BNR

• Sales and marketing expenses as a percentage of revenue reached 35% in the latest quarter, a historic low, driving improved sales efficiency.
• Gross profit margin continued to progress with no material update in the quarter.
• General and admin expenses reduced through measures like headcount reduction and office space reduction.
• R&D expenses were reduced.
• Achieved positive non-GAAP gross profit minus G&A in Q1 2024, ahead of the original half-year guidance.
• Cash position: Ended Q1 with RMB573 million cash balance. Cash outflow for 2024 is guided to be between RMB150 million and RMB200 million. Expect further savings in 2025 with a 3-year cash runway, eliminating immediate need for capital raising.
• Transition from central lab to in-hospital accelerated, with Q1 2024 seeing in-hospital revenue surpass central lab revenue.

• Cash outflow for 2024 is expected to be in the range of RMB150 million to RMB200 million.
• Aim to achieve positive non-GAAP gross profit minus G&A for the entire year 2024.
• Expect further cost savings in 2025, but no specific quantitative guidance provided at this stage.
• Has a 3-year cash runway, so no immediate need for capital raising.

In Q1 2024, the clinical business saw revenue up 4% quarter-over-quarter. A key development was the transition from central lab to in-hospital, with Q1 marking the first quarter where in-hospital revenue exceeded central lab revenue.