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.