ZHAOKE OPHTH expects that the three core products will be approved successively, driving sales growth and helping to narrow losses continuously

ZHAOKE OPHTH (6622) Chairman and CEO Li Xiaoyi stated that with the approval of three core products, the company will "fully transform into a commercialized company" in the second half of this year. Li Xiaoyi mentioned that with more products being launched, ZHAOKE OPHTH's financial performance is expected to improve significantly, and R&D spending will become more prudent and efficient, with losses expected to continue to narrow. He added that the company currently has nearly 1 billion yuan in cash and places a high emphasis on cash flow, stating that "below 1 billion yuan is concerning," thus hoping to achieve cash flow self-sufficiency as soon as possible without relying on a long-term cash-burning model. Cyclosporine Eye Gel Expected to be Approved for Market in 3 Months Li Xiaoyi stated that the registration progress of the company's three core products is smooth, including the cyclosporine eye gel, which has entered the final approval stage and is expected to be approved for market in the next 2 to 3 months; the low-concentration atropine is also progressing smoothly, with a vast market space, as existing companies have sales reaching over 1 billion yuan, "this is just the tip of the iceberg"; as for the TAB014 for treating age-related macular degeneration, it is also expected to be approved within 3 months, with excellent clinical data and the potential to be included in medical insurance, benefiting from the aging trend in mainland China, with broad market prospects. Increasing Sales through Private Hospitals and Optical Stores Regarding domestic channel layout, Li Xiaoyi stated that the company is advancing through both public and private lines, with public hospital access taking about 6 months. The company will leverage private hospitals, vision centers, and optical stores to quickly increase sales, where the combination of atropine and defocus lenses can achieve "1 plus 1 greater than 2," considering that the penetration rate in the myopia prevention and control market is less than 5%, indicating huge growth potential. He further mentioned that the company relies on Nansha Internet Hospital to strengthen patient management and collaborates with e-commerce platforms like JD.com, with glaucoma medications already achieving online sales, and product pricing will be close to market mainstream, emphasizing comfort and efficacy advantages. Additionally, he stated that to support commercialization, the sales team "will expand to over 100 people by the end of the year." Expanding into the South American Market This Year with a Goal of Recording Overseas Revenue by 2028 In terms of overseas layout, Li Xiaoyi said that the company has completed the establishment of cooperation networks in Southeast Asia, South Korea, Australia, and the Middle East, with "this year focusing on breaking into the Latin American market," with Brazil as the core breakthrough point, aiming to start achieving overseas product sales revenue by 2028, with a long-term goal of having overseas revenue account for 50%. He also mentioned that the company is collaborating with American companies to develop and produce drugs, with "global rights belonging to ZHAOKE," and plans to obtain GMP certification in the U.S. and Europe within 12 to 24 months. He noted that the cyclosporine eye gel has completed communication with the U.S. Food and Drug Administration (FDA), and the presbyopia product plans to leverage the Greater Bay Area's "Drug and Device Integration" and Hainan Boao for pilot trials. R&D Policy Will Shift to Prudent and Efficient Investment Regarding R&D, Li Xiaoyi stated that the company will focus on high-value areas, with the new drug PAN-90806 approved for clinical trials, "expected to take two years to tackle the corneal toxicity issue," with the hope of extending the interval of intravitreal injections from 2 to 3 months to 6 to 9 months. Li Xiaoyi emphasized that future R&D will "implement prudent and efficient investment, avoiding large expenditures as much as possible," and the scale of clinical trials will also be significantly reduced to cope with the industry pressure where the clinical cost per patient has exceeded 40,000 yuan Li Xiaoyi stated that the industry environment continues to improve, the centralized procurement policy is becoming more moderate, and the Guangdong innovative drug catalog has significantly lowered the entry threshold. He specifically mentioned the atropine market, which faces high dropout rates and ethical challenges, with only a limited number of the 28 companies involved being able to implement their plans, while ZHAOKE OPHTH has a first-mover advantage