According to the announcement, the R&D expenses decreased mainly due to the equity-settled share-based payment expenses related to the company's R&D employees who have service period provisions reduced by RMB 17.3 million; third-party contract costs decreased by RMB 16.7 million, due to the cost reduction caused by the main clinical endpoints of RDN products being reached in 2023, and the cost reduction generated during the six-month period ending June 30, 2024; and depreciation expenses decreased by RMB 3.5 million, due to the sale of long-term assets in the second half of 2023.

The announcement stated that the reduction in R&D expenses was mainly attributed to a RMB 17.3 million reduction in equity-settled share-based payment expenses related to the company's R&D employees who have service period provisions; a reduction of third-party contracting costs by RMB 16.7 million, which was due to the major clinical endpoints of RDN products being reached in 2023 and the cost reduction during the six-month period ending on June 30, 2024; and a reduction in depreciation expenses by RMB 3.5 million, which was due to the sale of long-term assets in the second half of 2023.