Sichuan Kelun Pharmaceutical Co., Ltd. ($002422)

Thank you for joining Kelun Biotech earnings call for 2025 annual results. Within next one hour, we are going to present our business and financial performance in 2025. followed by a Q&A session. Management presentation will be conducted in Mandarin with English interpretation. Please switch to each channel if you prefer English language. This conference call will be recorded and provided to Kelun Biotech clients or used internally for reference and distribution. Any forward-looking statements made during this call are based on current expectations and assumptions made by the management. The company undertakes no nation to update or revise unless required by law or regulations. The unaudited information is just for reference only and should not be considered as investment advice for a guarantee of the future performance.

[Foreign Language][Interpreted] President and CEO; Dr. Ge; Chief Strategy Officer, Mr. Jung; Chief Scientist Officer by Biologis, Dr. Tan; Chief Scientific Officer, for Small Molecule, Dr. Yu; Chief Medical Officer, Dr. Jin; Chief Commercial Officer, Mr. Jin; Chief Officer for Distribution Management and Market Access, Mr. Chen; VP, for small molecule R&D, Dr. Song; and myself, CFO, Zhou. So I'm going to pass on to the CEO, Mr. Ge, for the presentation. Over to you, Mr. Ge.

[Interpreted] Thank you the investors, analysts, good evening. Good morning. Thank you so much for taking the time for this call with Kelun Biotech. So, the presentation will contain 4 parts. We'll start with myself, covering the business overview and the business highlight. And the second part will be covered by Mr. Zhang for the commercialization and CMO will take you through the pipeline review. And then finally, CFO, Mr. Zhou will cover the financial performance. So let me start with the first part. Colombia is a company that's dedicated to R&D, manufacturing and colocalization of oncology, immunology and metabolic diseases. You know the company very well. So the company has been established for over 10 years. the real differentiation, our technical platform and pipeline, we're becoming a leader in the innovative drug industry of China. The core of our R&D is the OTC, which is the antibody conjugate the technical platform. And also Merck and Kelun Pharma are the two largest shareholders, and this reason we are getting the resources from the top players from China and the U.S. to drive the company forward. We have over 30 R&D projects, including 4 products that have been launched in the market with 8 indications. The one in NDA and plus project in clinical development stages. So we expect in 2026, this year, more product will be approved in China with more indications expanded. So a company as of December 2025, as you can see, we have a head count of over 2,000 people. As you can see, the main changes is that we now have a commercialization team with nearly 600 people who are responsible for their marketing and sales promotion in China. So now I'm going to talk about the pipeline for the company. As you can see, starting from the lab. We have 4 launched products and on NBA. Among the launch products, the TROP2 ADC, we got our first location in end of 2024 for approval negative breast cancer in the late line equipment. And then in 2025, we had several indications, which is including in the second line and third line for each of mutated non-small cell lung cancer, which is really the first TROP2-ADC approved for Lantana worldwide? And also, we also have approval for second line above for is still a positive HER2-negative breast sensor. And last year, the HTC which is the trastuzumab betting, which also improved in China October last year, making the first master for her to pass breast cancer. Additionally, we have two more products, namely cistuzumab for RAS [indiscernible] cancer, [indiscernible] and as well as PD-1 drug for nasopharyngeal cancer as a third line, the first-line treatment approved last year and showing the table on the right, in vision to trastuzumab in traction. We have also other ADC projects in different stages and new conjugate drugs, differentiated targets and design the linkers and new drug payload structure, including our ADC for specific antibody SAG571 and the first [indiscernible] drug SAG-107, which enter clinical stages. At the same time, SKP-575, which is which is really the first TSLP with bispecific with targets undisclosed, but it's already in clinical stages. So this is the pipeline. Moving on. Colon Biotech value a lot on international collaboration, partnership and cooperation. This is really where the best way to promote our pipeline to the work market, achieving maximization of the value of the pipeline, the maximization value of the company. As last year, we've been working with [indiscernible] we signed multiple licensing out agreements for cellular and genetic therapy. You can see our partners have started 17 global Phase III clinical trials in '25 for lung cancer, 4 for breast cancer, 6 for oncological eutology one for gastric cancer, one for under oncology covering all the way from second line, third line to first line even adjuvant new adjuvant therapy last December. We partner with Crespo for common commercialization efforts, including SKD 105, which is IGBT6ADC and CR201, which is the PD-L1 bispecific antibody. So that's where we are forming a new collaboration on the treatment of oncology. So this is showing on what we have done in 2025 as well as year-to-date. So I can see other than the approval of the products, let me talk about the chemical progress. And then Dr. Ding is going to give you a bit more detail. I'm just going through some highlights. First of all, in terms of production in 2025, the company has expanded our capacity for ADC. The ADC capacity expansion is to secure the market supply for 10-plus clinical trials and 4 commercialized products. At the same time, the HER2 ADC also was qualified for cross-provincial pilot production in China. Make sure we're going to have rapid approval and launch of a cell. In terms of commercialization in 2025, we are really starting as the first year of complete commercialization in the first half the 3 approved products are all successfully included in the national reimbursement catalog NRDL. And also, we have a commercialization team marketing team with over 600 people, including marketing, make affair strategy, excellence in operation, model departments and as well as the market compliances. So the commercialization team is now covering over 300 cities in China with 1,200 medical institutions, providing excellent new choice of treatment for patients. And also, Mr. Ding Nan Chao and Mr. Chen will elaborate further. Internal capital market, we have share placement in 2025 with the raising USD 250 million at the same time. Our stock is also included into the MSCI Global Standard Index and FTSE Global Store Index and Hang Seng Index and other indexes. So in terms of capital financial market, that will be further covered by our CFO, Mr. Zhou. And now this is some of the cooperation that collaborated publication 0.25. You can 2025, we have published pivotal studies in multiple academic congresses and clinical data readout for Phase II and Phase I study and also publication in Renan international journals, particularly two important bockbuster study, the OTC 4 study, which is the study for second-line EGFR-mutated non-small cell lung cancer, which is subject to an oral presentation and Atmo presidential Forum same time. At the same day exactly, it was also published on New England Journal of Medicine. So these are some of the achievement of key refrigeration pipeline, we're going to elaborate a bit further. Now this slide is going to talk about the strategy for R&D. As mentioned, we now already have over a decade experience in terms of -- so with this, we're going to name our platform, OPTIC, which is the optimal drop conjugate. So for every candidate, we're going to design and customize the design with specific target and mode of action with the best payload and best linker strategy. To strike the balance in terms of efficacy and safety with our experience and know-how, we are really using a multipronged strategy to drive the optic platform. For example, in a fuse of oncology, our ADC is usually thought to be the replacement of the conventional chemotherapy. So we are now developing new targets with the bispecific structures. And the payload is also expanded to the common topoisomerase inhibitor and microtuble inhibitor when developing some biopic antibody drugs in the payloads. At the same time, we are exploring some nontoxic drug conjugates, such as radionucleotide proteasomes on some molecule for tumor immunotherapy as [indiscernible]. Later on, we share some of the project, which has entered clinical stages. In the additional oncology, we also have non-oncology ADC for all the immune disease and metabolic diseases with a new type of targeting mechanism combining chemical drug with a small molecule to bring better safety and efficacy for disease in chronic disease as I'm going to talk about ADC and also the including the subsequent integrated development strategy. When we are deploying ADC product, we've been really reaching strategic collaboration with our partners because in terms of ADC and RO, we want to put them into combination as important direction for future development, for example, in recent in 2026. The first ADCs in the first line application, the data has been read out. So -- and also, we have already submitted PMDA, and we achieved the primary endpoint, which is PFS in treatment of small cell lung cancer. And also, we have observed a beneficial trend of OS at the same time, there are some other ongoing study, for example, 2, 6, 4 with pembrolizumab. So right now, in a there are 9 global registration study for PD-L1 for the first-line non-smart lung cancer and also the combination therapy with Merck with MSD. In terms of lung cancer, breast cancer and easy, we are also working on other partners by present bio with a PD-L1 VF, which is bispec bispecific. We will continue to develop our ADC together to be used with bispec. So the combination use is really something we want to promote further. In SKP-19A, which is the PD-1 antibody, this is going to be another case of combination with many ADC in our portfolio. So other than the combination strategy, we're exploring the strategy of integration, which means we have actually two projects where we have already 5 RMB. For example, SKP-103, which is bps, which is use target, TA plus RO. So we have precision on target activation as well as the antitumor activity. So it's a due target for both oncology and immunity. At the same time, we also have the [indiscernible] ADC with one toxin with one immune agonist. So this is another key project this year as well. So before I close my part I'd like to really summarize a little bit here. In terms of the development outlook for the company, and I'll let also talk about our overall strategy. Our main goal is the continued advance our differentiated pipeline. And also clinically speaking, we want to address some of the unmet needs in the clinical setting. At the same time, we're also going to optimize and innovate our ADC platform and also further expand our new type of payload, new linkers, new ADC and also to expand our antibody conjugate technology to non-oncology diseases. And the third key point is expand commercial partnership from R&D to production to clinical and commercialization. This is really to build our capability throughout the chain and also through our global partnership, we want to expand our business footprint to develop and register a commercial lines outside China. Now okay, Mr. Ding will cover our commercialization.

