2020 Q4 Form 10-K Financial Statement

#000165130821000039 Filed on February 25, 2021

View on sec.gov

Income Statement

Concept 2020 Q4 2020 2019 Q4
Revenue $100.1M $308.9M $56.89M
YoY Change 75.95% -27.87% -3.03%
Cost Of Revenue $151.9M $70.66M
YoY Change -0.75%
Gross Profit $509.6M $238.2M
YoY Change -33.28%
Gross Profit Margin 509.13% 77.12%
Selling, General & Admin $1.369B $600.2M
YoY Change 54.59%
% of Gross Profit 268.53% 251.95%
Research & Development $2.177B $1.295B
YoY Change 39.63%
% of Gross Profit 427.23% 543.57%
Depreciation & Amortization $178.0M $31.79M
YoY Change 70.75%
% of Gross Profit 34.92% 13.34%
Operating Expenses $3.716B $1.895B
YoY Change 44.05%
Operating Profit -$484.9M -$1.658B -$388.0M
YoY Change 24.97% 72.69% 38.19%
Interest Expense $7.476M $115.8M
YoY Change 162.85%
% of Operating Profit
Other Income/Expense, Net -$173.0K $37.49M
YoY Change 422.58%
Pretax Income -$3.199B -$1.618B
YoY Change 597.51%
Income Tax $80.33M -$17.67M
% Of Pretax Income
Net Earnings -$472.7M -$1.597B -$388.1M
YoY Change 21.82% 68.34% 44.66%
Net Earnings / Revenue -472.27% -517.01% -682.1%
Basic Earnings Per Share -$1.47
Diluted Earnings Per Share -$2.457M -$1.47
COMMON SHARES
Basic Shares Outstanding 1.183B shares 1.085B shares 788.3M shares
Diluted Shares Outstanding 1.085B shares

Balance Sheet

Concept 2020 Q4 2020 2019 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.651B $30.39B $982.7M
YoY Change 373.24% 342.66% -44.83%
Cash & Equivalents $1.382B $618.0M
Short-Term Investments $3.269B $24.05B $364.7M
Other Short-Term Assets $11.67M $788.2M
YoY Change 48.46%
Inventory $89.29M $582.6M $28.55M
Prepaid Expenses
Receivables $60.40M $394.1M $70.88M
Other Receivables $12.65M $182.8M $0.00
Total Short-Term Assets $4.961B $32.34B $1.173B
YoY Change 323.02% 295.4% -39.67%
LONG-TERM ASSETS
Property, Plant & Equipment $357.7M $2.559B $242.4M
YoY Change 47.56% 36.98% 54.34%
Goodwill $109.0K $109.0K
YoY Change 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $322.0M $0.00
YoY Change
Other Assets $113.1M $856.2M $68.46M
YoY Change 65.2% 43.71% 27.29%
Total Long-Term Assets $640.1M $4.225B $439.6M
YoY Change 45.6% 38.67% 43.73%
TOTAL ASSETS
Total Short-Term Assets $4.961B $32.34B $1.173B
Total Long-Term Assets $640.1M $4.225B $439.6M
Total Assets $5.601B $36.56B $1.612B
YoY Change 247.38% 225.72% -28.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $232.0M $2.129B $122.5M
YoY Change 89.37% 110.74% 8.13%
Accrued Expenses $346.1M $779.8M $163.6M
YoY Change 111.64% 90.77% 62.88%
Deferred Revenue $0.00 $0.00
YoY Change -100.0%
Short-Term Debt $335.0M $2.102B $0.00
YoY Change
Long-Term Debt Due 2.186B CNies $91.92M 0.000 CNies
YoY Change 21.85% -100.0%
Total Short-Term Liabilities $1.075B $7.013B $310.3M
YoY Change 246.49% 224.33% 25.91%
LONG-TERM LIABILITIES
Long-Term Debt 1.198B CNies $1.392B 580.0M CNies
YoY Change 106.59% 82.87% 1322.09%
Other Long-Term Liabilities $57.43M $2.821B $46.56M
YoY Change 23.34% 98.83% -4.53%
Total Long-Term Liabilities $656.3M $4.212B $323.6M
YoY Change 102.8% 93.26% 29.66%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.075B $7.013B $310.3M
Total Long-Term Liabilities $656.3M $4.212B $323.6M
Total Liabilities $1.732B $11.23B $633.9M
YoY Change 173.14% 152.18% 27.8%
SHAREHOLDERS EQUITY
Retained Earnings -$3.553B -$1.956B
YoY Change 81.65% 94.18%
Common Stock $118.0K $79.00K
YoY Change 49.37% 2.6%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.869B $25.34B $962.2M
YoY Change
Total Liabilities & Shareholders Equity $5.601B $36.56B $1.612B
YoY Change 247.38% 225.72% -28.33%

