Sisram Med Ltd

Leaders Management. We can start. Good afternoon, investors and analysts. Welcome to SysRomatic's H1 2016 Interim Adults Earning Call. Today we will share with you the operating results of our company's key business progress and future development strategy for H1 this year. We have the management, including Mr. Lior Moshe Dayan, Chairman, Mr. Eyal Ben David, CEO, Mr. Jiahong Li, Co-CEO and CFO. I'm your moderator. Fan Hui, Director of IRIRD. This event is equipped with simultaneous invitation. Participants may listen on either English or Chinese channel. The first senior executives will share their remarks, followed by Q&A. We welcome your questions. Now, let's welcome Mr. Liu, our chairman, to begin. Please go ahead, Liu.

Good day, everyone. Thank you very much for joining. As we open today's call, I'd like to share the board's perspective on the industry's direction and Cicerum's place within it. The fundamentals of medical aesthetics remain strong. Patient awareness is rising, treatment adoption is broadening, more medical professionals are entering the field, and innovation remains vibrant across technologies, injectables, and digital solutions. As the industry matures, the source of competitive advantage is changing with it. It is no longer about any single product. It's increasingly about the ability to deliver integrated solutions, execute consistency, and create long-term value across categories, technologies, and markets. That is why CISRM has spent the past several years building and why we will believe we are well positioned for the industry's next phase. Our international performance outside North America was a clear highlight in the first half, with strong demand across Asia Pacific, Europe, and the Middle East. Asia Pacific is now our largest and fastest growing region and is increasingly central to the company's future. It is where some of the most significant long-term growth opportunities in our industry are developing and we continue to strengthen our position across the region. At the same time, we recognize that performance in North America and the pressure on profitability require focused attention. The board and management are aligned on the need to improve execution, increase efficiency, and ensure that our cost structure and investments are appropriately aligned with the market conditions. Underneath these results is a business of real and enduring strength, a diversified global footprint that gives us both resilience and reach, a strong core business, and unwavering commitment to innovation. The first half also demonstrated something important about evolution of Cicero. We're no longer defined by a single category. Our injectables business is developing into a meaningful second growth engine, while core energy-based device business continues to provide the foundation of the group. At the same time, we continue to develop the diagnostic, digital, and personalized skincare capabilities that support our broader integrated ecosystem strategy. What is encouraging to the board is not only where we see growth, but the quality and the durability of the business we are building. We are making deliberate choices today that strengthen the company for the long term, balancing current performance with investments needed to expand our relevance, deepen our customer relationships, and build a more resilient and diversified business. That balance between ambition and discipline is central to how we think about CISROM's next chapter. At board level, we remain closely engaged in shaping long-term strategy, overseeing execution, and ensuring disciplined capital allocation. We also have full confidence in the executive team and will continue to support management as it addresses the areas requiring improvement while advancing the company's strategic priorities. Looking ahead, we will continue to strengthen our presence in the markets that matter most, develop our next growth engines and pursue the opportunities created by rapidly evolving industry. We believe CISROM is well positioned to capture the long-term opportunities ahead, provided we continue to combine ambition with disciplined execution. On behalf of the board, my thanks to the management employees and the employees for their dedication and our shareholders and partners for their continuous trust. With that, I will hand the call over to our CEO, Mr. Eyal Ben David.

