Q2 2026 Innovent Biologics Inc Earnings Call

August 25, 2026

Speaker #2: Okay, let's get started. Good evening, good morning, and 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 that the 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 a 2030 goal to reach RMB 35 billion to RMB 40 billion in total revenue by 2030.

[Company Representative] (J.P. Morgan): On the basis of that, it is interesting to see Innovent now has a 2030 goal to reach CNY 35 billion to CNY 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 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.

Yang Huang: On the basis of that, it is interesting to see Innovent now has a 2030 goal to reach CNY 35 billion to CNY 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 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; and Ms. Rachel Yu, Chief Financial Officer.

Speaker #2: Mr. Hui Zhou, Chief R&D Officer in Oncology; Mr. Lei Chen, Chief R&D Officer in General Biomedicine; and Dr. Samuel Zhang, Chief Business Officer. Following the prepared remarks, we will move to Q&A.

Speaker #2: Now I'll turn the call over to the Innovent IR team.

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.

[Company Representative] (Innovent Biologics): 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 resulting 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, and more importantly, we will share our updated long-term strategic outlook. 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. 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.

Wendy Song: 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 resulting 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, and more importantly, we will share our updated long-term strategic outlook. 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. 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: To discuss the results in detail, today's agenda will be as follows: To start, 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 Chen, 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 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.

[Company Representative] (Innovent Biologics): 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. With that, I will turn the call over to Dr. Michael Yu. Michael, please.

Wendy Song: 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. With that, I will turn the call over to Dr. Michael Yu. Michael, please.

Speaker #3: Under the Investors and Media section. 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.

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 integrates R&D, manufacturing, and 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 CNY 10 billion in revenue and posted our first full-year profit.

Speaker #2: We marked our 15th anniversary on August 24, which is yesterday, and wrapped 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 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.

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 CNY 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: With world-class innovation and global operational capabilities. Next slide. The first half of 2026 was far more than a continuation of our storied growth momentum.

Speaker #2: 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.

Speaker #2: With sustained profit ex-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.

Speaker #2: Collectively, this strong result confirms that Innovent has entered the most favorable strategic growth window since its establishment. Next slide. In the first half of this year, our business maintained a robust growth momentum.

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 CNY 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 due engine strategy, spanning oncology and general biomedicine. While our oncology franchise retained its market-leading position, flagship assets within our general biomedicine portfolio, mazdutide, SINTBILO, and SYCUME, have emerged as powerful new growth engines. Against this strong operating trajectory, we retain a high confidence in achieving our 2027 product revenue targets of CNY 20 billion. A figure we originally projected back in 2022, when we anticipate our 2027 product revenue will reach no less than CNY 13 billion.

Speaker #2: 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.

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.

Speaker #2: Spanning oncology and general biomedicine. While our oncology franchise retains its market-leading position, flagship assets within our general biomedicine portfolio: mesotide, syn- synth- synth- synth- and Synchome, have emerged as a powerful new growth engines.

Speaker #2: 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 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 a sustained improvement in operating efficiency, is proving to 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, drives further earning expansion. In 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 regional 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.

Speaker #2: Representing a 50% year-over-year increase and already surpassing our full-year figure projected 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 regionally 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: Number 1, 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. In the next 3 to 4 years, our revenue will be nearly doubled. Second, profitability. Alongside a 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 nearly double. 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 US and European markets, 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. Building 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, supported by 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 area, spanning from oncology to general biomedicine. At the heart of this model lies 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 Verzenios, 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 mainly 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 vaccinia as a strong therapeutic option for breast cancer has granted us a critical commercial foothold in this large, high-prevalence disease area.

Michael Yu: Verzenios 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, IBI343, 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.

Speaker #2: Vaccinia also synergizes 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, IBI 43, IBI 354, and IBI 3003. Collectively, these programs secure our trajectory for sustainable, middle- 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-2 agonist, delivers differentiated clinical value across weight management, glycemic control, hepatic fat reduction, and uric acid lowering. Since its launch last year, Mesotite has achieved exceptional market traction.

Michael Yu: The metabolic disease franchise serves as a strong example. Mazdutide, the world's first GCG and GLP dual agonist, delivers differentiation 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. Meanwhile, 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 mazdutide'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 a durable long-term competitiveness across all four core general biomedicine segments.

Speaker #2: Meanwhile, we are executing a comprehensive lifecycle management strategy to plan equity and expand its market penetration and commercial reach. In parallel, our next-generation metabolic and weight loss pipeline has advanced into clinical development.

Michael Yu: These novel candidates will build upon mazdutide'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 a durable long-term competitiveness across all four core general biomedicine segments.

Speaker #2: 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. We are replicating this portfolio-driven strategy across cardiovascular, immunology, and ophthalmology therapeutic areas.

Speaker #2: 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 later-stage assets, including IBI 363, IBI 343, and IBI 324, are progressing smoothly in global phase III MRCT studies.

Michael Yu: 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 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 moment achieved in the H1 of this year, this flagship assets will underpin our long-term value creation and support our 2030 global launch aspirations. Next slide. Meanwhile, backed by a steady stream of novel molecule originally from Innovent College, 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.

Speaker #2: Addressing a combined market opportunity exceeding $60 billion. 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-potential assets into global, later-stage development.

Michael Yu: 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 taken clearly 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 partnerships with specialized biotech firms such as Ollin Biosciences and Spero Therapeutics to accelerate the global development of our differentiated pipeline assets. This transaction represents 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 enterprise. Innovent is proud to have secured three of these landmark transactions, each valued at approximately over USD 10 billion.

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

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, 8 out of the industry's 10 largest global licensing deals involve Chinese enterprises. Innovent is proud to have secured 3 of these landmark transactions.

Speaker #2: Each valued at approximately over $10 billion. Collectively, these partnerships cover over 20 assets, spanning global Phase 3 programs, early-stage clinical assets, and preclinical candidates.

Michael Yu: Collectively, these partnerships cover over 20 assets spanning global phase III programs, early-stage clinical assets, and preclinical candidates. 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.

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 U.S.-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: Innovent is now at the most promising development stage in its history. We remain fully resolved and confident to advance our third corporate transformation, striving to evolve into a premier global pharmaceutical company over the next five 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 Xie, who will walk you through our R&D strategies and overall pipeline progress. Dr. Hui, go ahead, 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. Huizhou and Dr. Lei Qie, who will walk you through our R&D strategies and overall pipeline progress.

Speaker #2: Dr. Hui. Thank you.

Speaker #1: 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, 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 differentiating opportunity for IBI363 in treating cold tumors.

Speaker #2: 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 assets are core key oncology franchise are now moving into pivotal stage development, supported by compelling clinical data some already presented.

Speaker #2: And more to come at the upcoming medical conference. Next, first is about our IBS-363, which is in co-development with Takeda and continues to be our flagship next-generation IO asset.

Speaker #2: Our first wave of development is progressing our track. Our melanoma, which is China pivotal study, the first pivotal of IBI363, had head-to-head comparison versus pembrolizumab in IO-naive melanoma. We expect to read out data by end of this year.

Speaker #2: 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 differentiated opportunity for IBS-363 in treating cold tumors.

Speaker #2: And currently, our phase three 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 three 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-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 #2: IO-resistant lung cancer alone represents a significant unmet medical need, with market opportunity estimated at US $14 billion. We are looking forward to validating IBS 363's potential through global development.

Speaker #2: And 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 controlled study that is ongoing to evaluate IBS 363 based on a combination, in a head-to-head against pembro plus chemo.

Speaker #2: And 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 #2: 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 rate, regardless of PD-L1 expression level, validating the powerful immune activity from the IO 2 arm of this novel bi-function molecules. Next is about our IBI3003, the trispecific GPRC5D BCMA CD3 T cell engager. Encouraging initial data in heavily treated relapsed refractory multiple myeloma were presented at ASH last year.

Speaker #2: The clinical data is remarkable across both non-screamers and screamers, and histologies. Patients treated with IBS 363 demonstrated a significant long-term survival benefit; nearly half of the patients survived beyond 24 months.

Speaker #2: Our substantial improvement over the historical control history. Next, and furthermore, early POC data in first-line non-small cell lung cancer showed robust response rate regardless of PD-L1 expression level, validating the powerful immune activity from the IO2 of this novel bifunction molecule.

Speaker #2: Next is about our IBS 3003, the tri-specific GPIC 5D BSMA CD3 T-cell engager. Encouraging initial data in heavily treated relapsed and refractory multiple myeloma were presented at EHA last year.

Speaker #2: Our updated data set, with extended follow-up, dose optimization, and increased sample size, will be presented at a major medical conference in the second half of this year.

Hui Zhou: Updated data set with extended follow-up, dose optimization, and increased sample size will be presented at a 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 different function for ADC development. Our diversity platform, single payload, dual payload, actually can enable us to engineering everything from improved TOP1 ADC to first-in-class dual payload ADC, and to position molecules across the four key therapeutic areas under our portfolio management approach. Summarized here are the eight novel ADC assets already in clinical stage.

Speaker #2: 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 #2: IBS 3003 is a global second GPIC 5D BSMA CD3 that moved into the Phase 3 stage. Next, ADC platform capability is another core pillar of our next wave innovation.

Speaker #2: We have built a highly potent, low-toxicity, and differentiated platform for ADC development. Our diversity platform, single payload, dual payload, and exchange capabilities enable us to engineer everything from improved top-one ADCs to first-in-class dual payload ADCs, and to position molecules across the four key therapeutic areas under our portfolio management approach.

Speaker #2: 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 bispecific and dual payload ADCs have advanced into Phase 1 through the POC stage.

Hui Zhou: Beyond IBI343 and 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 the global potential, become our next wave of global opportunities. Next. IBI343 is our most advanced ADC, with a differentiated design that includes the Fc silent domain to reduce GR 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. 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 #2: Our goal is to identify and select the key molecules with global potential to become our next wave of global opportunities. Next, IBS343 is our most advanced ADC, with a differentiated design that includes an Fc-silent domain to reduce GI toxicity.

Speaker #2: A highly stable linker and a potent payload. It is the first COVID-19.2 ADC globally to reach the NDA stage. The NDA for third-line above gastric cancer was accepted and granted priority review by the NMPA in June 2023.

Speaker #2: And this phase three data was accepted as a BLA share in 2023 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 TRAE versus peers. We have already initiated two phase III study, one in PROC and the other in first-line breast cancer.

Speaker #2: Notably, we plan to open a new phase three in first-line PDAC in combination with AG regimen, which is nab-paclitaxel combined with gemcitabine, this year.

Speaker #2: The global Phase 1b BPOC study in first-line gastric and first-line PDAC are also growing. Takeda holds the China rights and will advance the global Phase 3 development upon POC readouts.

Speaker #2: Next is about our IBS 354, our HER2 ADC, and strong validation of our SOLO TX platform. The key differentiation is simple: high potency with low toxicity.

Speaker #2: 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 or higher IOD, and numerically lower TRAE versus peers.

Speaker #2: 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 neoadjuvant and adjuvant settings to strategically expand 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 B7-H3 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 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 #2: 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 #2: The preliminary Phase 1 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 #2: 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 3 program and generate POC data to support long-term value creation, now let's talk about what's next.

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 second half 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 include IO-resistant non-squamous NSCLC 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 #2: Our oncology pipeline milestones from the second half of this year into early 2027 start with IBS 363. The next few months will be critical. We have the pivotal melanoma readout, which could potentially support our first NDA for this molecule.

Speaker #2: We have the global Phase 3 expansion plan, including IO-resistant non-squamous lung cancer. We will continue data follow-up in first-line non-squamous lung cancer at CRC.

Speaker #2: Plus early phase one data publication in first-line gastric cancer. For IBS 354, we will have the phase three data readouts in platinum-resistant ovarian cancer.

Speaker #2: And more importantly, exploration into new adjuvant and neo-adjuvant treatments of breast cancer. For IBS-343, we plan to initiate a new Phase III in first-line PDAC in China, while continually following up on global POC 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 continually global POC follow-up in first-line PDAC and gastric cancers. For IBI303, we'll 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 IBI3005, IBI3014, and our dual payload ADC IBI320, IBI328, 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 #2: For IBS 303, we'll share updated data with expanded sample size, and we are pushing it into first line with anti-CD38 combination. Our ADC pipeline is enriched and is reaching the dose optimization stage with IBS 3001.

Speaker #2: And IBS305, 1314, and our dual payload ADC IBI1320, 1328 are advancing to validate the first-in-class dual payload ADC platform. Now, I will hand over to Dr. Lei Chen for a general biomedicine pipeline update.

Speaker #2: Dr. Chen, please.

Speaker #1: Thank you, Hui. In general, biomedicines, we have built a very differentiated portfolio anchored by four flagship products. By this time, the world’s first glucagon GLP-1 receptor dual agonist; assembled the first domestic PCSK9 inhibitor, and already covered by NIDL.

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. SINTBILO, the first domestic PCSK9 inhibitor, and already covered by an NRDL. PECONDLE, the first domestic IL-23p19 in China with a Q12-week dosing regime. Finally, SYCUME, the first domestic IGF-1 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. Backslide, please. We are conducting comprehensive lifecycle development for Mazdutide, our core CVM cornerstone asset. To date, five phase III trials have been completed. Four are ongoing, and additional studies are either underway or in planning.

Speaker #1: Monkey part, the first domestic IO23 P19 in China with a Q12-week dosing regimen, and finally the CUMI, the first domestic IGF-1 receptor blocking antibody covered by NIDL.

Speaker #1: 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 #1: We are conducting comprehensive lifecycle development for Magnified, 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 #1: Among the upcoming milestones, we anticipate the approval of the man-made dose and the pivotal data readout from the GLORY-3 study in early 2027.

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 #1: 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 #1: Furthermore, we plan to initiate a Phase III study evaluating Magnified for cardiovascular risk reduction in patients with ASCVD, further solidifying its position as a cornerstone asset in our CVM portfolio.

Speaker #1: Our next generation obesity portfolio was a key highlight at 88 this year. IBI 3032, our potential best in class all small molecule GLP-1 is in phase one in both the US and China.