Cashflow Statement

Concept 2020 Q4 2020 2019 Q4
OPERATING ACTIVITIES
Net Income -$472.7M -$1.597B -$388.1M
YoY Change 21.82% 68.34% 44.66%
Depreciation, Depletion And Amortization $178.0M $31.79M
YoY Change 70.75%
Cash From Operating Activities -$2.424B -$1.283B
YoY Change 71.07%
INVESTING ACTIVITIES
Capital Expenditures -$298.2M $117.5M
YoY Change 31.13%
Acquisitions
YoY Change
Other Investing Activities $487.6M $2.025M
YoY Change
Cash From Investing Activities $189.4M -$3.168B
YoY Change -671.74%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $4.232B
YoY Change
Debt Paid & Issued, Net $132.1M
YoY Change 302.47%
Cash From Financing Activities 2.147B $5.203B
YoY Change 5972.39%
NET CHANGE
Cash From Operating Activities -2.424B -$1.283B
Cash From Investing Activities 189.4M -$3.168B
Cash From Financing Activities 2.147B $5.203B
Net Change In Cash -87.77M $769.2M
YoY Change -741.36%
FREE CASH FLOW
Cash From Operating Activities -$2.424B -$1.283B
Capital Expenditures -$298.2M $117.5M
Free Cash Flow -$2.126B -$1.401B
YoY Change 66.81%

