Hello everyone. Thank you for joining the Hua Medicine first-half 2026 results investor call.

This will be the English session, and this is Matthew Yan, the China healthcare analyst at SPDB International. We are very honored to have invited the management team of Hua Medicine to join.

This include the CEO and founder, Dr. Chen Li, and also the Chief Strategy Officer, George Lin.

Without further ado, we will start the call, and if you are investor, you got any questions, please feel free to press the raise hand button and then we will unmute you after the management's briefing. Thank you very much.

Now I hand the call to Dr. Chen.

Thank you. Please go ahead.

Thank you, Matthew, and thank you everyone for coming to Hua Medicine 2026 interim half-year report. Hua Medicine has a great half-year, and with accelerated sales growth in our commercialization, representing 73% in sales volume in packs.

Then also showing that the expansion of our commercialization team, increasing the collaboration between medical, marketing, and then commercial with the medical sales representatives, enhance the productivity and then reduce the cost in the overall process. In this first half-year, we can see that it's a 36% compare with the last half-year, and then 27% growth compare last second half with 2025 first half.

Just remind you that we actually double the 2025 sales over 2024. After Hua Medicine established our own capabilities in the commercialization, Hua Medicine business is getting very quick expansion.

Now, with the success in the mainland China, and then for the commercialization, two important factors also get our future development secured. One of factor is NRDL price.

We maintained our previous price level, and then this price level will cover 2026 and then 2027. That gave us the security for continue bring the benefit and the profit into the company.

Also, the patent life get extended for 5 years to 2034. Those are the years, I think Hua Medicine will enjoy the great benefits and then cash cow effects while we have been developing dorzagliatin in mainland for the market expansion in the next 5 years.

With the success, dorzagliatin also successfully introduced in Hong Kong, benefit from the reform by the Hong Kong government, and then implementation of 1+ guidelines where engage the mainland innovation for the Hong Kong patients. Most importantly, this provide a important window for dorzagliatin and then for Hua Medicine to present ourself and the products to the English-speaking community and then English training-based the communities.

I think it serves a great step for us to move into Southeast Asia and Belt and Road countries. Also, we are very happy to launch our drug in Macau.

Then this is the area give us the bridgehead opportunity to go to the Portuguese and Latin language countries as we continue expand the dorzagliatin applications. Now, dorzagliatin has been launched in China for 3 years, and then we also conducting the real-life, real-world study in the communities where the diabetes is more complex in the key hospitals in the nation.

For the tier-three major hospitals, we experience that many patients have a long disease history with multiple complications, and then usually use multiple medicine. In some cases, they're using two to three oral antidiabetic therapy, and then insulin or adding on GLP-1.

Then still, their blood glucose cannot be very well-controlled. At the bottom of this page, you can see that the initial average A1C is 9.3, reflecting the severity and complication of this disease population.

Then after treatment, there is a clear 1.2% reduction of this drug level, the A1C level. Then most importantly, on the right-hand panel, you can see that many patients who with long history of diabetes have a very bad control of glucose homeostasis.

Their TIR, means time in range, is usually less than 50%. Then in those patient population, there will be a high risk for cardiovascular, stroke, memory impairment, and also renal diseases.

To prevent those major complicated complications to happen, having dorzagliatin significantly reduce the blood glucose and then also improve the TIR and then the glucose homeostasis will provide a larger and a major revenue and process to the patients and to the medical community to reduce the overall cost for treatment of diabetes and the diabetes complications. Those real-world study further demonstrated that the efficacy of dorzagliatin is not only who have been reported that they're doing very well in the drug-naive, early-stage patients, and then in those real-world studies, I'm showing your data, showing that in the moderate or severe diabetes patients, they are also perform very well and providing a definitely strong support for the diabetes management.

At the same time, dorzagliatin showed excellent safety and then tolerability. The overall hypoglycemia rate is still below 1%, as same as we reported in the RCT studies.

Also, the time that patient use the medicine is getting longer and then stick with the care and then with much comfortable benefit. Now, if we look at the next half of our efforts in the R&D, we basically looking for the expansion of glucose homeostasis management from at the beginning, restore the dorzagliatin on the glucose sensitivity and then focusing on repair the insulin secretion, GLP-1 secretion, which is very pivotal for the diabetes treatment.

