Q2 2026 Innovent Biologics Inc Earnings Call

Speaker #2: Okay, let's get started. Good evening, good morning, or good afternoon—depending on where you are, everyone. This is Yang, China Healthcare Analyst at JPMorgan.

Speaker #2: It is my pleasure to host the Innovent 2026 interim results conference call today. Innovent reported strong first-half numbers, with total revenue of more than RMB 8.6 billion and product revenue of RMB 8.2 billion, up 44.8% and 56.7% year over year, respectively.

Speaker #2: With an IFS net profit of RMB 1.25 billion, up 50.2% year-over-year, non-IFS basis profit also increased 40.5%. Gross margin also remained high at 85%.

Speaker #2: On the business side, we saw Innovent's portfolio expand to 20 marketed products, with 30 included in the NRDL, supported by a continued ramp-up in oncology and accelerating contributions from general biomedicine drug sales.

Speaker #2: We saw it first-half 2026, 2027 product revenue goal of RMB 20 billion appears quite reachable. On the basis of that, it is interesting to see Innovent now has 2030 goal to reach RMB 35 billion to RMB 40 billion total revenue by 2030.

[Company Representative] (JPMorgan Chase): On the basis of that, it is interesting to see Innovent now has a 2030 goal to reach RMB 35 billion to RMB 40 billion total revenue by 2030. Joining us today are Innovent management team, including Dr. Michael Yu, Founder, Chairman, and CEO. Ms. Vivian Zhang, Executive Director and the Chief Commercial Officer. Ms. Rachel Yu, Chief Financial Officer. Mr. Hui Zhou, Chief R&D Officer in Oncology. Mr. Lei Qian, Chief R&D Officer in General Biomedicine, and Dr. Samuel Zhang, Chief Business Officer. Following prepared remarks, we will move to Q&A. Now I'll turn the call over to Innovent IR team.

Speaker #2: Joining us today are the Innovent management team, including Dr. Michael Yu, Founder, Chairman, and CEO; Ms. Vivian Zhang, Executive Director and Chief Commercial Officer; Ms. Rachel Yu, Chief Financial Officer; Mr. Hui Zhou, Chief R&D Officer in Oncology; Mr. Lei Qian, Chief R&D Officer in General Biomedicine; and Dr. Samuel Zhang, Chief Business Officer.

Speaker #2: Following the prepared remarks, we will move to Q&A. Now, I'll turn the call over to the Innovent IR team.

[Company Representative] (Innovent): Thank you, Dr. Huang. Dear investors and analysts, thank you for joining Innovent Biologics 2026 interim results call. We have just published our interim results. Today we are very happy to have our senior management team here to discuss the results in details. Today's agenda will be as follows. To start with, Dr. Michael Yu, our Founder, Chairman, and CEO, will provide an overview of our H1 achievements. More importantly, we will share our updated long-term strategic outlook. Dr. Hui Zhou and Dr. Lei Qian, our Chief R&D Officers, will then deep dive into the advancements of our oncology and the general biomedicine pipelines. Lastly, Ms. Rachel Yu will walk us through the financial highlights and the conclusion remarks. Following their prepared remarks, we will open the floor for questions.

Speaker #3: Thank you, Dr. Huang. Dear investors and analysts, thank you for joining Innovent Biologics' 2026 interim results call. We have just published our interim results, so today we are very happy to have our senior management team here.

Speaker #3: To discuss the results in detail, today's agenda is as follows: to start with, Dr. Michael Yu, our founder, chairman, and CEO, will provide an overview of our first-half achievements. More importantly, we will share our updated long-term strategic outlook.

Speaker #3: And then Dr. Hui Zhou and Dr. Lei Qian, our chief R&D officers, will then deep dive into the advancements of our oncology and general biomedicine pipelines.

Speaker #3: And lastly, Ms. Rachel Yu will walk us through the financial highlights and the concluding remarks. Following their prepared remarks, we will open the floor for questions.

Speaker #3: So before we begin, I also want to remind you that the presentation slides for today's call are also available on our company's official website, under the Investors and Media section.

[Company Representative] (Innovent): Before we begin, I also want to remind you that the presentation slides for today's call is also available on our company's official website, under the Investors and Media section. With that, I will turn the call over to Dr. Michael Yu. Michael, please.

Speaker #3: So with that, I will turn the call over to Dr. Michael Yu. Michael, please.

Speaker #2: Thank you, Wendy. Good evening and good morning, everyone. Thank you for joining the call. This is a very important earnings call. In Innovent history, we marked our 15th anniversary on August 24, which was yesterday.

Michael Yu: Thank you, Wendy. Good evening and good morning, everyone. Thank you for joining the call. This is a very important earning call in Innovent history. We marked our 15th anniversary on 24 August, which is yesterday, and wrapped up our 14th annual strategy meeting about two weeks ago. At this pivotal junction, we see clearly our past progress, current position, and the future direction. Over the past 15 years, Innovent has accomplished two major transformations. In 2016, we transformed from a pure R&D biotech company into a full value chain biopharma, which integrate R&D, manufacturing, and the commercialization capabilities. In 2020, we embarked on our journey toward profitable and sustainable operations. Fueled by this shift, 2025 was our milestone year. We hit RMB 10 billion in revenue and posted our first full-year profit.

Speaker #2: And to wrap up our 14th annual strategy meeting—about two weeks ago—so at this pivotal junction, we see clearly our past progress, current position, and the future direction.

Speaker #2: Over the past 15 years, Innovent has accomplished two major transformations. In 2015, at 16, we transformed from a pure R&D biotech company into a full value-chain biopharma with integrated R&D, manufacturing, and commercialization capabilities.

Speaker #2: In 2020, we embarked on our journey toward profitable and sustainable operations. Fueled by this shift, 2025 was our milestone year. We hit RMB 10 billion in revenue and posted our first full-year profit.

Speaker #2: Our latest strategy meeting, which took place about two weeks ago, defined our third transformation. Which is, in 5 to 10 years' time, we will grow from a China-leading biopharma into a premier global biopharma, with world-class innovation and global operational capabilities.

Michael Yu: Our latest strategy meeting, which took place two weeks ago, defined our third transformation, which is in five to 10 years' time, we will grow from a China-leading biopharma into a premier global biopharma with world-class innovation and global operation capabilities. Next slide. The H1 2026 was far more than a continuation of our solid growth moment. It truly marks the official start of our new development chapter for the company. During this six-month period, our total revenue surged to RMB 8.6 billion, with a sustained profit expansion and a robust cash position. We have secured multiple landmark global partnerships, while a growing number of our pipeline assets have begun to deliver tangible global value and gain worldwide recognition. Collectively, these strong results confirm that Innovent has entered the most favorable strategic growth window since its establishment. Next slide.

Speaker #2: Next slide. The first half of 2026 was far more than a continuation of our solid growth momentum. It truly marks the official start of our new development chapter for the company.

Speaker #2: During this six-month period, our total revenue surged to RMB 8.6 billion. With sustained profit expansion and a robust cash position, we have secured multiple landmark global partnerships.

Speaker #2: While a growing number of our pipeline assets have begun to deliver tangible global value and gain worldwide recognition, collectively, this strong result confirms that Innovent has entered the most favorable strategic growth window since its establishment.

Speaker #2: Next slide. In the first half of this year, our business has maintained a robust growth momentum. Since the launch of our first commercial product in 2019, we have grown our commercial portfolio to a total of 20 products in just seven years.

Michael Yu: In the H1 of this year, our business maintained a robust growth moment. Since the launch of our first commercial product in 2019, we have grown our commercial portfolio to a total of 20 products in just seven years. Product revenue hit RMB 8.2 billion in H1 of this year, which represents a 57% year-over-year increase. Our capacity to deliver rapid growth at this scale is underpinned by our dual engine strategy spanning oncology and general biomedicine. While our oncology franchise retains its market-leading position, flagship assets within our general biomedicine portfolio, mazdutide, SYCUME, and SINTBILO, have emerging as a powerful new growth engines. Against this strong operating trajectory, we retain a high confidence in achieving our 2027 product revenue targets of RMB 20 billion. A figure we originally projected back in 2022, when we anticipate our 2027 product revenue will reach no less than RMB 13 billion.

Speaker #2: Product revenue hit RMB 8.2 billion in the first half of this year, which represents a 57% year-over-year increase. Our capacity to deliver rapid growth at this scale is underpinned by our dual-engine strategy, spanning oncology and general biomedicine.

Speaker #2: While our oncology franchise retains its market-leading position, flagship assets within our general biomedicine portfolio—Mesotide, Synphilo, and Synchrome—have emerged as powerful new growth engines.

Speaker #2: Against this strong operating strategy, we retain high confidence in achieving our 2027 product revenue targets of RMB 20 billion—a figure we originally projected back in 2022, when we anticipated our 2027 product revenue would reach no less than RMB 13 billion.

Speaker #2: Next slide. On the profitability front, robust revenue growth, coupled with sustained improvement in operating efficiency, will drive further earnings expansion. In the first half of this year, IFRS net profit reached approximately RMB 1.3 billion.

Michael Yu: Next slide. On the profitability front, robust revenue growth, coupled with a sustained improvement in operating efficiency, drive further earning expansion. In the H1 of this year, IFRS net profit reached approximately RMB 1.3 billion, representing a 50% year-over-year increase and already surpassing our full-year figure in 2025. We believe Innovent has entered a new phase of simultaneous scale and profit growth, establishing a high-quality, sustainable growth model for innovative biopharmaceutical enterprise. Meanwhile, with over USD$4.5 billion of cash on hand, we maintain ample financial resources to underpin our long-term strategic priorities. Next slide. Building on this strong foundation, we are embarking on the third critical transformation in Innovent's history, evolving from a regionary leading biopharmaceutical company into a premier global biopharma. 2026 to 2030 represents a pivotal strategic window to deliver this transformation. We have set a set of clear objectives under our 2030 vision. Number 1, revenue.

Speaker #2: Representing a 50% year-over-year increase and already surpassing our full-year figure for 2025. We believe Innovent has entered a new phase of simultaneous scale and profit growth, establishing a high-quality, sustainable growth model for an innovative biopharmaceutical enterprise.

Speaker #2: Meanwhile, with over $4.5 billion of cash on hand, we maintain ample financial resources to underpin our long-term strategic priorities. Next slide. Building on this strong foundation, we are embarking on the third critical transformation in Innovent's history.

Speaker #2: Evolving from a regional, leading biopharmaceutical company into a premier global biopharma, 2026 to 2030 represents a pivotal strategic window to deliver this transformation.

Speaker #2: We have set a set of clear objectives and our 2030 vision. Number one, revenue. Fueled by sustained momentum from our commercial portfolio and advancing pipeline, we target total revenue of approximately RMB 35 billion to RMB 40 billion by 2030.

Michael Yu: Fueled by sustained momentum from our commercial portfolio and advancing pipeline, we target total revenue of approximately RMB 35 billion to RMB 40 billion by 2030. In the next 3 to 4 years, our revenue will be nearly doubled. Second, profitability. Alongside rapid top-line expansion, we will steadily grow our profit margin to those of global leading biopharmaceutical peers, delivering high-quality growth across both scale and profitability. Number 3, globalization. By 2030, we intend to launch innovative products in key international markets, including the U.S. market and the European market, so that our overseas business will become a material driver of sustainable long-term growth. Number 4, global pipeline. By 2030, we expect at least 5 programs to be in global phase III MRCT studies, backed by a robust pool of early-stage assets under global development.

Speaker #2: So, in the next three to four years, our revenue will be nearly doubled. Second, profitability. Alongside rapid top-line expansion, we will steadily grow our profit margin toward those of global leading biopharmaceutical peers, delivering high-quality growth across both scale and profitability.

Speaker #2: Number three, globalization. By 2030, we intend to launch innovative products in key international markets, including the U.S. market and European market, so that our overseas business will become a material driver of sustainable long-term growth.

Speaker #2: Number four, global pipeline. By 2030, we expect at least five programs to be in global phase 3 MRCT studies, backed by a robust pool of early-stage assets under global development.

Michael Yu: Combined, they will constitute a highly competitive pipeline and lay solid groundwork for accelerated international growth post 2030. To underpin this ambitious, we will build out localized R&D, Commercialization, and supply chain capabilities step by step in key overseas markets. Our ultimate objective is to establish Innovent as a leading global biopharma with fully independent end-to-end operational capabilities. This is the key vision with a set of specific objectives for 2030. Next slide. Strategic framework from product-led growth to a portfolio-driven model. Our rapid, high-quality growth is underpinned by our distinctive strategic planning and execution approach, built in-house since the company's inception. Over the past 2 years, as our business has scaled up, we have further enhanced this approach by shifting from product-centric management toward a portfolio-driven operating model. We have also identified 8 priority therapeutic areas spanning from oncology to general biomedicine.

Speaker #2: Combined, they will constitute a highly competitive pipeline and a solid groundwork for accelerated international growth post-2030. To underpin this ambition, we will build out localized R&D, commercialization, and supply chain capabilities step by step in key overseas markets.

Speaker #2: Our ultimate objective is to establish Innovent as a leading global biopharma company with fully independent, end-to-end operational capabilities. This is the key vision, with a set of specific objectives for 2030.

Speaker #2: Next slide. Strategic framework from product-led growth to a portfolio-driven model. Our rapid, high-quality growth is underpinned by our distinctive strategic planning and execution approach.

Speaker #2: Built in-house since the company's inception. However, over the past two years, as our business has scaled up, we have further enhanced this approach by shifting from product-centric management toward a portfolio-driven operating model.

Speaker #2: We have also identified an A-priority therapeutic areas, spanning from oncology to general biomedicine. At the heart of this model lie an end-to-end management across the four value chains, ranging from early-stage research and clinical development through to regulatory affairs, commercialization, and manufacturing.

