Burning Rock Biotech Limited

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 US Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, beliefs, estimates, target, confident, and similar statements. Statements that are not historical facts, including statements about Burning Rock's beliefs and expectations are forward-looking statements. Such statements are based upon management's current expectations and current markets and operating conditions, and relate to events that involve known or unknown risk. uncertainties and other factors all of which are difficult to predict and many of which are beyond burning rocks control forward-looking statements involve risks and certainties and other factors that could cause actual results to differ materially from those contained in any such statements burning rock contains not undertake any obligation to update any forward-looking statements as a result of new information future events or otherwise, except as required under applicable law. I would now like to hand the conference over to your speaker today, Mr. Han, the CEO. Please go ahead.

Thank you. And welcome to Burning Rock's 2022 Annual Conference Call. I'm Yusheng Han, CEO and founder of Burning Rock. Today, we also have our CTO, Zhou Zhang, and CFO, Leo Li. So now let's turn to page three. In case there are some investors who are not familiar with Burning Rock, I hereby illustrate what we do. So our business started from tissue-based therapy selection in 2014 and then expanded to multi-directions of liquid biopsy, including liquid-based therapy selection, MRD, multi-cancer early detection, and we have three business units. providing products and services to doctors, farmers, and consumers. Now let's turn to page four. So in this page, we will have a review of 2022. For the general view of our company, we completed profitability-driven organization optimization. the overall headcount have been optimized by 25%. And in that case, we still deliver strong growth in non-COVID quarters and achieved 11% year-on-year growth in 2022. And we completed a listing on London Stock Exchange, offering an alternative listing venue in addition to Nasdaq. We believe that this is a significant corporate development as it provides a fallback solution to facilitate continued trading and listing of shares in case of a delisting scenario of ADRs on NASDAQ. We also noted that the latest statement from the SEC in December, that as of now, there is no risk of Chinese issuers getting delisted, which is good for us. For therapy selection, we achieved 13% volume growth despite COVID challenges driven by in-hospital channel. And the nine genes panel was approved by NIMPA, providing a better weapon for in-hospital model. This is our second approved NGS-based test by the NIMPA and demonstrating our capability of working with NIMPA to bring innovative diagnostic product to the market. For MRD, 2022 was a big year in terms of clinical data publication. We provided the initial readout on lung and colon cancer at AACR 2022, followed by additional publications on colon and pancreatic cancer at ASCO 2023. We also expected additional publication on lung this year at AACR And commercially, we launched our BR profit, our personalized MRD product in March. And the volume of patients that were serving keep increasing at very good speed. For Bell Pharma, the new contract value increased 43% to RMB 263 million in 2022. And over 200% revenue growth on strong backlog execution. And for MRD, Oversea was granted FDA breakthrough device designation and standard study for six cancer tests. Development was published on annual of oncology. It's a journal with an impact factor of 51, and it's another strong proof of our technology and product. The problem is a study which is around, which is exactly 2,035 subjects, nine cancer test development completed and read out. Predict and present study, almost 17,000 subjects, 22 cancer test development is ongoing. And prevent study, which is a prospective study of a safe cancer test was launched last year. And our CTO Joe Zhang will illustrate more about our early detection study. And now let's turn to page five. This page shows what Burning Rock aimed to achieve in 2023. The number one goal is profitability. The goal we set is to break even, excluding R&D during a quarter in 2023. The main reason is that in 2023 and 2024 is still a big year for MCED R&D development. The second goal is continued revenue growth. A healthy increase with probability is what we want to achieve. Our initial outlook for 2023 revenue growth rate is at 20%. And the third goal is to further our leading position in MCED as number one player in China and a top player globally. The main R&D spend asset set will focus on MCED this year. And let me break down the goals into four parts. For therapy selection, will continue to improve the sales productivity by strengthening the in-hospital model. And for MRD, launch and install personalized MRD in top hospitals. Due to the operation difficulties of personalized MRD, it is very challenging to install this method in hospital. However, since more and more hospitals control the outstanding of tissue samples and MRD baseline needs tissue samples, only an in-hospital model can bring the volume of MRD to the next level. And thanks to the efforts of our R&D and operation team, we will be able to launch the in-hospital model of BR-PROFIT in the near future. I believe it will be a strong engine for Burning Rock, OncoBio, and start to impact in Q4 this year. For BioPharma, the goal is to continue its profitable growth. With the new platform of MRD and more international orders, we are optimistic to the growth of BioPharma business. Prevent study, which is a prospective study of over 10,000 subjects, will have an interim readout in second half year of 2023. We will continue the development study of 22 cancer tests in predict and present. Also, we are building the regulatory pathways with FDA and NIMPA, especially NIMPA. The commercialization will go on as selected top hospitals. Let's turn to page six. I know that investors care about our financial status. I would say Apple will elicit more later on. But on this page, I just want to show that we are doing a great effort to reduce the burn rate. If there's no more big scale clinical trials of MCED, the burn rate will significantly decrease in the coming two years. And if there is a new trial started, especially under NIMPA registration, I think that will be even better news. So that's what I want to present today. And I will pass the presentation to Joe to talk about our technologies and trials of MCD and MRD. Joe, please.

Thanks, Yusheng.