Then now, through the combination, we are start to addressing the insulin resistance, GLP-1 resistance, now have provide a full platform with the combination to address the overall metabolic diseases. Now dorzagliatin adding orforglipron, a new small-molecule oral GLP-1 receptor agonist, had received astounding results with enhanced beta cell secreting function, preserved the body weight loss without reduce the lean mass, and also managing well with the lipid profile.

In addition, the combination with the GLP-1 receptor agonist, we also conducted combination study with THR-beta agonist, resmetirom. In this case, we have find that this is a very effective way to reduce the liver fat, liver fibrosis, and also the lipid, overall lipid profile get controlled, and then reduction of uric acids.

This provide additional clinical benefits to the new indication and the needs for those patients. Dorzagliatin adding for the pan-PPAR agonist has really enhanced the insulin sensitivity and glucose sensitivity, beta cell function, and also improved the good lipid, HDL.

This offer a very broad architecture showing that from the glucose homeostasis control point of view, the company has established a strong scientific platform, and this platform going to start realize in the disease areas where we can target on the early Alzheimer's diseases, frailty, or monogenic diseases like MODY 2 or MODY 3, and most importantly, helping our patients in the diabetes kidney diseases. The study have shown that in the diabetes kidney disease population, especially when their kidney function getting to the moderate stage of the damage, there is no good medicine to control their blood glucose except using insulin.

However, the insulin utilization can cause the blood glucose fluctuation because of the impaired beta cell function. In this case, dorzagliatin have shown in several investigator-initiated trials the benefit of reduce and control blood glucose, at the same time, keep or improve the kidney functions.

That, with the major demand in China, Asian Pacific, and also even in European nations, will open a new window for dorzagliatin and glucokinase homeostasis platform to expand our territory. Many people showing the interest on our second-generation glucokinase activator.

Just remind you that the reason we want to bring a new molecule into this pipeline development is that we felt that the generation development in the last year, few years, has been changed very quickly, and then the demand of personalized diabetes care or personalized metabolic disease care requires new medicine with patient focus. Now second generation will focus on the obese diabetes patient population, with its capability of address GLP-1 secretion, have a once-a-day use that is convenient in the Western community, and then also we have a new patent life and then gave us market opportunity till 2042.

We have finish it up five of six cohort in the multiple ascending dose study, and the total study, the clinical operation will span for 25 days. The last cohort, we are already start the dosing this month, and hopefully will finish the in-life session in early September, and then we're going to the data cleanup as well as the unblinding and then looking to the report on the top line.

We're expecting a good result from this study. If we look at R&D pipelines, we have dorzagliatin treat drug-naive patients and then metformin-intolerant patients is doing very well with very good sales growth in those population.

Also, we have the clinical evidence showing adding to metformin, adding to SGLT2, DPP-4, or GLP-1 and insulin provide a very good benefit to the patient population, expanding our market coverage. In addition to this, obviously, we start to embark on the monogenic diabetes and then rare disease like MODY 2 and then CFRD, and to the areas on the diabetes prevention, frailty, diabetes kidney diseases, and also early Alzheimer's diseases.

You all start to experience the large development studies in the next year, probably six up to six clinical trials will moving dorzagliatin and GKA and glucose homeostasis platform move forward. As we're developing our dorzagliatin as a global first-in-class medicine, we have been utilized the GK brain, which is a vertical integrated language model.

Then this model has demonstrated its efficiency in the R&D where gave us the recommendations and design, drug design for the combination studies, and also helping us to define our medical marketing efforts and clinical trial design. Recently, a handheld agent become available for our medical product sales representatives that greatly improved the communication and then the dissemination of this medical informations and also our publications spreaded in the top medical journal in Nature Medicine, The Lancet Diabetes & Endocrinology, and Diabetes Care, Diabetes, and so on, so that our frontier will further expand from our internal knowledge and capability building to the knowledge dissemination and then expand accessibility to the physicians and patients.