[Interpreted] Okay. I'm going to take over on commercialization presentation as of 2025 at the end of last year. Kelun Biotech will have 4 product multiple indication officially entering the stage of commercialization. In 2025, the commercial team is working on brand building, team building and also medication introduction and business expansion, channel expansion. So all around expection to deploy the business and also build foundation for rapid ramp-up after the MDR listing. So in the first year, we -- this is the first year we have the non-NIR promotion as of now. We have completely listing in all the provinces of China covering 300 cities, 1,200 hoods. We are now having some positive prescription. At the same time, we cover 10,000 doctors and specialists. And in 2025, we have over 1,200 academic meetings of various types for different mega institutions, large and small, different conferences, meetings and also we published over hundreds of medical publications in professional media. And also in academic meeting, we have received high recognition from international and domestic. But so -- and our product in 2025 has been actually enrolled in multiple domestic guidelines into CISO, ACA and also other than market promotion, importantly, we want to continue to complete our team build up focus on. This is made buildup of the commercial team. We want to build a team that can really thrive in a new competitive landscape and compliance landscape. In 2025, we further refined our medical and marketing department in the future, female-oriented kind of college and oncology will be a team. Another team will be focused on lung cancer. And also, we're going to reinforce our compliance and operation. In the second half, we have recruited more people. In the last 2 quarters, we are now expanding the team member head count to over 500 on the ground. So in total, the general commercial team is close to 650. So with more with more indications being approved, we continue to -- and also with the 166 to be launched soon, we are now covering the market. Now we are actually looking at even more detailed layout. For example, in the second line non-small cell lung cancer and also the ER-positive ADC. We really want our team to focus on promotion on final details, and this year, we are valuing a lot in the second-line lung cancer and ER-positive ADC and the 2026 deal listing. We want to prepare for the expansion. We expect by the end of the team, the team will be exceeding 800. So Mr. Chen, over to you.

[Interpreted] Good evening. So in 2025, actually, for the whole company. I would say, other than the achievement in commercialization, I think many investors and analysts, including our company, what we hear the most is about the national negotiations. Well, we are proud to say that actually our 3 products and 4 indications have already been included into the medical insurance coverage in 2025, 3 products have been listing for the entire country, which is a great foundation for the hospital assets to come. Now at this stage, we are really driving full force in 166 for the national listing. Of course, in 2025. This is still out of the pocket for innovative payment system and also inclusive insurance in different provinces. We're also doing a lot of those. So we are covered by the inclusive insurance for more than 50 cities and also including 4 key provinces. So some of you might be noticing by the second-line lung cancer, where they're still out of market payments -- and -- but you are also watching -- we are watching -- focusing a lot on the inclusion in inclusive insurance in different locations for second-line lung cancer. So like cities in Beijing and Hangzhou at the end of last year, actually, the inclusive insurance has already been covering this. So there's market assets in terms of channel. Actually, we are really building a lot of national channels like [indiscernible] farm, Shanghai farm and also China resources as core distributors. The core distributor accounts for 90% of our business. At the same time, we deploy over 400 professional pharmacies footprints. Those pharmacies are really due channel pharmacies laying a good foundation for the medical insurance lending this year. And after implementation in January this year, we added another 200 professional pharmacies. So the coverage is making more accessible to the patients. And now as you can see, we have a new product, which is the Luka -- so well, actually, we have this new product because we -- this is a new product. So we focus on the retail management and 400 professional pharmacies. We're actually training 10,000 professor pharmacies that can serve our patients better. So some of the presentation on the commercial and collaboration last year. So now clinical pipeline, Dr. [ Jingbo ].

Good evening, and good afternoon, dear investors. I will take a few minutes to talk about our product pipeline. Our CEO already covered this, like end of 2024. In a year or 2, we already have 4 drugs that are launched with 8 indications, including one NDA. The NDA pipeline is for RAS fusion. So which is now being reviewed. Hopefully, we can get approval in the first half of this year. We are really looking forward to it. And also, our partner, LX they're also engaging Phase II study worldwide. We also hope the drug can be launched over seats. So for Phase III projects actually in this year's ASCO is reported that the our ADC combined with immunotherapy, there have been data, PFS is close to 6 months. That's amazing data. And also, we have multiple Phase III study with 264 combined with pemblilizumab in patients with PD-L1 positive patients. So that research is also getting positive results. And recently, we're also communicating with the regulator. Hopefully, we can deliver and submit NDA soon and this is now being receiving the destination of breakthrough therapy. We hope being designated as breakthrough therapy, we can have prioritization in review. And also in PD-L1 negative patients, we also have a Phase III study, we are enrolling patients. And also in 264 for each of our mutated population, Actually, we already got approval. So actually, for Phase II and Phase III, a lot of clinical data is actually showing the results. So probably, we expect good synergies in combination. So Phase III in July and August, we already completed recruitment. We are now actively following the patient up. So hopefully, we can submit NDA this year. So in breast cancer, ESMO in ESMO, we reported that 264 in the first line, we have amazing data for breast cancer. PFS is 13 months already. So now having a Phase III study in the first-line triple-negative breast cancer and we have completed enrollment. And also for another subtype, which is ER-positive negative breast cancer, CDK4/6 who failed CDK4/6 treatment. We are already engaging a large Phase III clinical study and also multiple pipeline has now moved from Phase I to Phase II. So there's one bispecific, which is 571, which is a blockbuster for us. This is now moving to Phase II on multiple indications. We have multiple Phase II studies. In the future, we also have a lot of plans for Phase II studies regarding that target. As I mentioned, many of the ADC pipeline is now exploring adding the ADC on top of immunotherapy for fusion applications. In the future, we also expect a Phase II study, combining PD-L1 and also bispecific application. And also, there's another 15 18. We're expecting a bispecific ADC to be expanded in multiple Phase II on multiple indications. So now when it comes to Phase I program compared with last year, we also have many pipelines that moving into clinical Phase I. So SKG 107 this is actually for advanced solid tumor for oleo metastases. So this actually, we are now in a stage of dose expansion. Hopefully, we can actually compare with multiple other study to compare with other treatments for oligometastasis. So SK3105, this is really at ADC. So taking RGB6.And also actually, we have actually [indiscernible] we are really looking for this drug to be used in combination with a bispecific PD-L1 for lung cancer, handing cancer, another indication. And also, SK G1, which is also a bispecific with PD-L1. So this is -- we hope this is really could be combined with our own very ADC pipeline. So we look forward to SKP-105 and also TROP2. So maybe these can be forming some sort of combo ADC plus IO 2.0. 575 million which is IKG 575, which is -- this is a non-oncology drug in clinical phase. As I mentioned, [indiscernible] is just a 37A, which is TGF-betantibody. But this 575, this is actually based on this targeting TGF-beta another type 2 inflammatory factor combined into a bispecific antibody, Currently, the first indication is dermatitis of course, in the future, it might be used for ASM, UPD and others will be expanded indications further. As mentioned, the CEO mentioned that we already submitted 2 IND applications, which are also from ADC, monoclonal antibody ADC to buy specific antibody to including the SKV-103, I mentioned before, we just submitted NDA application and looking forward to the approval soon, which is a bispecific ADC targeting the combination of TA tumor antigen and PD-L1. And also there's SKV 565, which actually do payload, do payloads composed of cytotoxin and agonist. So we can see our pipeline from monochronal ADC, which is now entering the stage of bispecific due payload ADC. Of course, we are looking forward to the future of this bispecific due payload ADC, and advancement of the two approval. On the next page, our CEO mentioned just now from the customer side, we are really super diging. We have 9 items in the third phase, including those proof for testing and dose has been just started. Most of the multiple first Phase III study that have been completed and now in a stage of follow-up we need to mention that this year for -- we -- for the ADC, we are laying out a Phase II on the new adjuvant in TM because in CMP, we have really a lot of experience in combination for second Phase I. So we hope to move from second line to second line. Third line moving to second line and moving to first line and even we can adopt the drug in a new ad-driven therapy for some lung cancer with new rare mutations. For MSMC actually conducting multiple Phase III study worldwide, MSG's strategy will be starting to focus on some differentiated indications, including gynecology tumor, you can see 6 items in gyne tumors. And also this is really for first line and also moving the second line and later line for ovarian, cervical and also the uterus. And also in breast cancer, there's a some differentiation mostly on the early stage like the adjuvant third line, fifth line and also some of the new adjuvant with some Phase III study. As mentioned, MSC just they are deploying the drug approval like ASCO GU, we published the Keytruda combination on TMT. The data has been really amazing. PFS close to 12 months. As a result, MSD is engaging a phase study for the second line. And also, we mentioned like this year in ASCO and ESMO gradually, we'll be reporting the data readout from large Phase III clinical study. As you can see, for second-line each mutated second-line TKI, particularly non-small cell lung cancer arc-resistant of TKI in the second line. and also non-small cell lung cancer, after TKI artechemotherapy in the third line and also for the later line data readout. Actually, from this capture micrograph, you can see -- you see a lot of OS data are really amazing. A lot of OS benefits are really good. And particularly, you can see the capture micrograph long-term OS seem to have a long tail effect. So this is really similar to PD-1 kind of tailing effect. So whether the AGF to control or BTC or some other breast cancer, there are some hypothesis. Actually, we are testing the hypothesis. Maybe they have a potential for immunity. So perhaps particularly for triple-negative breast cancer or the normal lung cancer I think in March and end of this month, the LCC congress in Europe will be announced in the final OS result. The OS is now close to 20 months for a patient after TKI resistance, chemo resistance with each other mutations. But still, after the resistant OS can still be that high, it's really worth waiting. And also the 166 for small cell lung cancer. Right now, in small cell lung cancer competition is quite intense. So the 166 is differentiated with some other pipelines because our toxins. The top sense is the only 1 that is -- that is targeting the microtube, MAF. So this is a different payload. It's different toxin. The link design is also different. So you can see the safety spectrum compared with many other pipelines, we are very different. So the -- we have very low incidence of industrial lung disease, for example, a very mild hematological toxicity, mild GI toxicity. And in terms of efficacy, you can see in the Kaplan-Meier curve, you can see the hazard ratio, 0.39%. So particularly a different study and different drug, there is some difference in absolute PFS because we are enrolling different populations with different history and different lines of treatment. So actually, the mean PFS could be different, but hazard ratio is something we can compare with different drug across tumor studies because our drug is for second line and above, has a ratio of 0.39. So if it's only second-line hazard ratio will be even smaller. And also there's compared with TTM, there's significant benefits including the ORR as high as 87%. So this is really differentiated for HER2-positive breast cancer.

