A：The management team attending this performance conference includes Dr. Yan Feng, Chairman and Executive Director of Guotai Junan International, as well as Mr. Zhang Xueming, Chief Financial Officer of Guotai Junan International. The conference process is divided into two parts: first, the management team will introduce the mid-term performance and business development of the company for 2025, and then proceed to a question and answer session where participants can ask questions through phone calls or online messages.

A：In the first half of 2025, Guotai Junan International adhered to a prudent and pragmatic business philosophy, achieving a total revenue of 2.825 billion yuan, a 30% increase year-on-year, reaching a historical high in mid-term revenue since the establishment of the company; achieving a post-tax profit of 550 million Hong Kong dollars, a 182% increase year-on-year. Profitability has significantly increased, with an annualized ROE of 7.3%. The company's core businesses have developed in a balanced manner, with outstanding performance in wealth management, corporate financing, investment management, and other areas, driving a comprehensive increase in commission fees, interest, and trading investment income.

A：In the first half of the year 2025, the Hong Kong stock market performed strongly. The Hang Seng Index closed at 20,072 points, up 23% from the beginning of the year, while the Hang Seng Technology Index rose by 22%. The daily average turnover of the Hong Kong stock market in the first half of the year was 240.2 billion yuan, a year-on-year increase of 118%, with a significant increase in market activity. There were 44 new IPOs, an increase of 47% from the same period last year, with a total financing amount exceeding 100 billion Hong Kong dollars, an increase of approximately seven times compared to the same period last year.

A：In the primary bond market, the total issuance amount of money bonds in the first half of the year increased by 28% year-on-year; in the secondary market, the total yield index of Chinese US dollar bonds with high yields and new bonds rose by 6.12%, while investment-grade bonds rose by 4.13%. In addition, the Hong Kong Interbank Offered Rate (HIBOR) has been rapidly declining since May, with HIBOR closing at 0.73% on June 31, a decrease of 346 basis points from the beginning of the year.

A：Specific highlights of the financial data include: commission and fee income of HK$541 million, a 57% increase year-on-year, mainly driven by significant growth in brokerage business income, especially in Hong Kong stock commission income; underwriting business income increased by 85% year-on-year to HK$165 million; asset management business income increased by 110% year-on-year; interest income increased by 9% year-on-year to HK$1.196 billion; trading investment income of HK$1.088 billion, a 52% increase year-on-year.

A：As of June 30, 2025, the total assets of the company were 122.01 billion Hong Kong dollars, a decrease of 6% from the previous year-end; total liabilities were 106.461 billion Hong Kong dollars, a decrease of 8%; the total net assets were 11.55 billion Hong Kong dollars, an increase of 3.5% from the previous year-end. The decrease in the company's asset size was mainly due to adjusting the fixed income securities investment positions according to market and interest rate changes to control risks and enhance shareholder returns. Nevertheless, various assets of the company achieved some growth in the first half of the year, with a reasonable proportion of liquid assets, adequate liquidity, and good asset quality.

A：As of the end of June, the company's liquid funds amounted to HK$62.7 billion, with double loans accounting for 46% and medium-term notes accounting for 12%. The company's bank credit lines amounted to HK$100.412 billion, which increased by 6.59% compared to the end of last year, with an actual utilization rate of 16%. In terms of dividends, the board of directors proposed a mid-term dividend of HK$5 per share, with a dividend rate of 87%, maintaining a stable profit distribution policy and sharing the company's operating development results with investors.

A：The company attaches great importance to market value management, and implemented a share buyback plan at the beginning of last year, which has achieved significant results. Currently, the company's market value has reached 50.2 billion Hong Kong dollars, and the market value has significantly increased. At the same time, the company's credit rating remains good, and has received stable long-term issuer credit ratings from Standard & Poor's DAA two and DVD plus for ten consecutive years since 2016, ranking among the top tier of Hong Kong's Chinese-funded financial institutions. As one of the first cross-border Wealth Management Connect one-stop service overseas brokers, we support subscription in 14 currencies, with a rich and diverse product pool. Meanwhile, Guotai Junan International Financial Management has selected hundreds of low-risk overseas funds for customers to choose from, and dynamically adjusts asset allocation to meet customer needs.

A：Development strategy includes strengthening cooperation between the headquarters and branches to enhance the coverage of issuer clients, focusing on the overseas financing needs of high-quality issuers to enhance market competitiveness; coordinating with national policies, actively participating in projects such as green bonds in the Greater Bay Area, providing high-quality DCM services throughout the entire chain, expanding coverage of international investors, and gaining in-depth understanding of their trading demands; at the same time, further expanding in the direction of the southbound channel, meeting the demands of domestic investors for overseas products, and fulfilling the duties of market makers.

A：Okay, next I will report on the development of our business. In the aspect of digital financial management, we adopt the approach of "diversification and innovation in parallel". This is mainly reflected in three aspects: firstly, diversified products and services, especially family office services, have expanded to include family trusts, medical services, children's education, insurance services, and other fields. We have partnered with 113 institutions, served 171 end customers, and managed a total of HK$3.7 billion; secondly, our bond funds have performed exceptionally well with an annualized return rate of 9.28%, and our money market funds (USD and HKD funds) also have impressive annualized return rates. Our comprehensive fund platform has become one of the first distributors on the Hong Kong Stock Exchange, with some products included in government-approved investment plans; thirdly, we have optimized the ESOP service chain, providing overall solutions for equity incentives, and participating in the bond pledge offshore RMB repurchase business through the Bond Connect Northbound program in the first half of 2025.