Now with this, the artificial intelligence for human advance is a program within the GK brain where we use the genetic, epigenetic, proteomic information and the drug disease information to come up with the ultimate solution to address the frailty, to address the memory loss, to improve at the end of the day the life of human beings. I think that's the quick view about Hua Medicine's general performance and then achievements in the first half of '26.

Then now I want to turn to the financial section to George Lin, who will give you the update. George?

All right, thanks, Dr. Chen.

This is a fantastic first half that we're exceptionally proud of. As I go through these numbers, Dr.

Chen has kind of glossed over, but I want you to think, how are they able to do this in type 2 diabetes when it's so crowded and there's so many generic drugs and prices are low, and do it all themselves? I'll explain that to you.

If you look at our revenue, we've grown 74% after last year we grew close to 100%. The low-hanging fruit is building our own invigorated sales team, so that's easy.

Then going deeper into the different districts. There's still many provinces we haven't gone into.

People, frankly, when they see a global first-in-class in China first, right, they might be hesitant at first. It's been a long time.

Almost half a million patients are on this drug, and the benefits are very lengthy. That word of mouth is actually increasing.

Very importantly is that our price has been maintained. We renegotiated our price for 2026 and 2027 to be the same as the original price.

One of the main reasons is all this robust real-world evidence and additional benefits that we're collecting data on. That's super important, that's great for a healthier population and differentiates our drug.

The reality is it's an only-in-class. If you look at the GLP-1s, which is exceptionally hot, there's many in class.

If you look at tirzepatide, you look at Ozempic, their daily price is not very far from our daily price. More likely than not, it may go down because there's other companies with GLP-1s that are coming out in orals as well.

I would go and challenge you to find another type 2 diabetes drug that isn't focused on weight loss that has the profile that we have. With additional data, I think this kind of growth will continue as we build our sales force, and as we go deeper, and especially as patients see these uses, the doctors see the exceptionally good uses of our drug, the beneficial profile, and also in combination as Dr.

Chen has shown. These combinations indicate that in combination, they work much better than either of those drugs alone.

Far, we have not encountered any drug that we cannot be used in combination with. It's a fantastic result.

A lot of confidence in that revenue growth, and we're looking forward to this kind of continued wonderful back wind. On the gross profit with scale, we're building the same drug, and when you just increase the scale through STA and Asano, it's going to be cheaper by unit.

It's just as simple as that. We're going to be targeting somewhere close to the 70% when we hit peak sales, maybe even above that, but we'll see.

On selling expenses, we've increased, right, our own sales team. As I mentioned, there's still provinces that we haven't touched yet, we're continuing to grow.

From a board perspective, we're fairly comfortable at this level. We told you in March that 29 seemed like an underinvestment, but we kind of wanted to see where we were with our team.

We've had some changes in our team at the soldier level, but the senior leadership continues to be very strong. We're upgrading, and we're making investments, and I think we'll maintain in this 33 to 35% going forward.

For your models, I would think that this is going to be pretty stable. Next slide.

R&D we've kept pretty tight, and if you look at what Dr. Chen has talked about, and you go back to that pipeline chart when you get a chance, right, you'll see the only one that actually could potentially be larger, is actually this FDC, fixed-dose combination.

That's actually just really demonstrating bioequivalence, right? It's not like a large-scale Phase 3 trial that we've had to go through.

You're not going to see this really increase. All those other ones you saw are kind of proof-of-concept Phase 1, Phase 1b.

They're not going to be larger than 30, 50 patients. In terms of our R&D expenses, we're exceptionally efficient, but we're actually going to broaden.

As Dr. Chen mentioned, we're going to go into these first-in-disease areas, which it's first-in-disease, like prevention, prediabetes, MCI, right, mild cognitive impairment, which is basically early-stage Alzheimer's.

Nobody's working on that from a metabolic perspective. This year, two of the largest readouts probably globally in the pharmaceutical space is in the Alzheimer's space, and it's in prevention.

Right, people have been talking about tau and removal of amyloids, etc. That didn't really work out that well, but actually prevention, actually going early, works really well.

For us, it's the same strategy, right? We know that people with diabetes are predisposed to actually these neurological disease.

Why not treat that in advance? We're very, very confident about that our drug, we know is safe, will it provide this extra benefit, and that is a huge, huge benefit and huge market that we could potentially see.

