Q2 2026 Sisram Medical Ltd Earnings Call

August 20, 2026

Speaker #1: Kuwail Induction 现在可以开始，谢谢。对，Leaders Management。 We can start.

Speaker #2: 各位投资人，各位分析师朋友。

Speaker #1: Good afternoon, investors and analysts. Welcome to the Sisram Medical Q2 2026 interim earnings call. Today, we'll share with you the operating results of our company, key business progress, and our future development strategy.

Eyal Ben David: Good afternoon, investors and analyst. Welcome to Sisram Medical's H1 2016 interim results earning call. Today we will share with you the operator results of our company, key business progress, and future development strategy for H1 this year. We have the management, including Mr. Lior Dayan, our Chairman, Mr. Eyal Ben David, CEO, Mr. Jiahong Li, Co-CEO and CFO. I am your moderator, Fang Hui, Director of IR, IRD. This event is equipped with simultaneous interpretation. 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 us welcome Mr. Lior, our Chairman, to begin. Please go ahead, Lior.

Fan Hui: Good afternoon, investors and analyst. Welcome to Sisram Medical's H1 2016 Interim Results Earning Call. Today we will share with you the operator results of our company, key business progress, and future development strategy for H1 this year. We have the management, including Mr. Lior Dayan, our Chairman, Mr. Eyal Ben David, CEO, Mr. Jiahong Li, Co-CEO and CFO.

Speaker #1: For H1 this year, we have the management, including Mr. Leon Moshidao, Chairman; Mr. Aya Benjamin, CEO; Mr. Zhang Hongli, Co-CEO and CFO; and your moderator, Fan Hui, Director of IR.

Fan Hui: I am your moderator, Fan Hui, Director of IR, IRD. This event is equipped with simultaneous interpretation. 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 us welcome Mr. Lior, our Chairman, to begin. Please go ahead, Lior.

Speaker #1: This event is equipped with simultaneous interpretation. Participants may listen on either the English or Chinese channel. The first senior executive will share their remarks, followed by Q&A. We welcome your questions.

Speaker #1: Now, let's welcome Mr. Liu, our Chairman, to begin. Please go ahead, Mr. Liu.

Speaker #3: 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 Sisram's place within it.

Lior Dayan: Good day, everyone. Thank you very much for joining. As we open today's call, I would like to share the board's perspective on the industry's direction and Sisram'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 is increasingly about the ability to deliver integrated solutions, execute consistency, and create long-term value across categories, technologies, and markets. That is why Sisram has spent the past several years building, and why we believe we are well-positioned for the industry's next phase.

Speaker #3: 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.

Speaker #3: 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 consistently, and create long-term value across categories, technologies, and markets.

Lior Dayan: As the industry matures, the source of competitive advantage is changing with it. It is no longer about any single product. It is increasingly about the ability to deliver integrated solutions, execute consistency, and create long-term value across categories, technologies, and markets. That is why Sisram has spent the past several years building, and why we believe we are well-positioned for the industry's next phase.

Speaker #3: That is why Sisram has spent the past several years building, and why we 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.

Lior Dayan: 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.

Lior Dayan: Our international performance outside North America was a clear highlight in the H1, 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.

Speaker #3: 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.

Speaker #3: 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’s conditions.

Lior Dayan: 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.

Speaker #3: 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 an unwavering commitment to innovation.

Speaker #3: The first half also demonstrated something important about the evolution of Sisram: we're no longer defined by a single category. Our injectables business is developing into a meaningful second growth engine, while the core energy-based device business continues to provide the foundation of the group.

Lior Dayan: The H1 also demonstrated something important about the evolution of Sisram. We are 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 Sisram's next chapter.

Speaker #3: 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 also the quality and durability of the business we are building.

Lior Dayan: 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 Sisram's next chapter.

Speaker #3: 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.

Speaker #3: That balance between ambition and discipline is central to how we think about Sisram's next chapter. At the board level, we remain closely engaged in shaping long-term strategy, overseeing execution, and ensuring disciplined capital allocation.

Lior Dayan: At the 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 Sisram 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 and 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.

Speaker #3: 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.

Speaker #3: 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 industries.

Lior Dayan: 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 Sisram 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 and 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.

Speaker #3: We believe Sisram 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 our shareholders and partners for their continuous trust and dedication.

Speaker #3: With that, I will hand the call over to our CEO, Mr. Eyal Ben-David.

Speaker #4: Thank you, Lior. And thank you all for joining us today. The first half of 2026 was an important period for Sisram. 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.

Eyal Ben David: Thank you, Lior, and thank you all for joining us today. The H1 of 2026 was an important period for Sisram. Energy-based innovation has entered a phase of real advancement. 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, which came in below our expectations this period. This was a largely strategic reflecting investment needed for us to build our injectable business in China and launch Sisram's first pharmaceutical product, including meaningful investments in our organization, commercial team, and go-to-market execution.

Speaker #4: 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 growth.

Eyal Ben David: 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, which came in below our expectations this period. This was a largely strategic reflecting investment needed for us to build our injectable business in China and launch Sisram's first pharmaceutical product, including meaningful investments in our organization, commercial team, and go-to-market execution.

Speaker #4: Supported by better sales productivity, disciplined operations, and stronger production, let me be direct about profitability, which came in below our expectations this period.

Speaker #4: This was largely a strategic, reflective investment needed for us to build our injectable business in China and launch Sisram's first pharmaceutical product, including meaningful investment in our organization, commercial team, and go-to-market execution.

Speaker #4: 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.

Eyal Ben David: 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 are addressing these, improving our sales productivity, discipline execution, and stronger operational supports. 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, Alma 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.

Speaker #4: 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 U.S.

Speaker #4: However, we're addressing these by improving our sales productivity, disciplined execution, and stronger operational support. While our Canada operation grew 20% year over year, it provides an early indication of our potential for the regional recovery.

Eyal Ben David: 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, Alma 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.

Speaker #4: 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.

Speaker #4: During the period, we launched Soprano Titanium in Thailand and Harmony Excel in mainland China, strengthening our premium energy-based platforms and offerings, and reinforcing our position with leading practitioners worldwide.

Eyal Ben David: During the period, we launched Soprano Titanium in Thailand and Harmony XL 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 perfect 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 H1 investment is going. The segments keep building momentum led by DAXXIFY commercial milestones in Mainland China and Profhilo continued strength in Thailand.

Speaker #4: 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.

Speaker #4: 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.

