Beijing Northland Biotechnology Co., Ltd. (stock code: 430047, stock abbreviation: NORTHLAND) successfully held its 2024 semi-annual earnings briefing on the afternoon of September 2, 2024. The purpose of this meeting was to provide investors with a comprehensive overview of the company's operating performance, financial condition, and future development plans for the first half of 2024, thereby further enhancing investors' understanding and confidence in the company. The meeting attracted participation and attention from representatives of more than 50 institutions and individual investors, achieving positive results in communication and exchange.

At the meeting, Mr. Xu Songshan, Chairman of the Board, on behalf of the Board of Directors and the management team, extended a warm welcome to the shareholders and investors in attendance and expressed his gratitude for their long-term support and trust in the company. During the meeting, the Chairman provided a detailed overview of the company’s business performance for the first half of the year as well as its future development plans. The company’s management team thoroughly addressed questions raised by investors regarding the company’s R&D progress, financial condition, market prospects, and other key areas, offering a comprehensive presentation of the company’s current operational status and future plans.

        I. China’s first naked plasmid-based gene therapy drug has achieved a key breakthrough.

The company’s core business spans two key areas: biotechnology drugs, primarily gene therapy products, and ophthalmic drugs. The company has been dedicated to biotechnology drug R&D for 20 years. With the significant breakthrough achieved in the first domestically developed naked plasmid-based gene therapy product, NL003, in the first half of this year, the company is now in the final stretch of its transition from a pure biotech firm to a biopharmaceutical company. NL003 completed the unblinding of Phase III clinical trial data for two indications—one in February and the other in August of this year. All primary efficacy endpoints met expectations, and the treatment effects were remarkably robust, further confirming the drug’s efficacy and safety. Currently, the NDA for NL003’s ulcer indication has been submitted and is undergoing review. In addition, the clinical trials for the resting pain indication are progressing smoothly, and the relevant application is expected to be completed within this year. Based on these impressive clinical study results, the company is highly confident in the regulatory review and approval process for NL003 and is fully committed to coordinating and arranging subsequent review activities. Other ongoing new drug projects at the company are also steadily advancing according to the established timelines, demonstrating strong R&D capabilities and excellent project management skills.

II. Enhanced performance in the ophthalmic pharmaceuticals business demonstrates the effectiveness of our dual-drive strategy.

In the first half of 2024, the company achieved total operating revenue of 35.974 million yuan, primarily from sales of ophthalmic pharmaceutical products and service revenues, representing a year-on-year increase of 24.80%. Although net profit attributable to shareholders and net profit excluding non-recurring items remained in the red, they showed significant improvement compared to the same period last year, decreasing by 81.654 million yuan and 31.907 million yuan, respectively. The net cash flow generated from operating activities also increased by 5.7152 million yuan over the same period last year. The rapidly growing ophthalmic pharmaceutical business has seen its performance improve year after year, and the company has gradually established an integrated management team and system covering R&D, production, and sales. The company is stepping up efforts to upgrade its technology and expand its production capacity, investing in the renovation of existing production lines and the construction of a new single-dose production line with an annual capacity of 120 million units. This new production line is expected to begin operations in October of this year, providing a solid foundation for the company’s rapid development. The impressive results in both biotechnology-driven drug R&D and ophthalmic pharmaceutical operations demonstrate the effectiveness of the company’s dual-track development strategy—simultaneously advancing both biotechnology drugs and ophthalmic pharmaceuticals.

3. The market outlook is promising, and capacity expansion and R&D are accelerating.

NL003, a gene therapy drug independently developed by the company, holds great market potential in the field of severe lower-limb ischemic disease (CLI). Currently, this field primarily relies on surgical interventions for treatment. The introduction of NL003 will offer a completely new therapeutic approach, addressing unmet needs that existing treatments have yet to fulfill. Moreover, compared to surgical procedures, drug therapy is more convenient and does not require hospitalization, making it promising for further expansion into the treatment of mild cases. Meanwhile, as consumers place increasing emphasis on eye health, China’s ophthalmic pharmaceutical market is experiencing rapid growth. The company has already built up a robust pipeline in the ophthalmic drug sector, covering conditions such as myopia, hyperopia, anti-infectives, glaucoma, cataracts, and dry eye syndrome, and is steadily advancing these projects according to its R&D plans and industrialization progress. The company stated that in the future, it will continue to increase R&D investment, accelerate capacity expansion to ensure a stable market supply, and coordinate and expedite the progress of key projects under development. At the same time, the company will actively expand its market presence, enhance brand awareness, closely monitor industry trends, strengthen external collaborations and exchanges, and continuously improve its core competitiveness.

4. Fully accelerate the industrialization and commercialization of biopharmaceuticals, and steadily transition toward becoming a biopharma company.

The construction of the company’s biopharmaceutical industrialization base is progressing smoothly. The project is being built strictly in accordance with GMP standards to create a high-level production facility, and it is also achieving digitalization and intelligentization in both production and operations. In the first half of the year, the main structural work and installation of some equipment were completed. Currently, bidding processes are underway for workshop purification projects and digitalization initiatives. Meanwhile, in response to the upcoming launch of the company’s first product, the company is actively preparing for the commercialization of NL003. We are conducting in-depth research with our partners on commercialization strategies, establishing a pharmaceutical marketing system, and have decided to set up a branch office in Shanghai. With Beijing and Shanghai serving as dual hubs, we are building a comprehensive pharmaceutical marketing network. The steady advancement of the company’s efforts in biopharmaceutical industrialization and commercialization has enabled us to take a solid step toward transforming from a biotech company into a biopharmaceutical company.

The successful holding of the company’s 2024 semiannual results briefing not only showcased the operational achievements and strategic effectiveness of the first half of the year, but also provided investors with an opportunity to gain a deeper understanding of the company’s development. Looking ahead, NORTHLAND will continue to adhere to market demand orientation, take technological innovation as the driving force for development, accelerate the transformation of its core businesses, optimize management, and strengthen the construction of its compliance system, thereby promoting the company’s stable, compliant, and healthy development, generating positive economic benefits, and soon rewarding employees, shareholders, and society. The company looks forward to working hand-in-hand with investors to jointly create a bright future.