On administrative expenses, we're going to maintain this tight. We don't need to increase this that much, but of course, when we've gone from 150 employees when we started with only one sales person to now we're over 200, close to 250, that's going to increase a little bit, but we're going to be pretty tight on this because Dr.

Chen and my KPI is actually on profitability for the whole company, right? We're very focused on making sure that when we're hiring into these that's not front-facing, that we're being efficient.

We're very excited that we're probably ahead of schedule from a company perspective in terms of break-even. Let's see, but so far, you can see on the next slide, from our business and our commercialization efforts, right, we're already quite profitable, right?

It doesn't include those two from the previous slide, right, the R&D and the administrative costs. As we get higher and higher, right, with an increase in sales and efficiencies with scale, right, our commercialization efforts is going to actually allow us to harvest even more profits.

You can see this on our net profit perspective, quite tough as we're investing with only one product in a very competitive space, but thank goodness our price remains the same, that our net profit for the whole organization has improved from a loss of almost 60 to 30. That's a 100% improvement or 50% cost, however way you want to look at it from a math perspective.

This is a great thing that we're going to see, and hopefully, we're going to get close to zero by the end of the year. That's what we're kind of targeting.

That's not actually what we had guided, but it looks like trends are looking pretty good towards that way. Next slide.

Then our cash, right? Our cash, we look at this at a gross cash.

This is not a net cash. We have some loans, around 300 million or so for this same period.

In terms of gross cash, this is what we've been reporting. You can see that our cash position remains really, really strong, right?

Effectively the same as we went public late in 2018, and we've been very frugal and efficient. We are looking to invest specifically on the second-generation GKA.

We'll be doing additional things, and there's some potentially promising targets. We'll just say they're promising, they're identified.

We're hoping to negotiate on in-licensing some other compounds, specifically one that could be quite exciting, hopefully making an announcement in the second half of 2026. More news to come on that.

Cash position-wise, no problem, especially as you see we're becoming more cash flow positive. Next slide.

This is the end. Just to summary up quick so that we can go to any questions.

A lot of people ask about our forecast. We're not giving forecasts, but if you do the math, right, and you look at our options in order for them to actually vest, we need to hit about 900 million.

We're going to be striving very hard to do that. That's just the facts.

We're going to launch in Macau. I think from Dr.

Chen and my perspective, this is not actually a numerical number. Many provinces in China alone is more than the combined diabetics, and they're at a reimbursed price.

It's important to be able to wave this franchise glucose homeostasis both in English in Hong Kong, and also in Portuguese in Macau. This is really kind of a window dressing, but it's important also for our BD perspective.

The FDC, the fixed-dose combination we talked about, we're going to probably file this NDA sometime in 2027. That's not going to be that much expenditures.

It's not what you would expect. We already have a lot of data that's very, very promising already, starting from our Phase 3 and even our Phase 1 in the United States, where at least those combinations just yield really, really great results when these two great oral drugs are combined in a fixed-dose combo.

One of our most anticipated readouts will be the Phase 1b MAD of second-generation GKA. The last cohort that Dr.

Chen was talking about is effectively double the dose of current HuaTangNing, dorzagliatin. We're looking for even sharper reduction in HbA1c than what we see now in the real-world evidence studies that are actually even better than our reported Phase 3.

It keeps on getting stronger and stronger as we go. First-in-disease indications, IND filings for both MODY 2 and frailty, and then the real-world study is just going to keep on going.

As I mentioned, from a BD perspective, really focus on out-licensing, finding a good partner for our second-gen after our Phase 1b US MAD study, and then also potentially bringing in this identified in-license opportunity that should be quite exciting. A lot of exciting near-term and long-term milestones for investors to look at and track us.

I think with that, Dr. Chen, if you've got any other closing remarks, we can probably go to Q&A.

I think this was a very good year and then a very exciting opportunities to continue dorzagliatin, the first global-in-class and also disease-modifying therapy, wonderful market opportunities there as long as we continue to bring the best people into this process and adding AI agents to support our growth. We are not going to limit it to the commercialization success, and then we are going to expand our R&D success and then with a new product and new indications come in to next year and so.