Okay. For my report today, I'm going to talk about the financial performance this year. First of all, the revenue and margin. In full year 2025, the company revenue was 2.06 billion Including the revenue with the external partnership, cooperation and R&D-related revenue totaled 1.52 billion. So the commercialized revenue was 540 million. So total revenue increased by 6.5% compared with last year. I have to make a note here. the commercialized revenue on accounting statement, as per requirement of accounting rules, we need to deduct the inventory for the end of the year because reduction is related to the NRDL price adjustment, which means if you look at the price for the NRDL deduction, the revenue will definitely be higher than the number reported on the statement. And also, the second half revenue definitely was better than the first half. And secondly, the GP margin gross margin, $1.47 billion compared with previous year, increased by 16.1%. The growth was actually higher than the revenue growth which benefit the change of the income mix. As I mentioned last year, in our income based commercialization revenue was much higher than the previous year. And the commercialization revenue really benefit from our cost advantage because of the cost advantage for the drug, the commercializations, GM that's operated by ourselves, the gross margin will be higher than the gross margin with our co cooperation, our co development. So therefore, the gross margin will be trending higher than revenue. So GM was moving faster than the top line. And the loss wise, the total loss was 380 million, which is indeed slightly higher than the previous year. The higher -- well, the increase is actually related to the financial structure because we have commercialization activity, there was expenses for marketing and sales, particularly this was the first year of commercialization. In the first few years of the launch of innovative drug sales expenditure were usually higher. So in terms of the profit contribution from commercialization, of course, the contribution was not as great as the profit contribution from external corporation. So even though our top line was higher compared to the previous year, the loss is actually higher. But deducting -- well, adopting the stock incentive options for employees, which is not operational factor, so the loss will be JPY 210 million. Now this is the breakdown of the cost expenses. First of all, the operating costs, as I mentioned. Operating cost was 580 million, the main component is because of the corporation, the external cooperation, the investment in R&D, the personnel salary and also the clinical trial expenditure. This is the absolute majority of the operating costs. However, for the commercialized drug, the corresponding production cost is also included into our operating costs. But because our production and CMC process are very advantageous. So correspondingly, our commercialized product and corresponding production costs are relatively small in absolute amount. So in terms of composition, the composition operating cost is mainly brought about by our investment in collaborative R&D. Regarding our R&D expenditure, last year, it was 1.32 billion, increased by 9.4% compared with previous year. Over the last 3 years, the trend of R&D expenditure is relatively stable, quite stable, I would say. A slight increase, which is in line with the expansion of our business scale. Administration expenses, also the same. Last year, demonstrated expenses of 180 million, increased by 8.6% and slight increase. Finally, sales and distribution expenses amounting to 475 million. Compared with the previous year, it was up by 160% as mentioned since last year was the first year. commercialization. We saw a significant increase in commercial revenue, correspondingly marketing in early stage for investment in personnel, other conferences, marketing activity that also require investment to support the growth of commercial revenue. Therefore, the sales and distribution expenses last year show a relatively large increase Next, the final part of finance presentation about the performance of assets and liabilities. By the end of last year, our total assets were close to 6 billion compared with previous year. It increased by 40%. So in the past few years, our assets has been increasing every year and among which the largest component is cash and financial assets. Last year, cash and financial assets reached 4.6 billion. The financial assets mainly includes bank wealth management products, which are also liquid resources that we can use flexibly Therefore, the company's cash reserve are really abundant and the growth of the cash assessment due to Hong Kong placement in June last year, we had about USD 250 million of funding -- financing through that placement at the same time, the beginning of the end of last year or so signed two new BD transactions and the corresponding down payment will also have a positive impact on our cash position. And also, the scale of assets, including the cat reserve has increased significantly compared with were before. On the liability side, end of last year, total liability were 1.12 billion compared with SSI, the debt-to-asset ratio is very healthy. The liability mainly include account payable and trade items as well as contract liability, which reflect our financial performance. So now we move on to question and answers. We are grateful for some analysts who actually make the way to come to our meeting room. [Operator Instructions].

[Interpreted]. Thank you Mr. [indiscernible]. Two important questions. Well, the first is for Dr. Jin. this year, we care a lot about the first-line lung cancer TPS greater than less than remember, 05 and 06 two came [indiscernible] and also the readout of the first line TMB. So I'd like to really just confirm when the date will be -- when will this data be available? And when this data available? And the second question is more important in improved case. Like we already -- like EPS greater on PD-L1 passive clinical, we already read out the data. And how do you view the 2 data readout because for some ongoing global Phase III study for first-line lung cancer. How do you interpret the outcome and impact and the 007 that they developed, which is also PFS above 15%. There's another file or famous cell carcinoma, first-line maintenance therapy 023. So how would the 2 data readout read across I mean their design are really different. And Dr. Ding, you just talked about you have one that is actually in combination of simetinib. So I wonder whether there will be read out this year. That will be my first question. As Mr. Zhou mentioned, the commercialization achieved a revenue of 140 million this last year. Of course, that includes the price adjustment with the RDL insurance coverage. So first of all, I want to understand the price adjustment. If you restore the price adjustment, what will be the number be before the price adjustment. And also end of the year, there's a target of 800 million to 1 billion target, if there's a gap. What's the reason causing the gap to the beginning year beginning guidance I would understand it. The current environment, particularly after the medical insurance inclusion. So how much is going to be the revenue from licensing I wanted to understand the amount of licensing and how much of the expense in R&D.

Okay. Thank you for the question. I will refer the first question to Dr. Ding. Secondly, regarding the sales and the sales outlook this year and messaging and also licensing revenue mix. Dr. Ding will start first.

Those are some interesting questions. You can see as of now second line, third line and even first line. We're moving to first line, which is a big population. We already -- for CNG [indiscernible] PFS OS or already. We are looking forward in -- to release Q4 this year on ASCO meeting, we might release the data demand for CNG inactive patient, it could be for end of Phase I for MSD is mainly because of standard of care Chinese SoC station from global SoC. So actually, MSC have a Phase III study with TTS above 50. So they didn't have enrollment for patients with TPS before below 50. Maybe it's not convenient for them. And also we already have 2 large Phase III studies. So maybe they're waiting for our data readout for the Phase III study. And secondly, you can see [indiscernible] this year we might be reading now. The MSE might be reading out the VAR data. Maybe that could be a combination of possibility. So each of our mutation. We talk about moving into first line, top to ADC, there came some synergies with 264. There's a great synergy with -- so we can actually enhance super -- the over expression. So this will be the best partner for the second line. So in the future, we can see June last year, we actually completed enrollment. We have been waiting for the follow-up data. If the data is not available, I mean, it could be a good thing because with last follow-up data, it might be difficult to predict because we're going to have a very long PFS with the combination of chemotherapy, we gently will be better than the moon -- as I mentioned, we were talking about the primary endpoint for the second Phase II. So hopefully, we are looking at a data readout in next year's ASCO.