Eyal Ben David: We manage the portfolio to perfect 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 H1 investment is going. The segments keep building momentum led by DAXXIFY commercial milestones in Mainland China and Profhilo continued strength in Thailand.

Speaker #4: Injectables are accelerating as our second growth engine. This is where much of the first-half investment is going. The segment keeps building momentum, led by Daxify, commercial milestones in mainland China, and Profhilo's continued strength in Thailand.

Speaker #4: In China, Daxify sustained strong commercial momentum during the period, with cumulative shipments surpassing 30,000 vials as of June 30. In 2026, the coverage reached more than 500 premium medical aesthetic clinics across 28 different provinces.

Eyal Ben David: In China, DAXXIFY sustained strong commercial momentum during the period, with cumulative shipments surpassing 30,000 vials as of 30 June. In 25, the coverage reaching more than 500 premium medical aesthetic clinics across 28 different provinces. This gave us a strong commercial base from which we deepen 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 opportunities in medical aesthetics, and expanding in this category gives Sisram Medical an important additional channel alongside our EBD platforms. Together with EBD platforms, this broadens 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 DAXXIFY in our largest market first, then extending the model market by market as our commercial and regulatory footing is in place.

Speaker #4: 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.

Speaker #4: Injectables present one of the largest and most attractive revenue opportunities in medical aesthetics. Expanding in this category gives Sisram an important additional channel alongside our EBD platforms.

Eyal Ben David: Injectables present one of the largest, most attractive revenue opportunities in medical aesthetics, and expanding in this category gives Sisram Medical an important additional channel alongside our EBD platforms. Together with EBD platforms, this broadens 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 DAXXIFY in our largest market first, then extending the model market by market as our commercial and regulatory footing is in place.

Speaker #4: Together with EBD platforms, this broadens the way we serve clinics and customers, strengthens our integration offerings, and positions us to capture a greater share of the demand over time.

Speaker #4: We are scaling in sequence, establishing Daxify in our largest market first, then extending the model market by market as our commercial and regulatory footing is in place.

Speaker #4: Our AI-enabled ecosystem is gaining traction. Alma IQ and Alma Universe Skin by Alma have 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.

Eyal Ben David: Our AI-enabled ecosystem is gaining traction. Alma IQ and Universkin 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 Universkin by Alma in the US markets, reflects the growing demand for solutions that connect diagnosis, treatments, 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 H2, extending this personalized ecosystem across the full patient journey. Behind all of this is an organization we have worked hard to sharpen and establish.

Speaker #4: Recognition of Alma IQ and AI-powered diagnostics capabilities, together with continued momentum of Universe Skin by Alma in the U.S. markets, reflects the growing demand for solutions that connect diagnosis, treatment, and skincare into a seamless patient experience.

Speaker #4: 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.

Eyal Ben David: 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 H2, extending this personalized ecosystem across the full patient journey. Behind all of this is an organization we have worked hard to sharpen and establish.

Speaker #4: Behind all of this is an organization we have worked hard to sharpen and establish. During the period, we ran comprehensive manufacturing ramp-ups, expanded our capacity, improved our planning, and shortened the lead time for our high-volume platforms while keeping inventory disciplined.

Eyal Ben David: During the period, we ran comprehensive manufacturing ramp-up, expanding our capacity, improving our planning, and shortening the lead time for our high-volume platforms while keeping inventory disciplines. In June, we reached a defining moment in our globalization strategy when our Beijing facility produced the first locally made Alma Rejuve. Building in a market is how a global company creates local impact. It puts our technology closer to practitioners, reflects local clinical and regulatory needs, and anchors our APAC ambitions with supply chain built for the growth we seek. At the same time, we continue to strengthen our foundations of our future innovation. We 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 progress.

Speaker #4: In June, we reached a defining moment in our localization strategy when our Beijing facility produced the first locally made Alma Rejuve. Building in a market is how a global company creates local impact.

Eyal Ben David: Building in a market is how a global company creates local impact. It puts our technology closer to practitioners, reflects local clinical and regulatory needs, and anchors our APAC ambitions with supply chain built for the growth we seek. At the same time, we continue to strengthen our foundations of our future innovation. We 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 progress.

Speaker #4: It puts our technology closer to practitioners and reflects local clinical and regulatory needs. And the anchors are APAC ambitions, with a supply chain built for the growth we see.

Speaker #4: At the same time, we continue to strengthen our foundations for future innovation. We've invested $8.5 million in R&D, we welcomed Iran Shore as our EVP of R&D, and further optimized our development organization to accelerate strategically important programs.

Speaker #4: 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.

Eyal Ben David: Our team advanced 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 filings, 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 platform lands 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 DAXXIFY in mainland China and to scale Alma IQ and Universkin by Alma 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.

Speaker #4: We also continue to expand and protect our IP portfolio through new patent filings, granted patents, and trademark registrations, reinforcing the long-term competitiveness of our technology platform.

Speaker #4: 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.

Eyal Ben David: Our platform lands 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 DAXXIFY in mainland China and to scale Alma IQ and Universkin by Alma 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.

Speaker #4: Our priorities follow that momentum to strengthen the energy-based device portfolio and expand across high-growth markets, particularly in APAC; to accelerate Daxi in mainland China; and to scale Alma IQ and Universe Skin internationally.

Speaker #4: 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 employees, whose dedication drove our progress in the first half and leaves Sisram well positioned to deliver long-term value.

Eyal Ben David: My thanks go out to our shareholders, partners, customers, and employees, whose dedication drove our progress in H1 and leaves Sisram Medical 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.

Speaker #4: To walk you through the operations and financials in more detail, I will now hand over the call to our Co-CEO and CFO, Jae Hong Lee.

Speaker #4: Thank you, Jae Hong.

Speaker #1: Thank you, Benda. Good afternoon, everyone, and thank you for joining Sisram's 2026 interim results call. I will cover our first half results and plans from three angles.

Jiahong Li: Thank you, Benda. Good afternoon, everyone, and thank you for joining Sisram Medical's 2026 interim result call. I will cover our H1 results and plans for three angles. First, our production operation and strategic execution. Second, key financial performance. Third, our priorities going forward. Let me begin with global production operations and strategic execution. Our Israeli manufacturing base ran smoothly throughout H1. As global market 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 through our flagship devices. Our growth fulfillment and supply capability have improved significantly, positioning well to meet rising demand over medium to long term. Concerning Middle Israel political risks, the actual impact on our H1 operation were minimal and limited almost entirely to logistics.

Speaker #1: 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.