We are looking forward to continue working with the investment communities and then driving the healthcare value to the next level. Thanks.

Matthew?

Okay. Thank you, Dr.

Chen and George, for the detailed presentation. Let's move on to the Q&A session.

For investor, if you have any questions, please feel free to press the raise hand button, and then we will unmute you. Or either way, you can type your questions in the Q&A box, and so we will ask on your behalf.

Thank you very much. While we are waiting for any questions online, I've got some questions from my side, from the investor.

First is regarding, yeah, just on this page is now we are very glad to see this year's top-line revenues should be close to 1 billion, right? Now you're set at 900 million, and also that's very reasonable if you're factoring the first half's trend.

Also, there's a mention that you would be hiring more people, right, because of this sales momentum. For 2027, I think previously you have a guidance of 1 billion sales RMB.

Are we going to update that guidance already or not?

We probably will not update those. Matthew, I don't have it with me.

I should. It's kind of embarrassing.

It is filed, right, with the Hong Kong Exchange, what each year our stock options, in order for them to vest, needs to hit. I think those numbers are probably the most realistic, because that was quite a fight and quite engineered.

Dr. Chen and the team obviously came up with a reasonable number.

I would say the board asked for a stretch number, and so I would go back and look at that. I think it will probably exceed 1 billion with the trend that we're going.

Again, this is very different from all the other companies, frankly, that you cover, right, with life-threatening diseases like cancer, tons of other drugs in the pipeline chasing that first-in-class, and so that allows the reimbursement regime to really press down and add pricing pressure. With us, there is nobody behind us.

How do we hire 280 people, 250 people, right, sales from scratch from 18 months ago is actually because a bunch of these big franchises, the MNCs with type 2 diabetes, they've actually suffered from VBP, from generic pricing. Then we've had a lot of people come from these MNCs, immediately seeing the writing on the wall, saying, "Hey, I want to jump to your drug because your drug is protected at least through the end of 2027, and you've got exclusivity until 2034, whereas the drug I'm on, as great as it is globally, in China it's subject to VBP."

I think this is kind of accumulating, and diabetes patients, we believe it's a life-threatening disease, but certainly it's not like cancer. It's kind of a snowball effect.

As more people use it and as long as it works, they stay on it. Why would I change it?

The doctors don't want to change it. It's too cheap to go and rediagnose and everything.

This kind of dynamic is very different from all these other cancer, which is super exciting, but very short Phase 3. This is where all the suffering, the long march Dr.

Chen and the team had to do alone. Nobody else so far is behind us in China.

I think this franchise is quite nice in that perspective. It's very nice in the chronic disease space to have reached this point.

Understood. Thank you very much.

Another question is on the R&D side. Because you just mentioned there's a potential combination with a lot of type of MOA, right, on different for MASH or THR-beta and not MASH and other kind of indications.

I believe you already have some clinical evidence already. I'm checking about this indication, would you move them into the late-stage development to have the official labels, or will it be more like a real-world study evidence circulate around physicians, and when they're prescribing the drug, who will be looking into different combination and then prescribe by themselves or something like that?

Actually, it's a different strategy for the new indications. Traditional drug, existing therapies cannot address the underlying the mechanism and the disease etiologies, pathological reasons.

Through the current combination, we may be able to make the diabetes or diabetes complication milder, or develop slower, so that we prolong the healthy lifespan. Then, and then, so that in now the China 15th Five-Year Plan in the, national health plan, we try to let people live healthier, live longer, right?

I think dorzagliatin through the combination of, with the other therapies, they can do that. If you look at at the neurodegeneration diseases, right, liver degeneration diseases, muscle degeneration diseases, in those factor, you actually need to address the energy supply issue, you need to Well, the energy, I mean glucose, right?

Glucose is the only energy source for human intelligence. Now, energy resource, storage, and also metabolism needs to be restored.

At the same time, we need to managing the inflammation, right? We need to managing In addition to inflammation, and then the energy management, also, we need to managing the impact from the outside, right, the virus and bacterias and so on.