Speaker #1: 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 4 weeks. IBI3042, the world's first once-weekly oral GLP-1, is showing promising preclinical data, and this one we have got an IND permission and approval. Both our amylin analog, IBI3040, and our INTV SRA, IBI3046, are also expected to enter the clinical by the end of this year. Finally, IBI3030, global first monthly PCSK9 GCG antibody peptide conjugation assets, 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 inhibition, a molecule size approximately one-quarter that of VABYSMO, and a higher molar dose.

Speaker #1: IBI 3042, the world's first once-weekly all-GLP-1, is showing promising preclinical data. For this one, we have got an IMD submission and approval.

Speaker #1: Both our emitting analog IBI-3040 and our INTV SRA IBI-3046 are also expected to enter the clinic by the end of this year.

Speaker #1: Finally, IBI 3030, the global first monthly PCSK9 GGG antibody peptide conjugation asset, is on track for clinical entry in 2027. In ophthalmology, we have IBI 324 ready for global pivotal studies.

Speaker #1: IBI324 is a very differentiated VEGF angiotube, specifically designed for higher potency and better tissue penetration. It offers three key advantages for Webismo.

Speaker #1: Thirty to sixty-foot higher angiotube intubation, a molecule size-appropriate approach—mainly one-quarter out of Webismo and a higher molar dose. These attributes have enabled this asset to become the first molecule globally to demonstrate a superior outcome with a various span in a head-to-head clinical study.

Lei Qian: These attributes has 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 retinal drying in diabetic macular edema, and 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 Biosciences, who will lead the global phase III development, while Innovent manage patients enrollment in China and Korea. We will expect the global phase III studies to initiate the second half 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 #1: As shown on the right in this deck, on this page, IBI 324 achieved faster and greater superior regional drying in diabetic macular edema, and faster, greater, and more durable control of pigment epithelial detachment—PED—in wet age-related macular degeneration, wet AMD.

Speaker #1: We are advancing IBI324 through a strategic partnership with Alllink, who will lead the global Phase III development, while Innovent manages patients enrolled in China and Korea.

Speaker #1: We will expect the global phase three 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 #1: The first molecule is IBI 33031 at GF1, TSH receptor at GF1 receptor. The TSH receptor arm was thoughtfully designed to achieve optimal balance with the GF1 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 progress 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 Spero Therapeutics 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 #1: For the 3038 L6 at F1 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 #1: 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 #1: It's targeting the IGF1/IGF4 residuative 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 #1: And more importantly, we've engineered out the strong process risk associated with the first generation of CD40 ligand antibodies, while keeping an IgG Fc-like half-life to avoid the PK issue of second-generation molecules.

Lei Qian: And more importantly, we engineered out the drug process risk 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 Spero Therapeutics, IBI355 represents multiple development opportunities across autoimmune and rare diseases. We will initiate a phase II study in Sjögren's disease in China soon, and Spero Therapeutics 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 #1: 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.

Speaker #1: 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 IGD4-related disease in the second quarter next year.

Speaker #1: In autoimmune diseases, we are excited to see a growing pipeline leveraging novel target combinations and an extended dosing interval enabled by our YTE antibody engineering platform.

Speaker #1: 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 eosinophilic asthma, we also planning to initiate new proof-of-concept studies in 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, perennial allergic rhinitis, and chronic rhinosinusitis with nasal polyps. Beyond these assets, we are also advancing IBI3013 IL-15 and IBI3034 TACI/BCMA, 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 MS disease, including vitiligo, AA, and IgAN. 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.

Speaker #1: 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 #1: Proof of concept studies are planned in seasonal allergic rhinitis (SAR), persistent allergic rhinitis (PAR), and chronic rhinosinusitis with nasal polyps. They are as WNP.

Speaker #1: Beyond these assets, we are also advancing IBI 3013 L15 and IBI 3034 TCBCMA, both of 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 MS needs, including vertical AA and IgA. Next slide.

Speaker #1: Let me walk through our priorities in general biomedicines in the coming five or six months. First, we are maximizing the value of our commercialized products through lifecycle management.

Lei Qian: We expect NDA approval for nusinersen and MAMIC, along with new life cycle management initiatives. We also plan to submit the NDA for tafamidis, PCSK9 inhibitor in first-line hypercholesterolemia, and we look forward to phase III readouts for sacubitril, IGF-1 receptor inhibitor in active thyroid eye disease. 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 toward MRCT phase III. Lastly, we continue to explore global opportunities in our early-stage pipeline, including early next-generation metabolic assets, ophthalmology bio-specifics, and novel autoimmune indications. With that, I will conclude my part and hand it over to our CFO, Rachel Yu.

Speaker #1: We expect NDA approval for MuscleTight Dynamic, along with new lifecycle management initiatives. We also plan to submit the NDA for a tough P69 inhibitor in first-line hypoglycerin, and we look forward to the Phase 3 readout for Secumi, a GF1 receptor inhibitor, in inactive thyroid IDs.

Speaker #1: Second, we are advancing our late-stage pipeline. IBI-32-302 is on track for NDA submission by the end of this year, and we are pushing forward our global asset, IBI-324.

Speaker #1: It's making steady progress toward MRCT phase three. Lastly, we continue to explore global opportunities in our early-stage pipeline, including early next-generation metabolic assets of the knowledge by specifics and novel autoimmune indications.

Speaker #1: With that, I will conclude my part and hand it over to our CFO, Rachel.

Speaker #2: Thank you, Dr. Chen. Looking at our financial performance in the first half of 2026, we saw sustained strong growth momentum. Total revenue reached RMB 8.6 billion, representing a 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 H1 2026, we sustained a strong growth momentum. Total revenue reached CNY 8.6 billion, representing a 45% year-over-year growth, while product revenue grew 47% to CNY 8.2 billion. This strong performance was driven by the dual growth engine strategy, resulting in a more diversified and a resilient revenue base. In H1, we recognized approximately CNY 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 H2. We still anticipate full-year up-front payment recognition to be around $200 to 300 million. Next slide, please.

Speaker #2: 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 collaboration with Takeda.

Speaker #2: Under the applicable accounting treatment, the timing of revenue recognition is associated with the achievement of specific milestones. We expect to recognize additional upfront payment income in the second half, and still anticipate full-year upfront payment recognition to be around $200 to $300 million.

Speaker #2: Second, next slide please. Profit-wise, FRS net profit reached RMB 1.3 billion, up 50% year over year. Notably, this half-year number has already exceeded the full-year profit of 2025.

Rachel You: Profit-wise, Non-IFRS net profit reached CNY 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 CNY 1.7 billion in the H1. As Michael mentioned, we have evolved towards portfolio-driven and disease area-based management model to ensure sustained and 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 CNY 20 billion in product revenue by 2027.

Speaker #2: 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 #2: 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 #2: 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 #2: Next group. 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 CNY 4 billion, 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. Today, we are setting a new revenue target of CNY 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. 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 #2: We have 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 #2: 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 #2: 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 #2: Supported by this strong and sustainable internal growth driver, we are confident that we can deliver this new ambition and further expand the innovative long-term growth potential.