Michael Yu: At the heart of this model lies an end-to-end management across the full value chain, ranging from early-stage research and clinical development through regulatory affairs, commercialization, and manufacturing. This approach allows us to build a sustainable synergistic portfolio within each therapeutic area instead of managing individual products in silos. This systemic operational capability is a core enabler of our ability to sustain rapid growth even at scale. It also lies a solid foundation for our global expansion. Next slide. In oncology, we have built a robust product portfolio and a solid brand franchise across the major tumor indications, including lung, gastric cancer, and hematological cancers. Most recently, our partnership with Eli Lilly for Verzenio, a cornerstone therapeutic option for breast cancer, has granted us a critical commercial foothold in this large, high-prevalence disease area.

Speaker #2: This approach allows us to build a sustainable, synergistic portfolio within each therapeutic area, instead of managing individual products in silos. This systemic operational capability is a core enabler of our ability to sustain rapid growth even at scale.

Speaker #2: It also lays a solid foundation for our global expansion. Next slide. In oncology, we have built a robust product portfolio and a solid brand franchise across the major tumor indications.

Speaker #2: Including lung, gastric cancer, and hematological cancers. Most recently, our partnership with Eli Lilly for vaccines across strong therapeutic options for breast cancer has granted us a critical commercial foothold in this large, high-prevalence disease area.

Michael Yu: Verzenio also synergizes with our internal pipeline assets, including IBI354, which is a HER2 ADC, and IBI3014, which is a bispecific PD-L1 and TROP2 ADC, laying a solid foundation for the continued expansion of our breast cancer franchise. Underpinned by our long-term IO plus ADC strategy, we continue to advance our next-generation asset portfolios, including IBI363, IBI344, IBI354, and IBI3003. Collectively, these programs secure our trajectory for sustainable middle to long-term growth and further strengthens our competitive moat across core oncology segments. Next slide. In general biomedicine, we have successfully launched flagship products covering four major chronic disease areas. Driven by population aging and rising patient awareness of health and disease management, market demand for next-generation chronic disease therapeutics remains robust. As a result, our general biomedicine portfolio is rapidly emerging as a core growth pillar for the company. The metabolic disease franchise serves as a strong example.

Speaker #2: Vaccines also synergize with our internal pipeline assets, including IBI354, which is a HER2 ADC, and IBI3014, which is a bispecific PD-L1 and CHOP2 ADC.

Speaker #2: Laying a solid foundation for the continued expansion of our breast cancer franchise. Underpinned by our long-term IO+ADC strategy, we continue to advance our next-generation asset portfolios.

Speaker #2: Including IBI 363, IBI 344, fourthly, IBI 354, and IBI 3003. Collectively, these programs secure our trajectory for sustainable mid- to long-term growth and further strengthen our competitive moat across core oncology segments.

Speaker #2: Next slide. In general biomedicine, we have successfully launched flagship products covering four major chronic disease areas. Driven by population aging and rising patient awareness of health and disease management, market demand for next-generation chronic disease therapeutics remains robust.

Speaker #2: As a result, our general biomedicine portfolio is rapidly emerging as a core growth pillar for the company. The metabolic disease franchise serves as a strong example—Mesotite, the world's first GCG and GLP dual agonist, delivers differentiated clinical value across weight management, glycemic control, hepatic fat reduction, and uric acid lowering since its launch last year.

Michael Yu: Mazdutide, the world's first GCGR and GLP dual agonist, delivers differentiated clinical value across weight management, glycemic control, hepatic fat reduction, and uric acid lowering. Since its launch last year, Mazdutide has achieved exceptional market traction. We are executing a comprehensive lifecycle management strategy to further strengthen its brand equity and expand its market penetration and commercial reach. In parallel, our next-generation metabolic and weight loss pipeline has advanced into clinical development. These novel candidates will build upon Ozempic's commercial success, sustain our long-term growth momentum, and further solidify our leadership in the metabolic space. We are replicating this portfolio-driven strategy across cardiovascular, immunology, and ophthalmology therapeutic areas, combining high-potential commercial assets with next-generation innovative molecules. This systematic approach enables us to continuously expand each disease portfolio and build durable long-term competitiveness across all four core general biomedicine segments. Next slide.

Speaker #2: Mesotite has achieved exceptional market traction. Meanwhile, we are executing a comprehensive life cycle management strategy to further strengthen its brand equity and expand its market penetration and commercial reach.

Speaker #2: In parallel, our next-generation metabolic and weight loss pipeline has advanced into clinical development. This novel candidate will build upon Mesotite's commercial success, sustain our long-term growth momentum, and further solidify our leadership in the metabolic space.

Speaker #2: We are replicating this portfolio-driven strategy across cardiovascular, immunology, and ophthalmology therapeutic areas, combining high-potential commercial assets with next-generation innovative molecules. This systematic approach enables us to continuously expand each disease portfolio and build durable, long-term competitiveness across all four core general biomedicine segments.

Speaker #2: Next slide. Moving forward, globalization will stand as the core value driver for Innovent's next phase of growth. Our three core late-stage assets, including IBI 363, IBI 343, and IBI 324, are progressing smoothly in global Phase III MRCT studies.

Michael Yu: Moving forward, globalization will stand as the core value driver for Innovent's next phase of growth. Our three core late-stage assets, including IBI363, IBI343, and IBI324, are progressing smoothly in global phase III MRCT studies, addressing a combined market opportunity exceeding USD 60 billion. Building on the solid execution momentum achieved in the H1 of this year, this flagship asset will underpin our long-term value creation and support our 2030 global launch aspirations. Next slide. Meanwhile, backed by a steady stream of novel molecules originally from Innovent Academy, which is our own discovery and research organization, we currently have approximately 20 pipeline assets in early-stage clinical development. Through rigorous clinical assessment across phase I and proof-of-concept studies, we aim to advance more high-potential assets into global later-stage development. Dr. Hui Zhou and Dr. Lei Qian will elaborate further on our pipeline progress in the following sessions. Next slide.

Speaker #2: Addressing a combined market opportunity exceeding $60 billion, and building on the solid execution momentum achieved in the first half of this year, this flagship access asset will underpin our long-term value creation and support our 2030 global launch aspirations.

Speaker #2: Next slide. Meanwhile, backed by a steady stream of novel molecules originating from Innovent Academy, which is our own discovery and research organization, we currently have approximately 20 pipeline assets in early stage clinical development.

Speaker #2: Through rigorous clinical assessment across phase one and proof of concept studies, we aim to advance more high high potential assets into global global latest stage development.

Speaker #2: Dr. Hui Zhou and Dr. Lei Qian will elaborate further on our pipeline progress in the following sessions. Next slide. To date, our global expansion blueprint has clearly taken shape.

Michael Yu: To date, our global expansion blueprint has taken clear shape. Over the past 10 months, we have forged strategic collaborations with top-tier global pharmaceutical leaders, including Takeda, Eli Lilly, and Pfizer. We have also established pharmaceutical partnerships with specialized biotech firms such as Auron and Sparrow to accelerate the global development of our differentiated pipeline assets. These transactions represent an aggregate value of approximately USD 34 billion, accounting for roughly 30% of China's total cross-border biopharmaceutical partnership value over the same period of time. Notably, eight out of the industry's 10 largest global licensing deals involve Chinese enterprises. Innovent is proud to have secured three of these landmark transactions, each valued at approximately over USD 10 billion. Collectively, these partnerships cover over 20 assets spanning global phase III programs, early-stage clinical assets, and preclinical candidates.

Speaker #2: Over the past 10 months, we have forged strategic collaborations with top-tier global pharmaceutical leaders including Takeda, Eli Lilly, and Pfizer. We have also established pharmaceutical partnerships with specialized biotech firms such as Orlin and Spuro to accelerate the global development of our differentiated pipeline assets.

Speaker #2: This transaction represents an aggregate value of approximately $34 billion, accounting for roughly 30% of China's total cross-border biopharmaceutical partnership value over the same period of time.

Speaker #2: Notably, eight out of the industry’s 10 largest global licensing deals involve Chinese enterprises. Innovent is proud to have secured three of these landmark transactions.

Speaker #2: Each valued at approximately over $10 billion. Collectively, these partnerships cover over 20 assets spanning global phase three programs, early-stage clinical assets, and preclinical candidates.

Michael Yu: They form a well-structured global pipeline and create a clear, actionable roadmap for our ongoing international expansion. More importantly, five core programs are advancing under a global co-development, co-commercialization, and profit-sharing model. We have built a US-based team of over 100 dedicated professionals. Through this collaborative framework, we will steadily build out our overseas capabilities in R&D, regulatory affairs, and commercialization while accumulating robust experience to support sustainable global operations. Our ultimate strategic objective is to evolve into a fully global biopharmaceutical enterprise with independent end-to-end capabilities across the entire value chain. Next slide. Overall, our solid H1 performance further strengthens our confidence in delivering our near-term targets and executing our long-term strategic roadmap. Innovent is now at the most promising development stage in its history.

Speaker #2: They form a well-structured global pipeline and create a clear, actionable roadmap for our ongoing international expansion. More importantly, five core programs are advancing under a global co-development, co-commercialization, and profit-sharing model.

Speaker #2: We have built a US-based team of over 100 dedicated professionals through this collaborative framework. We will steadily build out our overseas capabilities in R&D, regulatory affairs, and commercialization.

Speaker #2: While accumulating robust experience to support sustainable global operations, our ultimate strategic objective is to evolve into a fully global biopharmaceutical enterprise with independent end-to-end capabilities across the entire value chain.

Speaker #2: Next slide. Overall, our solid first-half performance further strengthens our confidence in delivering our near-term targets and executing our long-term strategic roadmap. Innovent is now at the most promising development stage in its history.

Michael Yu: We remain fully resolved and confident to advance our third corporate transformation, striving to evolve into a premier global pharmaceutical company over the next 5 to 10 years. This concludes the key highlights of my presentation. I will now hand over the floor to Dr. Hui Zhou and Dr. Lei Qian, who will walk you through our R&D strategies and overall pipeline progress. Dr. Hui. Hui, please.

Speaker #2: We remain fully resolved and confident to advance our third corporate transformation, striving to evolve into a premier global pharmaceutical company over the next 5 to 10 years.

Speaker #2: This concludes the key highlights of my presentation. I will now hand over the floor to Dr. Hui Zhou and Dr. Lei Qian, who will walk you through our R&D strategies and overall pipeline progress.

Speaker #2: Dr. Hui. Dr. Hui, please.

Hui Zhou: Okay. Thank you, Dr. Yu. Next will be about our oncology part. We continue to advance our next generation IO and ADC portfolio. Our four anchor assets, core key oncology franchise, are now moving into pivotal stage development, supported by compelling clinical data, some already presented, and more to come at upcoming medical conference. Next. First is about our IBI363, which is co-development with Takeda, continues to be our flagship next generation IO asset. Our first wave of development is progressing on track. Melanoma, which is a China pivotal study. The first pivotal of IBI363 head-to-head comparison versus pembrolizumab in IO-naive melanoma is expected to read out data by end of this year, which would potentially support the first NDA submission for IBI363 in China. Third line MSS colorectal cancer. Third line colorectal cancer represents a key differentiation opportunity for IBI363 in treating cold tumors.

Speaker #3: Okay, thank you, Dr. Yu. So next will be about our oncology part. We continue to advance our next-generation IO and ADC portfolio. Our four anchor asset core key oncology franchises are now moving into pivotal stage development, supported by compelling clinical data—some already presented, and more to come at upcoming medical conferences.

Speaker #3: Next, first is about our IBS 363, which is co-developed with Takeda and continues to be our flagship next-generation IO asset. Our first wave of development is progressing on track.

Speaker #3: Our melanoma, which is China's pivotal study—the first pivotal of IBS-363—had a comparison versus pembrolizumab in IO-naive melanoma. We expect to read out data by the end of this year.

Speaker #3: Which would potentially support the first NDA submission for IBS 363 in China. Third line MSS colorectal cancer third line colorectal cancer represents a key differentiate opportunity for IBS 363 in treating co-tumors.

Speaker #3: And currently, our Phase III study in China was recently initiated. The third is IO-resistant non-small cell lung cancer. We are planning to expand our current MRCT Phase III trial, MOUTHLINE-11, from Screamers to non-Screamers population.

Hui Zhou: Currently, a phase III study in China recently initiated. The third is IO-resistant non-small cell lung cancer. We are planning to expand our current MRCT phase III trial, MarsLight-11, from squamous to non-squamous population. IO-resistant lung cancer alone represents significant unmet medical needs, with market opportunity estimated at USD 14 billion. We are looking forward to validating IBI363's potential through global development. First-line lung cancer. Based on the first phase dose optimization of the POC study in first-line lung, we also have the second phase, which is a randomized control study, which is ongoing to evaluate IBI363-based combination in head-to-head against pembrolizumab plus chemo. Another first-line POC in colorectal cancer is also ongoing. We are planning a broad development program to include additional solid tumor and combination regimen. We hope to establish IBI363 as a fundamental therapy for cancer patients worldwide. Next.

Speaker #3: IO-resistant lung cancer alone represents a significant unmet medical need, with a market opportunity estimated at US $14 billion. We look forward to validating IBS 363's potential through global development.

Speaker #3: In first-line lung cancer, based on the first phase dose optimization of the POC study in first-line lung, we also have the second phase, which is a randomized control study that is ongoing to evaluate IBS 363 based on a combination in a head-to-head against pamplisumab plus chemo. Another first-line POC in colorectal cancer is also ongoing. We are planning a broad development program to include additional solid tumors and combination regimens. We hope to establish IBS 363 as a fundamental therapy for cancer patients worldwide.

Speaker #3: Next, and here again, we talk about the updated data from the POC study of IBS 363 in second-line IO-resistant non-small cell lung cancer, which were presented at this year's ASCO.

Hui Zhou: And here, again, we talk about the updated data from the POC study of IBI363 in second-line L resistant non-small cell lung cancer, which were presented at this year's ASCO. The clinical data is remarkable across both non-squamous and squamous histologies. Patients treated with IBI363 demonstrated a significant long-term survival benefit. Nearly half of the patients survived beyond 24 months, a substantial improvement over the historical control docetaxel. Next. Furthermore, early POC data in first-line non-small cell lung cancer showed robust response rates regardless of PD-L1 expression level, validating the powerful immune activity from the IO2 of this novel bi-function molecules. Next is about our IBI3003, the tri-specific GPRC5D BCMA CD3 TISA engager. Encouraging initial data in heavily treated relapsed refractory multiple myeloma were presented at ASH last year.

Speaker #3: The clinical data is remarkable across both non-squamous and squamous histologies. Patients treated with IBS 363 demonstrated a significant long-term survival benefit—nearly half of the patients survived beyond 24 months.

Speaker #3: A substantial improvement over the historical control, docetaxel. Next. And furthermore, early POC data in first-line non-small cell lung cancer showed a robust response rate regardless of PD-L1 expression level, validating the powerful immune activity from the IO2 of this novel bifunctional molecule.

Speaker #3: Next is about our IBS3003, the tri-specific GPIC 5D BSMA CD3 T-cell engager. Encouraging initial data in heavily treated relapsed refractory multiple myeloma were presented at ASH last year.

Hui Zhou: Updated data set with extended follow-up and also dose optimization, and also increased sample size will be presented at the major medical conference in the second half of this year. Based on that, the first registration trial has been initiated in China, and we are moving in the development of first-line setting in combination with anti-CD38 monoclonal antibody. IBI3003 is a global second GPRC5D BCMA CD3 that move into phase III stage. Next. ADC platform capability is another core pillar of our next wave innovation. We have built a highly potent, low toxicity, and a different function for ADC development. Our diversity platform, single payload, dual payload, and actually can enable us to engineering everything from improved top one ADC to first-in-class dual payload ADC, and to position molecules across the four key therapeutic areas under our portfolio management approach.

Speaker #3: An updated data set with extended follow-up, dose optimization, and an increased sample size will be presented at a major medical conference in the second half of this year.

Speaker #3: Based on that, the first registration trial has been initiated in China, and we are moving forward with the development in the first-line setting in combination with an anti-CD38 monoclonal antibody.

Speaker #3: IBS3003 is a global second GPIC-5D BSMA CD3 that moved into phase 3 stage. Next, ADC platform capability is another core pillar of our next wave innovation.

Speaker #3: We have built a highly potent low toxicity and different function for ADC development. Our diversity platform single payload dual payload and exchange enable us to engineering everything from improved top one ADC to first in class dual payload ADC and to position molecules across the four key therapeutic areas under our portfolio management approach.

Speaker #3: Summarized here are the eight novel ADC assets already in the clinical stage. Beyond IBS 343 and IBS 354, which lead our development progress, the next wave of bi-specific and dual payload ADCs have advanced into Phase I through the POC stage.

Hui Zhou: Summarized here are the eight novel ADC assets already in clinical stage. Beyond IBI3003 and the IBI354, which lead our development progress, the next wave of bispecific and dual payload ADC have advanced into phase I through POC stage. Our goal is to identify, select the key molecules with global potential, become our next wave of global opportunities. Next. IBI3003 is our most advanced ADC, with a differentiated design that includes the Fc-silent domain to reduce GI toxicity, a highly stable linker, and a potent payload. It is the first CLDN18.2 ADC globally to reach the NDA stage. The NDA for third line above gastric cancer was accepted and granted priority review by NMPA in June 2026, and this phase III data was accepted as a BL here in this year's ESMO. In pancreatic cancer, a phase III study in third-line PDAC was initiated last year.

Speaker #3: Our goal is to identify and select the key molecules with global potential to become our next wave of global opportunities. Next, IBS-343 is our most advanced ADC with a differentiated design that includes an FC silent domain to reduce GI toxicity.

Speaker #3: A highly stable linker and a potent payload. It is the first current 18.2 ADC globally to reach the NDA stage. The NDA for third-line above gastric cancer was accepted and granted priority review by NMPA in June 2026.

Speaker #3: And this phase three data was accepted as a BLA share in 2000 at this year’s ESMO. In pancreatic cancer, a phase three study in third-line PDAC was initiated last year.

Hui Zhou: Notably, we plan to open a new phase III in first-line PDAC in combination with AG regimen, which is nab-paclitaxel combined with gemcitabine this year. The global phase I-B POC study in first-line gastric and first-line PDAC are also growing. Takeda holds China rights, and we advance the global phase III development upon POC readout. Next is about our IBI354, our HER2 ADC, and the strong validation our SoloTx platform. The key differentiation is simple. High potency with low toxicity. We have designed the molecule to have a significantly lower free toxin in the blood, enable full target engagement while maintaining a clean safety profile. To today, we have seen no grade 3 ILD and numerically lower TEAE versus peers. We have already initiated two phase III study, one in PROC and the other in first-line breast cancer.

Speaker #3: Notably, we plan to open a new phase three in first-line PDAC, in combination with the AG regimen, which is nab-paclitaxel combined with gemcitabine.

Speaker #3: This year, the global phase 1b BPOC study in first-line gastric and first-line PDAC are also growing. Takeda holds exchange rights and will advance the global phase 3 development upon POC readout.

Speaker #3: Next is about our IBS354, our HER2 ADC, and the strong validation of our SoloTx platform. The key differentiation is simple: high potency with low toxicity.

Speaker #3: We have designed the molecule to have significantly lower free toxin in the blood to enable full target engagement while maintaining a clean safety profile. To date, we have seen no grade 3 or higher IOD, and numerically lower TRAEs versus peers.

Speaker #3: We have already initiated two phase three studies—one in PROC and the other in first-line breast cancer. We are also moving quickly into the neoadjuvant and adjuvant settings, strategically expanding our breast cancer franchise.

Hui Zhou: We are also moved quickly into new adjuvant and adjuvant setting to strategically expanding to breast cancer franchise. Next, let me quickly highlight two more bispecific first-in-class ADC assets. IBI3001, our EGFR p723 bispecific ADC. We are currently in dose optimization stage. Early promising efficacy signal were observed in broader spectrum of tumor types, including small cell, head and neck, ESCC, PDAC, and other tumor types. The preliminary phase I dose escalation data will be orally presented at this year's ESMO. IBI3014, our PD-L1 TROP2 ADC. It is a tri-functional molecule with a favorable dose window that enable sufficient PD-L1 immune activation. It is also progressing through dose optimization across multiple solid tumors, mainly in lung cancer, breast cancer, and potential others. Next.

Speaker #3: Next, let me quickly highlight two more bispecific, first-in-class ADC assets. IBS 3001, our EGFR B723 bispecific ADC—we are currently in the dose optimization stage. Early, promising efficacy signals were observed in a broader spectrum of tumor types, including small cell, head and neck, ESCC, PDAC, and other tumor types.

Speaker #3: The preliminary Phase I dose escalation data will be orderly presented at this year's ESMO. IBS 1314, our PD-L1 CHOP2 ADC, is a tri-functional molecule with a favorable dose window that enables sufficient PD-L1 immune activation. It is also progressing through dose optimization across multiple solid tumors, mainly in lung cancer, breast cancer, and potentially others.

Speaker #3: Next, as I mentioned in the beginning, we focus on next-generation IO and ADC innovation to ensure the continued progress of the MRCT Phase III program and generating POC data to support long-term value creation.

Hui Zhou: As I mentioned in the beginning, we focus on next-generation IO and ADC innovation to ensure that the continued progress of MRCT phase III program and generating POC data to support long-term value creation. Now, let's talk about what's next. Our oncology pipeline milestone from the H2 of this year into early 2027, starting with IBI363. The next few months will be critical. We have the pivotal melanoma readout, which could potentially support our first NDA for this molecule. We have the global phase III expansion plan, including IO-resistant non-squamous non-small cell lung cancer. We will continue data follow-up in first-line non-small cell lung cancer at CRC, plus early phase I data publication in first-line gastric cancer. For IBI354, we will have the phase III data readouts in platinum-resistant ovarian cancer, and more importantly, exploration into new adjuvant and new adjuvant treatments of breast cancer.

Speaker #3: Now let's talk about what's next—our oncology pipeline milestones from the second half of this year into early 2027. Starting with IBS 363, the next few months will be critical.

Speaker #3: We have the pivotal melanoma readout, which could potentially support our first NDA for this molecule. We have the global Phase III expansion plan, including IO-resistant non-squamous and lung cancer.

Speaker #3: We will continue data follow-up in first-line non-squamous and lung cancer at CRC, plus early phase one data publication in first-line gastric cancer.

Speaker #3: For IBS 354, we will have the phase 3 data readout in platinum-resistant ovarian cancer, and more importantly, exploration into neoadjuvant and adjuvant treatments for breast cancer.

Speaker #3: For IBS-343, we plan to initiate a new phase three in first-line PDAC in China, while continuing global POC follow-up in first-line PDAC and gastric cancers.

Hui Zhou: For IBI343, we plan to initiate new phase III in first-line PDAC in China, while continuing global POC follow-up in first-line PDAC and gastric cancers. For IBI303, we will share updated data with expanded sample size, and we are pushing it into first-line with anti-CD38 combination. Our ADC pipeline is reaching dose optimization stage, IBI3001 and IBI3013, IBI3014, and our dual payload ADC IBI1320, IBI1328, are advancing into validate the first-in-class dual payload ADC platform. Now, I will hand over to Dr. Lei Qian to General Biomedicine Pipeline update. Dr. Qian, please.

Speaker #3: For IBS 303, we'll share updated data with an expanded sample size, and we are pushing it into first-line with an anti-CD38 combination. Our ADC pipeline is enriched and is reaching the dose optimization stage with IBS 3001.

Speaker #3: And IBS305, 1314, and our dual payload ADC, IBI1320, 1328, are advancing into validating the first-in-class dual payload ADC platform. Now I will hand over to Dr. Lei Qian for a general biomedicine pipeline update.

Speaker #3: Dr. Qian, please.

Speaker #2: Thank you, Hui. In general biomedicines, we have built a very differentiated portfolio anchored by four flagship products. Mazutitide, the world's first glucagon GLP-1 receptor dual agonist.

Lei Qian: Thank you, Hui. In general biomedicines, we have built a very differentiated portfolio anchored by four flagship products. Mazdutide, the world's first glucagon GLP-1 receptor dual agonist. Asembelo, the first domestic PCSK9 inhibitor, already covered by an NRDL. PECONDLE, the first domestic IL-23p19 in China with a 2- to 12-week dosing regime. Finally, SYCUME, the first domestic IL-4 receptor blocking antibody covered by an NRDL. All these assets are rapidly becoming key growth pillars for the company. Looking ahead, we are focused on two things: maximizing the value of these products through lifecycle management, and building a next-generation pipeline that tackles global unmet needs and delivers valuable assets for the future. Next slide, please. We are conducting comprehensive lifecycle development for mazdutide, our core CVM cornerstone asset. To date, five phase III trials have been completed. Four ongoing and additional studies are either underway or in planning.

Speaker #2: Assemblo, the first domestic PCSK9 inhibitor, is already covered by NIDL. Concupart is the first domestic IO23 P19 in China with the Q12 week dosing regime, and finally, CUMI is the first domestic IDF1 receptor blocking antibody covered by NIDL.

Speaker #2: All these assets are rapidly becoming key growth pillars for the company. Looking ahead, we are focused on two things: maximizing the value of these products through lifecycle management, and building a next-generation pipeline that tackles global MNEs and delivers valuable assets for the future.

Speaker #2: We are conducting comprehensive lifecycle development for Mazutitide, our core CVM cornerstone asset. To date, five Phase III trials have been completed. Four ongoing and additional studies are either underway or in planning.

Lei Qian: Among upcoming milestones, we anticipate the approval of the 9 mg dose and the pivotal data readouts from the GLORY-3 study in early 2027. Multiple additional data readouts are also expected next year, including pivotal results in ulcer and adolescent obesity, as well as proof of concept readout in obesity with heart failure and MASH. Furthermore, we plan to initiate a phase III study evaluating mazdutide for cardiovascular risk reduction in patients with ASCVD, further solidifying its position as a cornerstone asset in our CVM portfolio. Our next generation obesity portfolio was a key highlight at ADA this year. IBI3032, our potential best-in-class oral small molecule GLP-1, is in phase I in both the US and China. With phase II planned for year-end, we demonstrated the clinical potential of this molecule at ADA this year.

Speaker #2: Among the upcoming milestones, we anticipate the approval of the 9-week dose and the pivotal data readout from the GLORY-3 study in early 2027.

Speaker #2: Multiple additional data readouts are also expected next year, including pivotal results in OSA and adolescent obesity, as well as proof of concept in obesity with heart failure and MASH.

Speaker #2: Furthermore, we plan to initiate a Phase 3 study evaluating Mazutitide for cardiovascular risk reduction in patients with ASCVD, further solidifying its position as a cornerstone asset in our CVM portfolio.

Speaker #2: Our next-generation obesity portfolio was a key highlight at ADA this year. IBI3032, our potential best-in-class, all small molecule GLP-1, is in Phase I in both the US and China.

Speaker #2: With phase two planned for year-end, we demonstrated the clinical potential of its molecule AT-88 this year. With a lower dose than of glipirone, we were able to achieve over 10% weight reduction within four weeks.

Lei Qian: With a lower dose than Ozempic, we were able to achieve over 10% weight reduction within four weeks. IBI3042, the world's first once-weekly oral GLP-1, is showing promising pre-clinical data, and this one we have got an IND permission and approval. Both our amylin analog, IBI3040, and our AGT siRNA, IBI3046, are also expected to enter the clinical by the end of this year. Finally, IBI3030, global first monthly GCG/GLP-1 antibody peptide conjugation asset, is on track for clinical entry in 2027. In ophthalmology, we have IBI324 ready for global clinical studies. IBI324 is a very differentiated VEGF Ang2 bispecific designed for higher potency and better tissue penetration. It offers three key advantages over Vabysmo: 30 to 60-fold higher Ang2 incubation, a molecule size approximately one-quarter that of ranibizumab, and a higher molar dose.

