Of 2026. The auto industry in China in the first half of 2026 is highly competitive. Many automakers are running at a loss. The average profitability for auto industry in the first half of 2026 has reached 1.6%. It is in this context that we achieved close to RMB 10 billion revenues attributable to shareholders. Our profitability, our margin rate is about 5.6%, way above the industry average. I would say that this is a wonderful business performance for Geely during the first half of 2026. My third observation is that this financial statement is not that surprising. The first half of this year, the auto industry in China has faced the most challenging scenarios never met before in the past 20 years. The total sales units witnessed a double-digit decline in the first half of 2026 in the Chinese market. We've seen a rapid increase in the price of chips and other raw materials. The competition is quite throat-cutting in the auto industry. Despite the fact that Geely Auto has enjoyed historic records in terms of sales revenue and business margin, our growth trajectory has inevitably been impacted by this negative trend in the auto industry in China. I would say this is a wonderful financial statement, but it is not that surprising. This is my third observation. My fourth viewpoint is the one that I would like to share with you the most. This financial statement is a sustainable one into the future, and I believe that you're very much interested in my fourth point. Systematic capabilities, strategic resilience, as well as the pursuit of long-term value creation capabilities are the three key pillars to support my fourth point of view. The competition in the modern auto industry goes beyond product itself. It's the competition of different systems, strategic resilience, and long-term value creation capabilities. I can very confidently tell you that after years of development within Geely, we've established the above-mentioned capabilities and abilities. I'd like to slightly elaborate on these three areas. First of all, talking about the systematic capability. In March this year, when we released the whole year business performance of 2025, I talked about the all-domain AI, safety benchmark, business integration, the diversification of powertrain and energy, and other relevant and important topics during that event. That is exactly these elements that constitute the systematic capabilities of Geely Auto. It is fair to say that the achievements we've made during the first half of 2026, it's not dependent on the result of a specific product or a specific segment, or the result of a specific period of time. This is the financial achievements we've made on the basis of the full systematic capabilities. Thanks to that systematic capabilities, we'll be able to perform even better with greater confidence in face of the challenges in future. I'll give you two examples to sustain that systematic capabilities. In the first half of 2026, if you take a look at our product portfolio, the greatest highlight is the transition toward intelligence. So, during the transition toward new energy, toward intelligence in 2025, we've already built some sort of confidence in our new energy powertrain. In 2025, you still might have some doubt over our intelligence capabilities. Before this event, we've organized some programs and activities, and I believe that many of you have participated in all our programs and activities before this press conference. These events and programs exposed you to our true intelligence capabilities within the Geely system. I believe that through these programs and activities and events, you might now have a very deep understanding of the level of intelligence we're able to achieve within Geely Auto. I believe that in the domain of intelligence, Geely Auto is a leading auto company in China. As time goes by, we will be certainly in the leadership position within the Chinese auto industry. While talking about our systematic capability, on one hand, it helps to create the products that is needed within China. One figure is on the financial statement, is that according to the China Association of Automobile Manufacturers, during the first half of this year, Geely ranked number one in China in terms of terminal sales. Thanks to our systematic capability, we've been able to achieve what we have achieved. More importantly, this systematic capability would support or facilitate Geely's international expansion. You're quite interested in our export business. As the financial statement shows that during the first half of 2026, Geely has done a tremendous job in terms of its exportation. Mr. Gan, as far as my understanding is concerned, we've already hit the annual target we set for ourselves at the beginning of this year by now. This is a wonderful result we've achieved. I just want to tell you that this is the beginning of our world expansion. Why did I say that? Because we're still exporting a limited number of product models within a very narrow price bracket. We're going to export more models on a wider range of price bracket. In the future, we're going to export our premium products into the international market. There are a lot of videos on the internet, one of which features a fanatic fan of Geely who air transported four Zeekr models from China to the Middle East. There is a growing demand for premium brands from Geely in the Middle East as well as in the European market. The new energy vehicle in China has won global recognition. But most of this recognition falls on the low-end category. I would say that the Zeekr brands from Geely would uplift that global recognition of the new energy vehicle in China, meaning that the Chinese automakers are capable of manufacturing premium, high-end, luxury new energy vehicles. We just released some numbers with regard to the i-HEV product. i-HEV product is probably the segment that accounts for the largest market share in the world. Geely's i-HEV product is capable of competing in the international market. I give you these examples just to tell you that we've already established the kind of systematic capability within the company or the company group, which allows us to make progress in the domestic market and enable us to further expand into the international market. Secondly, I'm going to talk about strategic resilience. Scale, profitability, growth, and sustainability. These are the most important points we focus on. We focus on the long term instead of the short-term profitability. That means we need to have the kind of strategic resilience, even if in difficult times. We need to maintain high growth rate, that's true, and at the same time, we still need to maintain the operational stability within the company. Both are important. I would also like to give you an example to substantiate that point. We have a consensus over the development of the Chinese auto industry that expansion of market will contribute the greatest growth engine for the Chinese auto industry. But we're facing a highly unstable geopolitical situation. We need to expand into the international market while we need to reduce the exposure of massive investment into the international markets. I think this is a common issue facing all Chinese automakers. On that front, it is a natural extension of what I've described as the strategic solidity of Geely Auto Group. We have also devised a strategy to collaborate even further with our global peers and counterparts. By doing so, we can be committed to our long-term development, not only in the overseas, but also help us to withstand the possible tests and challenges from the overseas market. It is also a key reflection of Geely's responsibility for the