A：Today's meeting will be divided into two parts. Firstly, the management will introduce the mid-term performance and business development of the company in 2025. Then we will move on to the Q&A session. The company's core businesses are developing in a balanced manner, with wealth management, corporate financing, and investment management being particularly outstanding, driving commissions, fees, interest, and trading investment income to rise across the board. In terms of business highlights, the company is actively building comprehensive service capabilities in the field of digital asset-related businesses, forming a full-chain coverage including trading and consulting, agency, issuance, and distribution. The wealth management business is developing rapidly, with branch revenue accounting for 32%. In addition, Hong Kong stock commission income skyrocketed by 131%, investment banking underwriting business income significantly increased by 85%, and the company holds the market-leading position in multiple business rankings.

A：The analysis of the company's income situation shows that in the first half of 2025, commission and fee income was 541 million Hong Kong dollars, an increase of 57% year-on-year. This was mainly driven by a 46% year-on-year increase in brokerage business income, especially notable performance in Hong Kong stock commission income. Underwriting business income increased by 85% year-on-year, and asset management business income also increased by 110% year-on-year. Interest income increased by 9% year-on-year to 1.196 billion Hong Kong dollars, and trading investment income was 1.028 billion Hong Kong dollars, an increase of 52% year-on-year. There were changes in current assets, total assets, and total liabilities of the company, but the net asset total amount was 11.55 billion Hong Kong dollars, an increase of 3.5% compared to the end of 2020. The structure of the balance sheet continues to be optimized, with sufficient liquidity resources to support further business development. At the same time, the company adheres to a stable profit distribution policy and proposes to distribute a mid-term dividend of five Hong Kong dollars per share, with a dividend payout ratio of 87%.

A：In the first half of 2025, Guotai Junan International adhered to a prudent and pragmatic business philosophy, achieved synergistic supply of core businesses and high-quality growth through strict risk control and comprehensive enhancement of diversified business capabilities. In the first half of the year, the company achieved total business revenue of 2.825 billion yuan, an increase of 30% year-on-year, reaching a historical new high since the establishment of the company. After-tax profit reached 550 million Hong Kong dollars, an increase of 182% year-on-year, achieving a significant increase in profitability, with annualized ROE increasing to 7.3%.

A：In the first half of 2025, the Chinese economy ran steadily, and financial cooperation between Hong Kong and the mainland deepened, driving strong performance in the Hong Kong stock market. The Hang Seng Index closed at 20,072 points, up 23% from the beginning of the year, and the Hang Seng Tech Index rose by 22%. The average daily trading volume of Hong Kong stocks in the first half of the year reached 240.2 billion yuan, up 148% from the same period last year, and market activity significantly increased. Additionally, there were a total of 44 new IPOs in the first half of the year, an increase of 47% compared to the same period last year, with IPO financing amounting to over 100 billion Hong Kong dollars, an increase of approximately seven times from the same period last year.

A：The company attaches great importance to market value management and implemented a share repurchase plan at the beginning of last year. Currently, the long-term issuer ratings outlook for both DAA two and DBD provided by Standard & Poor's are stable, ranking the company at the top among Chinese financial institutions in Hong Kong.

A：In terms of business development, we have adopted a strategy of diversified products and services. Our family office services cover family trusts, medical services, children's education, insurance services, etc., and have expanded to 113 external asset management institutions, with assets under management reaching 3.7 billion Hong Kong dollars. The annualized return rate of bond investment funds is as high as 9.28%, ranking among the top in Chinese peer institutions; the annualized return rate of money market funds (USD and HKD) is also impressive, especially the USD money market fund at 4.53%. In addition, our comprehensive fund platform has become one of the first comprehensive fund distributors on the Hong Kong Stock Exchange, while optimizing the ESOP service chain, providing a comprehensive solution for equity incentives, and participating in the Bond Connect Northbound program.

A：As one of the first cross-border wealth management one-stop service overseas brokers, we support subscription in 14 currencies, including Hong Kong dollars, US dollars, Chinese yuan, as well as euros, Japanese yen, and Australian dollars. Guotai Junan has selected hundreds of low and medium-risk overseas funds and bond products for ordinary investors to choose from in the Nantong product pool, and dynamically adjusts the asset allocation. Our Jin Hong Global Pass APP continues to be upgraded, now supporting transactions in 16 markets, listing over 200 fund products, and user activity has increased by 1.4 times. At the same time, we provide differentiated financing and ecological services in full-cycle enterprise service management, and our bond business has performed well, with 150 project issuances completed in the first half of the year, totaling HK$258.8 billion.