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CY2019 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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CY2018 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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CY2020 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2019 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2020 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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CY2019 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
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CY2018 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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CY2020 us-gaap Comprehensive Income Net Of Tax
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CY2020 us-gaap Profit Loss
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0 USD
CY2018 bgne Amortization Of Research And Development Financing Liability
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0 USD
CY2020 us-gaap Income Loss From Equity Method Investments
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11826000 USD
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0 USD
CY2018 us-gaap Income Loss From Equity Method Investments
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0 USD
CY2020 us-gaap Deconsolidation Gain Or Loss Amount
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11307000 USD
CY2019 us-gaap Deconsolidation Gain Or Loss Amount
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0 USD
CY2018 us-gaap Deconsolidation Gain Or Loss Amount
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12311000 USD
CY2019 us-gaap Increase Decrease In Accounts Payable
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2224000 USD
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23470000 USD
CY2018 us-gaap Increase Decrease In Inventories
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CY2019 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2018 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2018 us-gaap Increase Decrease In Other Noncurrent Assets
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64030000 USD
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2319000 USD
CY2019 us-gaap Increase Decrease In Accrued Income Taxes Payable
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7566000 USD
CY2018 us-gaap Increase Decrease In Accrued Income Taxes Payable
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CY2020 us-gaap Increase Decrease In Contract With Customer Liability
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0 USD
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CY2018 bgne Increase Decrease In Operating Lease Liability
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CY2019 us-gaap Increase Decrease In Other Noncurrent Liabilities
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8482000 USD
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0 USD
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0 USD
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0 USD
CY2018 us-gaap Payments To Acquire Intangible Assets
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2635686000 USD
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2177207000 USD
CY2020 bgne Payments To Purchase In Process Research And Development
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109500000 USD
CY2019 bgne Payments To Purchase In Process Research And Development
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69000000 USD
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70000000 USD
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CY2019 us-gaap Net Cash Provided By Used In Investing Activities
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554163000 USD
CY2018 us-gaap Net Cash Provided By Used In Investing Activities
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-637613000 USD
CY2020 us-gaap Proceeds From Issuance Initial Public Offering
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0 USD
CY2019 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
0 USD
CY2018 us-gaap Proceeds From Issuance Initial Public Offering
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757587000 USD
CY2020 bgne Proceeds From Common Stock Issuance And Initial Public Offering
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0 USD
CY2019 bgne Proceeds From Common Stock Issuance And Initial Public Offering
ProceedsFromCommonStockIssuanceAndInitialPublicOffering
0 USD
CY2018 bgne Proceeds From Common Stock Issuance And Initial Public Offering
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CY2020 us-gaap Proceeds From Issuance Of Common Stock
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CY2019 us-gaap Proceeds From Issuance Of Common Stock
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0 USD
CY2018 us-gaap Proceeds From Issuance Of Common Stock
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0 USD
CY2020 bgne Proceeds From Research And Development Financing Liability
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CY2019 bgne Proceeds From Research And Development Financing Liability
ProceedsFromResearchAndDevelopmentFinancingLiability
0 USD
CY2018 bgne Proceeds From Research And Development Financing Liability
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CY2020 bgne Payments To Acquire Interest In Joint Venture Financing Activities
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CY2019 bgne Payments To Acquire Interest In Joint Venture Financing Activities
PaymentsToAcquireInterestInJointVentureFinancingActivities
0 USD
CY2018 bgne Payments To Acquire Interest In Joint Venture Financing Activities
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0 USD
CY2020 us-gaap Proceeds From Issuance Of Debt
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CY2019 us-gaap Proceeds From Issuance Of Debt
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67489000 USD
CY2018 us-gaap Proceeds From Issuance Of Debt
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42315000 USD
CY2020 us-gaap Repayments Of Debt
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CY2019 us-gaap Repayments Of Debt
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CY2018 us-gaap Repayments Of Debt
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8736000 USD
CY2020 us-gaap Proceeds From Minority Shareholders
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0 USD
CY2019 us-gaap Proceeds From Minority Shareholders
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4000000 USD
CY2018 us-gaap Proceeds From Minority Shareholders
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0 USD
CY2020 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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CY2019 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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47004000 USD
CY2018 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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29662000 USD
CY2020 us-gaap Net Cash Provided By Used In Financing Activities
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5202826000 USD
CY2019 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
85680000 USD
CY2018 us-gaap Net Cash Provided By Used In Financing Activities
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1690537000 USD
CY2020 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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18231000 USD
CY2019 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-9512000 USD
CY2018 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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-4096000 USD
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
769230000 USD
CY2019 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-119938000 USD
CY2018 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
501111000 USD
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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620775000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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740713000 USD
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
239602000 USD
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1390005000 USD
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
620775000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
740713000 USD
CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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1381950000 USD
CY2019Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
618011000 USD
CY2018Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
712937000 USD
CY2020Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
307000 USD
CY2019Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
288000 USD
CY2018Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
14544000 USD
CY2020Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
7748000 USD
CY2019Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
2476000 USD
CY2018Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
13232000 USD
CY2020 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
10596000 USD
CY2019 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
8984000 USD