automotive market in general. By working together to co-use or to co-share this platform, we can seek win-win situation for all partners. This is what I call how we can stick firmly to our original strategy, and that is also paving the way for our global pathway. The reason why we will embrace such a practice is largely because, we, Geely Auto, over the past two decades, have been doing all the time by integrating or acquiring Volvo and working together with Renault and many other brands. We have garnered respect and trust from our global partners. The historical trust placed on our shoulders by our counterparts will help us to achieve a much better result in the days to come. While I was talking about the value creation and strategic solidity, I also talked a lot about the export. We have three main advantages on export front. I want to give you a quick summary of these strengths. First of all, premium branding. Secondly, diversification of our vehicle types. Thirdly, the historical trust from our colleagues and from our peers upon Geely Auto Group. This will help us to gain even more trust and ensure that we can achieve a much bigger success in the days to come, especially in the overseas market. The third aspect I'm talking about is the long-term value creation. The systemic capability, strategic solidity, power, in addition to the correct or the precise judgment, combine to form the very foundation for value creation in the long term. I've already explained to you a lot, especially related to the first two fronts. But talking about the third one, Geely is among the earliest players to raise that we need to embrace all-domain AI for the auto industry. For example, the Xingrui Computing Center was introduced. That is the first step for us to enter into a huge domain of AI. Looking ahead, full-domain AI plus smart mobility will become the future trend. This is something that we have a very clear understanding about, and it is also something that we have already been coupling with a fully-fledged system. You can also see that Geely currently has formed a fully-fledged system that can adapt further to those two major trends. For example, for Gruppo Catone, for the GSD, CaoCao M obility, and many others. The existence of those systems will help us to win more space for our future. This can also ensure that we can provide a solid guarantee for the creation of long-term benefits and value for Geely Auto. These are the three aspects to illustrate that we are fully capable on those fronts before we can tell you for sure that our financial statements will continue to make you feel quite happy about. I want to be bold enough to tell you that in the foreseeable future, you will see a much stronger Geely. So much for my observation and my summary of 2026 H1 report. Thank you. Today's press conference also comes with another very key aspect. Have you ever noticed that about half an hour ago, our company has made a latest announcement? Probably you have already taken notice of this important message. Probably you want to know more about this information. Before my explanation of this announcement, next, please take a look at a video clip recorded by Mr. Chairman Li Shu Fu for about 15 minutes. Shall we now move our chairs a little bit to facilitate the watching process? [Non-English content] Now you've watched the video that is introduced by the board of directors. I want to give you a brief explanation of this change of leadership. This is a significant change in the leadership for Geely Auto. It is by no means a simple shift of the leadership. It is a strategic evolution of the entire institution of Geely Auto. After reform and opening up policies, with nearly five decades of development, most of the private companies in China are facing the installation of the second generation of leadership. Eric Li resigned the position of the chairman of Geely Auto, and Mr. An Cong Hui served as the new chairman of the board of directors of Geely Auto. This shift of leadership is a declaration to get rid of the sense of the family-run business to a company that is broadly managed by team, by institutions, and by systems. The company or the company group will no longer rely upon personal charisma and power. Instead, its operation will rely on institutions and systems, which means the governance of Geely Auto will be even more transparent in the future. Its decision-making process will be more professional, its management will be more science-based. At the same time, as to the internal talent, this is a strong signal that the professional ceiling has been broken. It will definitely instill the passion into each and every employee within the company group, who will in turn generate greater value for shareholders and society as a whole. I think this is the strong significance of this change of leadership. Mr. An Cong Hui will become the chairman of the board of Geely Automobile Holdings Limited. He is currently the CEO of Zhejiang Geely Holding Group. 175 is probably the only listed company within the Geely Group that he will serve as the Chairman of, which means we will continue to implement this Taizhou Declaration and we will continue to follow the One Geely strategy, and we will consolidate all the quality resources within Geely to make sure that they will be channeled into our listed platforms, to make sure that our listed companies will be bigger and stronger and generate the greatest value for our shareholders. Chairman Li highly recognized the professional capabilities of Mr. An Cong Hui. He has years and years of experience in the auto industry, and he has a depth of understanding of automotive products. All this will enable him to develop the Geely Automobile Holdings Limited to a new height. This is a great move in corporate narratives, and it has far-reaching significance. The other thing is that I myself will resign as the CEO of Geely Automobile Holdings Limited, and Mr. Gan will be my successor. It is also the shift of leadership and management of Geely Auto. It is required by the era, it is required to maintain the vitality of the company. This shift of leadership is required in order to turn this listed company into a bigger and stronger one. We need young bodies, younger minds, and future-proof wisdom, especially in the time of the Internet and artificial intelligence. Mr. Gan and his peers will have a stronger understanding of the calls of the time than my generation. His generation will have a better insight into the calls of the time, and will have a better execution capability. This shift of leadership will be able to make improvements into the multi-tiered talent development systems within Geely. It is the way to keep the competitiveness of the company. What I'm going to tell you that Mr. Gan is going to be the CEO of Geely Automobile Holdings Limited. So it also has a far-reaching significance. Also, I wanted to tell you that on our announcement, Mr. Li Donghui also resigned his current position. In the past couple of years, Mr. Li Donghui has also made outstanding contributions to our auto group. Currently, Mr. Li is serving as the Vice Chairman of Geely Automobile Holdings Limited. So he's currently undertaking many other jobs, especially in the international market. So he is still the Executive Board Director of 0175, so he will continue to be deeply involved into the operations and management of 0175. Last but not least, I want to say a big thank you to all our friends for your great support to me as the CEO of 0175. A big thank you to you. I'm no longer the CEO of 0175, but I will continue to serve as the Executive Director and Vice Chairman of the Board of Directors of 0175, to be relevantly contributable to