Speaker #2: Next slide. Finally, I would like to share our perspective on Innovent's valuation. We believe Innovent stands among 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 CNY 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 #2: 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 #2: 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 #2: 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 #2: 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 continuous support of Innovent. We will now open the floor for questions. Dr. Huang.

Speaker #2: 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 #3: Yeah. Thank you to Innovent management for a very detailed and comprehensive presentation. I see a number of investors and analysts have already raised their hands, but I'll take the chance—maybe I'll ask two questions first.

[Company Representative] (J.P. Morgan): 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, on 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 will 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?

Yang Huang: 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, on 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 will 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 #3: So my first question is more, I think, at a strategic level. So I would like to better understand—now Innovent has a grandiose 2030 goal with a revenue target and, you know, a global launch target.

Speaker #3: So I want to understand, how does a company set up such a strategic objective and development direction, and how will Innovent ensure the correct and meritful execution of such a goal?

Speaker #3: And also, since the company will, you know, have a global launch by 2030, on such globalization goals, how will the company build up its overseas presence and target talent and team going forward from here?

Speaker #4: Thank you. Thank you, Dr. Wong. 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, Dr. Wang. Let me try to share with you, how we develop our strategic objective and how can we ensure that those strategic objectives 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 a lifetime, but vision is 10 years. The first question we ask at our annual strategy meeting is, how will Innovent look like by year 10 from now? So 10 years later, how Innovent will look like? That's the first question.

Speaker #4: Let me start with a few definitions. Which is part of our strategic development methodology. Now we we at the we annually every year in Innovent history we have our annual strategy meetings.

Speaker #4: 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 #4: We usually set about 10 years. As you know, the mission is for lifetime. But the vision question we ask at our annual strategy meeting is: how will Innovent look like 10 years from now?

Speaker #4: So, ten years later, what will Innovent look like? So that's the first question. The second question is, if we want to know how the company will look by year ten, what should we invest in over the next three years?

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 objectives 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're going to invest, what's the one-year KPI? The performance review index. Those are the same set of questions we ask every year to ourselves. 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's a GPIT mean? GPIT stands for geopolitical and politics and the economy in China, which is P, and then followed by industry, which is I, and end with technology is T. So GPIT.

Speaker #4: Basically, that is a set of strategic objectives for three to five years of the company, so that's the second question. The third question is, based on the area or focus of the area we're going to invest, what's the one-year KPI?

Speaker #4: The performance review index. So, those are the same set of questions we ask ourselves every year. So that's number one. Number two, in order to develop a set of questions and answers to those three questions...

Speaker #4: We usually will do analysis, which we call GPIT. What's GPIT mean? GPIT stands for geopolitical and politics and economic in China, which is P.

Speaker #4: And then followed by industry, which is I. And and with technology is T. So GPIT. 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 politic 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 of hours and to analyze all this microenvironment from geopolitical, particularly U.S.-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 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 #4: So those are the four specific areas we believe have a major impact when we develop our strategic objectives. So that's number two. And then number three related to this is that the meeting usually starts after Chinese New Year.

Speaker #4: 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 #4: So, that's basically what I want to share with you—the methodology we are taking year over year in the last 15 years.

Speaker #4: And we found that very effective and very powerful. And the two transformations I shared with you earlier come out of this analysis.

Michael Yu: And we found that very effective and very powerful, the two transformations I shared with you earlier have come out from this analysis. For example, in 2016, we only have assets product in phase II trial. We already had to plan the company how we can become a full value chain business. We did our first transformation from R&D company, transform ourselves into a commercial company, prepare, basically give us 2 years plan. Then the second transformation is happening in 2020. As you know, that time, a lot of change following the year of 2020, and the company became a profitable company, which is the 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 #4: For example, in 2016 we had only assets or products in phase two trial. We were already planning the company—how we could become a full value chain business.

Speaker #4: So we did our first transformation—from an R&D company, we transformed ourselves into a commercial company. Basically, we prepared, and that gave us a two-year plan. And then the second transformation happened in 2020.

Speaker #4: As you know, that time saw a lot of change 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 in those four areas.

Speaker #4: And you know, I can share with you more detail about how we arrived at that. The same is true for what we just announced tonight for 2030.

Speaker #4: Actually, we have a goal for 2035, which we set two weeks ago. At that meeting, we established a set of goals for year 10, which is 2035.

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 that key areas, 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.

Speaker #4: And then for a three- to five-year goal, which is 2030—the 2030 goal we have just shared in my slides, slide four. Based on the same set of methodology.

Speaker #4: So, we are very confident. When we do this year over year, every year we analyze those four areas and refocus our investment in the key areas. Eventually, we found that we always get where we want to be.

Speaker #4: That's how we have been seeing ourselves in the last 15 years. So, thank you, Dr. Wagner. 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: I am not sure that I have answered your question, but just want to share with you our methodology to develop strategical 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] (J.P. Morgan): Okay, great. Just 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?

Yang Huang: Okay, great. Just 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 #4: Yeah, let me start with, you know, as you know, one of the goals for us is that by 2030, we're going to have five assets in MICT, right?

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? Before end of the year, we only have three, and we are likely going to have more moving to MRCT track before 2030. So 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 colors.

Speaker #4: And by before end of the year, we only have three, and we are likely going to have more moving to MICT before 2030.

Speaker #4: So, any one of those, if successful by 2030, will be launched in the US and Europe. Based on our current timeline, you know the schedule we have for each one of those assets.

Speaker #4: And the way you may want to add more if you want 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. The second, as you know, our globalization, currently, we already build up the strategic partnership with Takeda, Eli Lilly, and Pfizer. For those, we have including five Co-Co molecules, right, and more than 10 to 20 license out. Actually, we still keep some multiple asset with ourself. We decided that move ahead 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 #4: So that means, from discovery to clinical, and even to CMC, and also definitely to commercialization. So this is one of our definitions of globalization.

Speaker #4: And the second, as you know, our globalization—currently we have already built up strategic partnerships with Takeda, Eli Lilly, and Pfizer. So with those, we have included five co-developed molecules and more than 10 to 20 licensed out.

Speaker #4: But actually, we still keep some multiple assets with ourselves. So, we decided to move ahead with our own capability, our own team. That's why we built up our China team, especially for the clinical team. Our goal is also to build up a full-function clinical team, especially an in-house clinical team, to move ahead with those molecules for global development.

Speaker #4: So here, I think this is the overall whole picture, and together with the goal which Dr. Yu has already shared with you. Thank you.

Hui Zhou: Here, I think this is the overall whole picture, and together with already the goal, which share 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 set up.

[Company Representative] (J.P. Morgan): Okay, great. Thanks for that. My second question hopefully only requires some short answer. That is more about 2030 revenue targets company set up. For 2027, the company's goal is on total product revenue, and now it is on total revenue, right? There is some metric become a little bit different. 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.

Yang Huang: Okay, great. Thanks for that. My second question hopefully only requires some short answer. That is more about 2030 revenue targets company set up. For 2027, the company's goal is on total product revenue, and now it is on total revenue, right? There is some metric become a little bit different. 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's goal is on 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 #4: Yeah, I have a question for you.

