Genetron Holdings Limited

Good day and thank you for standing by. Welcome to the Genetron Holdings Limited Conference Call. At this time, all participants are in 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 call is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to our first speaker today. Hoki, Luke, please take over back.

Hello, everyone, and welcome to Gintron Health's fourth quarter and full year 2020 earnings conference call. The company's earnings release was issued earlier today and is available on the company's IR website. During this call, the company was making some forward-looking statements regarding future events and results. These statements are made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Statements that are not historical facts, including statements about GeneTron Health's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in GeneTron Health's filing to the FCC. All information provided today is as of the date of this call, and GeneTron Health does not undertake any obligation to update any forward-looking statement, except as required under applicable law. With respect to any non-IFRS measures discussed during today's call, the company's reconciliation information related to those measures can be found in the earnings relief issued earlier today. Allow me to introduce the management team on the call today. Susan Wang, co-founder and CEO of Chinchuan Health. We'll recap some of our recent announcements and discuss upcoming milestones. Dr. Yunfu Hu, our chief medical officer, will speak about our new HCC data and plans for this asset. Dr. Yu Chengzhao, our CTO, will go over our early screening technology and strategy. Kevin Xu, our CFO, will provide financial highlights related to the fourth quarter and full year results outlined in today's release, in addition to 2021 revenue outlook. Following management's prepared remarks, we'll open up the call to questions. Our co-founder and chief scientific officer, Dr. Hai Yang, will also be available to answer questions. With that said, I would now like to turn the call over to Mr. Susan Wang, CEO of Genetron Health. Susan, please go ahead.

Thank you, Hokie. Hello, everyone. Thank you for joining our fourth quarter and full year 2020 earnings conference call. I would like to direct you to the supplemental earnings presentation on our investor relations website and begin on slide two. In this past year, Jinchuan continued to solidify our position as a leading precision oncology company in China with a comprehensive portfolio that covers the entire spectrum of cancer management. addressing needs and challenges from early screening, diagnosis and treatment recommendations, as well as continuous disease monitoring and care. If you turn into slide five, throughout 2020, despite challenges brought on by the COVID-19 pandemic, Jinchuan delivered strong financial results. We were excited to successfully complete our IPO on NASDAQ while making significant commercial and clinical progress across all of our business lines. Our total revenue grew by 31 percent year-over-year to remain the 425 million in 2020. We were pleased with acceleration in year-over-year growth during the second half of the year, after reporting 28 percent year-over-year growth in the first half of 2020. cells from HCC screen, our most advanced early screening product for hepatocellular carcinoma, which is currently commercialized as LDT service in China, as well as our IVD revenue, notably our S5 instruments and lung eight assay, both grow significantly. Moreover, our robust revenue growth was accompanied by strong margin improvements. improved SG&A operational efficiencies, and the resulting narrow losses compared to year 2019. Given a series of key announcements in the past months in HCC screen, I would like to spend the next few minutes to focus on this exciting asset of ours. So let's move to slide seven. So just yesterday, we announced exciting new data of 1,615 patients from our prospective cohort study of an HTC screen, in which we reported data that has better sensitivity and comparable specificity versus the current standard of care. Yunfu will go into the details in a little bit. Recall that HTC screen is powered by GeneConstant innovative and proprietary mutation capture technology, which enables detection of multiple methylation alterations in parallel with mutations in cell-free DNA from blood samples. HCC screen is the first product out of this platform, and we are pleased to see all the progress we have made. As you may know, liver cancer is endemic in China, accounting for almost half of the global instances, with over 350,000 annual new cases and deaths, respectively, and it's estimated that among that 120 million high-risk liver cancer population in China, around 74 million were HPV carriers. The potential market opportunity of an HCC screen is massive, with an estimated time of over $7 billion, according to Frost and Sullivan Research. We are excited about the market potential of an HCC screen, but more importantly, we're also very proud that we're contributing to address the critical unmet need that could benefit hundreds of thousands of patients that save many lives and alleviate societal burdens. The market environment of early screening and detection also continues to be promising. The Chinese government remains supportive around policies and initiatives that focus on early detection and treatment. A few months ago, we announced that HCC screen was selected by the National Cancer Center in China and the Wuxi municipal government for use in its public health initiative, of which Wuxi is committed to administering 150,000 tests over a period of three years for its local residents who are high-risk individuals for HCC. This project has kicked off in the fourth quarter of last year, allowing us to realize some of the test orders in our revenue. This pilot model set us off a good path for future commercialization and reimbursement roadmaps. More importantly, we are generating large-scale real-world data from this collaboration, which offers tremendous strategic value as we continue the progress on expanding our early screening pipeline beyond liver cancer. We are advancing in digestive and lung cancer assay development, and we look forward to sharing some early data in colorectal cancer this year. Also, in early 2021, we established an exclusive strategic partnership for HCC Screen with Shenzhen Tianqing, a subsidiary of Sino-Bao Pharma, to co-promote HCC Screen in the hospital market. In China, Shenzhen Tianqing has an estimated 30%-plus market share in hepatitis antiviral drugs, a sales team of over 7,000 reps. and a network of over 2,000 general and liver disease-focused hospitals. Since the announcement, the teams from both companies have already set up a dedicated group to focus on initial rollout to about 50 to 100 hospitals. We expect this partnership to become more productive and allow us to launch HCC screen effectively into the key hospitals over the next few quarters. With these developments, in addition to our partnership with ICOM. Jingcheng has now covered the major market segments, including hospitals, procurement contracts, and the medical exam centers, which we expect to really help us ramp up our HCC screen revenue this year and beyond. So let me now pass the call to Yunfu, who will discuss our new HCC screen data that we just reported. Yunfu?