Thank you, Lior, and thank you all for joining us today. The first half of 26 was an important period for Cicero. Energy-based innovation has entered a phase of real advancement and we intend to lead it by building treatments that are more precise, personalized, and more closely aligned with the body's own mechanisms. That positioning shows up where it matters the most, in demand. For the first six months, we delivered revenue of 171.4 million, reflecting 3.6% year over year, supported by better sales productivity, disciplined operations, and stronger production. Let me be direct about profitability. This was a largely strategic reflecting investment needed for us to build our injectable business in China and launch Seastrom's first pharmaceutical product, including meaningful investment in our organization, commercial team, and go-to-market execution. We see it as an investment in a second growth engine that will serve us for years to come. Turning to the regions, our international markets outside North America grew 16.7% to $127 million, led by mainland China, Thailand, Japan, and Hong Kong, while Europe grew by 12% to $26.7 million. North America declined overall, reflecting continued softness in the US. However, we're addressing these, improving our sales productivity, discipline execution, and stronger operational support. While our Canada operation grew 20% year over year, provides an early indication of our potential for the regional recovery. Looking at our energy-based platforms, they continue to lead. they remain the foundation on which the rest of our model is built. The products hybrid and Soprano families and specifically Alma Harmony continued to generate strong global demand supported by improved sales productivity and focused commercial execution across key markets. During the period, we launched Soprano Titanium in Thailand and Harmony Excel in mainland China, strengthening our premium energy-based platform and offering and reinforcing our position with leading practitioners worldwide. Every platform we place is a multi-year customer relationship rather than a one-time sale. It generates recurring revenue through consumables and protocols and it opens the account for injectables and for our AI tools later on. We manage the portfolio to protect that. A steady launch cadence, firm premium positioning, and protocols that keep practitioners on our platforms rather than switching to the competitor. Injectables are accelerating as our second growth engine. This is where much of the first half investment is going. The segments keep building momentum, led by DAXify, commercial milestones in mainland China and Profilo's continued strength in Thailand. In China, DAXify sustained strong commercial momentum during the period, with cumulative shipments surpassing 30,000 bales as of June 30. In 26, the coverage reaching more than 500 premium medical aesthetic clinics across 28 different provinces. This gave us a strong commercial base from which we dip in our penetration among high quality clinics, drive repeat ordering, and build benchmark sites that support broader adoption. Injectables present one of the largest, most attractive revenue Expanding in this category gives CISRAM an important additional channel alongside our EBD platforms. Together with EBD platforms, this broadness, the way we serve clinics and customers, strengths our integration offering and positions us to capture greater share of the demand over time. We are scaling in sequence, establishing Daxify in our largest market first, then extending the model market by markets as our commercial and regulatory footing is in place. Our AI-enabled ecosystem is gaining traction. AlmaIQ and Alma Universe skinned by Alma has shown strong retention and repeat orders in pilot markets, reinforcing our conviction that personalization and AI will play a defining role in the future of aesthetics. Recognition of Alma-IQ and AI-powered diagnostics capabilities together with continued momentum of Universe Skin by Alma in the US market reflects the growing demand for solutions that connect diagnosis, treatment, and skincare into a seamless patient experience. Because we believe the future of aesthetics will be defined by AI, we are building for it now. A broader international rollout is coming in the second half, extending this personalized ecosystem across the full patient journey. Behind all of this is an organization we have worked hard to sharpen and establish. During the period, we ran comprehensive manufacturing ramp-up, expanding our capacity, improving our planning, and shortening the lead time for our high-value platforms while keeping inventory disciplined. In June, we reached a defining moment in our glocalization strategy when our Beijing facility produced the first Building in a market is how global company creates local impacts. It puts our technology closer to particular practitioners, reflects local clinical and regulatory needs. And the anchors are APAC ambitions with supply chain built for the growth we see. At the same time, we continue to strengthen our foundations of our future innovation. We've invested $8.5 million in R&D. We welcomed Eran Shor as our EVP of R&D and further optimized development organization to accelerate strategically important programs. Our teams advance a broad clinical and innovation agenda with 24 clinical and preclinical studies conducted to date, including four new studies initiated during the period. We also continue to expand and protect our IP portfolio through new patent fillings, granted patents, and trademark registrations, reinforcing the long-term competitiveness of our technology platform. Looking ahead, we enter the next phase with momentum and demand holds. Our platforms land injectable scale and the ecosystem we have described for years begins to show up in real customer behavior. Our priorities follow that momentum to strengthen the energy-based device portfolio and expand across high growth markets, particularly in APAC. to accelerate Duxie in mainland China and to scale Alma-IQ and Universe Skin internationally, to grow in the fast-moving hair growth segment, and to deepen our localization in China while pursuing targeted ecosystem-aligned acquisitions that strengthen our pipeline. My thanks go out to our shareholders, partners, customers, and employee whose dedication drove our progress in the first half and leave Systrom well positioned to deliver long-term growth and shareholder value. To walk you through the operations and financials in more detail, I will now hand over the call to our co-CEO and CFO, Jiahong Li. Thank you, Jiahong.

