Financial Data and Key Metrics Changes - Revenue reached nearly RMB 10 billion, representing a 16.1% increase year-over-year [28] - Adjusted EBITDA increased by 20.6% to RMB 4.3 billion, with an adjusted EBITDA margin of 43.3% [35][36] - Adjusted net profit exceeded RMB 2.8 billion, reflecting an 11.6% year-over-year increase [36] - Gross profit margin improved from 39.1% to 42.7%, with adjusted gross profit margin at 45.6% [7][40] Business Line Data and Key Metrics Changes - Research and Development (R&D) revenue grew over 35% year-over-year, driven by a strong pipeline of projects [30] - Late-phase and commercial manufacturing revenue grew close to 25%, representing over 43% of the total portfolio [30] - Early-phase revenue saw a decline due to timing issues with large-scale clinical manufacturing projects transitioning from phase two to phase three [30][31] Market Data and Key Metrics Changes - North America accounted for nearly 60% of revenue, with a growth rate of 20% [23] - Europe contributed close to 20% of revenue, showing modest growth as the company shifts focus from CMO projects to early-phase programs [24] - China represented 13% of revenue, experiencing a single-digit decline primarily due to out-licensing of programs to global partners [25] - Asia, particularly Japan, Korea, and Singapore, showed significant growth, now accounting for nearly 7% of revenue with more than double the growth rate [26] Company Strategy and Development Direction - The company emphasizes a unique CRDMO model, focusing on both service-based and IP-driven revenue streams [50][57] - The strategy includes expanding capacity globally, with significant investments in facilities in the US, Ireland, and Singapore [47][79] - The company aims to leverage its strong portfolio in ADCs and bispecifics, which now account for over 40% of its project portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the company has absorbed post-COVID industry adjustments and is positioned for accelerated growth [28] - The backlog has shown significant growth, with milestone backlog increasing from RMB 7 billion to RMB 9 billion and service backlog from RMB 10 billion to RMB 11.3 billion [16][17] - The company expects to continue benefiting from global biotech trends, including M&A activities and out-licensing of Chinese assets to global partners [63][64] Other Important Information - The company achieved a 100% success rate in regulatory inspections, hosting 44 inspections [6] - Employee retention rate remains high at 98.8%, with no increase in total employee numbers over the past 18 months [42] - The company has a strong cash position with RMB 12.5 billion on hand and a conservative debt level of RMB 2.7 billion [43][47] Q&A Session Summary Question: What are the key drivers for revenue growth in the upcoming quarters? - Management highlighted the successful execution of the follow and win molecule strategies, with a strong pipeline of late-phase projects expected to ramp up [29] Question: How does the company plan to address the decline in early-phase revenue? - The decline is attributed to timing issues with large-scale projects transitioning to manufacturing, which is expected to be replenished by new projects in the pre-IND space [30][31] Question: What is the company's outlook on the global market trends? - Management expressed confidence in continued growth driven by M&A activities and the out-licensing of Chinese biotech programs to global partners, which typically results in significant revenue amplification [63][64]

Financial Data and Key Metrics Changes - Revenue reached nearly RMB 10 billion, representing a 16.1% increase year-over-year [27] - Adjusted EBITDA increased by 20.6% to RMB 4.3 billion, with an adjusted EBITDA margin of 43.3% [34] - Adjusted net profit exceeded RMB 2.8 billion, an 11.6% increase year-over-year [35] - Gross profit margin improved from 39.1% to 42.7%, with a gross profit increase of RMB 900 million [32][38] Business Line Data and Key Metrics Changes - Early phase R&D revenue grew over 35%, while late phase manufacturing revenue increased by nearly 25% [28][29] - The company added a record 86 new projects in the first half of the year, continuing strong momentum from the previous year [4][28] - The backlog grew significantly, with milestone backlog increasing from RMB 7 billion to RMB 9 billion and service backlog from RMB 10 billion to RMB 11.3 billion [16][17] Market Data and Key Metrics Changes - North America accounted for nearly 60% of revenue, with a growth rate of 20% [22] - Europe contributed close to 20% of revenue with modest growth, while China accounted for 13% with a single-digit decline [24] - Asia, particularly Japan, Korea, and Singapore, saw revenue growth exceeding 100% [25] Company Strategy and Development Direction - The company emphasizes its unique CRDMO model, which integrates R&D, development, and manufacturing [50][58] - Focus on expanding capabilities in ADCs and bispecifics, with over 300 projects in the pipeline [19][21] - Plans to enhance global capacity, with