Burning Rock Biotech Limited

Ladies and gentlemen, thank you for standing by and welcome to the Burning Rocks 2020 Second Quarter Earnings Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intents, plans, beliefs, estimate, target, confident, and similar statements. Statements that are not historical facts, including statements about Benningroth's beliefs and expectations, are fault-looking statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors. all of which are difficult to predict and many of which are beyond Burning Rock's control. Fault-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Burning Rock does not undertake any obligation to update any fault-looking statement as a result of new information, future events, or otherwise except as required under applicable law. And now I'd like to hand the conference over to the management team of Burning Rock. Thank you. Please go ahead.

Good morning and good evening, everybody. This is Leo, Chief Financial Officer of Burning Rock. I have today with me our founder and CEO, Yusheng. I have our Chief Operating Officer, Shannon, and myself. The three of us will be presenting and answering your questions today. So I'd like to pass on to our founder and CEO, Yusheng, please.

Good evening, ladies and gentlemen. This is Yusheng Han, founder and CEO of Earning Lab. Welcome to our first Earning Call today. We are delighted to be listed in NASDAQ in June this year and broaden our shareholder base to include many experts in the industry across both Asia and U.S. We actually celebrate our IPO by having an evening of social events and followed by three full days of management discussion and planning sessions. We do have much to do on our two business areas, which are therapy selection and early reaction. We started therapy selection when we were founded in 2014, and now we have become the market leader in terms of R&D, market share, and registration. and we provide high quality of products, which I think that Shannon might mention later on for the FE2C study initiated by the US FDA. We have, I mean, US FDA has a comparison among Burn Log and the other top peers in the world and our performance was quite good. and we are also strong in registration. The first NGS case was on college. We got it approved in 2018 and we know a lot about the registration in China. And also we have a strong sales channel covering over 600 hospitals in China. And in terms of the business model for therapy selection, the two models, the first one is the central lab, which is similar to World Foundation of Medicine and Garden Health doing in-virus. I mean, they collect the samples from the prescription from the doctors and do the lab in our central lab. And the other model is in-hospital model. We sell the whole NGS platform into the hospital and continuously to sell the region and consumables to the hospital. And they do the test in their own site. And this is quite unique if you want to compare it with the U.S. situation. Because most of the top hospitals in China want to have their own platform. and we are quite successful in that model and it grows faster than the central lab model. And also in the in-hospital model, we take around 80% market share. But four years ago, we realized that the combination of MGS, machine learning and epigenomics lead far more beyond just therapy selection. We can combine them to lead to early detection for PEN cancer. So we started our R&D efforts on early detection four years ago using the technologies I mentioned above. And in the last four years, we have already accumulated 8,000 samples in different types of cancers. The promising results we obtained gave us strong confidence. So in May this year, We started the PREDICT trial. There's a clinical trial called PREDICT. This is a pan-cancer prospective trial that will test 14,000 patients in the coming three years. We're looking forward to that. So this is generally what we're doing. I'm going to pass it to our CEO, Shannon Chai, to talk about more in detail. Shannon?