Speaker #2: IBI3042, the world's first once-weekly oral GLP-1, is showing promising preclinical data. For this one, we have an IND submission and approval.

Speaker #2: Both our emitting analog IBI-3040 and our INKB SRA IBI-3046 are also expected to enter the clinic by the end of this year.

Speaker #2: Finally, IBI3030, the global first monthly PCS9 GGG antibody peptide conjugation asset, is on track for clinical entry in 2027. In ophthalmology, we have IBI324 ready for global pivotal studies.

Speaker #2: IBI324 is a very differentiated VEGF antibody, specifically designed for higher potency and better tissue penetration. It offers three key advantages for wet AMD.

Speaker #2: Thirty to sixty-foot higher angiotube intubation, a molecule size appropriate, approved mainly one quarter out of white bismol and a higher molar dose. These attributes have enabled this asset to become the first molecule globally to demonstrate a superior outcome with various men, ahead of head clinical study.

Lei Qian: These attributes have enabled this asset to become the first molecule globally to demonstrate a superior outcome versus Vabysmo in a head-to-head clinical study. As shown in the right, in this page, IBI324 achieved faster and greater superior regional drying in diabetic macular edema, and a faster, greater, and more durable control of pigment epithelial detachments, PED, in wet age-related macular degeneration, wet AMD. We are advancing IBI324 through our strategic partnership with Ollin, who will lead the global phase III development, while Innovent manages patient enrollment in China and Korea. We will expect the global phase III studies to initiate the H2 this year. Next slide, please. In 2026, we will advance two innovative bispecific antibodies into the clinic to elevate the treatment outcomes of thyroid eye disease. First molecule is IBI3031, TSH receptor, IGF-1 receptor.

Speaker #2: As shown in the right in this deck in this page IBI 324 achieved faster and greater superior regional drying in diabetic macular edema and faster greater and more durable control of pigments panic lyle detachments PED in vet age related macular degeneration vet AMD.

Speaker #2: We are advancing IBI324 through a strategic partnership with All Link, who will lead the global Phase III development, while Innovent manages patient involvement in China and Korea.

Speaker #2: We expect the global Phase 3 studies to initiate in the second half of this year. Next slide, please. In 2026, we will advance two innovative bispecific antibodies into the clinic to elevate the treatment outcomes of thyroid IDs.

Speaker #2: The first molecule is IBI 33031 IDF1 TSH receptor, IDF1 receptor. The TSH receptor arm was thoughtfully designed to achieve optimal balance with the F1 receptor arm, enhancing efficacy while maintaining a broader drifting margin.

Lei Qian: The TSH receptor arm was thoughtfully designed to achieve optimal balance with the IGF-1 receptor arm, enhancing efficacy while maintaining a broader safety margin. For the IBI3038, IL-6, IGF-1 receptor, by targeting two validated pathways, we believe this asset has the potential to address fibrosis not only in thyroid eye disease, but also in other autoimmune conditions. Next slide, please. IBI355 is a third generation Fc-silent anti-CD40L antibody that we recently out-licensed to Sparrow Pharmaceuticals for total deal value of USD 1.1 billion. It is targeting the IgG4-related disease space, a multi-billion dollar opportunity. The key differentiation is its mode of action. It blocks germinal center formation and pathogenic plasma cell differentiation without depleting B cells.

Speaker #2: For the 3038 L6 IDF1 receptor, by targeting validated pathways, we believe this asset has the potential to address fibrosis not only in thyroid eye disease but also in other autoimmune conditions.

Speaker #2: Next slide, please. IBI 355 is a third generation Fc-silenced anti-DD40 ligand antibody that we recently out-licensed to Sparrow Therapeutics for a total deal value of $1.1 billion.

Speaker #2: It's targeting the IGF1, IGF4 repetitive disease space, a multi-billion dollar opportunity. The key differentiation is this mode of action: it blocks germinal center formation and pathogenic plasma cell differentiation without depleting B cells.

Speaker #2: And the more importantly we've engineered out the drum process risk dealing ing with first generation of CD40 ligand antibodies while keeping an IGF IDG like half life to avoid the PK issue of second generation molecules.

Lei Qian: And more importantly, we've engineered out the drug process risk seen with first generation of CD40 ligand antibodies, while keeping an IgG-like half-life to avoid the PK issue of second-generation molecules. We believe this profile positions this asset as a potentially transformative therapy, not just for IgG4-related disease, but for other antibody-mediated autoimmune diseases as well. As highlighted by our partner, Sparrow, IBI355 represents multiple development opportunities across autoimmune and rare diseases. We will initiate a phase II study in Touraine-Solente-Golé syndrome and in China soon, and Sparrow will lead the phase II for IgG4-related disease in Q2 next year. In autoimmune diseases, we are excited to see a growing pipeline leveraging novel targets combinations and extended dosing interval enabled by our YTE antibody engineering platform. For IBI3002, early clinical data has shown very encouraging improvements in lung function and inflammatory biomarkers.

Speaker #2: We believe this profile positions this asset as a potentially transformative therapy not just for IDG4-related disease, but for other antibody-mediated autoimmune diseases as well.

Speaker #2: As highlighted by our partner Sparrow, IBI 355 represents multiple development opportunities across autoimmune and rare diseases. We will initiate a Phase II study in children’s disease in China soon, as Sparrow will lead the Phase II for IDG4-related disease in the second quarter next year.

Speaker #2: In autoimmune diseases, we are excited to see a growing pipeline leveraging novel targets, combinations, and extended dosing intervals enabled by our YTE antibody engineering platform.

Speaker #2: For IBI 3002, early clinical data has shown very encouraging improvements in lung function and inflammatory biomarkers. While the molecule is currently being evaluated in hepatic dermatitis, we are also planning to initiate new proof-of-concept studies in respiratory indications.

Lei Qian: While the molecule is currently being evaluated in polycythemia, we're also planning to initiate new proof-of-concept studies with respiratory indications. We have observed rapid and sustained relief of cough symptoms associated with airway diseases, with efficacy that appears independent of Type 2 inflammation biomarker status. Proof-of-concept studies are planned in seasonal allergic rhinitis, SAR, persistent allergic rhinitis, PER, and chronic rhinosinusitis with nasal polyps, CRSwNP. Beyond these assets, we are also advancing IBI3013, IL-15, and IBI3034, TCD40MA, both these assets with extended half-lives. These molecules hold the potential to offer best-in-class efficacy, deeper clinical responses, and more convenient treatment options for patients with significant unmet needs, including vitiligo, AA, and IgA nephropathy. Next slide. Let me walk through our priorities in general biomedicines in the coming 6 or 5 months. First, we are maximizing the value of our commercialized products through lifecycle management.

Speaker #2: We have observed rapid and sustained relief of cough symptoms associated with airway diseases, with efficacy that appears independent of type 2 inflammation biomarker status.

Speaker #2: Proof of concept studies are planned in seasonal allergic rhinitis (SAR), persistent allergic rhinitis (PAR), and chronic rhinosinusitis with nasal polyps (CRSwNP).

Speaker #2: Beyond this assets we are also advancing IBI 3013 L15 and IBI 3034 10 CBCMA both this assets with extended half lives. This molecules hold the potential to offer best in class efficacy deeper clinic clinical responses and a more convenient treatment options for patients with significant MS needs including vital AA and IGA and.

Speaker #2: Next slide. Let me walk through our priorities in general biomedicines in the coming six or five months. First, we are maximizing the value of our commercialized products through life cycle management.

Lei Qian: We expect NDA approval for mazdutide, along with new lifecycle management initiatives. We also plan to submit the NDA for tafolecimab, PCSK9 inhibitor in first-line hypocholesterolemia. We look forward to phase III readouts for SYCUME, IL-4 receptor inhibitor in active steroid TED. Second, we are advancing our later-stage pipeline. IBI302 is on track for NDA submission by the end of this year, and we are pushing forward our global assets. IBI324 is making steady progress for MRCT phase III. Lastly, we continue to explore global opportunities in our early-stage pipeline, including early next-generation metabolic assets, ophthalmology specifics, and novel autoimmune indications. With that, I will conclude my part and hand it over to our CFO, Hui Zhou.

Speaker #2: We expect NDA approval for MuscleTide Dynamic along with new life cycle management initiatives. We also plan to submit the NDA for TUFF-69 inhibitor in first-line hypoglycerin, and we look forward to the Phase 3 readout for Secumi IGF-1 receptor inhibitor in inactive thyroid IDs.

Speaker #2: Second, we are advancing our latest stage pipeline. IBI-32302 is on track for NDA submission by the end of this year, and we are pushing forward our global assets. IBI-324 is making steady progress toward MRCT Phase III.

Speaker #2: Lastly, we continue to explore global opportunities in our early-stage pipeline, including early next-generation metabolic assets, novel bispecifics, and novel autoimmune indications.

Speaker #2: With that, I will conclude my part and hand it over to our CFO, Rachel.

Speaker #1: Thank you, Dr. Qian. Looking at our financial performance in the first half of 2026, we sustained strong growth momentum. Total revenue reached RMB 8.6 billion, representing 45% year-over-year growth, while product revenue grew 47% to RMB 8.2 billion.

Rachel You: Thank you, Dr. Qian. Look at our financial performance. In the H1 of 2026, we sustained a strong growth momentum. Total revenue reached RMB 8.6 billion, representing a 35% year-over-year growth, while product revenue grew 47% to RMB 8.2 billion. This strong performance was driven by the dual growth engine strategy, resulting in a more diversified and resilient revenue base. In the H1, we recognized approximately RMB 300 million in licensing income from BD transactions, primarily related to the recognition of the up-front payment and our collaboration with Takeda. Under the applicable accounting treatment, the timing of the revenue recognition is associated with the achievement of specific milestones. We expect to recognize additional up-front payment income in the H2. We still anticipate full-year up-front payment recognition to be around $200 to 300 million. Next slide, please.

Speaker #1: This strong performance was driven by the dual growth engine strategy, resulting in a more diversified and resilient revenue base. In the first half, we recognized approximately RMB 300 million in licensing income from BD transactions, primarily related to the recognition of the upfront payment in our collaboration with Takeda.

Speaker #1: Under the applicable accounting treatment, the timing of the revenue recognition is associated with the achievement of specific milestones. We expect to recognize additional upfront payment income in the second half. We still anticipate full year upfront payment recognition to be around $200 to $300 million.

Speaker #1: Second, next slide please. Process-wise, NFRS net profit reached RMB 1.3 billion, up 50% year over year. Notably, this half-year number already exceeded the full-year profit of 2025.

Rachel You: Profit-wise, non-IFRS net profit reached RMB 1.3 billion, up 50% year-over-year. Notably, this H1 number already exceeded the full year profit of 2025. Our R&D expenses increased to RMB 1.7 billion in the H1. As Michael mentioned, we have evolved towards portfolio-driven and a disease area-based management model to ensure sustained fast growth as we scale. The R&D investment reflects both the resource allocation to advancing our broader portfolio, as well as our growing commitment in globalization, including overseas clinical development, operations, and talent recruitment. Despite the lower licensing income recognition and increased R&D investments in the H1, we continue to deliver fast and high-quality profit growth. Looking ahead, we will focus on further improving profitability, benchmarking ourselves against the leading players, and building a high-quality growth model. Next, please. In 2022, we laid out our target to hit RMB 20 billion in product revenue by 2027.

Speaker #1: Our R&D expenses increased to RMB 1.7 billion in the first half. As Michael mentioned, we have evolved toward a portfolio-driven and disease-area-based management model to ensure sustained, fast growth as we scale.

Speaker #1: The R&D investment reflects both the resource allocation to advancing our broader portfolio, as well as our growing commitment to globalization, including overseas clinical development operations and talent recruitment.

Speaker #1: Despite the lower licensing income recognition and increased R&D investments in the first half, we continue to deliver fast and high-quality profit growth. Looking ahead, we will focus on further improving profitability, benchmarking ourselves against the leading players, and building a high-quality growth model.

Speaker #1: Next. In 2022, we laid out our target to hit RMB 20 billion in product revenue by 2027. Back then, our revenue was just RMB 4 billion.

Rachel You: Back then, our revenue was just RMB 4 billion, an ambition to grow product revenue fivefolds over five years. Now, driven by the momentum of our portfolio, we believe we stand a good chance of achieving this goal. Today, we are setting a new revenue target of RMB 35 to 40 billion by 2030. This means we have the potential to nearly double our revenue within the following three to four years, even our already scalable current revenue base. Importantly, this target is primarily underpinned by our existing commercial products, pipeline assets, and partnerships already in place. We expect it to be largely driven by organic growth with no assumption of additional in-licensing or out-licensing transactions. Supported by this strong and sustainable internal growth driver, we are confident that we can deliver this new ambition and further expand Innovent's long-term growth potential. Next slide.

Speaker #1: An ambition to grow product revenue fivefold over five years. Now, driven by the momentum of our portfolio, we believe we stand a good chance of achieving this goal.

Speaker #1: Today, we are setting a new revenue target of RMB 35 to 40 billion by 2030. This means we have the potential to nearly double our revenue within the following three to four years, given our already scalable current revenue base.

Speaker #1: Importantly, this target is primarily underpinned by our existing commercial products, pipeline assets, and partnerships already in place. We expect it to be largely driven by organic growth, with no assumption of additional in-licensing or out-licensing transactions.

Speaker #1: Supported by this strong and sustainable internal growth driver, we are confident that we can deliver this new ambition and further expand the Innovent long-term growth potential.

Speaker #1: Next slide. Finally, I would like to share our perspective on Innovent valuation. We believe Innovent stands among the innovative drug companies with compelling growth potential and high visibility over the coming years.