Okay. Regarding commercialization, in 2025 the tops, the TMC, the '26 for has already out of pocket. So there's some concern when payment is out of pocket. So we focus on -- so in that year, we'll focus on the brand building. But actually, we're already seeing excellent data even this pay out bucke. So with that great coat great achievement will limited accessibility. So in 2025, we've been focusing on meeting the unmet need, unmet clinical needs. We focus on our data superiority to support out-of-pocket pricing. So the actual actions, we have driven both by the hospital procurement and BTP pharmacy. So Mr. Chen talked about, we have a lot of GDP pharmacies, which reaches a pathway for clinical application for the nongenetic drugs in China. At the same time, the full year, our pricing strategy is related to patient but also related to the strategy for the medical insurance. So in our pricing strategy, we also have a patient program, patient care program, we have made adjustment to the patient program in the execution last year to make it more accessible to patients but also lowering the threat hold of accessibility. So -- and also, we have done a lot of online and off-line commercial academic meetings with high-level KOL and department coverage to introduce our product philosophy. And also in the first year, ADC use in China for breast cancer, we actually have some experience. But for lung cancer, we were lead the first in China. We are the first trial lung cancer introduction in China. So we need to really deal with the communication of AE building up the protocol of the ADC adoption. And so -- so we are really leading the world, leaving China leading word in this ADC. So we've done a lot and also in 2026, what is the plan? Well, definitely, we are doubling the business in the future. In terms of strategic, we actually have 4 important things to do, like two drugs that have been enrolled in NIBL to have not. So how do we position them. So in the second-tier TNC, we definitely want to establish the preferred choice in domestic TC in the second-tier cities, we must obtain the absolute leading position -- leading market share in the market. And secondly, and the HR positive breast cancer, which we just -- which we have just launched. Our first goal is to establish a preferred plan of endocrine failure and chemotherapy failure. We know though we have competitors, our characteristics are really [indiscernible]. I think our strategy is that no matter what the situation the HER2 expression is will win the market. And through the introduction of the concept, we'll lay the solid financial of the rapid development of indication. In terms of Phase III, which would account for a big part of our current sales. Our goal in this regard is definitely define our TGI patients. And also in the second line, even though for -- we have AKI 23 and also 410 and those are NRDL. But we do have our data advantage. We have better data, we have better compliance, we have better safety -- so we are going to promote our advantage through academic promotion. So next year, once our indication was covered by NRDL, the entire GFR mutated second line will be the preferred drug. So by our planning, the NRDL revenue will account for 80% for our revenue. And this year, we have several data readouts like [indiscernible] and also the non-small cell lung cancer and GI and also we're going to explore more oncology. Okay. Any more questions? I think there's a question other people interested. So we talk about -- so in terms of commercialization, the result has been in line with our expectation. Of course, this is really the beginning, the first year of commercialization, particularly when we make sure we connect the last mile, is really from 0 to 1 is really starting -- it takes progress. Take a process for us to build a team and allow the team to assess the market. So over speaking, our parent company has been providing commercialization resources and support. So in the past year, our sales has been growing very positively, including hospital listing, hospital assets the pharmacy expansion, the pharmacy coverage and the product commercial sales, I think we are seeing a growth trajectory. At the same time, this year -- well, last year, we have 3 products that are enrolled in NRDL and the medical insurance negotiation have been quite successful. You can see the price we get quite good -- and for this year, in terms of commercialization, we are very confident for this year's commercialization, as Mr. Ding said, definitely will be double compared to last year.

Zhou, just one more thing. But most important this year, after a large-scale kind of work, we're going to focus on small-scale development. I think we Well, because in the -- clearly, in China, we have two sessions talking about the support for innovation. We clearly feel that. Now that we are covered by NRPL, in less than the quarter, less than a quarter, 10 top 200 and top 300 hospitals, we are doing very well in the listing in the top hospitals. So as long as they have the pharmacy meeting, our listing will be completed once they have the pharmacy conference discussing including our drugs.

Yes. Thank you, Mr.Zhou and Mr. Ding. And he wants to talked about the -- after the licensing revenue, how much was related to the R&D reimbursement? But there's a trick here because in terms of the co-development reimbursement is accounted as revenue and cost at the same time. They are not exactly corresponding because the reimbursement has its own logic, maybe it can be based on cost, but it can also be used as a reference, as I mentioned, in our revenue, a lot of revenue actually is coming from cooperation and development, you guys in the number. So the cost and revenue is a great reference, but they are not exactly 1:1 ratio, okay? Now this is hanging. So I'd like to talk about commercialization. Now that you have a team of commercialization operating, now you should invest more in R&D and more resources. So my question is I feel like breast cancer and lung cancer team, how would you address the staffing for the breast cancer team along cancer team. And also the second question is like the -- looking at the overseas market launch, what are the indication. Hopefully, we can see some overseas data in this year. Okay. First, on breast cancer commercialization staffing and MSD is the overseas expectation. Dr. Jin, maybe you can cover the question?

In terms of indication, and indeed, we have a lot more breast cancer. Lung cancer has a lot of population. So we definitely will have more team members for lung cancer commercial team. So -- and also in terms of ratio, lung cancer will be more than breast cancer. In terms of development, in all the top hospitals in the country, we started from the first line post we separate the team working on lung cancer and breast cancer. But because in China, there are so many number of hospitals you mentioned, we cover 1,200 hospitals in non-RBL provinces. And this year, we're going to double the coverage with NRDL inclusion. So we're going to cover all the tertiary hospitals from conventional municipal and country level. So we still want to bundle some of the team in some of the hospitals, but we're going to separate breast cancer, lung cancer for key hospital key provinces in key cities.

Yes. Thank you. When I come to the actually, we -- for indication, I think we're looking forward to the indication approval this year. Many strategy is to be combined with pembrolizumab in the first line, even earlier for new adjuvant therapy. But it will take some time because it will take time for enrollment to follow up -- but the first indication should be under midterm carcinoma.