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

Speaker #2: 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 RMB 20 billion product revenue target by 2027.

Rachel You: Yeah. Thank you, Michael. Thank you, Dr. Huang. Based on our current product revenue trend, we believe there is relatively high chance for us to achieve the CNY 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, and 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 #2: 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 #2: 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 #2: And 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 #2: 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 asset global pipeline IBI363, IBI343, and IBI324, 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. But more importantly, I wanted to highlight, we anticipate global revenue will become the key driver for our company from 2030.

Speaker #2: But more importantly, I wanted to highlight, you know, we anticipate global revenue will become the key driver for our company from 2030.

Speaker #3: Right.

[Analyst]: Right.

Michael Yu: 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, go ahead.

[Company Representative] (J.P. Morgan): 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?

Yang Huang: 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?

[Company Representative] (J.P. Morgan): Zhi, you want to ask question?

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

Yang Huang: Zhi, you want to ask question?

Speaker #5: 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 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 tonight. Just follow-up on the guidance. Rachel mentioned it is going to be mainly coming from China franchise. We are 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 CNY 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 launch is going to be the driver, too. Moving forward from CNY 20 billion, get up to CNY 35 billion to CNY 40 billion, which is mainly coming from China, what will be the principal drivers to that?

[Analyst 1]: 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 tonight. Just follow-up on the guidance. Rachel mentioned it is going to be mainly coming from China franchise. We are 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 CNY 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 launch is going to be the driver, too. Moving forward from CNY 20 billion, get up to CNY 35 billion to CNY 40 billion, which is mainly coming from China, what will be the principal drivers to that?

Speaker #5: And just to follow up on the guidance, you know, Rachel mentioned it's going to be mainly coming from the China franchise. We're still trying to understand a bit more about what could be the key driver to that target.

Speaker #5: Because from 2024 to 2027, when you put out the $20 billion target, we have been very clear that, you know, GLP-1 and PD-1 are going to be the key drivers, while a bunch of new product launches are going to be the drivers too.

Speaker #5: 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 #5: 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 benchmarking to top-tier global pharma for profitability. How would you define the top tier in this benchmark?

[Analyst 1]: Secondly, on the margin side, Doctor, you mentioned benchmarking to top-tier global pharma for profitability. How would you define the top tier in this benchmark?

Speaker #5: 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 be specific, what level of margin are you really targeting given IFRS net margin of Innovent in H1 of the year already getting up to very close to mid-teen level, and Non-IFRS is getting close to 20%, right? Is there still room for further expansion? If yes, what will be driving that? Thank you.

[Analyst 1]: To be specific, what level of margin are you really targeting given IFRS net margin of Innovent in H1 of the year already getting up to very close to mid-teen level, and Non-IFRS is getting close to 20%, right? Is there still room for further expansion? If yes, what will be driving that? Thank you.

Speaker #5: 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 #4: Thank you, Z. First question, related to the revenue, I ask Rachel to help. And Rachel Deng. And the margin part, related to who’s our peer to benchmark with and have a ratio—you.

[Company Representative] (J.P. Morgan): Thank you, Zhi. First question related to the revenue. I ask Rachel to help, Rachel Yu. The margin part relate to who is our peer to benchmark with, Rachel Yu.

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

Speaker #2: Thank you Dr. Yu and thank you Z for your question. So as we already reached a scale of more than like one 10 billion R&B and yourselves the sustainable rapid incremental growth will require a shift you know from a single product growth to a portfolio driven model.

Vivian Zhang: Thank you, Doctor. Thank you, Zhi, for your question. As we already reached a scale of more than CNY 10 billion 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 co-tumor or IO-resistant diseases.

Speaker #2: So, in terms of the 2030 goal for the oncology side, we think the growth will mainly come from the launch of several new-generation blockbuster products.

Speaker #2: So first of all, for 363, we anticipate this product will be first launched in China for melanoma. And it could also have a huge opportunity to provide an entirely new immuno-oncology treatment option for patients with co-tumors or, you know, IO-resistant diseases.

Speaker #2: And also for 343, our targeting Claudin 18.2-positive gastric cancer, we already submitted the NDA in May. We anticipate this product will become the first, you know, Claudin 18.2 ADC in the China market, with the launch likely in the first half of next year.

Rachel You: Also for IBI343, our targeting CLDN18.2 positive gastric cancer, we already submitted the NDA in this May, we anticipate that this product will become the first CLDN18.2 ADC in China market, 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. IBI354, 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. The breast cancer definitely will be a new growth area and a therapeutical area for us to further grow our oncology business.

Vivian Zhang: Also for IBI343, our targeting CLDN18.2 positive gastric cancer, we already submitted the NDA in this May, we anticipate that this product will become the first CLDN18.2 ADC in China market, 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. IBI354, 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. The breast cancer definitely will be a new growth area and a therapeutical area for us to further grow our oncology business.

Speaker #2: And the phase three 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 #2: And the 345, our hoped-for HER2 ADC product, is also expected to file an NDA for ovarian cancer first by the end of this year.

Speaker #2: And 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 #2: So this so so the breast cancer definitely will be a new you know growth area and the therapeutical area for us to further growth our oncology business.

Speaker #2: 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 to significant growth for our oncology business.

Rachel You: Combined with Verzenios and our IBI354 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 into the National Reimbursement Drug 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 is going to be a continuous growth from our TKI rare mutation products. Another growth engine is our general biomedicine business. The growth is expected to come mainly from the continued expansion of our major products and our continuous lifecycle management for several key brands in cardiovascular and metabolism.

Vivian Zhang: Combined with Verzenios and our IBI354 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 into the National Reimbursement Drug 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 is going to be a continuous growth from our TKI rare mutation products. Another growth engine is our general biomedicine business. The growth is expected to come mainly from the continued expansion of our major products and our continuous lifecycle management for several key brands in cardiovascular and metabolism.

Speaker #2: And more importantly, this year is the first year for our five TKI products to be included in 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 #2: So, we also anticipate that there's going to be continuous growth from our, you know, TKI rare mutation products. Another growth engine is our general biomedicine business.

Speaker #2: 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.

Speaker #2: In cardiovascular and the metabolism. So first of all for product such as like Shingarme and also Shingbila 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.

Vivian Zhang: First of all, for products such as Xingarmei and SINTBILO, our PCSK9, are expected to continue increasing the patient penetration. We also 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. For the ophthalmology franchise, as Dr. 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. 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, then we anticipate a further growth from Xingmeiyue.

Speaker #2: 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 #2: And this product has high potential benefits from its long-acting profile and its ability to reduce, you know, molecular atrophy. And we are also anticipating to launch 324 later this year or in the next several years.

Speaker #2: For immuno so so for immunology we are actively pursuing the NRDL for our IO23 product this year. And we anticipate a further growth from our from Shingmeiyue.

Vivian Zhang: We also expect to launch our gout product, likely in the next one or two 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 will pass to Rachel Yu to answer the profitability question.

Speaker #2: And also, we expect to launch our gout product, you know, likely in the next one or two years. So this will further enrich our immunology portfolio as well.

Speaker #2: Also we are preparing for the launch for our 3060. This is an AGT SIRNA therapy for long long acting blood pressure management product. And this could also become a product that would contribute our CVM business you know in the next several years.

Speaker #2: So these are all the pipeline programs that we believe, by 2030, are going to contribute to some of the further growth in terms of the revenue scale.

Speaker #2: So our path to Rachel Yo to answer the profitability question.

Speaker #1: Yeah, thank you Rachel, and thank you, Z, for the question. I think you can see we continue to drive our margin expansion with our strong revenue growth year over year.

Rachel You: Yeah. 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 are 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 are going to benchmark our profit margin with the leading player globally.

Speaker #1: So I think when we set the revenue target for 2030, of course we want to benchmark our profitability with the leading player in China.

Speaker #1: You know, I think when we continuously grow our operating system, grow our product, and scale with the efficiency improvement, I think we're able to continue to drive the margin expansion.

Speaker #1: I think starting from 2030, as I mentioned earlier, the global revenue is going to become the new driver for our business. So, after that, I think we're going to benchmark our profit margin with the leading player globally.

Speaker #3: 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 is very clear.

[Analyst 1]: Great. Thank you, Rachel and Rachel. Thank you so much. It is very clear.

Speaker #4: Thank you, Z. Next, let's go to Jack—Jack Lin.

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

Yang Huang: Thank you, Zhi. Next, let's go to Jack. Jack Lin.

Speaker #5: Hi. Thank you, Dr. Huang. Can you hear me?

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

[Analyst 2]: Hi. Thank you, Dr. Huang. Can you hear me?

Speaker #4: Yes, we can hear you. Go ahead.

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

Yang Huang: Yes, we can hear you. Go ahead.

Jack Lin: 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, Dr. Zhou, and Dr. 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.

[Analyst 2]: 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, Dr. Zhou, and Dr. 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 #5: 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.

Speaker #5: With a company not having over 100 preclinical projects, 20 plus Phase I POC, and five COCA programs, as I think Dr. Yu, Dr. Joe, and Dr. Qian have showcased earlier.

Speaker #5: 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'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 milestones to kind of support to near to watch for as well as kind of supporting its kind of longer term growth trajectory?

Speaker #5: Thank you.

Speaker #6: Thank you, Jack. I will ask both Hui and Lei to highlight the key milestones for oncology and biogenic medicine, respectively.

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

Speaker #7: Thank you for the question. And for oncology, for the second half of this year or early next year, actually, we will primarily focus on next-generation IO and ADC programs.

Hui Zhou: 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 the ADC program. I will highlight several. IBI363 is still the most important for us. We will potentially have the first NDA submission for melanoma in China by the end of this year or early next year. We are still moving ahead for the second line global. We will actually expand to second line 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 upon that, and talk to FDA about the further MRCT. Actually we will disclose our first line gastric cancer data at this year's ESMO.

Speaker #7: And I will highlight several important points 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 #7: And we are still moving ahead for the second-line global. We will actually expand to second-line non-squamous, non-squamous lung cancer global MRCT.

Speaker #7: And we will continue to follow up on the POC data from the first-line non-screamers in lung cancer and the first-line colorectal cancer, and upon that, talk to the FDA about the further MRCT. Actually, we will disclose our first-line gastric cancer data at this year’s ESMO.

Hui Zhou: We expand to, that means expand to other tumor types. For IBI343, we already submitted the NDA and potentially will be approved H1 of next year. For PDAC, we 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. For IBI354, we already also mentioned that the first indication for ovarian cancer, we will submit NDA end of this year. For IBI303, we will discuss at this year's EHA in Scotland. This is for with expanded sample size from our phase I study, and we will expand it to the first line combo study with CD38. I think this is the key for the molecule in pivotal stage, and we have multiple early assets.

Speaker #7: So, we expand to—that means expand to other tumor types. And for 343, we've already submitted the NDA and it potentially will be approved in the first half of next year. For PDAC, we've also expanded to have data readout at the end of this year or early next year, and we plan to initiate the first-line PDAC 33 study in China by the end of this year.

Speaker #7: And for 354 so we already also mentioned that the first indication for ovarian cancer we will submit NDA end of this year. And for 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 and we will expand to our the first line compost study with CD38.

Speaker #7: I think this is key for our molecule in the 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 P723 ADC.

Hui Zhou: We already mentioned, especially for this year's ESMO, we will have the oral presentation for our EGFR p73 ADC. Dr. Chen.

Speaker #7: So Dr. Qian.

Lei Qian: For general biomedicine side, mazdutide progression for development will still be one of our key focus since it has become one of the pillar molecules, even from commercial perspective. Among the upcoming milestones for mazdutide, we will anticipate the approval of the dynamic 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 MAFLD. That readout will be the end of this year and early next year. Beyond that, there is 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 HFpEF, one type of heart failure, and also patients with MASH. That is for the update for mazdutide. Beyond mazdutide, there is other NDAs, for example, for PCSK9 inhibitor, afolecimab.

Speaker #8: For general biomedicine side, definitely, progression for development will still be one of our key focuses, since this has become one of the pillar molecules even from a commercial perspective.

Speaker #8: Among the upcoming milestones, we will anticipate the approval of the dosage and also the readouts of several pivotal studies, including the GLORY-3 study, in which we compared with semaglutide 2.4 mg in patients with obesity and also with methyl.

Speaker #8: And that readout will be at the end of this year and early next year. Beyond that, there are also other pivotal results, including for patients with obesity, patients with OSA, and adolescents with obesity.

Speaker #8: As well as we have proof-of-concept results in patients with half-path one type of heart failure and also patients with MASH. That's the update for Beyond. There are other NDAs, for example, for the PCSK9 inhibitor—we'll have the NDA submission for first-line hypercholesterolemia at the end of this year, and we are looking forward to the Phase 3 readout for IGF-4N receptor tumor map N01 in inactive TED in the second half of this year.

Lei Qian: We will have the NDA submission for the first line hypereosinophilic syndrome at the end of this year, and we are looking forward to the phase III readouts for IGF-1 receptor, teprotumumab N01 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. We will bring our assets, IBI324, bispecific. We believe it is superior to VABYSMO. By the end of this year, three approval study will be initiated in that assets. We are also quite excited for early assets, especially for metabolic disease, next generation of GLP-1s, including daily oral IBI3032, and 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 #8: And for ophthalmology, 302 is on track for NDA submission and that will happen at the end of this year. We will bring our asset IBI324, which we believe is superior, and by the end of this year three pivotal studies will be initiated in that asset.

Speaker #8: We are also quite excited for our early assets, especially for metabolic disease—the next generation of GLP-1s—including oral, daily oral 3032. We'll initiate a proof-of-concept study later this year, and 3042, which I think is a global first: a weekly oral GLP-1. We will have clinical data by the end of this year. And Emiling weekly injection is potentially best in class and has the potential to have a fixed-dose combination with other SRA assets.

Lei Qian: The amylin weekly injection, potentially best in class, 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 one, all these assets will become the next generation of mazdutide in the next several years. Thank you.

Speaker #8: This will definitely become more and more important in this field, and we believe that all these assets will become the next generation in the next several years.

Speaker #8: Thank you.

Hui Zhou: Got it. Thank you, Dr. Jones. Thank you, Chen Chen.

[Analyst 2]: Got it. Thank you, Dr. Jones. Thank you, Chen Chen.

Speaker #1: Thank you, Dr. Johnson. Thank you, Dr. Qian.

Speaker #3: Okay, thank you, Jack. Next, let's go to Jiao Wu. Go ahead.

[Company Representative] (J.P. Morgan): Okay. Thank you, Jack. Next, let's go to Zhao Wu. Go ahead.

Yang Huang: Okay. Thank you, Jack. Next, let's go to Zhao Wu. Go ahead.

Zhao Wu: 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 H1 of this year, and the sales accelerated to 57% year-over-year. Could you please elaborate what has driven this strong growth, and how did the key products perform? Also, given the strong H1 performance, what is your outlook for the growth in H2 of 2026? This is my first question. I have another one. Thank you.

[Analyst 3]: 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 H1 of this year, and the sales accelerated to 57% year-over-year. Could you please elaborate what has driven this strong growth, and how did the key products perform? Also, given the strong H1 performance, what is your outlook for the growth in H2 of 2026? This is my first question. I have another one. Thank you.

Speaker #5: 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 strong revenue growth in the first half of this year.

Speaker #5: The sales accelerated to 57% year over year. Could you please elaborate on what has driven this strong growth, and how did the key products perform?

Speaker #5: And also, given the strong first half performance, what is your outlook for growth in the second half of 2026? This is my first question.

Speaker #5: I have another one. Thank you.

Speaker #1: Okay, okay, thank you. After the ratio, then. Help us to address the question.

[Company Representative] (J.P. Morgan): Okay. Thank you. I ask Rachel then help us to address the question.

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

Vivian Zhang: This is Dr. Wang, and thank you, Zhao, for your question. The product revenue reached CNY 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 due engine growth strategy. It's 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 H1 of the year have become a major growth driver in our oncology business. More importantly, general medicine business has actually contribute even larger growth for 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.

Speaker #7: Thank you, Dr. Qian, and thank you for your question. So, the product revenue reached RMB 8.2 billion in the first half of this year. The revenue was already equivalent to the full-year revenue in 2024.

Speaker #7: Product revenue continued to grow rapidly, validating our dual engine growth strategy. It's by different business units for oncology, as I mentioned previously, following the NRDL inclusion for our five TKI products.

Speaker #7: 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 #7: But more importantly, general medicine business has actually contributed even, you know, larger growth, you know, for the first half. The growth is very strong.

Speaker #7: We previously anticipated that the oncology and the general medicine business would gradually contribute at a similar level, you know, by 2027. The current trend is still consistent with our expectation.

Vivian Zhang: The current trend is still consistent with our expectation. For mazdutide, the product was just launched, like a full year anniversary. Over the past 1 year, we leveraged its unique mechanism as the world's first and only GCG GLP-12 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 an 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 continued 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.

Speaker #7: For mezotide so the product was just 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-1 dual agonist and its differentiated metabolic benefits you know to reach target patient groups and build initial brand recognition successfully.

Speaker #7: This year, although our key competitor is listed in the NRDO with a much lower price, we also observed that the penetration in the overall weight management market remains pretty low.

Speaker #7: With more active market education this year, the number of users and the treatment volume continue to grow strongly. So Mezotide is now the second largest brand in China's self-pay weight management market.

Speaker #7: So overall, its self-performance is in line with our internal expectations. Our 311, the Saikumi, the TED product, after launch, we see substantial medical needs in thyroid eye disease.

Vivian Zhang: Our IBI311, the SYCUME, the TED product, after launch, we see substantial unmet medical needs in thyroid eye disease. This product is the only product in this disease area in China. Its rapid onset has generated positive feedback from physicians and the patients and has supported continued standardized use. The successful listing of an NRDL implementation earlier this year also drives and translates 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.

Speaker #7: And this product is the only product in this disease area in China. Its rapid onset has generated positive feedback from physicians and patients, and supported continued standardized use.

Speaker #7: The successful listing of NRDO implementation earlier this year also drove and translated these clinical benefits into product value. 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.

Speaker #7: Its 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, we believe this target will establish a new standard of care.

Speaker #7: So we also performed a really well in this area because this is the second year of the reimbursement. We successfully being listed in more than 1,500 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: We successfully being listed in more than 1,500 hospitals. 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.

Speaker #7: So I think overall for the first half of the year, these are the key highlights. For the second half of this year, we still anticipate very strong growth for the rest of the year, supported by the continued self-ramp up of all these core products we just mentioned.

Speaker #7: We also would like to highlight that because mezotide was launched in the second half of 2025, and also 311, our TED product, had only recently begun commercial sales, I think in March 2025.

Speaker #7: These actually make the base of the first half of 2025 relatively low. Okay. So, therefore, the comparison base is different, resulting in a more than 57% year-on-year growth.

Speaker #7: So, we just want all the investors to be aware of the different launch periods 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.

Vivian Zhang: We just want all the investors to be aware of the different launch period by different brand. 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 an 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.

Speaker #7: We therefore encourage all investors to set reasonable expectations for the rest of the year. In addition, we have several products that have already passed the formal NRDO review for this year.

Speaker #7: We have two products for which we need to add new indications or renew our NRDO status, and we have another four major brands that are planned to be newly listed in NRDO.

Speaker #7: So there might be some, you know, price adjustment by the end of the year, which needs to be reflected in the channel inventory compensation part.

Speaker #7: You know, this probably will also impact the fourth quarter total revenue sales. Please also take this factor into consideration. Thank you.

Vivian Zhang: Thank you.

Speaker #1: 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.

Zhao Wu: Thank you, Rachel. That is 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 am 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.

[Analyst 3]: Thank you, Rachel. That is 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 am 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 #1: I'm wondering, how has Innovent built your relationship with the MNCs, and what are the key strengths of Innovent that have attracted those global partners to achieve significant transactions with Innovent?

Speaker #1: Thank you.

Speaker #2: Yeah. Ask our Sam. Is Sam online?

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

Speaker #4: Yeah. Thank you, Jill. Thank you, Michael. In the interest of time, I'm going to quickly answer your question. You know, large pharma cares about the strategic value that Innovent can provide.

Samuel Zhang: Yeah. Thank you, Jill. Thank you, Michael. In the interest of time, I am 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 is 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 a large pharma. What BD need to do is just to articulate that very, very clearly, based on fact, so that the large pharma can clearly see those strategic values.

Speaker #4: And that strategic value is at a company level as well as at the asset level. 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 #4: And I think that's the value provided by the company. Also, you know, we have very unique assets. We have very unique R&D capabilities.

Speaker #4: All those are highly valued by a large pharma. And what BD need to do is just to articulate that very, very clearly based on fact so that the large pharma can clearly see those strategic values and obviously Innovent has been in this business for a long time has built the relationship with the a number of large pharma already and each one of us are bringing our own relationship as well.

Samuel Zhang: Innovent has been in this business 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. That is the most attractive part to the larger 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 #4: But most importantly, it is to leverage those relationships and really articulate the strategic value that a partnership with Innovent provides. That's the most attractive part for the larger pharma partners, and it is a very important foundation for the success we have achieved over the last four months.