Thank you, Benda. Good afternoon, everyone. And thank you for joining CISRAM's 2026 Interim Result Call. I will cover our first half results and plans for three angles. First, our production operation and strategic execution. Second, key financial performance. And third, our priorities going forward. Let me begin with global production operations and strategic execution. Our Israeli manufacturing base ran smoothly throughout the first half. As global markets accelerate their shift toward multi-energy, multi-application platforms, we expand the capacity and upgrade the production lines. At the same time, we refine production scheduling, supply chain management, and end-to-end quality control, shortening delivery lead times for our flagship devices. Our global fulfillment and supply chain have improved significantly, positioning well to meet rising demand over mid-long term. Concerning Med Ltd's political risks, their actual impact on our first half operation were minimal and limited, almost entirely to logistics. Our risk-ready team has rolled out comprehensive contingency measures that give us the ability to adjust the production, shipping, and staffing in real time. This proactive approach has protected our employees, sustained supply chain stability, and kept external disruption to a bare minimum. Today, our Israeli manufacturing facility and all global subsidiaries are operating without interruption. These outcomes clearly demonstrate our operational resilience and the strengths of a risk management framework. On after-sales service, we continue to optimize our global service network with particular focus on shortening repair turnaround times, improving maintenance efficiency, and enhancing delivery reliability. Service business profitability also improved, taken together. Disoperation enhanced across production capacity. Delivery and after-sales have formed a virtuous close-through improvement cycle. providing a solid foundation for revenue growth. The first hot market marked a major milestone in our localization roadmap. In June 2026, our Mi Yun manufacturing facility in Beijing officially commenced production and the first locally assembled Elmariju rolled off the line. Backed by strong clinical results in anti-aging and skin rejuvenation, the product has gained widespread recognition across China spent on both the medical aesthetics and live aesthetic segments. The Mi Yun facility strictly follow the production standards and quality control system of our recently basis. Drawing on the case of manufacturing expertise while upgrading local capacity and processes is commissioning signal to transition our China localization business into scale operation. Going forward, we will build end-to-end coordination across the manufacturing supply chain sales and after sales. This ensures stable supply in China, LIA Foundation for expanding local production pipeline for the strengthening CISRAM differentiated competitive across APEC. That covers operating performance. Let me turn to financial results. In the first half, 2026, despite continued pressure in North America, Overall revenue grew 3.6% year-on-year, supported by solid performance from our international operations and injectable business. Second quarter revenue accelerated both year-on-year and sequentially, and the quarterly trend continued to improve. This once again demonstrated the resilience inherent in our diversified geographical and product category mix. International markets outside North America performed particularly well, with revenue up by 16.7%, Apex share increased to 45% by 19.1%, making our most important regional market, Europe and Middle East, also a strong momentum. By business segment, EBD revenue was US$134 million, down by 2.5% year-on-year, mainly due to North America. Excluding NA, international EBD revenue increased by 7.2% year-on-year, showing the underlying global demand for our core EBD platform remaining solid. Injectable revenue reached US$22.2 million, up by 54.2% year-on-year, with the share of global revenue rising from 8.7% in 2025 to 12.9%. Growth has also driven primarily by Darcy Fee's commercial role at Mainland China and ProHelo's strong performance in Thailand. We now established solid dual-engine growth model EBD and injectables. Going forward, we'll keep EBD at the core of the rollout of more localized EBD products While accelerating jettable business expansion through deeper Dacifi channel penetration in mainland China is advancing registration approval of ProHelo and other pipeline products. This effort will enrich our wellness solution, optimize the revenue mix, and further enhance overall resilience against market risk. On cost control, we continue a disciplined and prudent approach. Operating expenses rose 8.5% year-on-year in the first half, mainly due to strategic upfront investment in our China injectable business. Excluding this investment, our operating expenses ratio declined year-on-year, reflecting the benefit of disciplined cost control and efficiency initiatives across core corporations in the second half. We will maintain a prudent financial approach, managing costs carefully while continuing to invest for strategic growth. On profitability, results were temporarily affected by North America's lower revenue and strategic investment in our China-based intractable operation. In the first half, gross profit was $97.2 million, with gross margin of 56.7%, down from the 60% a year earlier. Adjusted net profit was $5.5 million. Thank you for joining us today. From a financial stability perspective, as of June 30, 2026, we held cash and cash equivalents of 77.3 million USD and our overall financial position remains solid. Looking ahead, we will continue to balance reinvestment for long-term growth with shareholder returns, delivering sustainable value to both fronts. With the overview, let me close with a brief summary and outlook. In the first half, the global market environment remained challenging. Again, that backdrop, we maintained solid performance, once again demonstrating the resilience of our business, with industrial leading EBD as our foundation, rapidly expanding injectables as a new growth driver, and an AI-driven ecosystem strategy, we have built differentiated competitive advantages. Looking ahead in the second half, we will strengthen our product portfolio in key markets, enhance commercial execution in North America, and accelerate the penetration of the Daxifis channel, the rollout of next-generation EBD platforms, and the integration of our EBD and injectables business in mainland China while steadily ramping up capacity at our Meiyun localized manufacturing base. Further ahead, underpinned by the solid balance sheet and a clear strategic roadmap, we are confident in delivering higher quality growth through organic Expansion and external opportunities alike and increasing sustainable long-term value for our shareholders. That concludes my remarks. We'll now move on to Q&A. Back to the operator. Thank you, management. Now it's time to take questions. Investors dialing in through phone calls, please note the instruction and please refrain from asking for more than two questions. And you can also put your question through the chat box on the online. Now over to the assistant to give us the instruction. Hello, if you have a question, you can press star one on your phone keypad, star and followed by one after the prompt tone and you can identify yourself and ask your question. Good afternoon. If you want to ask a question, you can press star one on your keypad or your phone and start to ask a question after the prompt. Now, the first question is from He Jingpeng from Citic Security. Thank you. Great to have this opportunity. I'm He Jingpeng from City Security. I have two questions. First of all, now in terms of the global and China conditions, I mean, has your adjustments of the global and China mix has been completed? And what is the management architecture that is in place now? And the second question is about the strategic development goal for your overseas business. Do you have a targeted strategic objective, including key markets of North America, China, and their strategy, respectively? Thank you. Regarding the management adjustment, I will leave it to our chairman, Leo. The second question about the future development of North America and China, that will be from Aya, from our CEO.