significant expansions in the US, Ireland, and Singapore [76][80] Management's Comments on Operating Environment and Future Outlook - Management noted that the company has absorbed post-COVID industry adjustments and is positioned for accelerated growth [27][28] - The company expects to continue benefiting from the increasing number of projects moving through its golden funnel [28] - Management expressed confidence in achieving positive free cash flow for the fourth consecutive year [48] Other Important Information - The company maintained a high employee retention rate of 98.8% and stable employee numbers despite revenue growth [6] - The company has a strong balance sheet with RMB 12.5 billion in cash and a conservative debt level of RMB 2.7 billion [42][47] - The company achieved a 100% success rate in regulatory inspections, reinforcing its quality assurance [6][81] Q&A Session Summary Question: What are the key drivers of revenue growth? - Revenue growth was primarily driven by successful execution of the follow and win the molecule strategies, with late phase and commercial manufacturing revenue growing close to 25% [28][29] Question: How is the company addressing the decline in early phase revenue? - The decline in early phase revenue is attributed to timing issues as several large-scale projects progressed from phase two to phase three, which is expected to be replenished by new projects [29] Question: What is the company's strategy for expanding its market presence? - The company aims to leverage its strong market share in China and capitalize on global licensing trends, expecting revenue to grow significantly as projects are out-licensed to global partners [64][65]

Financial Data and Key Metrics Changes - In the first half of 2025, total revenue decreased by 10.6% year on year, but adjusted revenue excluding media policy impacts increased by 7.8% [34][36] - Adjusted EBITDA reached 72 million, and adjusted net profit was 17 million, marking the first turnaround since 2021 [7][46] - Gross profit increased to 7.5 billion yen, an 8.7 percentage point rise, with adjusted gross profit up 36% year on year [6][7] Business Line Data and Key Metrics Changes - Subscription revenue was 440 million, down 10.1% year on year, but stabilized on a half-on-half basis [35][39] - Merchant solution revenue was 338 million, down 11.3% year on year, but adjusted for rebates, it showed a growth of 45.3% [35][41] - AI-related revenue reached 34 million, accounting for 7.9% of subscription revenue, indicating a new growth driver [36][41] Market Data and Key Metrics Changes - Smart retail revenue remained stable at 286 million, with a high retention rate among merchants [10][15] - Gross billing for merchant solutions was 8.8 billion, reflecting a 3% increase year on year [12][41] - The overall GMV growth for merchants was up 13.4% year on year [15] Company Strategy and Development Direction - The company is focusing on AI technology as a core growth driver and aims to enhance operational efficiency [4][8] - There is a strong emphasis on high-quality development and phasing out low-margin businesses [5][14] - The company plans to expand into local life services and international markets, targeting growth in various sectors [30][31] Management Comments on Operating Environment and Future Outlook - Management acknowledged a complicated external environment but expressed confidence in achieving a turnaround due to cost control and efficiency improvements [33][54] - The company anticipates positive growth in subscription revenue in the second half of the year, driven by a stable base effect and increased investment in smart retail [58][60] - Future growth is expected from AI commercialization and the expansion of multi-channel business opportunities [26][29] Other Important Information - The company has integrated various platforms, including WeChat and TikTok, to enhance its service offerings [16][28] - The total number of employees as of June 30, 2025, was 3,400, with a significant reduction in salary expenses by 24.5% [37][39] Q&A Session Summary Question: What are the new highlights for subscription revenue and AI products in the second half? - Management noted that subscription revenue from key customers is stable, and AI revenue has shown good progress, with expectations for year-on-year growth in the second half [55][57][58] Question: What has been done regarding WeChat mini stores and their impact? - The company launched integrated solutions for WeChat mini stores, achieving a high penetration rate and rapid growth in daily active users [64][66] Question: What is the outlook for Merchant Solutions and advertising operations? - Management indicated that gross billing for Merchant Solutions was 8.6 billion, with a significant increase in net rebate ratio, and they expect continued profitability in the second half [68][75][76]