this group. Mr. An and Mr. Gan actually are based in Hangzhou. I myself am based in Hong Kong. Looking ahead, I will work together with Mr. An and Mr. Gan to better manage the affairs in the Hong Kong market, especially in the capital markets. So much for my explanation and announcement, and explanation of some of the changes of the main leadership of our group. I hope our future will be brighter. Now, let's invite Mr. An Cong Hui to make a speech. Thank you, Mr. Gui. Dear friends from the investment community, dear friends from the media, dear colleagues, good afternoon to you all. First of all, I want to thank Mr. Chairman Li Shu Fu for the great trust in myself and on the board, so that I now will pick up as the Chairman of Geely Automobile Holdings Limited. Looking ahead, together with Mr. Gan and Mr. Gui, we will continue to internalize responsibility, trust, and care into the real spirit of our group, and translate them into real actions. Just now, I hope that you have already seen from the video message that Geely has now reached a new level of growth, and the One Geely strategy is playing its pivotal role. Now, due to the time limit, I want to walk you through some of the main thinkings behind this One Geely strategy. First of all, just as what Mr. Gui has mentioned, we need to deepen the implementation of the Taizhou Declaration and make the One Geely stronger, more substantial, and more impactful. This is something that we will not compromise. Over the past two years, guided by the Taizhou Declaration, we have continued to consolidate and sharpen our focus on our core businesses, with significant progress. Especially for the first half of this year, you can see it very clearly from the H1 financial statements. In the next phase, we will double down on the One Geely strategy, further optimize our business portfolio and resources allocation, enhance system-wide synergies, reduce unnecessary internal friction and duplicate spendings, and bring more strategically valuable businesses, those that have already reached its industrial scale maturity into the listed entity. We are also going to suspend the operation of those non-value-added businesses and units of the whole system. We are going to integrate some of the useful business units into the group, I mean, 0175. We want to be bigger, stronger, and more impactful in the future. This will be clearly reflected over the next step. I want to give you some examples. For example, our Golden Brick Battery business. Actually, over the past 10 or more years, now we have reached about 70 GWh- 80 GWh production capacity. Next year, we are going to reach about 200 GWh. By 2028, that is about 300 GWh. In batteries, there will be new breakthroughs, major breakthroughs along the lines. Be it reserve batteries, fuel cells, power cells, and also there will be sodium, and other types of batteries. Solid-state batteries, sodium-ion batteries, and large capacity energy storage systems will all be the reality in the future. There will be breakthroughs, to be sure enough. The electric drive system. Now we have reached a new scale of production capacity by leading the world by claiming the best ever technologies in the world. Next step, it will be empowering our group even further. For example, Hangzhou [Jidian], which you have never heard about. This based upon what we have done over the past 10 years. Based upon the electric and electronic core spare parts and components R&D capability, we are building a strong base in Hangzhou of NEV. In smart driving and intelligent driving, there will be some core technology production lines that have been reserved for our future growth. By domain control, regional control, we are complete with all relevant technologies needed for those purposes. These are some minor examples to illustrate this point. Not to mention we have many others at the same time. So long as those practices are useful or helpful for us to fulfill those strategies, we will spare no efforts by combining all our strength to ensure it will become our new reality. Second, there will be a more systematically oriented distribution by focusing more on the overseas market. We will turn the overseas market into a major growth driver for Geely, as Mr. Gui has mentioned already in his speech. For H1 this year, our sales in the overseas market has reached its new highs. It has also increased by about 158% compared with the same period of last year. You can also see that we are actually aiming at selling about 1 million units per year to the overseas markets. Our long-term goal is to ensure that about 2/3 of our sales will come from the overseas market. Alongside with steadily improving the sales volume in domestic market of China, we will further quicken our pace to expand into the overseas market. I've been working for Geely for over three decades. I'm a veteran employee in Geely. I still vividly remember the first day of the founding of Geely Auto, that in the future, 2/3 of the markets of Geely will be overseas markets. Now, in retrospect, we can see that how correct it is for Mr. Chairman Li to raise that goal. I fully believe that in the future, this goal will fulfill, for sure. If 2/3 Of the sales will come from the overseas market, then localized production will become the reality. We have to focus on the long-term goals. This is something that we have been working very vigorously on our front ever since. Geely Holding Group will coordinate all the resources of all brands within our group in parallel to the resources of the overseas market. I want to emphasize that Geely Holding Group will coordinate all the internal resources within our group for all the brands in parallel to our resources of the overseas partners or the external partners to ensure that we can co-develop, co-share the purchasing capacity, and to co-use the HR competence and the supply chain in China. Also, we will co-share the channels and the service networks. Also, I want to give you some examples to illustrate this point. Geely's acquisition of Volvo has ensured us quick strength positionings in technologies and products. But also, it will help us to move further into the overseas market. The overseas factory of Volvo will also undertake the mission of manufacturing high-end and premium cars of Geely brand. For the acquisition of Proton, this year, hopefully this figure, our project is set to exceed about 200,000 units this year. Hopefully, we will turn this center into a major hub to produce about 500,000 units of Proton cars in the Southeast Asia market. Also, we have seen the announcement of our collaboration with Ford in Spain for the production of some Geely-branded cars in Spain. The production capacity of that Spanish factory is also about 500,000 car units per year. Also, we have a Brazilian plant by working together with Renault. It is having the capacity of about 300,000 units per year. Our South Korean plant, as a result of a collaboration with Renault, is also adding up some capacities as well. Also, there are some projects that are still going on there. In other words, which means we did not start our overseas strategies a year ago, or two years ago, or three years ago. Actually, we had overseas strategies ever since the founding of the Geely system. The Ford plant will be put into operation in 2028, which will manufacture quite a number of models within the Geely system. Our Volvo European plants will also be put into operation in 2028, manufacturing some premium models within the Geely system. This localized manufacturing capacity deployment has taken its initial shape, and it is going to bear fruits in the next couple of years. Thirdly, we stay committed to brand upgrading and turn