Okay. This is [indiscernible]. Thank you for having me. My first question for Mr. Ding about sales. I mean the 3 products are now listed for NRDL. This year, you want to double the cell for 264. But what about sales guideline -- guidance for 14166 or 167. Second question, Dr. Ding talked about the PFS data for PD-L1 positive patient to be read out in ESMO and the negative patient is also ESMO. So Dr. Ding other than ASCO and ESMO, what other data could be read out this year. And also Mr. Zhou, can you talk about the revenue from MSD if there is a potential DLA, what is the potential milestone payment from MSG?

Okay. Firstly, from other than 264, what about other sales guideline for other drugs? And also ASCO, ESMO, what about other data readouts in a few products that are now cover 140, we have good progress and good opportunity because this is the first in world had to had study with original drug. So we're different from an one from China. And also our product safety and efficacy has been well received by the market. And also, we also have a benefit in some of the pricing or channel compared with the original. So -- and also, this is a very mature product. So we can actually ramp up really quickly after hospital listing. So this 140, 140. For 166, I think this is still -- it is still a non NRDL and also you can see the respiratory medicine is a crowded space. So we want to price ourselves differently. The 166 -- I mean we are outstanding in terms of HR, AE, toxicity, but we want to differentiate versus 215. And also next year, we want to really just pay the groundwork. Once we got NRDL, definitely, we want to have more synergy with ADC. It doesn't have to be used after 821. We can actually use it before after. So now for the drug 117, indeed, there's a lot of product of immunity immunology in China. After NRDL inclusion, we want to explore combination therapy.

Thank you for the data. ESMO is a bit early. As we in October, we are still planning on this. So there are a few things A lot of -- we still have a lot to do, for example, for Phase III. I think when the plan mature, we're going to read out the data. This is one thing we're still planning. Of course, that depends on the progress in the Phase III study. And as mentioned, for PD-L1 negative we expect to announce the results at Item meeting, including the first-line TMB, we need to see the time line there because a lot -- we still need to weigh the result that we're waiting for the result. For ASCO, now maybe results coming out by the end of March, perhaps the abstract may not be released yet. So in addition to the PDA online meeting, we have our 500 pipelines. So some of the pipeline we might want to go to Phase III or maybe we'll come up with a readout Phase II data, we presented on ASCO, but it depends on whether we can -- that can become concluded before -- as -- in terms of milestone this year, we have some R&D collaborative income. We explained that this revenue on the book is not one-to-one correspondent to the receiving the receiving of the payment because there is some. In terms of accounting treatment, there are -- it could be stagger because the requirement of accounting principle for installment recognition according to the standards. But precisely because the pipeline, the triggering some milestones. And it's all going to be stagger. So therefore, you can see the statement in the past 3 years in terms of recognition of revenue from corporation is very stable, high stable over the last 3 years. And this year, we're going to have some more pipeline to trigger a milestone payment, and they will be recognized accordingly based on the accounting principles. For 264, you mentioned 264, we just talked about -- there's upstream with a milestone, total amount is USD 1.5 billion. And we have been disclosing the payment received Up to now, actually, we are receiving about USD 200 million to USD 300 million so far if you don't account for the reimbursement, right? So actually, the majority will be received in the future, as Dr. Ding mentioned, Particularly, you talk about the voucher. And so after it was approved to be listening in the U.S., it will trigger several income development milestone. And also the second commercial milestone when you get to sort of commercial sales, it's by different ingredients, right? So [indiscernible] followed by commercial milestone. And thirdly, sales royalty is really a royalty sales commission, a certain percentage will be taken from every panels, and this percentage is also tiered, which is segmented by different stages the high income, the high percentage of the commission we got. So we have made announcement -- make a disclosure of this before. Overall speaking, the corporation income will be contributing greater and greater contribution as the pipeline become more mature as our cooperation making more contribution.

Okay. First of all, congratulations. I'm very happy to see we have more Phase I, Phase II more on the pipeline confirmations. So my question is, in [indiscernible] Phase II and even earlier pipelines, what are more priorities? What are the high priorities I mean, is it bispecific ADC or non-oncology? My second question is about the PD-L1 monoclonal antibodies because you can see -- now you have PD-L1 EGF EGF. Now you can see people really like the combo, PD-L1 in the other -- so -- and also with such a second-generation bispecific like second generate IO plus ADC. Now in the future, we might have second-generation IO with ADC. This is really a special combo PD-L1 GFR, combined with your IO. So the data in China, I mean, this is quite specific PD-L1 and the data in ADC, particularly from China, how would MMC interpret your data for you? What is the impact from license now some of the DC assets.

Thank you for the question. First of all, the asset priorities for Phase I, Phase II early assets, Dr. Ding, maybe you can take this. And Mr. Zhou, you can talk about strategy. Secondly, you talk about if we have some Chinese data for bispecific, which is comparable with the ABC, how would it help us what MMC look at our data.

Well, you talked about earlier pipelines. It's difficult to say any priority because -- this pipeline, they are not targeting the same target. It's not like we have a model pipeline for the same target. You can see even though we have bispecific ADC, but they are actually different. Some are TA, like tumor antigen like 571, they are really addressing different targets for different tumor antigens. You can see the 103, which is the TA and PD-L1 bispecific is actually targeting the tumor antigens combined with no PD-L1. So actually, we hope the bispecific, they can enrich the tumor market environment, enhancing, improving the tumor environment. And then we talk about bispecific. It's actually bispecific is agonist plus cytotoxin. So every pipeline is different. Every pipeline is dealing with a different question, a different clinical problem, different settings, different scenario. It's difficult to say which one is more care more priority. You can see our important pipeline we have TSLP bispecific and also TGF-beta antibody, we -- our half line is actually 60-plus days. So then you can have a dosing every 6 months. So with TSLP in combination, it can actually have great synergies. In fact, in terms of efficacy, it will be better than PD-L1. So it's difficult to say which pipeline will be more prioritized. We want to drive them together, either they are best-in-class or first-in-class. So we want to be more flexible, maybe more flexible combination with ADC.

Okay. The second question relate to PD-L1 for ADC, I mean, you're doing clinical in China, you are thinking about implications for global implications. I don't think I need to answer the question because a global MMC, they are more and more receptive or the early data from China. You guys say MSD. MSD, they have 17 clinical study -- clinical 17 Phase III trials, I mean they don't have their early data anymore. I mean, whether it's gynecology, urology, lung cancer, they are doing Phase III studies. They don't have early data already. They use our early data. They use our early clinical data you can gradually in the go, which is gynecology Congress and the reporting data. The data reported actually all coming from us from our Phase II data. This is helping the global study, including MSD. MSD they are doing a study like ADC trial which is combined with Canada. Many -- actually, they are doing Phase III study, but actually many data must data are actually coming from China. So I think that's the question. is like people are now getting used to Chinese early-stage data because we have patient resources in China. We have the advantage of doing clinical trials in China. We have great investigators in China, many investigators in China international. So MMC are happy to take Chinese data. Of course, we also won the MMC to do global Phase III study.