Speaker #1: Our manufacturing base ran smoothly throughout the first half. As global markets accelerate, their shift toward multi-energy, multi-application platforms will expand capacity and upgrade the production lines.

Jiahong Li: As global market 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 through our flagship devices. Our growth fulfillment and supply capability have improved significantly, positioning well to meet rising demand over medium to long term. Concerning Middle Israel political risks, the actual impact on our H1 operation were minimal and limited almost entirely to logistics.

Speaker #1: 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 goals fulfillment and supply capability have improved significantly, positioning us well to meet rising demand over the medium to long term.

Speaker #1: Concerning media issues and political risk, their actual impact on our first-half operation was minimal and limited almost entirely to logistics. Our risk-ready team has rolled out comprehensive contingency measures that give us stability to adjust production, shipping, and staffing in real time.

Jiahong Li: Our Israeli 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. This outcome clearly demonstrate our operational resilience and the strength of our 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, this operation enhanced across production capacity. Delivery and after-sales have formed a virtuous closed-loop improvement cycle, providing a solid foundation for revenue growth. The H1 market marked a major milestone in our localization roadmap.

Speaker #1: This proactive approach has protected our employees, sustained supply chain stability, and kept external disruption to a bare minimum to date. Our ready manufacturing facility and all global subsidiaries are operating without interruption. These outcomes clearly demonstrate our operational resilience and the strength of our risk management framework.

Speaker #1: Regarding after-sales service, we continue to optimize our global service network with a particular focus on shortening repair turnaround times, improving maintenance efficiency, and enhancing delivery reliability.

Jiahong Li: 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, this operation enhanced across production capacity. Delivery and after-sales have formed a virtuous closed-loop improvement cycle, providing a solid foundation for revenue growth. The H1 market marked a major milestone in our localization roadmap.

Speaker #1: Service business profitability also improved. Taken together, these operations enhance across production capacity. Delivery and after-sales have formed a virtuous close-through improvement cycle, providing a solid foundation for revenue growth.

Speaker #1: The first half marked a major milestone in our localization roadmap. In June 2026, our Miyun manufacturing facility in Beijing officially commenced production, and the first locally assembled Alma Rejuve rolled off the line.

Jiahong Li: In June 2026, our Miyun manufacturing facility in Beijing officially commenced production, and the first locally assembled Alma Rejuve rolled off the line. Backed by strong clinical results in anti-aging and skin rejuvenation, the products have gained widespread recognition across China, spanning both the medical aesthetics and live aesthetics segments. The Miyun facility strictly follows the production standards and quality control system of our Israeli bases, drawing on decades of manufacturing expertise while upgrading local capacity and processes. Its commissioning signals the transition of 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, lays a foundation for expanding local production pipeline for strengthening Sisram's differentiated competitive across APAC. That covers operating performance. Let me turn to financial results.

Speaker #1: Backed by strong clinical results in anti-aging and skin rejuvenation, the products have gained widespread recognition across China, spanning both the medical aesthetics and life aesthetics segments.

Speaker #1: The Miyun facility strictly followed the production standards and quality control system of our recent basis. Drawing on decades of manufacturing expertise while upgrading local capacity and processes in commissioning signals the transition of our China localization business into a scaled operation.

Jiahong Li: Its commissioning signals the transition of 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, lays a foundation for expanding local production pipeline for strengthening Sisram's differentiated competitive across APAC. That covers operating performance. Let me turn to financial results.

Speaker #1: Going forward, we will build end-to-end coordination across the manufacturing, supply chain, sales, and after-sales. This ensures stable supply in China, laying the foundation for expanding the local production pipeline and for strengthening Sisram’s differentiated competitiveness across APAC.

Speaker #1: That covers operating performance. Let me turn to financial results. In the first half of 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.

Jiahong Li: In H1 2026, despite continued pressure in North America, overall revenue grew 2.6% year-on-year, supported by solid performance from our international operations and injectable business. Q2 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%. APAC share increased to 45%, up by 19.1%, making it our most important regional market. Europe and Middle East also showed strong momentum. By business segment, EBD revenue was $134 million, down by 2.5% year-on-year, mainly due to North America headwind. Excluding NA, international EBD revenue increased by 7.2% year-on-year, showing the underlying global demand for our core EBD platform remains solid.

Speaker #1: 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%. APAC's share increased to 45%, up by 19.1%, making it our most important regional market. Europe and the Middle East also showed strong momentum.

Jiahong Li: International markets outside North America performed particularly well, with revenue up by 16.7%. APAC share increased to 45%, up by 19.1%, making it our most important regional market. Europe and Middle East also showed strong momentum. By business segment, EBD revenue was $134 million, down by 2.5% year-on-year, mainly due to North America headwind. Excluding NA, international EBD revenue increased by 7.2% year-on-year, showing the underlying global demand for our core EBD platform remains solid.

Speaker #1: By business segment EBD revenue was 134 million US dollars down by 2.5% year on year, mainly due to North America headwind. Excluding an international EBD revenue increase by 7.2% year on year, showing the underlying global demand for our core EBD platform remains solid, injectable revenue reached US dollar 22.2 million up by 40 54.2% year on year with the share of global revenue rising from 8.7% in 2025 to 12.9%.

Jiahong Li: Injectable revenue reached US$22.2 million, up by 54.2% year-on-year, with a share of global revenue rising from 8.7% in 2025 to 12.9%. Growth has also driven primarily by DAXXIFY's commercial rollout in Mainland China and Profhilo's strong performance in Thailand. We now established a solid dual engine growth model, EBD and injectables. Going forward, we will keep EBD at the core of the rollout of more localized EBD products while accelerating injectable business expansion through deeper DAXXIFY channel penetration in Mainland China, and advancing registration approval of Profhilo 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 to discipline and prudent approach. Operating expenses grew 8.5% year-on-year in H1, mainly due to strategic upfront investment in our China injectable business.

Speaker #1: Growth has also been driven primarily by Daxify, the commercial rollout in mainland China, and Profhilo’s strong performance in Thailand. We have now established a solid dual-engine growth model—EBD and injectables. Going forward, we will keep EBD at the core with the rollout of more localized EBD products, while accelerating injectable business expansion through deeper Daxify channel penetration in mainland China. We are advancing registration approval of Profhilo and other pipeline products. This effort will enrich our wellness solutions.

Jiahong Li: Going forward, we will keep EBD at the core of the rollout of more localized EBD products while accelerating injectable business expansion through deeper DAXXIFY channel penetration in Mainland China, and advancing registration approval of Profhilo 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 to discipline and prudent approach. Operating expenses grew 8.5% year-on-year in H1, mainly due to strategic upfront investment in our China injectable business.