A：In the first half of this year, we completed 12 transactions in refinancing projects, with the main underwriting scale reaching 7.566 billion Hong Kong dollars, ranking first. In addition, we provided financial advisory and compliance advisory services for more than twenty companies, and 18 clients have submitted applications for listing on the Hong Kong Stock Exchange. In terms of cumulative trading volume of on-exchange derivatives, we ranked first in the Chinese e-commerce sector with a volume of 145.8 billion Hong Kong dollars, fifth in the overall market, and received the Hong Kong Stock Exchange's award for outstanding trading volume in economic growth.

A：We are the first Chinese-funded securities firm that can provide a comprehensive range of digital asset related trading services. In 2023, we officially launched our digital asset business layout and have obtained various licenses, including economic operations of ETF futures companies, issuance and distribution of original products, and regulated securities trading. Our system supports direct buying and selling of virtual currency assets, and we have successfully issued the first batch of structured products. Next steps will involve further deployment to allow investors to complete transactions in a more convenient manner. At the same time, we also provide educational services for clients in virtual assets.

A：Guotai Junan International, as one of the earliest overseas Chinese securities firms to enter the digital currency business, has obtained its first virtual currency trading license. The specific data on virtual currency trading, such as trading volume and revenue, as well as the revenue and expenditure outlook for RWA business, have not been shared in detail by management through public channels. However, the company continues to explore deep integration in financial technology and digital assets, constantly improving its trading products and services capabilities, and is committed to providing investors with a secure, compliant, and professional digital asset experience, while capturing the growing demand for financial management.

A：From 2023, we began operating the licensing business of the digital industry. At the end of June this year, we successfully obtained the virtual asset trading license, allowing us to directly conduct virtual currency and stablecoin trading. This business has been warmly welcomed by the market, and since obtaining the license, our Assets Under Management (AUM) have reached 1.8 billion, with a trading volume of 6.5 billion Hong Kong dollars, generating nearly 10 million Hong Kong dollars in commission. We have also launched digital native bond issuances, and designed and issued some RWA asset portfolios based on web 2 to web 3 chaining to meet customer demands. Currently, we are selecting high-quality assets to provide virtual asset trading services that meet customer needs.

A：A decrease in interest rates does indeed have a certain negative impact on some income sources, such as a decrease in interest income from bank deposits. However, overall, I believe that the impact of a market interest rate decrease on a company's income and profits is mostly positive. The reasons include: Firstly, the company has already allocated a certain amount to the high-grade, high liquidity bond market, and a decrease in interest rates will bring in significant returns; secondly, the company's funding costs are high, so a decline in market interest rates will significantly reduce operating costs; thirdly, for some businesses such as measles, a decrease in market interest rates is expected to expand interest spreads and maintain or increase profit margins; fourthly, a decrease in interest rates may stimulate the growth of other businesses, such as increasing the demand for development financing, increasing market trading volume, etc., thus overall increasing the total volume and profit of the company's business.

A：In the first half of the year, although the company's total assets have decreased to some extent, it is mainly due to the phased adjustment of bond investment positions based on market trends and interest rate changes, aiming to control risks and optimize profits. In fact, the company's scientific asset scale is increasing, including the scale of customer financial products, shadow business, customer cash, and custodial customer market value. In the future, the company will adopt a steady expansion strategy, dig deep into customer needs, strengthen scientific guidance, enhance productization capabilities through cross-market and cross-regional service capabilities, and promote the growth of operating products, client custodial market value, and development financing scale.

A：In the second half of the year, the company will increase its investment in financial market services, especially in the field of digital assets, driving both web 2 and web 3 businesses, integrating the demand for both the real world and the virtual world. At the same time, the company will focus on customer needs, explore new business models, such as revitalizing customer assets through digital assets or RWA concepts, achieving 24-hour trading and returns. In addition, the company will leverage financial technology to achieve rapid development on a solid foundation.