Yeah, thank you very much for the question. About the structure, the restructure, so definitely we have started several important management adjustments in both of the major markets, those markets which we have focus, which is China, of course, and North America. The changes we have done are still rolling. It's supposed to basically strengthen execution. coordinate and create accountability for the growing of the business. For example, Jiahong Li, which is on the call here, in addition to his co-CEO position, is leading the activity as the president of CIS from China. and the CEO of Alma China, the EBD part, which will allow us to have a closer coordination across the business. As you know, in China, we are accelerating the integration of our EBD large business together with the injectable business, which today is at this stage, Daxi. and in the second half we will see more progress on this operational efficiency and execution which is on the go. So as the business will continue to evolve we expect to continue to optimize and strengthen our organization where we find it appropriate in order to support long-term strong business growth strategy.

Thank you, Lior. I will refine to the second question.

Yeah.

So it's very important to say that strategy is not something that you shift year after year. It's a compass that you believe in and you follow. Nevertheless, we always look at reality and we learn and we adapt. Our strategy remains to have a full cycle integrated ecosystems where the EBD is the core and we strengthen it with injectables, diagnosis, and AI powered skincare. But the EBD core is where we win the markets, when we earn the trust. And our core objective is to evolve from a single brand into a comprehensive medical aesthetic solution provider. Looking at the markets, Obviously, our focus is on China and North America. In China, as we all know, we've launched a mega project that we've been investing and working on for many years, launching Duxify. This is defining us as a leader. We are defining unique protocols for China and we're driving increased utilization and repeat purchase. We also accelerate for the EPD the next generation devices. We want to deepen the interaction integration between the commercial, the customer and the medical education. We also improve our supply chain across the company and make sure that we are ready for the next stage of integration between the EPD and injectables in China. As mentioned in the statements, we have an important milestone. We have the capacity in a Beijing facility to localize a product. It's one product today, but it's only the beginning, and it will enable us to capture the potential of growth in APAC. As for North America, we realign our commercial framework and our operating model conditioning. We maximize the value of North America's strength. We understand that what really matters is our brands and what most matters is our customers and install base. Our focus is to come back to our customers that showed trust and to make sure that they make the best out of their systems and they deliver amazing results for their patients. This is our first priority. We want to make also sure that we work and prioritize our performance stabilization and profitability recovery through the region. We proactively look for cost realignment and a clear focus on margin improvement. We're establishing our foundation to have a sustainable long-term growth. Thank you.