A：We are the first Chinese brokerage firm that can provide comprehensive digital asset related trading services. We have successfully launched a digital asset business layout, including obtaining various licenses, providing economic services for ETF futures companies, issuing and distributing original products, upgrading regulated securities trading licenses, and more. Recently, we have also issued the first batch of structured token products and will continue to deploy them in the future, allowing investors to complete transactions through a progressive and orderly manner, and providing education services on virtual assets.

A：The Jin Hong Global APP continues to upgrade, currently supporting transactions in 16 markets, with over 200 fund products available for sale. User activity has increased by 1.4 times, reflecting the advantages of digital financial management. Additionally, in terms of full-cycle enterprise service management, we have established a full product chain and a differentiated financing ecosystem throughout the entire cycle. Our online business ranks first in many indicators, such as the issuance scale of projects completed by Guojin International reaching 258.8 billion Hong Kong dollars.

A：In the first half of this year, we completed twelve financing projects with a main underwriting scale of 75.66 billion. We ranked first in the country by number of projects, and provided financial advisory and compliance services to more than twenty enterprises. In addition, we have built a specialized and diversified platform for high-quality institutional services. The cumulative trading volume of derivatives products on the Hong Kong Stock Exchange in the first half of the year reached 145.8 billion Hong Kong dollars, ranking first among Chinese securities firms and fifth in the overall market. We have also received multiple awards related to trading volume as an economic broker.

A：The AUM of products related to digital assets has reached 1.8 billion Hong Kong dollars, with a very fast growth rate. The company will continuously improve its trading products and services capabilities to provide investors with a secure, compliant, and professional digital asset experience, in order to capture the growing demand for wealth management.

A：The business revenue and profit of the Singapore company have shown significant growth, mainly driven by dual wheels of asset management and wealth management services for high-performance clients in Southeast Asia; the revenue of the Vietnam company has increased significantly by 21%, with profits growing by 19%; the Macau company, after more than a year in operation, saw a significant growth of 33% in revenue in the first half of the year, achieving profitability, and providing global securities trading, wealth management, and trading and services for various securities products in the Greater Bay Area for high net worth clients.

A：In terms of overseas business, the company has launched a bond trading system in Vietnam and completed the first institutional transaction. Property South Company has obtained a fund distribution license, established a full-process fund distribution system, and established strategic relationships with local well-known fund companies. At the same time, the subsidiary in Macau has also achieved a high level of profitability, helping to drive the development of the financial industry in the Macau Special Administrative Region. In addition, in the ESG field, the company has assisted clients in green transformation, completing 47 ESG projects in the first half of 2025, a year-on-year increase of 47%, with a total issuance volume reaching 1000.027 billion, a year-on-year increase of 51%, and issuing green dollar-denominated rate bonds for multiple companies.

A：Competitive advantage is demonstrated by the company's historical status as the first Chinese securities firm to IPO overseas, as well as its comprehensive compliance risk management and healthy development momentum. The company continues to increase its investment in overseas business development, and supports domestic investment banking staff to fully support overseas listings.

A：The company has been operating digital currency-related licensing business since 2023, and obtained a virtual asset trading license at the end of June this year, enabling it to conduct virtual currency asset trading. The company will increase its investment in overseas digital assets.

A：A decrease in interest rates may indeed have a certain impact on certain income sources, such as a potential decrease in interest income from bank deposits. However, overall, the decline in market interest rates may bring about some positive effects. Firstly, companies have already allocated a certain amount of high-grade, highly liquid bonds, so a decrease in interest rates will bring additional income. Secondly, the company's funding costs are relatively high, and a decline in market rates, especially in USD rates, will significantly reduce operating costs. Thirdly, a decrease in market interest rates may widen the interest spread we receive, making it beneficial for earning profits in businesses such as measles. Lastly, a decrease in interest rates may drive growth in other businesses, such as an increase in financing demand, higher trading volumes, and enhanced market liquidity. Overall, I believe that the impact of a decrease in interest rates on the company's total income and total profits is more positive.

A：Thank you for your attention, investors. In the first half of the year, the company's total assets were 122 billion, a decrease of 6% compared to the beginning of the year. This was mainly due to the periodic adjustment of bond investment positions based on market trends and interest rate changes, with the aim of controlling market risks and considering profitability. Although bond holdings have decreased, the company's asset management scale has actually increased through scientifically managed assets. For example, the scale of financial products on behalf of clients increased by 4% year-on-year, 10% from the beginning of the year, the scale of vest business increased by 8%, client cash increased by 4%, and the value of custodial clients grew by 15%. Excluding the bond adjustment factor, the overall asset scale continues to grow. In the future, the company will adopt a prudent expansion strategy, dig deep into customer demand, expand business guided by science, improve productization capabilities through cross-market, cross-regional service capabilities, and promote the increase of operating products, client custodial value, and financing scale. Currently, the company's financial leverage and debt-to-equity ratio are at low levels, with ample liquidity to support rapid business development.

A：In the second half of the year, the company will increase its service efforts in the financial market, especially in the field of digital assets. It plans to increase investment and continuously improve service levels. The company will achieve dual growth in the driving forces of web 2.0 and web 3.0, combining the business needs of the real world and the virtual world. At the same time, the company will explore new business models through in-depth research, explore the use of digital assets or RWA thinking to activate customer assets, such as American technology assets, to achieve 24-hour trading and returns. As a representative of Chinese securities firms in Hong Kong, Guotai Xuan International will seize the opportunity to achieve rapid development based on a solid foundation with the empowerment of financial technology.