Speaker #1: 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 distributed upfront investment in our China injectable business.

Speaker #1: Excluding this investment, our operating expenses ratio declined year on year, reflecting the benefit of disciplined cost control and efficiency initiatives across the core corporation in the second half.

Jiahong Li: Excluding this investment, our operating expenses ratio declined year-on-year, reflecting the benefit of disciplined cost control and efficiency initiatives across core corporation. In H2, 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 lower revenue and strategic investment in our China-based injectable operation. In H1, gross profit was $97.2 million, with gross margin of 56.7%, down from the 60% a year earlier. Adjusted net profit was $5.04 million, compared with $12 million in the prior year period. The adjusted margin was 2.9%, down 4.3 percentage points year-on-year. We have already rolled out targeted improvement measures, and in H2, we will focus on lifting operating quality, strengthening profitability, and improving cash conversion efficiency.

Speaker #1: We will maintain a prudent financial approach, managing costs carefully while continuing to invest for strategic growth. On profitability, results were temporarily affected by lower North America revenue and strategic investment in our China-based injectable operation.

Speaker #1: In the first half, gross profit was 97.2 million dollars with gross margin of 56.7% down from the 60% a year earlier. Adjusted net profit was 5.4 5.04 million US dollars compared with 12 million dollars in the prior year period.

Jiahong Li: In H1, gross profit was $97.2 million, with gross margin of 56.7%, down from the 60% a year earlier. Adjusted net profit was $5.04 million, compared with $12 million in the prior year period. The adjusted margin was 2.9%, down 4.3 percentage points year-on-year. We have already rolled out targeted improvement measures, and in H2, we will focus on lifting operating quality, strengthening profitability, and improving cash conversion efficiency.

Speaker #1: Adjusted margin was 2.9%, down 3 to 4.3 percentage points year on year. We have already rolled out targeted improvement measures, and in the second half we'll focus on lifting operating quality, strengthening profitability, and improving cash conversion efficiency.

Speaker #1: From a financial stability perspective, as of June 30, 2026, we held cash and cash equivalents of $77.3 million, and our overall financial position remains solid. Looking ahead, we'll continue to balance reinvestment for long-term growth with shareholder returns, delivering sustainable value on both fronts.

Jiahong Li: From a financial stability perspective, as of 30 June 2026, we held cash and cash equivalents of $77.3 million, 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 H1, the global market environment remained challenging. Against 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 will help build differentiated competitive advantages.

Speaker #1: With that overview, let me close with a brief summary and outlook. In the first half, the global market environment remained challenging. Against that backdrop, we maintained solid performance, once again demonstrating the resilience of our business. With industry-leading EBITDA as our foundation, rapidly expanding injectables as a new growth driver, and the AI-driven ecosystem strategy, we have built differentiated competitive advantages.

Jiahong Li: In H1, the global market environment remained challenging. Against 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 will help build differentiated competitive advantages.

Speaker #1: 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 Daxi fees 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 Miyun localized manufacturing base.

Jiahong Li: Looking ahead in H2, we will strengthen our product portfolio in key markets, enhance commercial execution in North America, and accelerate the penetration of DAXXIFY's 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 Miyun 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 will now move on to Q&A. Back to the operator. Thank you, management. Now it is time to take questions. Investors dialing in through phone calls, please note the instruction and please refrain from asking for more than two questions. You can also put your question through the chat box on the online.

Speaker #1: Further ahead, underpinned by a solid balance sheet and a clear strategic roadmap, we're confident in delivering higher-quality growth through organic expansion and external opportunities alike, and in increasing sustainable, long-term value for our shareholders.

Jiahong Li: 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 will now move on to Q&A. Back to the operator.

Speaker #1: 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 from investors dialing in through phone calls.

Fan Hui: Thank you, management. Now it is time to take questions. Investors dialing in through phone calls, please note the instruction and please refrain from asking for more than two questions. You can also put your question through the chat box on the online. Now, over to the assistant to give us the instruction.

Speaker #1: Please note the instruction and please refrain from asking from for more than two questions. And you can also put your question through the chat box on the online.

Speaker #1: Now, over to the assistant to give us the instructions. Hello. If you have a question, you can press star one on your phone keypad—star, followed by one—after the prompt tone. You can then identify yourself and ask your question.

Jiahong Li: 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 on your phone and start to ask your question after the prompt. Now, the first question is from He Jingpeng from CITIC Securities. Thank you. Great to have this opportunity. I am He Jingpeng from CITIC Securities. I have two questions. First of all, in terms of the global and China conditions, has your adjustments of the global and China mix been completed? What is the management architecture that is in place now? The second question is about the strategic development goal for your overseas business.

Operator: 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.

Speaker #1: Good afternoon. If you want to ask a question, you can press star one on your keypad or your phone and start to ask your question after the prompt.

Fan Hui: Good afternoon. If you want to ask a question, you can press star one on your keypad on your phone and start to ask your question after the prompt. Now, the first question is from He Jingpeng from CITIC Securities.

Speaker #1: Now, the first question is from Civic Security. Thank you. Great to have this opportunity. I'm from Civic Security. I have two questions.

He Jinping: Thank you. Great to have this opportunity. I am He Jingpeng from CITIC Securities. I have two questions. First of all, in terms of the global and China conditions, has your adjustments of the global and China mix been completed? What is the management architecture that is in place now? The second question is about the strategic development goal for your overseas business. Do you have a targeted strategic objective, including key markets that are North America, China, and their strategy, respectively?

Speaker #1: First of all, now in terms of the global and China conditions, have your adjustments of the global and China mix been completed? And what is the management architecture that is in place now?

Speaker #1: And the second question is about the strategic development goal for your overseas business. Do you have a targeted strategic objective, including key markets such as North America and China, and their strategies respectively?

Jiahong Li: Do you have a targeted strategic objective, including key markets that are North America, China, and their strategy, respectively? Thank you. Regarding the management adjustment, I will leave it to our Chairman, Lior. The second question about the future development of North America and China, that will be from Ayar, from our CEO.

Speaker #1: 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 will be answered by Aya, our CEO.

Jiahong Li: Thank you. Regarding the management adjustment, I will leave it to our Chairman, Lior. The second question about the future development of North America and China, that will be from Ayar, from our CEO.