Thank you management for your very specific answer. Thank you. We wish you a better and a better future. And now I'm going to invite next speaker from Founder Securities Gu Hanting. The floor is yours. Dear management, I'm from Founder Securities. I have two quick questions for the management. The first question is about DAXify. So in the first half of this year, what is the confirmed sales revenue? What's the volume? And compared to our annual objective, will there be any adjustment? My second question is about product sales movement and repurchase on Daxify. What is the repurchase, including the sales activation or movement? In terms of the clinics or institutes we have covered, what about our future plan on expanding into different institutions, for example? When it comes to revenue on DAXify and the future sales goal on DAXify and the repurchase performance on DAXify and the coverage of institutes, we're going to invite Zhang Jiahong. Thank you very much. We haven't disclosed a specific number on DAXify yet. But in overall speaking, the commercialization on DAXify is well aligned with our expectation. Our annual operational goal is 100 million RMB. We are on the pace or cadence and it will be adjusted according to the updates on commercialization in Chinese market. We will share with you if there's any updated information at present. We follow a scheduled cadence to proceed Daxify's business at our largest market mainland China. We will secure our leadership. And then if the maturity on both commercialization and regulation is available, well, we promote and reproduce it region by region. That's your first question. The next question is about sales movement and repurchase. As of end of first half of this year, our shipment has exceeded like 30 vials, exceeding 28 provinces and nearly 500 premium medical aesthetic clinics. The driven forces is the penetration at the end market as well as standardized training on the practitioners has been executed very well. So at English level, we call it a benchmark the medical aesthetic clinics. We will carry out following three works. The first standardized clinical training. Very refined training and also service at the end, as well as localized, customized injection protocol, which will increase both the frequency of the clinical application and a stronger intention of repurchase. We are interested in this topic. We keep the repurchase at a very healthy level. We realize the quarter-by-quarter growth So which has really built our strong leadership at premium the BT or BTA market penetration is increasing. So from a second half of this year, commercialization will shift from just the coverage into more deeper penetration. Our priority is to build the benchmark sites in China to optimize the local injection protocol, increase the repurchase level as well. Thank you. Thank you very much for your question. We are looking forward to the further updates on the sales as well. Thank you. Our next question is from Northern East Securities. Lee, send my Northern East Securities, please. Dear leaders, good afternoon. We really appreciate this great opportunity during the Q&A. I want to follow up Daxify, still a follow-up question on Daxify. So we have also heard that We are also witnessing a certain ratio on profit sharing may decrease that. What is the updates on the ongoing negotiation? What's our percentage? More specifically, how much percentage point will be declined? So when will we have an explicit answer or result? So this is the negotiation on DAXify as well as Remax. The next question is still about the pricing. The end market of Daxify is deemed as a premium product. So this is my question about the overall pricing on Daxify, including the expenditures for single treatment, Thank you very much. These are the two questions. Thank you so much. The first question about revents. Thank you. So indeed a very important question. And with revance, it's a commercial agreement, but it's also building a relationship.

between two companies that are established as premium companies. So the contract was signed a while back. And as we launch, we have an obligation to negotiate to have our best transfer price. We're exploring this opportunity. I will not disclose here obviously the specific terms, but we're exploring it on a wider aspect. We're seeking to broaden the scope of collaboration, expanding outside of not only being in mainland China, which is crucial, Hong Kong and Macau. We are negotiating and speaking about launching and representing Daxify in other strategic markets. And that will affect this agreement, could affect the total terms of our agreement, our cooperation. I understand it's important for all of you to understand and to know. Hopefully we can update soon with news about more specific terms and territories that will enable us to increase our opportunities with this product. Thank you.

