Good day and thank you for standing by. Welcome to the Burning Rock’s 2024 First Quarter Earnings Conference Call. At this time all participants are in listen-only mode. Please be advised that this conference is being recorded. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E 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, target, confident 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 to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. And now I would now like to hand the conference over to our first speaker today, Mr. Han. Please go ahead.

Thank you. Welcome to Burning Rock's Q1 conference call. And I'm the CEO and Founder of Burning Rock, Yusheng Han. And today you also have our CFO Leo Li and our CTO Joe Zhang online. So today we'll go through our Q1 financial report. Let's turn to page three. There's a brief introduction of what Burning Rock is doing. We started from therapy selection in 2014 and then expanded to multiple areas, including early detection, MRD, and biopharma services. So we know that in our past two years we tried very hard to improve our capability of being to be profitable and we have made a lot of efforts. So if we turn to page four that is what we have done in a past one quarter basically we are driving our sales efficiency to a better level and we are improving our gross margin and there will be data show later on. And then we reduced our G&A expenses to a better level. And also, the R&D -- reduced the R&D expense, so that -- to make the order company to getting more profitable. And let's turn to page five. That's the result, the financial result of different quarters in the past two years. We have seen that in Q2 2023, it was the first time that we get the results of gross profit minus SG&A to be positive. And because of the unknown unexpected industry turbulence, so in Q3 and Q4 in 2023, we suffered from the profitability. But now things are getting to normal and we have seen that in Q1 2024, we're getting a return to profitable again. And that's a very good sign for Burning Rock. And we will try our best to make the number bigger and bigger until the whole company cash flow becomes in the future. And in terms of the detail of what we have done to make the company profitable, I would turn to our CFO Leo Li to explain that. Leo?

Thank you, Yusheng. So as Yusheng mentioned, we continue to make progress in the first quarter, and I'd like to elaborate on specific expenses lines going forward. So let's go to page six. This is the most important item in our striving our operating efficiency. You can see that the latest quarter, we achieved sales and marketing expenses as a percentage of revenue at 35%, that is a historic low or the most efficient quarter in our recent operating history. You can see that we've come a long way in the middle of 2022 and that is driven by a lot of the hard work for my sales and marketing team. So we are delivering on the risk result and this improving sales and marketing efficiency is what underpins our improving operating profitability, that is the most important factor behind the trend. Then going forward on page seven, we talked about our gross profit margin in our previous call. We continue to make progress and there is no material update on this matter in this quarter. Then going to page eight, looking at our general and admin expenses. In our previous quarterly call, we talked about reduction of headcount, reduction of office space, and other fixed operating footprint that we have carried out that drops, that reduces our G&A expenses. We mentioned that we continue to expect further savings into this year, so you can see that in the first quarter we have achieved a significant drop in this quarter, compared to the same period last year. So the factors that we mentioned before they continue to give us additional savings and we will keep working hard at reducing our operating footprint. We like to also make comments on our cash position, which is shown on page nine. We ended…

Thank you. That concludes our conference for today. Thank you for participating, you may now all disconnect. Have a nice day. End of Q&A: