Good day, and thank you, for standing by. Welcome to the Burning Rock’s 2023 Q1 Earnings Conference Call. Before we begin, I’d like to remind you that this conference call contains forward-looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, targets, confidence, and similar statements. Statements that are not historical facts, including statements about Burning Rock’s beliefs and expectations, are forward-looking statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock’s control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Burning Rock does not undertake any obligation [Technical Difficulty] forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference call is being recorded. With that, I would now like to turn the call over to your first speaker today, Mr. Han, CEO of the company. Thank you. Please go ahead.

Thank you. Welcome to Burning Rock’s 2023 Q1 conference call. I’m Yusheng Han, the CEO and Founder of Burning Rock. So today, we also have our CTO, Joe Zhang; and CFO, Leo Li online. So before the presentation, I would say that, this quarter's data, although not a lot of new information, but very important information and making us exciting. So let's turn to Page 3. In case, there are some investors who are not very familiar with Burning Rock, I hereby illustrates, what we do. So our business started from tissue based therapy selection and then expanded to multi-directions of a liquid biopsy, including liquid-based therapy selection, MRD, and multi-cancer early detection. We have three business units providing products, and services to doctors, pharmas and consumers. So let's turn to Page 4. We set up our goals of 2023 and reported to the investors three months ago. The number one goal is profitability, that is -- the goal we set is to breakeven excluding R&D during the quarter in 2023. And the second goal is continued revenue growth, a healthy increase with profitability is what we want to achieve and our initial outlook for 2023 revenue growth rate is at 20%. And the third goal of -- is to further our leading position in multi-cancer early detection as the number one player in China and a top player globally, and the main R&D spend will focus on multi-cancer early detection. So let me break down the goals in four parts. So for therapy selection, we will continue to improve the sales productivity by strengthening the in-hospital model and for MRD launch install, personalized MRD in top hospitals and due to the operation difficulties of personalized MRD, it is very challenging to install this method in hospitals. However, since more…

Thank you, Yusheng Han. And for our financials, we have two key metrics to track for 2023. The first one is regarding our breakeven profitability defined as non-GAAP gross profit minus SG&A and Yusheng walked us over these numbers as demonstrated on Page 5. So you can see them in our slide track and our slide pack. And we are on track to hit breakeven on this metric at some quarter during 2023. The second metric we track is top line growth. So profitability and top line growth, two key metrics to track for this year. On growth, let's first visit our volume trend shown on Page 7. Our testing volumes achieved strong rebounds in March. Recall that in our previous results that we said January and February combined volumes were down 28% year-over-year. And we had a strong double-digit growth in March taking the whole quarter to down just 5% year-over-year. On a sequential basis, our volumes in first quarter was up 3% versus the fourth quarter last year and the strong rebound in March was led by the in-hospital segment, where we continued our lead in that channel taking further market share. And then, let's move to our P&L, which is shown on Page 8. First, on revenues, we grew our revenues by 5% year-over-year in the first quarter. Despite a very tough start in February -- in January and February, and we had very good results as Yusheng talked about in March. The continued delivery of pharma projects was the biggest contributor with Pharma segment maintaining its triple-digit revenue growth rate in the first quarter this year. In addition to strong growth rate in the current quarter, we have maintained good visibility into growth of the Pharma segment for the future. As we mentioned and Yusheng talked…

Thanks, Leo. So let's move to Page 11. So basically, this is a recap of the early detection business and the development milestone we achieved in past several years, including the paper published in Nature Biomedical Engineering in regards to the technology itself as well as major 6-cancer early -- multi-cancer early detection clinical study published in Annals (ph) Oncology this year in Q1. So basically, we also got the FDA breakthrough Device Designation granted as for the product multi-cancer early detection product. So the Page 12 basically lay out the road map of MCD product development so far. And right now, we actually actively develop in 22-cancer, multi-cancer early detection product, which is the upgraded version of the 6-cancer we already published in Annals Oncology (ph) earlier. There's a multiple different kind of trials named there, like PREVENT, just mentioned by Yusheng Han as well as a PREDICT and PRESCIENT, which is 22-cancer, early multi-cancer detection. On the Page 13, I'm going to skip this one basically just talk about the difference between the 6-cancer and 22-cancer. Page -- let's move to MRD business. So for MRD as a recap here, basically, MRD has -- on Page 16 basically talking about MRD test play a role for the multiple time points throughout the treatment journey, which is very important for early cancer of curable cancer patient. As you can see here, MRD can be used as a prognosis which is nice to have. Also, it has a lot of potential for actionable therapies guidance, including deescalate or escalate utilizing based on MRD status. And also, it has a lot of other utility has been listed here at different stages of treatment. So for Burning Rock, on Page 17, we basically -- we launched this product called brPROPHET as our…

And operator, let's open up for questions, please.

Certainly, we will now begin question-and-answer session. [Operator Instructions] We have a question from the line of Alexis Yan from Morgan Stanley. Please go ahead.

Thank you, Yusheng for taking the question. I just have a question on the commercialization of the MRD products. You mentioned that since early May, the MRD products started commercialization via the in-hospital channel as well. So I'm just wondering that could you share more color on its current, for example, hospital coverage so far? And also, if we look at the full year guidance of 12% revenue growth, how much of that roughly could come from the MRD portfolio? And also in -- probably in three to five years, any commercialization target that management could share at this stage in terms of either like sales target, market share, hospital coverage, et cetera? And second, just a housekeeping question. How has April and May performance been trending so far and has the recent many waves of COVID impacted our business? That's it for me.

The first question, I can ask Leo to take the line -- to Leo. So in terms of [indiscernible] MRD, the R&D for that is not easy. So that's why we launched that in May, I'm very proud of that. I think that we are the only one to provide in-hospital model of personalized MRD in the world. And the impact of that, the revenue, as I said, probably will start in Q4 because although, we have a large base of in-hospital model, hospitals. We still need to negotiate in attending tenders of different hospitals. So we know that the fastest period that you can win a chance to go into the hospital at this half year. So that's why I say that probably the impact will start in Q4 this year. If you wanted to see the main wave of MRD in-hospital model, I think that we at least need from now on at least one to two years to make [indiscernible] fully available in our hospitals. So -- but if you look at it in three to five years, we believe that MRD will be very important force, probably not less important than therapy selection because it covers most of the cancers and not limited to targeting drugs it can combine with chemotherapy targeting drugs and also immunotherapy. So what’s that second question?

Yeah. Let me address that. So our recent trends, I think it's premature to conclude about Q2 as we haven't even closed out for May. For April, there was no surprise. And we do benefit from a low base on year-over-year comparisons compared to last year. So I would say, April is on track, then we'll keep monitoring for Q2. But so far, no surprises.

Okay. That’s clear. Thank you.

Thank you, Alexis.

With that, there are no further questions at this time. I would like to conclude the call. Thank you for participating. That does conclude the call. You may now disconnect your lines. Thank you, management.