Speaker #2: Yeah. Thank you very much for the question. About the the structure the restructure. So definitely we 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 and and North America the changes we have done are are still rolling it's supposed to basically strength the execution coordinate and and and create accountability for the growing of of of the of the business for example John Lee which is on the call here is in addition to his co-CEO position is leading the the activity as the president of Sisram 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 in the second half we'll see more progress on this operational efficiency and execution which is on the go.

Lior Dayan: Yeah, thank you very much for the question. About the restructure, we have started several important management adjustments in both of the major markets, those markets which we have focused, which is China, of course, and North America. The changes we have done are still rolling. It is 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, he is leading the activity as the President of Sisram 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.

Lior Dayan: For example, Jiahong Li, which is on the call here, in addition to his Co-CEO position, he is leading the activity as the President of Sisram 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.

Lior Dayan: In the second half, we will see more progress on this operational efficiency and execution, which is on the go. 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.

Speaker #2: So, as the business continues to evolve, we expect to continue to optimize and strengthen our organization where we find it appropriate, in order to support our long-term strong business growth strategy.

Speaker #1: Thank you, Lior. I will move on to the second question.

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

Eyal Ben David: Thank you, Lior. I will refine to the second question.

Speaker #2: Yeah.

Lior Dayan: Yeah.

Speaker #1: 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.

Eyal Ben David: It is very important to say that strategy is not something that you shift year after year. It is a compass that you believe in and you follow. Nevertheless, we always look at reality, and we learn, and we adapt. Our strategy is remain 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, where we earn the trust. 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 have launched a mega project that we have been investing and working on for many years, launching DAXXIFY. This is defining us as a leader.

Speaker #1: Nevertheless, we always look at reality and we learn and we adapt. Our strategy remains to have a fully integrated ecosystem, where the EBD is the core and we strengthen it with injectables, diagnostics, and AI-powered skincare.

Speaker #1: But the EBD core is where we win the markets, where we earn trust. And our core objective is to evolve from a single brand into a comprehensive medical aesthetic solution provider.

Eyal Ben David: 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 have launched a mega project that we have been investing and working on for many years, launching DAXXIFY. This is defining us as a leader.

Speaker #1: 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 in and working on for many years.

Speaker #1: Launching Daxify. 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 EBD the next-generation devices.

Eyal Ben David: We are defining unique protocols for China, and we are driving increased utilization and repeat purchase. We also accelerate for the EBD, the next-generation devices. We want to deepen the interaction and 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 EBD and injectables in China. As mentioned in the statements, we have an important milestone. We have the capacity in a Beijing facility to localize the product. It is one product today, but it is 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.

Speaker #1: We want to deepen the interaction and integration between the commercial, the customer, and medical education. We also aim to improve our supply chain across the company and make sure that we are ready for the next stage of integration between EBD and injectables in China.

Speaker #1: 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 for growth in APAC.

Eyal Ben David: As mentioned in the statements, we have an important milestone. We have the capacity in a Beijing facility to localize the product. It is one product today, but it is 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.

Speaker #1: As for North America, we realign our commercial framework and our operating model, ensuring we maximize the value of North America's strength. We understand that what really matters is our brand, and what matters most is our customers and install base.

Eyal Ben David: We understand that what really matters is our brand, 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 improvements. We are establishing our foundation to have a sustainable long-term growth. Thank you. Yeah, good. Thank you, management, for your very specific answer. Yeah, thank you. We wish you a better and a better future. Now, I am going to invite next speaker from Founder Securities, Gu Han Ting. The floor is yours.

Speaker #1: Our focus is to come back to our customers who showed trust and to make sure that they make the best out of their systems and deliver amazing results for their patients.

Speaker #1: This is our first priority. We also want to make sure that we work on and prioritize our performance stabilization and profitability recovery throughout the region.

Speaker #1: We proactively look for cost realignments and maintain a clear focus on margin improvements. We're establishing our foundation to achieve sustainable long-term growth. Thank you.

He Jinping: Thank you.

Speaker #3: Yeah, good. Thank you to the management for your very specific answer. Yeah, thank you. We wish you a better and better future. And now, we're going to invite the next speaker from Founder Securities, Gu Hanting.

Fan Hui: Yeah, good. Thank you, management, for your very specific answer. Yeah, thank you. We wish you a better and a better future. Now, I am going to invite next speaker from Founder Securities, Gu Han Ting. The floor is yours.

Speaker #3: The floor is yours. Yeah. Dear management, I'm from Founder Securities. I have two quick questions for the management. The first question is about Daxify. Daxify.

Gu Han Ting: Dear management, I am from Founder Securities. I have two quick questions for the management. The first question about DAXXIFY. In H1 of this year, what is the confirmed sales revenue? What is the volume? Compared to our annual objective, will there be any adjustment? My second question is about product sales movement and repurchase on DAXXIFY. What is the repurchase, and 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 DAXXIFY and the future sales goal on DAXXIFY, and the repurchase performance on DAXXIFY, and the coverage of institutes, we are going to invite Jiahong Li. Yeah. Thank you very much.

Gu Hanting: Dear management, I am from Founder Securities. I have two quick questions for the management. The first question about DAXXIFY. In H1 of this year, what is the confirmed sales revenue? What is the volume? Compared to our annual objective, will there be any adjustment? My second question is about product sales movement and repurchase on DAXXIFY. What is the repurchase, and 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?

Speaker #3: 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?

Speaker #3: My second question is about product sales movement and repurchase on Daxify. What is the repurchase, and does it include sales activation or movement? In terms of the clinics or institutes we have covered, what about our future plan for expanding into different institutions?

Speaker #3: For example, when it comes to revenue on Daxify, the future sales goal on Daxify, the repurchase performance on Daxify, and the coverage of institutes, we're going to invite John Jahong.

Fan Hui: When it comes to revenue on DAXXIFY and the future sales goal on DAXXIFY, and the repurchase performance on DAXXIFY, and the coverage of institutes, we are going to invite Jiahong Li.

Speaker #3: Yeah, thank you very much. We haven't disclosed a specific number on Daxify yet, but in overspeaking, the commercialization on Daxify is well aligned with our expectation.

Jiahong Li: Yeah. Thank you very much. We have not disclosed a specific number on DAXXIFY yet, but overall speaking, the commercialization on DAXXIFY 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 is any updated information.

Jiahong Li: We have not disclosed a specific number on DAXXIFY yet, but overall speaking, the commercialization on DAXXIFY 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 is any updated information. Yeah, at present, we follow a scheduled cadence to proceed DAXXIFY'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, we promote and reproduce it region by region. That is your first question. The next question is about sales movement and the repurchase. As of end of H1 of this year, our shipment has exceeded 30 vials, exceeding 28 provinces and nearly 500 premium medical aesthetic clinics.