Rachel You: Finally, I'd like to share our perspective on Innovent's valuation. We believe Innovent stands among the innovative drug companies with compelling growth potential and high visibility over the coming years. First, Innovent is one of the few innovative drug companies in China that have strong growth momentum on the product revenue base of over RMB 10 billion. By setting this new 2030 goal, we will reinforce our leadership position in China. More importantly, globalization represents another major value driver. Three of our core assets are currently advancing through global phase III studies, while more than 20 additional assets are being developed through global partnerships. Meaningful clinical progress or successful commercialization across these programs would unlock substantial asset value for Innovent. Our current market cap is approximately $20 billion.

Speaker #1: First, Innovent is one of the few innovative drug companies in China that have strong growth momentum on the product revenue base of over RMB 10 billion.

Speaker #1: By setting this new 2030 goal, we will reinforce our leadership position in China. More importantly, globalization represents another major value driver. Three of our core assets are currently advancing through global factory studies, while more than 20 additional assets are being developed through global partnerships.

Speaker #1: Meaningful clinical progress or successful commercialization across these programs would unlock substantial asset value for Innovent. Our current market cap is approximately $20 billion. As we continue to deliver strong revenue and earnings growth and achieve further milestones across our global pipeline, we see a clear pathway to significant valuation appreciation as we advance toward our 2030 goals.

Rachel You: As we continue to deliver strong revenue and earnings growth and achieve further milestones across our global pipeline, we see a clear pathway to significant valuation appreciation as we advance toward our 2030 goals. That concludes our presentation today. Once again, thank you for your continued support of Innovent. We will now open the floor for questions. Dr. Wang.

Speaker #1: That concludes our presentation today. Once again, thank you for your continued support of Innovent. We will now open the floor for questions. Dr. Wang.

Speaker #2: Yeah, thank you for Innovent management—very detailed and comprehensive presentation. So I see a bunch of investors and analysts already raised their hands, but I will take the chance. Maybe I will ask two questions first.

[Company Representative] (JPMorgan Chase): Yeah. Thank you for Innovent management, a very detailed and comprehensive presentation. I see a bunch of investors and analysts already raise hands, but I will take the chance. Maybe I will ask two questions first. My first question is more, I think, strategic level. I would like to better understand. Now, Innovent has a grandiose 2030 goal with a revenue goal and with global launch target. I want to understand, how does a company set up such a strategical objective and the development direction, and how will Innovent ensure the correct and merciful execution of such goal? Also, since the company does well, have global launch by 2030. On such globalization goal, how will the company build up its overseas presence, targets, and talent team going forward from here?

Speaker #2: So my first question is more, I think, at a strategic level. I would like to better understand: Innovent now has a grandiose 2030 goal, with a revenue goal and, you know, a global launch target.

Speaker #2: So I want to understand how does a company so set up such a strategic objective and the development direction and how will innovant you know ensure the correct and meritful execution on such goal and also since the company this well you know have global launch right by 2030.

Speaker #2: So, on such globalization goal, how well the company, you know, builds up its overseas presence, targets, you know, talent and team going forward from here?

Speaker #3: Thank you. Thank you, Dr. Wang. Let me try to share with you how we develop our strategic objectives and how we can, you know, ensure that those strategic objectives can be accomplished.

Michael Yu: Thank you. Thank you, Dr. Wang. Let me try to share with you how we develop our strategic objective and how can we ensure that those strategic objective can be accomplished. Let me start with a few definitions, which is part of our strategic development methodology. We annually, every year, in Innovent history, we have our annual strategy meetings. At that meeting, we always ask the same set of questions, the same three questions, basically. The first question is related to our vision. Our vision in terms of duration, we usually set about 10 years. As you know, the mission is for lifetime, but vision is 10 years. The first question we ask at our annual strategy meeting is how will Innovent looks like by year 10 from now? So 10 years later, how Innovent will looks like. That's the first question.

Speaker #3: Let me start with a few definitions, which is part of our strategic development methodology. Now, we annually, every year in Innovent history, we have our annual strategy meetings.

Speaker #3: At that meeting, we always ask the same set of questions—the same three questions, basically. The first question is related to our vision—our vision in terms of duration.

Speaker #3: We usually set about 10 years. As you know the mission is for lifetime but vision is 10 years. So the question first question we ask at the at our annual strategy meeting is how innovant how will innovant looks like by year 10 from now.

Speaker #3: So, 10 years later, what will Innovent look like? That's the first question. The second question is: if we want to know how the company will look by year 10, what should we invest in over the next three years? Basically, that is a set of strategic objectives for the next three to five years for the company.

Michael Yu: The second question is, if we want to be how the company looks like by year 10, what should we invest in next three years? Basically, that is a set of strategic objective for three to five years of the company. That's the second question. Third question is, based on the area of focus of the area we are going to invest, what is the one-year KPI? The performance review index. Those are the same set of questions we ask every year to ourself. That's the number one. Number two, in order to develop a set of answers to those three questions, we usually would do analysis, as which we call GPIT. What does GPIT mean? GPIT stands for geopolitical and politics and the economic in China, which is P, and then followed by industry, which is I, and end with technology is T. So GPIT.

Speaker #3: So that's the second question. The third question is: Based on the area or focus where we're going to invest, what's the one-year KPI, the performance review index?

Speaker #3: So those are the same set of question we ask every year to ourself. So that's the number one. Number two in order to develop a set of question answers to those three questions we usually will do analysis as which we call GPI IT what's the GPIT mean GPIT means stand for geopolitical and politics and economic in China which is P and then followed by industry which is I and and with technology is T so GPIT.

Speaker #3: So you we usually spend a couple hours and to analyze all this micro environment from geopolitical particularly US China relation and our economic and political reform may be in China and look at the global industry and the China industry in biopharmaceutical space and followed by a technology like AI.

Michael Yu: We usually spend a couple hours and to analyze all this microenvironment from geopolitical, particularly US-China relation, and our economic and the political reform may be in China, and look at the global industry and the China industry in biopharmaceutical space, and followed by a technology like AI. Those are the four specific areas we believe have a major impact when we develop our strategic objectives. That's the number two. Then number three, related to this, is the meeting usually we start after Chinese New Year, so February, and the meeting will taking place in August. What that mean is take us about six months to develop and analyze to answer those three questions. That's basically I want to share with you the methodology we are taking year over year in last 15 years.

Speaker #3: So those are the four specific areas we believe have a major impact when we develop our strategic objectives. So that's the number two. And then number three, related to this, is the meeting usually we start after Chinese New Year.

Speaker #3: So February, and the meeting was taking place in August. What that means is it took us about six months to develop and analyze to answer those three questions.

Speaker #3: So that's basically what I want to share with you—the methodology we have been taking year over year in the last 15 years.

Speaker #3: And we found that very effective and very powerful, and the two transformations I shared with you earlier came out of this analysis.

Michael Yu: We found that very effective and very powerful, and the two transformations I shared with you earlier have come out from this analysis. For example, in 2016, we have only had assets product in phase II trial. We already planned the company how we can become a full value chain business. We did our first transformation from R&D company, transformed ourselves into a commercial company, prepared, basically gave us 2 years plan. The second transformation is happening in 2020. As you know, that time, lots of change following the year of 2020, and the company became a profitable company, which is a strategic goal we set in 2020 based on our analysis on GPIT, those four areas. I can share with you more detail with how we get that. The same is true for what we just announced tonight for 2030.

Speaker #3: For example in 2016 we have only have assets product in phase two trial we already to plan the company how we can be become a full chain full value chain business.

Speaker #3: So we did our first transformation from an R&D company, transformed ourselves into a commercial company, and basically gave us a two-year plan. And then the second transformation happened in 2020. As you know, at that time there were lots of changes following the year 2020, and the company became a profitable company, which was the strategic goal we set in 2020 based on our analysis on GPIT—those four areas.

Speaker #3: And you know, I can share with you more detail about how we get that. So the same is true for what we just announced tonight for 2030.

Speaker #3: Actually we have a goal for 2035 which we set two weeks ago. At that meeting we have a set of goal for year 10 which is 2035 and then for a three to five years goal which is 2030.

Michael Yu: Actually, we have a goal for 2035, which we set 2 weeks ago. At that meeting, we have set a goal for year 10, which is 2035, and then for a 3 to 5 years goal, which is 2030. The 2030 goal we have just here in my slide 4, based on the same set of methodology. We are very confident. When we do this year over year, every year, we analyze those four areas and by refocus our investment in the key areas, and eventually we found that we always get where we want to be. That is how we have been seeing ourselves in last 15 years. Thank you, Dr. Wei. I am not sure that I have answered your question, but just want to share with you our methodology.

Speaker #3: The 2030 goal we have just shared in my slides—slide four—is based on the same set of methodology. So we are very confident when we do this year over year. Every year, we analyze those four areas, and by refocusing our investment in the key areas, eventually we find that we always get where we want to be.

Speaker #3: That's how we have been seeing ourselves in the last 15 years. So thank you, Dr. Wino. I'm not sure that I have answered your question, but I just wanted to share with you our methodology to develop, you know, strategic goals and mission, vision, and how we analyze those parameters in order for our business to achieve those specific financial goals we have defined.

Michael Yu: We, to develop strategic goals and mission vision, and how we analyze those parameters in order for our business to achieve those specific financial goal we have defined.

Speaker #1: Okay great. Just very quick follow up on globalization. So how how will our company you know start launching products globally in in next few years and what have come come what has the company has been doing on that front.

[Company Representative] (JPMorgan Chase): Okay, great. Just a very quick follow-up on globalization. How will company start launching products globally in next few years, and what has the company has been doing on that front?

Speaker #2: Yeah let me start with you know we we as you know we have one of the goal for us is by 2030 we going to have five assets in MICT right and by before end of the year we only have three and we we are we are likely going to have more moving to MICT before 2030.

Michael Yu: Yeah, let me start with, as you know, one of the goal for us is by 2030, we are going to have five assets in MRCT, right? By before end of the year, we only have three, and we are likely going to have more moving to MRCT trial before 2030. Any one of those become successful by 2030 will be a launch in US and Europe, based on our time currently, the timeline we have for each one of those assets. Hui, you may want to add more if you, more colors.

Speaker #2: So any one of those become a successful by 2030 will be a launch in US and Europe. Based on our time currently you know the timeline we have for those each one of those assets.

Speaker #2: And the way you may want to add more if you need more colors. Yeah, so as you know, our globalization ambition is to build up end-to-end.

Hui Zhou: Yeah. As you know, our globalization, our ambition is to build up end to end. That means from discovery to clinical and even to CMC, and also definitely commercialization. This is one of our definition of globalization. Second, as you know, our globalization, currently, we already build up a strategic partnership with Takeda, Eli Lilly, and Pfizer. For those, we have including five co-co molecules, right? More than 10 to 20 license out. But actually, we still keep some multiple asset with ourself. We decide that move ahead with by our own capability, our own team. That is why we build up our China team, especially for the clinical team. Our goal also would like to build up the full functioning clinical team, especially in-house clinical team, to move ahead of those molecules for global development.

Speaker #2: So that means from discovery to clinical, and even to CMC, and also definitely commercialization. So this is one of our definitions of globalization.

Speaker #2: And the second, as you know, regarding globalization, currently we have already built up strategic partnerships with Takeda, Ilarili, and Pfizer. So with those, we have included five core molecules, right, and more than 10—10 to 20—licensed out.

Speaker #2: But actually, we still keep some multiple assets with ourselves. So, we decided to move ahead with our own capabilities and our own team. That's why we built up our China team, especially for the clinical team. Our goal would also be to build up a full-function clinical team, especially an in-house clinical team, to move ahead with those molecules for global development.

Speaker #2: So here, I think this is the overall whole picture, together with the goal which has already been shared with you from Dr. Yu. Thank you.

Hui Zhou: Here, I think this is the overall whole picture, and together with already the goal which share with from Dr. Ying with you. Thank you.

Speaker #1: Okay, great. Thanks for that. My second question will hopefully only require a short answer. It's about the 2030 revenue targets the company has set.

[Company Representative] (JPMorgan Chase): Okay, great. Thanks for that. My second question hopefully only requires some short answer. That is more about 2030 revenue targets company set up. Because for 2027, the company goal is on total product revenue, and now it is on total revenue, right? There is some magically become a little bit different, so I would like to understand how would you break down the 2030 revenue goal? For example, what could be potential revenue breakdown between domestic revenue and overseas revenue, or between revenue from oncology part and from general biomedicine part? Thanks.

Speaker #1: Because for 2027, right, the company goal is on product RAM total product revenue, and now it's on total revenue, right? So some metrics become a little bit different.

Speaker #1: So I would like to understand, how do you break down the 2030 revenue goal? For example, what could be the potential revenue breakdown between domestic revenue and overseas revenue, or between revenue from the oncology part and from the general biomedicine part?

Speaker #1: Thanks.

Speaker #2: Yeah, I have a question for you.

Michael Yu: Yeah. I have Rachel to address the question for you.

Speaker #3: Yeah, thank you, Michael. Thank you, Dr. Huang. I think, based on our current product revenue trend, we believe there is a relatively high chance for us to keep the R&D 20 billion product revenue target by 2027.

Rachel You: Yeah. Thank you, Michael. Thank you, Dr. Huang. I think based on our current product revenue trend, we believe there is relatively high chance for us to achieve the RMB 20 billion product revenue target by 2027. For the 2030 revenue target, it is actually primarily based on the company's existing commercialized products and the pipeline assets, as well as the partnerships already in place. We believe we stand a very good chance of achieving this revenue target on that basis. If you look at the revenue target, we expect first that the vast majority of the revenue still come from domestic product revenue. Our global products will potentially be launched around 2030 and contribute a certain amount of revenue in the form of profit sharing and royalty.

