( |
) | ( |
) | ||||||
Other non-current liabilities |
( |
) | ( |
) | ||||||||
Net cash used in operating activities |
( |
) |
( |
) |
( |
) | ||||||
Cash flows from investing activities: |
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Purchase of property, equipment and software |
( |
) | ( |
) | ( |
) | ||||||
Investments in short-term investments |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from disposal of short-term investments |
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Net cash generated from (used in) investing activities |
( |
) |
( |
) |
( |
) | ||||||
Cash flows from financing activities: |
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Proceeds from initial public offering and over-allotment, net of underwriting discounts and commissions |
— | — | ||||||||||
Proceeds from exercise of options and restricted share units |
— | |||||||||||
Proceeds from bank borrowings |
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Repayments of bank borrowings |
( |
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) | ( |
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Payment of “at the market offering” costs |
— | ( |
) | ( |
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Payment of initial public offering costs |
( |
) | — | — | ||||||||
Net cash generated from financing activities |
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Effect of exchange rate on cash and cash equivalents |
( |
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Net increase (decrease) cash and cash equivalents |
( |
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( |
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Cash and cash equivalents at the beginning of year |
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Cash and cash equivalents at the end of the period |
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Supplemental cashflow disclosures: |
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Interest paid |
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Non-cash activities: |
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Accretion of convertible redeemable preferred shares to redemption value |
— | — |
Date of incorporation |
Place of incorporation |
Percentage of legal ownership by the Company |
Principal activities | |||||
Subsidiaries |
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Gracell Biotechnologies Holdings Limited (“Gracell BVI”) | British Virgin Islands | |||||||
Gracell Biotechnologies (HK) Limited (“Gracell HK”) | Hong Kong | |||||||
Gracell Bioscience (Shanghai) Co., Ltd. | The PRC | |||||||
Gracell Biopharmaceuticals, Inc. | The United States of America | |||||||
Gracell Biomedicine (Shanghai) Co., Ltd. | The PRC | |||||||
Hainan Gracell Biomedicine Co., Ltd. | The PRC | |||||||
Suzhou Gracell Bioscience Co., Ltd. | The PRC | |||||||
VIE |
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Gracell Biotechnologies (Shanghai) Co., Ltd. | The PRC | — | ||||||
VIE’s subsidiary |
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Suzhou Gracell Biotechnologies Co., Ltd. (“Suzhou Gracell”) | The PRC | — |
• |
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 the VIE; |
• |
restricting or prohibiting the Group’s use of the proceeds of the public 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. |
As of December 31, |
As of June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Short-term investments |
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Amounts due from Group companies |
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Prepayments and other current assets |
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Total current assets |
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Property, equipment and software |
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Operating lease, right-of-use |
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Other non-current assets |
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TOTAL ASSETS |
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LIABILITIES |
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Current liabilities: |
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Amounts due to related parties |
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Short-term borrowings |
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Operating lease liabilities, current |
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Current portion of long-term borrowings |
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Accruals and other current liabilities |
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Total current liabilities |
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Long-term borrowings |
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Amounts due to Group companies |
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Operating lease liabilities, non-current |
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TOTAL LIABILITIES |
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For the six months ended June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Net loss |
( |
) |
( |
) |
( |
) |
For the six months ended June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Net cash used in operating activities |
( |
) |
( |
) |
( |
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Net cash generated from (used in) investing activities |
( |
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( |
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Net cash generated from financing activities |
Category |
Estimated Useful Life | |
Machinery and laboratory equipment | ||
Vehicles | ||
Furniture and tools | ||
Electronic equipment | ||
Computer software | ||
Leasehold improvements |
As of December 31, |
As of June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Deductible value-added tax input |
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Prepayments for CRO and other services |
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Deferred expenses |
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Prepayment for raw materials |
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Deposits |
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Others |
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As of December 31, |
As of June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Machinery and laboratory equipment |
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Leasehold improvements |
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Construction in progress |
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Vehicles |
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Others |
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Total property, equipment and software |
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Less: accumulated depreciation and amortization |
( |
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Property, equipment and software, net |
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As of December 31, |
As of June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Assets |