Financial Data and Key Metrics Changes - In Q2 2025, total revenue reached RMB 2,070 million, representing a year-on-year decrease [5] - Revenue from office software and services increased by 14% year-on-year to RMB 1,360 million, while online games revenue decreased by 26% year-on-year to RMB 952 million [6][13] - Gross profit decreased by 9% year-on-year to RMB 1,854 million, with a gross profit margin of 80% [14][16] - Operating profit before share-based compensation costs decreased by 48% year-on-year to RMB 454 million [15] - Profit attributable to owners of the parent was RMB 532 million, compared to RMB 393 million in the previous year [16] Business Line Data and Key Metrics Changes - Office software and services accounted for 59% of total revenue, while online games and others made up 41% [12] - The WPS AI products saw significant enhancements, with nearly 13 million monthly active AI users in the first half of the year [7] - The online games business is focusing on enriching the classic GX series and expanding into new genres, with the flagship IP, GX3 Online, maintaining a stable user base [8][9] Market Data and Key Metrics Changes - The company is actively participating in bidding for office software among government and enterprise sectors, maintaining a leading market share [8] - The international edition of WPS is being gradually improved to enhance collaboration and security capabilities [8] Company Strategy and Development Direction - The company is committed to increasing R&D investment in AI and collaboration, aiming to enhance product implementation across various office scenarios [10] - The online game business will focus on premier games and global expansion, aiming for long-term operational quality [11] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the gaming industry, particularly regarding the new IP, MetroBrick, which requires time for adjustments and optimization [25][49] - For the office software segment, management expressed confidence in maintaining growth rates similar to the first half of the year, driven by AI collaboration improvements [30] Other Important Information - The company reported cash resources of RMB 25 billion as of June 30, 2025 [17] - Net cash from operating activities was RMB 665 million for 2025, down from RMB 1,374 million in 2024 [18] Q&A Session Summary Question: Performance of MetroBrick and full-year revenue guidance for the gaming sector - Management noted that initial feedback for MetroBrick was positive, but adjustments are needed based on player feedback to enhance the gaming experience [22][23] Question: Outlook for WPS office business in the second half of the year - Management expressed strong confidence in the growth of the WPS office business, expecting continued success driven by AI features [29][30] Question: Trends in active user base and ARPU for JX3 - Management indicated that while there is pressure on maintaining user levels for JX3, they remain confident in its long-term operation [33][34] Question: Differentiation of WPS AI agent from competitors - Management emphasized that their AI solutions are tailored for specific office scenarios, which sets them apart from competitors [36][39]

Financial Data and Key Metrics Changes - In the second quarter, total revenue reached RMB 2,070 million, representing a year-on-year decrease [5] - Revenue from office software and services increased by 14% year-on-year to RMB 1,360 million, while online games revenue decreased by 26% year-on-year to RMB 952 million [6][14] - Gross profit decreased by 9% year-on-year to RMB 1,854 million, with a gross profit margin of 81% [15][17] - Profit attributable to owners of the parent was RMB 532 million, compared to RMB 393 million in the previous year [17] Business Line Data and Key Metrics Changes - Office software and services accounted for 59% of total revenue, while online games accounted for 41% [12] - The WPS AI products saw significant enhancements, with monthly active AI users reaching nearly 13 million [6][7] - The online games business is focusing on enriching existing IPs and expanding into new genres, with the flagship IP GX3 Online maintaining a stable user base [8][9] Market Data and Key Metrics Changes - The company is actively expanding into international markets, with the divestment of the new WPS international edition [7] - The online game business is experiencing challenges due to a high base from the previous year, impacting revenue growth [14] Company Strategy and Development Direction - The company is committed to increasing R&D investment in AI and collaboration, aiming to enhance product offerings across various office scenarios [10] - The online game business will focus on premier games and global expansion to strengthen its IP franchise [11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the office software business, particularly with the integration of AI features [30][31] - The gaming industry is facing challenges, but management believes that with time and adjustments, new IPs can achieve success [28][49] Other Important Information - Research and development costs increased by 50% year-on-year, reflecting ongoing investments in AI and new game genres [15] - The company has