our technological leadership into product leadership, reputation leadership, and value leadership. We need quality development of the Chinese auto brands, which means we must accelerate our move upmarket and toward new energy. As a result of the export of our products and technology, Geely is a technology-driven company. We have already formulated our own advantages. You might have recognized that Geely is turning itself into a tech-driven company. So the Chinese automobiles are not only competitive in price domain, but also in branding and technology. We committed to the long-term development. We are strongly opposed to price war and involution. We want to wage wars on quality, technology, brand, service, and the corporate integrity. These are the resonating themes throughout different kinds of conferences and events. Zeekr accounts for one-third of the segment with the average selling price above RMB 500,000 in China. As a result of the international strategies for Zeekr, I believe that in the premium segment in the global market, Geely will also aim at 1/3 of the market share. This market share will be built upon our technological capabilities. We made long-term investment into the R&D of technologies in the auto industries, and also we made investment in acquisition, corporate cooperation. So all these investments have been turned into our competitiveness, not for the current market, but also for the future. I was frequently asked why Zeekr was so popular in the premium market. Why Zeekr has enjoyed a rapid rise in its branding force. Why compared with its competitors, Zeekr is taking the lead by a generation. To which I reply, without the acquisition of Volvo, without the acquisition of Lotus, we are not going to see the achievements made by Zeekr. Both Volvo and Lotus have been in operation for more than 100 years. They have accumulated centuries of experience in safety, benchmarks, standards, lightweight technologies, and all kinds of automobile-related technologies. Geely has also made decades of investment into the automobile-related technologies. That is why we made significant breakthroughs and improvement in terms of our safety, product safety, lightweight technologies, engines, chassis. But without Volvo, without Lotus, without our own long-term investment into this domain, it would be impossible for us to reach the current status. But fourthly, we need to deepen modern corporate governance to make our organization more dynamic, efficient, and sustainable. The shift of leadership of Geely Auto is a planned step in Geely's journey toward modern corporate governance. Its purpose is to further enhance our competitiveness and achieve healthier, more sustainable growth. For this board and management team, our top priority is to take the baton and pass it on well. So what are we passing on? Not just a position, but the company's core values, management systems, and governance framework. The company's foundation lies in its people and its core competitiveness in its talent. Going forward, we will continue to build a professional workforce and ensure transparent and effective operation of our three-tier governance structure. We will keep strengthening the prime vitality, upholding the principles of shared pressure, shared responsibilities, shared value creation, and shared rewards. We will give a stage to those who deliver results and ensure that every dedicated contributor grows together with the company. I believe that under the board's guidance and management team's execution, Geely Auto will continue to deliver steady growth and create long-term value for our shareholder and users. Thank you very much. Mr. Gan, the floor is yours. Dear investors, media friends, good afternoon. First of all, I would like to thank you very much for your long-term care and support to Geely Auto. Our Chairman and President, Mr. An and Mr. Gui, have just laid out group strategic directions for the next phase. For Geely Auto Group, our core mission is to translate corporate values into action, turn strategy into results, and deliver high-value products and services to our user, while giving back to our shareholders, to our customers with solid, tangible operating performance. It's quite a challenging industry environment. Geely delivered a remarkably strong first half performance. Sales revenue and profit all hit the record high. Our revenue outgrew sales, and our profit outgrew our revenue. So we're seeing a high-quality growth within the Geely Auto company. In the second half, under the One Geely strategic framework, we're seeing strong resource synergies across the group, demonstrating robust operational resilience and strong brand momentum. We'll focus on three key pillars. The first, the domestic market, overseas expansion, and our AI transformation to ensure a solid start for our 2030 strategy. First of all, in the domestic market and in the premium segment, we will drive four brands, namely the Zeekr, Lynk & Co, Geely Galaxy, and China Star to move upward together, leading with high-value flagship products to unlock greater growth. Secondly, in terms of international expansion, we're going to duplicate our high-quality growth model into our international business. So, in the spirit of openness and win-win, we're going to deepen our localized manufacturing strategies to improve our international competitiveness. Thirdly, in terms of AI ecosystem, we will accelerate the transition towards a leader of all-domain AI mobility provider. We will continue to lead the intelligent transformation of auto industry. Based on our accumulation of the technologies in the all-domain artificial intelligence technologies. We also upgraded the traditional technologies during the first half of the year. We announced the launch of i-HEV and AI digital chassis as well as 16-in-1 electric drive. Behind each and every leading technology, we're seeing the vertical capabilities empowered by artificial intelligence. In terms of energy supplement and other technologies, we'll make full use of the AI technology. We're going to get rid of the safety issues in terms of charging of the batteries. We're also trying to get rid of the problems of the battery decay. So ladies and gentlemen, we will be committed to high-quality development. We'll continue to focus on the value creation for customers. We'll be committed to the production of high-quality products, better customer experience, and better business performance for our customers and shareholders, and to facilitate the high quality and sustainable development of the auto industry in China. Thank you very much. I've just given you a brief introduction of Geely's strategies. Toward the end of this year, we're going to hold events during which a more detailed explanation of our 2030 strategies will be provided. Thank you. Thank you, Mr. Gan, for your sharing. Now is Q&A session. Due to time limitation, in order to accommodate more questions, everyone is allowed to ask only two questions maximum. Thank you. Congratulations to Mr. An and thank Mr. Gui for your contribution. I believe that new leadership, as Mr. Gui said, will deliver a record high. My name is [Shenning Yi] from Eastern Fortune. I have two questions. The first one is: we've seen that in terms of the export of Zeekr 9X, we started export to Australia, to Middle East, to Malaysia. Pre-sale have started of the Zeekr 9X. I'm just curious about feedbacks of this pre-launch of Zeekr 9X. What is your forecast on your export volume of Zeekr 8X and Zeekr 9X? Of course, we also enjoy good sales in the Chinese market. Totally, if you combine domestic market with international market, what will be a stable sales forecast of Zeekr 8X and 