Speaker #3: The 2030 revenue target is actually primarily based on the company's existing commercialized products, the pipeline assets, as well as the partnerships already in place.

Speaker #3: So, we believe we stand a very good chance of achieving this revenue target on that basis. If you look at the revenue target, we expect that, first, the vast majority of the revenue will still come from domestic product revenue.

Speaker #3: And our global products will potentially be launched around 2030 and contribute a certain amount of revenue in the form of profit sharing and royalties.

Speaker #3: So, for example, our leading asset global pipeline 363, 343, and 324—if they're going to be launched overseas, we assume the company's top line will reflect profit-sharing or royalty income received from those products, rather than their end product sales.

Rachel You: For example, our leading assets global pipeline, 363, 343, and 324, if they are going to be launched overseas, we assume the company's top line will reflect profit sharing or royalty income received from those products rather than their end product sales. More importantly, I wanted to highlight, we anticipate global revenue will become the key driver for our company from 2030.

Speaker #3: But more importantly, I wanted to highlight, you know, we anticipate global revenue will become the key driver for our company from 2030.

[Company Representative] (JPMorgan Chase): Right. Okay. Got it. Thanks for the explanation. Yeah. Next, I will ask our investors and analysts to ask questions. Maybe Zhi, how about you go ahead?

Speaker #2: Right.

Speaker #1: Okay, got it. Thanks for the explanation. And yeah, so next I will ask our investors and analysts to ask questions. So maybe, Z, how about you go ahead.

[Company Representative] (JPMorgan Chase): Zhi, you want to ask question?

Speaker #1: And Z, do you want to ask a question?

Speaker #4: Yeah, sure. Thank you for giving me the chance to ask questions. First of all, congrats on the very strong first-half results. And I definitely believe that the 2030 guidance is going to be one of the key highlights tonight.

[Analyst]: Yeah, sure. Thank you for giving me the chance to ask questions. First of all, congrats on the very strong H1 results. I definitely believe that 2030 guidance is going to be the key highlights of this night. Just follow-up on the guidance. Rachel mentioned about it's going to be mainly coming from China franchise. We're still trying to understand a bit more about what could be the key driver to that target. From 2024 to 2027, when you put out the RMB 20 billion target, we have been very clear that GLP-1, PD-1 is going to be the key driver while a bunch of new product launches is going to be the driver, too. But moving forward from RMB 20 billion, get up to RMB 35 billion to RMB 40 billion, which is mainly coming from China, what will be the principal drivers to that?

Speaker #4: And just follow up on the guidance. You know Rachel mentioned about you know it's going to be mainly coming from China franchise. We're still trying to understand a bit more about what could be the key driver to that target because from 2024 to 2027 when you put out the 20 billion target we have been very clear that you know GLP-1, PD-1 is going to be the key driver while a bunch of new product launch is going to be the driver too.

Speaker #4: But moving forward from, you know, $20 billion, getting up to $35 billion to $40 billion, which is mainly coming from China, what will be the principal drivers for that?

Speaker #4: And secondly, on the margin side, Dr. Yu mentioned benchmarking to top-tier global pharma for profitability. So, how would you define the top tier in this benchmark?

[Analyst]: Secondly, on the margin side, Doctor, you mentioned about benchmarking to top-tier global pharma for profitability. So how would you define the top tier in this benchmark?

Speaker #4: You know, to be specific, what level of margin are you really targeting, given IFRS net margin in the first half of the year already getting up to very close to the 18% level?

[Analyst]: To specific what level of margin that you're really targeting given IFRS net margin of Innovent in H1 of the year already getting up to very close to mid-teen level. Now, non-IFRS is getting close to 20%, right? So is there still room for further expansion? If yes, what will be driving that? Thank you.

Speaker #4: And now IRFS is getting close to 20%, right? So is there still room for further expansion? If yes, what will be driving that? Thank you.

Speaker #2: Thank you, Z. First question, related to the revenue, I'll ask Rachel to help—Rachel Deng. And the margin part relates to who our peer to benchmark with, and have a ratio, you.

Michael Yu: Thank you, Zhi. First question related to the revenue, I ask Rachel to help, and Rachel thank. The margin part relate to who is our peer to benchmark with and have Rachel Yu.

Speaker #3: Thank you, Dr. Yu, and thank you, Z, for your question. So, as we already reached a scale of more than—like, over 10 billion RMB—and yourselves, the sustainable, rapid, incremental growth will require a shift, you know, from a single product growth to a portfolio-driven model.

Rachel You: Thank you, Doctor. Thank you, Zhi, for your question. As we already reached a scale of more than 10 billion RMB annual sales, the sustainable rapid incremental growth will require a shift from a single product growth to a portfolio-driven model. In terms of the 2030 goal, from oncology side, we think the growth will mainly come from the launch of several new generation of blockbuster products. First of all, for IBI363, we anticipate that this product will be first launched in China for melanoma. It could also have huge opportunity to provide an entire new immuno-oncology treatment option for patients with cold tumor or IO-resistant diseases. Also, for IBI343, our targeting CLDN18.2 positive gastric cancer, we already submitted the NDA in this May.

Speaker #3: So, in terms of the 2030 goal for the oncology side, we think the growth will mainly come from the launch of several new generations of blockbuster products.

Speaker #3: So first of all, for 363, we anticipate this product will be for melanoma. And it could also have a huge opportunity to provide an entirely new immuno-oncology treatment option for patients with co-tumor or, you know, IO-resistant diseases.

Speaker #3: And also for 343 our targeting clouding 18.2 positive gastric cancer we already submitted the NDA in this May. And we anticipate this product will become the first you know clouding 18.2 ADC you know in China market in the launch likely in the first half of next year.

Rachel You: We anticipate that this product will become the first CLDN18.2 ADC in China market and the launch likely in the H1 of next year. The phase III study in pancreatic cancer is also progressing rapidly. In both gastric and pancreatic cancers, this precise ADC therapy will become a new treatment option for Chinese patients. IBI345, our HER2 ADC product is also expected to file an NDA for ovarian cancer first by the end of this year. Recently, we also reached this commercialization collaboration with Eli Lilly again, to get their CDK4/6 product into our portfolio.

Speaker #3: And the Phase 3 study in pancreatic cancer is also progressing rapidly. So, in both gastric and pancreatic cancers, this precise, you know, ADC therapy will become a new treatment option for Chinese patients.

Speaker #3: And the 345, our hope-to-HER2 ADC product, is also expected to file an NDA for ovarian cancer first by the end of this year.

Speaker #3: And then recently, we also reached this commercialization collaboration with Eli Lilly again, you know, to get their CDK4/6 product, you know, into our portfolio.

Speaker #3: So, the breast cancer will definitely be a new, you know, growth area and therapeutic area for us to further grow our oncology business.

Vivian Zhang: The breast cancer definitely will be a new growth area and a therapeutical area for us to further grow our oncology business. Combined with Verzenio and our IBI345 products in the breast cancer disease area, we think that this also will contribute to a significant growth for our oncology business. More importantly, this year is the first year for our five TKI products getting to the national reimbursement list. We also observed a very strong uptake in terms of the new patient enrollment as well as the prolong of the patient DOT. We also anticipate that there's going to be a continuous growth from our TKI rare mutation product. Another growth engine is our general biomedicine business.

Speaker #3: So combined with Verzenio and our 345 products, you know, in the HER2 and the breast cancer disease area, we think this also will contribute significant growth for our oncology business.

Speaker #3: And more importantly, this year is the first year for our five TKI products getting into the national reimbursement list. We also observed a very strong uptake in terms of new patient enrollment, as well as the prolongation of patient DOT.

Speaker #3: So, we also anticipate there’s going to be continuous growth from our, you know, TKI rare mutation products. Another growth engine is our general biomedicine business.

Speaker #3: So, the growth is expected to come mainly from the continued expansion of our major products, and also our continuous lifecycle management for several key brands.

Vivian Zhang: The growth is expected to come mainly from the continued expansion of our major products and also our continuous life cycle management for several key brands in cardiovascular and metabolism. First of all, for products such as Xingarmei and also SINTBILO, our PCSK9, are expected to continue increasing the patient penetration. Also we continue to do a lot of indication expansion. This will also further drive the revenue growth of this brand. CVM definitely will remain an important TA for the company in the upcoming several years. Also for the ophthalmology franchise, as Dr. Chen, Lei Qian mentioned, we plan to launch our IBI302. We plan to file the NDA for IBI302 likely this year as well. This product is with high potential benefit from its long-acting profile and ability to reduce macular atrophy.

Speaker #3: In cardiovascular and the metabolism. So first of all for product such as like Xing Ermei and also Xing Bilu our PCXK9 are expected to continue increasing the patient the patient penetration and also we continues to do a lot of indication expansion this will also further you know drive the the the revenue growth of this brand.

Speaker #3: So, CDM definitely will remain an important TA for the company in the upcoming several years. And also, for the ophthalmology franchise, as Dr. Qianlei mentioned, we plan to launch our 302. So, we plan to file the NDA for 302 likely this year as well, you know.

Speaker #3: And this product has high potential benefits due to its long-acting profile.

Speaker #1: Profile and the ability to reduce , you know , macular atrophy . And we are also anticipated to launch . 324 later this year .

Vivian Zhang: We are also anticipated to launch IBI324 later in the next several years. For immunology, we are actively pursuing the NRDL for our IL-23 product this year, and then we anticipate a further growth from Xingmeiyue. Also, we expect to launch our gout product likely in the next 1 or 2 years. This will further enrich our immunology portfolio as well. Also, we are preparing for the launch for our IBI3060. This is an AGT siRNA therapy for long-acting blood pressure management product. This could also become a product that would contribute our CVM business in the next several years. These are all the pipeline programs that we believe by 2030 is going to contribute to some of the further growth in terms of the revenue scale. I'll pass to Rachel You to answer the profitability question.

Speaker #1: Later in the next several years for IMU . So , so for immunology , we are actively pursuing the needle for our IL 23 product this year .

Speaker #1: And we anticipate a further growth from our from Qingmu and also we expect to launch our gout product , you know , likely in the next 1 or 2 years .

Speaker #1: So this will further enrich our immunology portfolio as well . Also , we are preparing for the launch for our 3060 . This is an AGT , S II and a therapy for long , long acting blood pressure management product .

Speaker #1: And this could also become a product that would contribute to our CVM business, you know, in the next several years. So these are all the pipeline programs that we believe in.

Speaker #1: By 2030, it is going to contribute to some of the further growth in terms of the revenue scale. So I'll pass to Rachel Yeo to answer the profitability question.

Speaker #1: Yeah . Thank you . Rachel , and thank you for the question . I think you can see we continue to drive our margin expansion with our strong revenue growth year over year So I think when we set the revenue target for 2030 , of course , we want the benchmark , our profitability with the leading player in China , you know , I think when we are continuously , you know , grow our operating system , grow our product scale .

Rachel You: Thank you, Rachel, and thank you, Zhi, for the question. I think you can see we continue to drive our margin expansion with our strong revenue growth year over year. I think when we set the revenue target for 2030, of course, we want to benchmark our profitability with the leading player in China. I think when we are continuously grow our operating system, grow our product scale, and with the efficiency improvement, I think we're able to continue to drive the margin expansion. I think starting from 2030, as I mentioned earlier, the global revenue is going to become the new driver for our business. After that, I think we're going to benchmark our profit margin with the leading player globally.

Speaker #1: And with the efficiency improvement , I think we're able to continue , continue to drive the margin expansion . I think starting from 2030 , as I mentioned earlier , the global revenue is going to become the new driver for our business .

Speaker #1: So after that, I think we're going to benchmark our profit margin with the leading player globally.

Speaker #2: Great . Thank you . Rachel . And Rachel . Thank you so much . It's very clear

[Analyst]: Great. Thank you, Rachel and Rachel. Thank you so much. It's very clear.

Speaker #3: Thank you . See and next let's go to Jack . Jacqueline Hi . Thank you , Doctor Huang . Can you hear me Yes , we can hear you .

Michael Yu: Thank you, Zhi. Next, let's go to Jack. Jack Lane.

Jack Lane: Hi. Thank you, Dr. Huang. Can you hear me?

Michael Yu: Yes, we can hear you. Go ahead.

Speaker #3: Go ahead Thank you . And thanks for taking my question . And congratulations on the strong results and upgraded guidance . I just have a quick question on R&D with a company not having over 100 preclinical projects , 20 plus phase one POC and five Coco programs is , I think , doctor , you , Doctor Joe and doctor has showcased earlier .

Jack Lane: Got it. Thank you, and thanks for taking my question and congratulations on the strong results and upgraded guidance. I just have a quick question on R&D. With the company now having over 100 preclinical projects, 20 plus phase I POC, and five co-co programs, as I think Dr. Yu, Hui Zhou, and Lei Qian has showcased earlier, it has very strong and full growing R&D pipeline, but also a lot for, I think, the market investors to study on. So if you were looking at primarily on kind of the rest of the year and also kind of coming up next year, what would the management team think to be kind of the most important R&D milestones to kind of support, to watch for as well as kind of supporting its kind of longer term growth trajectory? Thank you.

Speaker #3: It has a very strong and full growing R&D pipeline, but also a lot for. I think the market investors to study on.

Speaker #3: So if you're looking at primarily on kind of the rest of the year and also kind of coming up next year , what would the team management team think to be kind of the most important R&D to kind of support , to watch for , as well as kind of supporting its kind of longer term growth trajectory Thank you

Speaker #4: Thank you, Jack. I will ask Hui and Lei both to highlight the key milestone for collagen and Biogen medicine, respectively. Thank you for the question—and for oncology, that's for the second half of this year or early next year.

Michael Yu: Thank you, Jack. I will ask Hui and Lei both to highlight the key milestone for oncology and the biogenic medicine effectively.

Vivian Zhang: Thank you for the question. For oncology, for H2 of this year and early next year, actually primarily we will focus on next generation IO and ADC program. I will highlight several. IBI363 still the most important for us, and we will potentially have the first NDA submission for melanoma in China by the end of this year or early next year.

