Financial Data and Key Metrics Changes - The company reported a GMV of $1,450,000,000, representing a 34% year-over-year increase, and revenues of almost $215,000,000, up 28% year-over-year [10][23] - Adjusted gross profit for Q2 was just shy of $100,000,000, up 24% from last year, with adjusted EBITDA of $38,500,000, up 23% compared to the same quarter last year, resulting in a 17.9% margin [10][26] - The company achieved GAAP profitability with a net profit of $10,500,000 compared to a net loss of $22,400,000 in the same quarter of last year [10][27] Business Line Data and Key Metrics Changes - Service fee revenue for the quarter was $102,900,000, while fulfillment services revenue was $112,000,000 [23] - The service fee take rate increased compared to Q1 2025, while the fulfillment take rate decreased as expected due to seasonal higher average order value [24] Market Data and Key Metrics Changes - The company continues to see strong growth across many geographies and cohorts of merchants, with notable expansions in the U.S. market [12][78] - The U.S. business has outperformed, driven by strong growth from digitally native brands [78] Company Strategy and Development Direction - The company extended its partnership with DHL for an additional three years, enhancing service offerings for merchants [14] - The acquisition of ReturnGo aims to improve post-purchase solutions for merchants, integrating advanced technology for returns and exchanges [15][49] - The company is focused on enhancing its 3B2C offering to help brands offset costs due to rising tariffs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite uncertainties around duty tariffs and trade dynamics [9][11] - The company anticipates continued strong trading patterns and does not expect significant impacts from upcoming changes to the U.S. de minimis exemption [11][36] Other Important Information - The company ended the quarter with $516,000,000 in cash and cash equivalents, with free cash flow of $63,500,000 [27] - For Q3 2025, the company expects GMV in the range of $1,455,000,000 to $1,495,000,000, representing a growth rate of 30% versus 2024 [28] Q&A Session Summary Question: Expectations around the de minimis exemption and its impact - Management indicated that they do not expect a significant impact from the removal of the de minimis exemption, noting resilient trading patterns [33][36] Question: Impact of the ReturnGo acquisition on revenue and OpEx - The acquisition is expected to have a slight positive impact on revenue and a minor negative impact on adjusted EBITDA in 2025, with expectations of neutral impact by 2026 [38] Question: Take rate dynamics for the 3B2C product - The take rate for the 3B2C solution is expected to be similar to regular B2C transactions, with minimal impact from clearance fees [45] Question: Growth in the U.S. business and its drivers - The U.S. business is outperforming due to strong growth from digitally native brands, contributing positively to overall performance [78] Question: Contribution from borderfree.com - The borderfree.com platform contributed over 4% of sales from merchants utilizing the service, in line with expectations [87] Question: Trends in NDR and same-store merchant GMV growth - Year-to-date figures are in line with historical averages, with expectations for new merchant contributions to be similar to last year [89]

Investment Rating - The report provides a positive outlook for the company, indicating a strong performance in the upcoming year with expectations of achieving GAAP net profit in 2025 [6][22]. Core Insights - The company is expected to achieve a revenue of $3.81 billion in 2024, representing a year-on-year growth of 55%, with a significant reduction in GAAP operating losses to $568 million [3][13]. - The core products are experiencing accelerated growth, with sales of Baiyueze® (Zebutinib) reaching $2 billion in 2024, a 106% increase year-on-year, and Bai Ze An® (Tislelizumab) sales at $621 million, a 16% increase [4][16][17]. - The company is entering a critical phase with multiple clinical data readouts expected, including promising results from its Bcl-2 inhibitor Sonrotoclax for treating CLL [5][19]. - The company has provided clear profit guidance for 2025, expecting to achieve a GAAP net profit, with projected revenues between 352 billion to 381 billion RMB, reflecting a growth of 29.35% to 40% [6][23]. Summary by Sections Revenue Growth and Loss Reduction - The company reported a strong revenue performance with a projected revenue of $3.81 billion for 2024, a 55% increase year-on-year, and a significant reduction in GAAP operating losses [3][13]. - Non-GAAP operating profit is expected to be $45.36 million, marking a turnaround from previous losses [3][13]. Core Product Performance - Bai Ze An® (Tislelizumab) sales are projected at $621 million for 2024, a 16% increase, with ongoing regulatory reviews for new indications [4][16]. - Baiyueze® (Zebutinib) achieved sales of $2 billion, a 106% increase, with strong market share growth in the US and Europe [4][17][18]. Clinical Pipeline and Data Readouts - The company is advancing its clinical pipeline with 13 new molecules entering clinical trials in 2024, significantly higher than the previous year [5][21]. - Key clinical trials for Sonrotoclax and other products are expected to yield important data in 2025, potentially leading to accelerated approval applications [5][19]. Profit Guidance for 2025 - The company has set a clear profit guidance for 2025, expecting to achieve a GAAP net profit, with revenues projected between 352 billion to 381 billion RMB [6][23]. - The anticipated gross margin for 2025 is between 80% to 90%, indicating strong profitability potential [23].

Investment Rating - The report provides a positive outlook for the company, indicating a strong performance and growth potential, with expectations of achieving GAAP net profit in 2025 [6][22]. Core Insights - The company is expected to achieve a revenue of $3.81 billion in 2024, representing a year-on-year growth of 55%, with a significant reduction in GAAP operating losses [3][13]. - The core products are experiencing accelerated growth, with sales of Baiyueze® (Zebutinib) reaching $2 billion in 2024, a 106% increase year-on-year, and Bai Ze An® (Tislelizumab) sales at $621 million, a 16% increase [4][16][17]. - The company has entered a new phase of clinical data readouts, with 13 new molecules entering clinical trials in 2024, significantly higher than the previous year [5][21]. Summary by Sections Revenue Growth and Profitability - The company reported a projected revenue of $3.81 billion for 2024, with a 73% increase in product revenue driven by the sales of Baiyueze® and Bai Ze An® [3][13]. - The GAAP operating loss is expected to decrease to $568 million, a reduction of $640 million year-on-year, while non-GAAP operating profit is projected at $45.36 million [3][13]. Core Product Performance - Bai Ze An® sales are projected at $621 million for 2024, with ongoing FDA reviews for new indications, while Baiyueze® sales are expected to reach $2 billion, with significant market share growth in Europe [4][16][17]. - The company is solidifying its leading position in the CLL market, with Baiyueze® being the most widely approved BTK inhibitor globally [18]. Clinical Pipeline and Future Prospects - The company is advancing multiple clinical trials, including the Bcl-2 inhibitor Sonrotoclax, with data readouts expected in 2025 for various indications [5][19]. - The company has provided clear guidance for 2025, expecting a revenue range of 35.2 to 38.1 billion RMB, with a gross margin of 80%-90% and positive cash flow from operations [22][23].