Yeah, I try to take the second question. So for Daxify, as we said, it is positioned as a long-acting BTA. The price is 6,800 at the end market. So we don't want to exchange the volume with a low price. We want to leave more margin for the clinics. So we find that overall speaking, the price is quite stable. Some premium clinics realize sales with good premium. Commercialization of Dexafire in China is direct to clinics. It's a quite flattened model without intermediates in the middle. We leave the sufficient Profit and margin to clinics. So when it comes to single treatment price difference compared to our competitors, we are not convenient to disclose the details. But for Doxify, first of all, it is long-acting, quick action, and very natural and safer. So for our competitors, if it can be maintained for three to four months, patients need to get three to four injections. But for Daxify from efficacy, the median time of maintenance duration is six months. Some patients can last as long as nine months from annualized consumption. So the overall expenditure between the patients are very close. But for Daxify, we have less times of injection to obtain equivalent, even longer maintenance duration, which will be more convenient and for the patients and as a differentiated treatment experience. Over speaking, we offer clinics with competitive margin of profit and when Daxify has a quick action, a long acting as this differentiators, it will help clinics to improve both satisfaction, stickiness and operational efficiency or productivity. Thank you. Thank you, dear leaders, for your great sharing and answer. No questions from my side. Thank you. The next question is from Sealand Securities. Ding Jingxin, Sealand Securities. Ding Jingxin, please. Dear management, hello everyone. Thanks so much for giving me this opportunity. I also have two quick questions. The first question is that we are also wondering In terms of the BTM market, especially including the landscape and including the overall trend, what about our botulinum toxic market as a whole, about its future trend? The next question is about localization. So we have laid out the localization. So in China, what is also the progress or the updates on localization? What's your future plan afterwards? Thank you. Thank you for your question. So for your first question about competitive landscape, borderline, detoxing, the next question about localization, maybe Jiahong will take both the questions, right? First of all, I'm going to talk about the overall landscape. We know from the supply side that it witnessed a continuous expansion. So continuously speaking, there are eight products the petroleum toxin got the approval. And next one, two, three products, another four to six new products will enter the market. So it witnessed quite cutthroat competition, especially it is concentrated in the so-called popular medium to premium market, medium to high market. We know the... are toxic products of low supply. The demand is of great certainties, right? It's a very important SKU. As consumers' awareness increased, as we have more and more indications, and also with the need of looking like young and overall management on your contours, aesthetics, the demand will expand. The market capacity is expanding at the same time. But entry of some low to medium market will impact your average selling price and your margins to some extent. So the competition on the price will be more fierce. But premium products have this uniqueness, including efficacy, branding, the duration, and it can maintain a relatively stable price. Thank you for joining us. and also the competition will shift from only price walk into a differentiator. So we have not only BTA, but also recombinant new products or other emergent botulinus toxin products. I think In the future, practitioners, education, clinical evidence, product experience, and your commercialization capability are very important driving force behind the competitive landscape. And as we all know, it is worth paying attention to those innovative products. But what about the performance? At the end of the day, in the market, we will wait and see, including the re-combo Thank you very much. Those products with differentiators premium value creation like DAXify will be provided with better opportunities on growth. In terms of the playbook on DAXify, it was officially launched in January this year with very good updates on commercialization. Let's talk about differentiator of the products from which we cut into the premium BTA market. It has also become the injectables growth infusion.