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Operating lease right-of-use |
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Liabilities |
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Operating lease liabilities, current |
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Operating lease liabilities, non-current |
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RMB |
US$ |
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(Note 2) |
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For the years ending: |
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2022 |
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2023 |
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2024 |
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2025 |
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2026 and thereafter |
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Total undiscounted lease payments |
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Less: imputed interest |
( |
) |
( |
) | ||||
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Total lease liabilities |
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For the six months ended June 30, |
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2022 |
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RMB |
US$ |
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(Note 2) |
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Lease cost |
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Operating lease cost |
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Short-term lease cost |
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Total lease cost |
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Other information |
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Cash paid for amounts included in the measurement of lease liabilities |
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Right-of-use |
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Weighted-average remaining lease term |
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Weighted-average discount rate |
% | % |
As of December 31, |
As of June 30, |
|||||||||||
2021 |
2022 |
|||||||||||
RMB |
RMB |
US$ |
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(Note 2) |
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Prepayments for property, equipment and software |
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Long-term deposit s |
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Others |
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As of December 31, |
As of June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Accrued external research and development related expenses |
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Salary and welfare payables |
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Professional service fees |
||||||||||||
Deferred income for reimbursement of the expenses related to the establishment of the ADS facility |
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Others |
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As of December 31, |
As of June 30, |
|||||||||||
2021 |
2022 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
(Note 2) |
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Current |
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Short-term borrowings: |
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Bank loans |
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Current portion of long-term borrowings |
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Total current borrowings |
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Non-Current |
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Long-term borrowings: |
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Bank loans |
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Total non-current borrowings |
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Total borrowings |
||||||||||||
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 |
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US$ per |
US$ per |
RMB per |
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option |
option |
option |
Years |
RMB |
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Outstanding at January 1, 2021 |
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Granted |
— | — | ||||||||||||||||||||||
Forfeited |
( |
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Outstanding at June 30, 2021 |
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Outstanding at January 1, 2022 |
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Granted |
— | — | ||||||||||||||||||||||
Forfeited |
( |
) | — | |||||||||||||||||||||
Exercised |
( |
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Outstanding at June 30, 2022 |
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For the six months ended June 30, |
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2021 |
2022 |
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Risk-free interest rate |
% | % | ||||||
Dividend yield |
% | % | ||||||
Expected volatility range |
% | % | ||||||
Exercise multiple |
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Contractual life |
For the six months ended June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Research and development expenses |
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Administrative expenses |
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For the six months ended June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Research and development expenses |
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Administrative expenses |
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For the six months ended June 30, |
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2021 |
2022 |
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RMB |
RMB |
US$ |
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(Note 2) |
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Numerator: |
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Net loss attributable to Gracell Biotechnologies Inc.’s shareholders |
( |
) | ( |
) | ( |
) | ||||||
Accretion of convertible redeemable preferred shares to redemption value |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net loss attributable to Gracell Biotechnologies Inc.’s ordinary shareholders |
( |
) | ( |
) | ( |
) | ||||||
Denominator: |
||||||||||||
Weighted-average number of ordinary shares outstanding—basic and diluted |
||||||||||||
Net loss per share attributable to Gracell Biotechnologies Inc.’s ordinary shareholders—basic and diluted |
( |
) | ( |
) | ( |
) |
For the six months ended June 30, |
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2021 |
2022 |
|||||||
shares |
shares |
|||||||
Share options and RSUs |
Name of related parties |
Relationship |
|||
Unitex Capital Ltd. |
For the six months ended June 30, |
||||||||||||
2021 |
2022 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
(Note 2) |
||||||||||||
Professional service fees incurred |
||||||||||||
Unitex Capital Ltd (a) |