Financial Performance - In the first three quarters of 2025, the company achieved revenue of 866 million RMB, a year-on-year increase of 2.08% [2] - Net profit attributable to shareholders reached 263 million RMB, up 15.50% year-on-year, with a non-recurring net profit growth of 18.05% [2] - The net profit for 2025 has already surpassed the total for the entire year of 2024, indicating a robust growth trend [2] Sales Structure Adjustments - The domestic sales structure was adjusted in Q4 2024, leading to improved growth in 2025, with a reduction in related expense ratios [2] - International sales structure adjustments were made in the first half of 2025, focusing on key markets and optimizing the distributor system [3] Quarterly Performance Insights - In Q3 2025, net profit decreased by 11.92% due to a provision for bad debts amounting to 18.18 million RMB related to a long-term receivable from a technology transfer [4] - Revenue in Q3 declined by 6.12%, primarily due to changes in VAT rates and a decrease in income from clinical research services [4] Expense Management - Sales expenses increased in Q3 due to higher marketing and personnel costs, but the overall trend shows a decrease in sales expense ratio over recent years [6] - R&D expenses fluctuated between 15% and 18%, while management expenses remained stable at around 7% to 8% [6] Market Expansion - The company has strategically entered Southeast Asian markets, focusing on countries like Singapore, Vietnam, Malaysia, and Indonesia, which are expected to drive future growth [9] - The Southeast Asian market is seen as a significant growth point for international business, despite its current smaller revenue base [9] Product Development and Collaborations - New products in the registration process include HRD products and PCR tests, with data to be disclosed at the upcoming ESMO-Asia conference [10] - Collaboration with Sailu Medical aims to enhance the company's competitive edge in the NGS market by integrating core technologies [11] Regulatory and Market Access - Currently, the company's products are not included in national health insurance, but tumor gene testing has been incorporated into local insurance schemes, enhancing market penetration [12] - The company is preparing for potential participation in the upcoming round of centralized procurement in Jiangsu Province [12] Share Buyback Plan - The board plans to use 100 to 200 million RMB for share repurchase, pending shareholder approval [5]

Core Viewpoint - The company is focused on maintaining a stable profit distribution policy while considering future dividend plans based on various factors such as business performance and regulatory requirements [1] Group 1: Company Performance and Strategy - As of October 14, 2025, the company's stock price closed at 22.31 yuan, down 1.2%, with a turnover rate of 1.57% and a trading volume of 61,100 shares, amounting to a transaction value of 137 million yuan [1] - The company has received approval for its companion diagnostic products to be used with Merck's MET inhibitors in the Chinese and Japanese markets, indicating a strategic partnership with a major pharmaceutical player [1] - The company emphasizes the importance of investor returns and is open to suggestions regarding dividend policies, which will be evaluated by the board based on the company's development stage and financial needs [1] Group 2: Industry Context and Competitive Position - The company is positioned within a growing market for high-end medical equipment, benefiting from national policies promoting domestic production and import substitution [2] - The company has developed a comprehensive sequencing technology platform, including the Salus Pro gene sequencer, which received regulatory approval as a Class III medical device in January 2025 [2] - The collaboration with SaiLu Medical aims to leverage the strengths of both companies in sequencing technology and tumor gene detection, enhancing long-term competitiveness in the industry [2] Group 3: Market Activity - On October 14, 2025, the net inflow of funds from major investors was 941,700 yuan, while retail investors experienced a net outflow of 3,077,100 yuan, indicating varied investor sentiment [3]