Now, the reason we are conducting those preclinical studies with the novel new class of small molecules, right, is we're going to create a new molecule from those combinations or mechanistic combinations, and then targeting on more severe and then more, clinical needed disease, right? I think at this time, at the global level, ability of address neurodegeneration, whether it's Alzheimer's, whether it's dementia, whether it's in Parkinson's-related, I don't think we have a clue to how to systematically address this issue.

That's what Hua Medicine is doing. Through understanding the whole glucose homeostasis system, we've been connecting the glucose as the primary energy source and the primary sensory source for the endocrine, for the neural science, because glucose is the source of making neurotransmitters.

Also, it's important the source of T-cell sensory, right? It's generating the lipid raft that creating this fundamental T-cell sensory mechanism.

In addition to it's a energy source, this is a three other key function regulating our human intelligent management system. Then this is where, I think, the combinations is supporting us, the new combinations supporting us to getting to the next level of the care, right?

The traditional combination with the, the the the generic medicine now already on the market, people already know how to use it, physicians know how to use it. Adding dorzagliatin gave them additional benefit and then keep commercial growing.

That's the two separate approaches going to help reshape Hua Medicine.

Dr. Chen, I'd like to add one more thing.

Shirlene, if you could move back to our different combination synergies. One thing that's very exciting about the results that we presented at the ADA Yeah, this page.

We kind of glossed over very quick, but GLP-1 obviously is one of the most exciting things, right? We all know that there's GI and some sort of nausea and these things.

Maybe 70, 75% of the people respond to it. That's great, but what about the 25%, right?

The 25% feel terrible, right? Here comes a silver bullet that's going to work to reduce their weight, but it doesn't work for them because they feel terrible.

Both with orforglipron in mice, but also with semaglutide, we were able to show that in combination with our drug at much lower doses, we went from Dr. Chen, please correct me if I'm off, but around 70, 75% initial response rate at the regular dose of GLP-1, in combination with ours at a lower dose, you get to 100%.

Actually, on the semaglutide, you lost even more weight around the visceral area. Dose sparing is not just about saving money, it's actually much less tolerability.

Now why would this work? We saw in all our previous studies that actually what triggers GLP-1 endogenous release?

Glucokinase. We don't trigger as much with dorzagliatin, and that's one of the exciting things we're doing with the second generation.

We want to emphasize on that, just like the original GLP-1s, right? It wasn't enough, it took to the sixth or the eighth generation before it actually lost weight.

With dorzagliatin, not enough, but actually with endogenous and a much lower dose, which is makes it much more tolerable, it actually works just as well. This is actually a very exciting aspect as people use and look for different ways, not necessarily a label, but when you have half a million patients, everybody's going to be trying different things, right?

The drug is very safe, and for this population where GLP-1 is so high-profile and doesn't work for them, I think is actually very exciting. I think that group, and I think DKD and all the MODY patients, they've had no other choice.

To that extent, it's kind of a first-in-disease for those patients, right? I think that aspect, as it gets kind of used more broadly, I pray to God we don't get any hotline calls, and we certainly haven't, as long as it maintains its very good safety and tolerability and it keeps on getting widespread, doctors are going to pick up on it, patients are going to pick up on it, and it's reimbursed, and it's safe, and it works even more interesting in this way.

I think that is one aspect that we can kind of piggyback on other drugs and actually make them even better.

Thank you. Let's see if that there are any questions online.

One more question is on on on the there's a slide that you mentioned on the AI to empower your business, and there's a mention of a GK brain. Just on this, could you share more provide more color on this GK brain?

How is it different from before that in terms of helping you to improve efficiency of R&D? Also, and George, do you have any with this tool, do you have any actual number coming out from this AI tool that would help you save your as or any any of the expense line on this?

Yes, thank you.

It's not expense. Dr.

Chen can talk about that. It's not expense.

It's actually there's just too much information. If you're a doctor that can't get in touch, right, we only have 170 sales people, how do they get the information?

The first thing they'll do is they'll go to an AI engine. Actually, our sales people now actually have all this information that just gets smarter and smarter so that they can actually go ahead and present case studies.

Dr. Chen, there was an internal figure, right, where because our sales people are new, right?

They got to get new to it. How can you accelerate that knowledge and leverage everything you learned, let's say, in Shanghai, Tianjin, and Beijing?

Those are our top provinces. Tons of information.