Well, actually, I didn't make myself clear. I want to clarify my question. I mean for every PD-L1 GFR, I mean I repeat Fare different. You are getting a very new molecule. So you actually have the new data in China. How would this Chinese data help the MMC to believe that your ADC in a combo I mean, how would they be compelled to use our ABC and a combo with their molecules? I mean if they're using their own drug and the combo produce the same result.

Okay. Yes, that's a great question. You can see the 11a molecular structure because what's the purpose. We're interested to get -- we're interested in this molecule based on -- the reason the MMC interested to buying the molecule because this is very similar to their molecule, but I believe in this table structure, which is based on PDP, our molecule is very common to this common one. So this is why we're confident that we can accelerate the development of the ADC with a flexible PDB structure. So our BDC, whether using combo with our own pipeline or with other pipeline, we are confident. But of course, we're driving a lot of our own EDC bispecifics. Hopefully, we can promote the drone development. So you have an excellent question. Not all the PD-L1, each of are the same. Of course, there are lots of differences, different design, different risks, not all the PD-L1 AGF are born are the same. Not all the are the same. The same thing, AdCare all different. So it's not possible to just copy the combination with another drug, you still have to look at the PDP structure interface.

I have a question for Mr. Zhou. Now regarding the priority of our pipeline, I think for us, indeed, you can see we are not having many pipelines. We don't have many pipelines?

Actually, as I mentioned, every pipeline initiation means to PCC or R&D, every molecule is actually looking at OPTC, We have done a lot of comparison, horizontal and vertical conversion, we have high hope for are pipeline. Of course, it's based on risk and data finally, it may not succeed. But at least in early stage, we do more work and to drive it. to make a chance to move into clinical. So every pipeline is something that we take a lot of pride in. We are very prioritizing every pipeline, we hope they can be druggable. So the second question for PD-1 PD-L1 I think it is a very hot topic, a very hot target. But can you really develop DL1 interface I mean -- and also, can you demonstrate better efficacy compared with single-target I -- right now, you don't know. You don't know where the combination is better than monotherapy is something we need to explore. But at least from right now, PD-L1 VGR in synergies with I think people really have high hope people really believe that it's going to be successful or very likely it will be successful. That combination is better than monotherapy. So how we use the data in the future? First of all, our partners. I hope our partner will use our data in combination because we only get the rise in China, they can license the right for outside China, you can use it. So we hope you have a potential value for global development. And secondly, people are also exploring which is the better PD-L1. We want to draw the conclusion, which is the better PD-L1. We have to find out by exploration. We have to explore. We hope to have more data to answer the question, which is the better PD-L1.

Thank you. Thank you for having me. A few quick questions. trying to understand your internationalization strategy I mean, many companies, large and small, they are looking outside of China. So my question is mid-to short to long term, what's your strategy for internationalization? And second question, we have a lot of AI application. In China, in the world, many company using AI. So is your company doing anything in AI?

The first question on nationalization. Mr. Ge, you can take this. The second question, the user AI, Dr. Song and also Dr. Yu, they can talk about the use of AI. Mr. Ge, can you start.

Yes. Thank you. International strategy, as I mentioned in the last slide of my powerpoint we position ourselves to be aiming or aspiring to be an international company. We have a clear pathway. First of all, we are working with MMC and Sirius of international partnership to build the international R&D and development capability. As I mentioned, in our operation, the MSD. In our cooperation, they need our early-stage clinical. Many international multicenter is done by Korea, done by us, [indiscernible] team. So they can use our team to go to FDA to register Phase III clinical trials. So we're building our team and building our capabilities.

Apologies. There are some audio issues from the conference room.

Yes, how about -- well, when it comes to AI application, I think we are not just doing it for the last 2 years. if you trace back, we've been doing this for quite a long time when AI was not so trend yet, even in red nodes, we are recruiting an experienced director to build our platform. So when AI is starting to be popular, we are already using AI application in our departments. As you know, I is mostly used in the front end of pharmaceutical R&D. And we're just gradually building the maturities. So far, whether it's a small molecule or the large molecule or translational medicine in the upstream. We are really using AI actually using AI application in terms of upstream R&D. For example, let me show you an example in small molecule platform. So now we have AI to distinguish. We're using some of the early stage AI start-ups -- we've been using their AI products. So we know some of the models that are pretty good in terms of explainability, credibility. We're building relations with some great partners already. Secondly, rather than building partnership, we have our own very own AI department. We are not just using AI model. We are building our own model. Why are we building our own model? has a lot of appetite for data. It's important to have your data from their own platform. We've been doing R&D for 10-plus years. The compounds, many biomedicine tests, a lot of data is in our database. So we have our own model, which is a great way to use our data. We're not just in the data in a small molecule R&D, but also in ADC. You can see -- you can make all kinds of linker structure. -- if you are synthesizing II molecule and you have to validate it after, since it says, it takes a lot of time. So we can use AI software for the molecular synthesis and to predict the property or the molecule is very helpful. So that is a small molecule, it's even more simple because we make a good achievement in a molecule because small molecule R&D is less difficult. And -- but it's a very significant overlap in pattern overlap. So if you only optimize the structure of a non structure, you're very likely to be hit by a patent risk. So now we have AI, we have abandoned the model. We actually start from a molecule with brand-new structures. In symbology, genotype determine phenotypes. So actually, your advantage comes from the molecular structure, so you can actually send the help from AI to R&D. Back to ADC, so many complicated linker. We have tried different linker, different combination. In the end, we have to differentiate in indications. But that is actually very helpful in translational medicine. Because by using some open source model, we're building our own very model. So our medicine is actually finding a better differentiation in a clinical indication, the clinical application so that we can meet the needs. And also in biomarker, actually, AI helps with a lot of promotion and also large molecule as well an antibody optimization bispecific, we are feeling really is not -- if we have not been using AI a few years back, we are not able to really leverage the advantage in the programs. And we are confident that the AI department with the data sharing going to really benefit from this advantage at the time that the view? Anything that you want to add to this?