Speaker #3: Our annual operational goal is 100 million RMB. We are on pace, or cadence, and it will be adjusted according to updates on commercialization in the Chinese market.

Speaker #3: We will share with you if there's any updated information. Yeah. At present, we follow a scheduled cadence to proceed with Daxify's business in our largest market, mainland China.

Jiahong Li: Yeah, at present, we follow a scheduled cadence to proceed DAXXIFY'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, we promote and reproduce it region by region. That is your first question. The next question is about sales movement and the repurchase. As of end of H1 of this year, our shipment has exceeded 30 vials, exceeding 28 provinces and nearly 500 premium medical aesthetic clinics.

Speaker #3: We will secure our leadership, and then, if the maturity on both commercialization and regulation is available, we will promote and reproduce it region by region.

Speaker #3: That's your first question. The next question is about sales movement and the repurchase as of the end of the first half of this year. Watchman has exceeded 30 vials, reaching across 28 provinces and nearly 500 premier medical aesthetic clinics.

Jiahong Li: 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, the training and also service at the end, as well as localized, customized the 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 realized quarter-by-quarter growth, which has really built our strong leadership at premium. The BTA or BTA market penetration is increasing. From H2 of this year, commercialization will shift from just a coverage into more deeper penetration.

Speaker #3: The driven forces are the penetration at the end market as well as standardized training for the practitioners, which has been executed very well. So, at the English level, we could benchmark the medical aesthetic clinics. We will carry out the following three works.

Speaker #3: First, standardized clinical training. We refined the training and also the service at the end, as well as localized and customized the injection protocol. This will increase both the frequency of clinical application and a stronger intention for repurchase.

Speaker #3: Yeah, we are interested in this topic. We keep the repurchase at a very healthy level. We realized quarter-by-quarter growth, which has really built our strong leadership at premium. The BT or BTA market penetration is increasing.

Jiahong Li: We are interested in this topic. We keep the repurchase at a very healthy level. We realized quarter-by-quarter growth, which has really built our strong leadership at premium. The BTA or BTA market penetration is increasing. From H2 of this year, commercialization will shift from just a 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.

Speaker #3: So from the second half of this year, commercialization will shift from just coverage into deeper penetration. Our priority is to build the benchmark sites in China to optimize the local injection protocol and increase the repurchase level as well.

Fang Hui: 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 Northeast Securities. Lee Sinma, Northeast Securities, please. Dear leaders, good afternoon. We really appreciate this great opportunity during the Q&A. I want to follow up DAXXIFY. Still a follow-up question on DAXXIFY. We have also heard that we are also witnessing a certain ratio on profit-sharing may decrease that. What is the update on the ongoing negotiation? What is our percentage? More specifically, how much percentage point will be declined? When will we have an explicit answer or result? This is the negotiation on DAXXIFY as well as Revance.

Speaker #3: Thank you. Yeah, thank you very much. Regarding your question, we are looking forward to further updates on the sales as well. Thank you.

Fan Hui: 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 Northeast Securities. Lee Sinma, Northeast Securities, please.

Speaker #3: Our next question is from Li Senman with Northeast Securities. Northeast Securities, please go ahead. Dear leaders, good afternoon. We really appreciate this great opportunity during the Q&A.

Li Senman: Dear leaders, good afternoon. We really appreciate this great opportunity during the Q&A. I want to follow up DAXXIFY. Still a follow-up question on DAXXIFY. We have also heard that we are also witnessing a certain ratio on profit-sharing may decrease that. What is the update on the ongoing negotiation? What is our percentage? More specifically, how much percentage point will be declined? When will we have an explicit answer or result? This is the negotiation on DAXXIFY as well as Revance.

Speaker #3: I want to follow up on Daxify. Yeah, still a follow-up question on Daxify. So, we have also heard—or we are also witnessing—a certain ratio on profit sharing may decrease.

Speaker #3: What are the updates on the ongoing negotiation? Specifically, what is our percentage, and more specifically, how many percentage points will be declined? Also, when will we have an explicit answer or result?

Speaker #3: So this is the negotiation on Daxify, as well as REMIX. The next question is still about the pricing at the end market, as Daxify is deemed a premium product.

Fang Hui: The next question is still about the pricing at the end market of DAXXIFY. It is deemed as a premium product. This is my question about the overall pricing on DAXXIFY, including the expenditures for single treatment and also comparative to BOTOX. What is the premium of our products? How much higher? What about the profitability in this field compared to the competitors? What are our advantages? Thank you very much. These are the two questions. Thank you so much. The first question about Revance negotiation, we are going to invite our CEO about updates on Revance negotiation. The second question about the pricing of DAXXIFY at the end market, we are going to invite Jiahong Li to answer, take the second question. Thank you. Thank you. Indeed, a very important question.

Li Senman: The next question is still about the pricing at the end market of DAXXIFY. It is deemed as a premium product. This is my question about the overall pricing on DAXXIFY, including the expenditures for single treatment and also comparative to BOTOX. What is the premium of our products? How much higher? What about the profitability in this field compared to the competitors? What are our advantages? Thank you very much. These are the two questions.

Speaker #3: So, this is my question about the overall pricing on Daxify, including the expenditures for a single treatment, and also how it compares to Vortex. What is the premium for our products?

Speaker #3: How much are higher, and what about the profitability in this field compared to the competitors? What are our advantages? Yeah. Thank you very much.

Speaker #3: These are the two questions. Thank you so much. The first question is about reverse negotiation. We're going to invite our CEO to provide updates on reverse negotiation.

Fan Hui: Thank you so much. The first question about Revance negotiation, we are going to invite our CEO about updates on Revance negotiation. The second question about the pricing of DAXXIFY at the end market, we are going to invite Jiahong Li to answer, take the second question. Thank you.

Speaker #3: The second question is about the pricing of Daxify in the end market. We're going to invite Jahong to answer. Please take the second question. Yeah, thank you.

Speaker #2: 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.

Eyal Ben David: Thank you. Indeed, a very important question. With Revance, it is a commercial agreement, but it is also building a relationship between two companies that are established as premium companies. The contract was signed a while back, and as we launch, we have an obligation to negotiate to have our best transfer price. We are exploring this opportunity. I will not disclose here, obviously, the specific terms, but we are exploring it on a wider aspect. We are seeking to broaden the scope of collaboration, expanding outside of not only being in mainland China, which is crucial, Hong Kong and Macau.