a cash resource of RMB 25 billion as of June 30, 2025 [18] Q&A Session Summary Question: Performance of MetroBrick after its release and full-year revenue guidance for the gaming sector - Management noted that while initial feedback was positive, adjustments are being made based on player feedback to enhance the gaming experience [24][25] Question: Outlook for WPS office business in the second half of the year - Management is optimistic about maintaining growth rates similar to the first half, driven by AI enhancements [30][31] Question: Trends in active user base and ARPU for JX3 - Management acknowledged slight pressure on active users compared to last year but remains confident in long-term operations [34][35] Question: Differentiation of WPS AI agent from competitors - Management emphasized that their focus is on specific office scenarios, which sets them apart from competitors [39][40]

Financial Data and Key Metrics Changes - The profit attributable to the owners of the company reached JPY 1,650,000,000, reflecting a 52.6% increase [4] - Total operating expenses increased by 6.8%, while net cash from operating activities rose by 14% [4][5] - The gross profit margin for handset products is expected to fall between 20% to 30% for the whole year, with high-end products contributing significantly to this margin improvement [7][51] Business Line Data and Key Metrics Changes - Revenue from mobile handsets and modules grew significantly, with revenue from hybrid lenses increasing by over 100% year-on-year [6] - The automotive business saw an 18% revenue growth, with high demand for vehicle modules and lenses [58] - The XR business achieved JPY 1,200,000,000 in revenue, with a strong market share in smart goggles [18] Market Data and Key Metrics Changes - The global camera market size is expanding due to increased ADAS penetration, with leading car manufacturers accelerating LiDAR deployment [10][11] - The smart glass market is expected to exceed 10,000,000 units by 2025, driven by AI advancements [16] - The robotics sector is experiencing growth, particularly in intelligent lawn mowing and pool cleaning robots [28] Company Strategy and Development Direction - The company aims to integrate AI into manufacturing processes, emphasizing the importance of smart manufacturing for future competitiveness [30][36] - There is a focus on developing smart hardware based on optical perception technology, with plans to enhance capabilities in decision-making and control systems [32][34] - The company is adopting flexible overseas deployment strategies to respond to international market demands [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the vehicle business, expecting a 20% revenue increase for the year [53] - The company is optimistic about the future of LiDAR technology, viewing it as a significant growth area [60][62] - Management highlighted the importance of maintaining high yield and efficiency in production to sustain market share [40] Other Important Information - The company has upgraded its ESG ranking from BB to A level, reflecting progress in climate-related disclosures [48] - Organizational optimization efforts are underway to consolidate resources for major projects in optical processing and technology development [42][43] Q&A Session Summary Question: What is the profitability contribution of the non-handset business? - The contribution from handset business is over 50%, with net profit growing by 52% year-on-year [50] Question: What is the guidance for the second half of the year? - The gross profit margin for handsets is expected to exceed 25%, with overall revenue growth projected at 5% to 10% [51][53] Question: Can you provide a breakdown of vehicle revenue growth? - The vehicle business is expected to grow by 20% for the year, with significant contributions from high-end products [54][58] Question: What is the outlook for the XR business? - The XR business is expected to grow moderately, despite a decrease in VR-related revenue [56] Question: When will explosive growth from overseas customers be expected? - The company anticipates a long-term trend of growth from overseas markets, particularly in Europe and Japan [77] Question: How will the gross profit margin be affected by AR and VR products? - The gross profit margin varies across different segments, with AR and VR products not expected to have high margins initially [80][82]

