Burning Rock Biotech Limited

Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meanings 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, expect, anticipates, future, intends, plans, believes, 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 market 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 Rock's control.

Statements This is my turn. Hello.

Okay. This is Yu-Sheng Han from Burning Rock. I'm the CEO and founder. And today you also have our CFO Leo Li and our CTO Zhou Zhang online. And today we have a A brief introduction of recent progress, and then I will head on to Leo talking about the financials and then Joe talking about our pipeline program. So, let's turn to page 3, which shows that we're burning rock. We're putting rock 3 and we started from therapy selection and expect to expand it to. early detection, MRD, and biopharma business. And so far, that's our business construction. And let's turn to page four, which is the page that I think most of the investors care about most. That's about breakeven. And we set a goal to breakeven in terms of non-GAAP profit minus SGMA. And we say that in Q2 this year, we have the first time in Burning Rock to reach the goal. Well, in Q3, actually, there is some interest industry disruption. You know that even most of the medical conferences or meetings would hold an anomaly. So in Q3, there's a little bit impacted by this event. And the profits dropped to the negative part, which is the negative 8.9 million RMB. But we are still moving to the break-even level. especially I think that this kind of volatility will pass by the end of this year. So let's turn to page five that we set a goal to break even sometime this year. And we think that we are moving toward that direction very firmly and without without the disruption. And in terms of the therapy selection, despite of the industry disruption, we still continue to growth for the in-hospital model, which means that the in-hospital revenues has 10% year-on-year growth. And the part that has been impacted was the central lab model. In MRD, we have a strong clinical validation publications with the METL study for lung cancer published in Cancer Cell, which is a big milestone for our MRD study. And we know that the other studies, for example, like colon cancer and oesophageal cancer, are on the way. uh you know the struggling time of of capital market for bio farmers we still have a strong growth showing our system systematic value of burning rock with revenue growth of 31 year-on-year and our backlog still keeps growing and one thing to mention is that we just signed a cdx contract with BI. In terms of early detection, there is a big milestone for that. We've got a breakthrough device designation granted by China National Medical Products and Nutrition, which is NIMPA. And we are the only, our multi-cancer early detection product is the only test that has received BDD from both FDA and NIMHA. And let's turn to page six to explain how the industry volatility impact our volume. You can see that the central lab model has been impacted negative 31%, while for in-house model is still growing. in terms of volume. And that actually impacts our competitors much more than Burning Rock, because Burning Rock is the only company that's in-house with a model that represents more than half of our revenues. And then I'll turn to Leo about our financials.