Eyal Ben David: With Revance, it is a commercial agreement, but it is also building a relationship between two companies that are established as premium companies. The contract was signed a while back, and as we launch, we have an obligation to negotiate to have our best transfer price. We are exploring this opportunity. I will not disclose here, obviously, the specific terms, but we are exploring it on a wider aspect. We are seeking to broaden the scope of collaboration, expanding outside of not only being in mainland China, which is crucial, Hong Kong and Macau.

Speaker #2: 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—but also Hong Kong and Macau. We are negotiating and speaking about launching and representing Daxify in other strategic markets, and that will affect this agreement. It could affect the total terms of our agreements and 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.

Eyal Ben David: We are negotiating and speaking about launching and representing DAXXIFY in other strategic markets, and that will affect this agreement, could affect the total terms of our agreement and our cooperation. I understand it is 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.

Speaker #2: Thank you.

Speaker #3: Yeah, I tried to take the second question, right. So for Daxify, as we said, it is positioned as a long-acting BTA. The price is $6,800 at the end market.

Jiahong Li: I try to take the second question, right. For DAXXIFY, as we said, it is positioned as a long-acting type of BTA. The price is RMB 6,800 at the end market, so we do not want to exchange the volume with a low price. We want to leave more margin for the clinics. We find that overall speaking, the price is quite stable. Some premium clinics realize its sales with good premium. Commercialization of DAXXIFY in China is direct to clinics. It is quite flattened, the model, without intermediates in the middle. We leave the sufficient profit and margin to clinics. When it comes to single treatment price difference compared to our competitors, we are not convenient to disclose the details. For DAXXIFY, first of all, it is long-acting, quick action, and very natural, and safer.

Speaker #3: So we don't want to exchange the volume for a low price. We want to leave more margin for the clinics. So we find that, overall, speaking, the price is quite stable.

Speaker #3: Some premium clinics realize sales with good premium commercialization of Daxify in China. It is a direct-to-flattened model, without intermediaries in the middle.

Jiahong Li: Commercialization of DAXXIFY in China is direct to clinics. It is quite flattened, the model, without intermediates in the middle. We leave the sufficient profit and margin to clinics. When it comes to single treatment price difference compared to our competitors, we are not convenient to disclose the details. For DAXXIFY, first of all, it is long-acting, quick action, and very natural, and safer.

Speaker #3: We leave sufficient profit and margin to clinics. So, when it comes to the single treatment price difference compared to our competitors, we are not convenient to disclose the details. But for Daxify, first of all, it is long-acting, quick-acting, and very natural and safer.

Speaker #3: So, for our competitors, if it can be maintained for three to four months, right, patients need to get three to four injections. But for Daxify, from efficacy, the median time of maintenance duration is six months.

Jiahong Li: For our competitors, if it can be maintained for 3 to 4 months, right? Patients need to get 3 to 4 injections. For DAXXIFY, from efficacy, the medium time of maintenance duration is 6 months. Some patients can last as long as 9 months from annualized consumption. The overall expenditure between the patients are very close, but for DAXXIFY, we have less times of injection to obtain equivalent, even longer maintenance duration, which will be more convenient for the patients, and it is a differentiated treatment experience. Overall speaking, we will offer clinics with competitive margin of profit. When DAXXIFY has a quick action, a long-acting as its differentiators, it will help clinics to improve both satisfaction, stickiness, and operational efficiency or productivity. Thank you. Thank you, leaders, for your great sharing and answer. No questions from my side. Thank you.

Speaker #3: Some patients can last as long as nine months from annualized consumption. So the overall expenditure between the patients is very close, but for Daxify, we have fewer injections to achieve an equivalent or even longer maintenance duration, which will be more convenient for the patients. It's a differentiated treatment experience, broadly speaking.

Jiahong Li: The overall expenditure between the patients are very close, but for DAXXIFY, we have less times of injection to obtain equivalent, even longer maintenance duration, which will be more convenient for the patients, and it is a differentiated treatment experience. Overall speaking, we will offer clinics with competitive margin of profit. When DAXXIFY has a quick action, a long-acting as its differentiators, it will help clinics to improve both satisfaction, stickiness, and operational efficiency or productivity. Thank you.

Speaker #3: We offer clinics with competitive margins of profit, and when Daxify has both quick action and long-acting properties as its differentiators, it will help clinics improve both satisfaction, stickiness, and operational efficiency.

Speaker #3: Or productivity. Thank you. Yeah, thank you. Dear leaders, thank you for your great sharing and answers. No questions from my side. Thank you. The next question is from Sealand Securities' Ding Jing Xing. Sealand Securities, Ding Jing Xing, please.

Li Senman: Thank you, leaders, for your great sharing and answer. No questions from my side. Thank you.

Fang Hui: The next question is from Zhongtai Securities, Ding Jin Xin. Zhongtai Securities, Ding Jin Xin, please. Zhongtai 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 BTA market, especially including the landscape and including the overall trend, what about botulinum toxin market as a whole, about future trends? The next question is about localization. We have laid out on localization. In China, what is also the progress or the updates on localization? What is your future plan afterwards? Thank you. Thank you for your question. Double-check, for your first question about competitive landscape of botulinum, the toxin. The next question about localization, maybe Jiahong Li will take both the questions, right? First of all, I am going to talk about the overall landscape.

Fan Hui: The next question is from Zhongtai Securities, Ding Jin Xin. Zhongtai Securities, Ding Jin Xin, please.

Speaker #3: Dear management, hello everyone. Thank you so much for giving me this opportunity. I also have two quick questions. The first question is, we are wondering about the BTA market, especially regarding the landscape and the overall trend.

Jingxin Ding: Zhongtai 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 BTA market, especially including the landscape and including the overall trend, what about botulinum toxin market as a whole, about future trends? The next question is about localization. We have laid out on localization. In China, what is also the progress or the updates on localization? What is your future plan afterwards? Thank you.

Speaker #3: Yeah. What about the botulinum toxin market as a whole, regarding future trends? Localization—so we have laid out our plans for localization. In China, what is the progress or what are the updates on localization?

Speaker #3: What's your future plan afterwards? Thank you. Thank you for your question. So, double-check, for your first question about the competitive landscape on botulinum toxin, and the next question about localization, maybe Jahong will take both of the questions, right?

Fan Hui: Thank you for your question. Double-check, for your first question about competitive landscape of botulinum, the toxin. The next question about localization, maybe Jiahong Li will take both the questions, right?