Speaker #4: And I just want to add that the Pfizer deal closed early last month, and we have already received our upfront payment.

Speaker #1: Okay. Thank you. Congratulations. Thank you.

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

[Analyst 3]: Okay. Thank you. Congratulations. Thank you. Dr. Wang, can I go for the next question, please?

Speaker #6: What's going on? Can we go to the next question, please?

Speaker #2: Yes. So next, let's go to Matthew. Go ahead, Matthew.

[Company Representative] (J.P. Morgan): Yes. Next, let's go to Matthew. Go ahead, Matthew.

Yang Huang: Yes. Next, let's go to Matthew. Go ahead, Matthew.

Speaker #7: Hi, thank you for taking my questions. I have only one question: can you provide some color on the operating expenses in the second half of this year, particularly R&D and also selling expenses? Could you also share the outlook for your net profit in the second half versus the first half?

[Company Representative] (Morgan): Hi. Thank you for taking my questions. I have only one question. Can you provide some color on the operating expense in the H2 of this year, particularly 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.

[Analyst 4]: Hi. Thank you for taking my questions. I have only one question. Can you provide some color on the operating expense in the H2 of this year, particularly 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 #7: Thank you very much.

Speaker #2: Thank you, Matthew. I have a ratio to answer the question.

[Company Representative] (J.P. Morgan): Thank you, Matthew. I have Rachel to answer the question.

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

Speaker #1: Yeah. Thank you, Dr. Yu, and thank you, Matthew, for the question. As another Rachel already gave 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. Rachel already gave a holistic introduction about overall product revenue growth for H1 and H2. From my side, I would just give some guidance on the overall, let's say, BD income as well as the expense side. For the BD revenue, as I mentioned previously, is associated with the achievement of certain development milestone. 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 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 associated with the achievement of certain development milestones. So if you look at the 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 US dollars.

Speaker #1: So for the you know R&D expense you know in the second half I think you know as Dr. Yu 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 areas.

Rachel You: Our R&D investment is also to support the sustained strong growth across all our key focus therapeutic area. For 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 CNY 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 H1 versus H2.

Speaker #1: So, for the second half of this year, I think we will continue to invest in the 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 are expected to be anywhere from R&B 3 to 4 billion this is also consistent with our communication with the market 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 noting that selling expense ratios 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, so we continue to ensure our necessary investments and that personnel are properly deployed to maximize the value of our products.

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 Verzenios' 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: Boost the brand awareness and expand our market reach. So, in oncology, the company now has 14 commercialized products for breast cancer. We will form a dedicated team to support the valued 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 and retail channel, to enhance patient access.

Speaker #1: To strengthen our overall chronic disease franchise and our long-term market footprint, we will also continue to invest in market education and market efforts to drive 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 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.

Speaker #1: So overall, you know, to summarize: if you look at our full-year expectation for profit, I think revenue-wise and BD revenue, we anticipate the second half would be higher compared to the first half. So, the gross margin is going to be stabilized, I think, in the second half. Meanwhile, I think actual R&D expense and the selling and administration expense are expected to be higher in the first half than in the second half. So, for the full year, I think we're still confident with strong top-line revenue growth as well as the bottom-line growth compared to 2025.

Rachel You: 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: Thank you.

Speaker #2: Okay, next. Since the call has already been going on for one hour and forty minutes, I understand there are many investors and analysts who have questions. But I'm afraid we can only take one last question from here.

[Company Representative] (J.P. Morgan): Okay. Well, I guess since the call already has been going on for well over 40 minutes, I understand the 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.

Yang Huang: Okay. Well, I guess since the call already has been going on for well over 40 minutes, I understand the 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 #2: Next, let's go to Chen Chen. Chen Chen, go ahead. Chen Chen, you're unmuted, I think. Yes, we can hear you.

Chen Chen: Hi, can you hear me?

[Company Representative] (J.P. Morgan): Yes, we can hear you.

Yang Huang: Yes, we can hear you.

Speaker #1: Okay, good. Thank you for taking my questions. I just want to follow up on NRDL negotiation. So, we will have both first-time negotiations and 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?

Chen Chen: 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 #1: Thank you.

Speaker #2: Thank you, Chen Chen. I have a question about ratios.

[Company Representative] (J.P. Morgan): Thank you, Chen Chen. I will ask Rachel help.

Yang Huang: Thank you, Chen Chen. I will ask Rachel help.

Speaker #1: Sure. Thank you Chen Chen for your question. So as we mentioned previously so all our NRDL application has been formally you know passed by the first round of review I think recent several weeks I think the national the government actually is actively calculating everything you know to set the the envelope price so we are actively preparing all the dosier and hopefully we can have some chance to communicate with the government later you know and Innovent has almost every year we experience this NRDL negotiation we are very confident that we have strong capability you know and the deep understanding of the policy you know so we cannot 100% ensure 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 NRDL.

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 the 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 #1: Thank you. Thank you, Richard and Michael. Looking forward to the NRDL results.

Chen Chen: Thank you, Rachel and Michael. Looking forward to the NRDL results.

Speaker #2: Thank you.

Vivian Zhang: Thank you.

Speaker #3: Thank you.

[Company Representative] (J.P. Morgan): Thank you. Thanks. I would like to now turn over the call to Innovent management team for any concluding remarks.

Michael Yu: Thank you.

Speaker #2: Thank you. I'd now like to turn the call over to the Innovent management team for any concluding remarks.

Yang Huang: Thanks. I would like to now turn over the call to Innovent management team for any concluding remarks.

[Company Representative] (Innovent Biologics): Okay. Thank you, Dr. Huang, for hosting the call for us, and thank you all for staying late with us for this call. It is 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 do not have enough time to answer each of the questions today. But our team will be more than happy to follow up and to see if any questions from investors and analysts. Thank you all for attending today's call, and thank you for your continued attention and support to Innovent. We will conclude this call now. Thank you.

Wendy Song: Okay. Thank you, Dr. Huang, for hosting the call for us, and thank you all for staying late with us for this call. It is 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 do not have enough time to answer each of the questions today. But our team will be more than happy to follow up and to see if any questions from investors and analysts. Thank you all for attending today's call, and thank you for your continued attention and support to Innovent. We will conclude this call now. Thank you.

Speaker #4: Okay. Thank you, Dr. Huang, for hosting the call for us, and thank you all for staying late with us for this call. 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 coming up on the line, but unfortunately we don't have enough time to answer each of the questions today. But our team will be more than happy, you know, to follow up and to see if there are any questions from the investors and analysts. Thank you all for attending today's call, and thank you for your continuous attention and support to Innovent.

Speaker #4: We will conclude this call now. Thank you.

Speaker #1: Thank you.

Vivian Zhang: Thank you.

[Company Representative] (J.P. Morgan): Thank you.

Yang Huang: Thank you.

Speaker #3: Thank you.

Chen Chen: Thank you.

Browse all earnings call transcripts

Q2 2026 Innovent Biologics Inc Earnings Call

Request TrialDemo

Innovent

Earnings