Financial Data and Key Metrics Changes - The profit attributable to the owners of the company reached JPY 1,650,000,000, reflecting a growth of 52.6% year-on-year [5] - Total operating expenses increased by 6.8%, while net cash from operating activities rose by 14% [5] - Gross profit margin for handset products is expected to fall between 20% to 30% for the year, with high-end products improving margins significantly [8][9] Business Line Data and Key Metrics Changes - Revenue from handset lenses increased by over 9% year-on-year, while revenue from hybrid lenses grew by over 100% [7] - The automotive business saw an overall revenue growth of 8%, with expectations for a 20% growth for the year [54] - XR business achieved JPY 1,200,000,000 in revenue, with a 21% growth rate in the first half of the year [18][55] Market Data and Key Metrics Changes - The global camera market size is driven by the acceleration of ADAS penetration, with continuous improvement in camera specifications [11] - The smart glass market is expected to exceed 10,000,000 units by 2025, driven by AI empowerment [16] - The company is seeing increased orders from overseas markets, particularly in Europe and Japan, indicating a long-term growth trend [78] Company Strategy and Development Direction - The company aims to strengthen its advantage in optical perception technology while extending into decision-making and control domains [32] - There is a focus on developing technologies for autonomous driving and smart manufacturing, emphasizing the importance of AI integration [30][36] - The company plans to adopt flexible strategies for overseas deployment in response to customer demands and market developments [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the vehicle business, expecting to surpass industry growth rates [79] - The company is optimistic about the future of the XR business, despite potential declines in VR-related revenue [56] - Management highlighted the importance of technological accumulation and innovation to maintain leadership in the industry [15] Other Important Information - The company has upgraded its ESG ranking from BB to A level, reflecting progress in addressing climate change risks [48] - Significant investments are being made in R&D for new technologies, particularly in the areas of LiDAR and smart glasses [90] Q&A Session Summary Question: What is the profitability contribution of the non-handset business? - The profitability from the handset business is over 50%, with rapid growth driven by gross profit margin improvements [50] Question: What is the guidance for the second half of the year? - The gross profit margin for handsets is expected to be between 25% to 30% for the year, with revenue growth anticipated [51][53] Question: Can you provide a breakdown of vehicle revenue growth? - The vehicle business is expected to see a revenue growth of 20% for the year, with significant contributions from high-end products [54] Question: What are the expectations for the LiDAR business? - The development of LiDAR is becoming clearer, and the company is focusing on technological capabilities and mass production [60][62] Question: How does the company plan to balance size, margin, and profitability? - Management emphasized the importance of technology-enabled products and maintaining high utilization rates in production [66][70] Question: What is the outlook for the gross profit margin in the vehicle module business? - The gross profit margin for vehicle modules is expected to be higher for premium cars, but competitive pressures exist in overseas markets [81]

Financial Data and Key Metrics Changes - Long coal production was 32.2 million tonnes, and attributable sellable coal production was 18.9 million tonnes, tracking well against full year production guidance [4] - Cash operating costs were $93 per tonne, flat compared to the previous year, with an implied cash operating margin of $40 per tonne [5][11] - Revenue for the first half was $2.68 billion, with operating EBITDA of $595 million at a 23% margin, reflecting a 15% decrease in revenue compared to the previous year [5][30] - Profit after tax was $163 million, with a fully franked interim dividend of $82 million declared, representing a 50% payout ratio [6][34] Business Line Data and Key Metrics Changes - ROM coal and saleable coal production were 15% to 16% higher than the first half of the previous year, while attributable sales were effectively flat due to temporary disruptions [10] - Attributable saleable coal was up 11% compared to the previous year, indicating strong operational performance despite challenges [12] Market Data and Key Metrics Changes - Realized thermal coal price was $138 per tonne, down 12% from the previous year, while metallurgical coal price was $207 per tonne, down 35% [23][24] - The company observed cuts to supply from Indonesia (12%) and Colombia (24%), which could support a recovery in international thermal coal prices [23] Company Strategy and Development Direction - The company aims to maintain low cash operating costs and optimize production volumes, product quality, and efficiency metrics to deliver the best outcomes for shareholders [36] - There is a focus on operational recovery and maintaining production guidance of 35 to 39 million tonnes for the full year [36] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical events and weather disruptions impacted sales and logistics, but they are optimistic about recovering delayed shipments in the third quarter [20][30] - The company is confident in the demand for metallurgical coal, particularly from India and Southeast Asia, as these regions are expected to see growth [56] Other Important Information - The company retains a strong balance sheet with $1.8 billion in cash and no external debt, providing flexibility for future growth opportunities [6][34] - The capital expenditure guidance for 2025 is set at $750 million to $900 million, with ongoing investments required to ensure productivity [36] Q&A Session Summary Question: Why is the decline in profit from certain mines more drastic than others? - Management attributed this to the drop in API five prices, which affected margins, particularly from low CV coal [40][42] Question: Is the year-over-year increase in coal royalty per sellable tonne due to the royalty rate change? - The increase is due to both the royalty rate change and lower coal prices, resulting in a relatively flat royalty across periods [45][48] Question: How likely is it that inventory will be digested by year-end? - Management is on schedule to catch up on first-half underperformance and aims to reduce inventory by the end of August or early September [51][54] Question: What are the growth opportunities for coking coal outside of China? - Significant growth opportunities are seen in India and Southeast Asia, driven by infrastructure plans and GDP growth [56] Question: Are there plans for further expansion in coal production volume? - The company is focused on optimizing existing assets for productivity rather than significant expansions at this time [57][59] Question: What is the expected sales mix for 2025? - The sales mix is expected to remain relatively consistent, with minor variations due to production impacts from weather [80][82] Question: What is the interest rate on the cash balance held? - The company is currently receiving between 4% to 5% on its cash balance [85] Question: Will Yancoal consider acquisitions in China? - While open to growth opportunities, competing against the majority shareholder in China may not be practical [100] Question: How does the company assess potential M&A opportunities? - The company evaluates all opportunities in the best interest of shareholders, maintaining a strong balance sheet to support growth [90][92]

Financial Data and Key Metrics Changes - Yancoal reported a revenue of AUD 2.68 billion, a 15% decrease compared to the previous year, primarily due to lower average realized coal prices and delayed sales volumes [29][30] - Operating EBITDA was AUD 595 million, reflecting a 40% decrease, resulting in a margin of 23% [5][30] - Profit after tax was AUD 163 million, translating to AUD 0.02 per share, with a 50% payout ratio leading to an interim dividend of AUD 82 million [6][30] Business Line Data and Key Metrics Changes - Long coal production reached 32.2 million tonnes, with attributable sellable coal production at 18.9 million tonnes, indicating a strong operational performance [4][10] - Cash operating costs remained flat at AUD 93 per tonne, an 8% improvement over the previous year [11][14] - Attributable saleable coal was up 11% compared to the previous year, despite flat sales due to temporary disruptions [12][10] Market Data and Key Metrics Changes - The realized thermal coal price was AUD 138 per tonne, down 12% from the previous year, while metallurgical coal prices fell 35% to AUD 207 per tonne [22][23] - The company noted a stable customer mix, with significant contributions from China and Japan, although global demand for metallurgical coal remains sluggish [20][21] - Supply cuts from Indonesia (12%) and Colombia (24%) were observed, which could support a recovery in international thermal coal prices [22] Company Strategy and Development Direction - Yancoal aims to maintain production guidance of 35 to 39 million tonnes for the full year, with a focus on optimizing operational performance and cost management [34] - The company is committed to reinvesting in its assets to ensure productivity and cost-effectiveness, with capital expenditure guidance set between AUD 750 million and AUD 900 million [35] - Management remains open to M&A opportunities, evaluating both domestic and international prospects while being cautious in the current coal market conditions [89][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering delayed shipments and optimizing inventory levels, targeting to catch up on first-half underperformance by the end of Q3 [19][53] - The company anticipates a potential recovery in coal prices, driven by geopolitical events and supply-demand dynamics, while acknowledging the need to navigate the current market cycle [25][113] - Management emphasized the importance of maintaining financial discipline and operational efficiency in the short term [113] Other Important Information - The company has no external debt and holds AUD 1.8 billion in cash, providing a strong financial position for future growth opportunities [6][30] - Yancoal's sustainability strategy includes initiatives for decarbonization and improving safety performance, with a commitment to reducing TRIFR [7][8] Q&A Session Summary Question: Why is the profit decline from certain mines more drastic than others? - Management attributed