9X? This is the first question. Talking about globalization and premium branding. I want to say a few words about our international business. As this is one of the focus of our investors and media friends. Actually, the overseas market is an epitome of the Chinese auto industry. The H1 industrial average growth rate is about 72%. For H1, for Geely, we have achieved about 174,000 units, up by about 158%. NEV sales have sold about 277,000 units, up by 585% year on year. This is an unprecedented figure. There are three key features of our sales and performance of Geely. First of all, the growth speed is number one among all the mainstream automakers in China. Secondly, NEV year-on-year growth rate is number one in our industry. Thirdly, for premium brands in China, we are also ranking number one. So these are the three key features of our Geely exports this year. H1 this year. You can see that the international business is quite balanced across all the regions, and some regions have seen much more rapid growth. For example, Latin America up by about 298%, nearly 300%. For Europe, nearly 280% growth. In ASEAN countries, over 120% growth rate is registered. In Eastern and Central Asia, almost over 100% increase. These are what you call the regional growth across the board. Different regions may have different performance levels, just as what Mr. Gui has mentioned in his presentation. We want to ensure one special region for 300,000 units, two centers for 200,000 scales, and three centers for 100,000 unit scales. Secondly, internationalization, as what Mr. An has mentioned, about 2/3 of the sales will come from overseas market. I joined Geely upon my graduation. I remember very clearly since day one of my joining of Geely, we want to see Geely cars in China and across the whole world. We want to sell our cars to the overseas markets. This is always a very important bedrock underpinning our strategy for the overseas expansion. First of all, it is benefiting immensely from the NEV footprint expansion of China. Secondly, because of our strategy. In the next two or three years, we have also devised a plan, which is a workable plan in the overseas market. We have a one, two, three, four, five, six strategy for international orientation. Talking about one meaning one overseas system for Geely. At the back end and the middle end, there is only one system. Zeekr, Lynk & Co, and Geely are the three main brands. One is on the high tech, the second one is the sporty DNA, the third brand is the mainstream mass public orientation. These are the three clear positionings of the brands to win our market shares. Two, three, four, five, six, meaning we want to build a center in Europe selling about 600,000 units, 500,000 units in ASEAN countries, 400,000 units in Middle East, and 300,000 in Eastern Europe, 200,000 units in Central Asia. This is called two, three, four, five, six. If you put all these figures together, that makes the total 2 million sets. Secondly, talking about the premium branding for export purposes. This is also a very prominent feature of our exports. For Zeekr, you can see that it is much more well-known than ever in the past. Not long ago, the Zeekr 8X and the Zeekr 9X have been well certified abroad. And some things are still going on there, and there has been very good, positive feedback from the overseas customers. Some have approached the operators or some of the channels to add an extra price to buy a Zeekr 9X or Zeekr 8X car. It is sufficient enough to tell us that we have ample market demand in those areas. Almost all the markets speak very highly of the quality of Zeekr 8X or Zeekr 9X cars. For Zeekr, our future is very clear. We want to win the future market share to define luxury and the premiumness with technologies. Our growth margin is also quite fast, over 200% increase. This is also something quite phenomenal. We think that in the future, our Zeekr products are mainly concentrated on Zeekr 7X and Zeekr 007. These products have been well-received in the market. Second thing, we are going to quicken our steps for the expansion and rolling out of Zeekr 8X, Zeekr 9X, and Zeekr 009. We are going to do more for the market expansion and the market launch since Q3 this year for 8X. We will also start its rollout in Latin America, Europe since Q4 this year. Of course, our Zeekr 009 and the Zeekr 009 Glory will also have its European edition for the latter half of this year. The exports for H1 this year is already over 4.2 million sets—s orry, it is 42,000 units. That is all for my answer. Any questions from the media? This question is for Mr. Gan about the ICE cars or fuel cars. We know that China Star series have seen rapid growth, so I am asking about the future of China Star series. What is your take on the future market in China for ICE? Will there be a shift to HEV or i-HEV? Thank you very much. Talking about the China Star cars, the future plans. You can see that for H1 2026, that tells us very clearly that the total sales volume is about 8.29 [million] units, dropping by about 24.3%. Especially for ICE cars, it dropped by about over 30%, if not 31.9% drop. That means that there has been a major shift to NEV cars from ICE models. But if you take a look at the global picture, the absolute selling volume of ICE cars is still quite huge. That is about 18 million cars. In China, it sold about 20 million cars. In America, that sell about 15 million- 20 million cars, and for the rest of the region, about 40 million cars. Currently, the penetration rate is about a little bit more than 10% in China. That means there has been huge room for ICE models in the future. But talking about the future of China Star series in China, the H1 sales is about dropping by about 5.7%. That is much slimmer than that of the drop margin of the whole industry. Our market share increased from 8.7% last year to about 10.4% this year in China. The market share of China Star series is increasing rapidly. Largely because we benefit a lot from the technology roadmap and our product portfolio. In the future, there will be two directions for the growth of ICE models. First of all, is more HEV. Certainly, we are going to do more smart driving. On April 13, we have launched the latest edition of i-HEV technology. This i-HEV is totally different from that of the previous generation of the system. I can tell you very clearly that i-HEV technology, through AI technology of Geely empowerment, our i-HEV technologies have been demonstrating much greater and better performances of all indicators, much better than that of those flagship models around the world. Why? Because this is the key feature of the new generation of i-HEV technologies. Traditionally, we add a battery and some torque based upon the previous ICE model, but now we are purely based upon the smart platform with the high capacity of the batteries up to about 60C scale with a high-power electric drive to about 230 kW power. The thermal efficiency is up to about 48.41%. Energy conservation, performance, safety, and reliability are all the key indicators that we see rapid growth and improvement. That is not ordinary or comprehensive growth, but leapfrogging development on all fronts. All these above-mentioned indicators. The high-performance batteries, high-performance and efficiency, electric drives ensured that we can really outperform many of the car models from Japan and some other countries. This is a major breakthrough in this area. This is point number one. Why we can achieve such a good result, because while we are doing some R&D, we are really changing the fundamental structure or the architecture behind what we have seen. For example, how to feel the humidity, the