Speaker #3: Oh, yeah. First of all, I'm going to talk about the overall landscape. We know from the supply side that it witnessed continuous expansion.

Jiahong Li: First of all, I am going to talk about the overall landscape. We know from the supply side, that it has witnessed a continuous expansion. Continuously speaking, there are eight products the botulinum toxin got the approval. The next one, two, three products, another four to six new products will enter the market. It witnessed quite cutthroat competition, especially it is concentrated in the so-called popular medium to premium market, medium to high market.

Jiahong Li: We know from the supply side, that it has witnessed a continuous expansion. Continuously speaking, there are eight products the botulinum toxin got the approval. The next one, two, three products, another four to six new products will enter the market. It witnessed quite cutthroat competition, especially it is concentrated in the so-called popular medium to premium market, medium to high market. We know that the botulinum toxic products are of a low supply. The demand is of great certainties, right. It is a very important SKU. As consumers' awareness has increased, as we have more and more indications, and also with the need of looking young and overall management on your contours, aesthetics, the demand will expand. The market capacity is expanded at the same time. But entry of some low to medium markets will impact your average selling price and your margins to some extent.

Speaker #3: So, continuously speaking, there are eight products on the botulinum toxin that got the approval. The next one, two, three products—another four to six new products—will enter the market.

Speaker #3: So it witnessed quite cutthroat competition, especially as it is concentrated in the so-called popular medium to premium market, medium to high market. We know the botulinum toxin products are of low supply.

Jiahong Li: We know that the botulinum toxic products are of a low supply. The demand is of great certainties, right. It is a very important SKU. As consumers' awareness has increased, as we have more and more indications, and also with the need of looking young and overall management on your contours, aesthetics, the demand will expand. The market capacity is expanded at the same time. But entry of some low to medium markets will impact your average selling price and your margins to some extent.

Speaker #3: The demand is of great certainty, right? It's a very important SKU. As consumer interest increases, as we have more and more indications, and also with the need for looking young and overall management of your contour aesthetics, the demand or, as well, the market capacity is expanding at the same time. But the entry of some low to medium market players will impact your average selling price and your margins to some extent.

Speaker #3: So, the competition on price will be more fierce, but premium products have this uniqueness, including efficacy, branding, and duration, and they can maintain a relatively stable pricing system in the market.

Jiahong Li: The competition on the price will be more fierce. But premium product has its uniqueness, including efficacy, branding, the duration, and it will maintain a relatively stable pricing system. The market will be highly segmented, including premium or the main or low end. For DAXXIFY has two key categories in the premium where there is competitive edge. Also, the competition will shift from only price war into a differentiator. We have not only BTA, but also recombinant new products or other emergent botulinum 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. 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?

Speaker #3: Be highly segmented, including premium or the main or low end. So for Daxify, there are two key categories in the premium, where there's competitive edge, and also competition will shift from only price into a different.

Jiahong Li: We have not only BTA, but also recombinant new products or other emergent botulinum 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. 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?

Speaker #3: So we have not only BTA, but also recombinant new products and other emergent botulinum toxin products. I think in the future, practitioners’ education, clinical evidence, product experience, and your commercialization capability are very important driving forces behind the competitive landscape.

Speaker #3: 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 recombo, the botulinum toxin—whether it will be recognized by the mainstreams, whether it can reach its commercialization target or not.

Jiahong Li: We will wait and see, including the Recombo, the botulinum toxin, whether it will be recognized by the mainstream, whether it can reach its commercialized target or not, we will wait there and see. In the future, the botulinum toxin market will be diversified and stratified, but the industry will be expanded further. I believe those products with differentiators, premium value creation, like DAXXIFY, will be provided with better opportunities on growth. In terms of the playbook on DAXXIFY, it was officially launched in January this year with very good updates on commercialization. Let's talk about the differentiator of the product from which we cut into the premium BTA market. It has also become the injectables growth engine. As I mentioned, in the H1, we have accumulated shipment of 30,000 that cover 500 premium medical aesthetic clinics in 28 provinces.

Speaker #3: We will wait and see. Yeah. In the future, the botulinus toxin market will be diversified and stratified. I mean, the industry will be expanded further.

Speaker #3: And I believe those products with differentiators, premium value creation like Daxify, will be provided with better opportunities for growth. Yeah. In terms of the playbook on Daxify, it was officially launched in January this year with a very good update on commercialization. Let's talk about the differentiator of the product, from which we cut into the premium BTA market.

Jiahong Li: In terms of the playbook on DAXXIFY, it was officially launched in January this year with very good updates on commercialization. Let's talk about the differentiator of the product from which we cut into the premium BTA market. It has also become the injectables growth engine.

Speaker #3: It has also become the injectables' growth in fortune. Well, as I mentioned, in the first half we have accumulated shipment of 30,000 that cover 500 premium medical aesthetic clinics.

Eyal Ben David: As I mentioned, in the H1, we have accumulated shipment of 30,000 that cover 500 premium medical aesthetic clinics in 28 provinces. The progress has been very well. That is to your first question. Also talk about localization. That was in June. The Chinese production base was officially put into production. The first EBD, which is called Alma Rejuve, which is successfully rolling offline.

Speaker #3: Twenty-eight provinces, so the progress has been very good. So that's to your first question. Also, talking about localization, in June the Chinese production base was officially put into production.

Jiahong Li: The progress has been very well. That is to your first question. Also talk about localization. That was in June. The Chinese production base was officially put into production. The first EBD, which is called Alma Rejuve, which is successfully rolling offline. This really marks a new stage for the localized strategy in China. This base is using the mature process from Israel and strict quality control system from Israel, which helps to optimize the supply chain, but also ensure quality consistency and stability. This production base also lay a foundation for the company to cover and dive deep in the Chinese market, but also covering APAC. By leveraging the China supply chain manufacturing capability,

Speaker #3: The first CBD, which is called Pharma, is successfully rolling offline. So this really marks a new stage for the localized strategy in China, and this base is using the mature process from Israel and strict quality control.

Eyal Ben David: This really marks a new stage for the localized strategy in China. This base is using the mature process from Israel and strict quality control system from Israel, which helps to optimize the supply chain, but also ensure quality consistency and stability. This production base also lay a foundation for the company to cover and dive deep in the Chinese market, but also covering APAC. By leveraging the China supply chain manufacturing capability,

Speaker #3: From Israel, which helps to optimize the supply chain but also ensure quality, consistency, and stability. And this production base also lays the foundation for the company to cover and dive deep in the Chinese market, but also covering APAC.

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