As I mentioned, in the first half, we have accumulated shipment of 30,000 that cover 500 premium medical aesthetic clinics in 28 provinces. So the progress has been very well. So that's to your first question. You also talk about localization. So that was in June. The Chinese production base was officially put into production. The first CBD, which is called Ama Rejuve, which is successfully rolling offline. So this really marked A new stage for the localized strategy in China. And this base is using the mature process from Israel and strict quality control system from Israel, which help to optimize the supply chain, but also ensure quality consistency and stability. And this production base also lay a foundation for Thank you very much. reducing production costs, reducing production lead time, and also diversify risks from geopolitics. In the short term, the new production line is still in a phase of making investment that could be impact on financial, but over the long term, there's going to be release of profitability mid to long term. Thank you. Thank you for your comment. Very clear. No further question. Next question. Shi Yixian from China Security. Can you hear me? Yes, please go ahead. Great. Hello, management. Thanks for having me. I have two questions. Now, in terms of your key SKU, what's the sales outlook for your key SKU in the second half? Do you expect further improvement? And also the Harmony XL that you have just launched, what's the expectation for the performance? Do you have any feedback from the user? Is it going to lead to the revision of your expectation or guidance? That's the second question. And also for your product line, when you extend your product line, to quantify business synergies in the future because you've been through quite a big structural change in terms of category and geography. So in the next three to five years, what is the right expectation in terms of the category mix? Thank you, Mr. Xie. You talk about The sales of the EBD and the future outlook for sales, I will leave it to Mr. Li Jiahong. Second question about when we're expanding our product line and in terms of commercial synergy, what do you think of the product mix in the three to five years? That question I will leave to Leo, our chairman. Okay, I will take the first question. In the first half of 2026, As you talk about the key SKU, which is including Harmony XL. The EBD order has maintained a steady growth. You know, Tertallium is actually a premium EBD that was launched in China, which was launched in the second half last year, and to the active response from the markets. And Harmony XL was launched in July in China, and the product is also quite innovative by combining the DPL 100 nano super transmitting light and near infrared light as a dual technology, which is a new generation of comprehensive solution for therapeutic and maintenance. So since launch, it's been widely accepted and welcomed by the market and the order is doing very well. Now, in the second half, as we mentioned, our China local production base was put into use in June, which includes some of the capacity ramp up, including HarmonyXL, as well as, you know, the contribution from the new product and EBD injectable synergy. We are very confident for the growth in the second half of the year for China. Thank you.

So I will address the second question regarding the product mix and how we see synergies going ahead. So when we talk about future product mix, the strategy that we have is not to move away from EBD. but actually building a broader and more diversified portfolio around it. EBD will remain the foundation of our business while injectables are becoming increasingly important as a second growth engine, as you know. This is complemented over time by diagnostic tools like AlmaIQ and personalized skincare that was launched A year ago in the United States and earlier this year in Germany and in Hong Kong at the end of last year. So you can see the combination therapy through our ecosystem to be built. Now, maybe a few words about Alma and the portfolio. You know, combination has always been part of Alma's DNA. For many, many years, we have pioneered the combination of different energy-based technologies to achieve better clinical outcome. This was always the guided clinical path. What has changed in the scope of this integration is that in selected markets, we are now expanding this approach beyond EBD, connecting diagnostics, as I mentioned, Alma-IQ, personalized treatment protocols, EBD and injectables, and personalized skincare, such as Universe Skin, supported by AI. So we believe this gives CISROM a unique position in this industry. We're not simply adding products, we're building and validating the ability to connect Different categories into an integrated clinical ecosystem. Importantly, we are supporting this with clinical research, including, for example, Soprano titanium with Profilo in Thailand and studies in Europe combining our EBD technologies with Prolenium Revanese portfolio, the injectable of hyaluronic acid. Over time, our differentiation will come not only from individual products we offer, but from our ability to combine them and deliver better and more personalized outcome. Thank you.

Thank you.

Next question is Chen Siyu from CICC Security. Thank you for having me. I'm Siyu from CICC. I have two questions. First is about EBD business. In terms of the R&D direction for your new products, where you are researching for and what are the innovation for the last two years is going to bring some innovation launch. Second is about also the portfolio. What about the progress of Chinese approval for your profilo? Do you have expected time for launch? And if it's launched, what is your pricing strategy, your playbook, and what is the solution to combine with botulinum toxin? Thank you. Thank you. The first question about the EBD R&D direction and new product launch plan. I will leave it to our CEO. The second is about the Profilo Chinese registration and commercialization. I will hand over to Mr. Li Jiahong.