temperature, the altitudes of the things around the car, how to ensure that we can basically guarantee the high-efficiency operation of the electrical motors and engines. At the same time, the high-efficiency electric drive systems can ensure that there have been comprehensive improvements of all the main indicators on all fronts. This 0-100 acceleration is about one second better than that of the Japanese cars. This is a really tangible breakthrough. So much for the technology breakthrough. For product distribution, in the future, we are not going to develop traditional ICE models. All the traditional ICE models will have to be shifting towards i-HEV models. All the models in the future will be i-HEV powered. This is what I call the future direction based upon the decision made by the leadership. Of course, for H2 this year, there will be a few i-HEV models that will be launched to the market. For example, the all-new Xingyue plus, and the Xingyue plus, and the Boyue L. These are all the i-HEV models. I am sure that with i-HEV technologies at the backbone, there will be a bright future for the better sales volumes of China stars. Also, we are going to launch all this full spectrum of i-HEV portfolio to the international market. Thank you. There is a gentleman in blue T-shirt. I have a question for Mr. An Cong Hui. Chairman Li Shu Fu, during his video speech, said Geely will no longer build production capacity, build new production capacity. I understand also introduced your global deployment of manufacturing capacity. I think the sharing of production capacity is probably an important model for international expansion for Geely. So at Geely Holding level, you need to coordinate different resources, you need to make full use. What are the advantages and difficult points in coordinating all these production capacities? Thank you. I think I have already released the information to cover your question, but I will elaborate a little bit. I would say there is a surplus of production capacity all over the world. There is a lot of saying about overcapacity in the automobile industry in China, but I would like to tell you that in North America and Europe and in other regions of the world, there are also overcapacities. For Geely, 1/3 of our sales revenue generated in the international market, which means we have to do a very good job in localized manufacturing. I just mentioned a couple of words related to localized manufacturing: high quality, high speed, and low risk. We need to make full use of our market advantages in European markets. We need to collaborate with our partners outside the Geely system. On one hand, we need to make very good use of production capacity. We need to make very good use of localized human resources. At the same time, we also need to make very good use of the supply chain systems of our business partners. Furthermore, distribution channels as well as service networks are of similar natures. That's the way we can achieve high quality, high speed, and low-risk expansion. Risk and control is of paramount importance, of course. I spent a year or so in coordinating between Geely Holding companies and Geely Automobile Holdings Limited, so that both can support each other and achieve a synergistic competitiveness in the market. It's also the international market for Geely. I believe this strategy is slightly different from the international strategies of other automakers. Thank you. I'm from Guangfa Securities. My name is Chen Feitong. I have two questions. First of all, the first question is to Mr. Dai. Can you help us to understand the reasons behind the gross margin increase? Looking ahead to Q3, given the price markup of the storage systems as well as the storage chips, would you remain the same forecast of your gross margin increase? As to the pure electric vehicles, the question is for Mr. Gan. What is your observations on the future development of the pure electric vehicles and what is Geely's strategies in rolling out pure electric models? For Geely, I think your market share of pure electric vehicles is under pressure. After April this year, the pure electric vehicle market in China is expanding steadily. So, what is your future strategies for pure electric vehicles? Well, thank you, Mr. chen, for your question. The gross margin is 17.9% during the first half of this year. It's about 1.5 percentage point increase compared to the 16.2% of gross margin during the first half of last year. As Mr. Gui has said that, the industrial average gross margin is [1.5%], while our gross margin is [5.4%]. So, it was quite remarkable. As to Q2, our gross margin is 18.4%, even higher than the 17.5% of the gross margin in the first quarter of this year. Why this increase? There are two drivers. First of all, the premium development of our brand. In the first quarter, the Zeekr witnessed 77,000 units of sales. In Q2, we sold 100,000 Zeekr models. So that's increased about close to 30,000 units that helps to increase the gross margin. Because the gross margin for Zeekr is around 20%. The second driver behind this increase of the gross margin is the global strategy. In Q1, we export a little more than 200,000 units. In Q2, we export about 270,000 units to the international market. I think I've told you that the gross margin of exports are 10 percentage points higher than the gross margin of our car sales in the domestic market. These changes support the overall gross margin increase in Q2. Looking ahead into Q3, as a result of price increase of commodities as well as the price increase in chips. Well, actually in Q1, we faced some price pressures from the price increase of commodities. Yes, we forecast the price increase in forecast in commodities. Toward the end of 2025, we increased our storage of these commodities. In Q2 this year, we have fixed the price as well as the quantity with our suppliers for the whole year. We also did some hedgings in the futures market. In Q3 and Q4, we've made some preparations to the price volatility of the commodity. In Q3, we're expecting an increase in the export. I think the gross margin in Q3 will not be lower than that of Q2. As for your second question, the second question is related to the trajectory of pure electric vehicle. In the first half of this year, the overall auto industry decreased by 30%, and even for hybrid engine, the market size decreased by 28%. But after April, we're seeing an increase in the sales of pure electric vehicles in China. This means there is still a huge demand for pure electric vehicles for a couple of reasons. First of all, high voltage. Secondly, fast charging. Thirdly, large battery capacity. Fourthly, high level of intelligence. These are the four features in the pure electric vehicle segment. It takes time to develop a new generation of models. This year, we will gradually launch the high voltage model of Zeekr and Lynk & Co. Geely Galaxy TT, which will be launched soon, will be a pure electric vehicle. The debut of Geely Galaxy TT was held on July 21st, and we received a confirmed order of 919. Right now, the order block has reached 22,000. Definitely this high voltage technology can in a way abate the range anxiety. The Geely Galaxy TT will be launched during the second half of this year, as I told you. [Q11] will also be launched as a high voltage product. For Lynk & Co Z20, which is also a pure electric vehicle, it will be launched pretty soon. Zeekr 001 and Zeekr 009 Glory Edition will also be launched into the market as pure electric vehicles. In the second half of this year, no matter whether it's pure electric vehicle or [hyper] electric hybrid vehicles, we're going to see a rollout of new models under these categories. Thank