If they go to Hubei or Henan, right, further out in Yunnan, that it's probably less knowledgeable. How does that sales person use that information?

Then once you say it, right, just like us, you've known us, you took us public as well, right? The information and the substantiation now is much more than when it was just a theory that this is a glucose stat, and trust us, it'll work.

Now there's half a million patients, and it's all working wonderful. Dr.

Chen can give more on the R&D, but also explain more on how our sales force is using it.

This is basically very general concept from the large language model which is generically used across board. Then what we've been doing is doing the vertical integrated knowledge-based large language model.

It happened to be we've been doing the digital management platform for a few years already. Using glucokinase knowledge system and then the glucose homeostasis system that accumulated by Hua Medicine and also Franz Matschinsky and then global leaders in the publication, private communication, and then discussion notes, and so on, we've be able to create this GK brain.

That's where we have internal information and resources and then knowledge base across our last 10 years of knowledge, and then extended beyond the last 10 years as Roche's knowledge in the drug discovery. That, in come together with our clinical practice, drug discovery practice, and then start to enforcing this AI to learn differently from the external resources where they primarily based on the accessibility of the public knowledge.

This is public knowledge plus internal proprietary knowledge that build in to this knowledge base, what we call the GK brain. In this case, we have been discovered the opportunity for MCI, the early Alzheimer's diseases, the frailty, and then several other indications that we're now developing and then doing the patent protection, which the knowledge connection in the space is showing on the right hand of the picture, which is what we call the artificial intelligence for human advance, that connecting the interesting and critical functional units in their own relationship with the other functions so that gave us the information for us to create the knowledge, right?

That knowledge can be used for the medical marketing, for the communication, for the assets evaluation, and then also we help the whole company-based publication and then internal documents extractions for the help in the basic research and the medical research. This is become a common practice.

Every employee open up the computer, right, the front page pop up, the agent's there, and you can asking any needs through that platform. Then it's just a natural operation progress at Hua Medicine.

Then till this year, we felt that it is so important to let our frontline people, employee to access those internal information and convert it into the productivity. That's where we developing the cell phone-based, handheld-based tools in the agent formats so that they can use it at the day in, day out.

The first month after launch, we'll get 6,000 applications and visits, and over 10,000 question related to the very practical, but very important interaction between our staff with the medical community. That's what we've been doing.

I think with the further advancement of the AI platform technologies, I think this is going to be used more broadly. The other part is using AI to design new drugs.

We are looking for design new molecule with multiple functions to treat degeneration diseases, which is very challenging from design those functional gain diseases like cancer, right? For the function loss diseases, it's usually caused by the degeneration of the protein or gene functions as we aging or as we have unhealthy conditions.

The requirement require much more precise diagnosis and then the treatment. I think with the collaboration now Dr.

Juliana Chan in Hong Kong looking through the tools in the human genetics and then we can perform the prediction for the better treatment, and then precisional medicine approach going to be broadly utilized in the chronic diseases, not only used in the cancer treatment, which has been a good practice for the last 20 years, starting while I was at Roche, we started personalized medicine for cancer. Hua Medicine is the first organization really developing the personalized diabetes care, and then our first paper published in 2017.

Then there will be more to come as the computation power increased, and then our potential collaborations with the leaders in the human genetics. Hope this all will help.

Sure. This is very helpful.

Thank you very much. Because our call is almost an hour, let's check if there are further questions online.

Please feel free to press the raise hand button. Then we will unmute you.

There are no further questions. Dr.

Chen, do you have any closing remarks, and then we can conclude today's call? Thank you.

Right. Thanks for all the investors' support Hua Medicine.

I think we are getting the company into a stage-two development from a single drug, dorzagliatin, also is a very wonderful drug, now into the phase two where using glucose homeostasis platform and then come up with multiple products, and then integrate our capabilities in the drug discovery, the development, production, and commercialization, and then drive the healthcare forward. Thank you.

Thank you very much. Thank you, Dr.

Chen and George, for dial in, and thank you for investor who joined. If you got further questions, please feel free to reach out to the Hua Medicine's IR team, or either way, you can reach out to us.

Thank you very much, and have a nice day. Bye.