Thank you. I will take the first part. The R&D is something that I am specifically very excited about that we've reached significant progress in new ideas and new products but also in launches that we can see in the near future. I mentioned in my opening speech that we've recruited a new EVP for R&D and we believe this is the end We have mapped several transforming products for the future. But I want to explain the process we do. We don't just have scientists and engineering thinking what could be exciting to do. We have a strategic department that is talking to customers, talking to clients, talking to doctors, to partners, and we understand and we map where the market is growing and what is the real customer demand and what product specifically can create a good ROI for the clinic and help that clinic to have retention with their patients. In addition, being a leader and a clinically approved company, we make sure that there is sufficient studies backing this with pure evidence. The way we launch products, when we can, and it's not easy, we do a revolution. We bring something different, not just another five joules or five nanometers or a different color or UX UI. We drive innovation. In other parts, we make sure that our leading family of products are every three to five years maximum improved. This is the next iPhone per se. But giving you more specific about our launch plans and we cannot explode, we cannot disclose everything. In H2, we will launch our next generation of hair growth system in North America. and we will launch our Primix, which is our RF ultrasound device in Thailand, the market that we've showed that we can create an impact very fast. In addition, before the end of the year, we will launch the next generation of Rejuve. This is for the beauty segment in China. Thank you.

Okay, I will talk about Profilo. Now Profilo, we plan to submit Profilo's indication for facial indication to the regulator. We're going to file the application indication in the second half. We expect approval will be received in the second half of 2027. We're getting ready for the commercialization. Profilo is a high-end hyaluronic acid. which is great to improve skin laxity, maintain and improve the molecule and moisturize the skin and reshape the sagging tissues. So it's not the traditional hyaluronic acid, it's actually stimulating and regenerating a natural collagen and elastin. So we expect the total cells will be in the hundreds of millions RMB. But that depends on the timing of regulatory approval and the final market acceptance. Thank you. Thank you. I have no further question. Thank you so much. Next question is Du Lei from Huaxi Securities. Good afternoon. I'd like to ask about The guidance for the second half of the year and the coming years. So just to get your guidance and outlook. Thank you. Regarding the guidance, I will leave it to Mr. Li. Okay, in 2026, the FY26 is defined as a year of growth and integration. Even though in the first half of the year, you have seen headwind from North America macro economy, But because of the healthy order backlog and core product line momentum, we are very confident that the second half revenue will achieve significant improvement Q and Q and year on year. At the same time, we'll focus on enhanced operating efficiency, improving profitability and recovery and also cash flow improvement. So we still believe Medical Aesthetic is a great sector to be in in the full year 2026 and also in the next three years. The company will still expect high growth and we believe the growth driver will come in a few ways. First of all, the ramp up of injectables like the CeFi is an example in China. Decommercialization in mainland China is now driving deep penetration in organization, which building a benchmark clinics and optimizing localized treatment regimen, driving repeat order. We believe this will also lead to great performance in Chinese markets.

We have tried commercialization models on Dexify. We will reach out to the rest of the world accordingly. And we introduced about the progress on registration of Profilo, remaining another important growth engine. Our CEO has also shared about the new products of EBD. We will witness the new launch in a quite intensive manner. I believe it will bring opportunities for further growth on business Yes, so APEC regions, for example, Soprano, Titanium was launched in June in Thailand. Some other new products will be also launched in mainland China. We're talking about Harmony XL, Titanium Premium. This is also the combo therapy in Hong Kong, which will lay solid foundation for our new incrementals of the business. In North America, you are very interested. We witnessed some challenges in H1, but if we take a look at Canadian market, witnessing 20% growth, that has justified the recovery in some regions of North America. We will also seize the opportunities in the North American market by launching new products, including the new protocols of combo therapy to build. So I could eat one medium universe by armor. It's a ecosystem. We want to promote the whole ecosystem across the whole chain. Since we introduced the localized ecosystem, The first product is Alma Rejuve. In H2, where we ramp up Alma Rejuve and reach out to more diversified product metrics of local products and also to seize the opportunities of better Supply chain responsiveness and optimizing cost structure. We are also seeking external opportunities of BD. We hope the combination of the above-mentioned opportunities will also justify the growth and high-quality profitability. When it comes to the future, we are very confident of this from across the globe. Thank you. Thank you for your answer. Thank you very much. Thank you for all of your questions. We appreciate the sharing answers from our executives. Now we call the end of this earning call. We appreciate your participation by investors and analysts. If you have follow-up questions, please reach out to our IR team. Thank you so much.