you. We're also seeing some journalists trying to raise questions. Well, thank you very much for sharing. I'm a journalist from Bloomberg. I have two questions. The first question is related to your cooperation with Ford in Spain. Ford has a full lineup of new energy models. Are they going to use your technologies? Can you share with us, is Ford going to use some of the technologies from Geely in the development of new energy vehicles? This is the first time that an American company co-developed a model with a Chinese company, not for Chinese market, but for the international market. The second question is the payables. You just talked about the volatility in raw materials and commodities, and I noticed that in your financial report, the amount payable increased by 100% compared with the same period of last year. I just wonder what is the reason of this rapid increase in the amount payable. Can you give us a forecast on the annual increase of this amount payable? Thank you. First of all, I want to say a few words about the capacity utilization. How to make better use of its capacity and to ensure a win-win for all partners. For Geely, on one hand, we need to control the risk. As investors, normally we will say we have light assets, but we have to well control the risk or bring the risk well under control. We want to ensure win-win for all parties. You have just referred to mainly the product aspect. For forward collaboration, our Galaxy, our GEA architecture is the main structure. This is the fundamental or underlying structure. Because on the basic structure, we need to develop further the products that will cater to the needs of our different brands. We have to be very clear about this point before anything else. Secondly, our products will not enter the American market. The localized production in Europe will be sold locally. Those European-produced products will not be sold to the American market. Based upon the basic architecture, we need to make a better use of the capacity, including our supply chain system. We have to ensure localization for the production. For EU, there will be the so-called law on market competition. In order to govern the practice of companies to compete with each other in the same market, there will be some legislative requirements for those companies involved in those markets. In the future, over the local supply chain integration, there will be some new practices from Geely. On one hand, we need to quicken our steps to form the new structure. On the second hand, we need to form the scale of economy, and the scale of economy comes with the word cost as well. Don't get me wrong. The products produced in Europe will only be sold in Europe, not to other parts of the world. I want to add a few words to the first question. This is the question that is about the main thinking about our global strategy. We have to co-share the capacity on the global scale. We can use the most economic lever to give full play to the full strength of our system. Secondly, we are going to concentrate more resources for international perspective, meaning 2/3 of the markets will come from overseas. Not to mention the strategy that I've mentioned about, one, two, three, four, five, six strategy. How to stay focused? We need to continue to deepen the localization strategy. We need to continue to stick to the policy that our products need to go international. The supply chain will have to go local, and our brands and our technology will have to move upward even further. Of course, another thing which is equally important, not only relevant to China but also to other parts of the world, which is about aftersales service. We need to do a better job at aftersales services so that we will become a flagship company in the world. The aftersales will be the watershed industry between whether or not we can really achieve due success in due course. Last questions due to the time limit. Maybe we have to answer the second question about AP or accounts payable. Probably you didn't have much time to take a look at the financial statements. For AP, 2025 year-end is about RMB 81 billion according to the Hong Kong accounting rules. By June 30th, 2026 is about RMB 84 billion. Only about RMB 3 billion increase, not double increase. Only increased by RMB 3 billion. So this is a correction. Secondly, after the launch of the Anti-Unfair Competition Law policies of the state, we have quickened our steps to pay all the arrears or the accounts payables. In the past, about 45 days, 60 days, 90 days of accounts payable to recover the money. Now we have already changed the rules. For all those 60-day above scenarios, we have already shortened the period well below the scale of 60 days. Secondly, there is a different scale for year-end last year and also mid-year of this year. Then for the small and medium-sized enterprises, the scale has been reduced to about 30 days or even lowered to pay on site practice. For the results, also have some statistics. For H1 of 2025, the turnover rate is about 150 days. For H1 of 2026, this period has been reduced to about 103 days. It is optimized about nearly half a month. But if you take a look at the Q2 of 2026, the turnover rate or days is being reduced to about 96 days. For Q3 and Q4, with more policies going out and with things getting even better, there will be much shorter duration for the turnover rate days of APs. Also, we have received a lot of online questions. Maybe one question from online first. I want to first of all ask a question about the grid and the power distribution together with the charging facilities and the charging competencies for Geely. And also some questions about the energy storage and conservation. So I want to first of all thank our friend from online. As you have mentioned, that question is quite similar to the question raised by Guangfa Securities. Why the pure electric battery is having its market because of the ultra-fast charging devices or batteries, especially with the rapid increase of the market there. The energy replenishment is critical to the users. Many customers also have the same idea that for NEV cars, whether or not it is convenient is largely dependent upon convenience, immediacy of energy storage, and discharging efficiency. The convenience means whether or not you have well-distributed outlets for the service of the NEV cars. We have been always thinking about one issue. How to solve the problem of charging life cycle and charging speed or ultra-fast charging facilities and efficiencies. We are very clear about some of the issues there, because when the temperature goes above 45 degrees or 50 degrees Celsius, when 10 degrees up, then the batteries will decrease its efficiency by about 100%. Or will quicken the speed of its phasing out, meaning originally the life cycle or lifetime for the battery is about 10 years. But if the temperature goes too high, maybe the life of the batteries will be reduced by half to about five years only. Secondly, super or ultra-high speed or faster charging will also generate a series of risks. Quick charging or faster charging, if I may use a metaphor, just in case of smoking. Smoking is bad for your health. That might not be so clearly seen on first sight. How to solve the problem? Our R&D staff will have to consider as to how to ensure we can have faster charging, but also at the same time, safe faster charging. With the four or five years of efforts, we have made full use of AI capacities to provide a full-chain quick charging devices and competencies. That is because about five years ago in 2021, we have set up energy replenishment companies on Zhejiang Haohan Energy Technology, and we are the first to China to