Maybe just add a couple of things. I think Dr. Song has been quite comprehensive. We have our own R&D. We have our AI team, our AI department. However, we also spend a lot of effort to seek out the top AI companies externally where they are doing well in innovative AI technology. And we are building a cooperate collaborative relations with many companies. So AI is now being used in Cobalt in a few ways. First of all, AI helps to improve the quality of our projects. Right now, we have a lot of best-in-class and first-in-class efforts. Secondly, AI is helping to accelerate the progress of the projects. In these two regards, several projects have really benefited from AIs. And also -- of course, when it comes to ADC, it can help us to predict the payload link property and the drugability of small molecule and also help us with the challenge in terms of the census SAR, so all these where AI can play a role. Matthew?

Thank you. This is Matthew from -- my question is about the Phase II. [indiscernible] C10. Some time ago, MSD also have a Level 2. What is your expectation in the coming year of reoutcompared with assets compared with Astellas, how is it different from the Astellas. My second question is the thing in the pipeline has removed 269 what's the consideration.

Now first of all, thank you -- can you respond I mean regarding this question -- the first question, we licensed the global epicated MSD entirely. And secondly, the team -- because it is a small molecule? Yes. As I mentioned, we licensed to MSD. MSD is doing this global development. We started out with domestic development. But after getting the molecule, MSD might want to do some technical transfer. So it may take a bit of time Phase I, Phase II in China, and then they're going to do global trials. So it takes some time for technical transfer. But right now, it's actually going on very well. They have launched some Phase II study on multiple indications. So compared with Astellas EV. It is mainly targeting [indiscernible] the molecule similar to 264 ADC have some -- had the same payload and linker. So therefore with the success of 264, we are very confident in the molecule and also the market is very different from EV because EV is an MMAE drop AE has a lot of side effects and toxicity in dermatology, neurotox. But our molecule and the module can cross a blood brain barrier. So we have tried ADC through the 264 and the data has been amazing. So we hope in the future, we can have a good target for server cancer, breast cancer, and also compete with EV, we really have a different payload toxin, which means it's easy to break through into new indications. Now the second question on Steam, the small molecule must indicate kind of? Yes. Actually, this molecule is one that have been trying early stage. And right now, you can see Well, actually, they also removed. Someone else also removing from the pipeline. So immune agonists, everybody want to do a mea agonist. A lot of people have tried -- but a lot of them have been failure, including the small molecule immune agonists, maybe the failure comes from the lack of efficacy. And people are saying, actually whether immune agonist plus PD-L1 VK, but I think it's not able to get good results. So this is why we're not spending too much effort on this. And also 565 is they also have the new agonist as a payload. So this is where we want to focus on. with this payload, we want to improve the efficacy.

This is the first ever attempt. So you are not promoting -- we actually not we have -- even though we are not promoting into clinical trial, it doesn't mean we have stopped the pipeline R&D. We'll continue to build data I mean we continue to build data from R&D to clinical and iteration. You can see our data and receptor molecule and other small molecule and other isoform with those target they're actually using antibody with this immune agonist. So by building this data, we now understand now the immune agonist, a single target the drug ability is limited. It's difficult to strike the right balance between efficacy and safety. And also you can see in order to avoid activation of the entire body's immunity it will have less activity. And in terms of clinical ramp up, then it's difficult to get the PK or PD or because if you have efficacy, you're going to have immune activation. So whether it's a small molecule or ADC, we don't want to get people into Grade 5 AE just because you want to have advocacy. So we found this type of molecule, they need a partner, and they need a partner to act. They itself mainly to asset immunity. And then there's another molecule, another mechanism. So this is why we follow up with the 515 as Dr. Jin said, we have the -- we have the immune agonist combined as a new payload with the [indiscernible], we are actually re-ware researching on the combination mechanism. So we want to see what is the best receptor agonist. So we are iterating design. I think they're too promising. It should be something that provides a better balance with both efficacy and durable lacy durable efficacy.

So maybe we can take final two questions.

Maybe on -- just a question on the financial statement price adjustment. You talk about was on the inventory. So for whatever in your stock, is already priced based on the adjusted reimbursement price. And also would the expenses be recorded in the sales expenses when you're cooperating with the pharma. Well, these are two questions.

Yes. We are working with pharma, as I mentioned, 140. We actually make announcement for 140. Clearly, we have a CSO model for we're going to commission a pharma like 140 is focusing on the first-line cronerectral cancer, right? So they need to there may be someone who have resources for GI and also thinking about this business. So we have some commercial collaboration with CSO model on the project of 140 in -- so any revenue generation, it will be booked to Kelun biotech. But we also booked the corresponding expenses. The expenses will include the payment to sales services, promotion services. So -- but from Kelun biotech, the recording and expenses are all recorded here on our own company.

Okay, on the online audience.

Okay. Thank you. Thank you for having me. I have two follow-up questions. The first question is you can see like this ASCO will read out the PD-1 positive data. Do you split the cohort between screamer cell and adenocarcinoma. Because MSD in their indication, the split between streamer cell versus adenocarcinoma. So I want to know whether the [indiscernible] cohort will be differentiated. My second question is last year in HER2 HR-positive HER2-negative breast cancer, there was PFS result, which is amazing. And also a beneficial trend of OS improvement. So I want to know -- is there any more data regarding the update of OS maturity? Because in AstraZeneca. OS is not significantly benefit better than the control group, which really compromise sales. So I just want to know do you have any update.

Two detailed clinical question. Dr. Ding?

First question, yes, indeed, we're going to record both chime cell and adenocarcinoma. So those will be data readout ecotomy. Secondly, to HER2 negative. Yes, indeed, for indication, MMPA it has been approved for final OS analysis because it's an event-driven trial. So the timing doesn't come as fast as you think. We hope maybe in this year or maybe next year's ASCO, we might be able to have final OS data. There are more and more jobs coming on, including like 8011 from China. And also a lot of patients will be using this type of drug and also subsequent new OS. We're going to see some OS improvement. But as I mentioned, we are very confident in our top 2 OS benefit because in terms of lung cancer, lung cancer because the subsequent treatment for OS is a bit less. So long cash should produce great bigger. So we are having positive results in the 335 in OS Yes, we are significantly behind school run a lot on time. I know you still have any questions. But going forward, we're going to go to Hong Kong. We're going to have some off-line communication NDRs in other cities. So if you have further questions, feel free to join our offline roadshows. Mr. Zhou, can you wrap up?

Yes, I think you have summed it up. Pretty much, I'd like to leave you with a thank you. We thank all the investors and analysts for your interest, attention to the company and every time you have had great questions for us, which help us to think. And this is a great help for the company's development and also in the future, there's going to be even more activities to line up. We hope to see you more often in the future. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]