the decline to the drop in API five prices, which affected margins, particularly from low CV coal [39][41] Question: Is the year-over-year increase in coal royalty per sellable tonne due to the royalty rate change? - Management confirmed that the increase is due to both the royalty rate change and lower coal prices, resulting in relatively flat royalties across periods [44][47] Question: How likely is it that inventory will be digested by year-end? - Management indicated that they are on schedule to catch up on inventory by the end of August or early September [53] Question: What are the growth opportunities for coking coal outside of China? - Management highlighted significant growth opportunities in India and Southeast Asia, driven by infrastructure needs and economic growth [55] Question: Are there plans for further expansion in coal production volume? - Management stated that while there are conceptual projects under study, the current production profile is steady, focusing on optimizing existing assets [56][59] Question: Will Yancoal consider acquisitions in China? - Management noted that while they are open to M&A opportunities, competing against their majority shareholder in China may not be practical [105] Question: What is the expected sales mix for 2025? - Management indicated that while there may be a marginal difference in the thermal coal mix, it would not be substantial [84]

Financial Data and Key Metrics Changes - Total revenue for the first half of 2025 reached RMB 3,731 million, representing a year-on-year increase of 74.3% [4] - Drug sales achieved RMB 641 million with a year-on-year growth of 53.5% [4][14] - Net loss for 2025 significantly narrowed to RMB 35.6 million, a year-on-year decrease of 86.7% [4][15] - Cash position stood at RMB 7,600 million, equivalent to approximately USD 1,100 million [16] Business Line Data and Key Metrics Changes - The company reported strong performance in its drug sales, particularly from relabotinib, which contributed significantly to revenue growth [14][19] - Tafasitamab was highlighted as a new growth driver, approved for treating DLBCL patients in China [15] - The company is transitioning to a diversified multi-franchise portfolio with several late-stage drivers expected to contribute to long-term revenue growth [15] Market Data and Key Metrics Changes - The market potential for ITP is estimated to be around RMB 1 billion to 1.5 billion in China, while the potential for SLE is around RMB 3 billion [64] - The company anticipates that the first-line CLL indication will significantly enhance its market position and sales potential [62] Company Strategy and Development Direction - The company aims to expand its international presence through strategic collaborations, such as the partnership with Prolyom for developing specific antibodies [17][18] - The focus is on advancing its clinical pipeline, particularly in hematology and autoimmune diseases, with several drugs in late-stage trials [24][50] - The company is committed to maintaining a strong R&D backbone, with R&D expenses increasing to RMB 450 million in the first half of 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving at least 35% growth for Orillah in 2025, driven by strong market demand and unique product positioning [21][62] - The company is optimistic about the upcoming approvals and market entries for its drugs, particularly in the autoimmune disease segment [23][64] - Management highlighted the importance of patient enrollment and clinical trial progress as critical factors for future success [10][12] Other Important Information - The company has made significant progress in its R&D pipeline, with multiple drugs in various stages of clinical trials, including BCL-2 inhibitors and BTK inhibitors [24][50] - The company is actively pursuing global clinical trials for its drugs, particularly in the AML and MDS indications, which are expected to enhance its market presence [78] Q&A Session Summary Question: Regarding the performance of Orillah and potential guidance adjustments - Management noted that Orillah's revenue exceeded 50% growth in the first half, indicating confidence in surpassing the 35% annual guidance [62][63] Question: Expectations for pricing negotiations related to new indications - Management is preparing for negotiations and believes that the unique value of their products will support strong sales momentum [70][71] Question: R&D expenses outlook considering global trials - Management indicated that R&D expenses are expected to grow by 15% to 20% over the next two years, with a focus on late-stage clinical trials [73][74] Question: Global trial plans for BCL-2 inhibitors - Management clarified that while they are focusing on the Chinese market for first-line CLL, they are prioritizing global trials for AML and MDS due to urgent market needs [78] Question: Progress on lupus indication and phase three trials - Management expects to have top-line results from the phase two trial by September, which will inform decisions on phase three trials [91]