launch our special technologies, and we have been maintaining our leading edge in energy conservation. In 2021, we are the first to launch the ultra-fast charging post, and the power is about 360 kW. By that technology, we can reduce the charging time from several hours to several minutes. Later on, charging time has also been reduced from 30 minutes to 11.5 minutes. In April 2025, we have launched about 1,500 kW, mass production gigawatt-level device. The power is up to about 1,230 kW. Meaning the charging time has been reduced to about four minutes 22 seconds for the battery to be charged by 10% to 70%. You only have to spend about eight minutes or more to have your battery fully charged. Some core technologies have also been developed ever since then, including some temperature control, AI, smart technologies, charging technologies. The fifth generation of charging devices and technologies came out based upon the AI big models and super gigawatt technologies to maintain safety and reliability at the same time. These technologies will be made available before the end of Q3 this year. Stay tuned. I want to give you a few quick glimpse of the technologies. First of all, through some temperature smart control technologies, there will be overheating of the system, because otherwise there will be a full chain overheating of the temperatures of the battery. We will strictly control the temperature within the national certified 65 degrees Celsius. Secondly, the AI temperature control technologies use the vehicle host cloud multi-point testings coupling to make the calculation using AI technologies. The millisecond change detection is made available. Through AI-centered technologies, we can ensure inspection, maintenance, and charging at the same time, all-in-one strategy is made available to ensure safety and reliability. Secondly, charging time and the charging safety will be controlled mainly by the users, meaning the users will become smarter in using the energy replenishment technologies. Of course, for more details, just stay tuned until the end of Q3 for the press conference for the official announcement of the technologies. Thank you. One investor at the back. Please, you got a question. Thank you, Mr. Chairman. My name is [Zhao Yu] from [Wanlian]. The question is related to One Geely strategy and your product portfolio. If you take a look at your financial report, we can see that this One Geely strategy has made significant changes to the back-end operating systems. Mr. Gui also mentioned that there is still great room for improvement on your financial performance. I just wonder whether you are going to enable greater changes at the front desk level? Or say, right now you can launch a lot of models, but only a few of these models will be remembered or recognized by the customers. Also we can see there was some sort of conflict between your internal models. There is the Zeekr 9X, Lynk & Co, and other products. For Galaxy, they have launched similar models. I just wonder how to differentiate these models under different sub-brands. Ever since 2019, there is a significant decline in the combustion engine vehicles. I just wonder, in implementing this One Geely strategy, are you going to streamline your product portfolio? Well, thank you very much for the question. First of all, I am going to give you a couple of numbers. For Geely brand, including Galaxy and China Star and Lynk & Co. For Galaxy, declined by 5% during the first half of this year. For Lynk & Co, it declined 6%. For China Star, it declined 5%. For Zeekr, it increased 97%. The overall increase of sales revenue is 1%. The national average is - 6%. Starting from 2024, when we announced the Taizhou Declaration. Geely is going back to the One Geely strategy through consolidation, integration of resources. We are going to build a big back-office platform, big mid-office platforms and reduce and eliminate duplicative investment, streamline the organization, streamline the functions, cut off all the redundant ones. Through institutional change, we consolidate our procurement system, we consolidate our R&D system. Also we established an integrated sales company for Geely during the first half of this year. Since we came back to the One Geely strategies, we have made some achievements. I think in these achievements for our financial statement, for example, these administrative spending, the ratio decreased from 1.9% to 1.7%. There is a 12 percentage point drop. As to selling spending, in China, we are still making a substantial investment in China. But in international markets, the spending remains stable. For R&D, the spending ratio dropped from 5.5% to 5.2%. We are doing the product, we were planning for the future products starting from last year till this year, in Zeekr, Lynk & Co, Galaxy, and China Star. There is overlapping models. We just remove them from our product plan. Talking about the number of models reduced 20%. Through this One Geely strategy, there is more synergistic coordination within the group, within the company, and we are seeing a more coordinated development among different brands. That is how to develop the killer products in the future, killer models in the future. I believe that the second half of this year is a critical period. The new models will be launched during the second half of this year. For Galaxy, it will continue to focus on premium mainstay products. For Lynk & Co, it will continue to focus on trendy and individualized products. For Lynk & Co, we need to broaden its product portfolio. But how? It will be more sporty, will be more dynamic. I think this is the direction for the future of Lynk & Co. As to Zeekr, it will become a premium tech-driven brand. I think there is a clear distinction between different brands. For Galaxy TT or [Galaxy Cruiser 700], new technologies will be applied to these models. Well, so far, there is a very high level of market recognition of the two models I have just mentioned. I believe that they will continue to enjoy high visibility in the market in the second half of this year. As to Lynk & Co Z20, I believe it will become a killer product. Thank you. Well, this is a very good question. Actually, it captures the essence of the problems we are facing. There is a lack of a blockbuster product or model within the Geely system. The product development plan was formulated years and years ago. We are revisiting these plans, and it will take some time to complete the review of these plans. During the first half of this year, actually, we enjoyed a very good gross margin. We enjoyed a good per capita or per unit sales. We enjoy good profitability. But we are still looking for problems. Behind these beautiful numbers, we found that Zeekr is a prime contributor. It contributed to the increased gross margins and per unit sales revenue. Galaxy is another contributor. But I think there is still some lack of brand force in the mainstay market. We have taken notice of that issue. We still need some strong mid-level products. In the future, we are going to do a better job in product or model planning, technology planning, and there is more to do in these areas. Once we got this strong mid-level blockbuster product, I believe we are going to see a significant increase in gross margin, in profitability, in per unit revenue. Anyway, we are confident about the future. Thank you. We are behind the schedule, anyway. We are going to launch some road shows in the next couple of days. We definitely welcome your participation. If you have any further questions related to the development of the company, we will be very happy to receive your company. Thank you once again. That concludes the conference. Thank you.