Speaker #4: And actually we primarily we will focus on next generation I , O and ADC program . And I will highlight several IBS three , six , three , two .

Speaker #4: The most important for us, and we will potentially have the first NDA submission for melanoma in China by the end of this year or early next year.

Speaker #4: And we are still move ahead for the second line . Global . We will have the actually expand to second Non-squamous non-small cell lung cancer global market and we will continue to follow up the POC data from the first line non-small cell lung cancer and the first line colorectal cancer .

Hui Zhou: We are still move ahead for the second-line global. We will have actually expanded to second non-squamous non-small cell lung cancer global MRCT. We will continue follow-up the POC data from the first-line non-small cell lung cancer and the first-line colorectal cancer, and upon that, talk to FDA about the further MRCT. Actually, we will disclose our first-line gastric cancer data at this year's ESMO. We expanded to, that means expanded to other tumor types. For IBI343, we already submit the NDA, and potentially will be approved the H1 of next year. For PDAC, we also expanded to have data readouts end of this year or early next year. We plan to initiate the first-line PDAC phase III study in China by the end of this year.

Speaker #4: And upon that, we'll talk to the FDA about the further market, and actually, we will disclose our first-line gastric cancer data. So, at this year's ASCO.

Speaker #4: So we expanded to . That means expanded to other tumor types . And the four , three , four three . So we already submit the NDA and potential will be approved .

Speaker #4: In the first half of next year. And for PDAC, we also expect to have data readouts at the end of this year or early next year.

Speaker #4: And we plan to initiate the first line Pdac phase three study in China by the end of this year . And for three , five , four .

Hui Zhou: For IBI354, we already also mentioned that the first indication for ovarian cancer, we will submit NDA end of this year. For IBI3003, we will disclose at this year's EHA, in England. This is for with expanded sample size from our phase I study, and we will expand to the first-line combo study with CD38. I think this is the key for our molecule in pivotal stage, and we have multiple early assets. We already mentioned, especially for this year's ESMO, we will have the oral presentation for our EGFR/B7H3 ADC. Dr. Chen.

Speaker #4: So, we already also mentioned that the first indication for ovarian cancer, we will submit the NDA end of this year. And for—.

Speaker #4: 303 . So we will disclose at this year's IMS . So in England and this is for with expanded sample size of from our phase one study .

Speaker #4: And we will expand to our . The first line combo study with Cd38 . I think this is the key for our . The molecule in pivotal stage .

Speaker #4: And we have multiple early assets. We already mentioned, especially that for this year's asthma, we will have the oral presentation for our EGFR B7-H3 ADC. So, Dr. Chen, for...

Lei Qian: For general biomedicine side, mazdutide progression for development will still be one of our key focus since this has become one of the pillar molecules, even from commercial perspective. Among the upcoming milestones for mazdutide, we will anticipate the approval of the 9 mg dosage and also the readouts of the several pivotal studies, including GLORY-3 study, in which we compared mazdutide with semaglutide 2.4 mg in patients with obesity and also with MACE. That readout will be the end of this year and early next year. Beyond that, there are also other pivotal results, including obesity patients with OSA and adolescents with obesity. As well as we have proof of concept results in patients with one type of heart failure and also patients with MASH. That is for the update for mazdutide. Beyond mazdutide, there are other NDAs, for example, for PCSK9 inhibitor, tafolecimab.

Speaker #5: General Biomedicines have definitely had progression for development and will still be one of our key focuses. Since this has become one of the pillar molecules, even from a commercial perspective, I'm on the among the upcoming milestones for multiple types.

Speaker #5: We will anticipate the approval of the landmark dosage and also the readouts of several pivotal studies, including the GROCERY study, in which we compare the on-title with semaglutide.

Speaker #5: 2.4 mcg in patients with obesity and also with MAFLD. The results will be available at the end of this year or early next year.

Speaker #5: And beyond that , there's also another pivotal results , including patient obesity patients with OSA and adolescents with obesity , as well as we have proof of concept results in patients with half past one type of heart failure , and also patients with mesh .

Speaker #5: That's for the update for type . Beyond Mazdutide . There's other NDAs for , for example , for Pcsk9 inhibitor for will have the NDA submission for the first line hypercholesterolemia at the end of this year .

Lei Qian: We will have the NDA submission for the first line hypercholesterolemia at the end of this year, and we are looking forward to the phase III results for IGF-1 receptor IBI311 in inactive TED H2 of this year. For ophthalmology, IBI302 is on track for NDA submission, and that will happen the end of this year, and we will bring our assets IBI324. We believe it is superior to Vabysmo. By the end of this year, three approval studies will be initiated in that asset. We are also quite excited for early assets, especially for metabolic disease, next generation of GLP-1s, including daily oral IBI3032. We will initiate a proof of concept study later this year. IBI3042, I think it is a global first weekly oral. We will have clinical data by the end of this year.

Speaker #5: And we are looking forward to the phase three results for IGF one receptor temperature map . And zero one in inactive TBD . Second half of this year and for ophthalmology , 3302 is on track for NDA submission and that will happen at the end of this year .

Speaker #5: And we will bring our assets by three to four specific—. We believe it is superior to—. By the end of this year, three pivotal studies will be initiated in novel assets.

Speaker #5: We are also quite excited for early access , especially for metabolic disease . Next generation of GLP one , including oral daily oral 3032 .

Speaker #5: And we will initiate the proof of concept study later this year. And 3042, I think it's a global first. Weekly oral will have clinical data by the end of this year.

Speaker #5: And the Amylin weekly injection , potentially best in class and has the potential to have the fixed dose combination with five and other shrna assets , which will definitely become more and more important in the in this field .

Lei Qian: The amylin weekly injection, potentially best in class and has the potential to have the fixed dose combination with mazdutide and other siRNA assets, which will definitely become more and more important in this field. We believe that all these assets will become the next generation of mazdutide in the next several years. Thank you.

Speaker #5: And we believe that, one, the other assets will become the next generation of methods in the next several years. Thank you.

Speaker #3: Got it . Thank you , doctor . Thank you , Doctor Chen .

Jack Lane: Got it. Thank you, Dr. Chen.

Speaker #6: Okay. Thank you, Jack. Next, let's go to Zhao Wu. Go ahead.

[Company Representative] (JPMorgan Chase): Okay. Thank you, Jack Lane. Next, let's go to Zhao Wu. Go ahead.

Speaker #7: Hi . Thank you for taking my question . So firstly congratulations for the very strong results . And my first question is about the about the strong results .

[Analyst]: Hi, thank you for taking my question. Firstly, congratulations for the very strong results. My first question is about the strong results, strong revenue growth in the H1 of this year. The sales accelerated to 57% year-over-year. Could you please elaborate what has driven this strong growth? How did the key products perform? Also, given the strong H1 performance, what is your outlook for the growth in the H2 of 2026? This is my first question. I have another one. Thank you.

Speaker #7: Strong revenue growth in the first half of this year, with sales accelerating to 57% year over year. Could you please elaborate on what has driven this strong growth and how the key products performed?

Speaker #7: And also , given the strong first half performance , what is your outlook for the growth in the second half of 2026 ? This is my first question .

Speaker #7: I have another one. Thank you.

Speaker #5: Okay , okay .

Michael Yu: Okay. Thank you. I ask Rachel Yu help us to answer the question.

Speaker #4: Thank you. For a ratio of ten, help us with just this question.

Vivian Zhang: This is Dr. Yu, and thank you, Ju, for your question. The product revenue reached RMB 8.2 billion H1 of this year. The revenue was already equivalent to the full-year revenue in 2024. Product revenue continued to grow rapidly and validating our dual-engine growth strategy. It is by different business units. For oncology, as I mentioned previously, following the NRDL inclusion for our five TKI products, these products continue to ramp up in line with our expectations. These new products for the H1 of the year have become a major growth driver in our oncology business. More importantly, general medicine business has actually contributed even larger growth for the H1. The growth is very strong. We previously anticipate that the oncology and general medicine business to gradually contribute at a similar level by 2027. The current trend is still consistent with our expectation.

Speaker #1: Thank you. And thank you for your question. So, the product revenue reached RMB 8.2 billion in the first half of this year.

Speaker #1: The revenue was already equivalent to the full year revenue in 2024 . Product revenue continued to grow rapidly and validating our dual engine growth strategy .

Speaker #1: It's by a bit different business unit for oncology. As I mentioned previously, following the ideal inclusion for our five TKI products.

Speaker #1: These products continue to ramp up in line with our expectations, and these new products, for the first half of the year, have become a major growth driver in our oncology business.

Speaker #1: But more importantly , general medicine business as actually contribute even , you know , larger growth , you know , for the first half , the growth is very strong .

Speaker #1: We previously anticipate that the oncology and general medicine business to gradually contribute at a similar level , you know , by 2027 , at the current trend , are still are , is still consistent with our expectation for tide .

Vivian Zhang: For mazdutide, the product was just launched like a full-year anniversary. Over the past one year, we leveraged its unique mechanism as the world's first and only GCG-GLP-1 dual agonist, and its differentiated metabolic benefits to reach target patient groups and build initial brand recognition successfully. This year, although our key competitor is listed in NRDL with a much lower price, we also observed that the penetration in the overall weight management market remains pretty low. With more active market education this year, the number of users and the treatment volume continue to grow strongly. Mazdutide now is the second-largest brand in China's self-pay weight management market. Overall, its sales performance is in line with our internal expectation. Our IBI311, the SYCUME, the TED product, after launch, we see substantial unmet medical needs in thyroid eye disease.

Speaker #1: So the product was just a launched like a full year anniversary . And over the past one year , we leveraged its unique mechanism as the world's first and only Gcg GLP one to agonist .

Speaker #1: And it's differentiated metabolic benefits , you know , to reach target patient groups and build the initial brand recognition successfully this year , although our key competitor are list is listed in DL with a much lower price , we also observed that that the penetration in the overall weight management market remains pretty low , with more active market education this year , the number of users and the treatment volume continue to grow strongly , so tired Now is the second largest brand in China .

Speaker #1: Self-Pay weight management market . So overall , its sales performance is in line with our internal expectations Our 311 , the sarcoma , the Ted product after launch , we see substantial medical needs in thyroid eye disease .

Speaker #1: And this product is the only product in this disease area in China. And its rapid onset has generated positive feedback from physicians and patients.

Vivian Zhang: This product is the only product in this disease area in China, and its rapid onset has generated positive feedback from physicians and the patients and has supported continued standardized use. The successful listing of NRDL implementation earlier this year also drive and translate these clinical benefits into product value. Our PCSK9 product, SINTBILO, over the past several years, the market education has improved the recognition and acceptance of the entire PCSK9 class. Its academic value and the clinical position are now well established. As now the entire class is gradually expanded into frontline treatment for hypercholesterolemia, we believe this target will establish a new standard of care. We also performed really well in this area, because this is the second year of the reimbursement. We successfully being listed in more than 1,500 hospitals.

Speaker #1: And continued standardized use. The successful listing of IDL implementation earlier this year also drives up and translates these clinical benefits into product value.

Speaker #1: Our Pcsk9 product has seen below over the past several years . The market education has improved the recognition and acceptance of the entire Pcsk9 class It's it's academic value , you know , and the clinical position are now well established as now the entire class is gradually expanded into frontline treatment for hypercholesterolemia .

Speaker #1: We believe this target will establish a new standard of care. We also performed really well in this area, because this is the second year of the reimbursement, and we are successfully being listed in more than 1,005.

Speaker #1: Hundred hospitals . You know , this can this is one of the key drivers , you know , for us to really drive the growth of this product .

Vivian Zhang: This is one of the key drivers for us to really drive the growth of this product. I think overall, for the H1 of the year, this is the key highlights. For the H2 of this year, we still anticipate a very strong growth for the rest of the year, supported by continued sales ramp-up of all these core products we just mentioned. We also would like to highlight that because mazdutide was launched in the H2 of 2025, and also IBI311, our TED product, had only recently began the commercial sales, I think in March 2025. These actually make the base of 2025 H1 relatively low. Therefore, the comparison base is different, resulting in a more than 57% year-on-year growth. We just want all the investors to be aware of the different launch period by different brand.

Speaker #1: So I think overall , for the first half of the year , this is the key , key highlights . So for the second half of this year , we still anticipate a very strong growth .

Speaker #1: You know, for the rest of the year, supported by continued sales ramp-up of all these core products we just mentioned.

Speaker #1: We also would like to highlight that because Maso Tide was launched in the second half of 2025, and also 311, our TED product had only recently begun commercial sales in, I think, in March 2025.

Speaker #1: These actually make the base of 2025 . First half a relatively low . Okay , so therefore the comparison based is different . So resulting in a more than 57% year on year growth .

Speaker #1: So we just want all the investors to be aware of the different launch period by different brands . So for the second half of this year , the comparison with the second half of 2025 will be more like for like we therefore encourage in encourage all the investors to set a reasonable expectation for the rest of the year .

Vivian Zhang: For the H2 of this year, the comparison with the H2 of 2025 will be more like-for-like. We therefore encourage all the investors to set a reasonable expectation for the rest of the year. In addition, we have several products already passed this formal NRDL review for this year. We have two products which we need to add new indication or renew our NRDL status, and we have another four major brands which are planned to be newly listed in NRDL. There might be some price adjustment by the end of the year, which need to be reflected in the channel inventory compensation part. This probably will also impact the Q4 total revenue sales. Please also take this factor into the consideration. Thank you.

Speaker #1: In addition, we have several products that have already passed these formal NMPA, you know, reviews for this year. We have, like, two products for which we need to add new indications or renew our IDL status.

Speaker #1: And we have another four major brands which are planned to be newly listed , you know , in an LDL . So there might be some , you know , price adjustment by the end of the year , which need to be reflected in the channel inventory compensation part .