CY2018 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
12361000 USD
CY2020 us-gaap Interest Paid Net
InterestPaidNet
44130000 USD
CY2019 us-gaap Interest Paid Net
InterestPaidNet
4315000 USD
CY2018 us-gaap Interest Paid Net
InterestPaidNet
2209000 USD
CY2020 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
42762000 USD
CY2019 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
29086000 USD
CY2018 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
22105000 USD
CY2020 bgne Purchaseof Inprocessanddevelopment Includedin Accounts Payable
PurchaseofInprocessanddevelopmentIncludedinAccountsPayable
0 USD
CY2019 bgne Purchaseof Inprocessanddevelopment Includedin Accounts Payable
PurchaseofInprocessanddevelopmentIncludedinAccountsPayable
0 USD
CY2018 bgne Purchaseof Inprocessanddevelopment Includedin Accounts Payable
PurchaseofInprocessanddevelopmentIncludedinAccountsPayable
19000000 USD
CY2020 bgne Adjustmentsto Changesin Operating Assetsand Liabilities
AdjustmentstoChangesinOperatingAssetsandLiabilities
0 USD
CY2019 bgne Adjustmentsto Changesin Operating Assetsand Liabilities
AdjustmentstoChangesinOperatingAssetsandLiabilities
0 USD
CY2018 bgne Adjustmentsto Changesin Operating Assetsand Liabilities
AdjustmentstoChangesinOperatingAssetsandLiabilities
2291000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
684231000 USD
CY2018 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
87127000 USD
CY2018 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
29662000 USD
CY2018 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
1655000 USD
CY2018 us-gaap Profit Loss
ProfitLoss
-674033000 USD
CY2018Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1753647000 USD
CY2019 us-gaap Noncontrolling Interest Increase From Subsidiary Equity Issuance
NoncontrollingInterestIncreaseFromSubsidiaryEquityIssuance
4000000 USD
CY2019 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 USD
CY2020Q4 bgne Product Candidate
ProductCandidate
3 product
CY2020Q4 bgne Products In Commercial Or Clinical Development
ProductsInCommercialORClinicalDevelopment
45 product
CY2018 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 USD
CY2019 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
47004000 USD
CY2019 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
134154000 USD
CY2019 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-9872000 USD
CY2019 us-gaap Profit Loss
ProfitLoss
-950578000 USD
CY2019Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
978355000 USD
CY2020 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
2069610000 USD
CY2020 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
93101000 USD
CY2020 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
1000 USD
CY2020 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
183481000 USD
CY2020 us-gaap Noncontrolling Interest Decrease From Deconsolidation
NoncontrollingInterestDecreaseFromDeconsolidation
3545000 USD
CY2020 us-gaap Minority Interest Decrease From Redemptions
MinorityInterestDecreaseFromRedemptions
28715000 USD
CY2020 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
15071000 USD
CY2020 us-gaap Profit Loss
ProfitLoss
-1600523000 USD
CY2020Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3869243000 USD
CY2020Q4 bgne Number Of Molecules
NumberOfMolecules
10 molecule
CY2020Q4 bgne Number Of Persons
NumberOfPersons
1600 people
CY2020 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 USD
CY2020Q4 dei Entity Number Of Employees
EntityNumberOfEmployees
5300 employee
CY2020Q4 us-gaap Number Of Countries In Which Entity Operates
NumberOfCountriesInWhichEntityOperates
14 country
CY2020 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to, estimating the useful lives of long-lived assets, estimating variable consideration in product sales and collaboration revenue arrangements, identifying separate accounting units and the standalone selling price of each performance obligation in the Company’s revenue arrangements, estimating the fair value of net assets acquired in business combinations, assessing the impairment of long-lived assets, valuation and recognition of share-based compensation expenses, realizability of deferred tax assets, estimating uncertain tax positions, valuation of inventory, </span></div>estimating the allowance for credit losses, determining defined benefit pension plan obligations, measurement of right-of-use assets and lease liabilities and the fair value of financial instruments. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.
CY2018 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
0 USD
CY2020 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
0 USD
CY2019 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
0 USD
CY2020 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
CY2020 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration of Risks</span></div><div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Concentration of credit risk</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that are potentially subject to credit risk consist of cash and cash equivalents and short-term investments. The carrying amounts of cash and cash equivalents and short-term investments represent the maximum amount of loss due to credit risk. As of December 31, 2020 and 2019, $1,381,950 and $618,011 were deposited with various major reputable financial institutions located in the PRC and international financial institutions outside of the PRC. The deposits placed with financial institutions are not protected by statutory or commercial insurance. In the event of bankruptcy of one of these financial institutions, the Company may be unable to claim its deposits back in full. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. As of December 31, 2020 and 2019, the Company had short-term investments amounting to $3,268,725 and $364,728, respectively.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">At December 31, 2020, the Company’s short-term investments were comprised of U.S. treasury securities. The Company believes that U.S. treasury securities are of high credit quality and continually monitors the credit worthiness of these institutions.</span></div><div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Customer concentration risk</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For the year ended December 31, 2020, sales to the Company's two largest product distributors, China Resources and Sinopharm, represented approximately 38.7% and 25.4% of product revenue, respectively, and collectively, represented approximately 59.6% of total accounts receivable as of December 31, 2020.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For the years ended December 31, 2019 and 2018, substantially all of the Company's revenue was from BMS and the Company's product distributor, China Resources, in China.</span></div><div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Business, customer, political, social and economic risks</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company participates in a dynamic biopharmaceutical industry and believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations, or cash flows: changes in the overall demand for services and products; competitive pressures due to existing competitors and new entrants; advances and new trends in new drugs and industry standards; changes in clinical research organizations, contract manufacturers and other key vendors; changes in certain strategic relationships or customer relationships; regulatory considerations; intellectual property considerations; and risks associated with the Company’s ability to attract and retain employees necessary to support its growth. The Company’s operations could be also adversely affected by significant political, economic and social uncertainties in the PRC and in relations between the PRC and United States.</span></div><div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Currency convertibility risk</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">A significant portion of the Company’s expenses, assets and liabilities are denominated in RMB. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily </span></div><div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">convertible into U.S. dollar or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approvals of foreign currency payments by the PBOC or other institutions require submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market.</span></div><div style="margin-bottom:9pt;margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Foreign currency exchange rate risk</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Since July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For RMB against U.S. dollar, there was appreciation of approximately 6.3%, depreciation of approximately 1.3% and depreciation of approximately 5.7%, in the years ended December 31, 2020, 2019 and 2018. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">To the extent that the Company needs to convert U.S. dollar into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends on ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. In addition, a significant depreciation of the RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of the Company’s earnings or losses.</span></div>
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