Speaker #1: You know , this probably will also impact the , the fourth quarter , you know , total revenue sales , please also take this factor into the consideration .

Speaker #1: Thank you .

Speaker #7: Thank you Richard . That's very impressive . My second question is about the BD transactions . It has been very impressive that over the past ten months , we have done a lot of strategic BD transactions with MCs like Pfizer and Takeda .

[Analyst]: Thank you, Rachel. That's very impressive. My second question is about the BD transactions. It has been very impressive that over the past 10 months, we have done a lot of strategic BD transactions with MNCs like Pfizer and Takeda. I'm wondering, how has Innovent built your relationship with the MNCs, and what are the key strengths of Innovent that has attracted those global partners to achieve significant transactions with Innovent? Thank you.

Speaker #7: I'm wondering, how has Innovent built your relationship with the MNCs, and what key strengths of Innovent have attracted those global partners to achieve significant transactions with Innovent?

Speaker #7: Thank you .

Speaker #8: Yeah . We ask our Sam Sam online . Yeah . Thank you . Jill . Thank you . Michael . In the interest of time , I'm going to quickly answer your question .

Michael Yu: Yeah. We'll ask our Sam. Is Sam online?

Samuel Zhang: Yeah. Thank you, Jill, and thank you, Michael. In the interest of time, I'm going to quickly answer your question. Large pharma cares about the strategic value that Innovent can provide, and that strategic value is at a company level as well as an asset level. I think Innovent is very unique in that it is perhaps the only company that can offer innovation at speed, scale, and quality. I think that's the value provided by the company, and also we have very unique assets. We have very unique R&D capabilities. All those are highly valued by large pharma. What we need to do is just to articulate that very clearly based on fact, so that the large pharma can clearly see those strategic values.

Speaker #8: You know, large pharma talks about the strategic value that Innovent can provide, and that strategic value is at a company level as well as at the asset level.

Speaker #8: And I think Innovent is very unique in that it is perhaps the only company that can offer innovation at speed, scale, and quality.

Speaker #8: And I think that's the value provided by the company . And also , you know , we have very unique assets . We have a very unique R&D capabilities .

Speaker #8: All those are highly valued by large pharma . And what did you need to do is just to articulate that very , very clearly based on facts .

Speaker #8: So that’s why large pharma can clearly see the strategic value, and obviously, Innovent has been in this business for a long time and has built relationships with a number of large pharma already.

Samuel Zhang: Obviously, Innovent has been in this business for a long time, has built a relationship with a number of large pharma already, and each one of us are bringing our own relationship as well. Most importantly is to leverage those relationships and really articulate the strategic value a partnership with Innovent that provides, and that's the most attractive part to the large pharma partners, and is a very important foundation for the success we have achieved over the last four months. Just want to add that the Pfizer deal has closed early last month, and we have already received our upfront payment.

Speaker #8: And each one of us is bringing our own relationships as well. But most importantly, it is to leverage those relationships and really articulate the strategic value of partnership with Innovent that we provide.

Speaker #8: And that's the most attractive part to the large pharma partners, and is a very important foundation for the success we have achieved over the last 12 months.

Speaker #8: And I just want to add that the Pfizer deal has closed last month , early last month , and we have already received our upfront payment

Speaker #7: Okay. Thank you. Our congratulations. Thank you.

[Analyst]: Okay, thank you. Congratulations. Thank you. Dr. Wang, can we go for the next question, please?

Speaker #9: Can I go to the next question, please?

Michael Yu: Yes. Next, let's go to Matthew. Go ahead, Matthew.

Speaker #6: Yes. So next, let's go to Matthew. Go ahead, Matthew.

Speaker #10: Hi . Thank you for taking my questions . I have only one question . Is can you provide some color on the operating expense in the second half of this year , particularly , particularly the R&D and also the selling expense as well as the assurance outlook of your net profit in the second half versus the first half .

[Analyst]: Hi. Thank you for taking my questions. I have only one question, is can you provide some color on the operating expense in the H2 of this year, particularly at the R&D and also the selling expense, as well as sharing the outlook of your net profit in the H2 versus the H1? Thank you very much.

Speaker #10: Thank you very much

Speaker #4: Thank you. Matthew, I have a ratio to answer your question.

Michael Yu: Thank you, Matthew. Have Rachel to answer the question.

Speaker #1: Yeah thank you doctor , and thank you , Matthew , for the question . As another give a holistic you know , introduction about overall product revenue growth for the first half And the second half .

Rachel You: Yeah. Thank you, Dr. Yu, and thank you, Matthew, for the question. As I know Rachel already gave a holistic introduction about overall product revenue growth for the H1 and the H2. From my side, I would just give some guidance on the overall BD income as well as the expense side. For the BD revenue, as I mentioned previously, is associated with the achievement of certain development milestones. If you look at a full year, I think we still anticipate overall BD revenue recognition is going to be in the range of anywhere from $100 to $300 million. For the R&D expense, in the H2, I think as Dr. Yu previously mentioned, we have transformed from a project-based management model to a portfolio-driven model. We believe this enables end-to-end coordination across early discovery research, clinical development, regulatory filings, and commercialization.

Speaker #1: So from my side , I will just give , you know , some guidance on the overall , let's say , BD income as well as the expense side .

Speaker #1: So for the BD revenue , you know , as I mentioned previously , it's , you know , associated with the achievement of certain development milestone .

Speaker #1: So if you look at the full year, I think we're still, you know, anticipating the overall BD revenue recognition is going to be in the range of anywhere from $200 to $300 million USD.

Speaker #1: So for the , you know , R&D expense , you know , in the second half , I think , you know , as doctor , you previously mentioned , we have transformed from a project based management model to a portfolio driven model .

Speaker #1: So we believe this enables end to end coordination across early discovery research , clinical development , regulatory filings , and commercialization . So our R&D investment is also to support the sustained strong growth across all our key focus therapeutic area .

Rachel You: Our R&D investment is also to support the sustained strong growth across all our key focus therapeutic area. For the H2 this year, I think we will continue to invest in the global development of our global pipeline, which is also consistent with our strategic goal for 2030 and 2035. The overall R&D expense for 2026 are expected to be anywhere from RMB 3 to 4 billion. This is also consistent with our communication with the market earlier this year. For the sales and marketing expense ratio, you can see the year-over-year decline in this ratio was mainly attributable to the improved productivity and economy of scale brought by the strong revenue growth. It is also worth to note that selling expense ratio are typically lower in the H1 versus the H2.

Speaker #1: So for the second half of this year, I think we will continue to invest in the global development of our global pipeline, which is also consistent with our strategic goals for 2030 and 2035.

Speaker #1: So the overall R&D expense for 2026 is expected to be anywhere from RMB 3 to 4 billion. This is also consistent with our communication with the market.

Speaker #1: Earlier this year . So for the sales and marketing expense ratio , so you can see the year over year decline in this ratio was mainly attributable to the improved productivity and economy of scale brought by the strong revenue growth .

Speaker #1: So it's also worth to note that selling expense ratio are typically lower in the first half versus the second half . At the same time , I think our portfolio has expanded very quickly over a relatively short period of time .

Rachel You: At the same time, I think our portfolio has expanded very quickly over a relatively short period of time. We will continue to ensure our necessary investment and the personnel are properly deployed to maximize the value of our products, boost the brand awareness, and expand our market reach. In oncology, the company now has 14 commercialized products. For breast cancer, we will form a dedicated team to support Verzenio commercialization and the future commercialization of our breast cancer pipeline. Our commercial setup for chronic disease has been in place for a short period of time, and it requires continued investment in various new channels, including the e-commerce channel, retail channel, to enhance the patient access. To strengthen our overall chronic disease franchise and the long-term market footprint, we will also continue to invest in the market education and the market efforts to drive the broader market penetration.

Speaker #1: So, we continue to ensure our necessary investment and personnel are properly deployed to maximize the value of our products, boost brand awareness, and expand our market reach.

Speaker #1: So in oncology, the company now has 14 commercialized products for breast cancer. We will form a dedicated team to support Verzenio commercialization and the future commercialization of our breast cancer pipeline.

Speaker #1: So our commercial setup for chronic disease has been in place for a short period of time . And it requires continued investment in various new channels , including the e-commerce channel , retail channel , to enhance the patient access to strengthen our overall chronic disease franchise and the long term market footprint will also continue to invest in the market .

Speaker #1: Education and market efforts to drive the broader market penetration . So overall , you know , we set a goal of achieving a profit margin by 2030 comparable to the leading players in China .

Rachel You: Overall, we set a goal of achieving a profit margin by 2030 comparable to the leading players in China. Overall, to summarize, if you look at our full-year expectation for profit, I think revenue-wise and BD revenue, we anticipate that the H2 would be higher compared to the H1. The growth margin is going to be stabilized, I think, in the H2. Meanwhile, I think actual R&D expense and the selling and administration expense are expected to be higher in the H2. The full year, I think we are still confident with strong top-line revenue growth as well as the bottom-line growth compared to 2025. Thank you.

Speaker #1: So overall , you to summarize , if you look at our full year expectation for profit , I think the wise and the revenue we anticipate the second half would be higher compared to the first half .

Speaker #1: So the gross margin is going to be stabilized, I think, in the second half. Meanwhile, I think actual R&D expense and the setting of the administration expense are expected to be higher in the first half.

Speaker #1: In the second half, so for the full year, I think we're still confident with strong top line revenue growth as well as bottom line growth compared to 2025.

Speaker #1: Thank you

Speaker #6: Okay . Next , I guess , is since the call already has been going on for a while , 40 minutes . So I understand there are many investors and analysts have questions , but I'm afraid we can only take a one .

[Company Representative] (JPMorgan Chase): Well, I guess since the call already has been going on for well over 40 minutes, I understand there are many investors and analysts have questions, but I am afraid we can only take one last question from here. Next, let us go to Chen Chen. Chen Chen, go ahead. Chen Chen? You are on mute, I think.

Speaker #6: One last question from here . Next , let's go to Chen Chen . Chen Chen . Go ahead And you are mute . I think .

Speaker #11: Hi, can you hear me?

[Analyst]: Hi, can you hear me?

Speaker #6: Yes, we can hear you.

[Company Representative] (JPMorgan Chase): Yes, we can hear you.

Speaker #11: Okay , good . Thank you for taking my questions . I just want to follow up on an oral negotiation . So we will have both .

[Analyst]: Okay, good. Thank you for taking my questions. I just want to follow up on NRDL negotiation. We will have both first-time negotiation and products for renewal, as we discussed just now. Could management please share your expectations regarding the likelihood of the inclusion for each product and the potential level of price reductions? Thank you.

Speaker #11: This is the first time negotiating products for renewal, as we discussed just now. Could management please share your expectations regarding the likelihood of inclusion for each product and the potential level of price reductions?

Speaker #11: Thank you

Speaker #4: Thank you. Ask about the ratio. Oh, sure.

[Company Representative] (JPMorgan Chase): Thank you, Chen Chen. I will ask Hui Zhou to help.

Vivian Zhang: Sure. Thank you, Chen Chen, for your question. As we mentioned previously, all our NRDL application has been formally passed by the first round of review. Recent several weeks, I think, the government actually is actively calculating everything to set the available price. We are actively preparing all the dossier, and hopefully we can have some chance to communicate with the government later. Innovent has, almost every year, we experience this NRDL negotiation. We are very confident that we have strong capability and a deep understanding of the policy. We cannot 100% ensure the success, but we are very confident that we can have a reasonable price across different brands to get the product being listed in the NRDL. Thank you.

Speaker #12: Thank you for your question . So as we mentioned , the previously . So all our ideal application has been formally , you know , passed by the first round of review .

Speaker #12: I think in the recent several weeks, I think the national government actually is actively...

Speaker #1: Calculating everything , you know , to set the , the , the envelope price . So we are actively preparing all the dossier and the hopefully we can have some chance to communicate with the government later .

Speaker #1: You know, at Innovent, almost every year we experience this kind of negotiation—an ideal negotiation. We are very confident that we have strong capability.

Speaker #1: You know , and the deep understanding of the policy , you know , so we cannot 100% ensure the the success . But we are very confident , you know , that we can have a reasonable price , you know , across different brands , you know , to get the product being listed in the in IDL .

Speaker #1: Thank you .

Speaker #11: Thank you, Richard and Michael. Looking forward to the results.

[Analyst]: Thank you, Hui Zhou and Michael. Looking forward to the NRDL results.

Speaker #4: Thank you .

Rachel You: Thank you.

Speaker #6: Thank you. I'd like to now turn over the call to the Innovent management team for any concluding remarks.

[Company Representative] (JPMorgan Chase): Thank you. Thanks. I'd like to now turn over the call to Innovent management team for any concluding remarks.

Speaker #9: Okay . Thank you , Doctor Huang , for hosting the call for us . And thank you all for staying late with us for this call .

[Company Representative] (Innovent): Okay. Thank you, Dr. Feng, for hosting the call for us. Thank you all for staying late with us for this call. It's the first time that we bring up the 2030 strategic goal for the investors. I do see there are still a lot of questions raising up on the line, but unfortunately, we don't have enough time to answer each of the questions today. Our team will be more than happy to follow up and to see if any questions from the investors and analysts. Thank you all for attending today's call. Thank you for your continued attention and support to Innovent. We will conclude this call now. Thank you.

Speaker #9: It's the first time that we bring up , you know , the 2030 strategic goal for the investors . So I do see , you know , there are still a lot of questions raising up on the line , but unfortunately , we don't have enough time to answer each of the questions today .

Speaker #9: But our team will be more than happy to follow up and to see any questions from investors and analysts. Thank you all for attending today's call.

Speaker #9: And thank you for your continuous attention and support to Innovent. We will conclude this call now. Thank you.

Speaker #1: Thank you .

Rachel You: Thank you.

[Company Representative] (JPMorgan Chase): Thank you.

[Analyst]: Thank you.

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