Dear investors and analysts, good afternoon. I'm Xu Jing from the board office. Today, because of the pandemic, we are going to conduct this conference by means of live webcast, telephone conference, on-site conference. The meeting will be conducted in Mandarin with simultaneous English interpretation. We have a Q&A session for today's results release and investor briefing. If you wish to communicate with the management, please dial in the system in advance. If you'd like to ask questions, please press asterisk one to be connected. Please note that the content of this meeting and your questions may be recorded. First of all, please allow me to introduce the management attending today's meeting. They are Mr. Zhu Hexin, Chairman of CITIC Limited. Mr. Xi Guohua, Vice Chairman, General Manager. Ms. Li Qingping, Executive Director and Vice General Manager. Mr. Liu Zhengjun, Vice General Manager. Mr. Wang Guoquan, Vice General Manager. Mr. Xu Zuo, Vice General Manager. Mr. Fang Heying, Vice General Manager, and Mr. Cao Guoqiang, CFO. We also have Mr. Zeng Chen, Chairman of CITIC Pacific, who attends the meeting by telephone. Now, let's start the 2021 half-year results release and investor briefing. First of all, please allow me to welcome Mr. Zhu Hexin to address us. Dear investors and analysts, good afternoon. I would like to welcome you to attend the 2021 half-year results release and investor briefing of CITIC Limited. In the first half of the year, CITIC Limited, facing the complicated and severe external situation, seized the favorable opportunity of economic recovery and its performance reached a record high. The net profit attributable to ordinary shareholders recorded HKD 44.2 billion, an increase of 64% over the same period last year. Our financial and non-financial segments have achieved good results. Among them, the financial segments continue to improve steadily with a profit increase of 32%. The non-financial segments seized the opportunity and promoted the overall performance to be significantly improved with a profit increase of 130%, and the business structure of comprehensive enterprises was further strengthened. This year is the first year of the 14th Five-Year Plan. In order to meet the demands of the 14th Five-Year Plan, this March, we put forward the 5-5-3 development strategy, which includes five major segments, five major platforms, and three major starting points. Over the last six months, we have carried out a number of special management working depths, including enhancing business collaboration, promoting increasing revenue and reducing expenditure, reducing costs and increasing efficiency, and speeding up the establishment of a comprehensive risk management system, which achieved good results in all aspects. These measures have laid a solid foundation for our 14th Five-Year Plan. In the future, all the work will continue. We will, as always, pursue lean management, strengthen the foundation, reinforce synergy and scientific technological innovation. We are going to firmly implement the development strategy of the 14th Five-Year Plan, continue to deliver value for shareholders. Next, I would like to give the floor to Mr. Cao Guoqiang, CFO, to introduce us the company's performance in the first half of the 2021. Dear investors and analysts, good afternoon. I'm going to brief you the highlights and the results of CITIC Limited in the first half of the year. We have, in front of the complex operational environment, we have seized the opportunities, and we have achieved rapid growth in our business. Revenue grew by 38% to HKD 352 billion. The profit attributable to shareholders grew 64% to HKD 44.2 billion. The average two-year growth rate was 11.3% and 13.1%, respectively, outpacing overall economic growth for the same period. The financial services continue to improve, which helps stabilize the fundamentals of the performance. Non-financial business managed to significantly increase the contribution of the revenue and the profit, highlighting the advantages we have as a conglomerate. In the first half of the year, the earnings per share is HKD 1.52, dividend per share, HKD 0.15. The total asset is over HKD 10 trillion, up by 5%. Net assets per share, more than HKD 24.58, up by 6%. This is segment information. In terms of total assets, 93% of it is from the financial services. The contribution revenue and the profits are mainly coming from the advanced materials financial services. I'm not going to dive into details. Let's have a look at this slide. This is the summary of the key earnings of the key subsidiaries of the corporation. Later on, I'm going to dive into details one by one. I'm not going to talk too much about it right here. Let's move on to our businesses by segment. In the Comprehensive Financial Services, the revenue is HKD 132 billion, with a net profit of HKD 41 billion, which has been up by 13% and 32%, respectively. Excluding the impact of the exchange rate translation, revenue and the profit increased by 4.1% and 26%, respectively, with all businesses in the segment delivering solid performance. The PBOC has accepted the CITIC's financial holding company application. CITIC will leverage this good opportunity to become a leader in integrated financial services. Speaking of some important companies within financial services, CITIC Bank recorded revenue of CNY 105 billion, increased by 3.4%. The profit grew 14% to CNY 29 billion, focused on promoting a capital-light business. The non-interest income increased by 12%, driven by rapid growth of wealth management and bank card business. The net interest income increased 0.2%, mainly due to the expansion of interest-bearing assets. The net interest margin declined as it was affected by the market rates. We see that we have a solid asset quality with decline in both NPL ratio and NPL balance. The NPL balance decreased by 3.8% at the end of June. The NPL ratio dropped by 0.4 percentage points to 1.5%. The bank strengthened the disposal of NPL, and the non-performing assets disposal and recovery in the first half of the year increased significantly by 49%, reached RMB 16.5 billion. For CITIC Securities, it recorded revenue of RMB 47 billion, grew by 38%, and the profit rose 37% to RMB 12 billion, all benefited from the steady growth of the market and revived domestic capital market. CITIC Securities led the market in A-share lead underwriting, bond underwriting, financial advisory and asset management, leading the market and other counterparts. For CITIC Trust, it has performed very well. Revenue grew 23% to RMB 4.1 billion. Profit grew 88% to RMB 2 billion, maintaining the leading position in the industry. It cultivated new drivers of growth. The AUM proportion of innovative business such as standard security investments, family trust increased to 25%, up by 4 percentage points year-to-date, while the revenue from the innovative businesses achieved a year-on-year growth of 47%. CITIC Prudential Life, its premium income reached RMB14 billion and an increase of 11%, which was one of the highest in the industry. Profit grew 57% to RMB1.2 billion. It continued to leverage the competitive advantage in the bancassurance channel with the focus on higher value business. The proportion of term business increased by 11 percentage points to 72%. The total investment of insurance funds increased by 14% to RMB 146.2 billion at the end of June as compared with the beginning of the year. For advanced manufacturing, revenue increased by 697% and the net profit up by 192%. We see that excluding the consolidating impact of Dicastal, revenue increased by 58%, mainly benefited from the recovery production and operations for this advanced intelligent manufacturing. For CITIC Dicastal, revenue grew up by 46% to RMB 15.5 billion. Profit grew 81% to RMB 500 million, which increased the demand for lightweight vehicles due to the revival automotive market. The sales of aluminum wheels and castings increased by 44% and 53% respectively year-on-year. In June, we see that phase II of the Moroccan plant achieved full production in June, adding annual production capacity of 3 million aluminum wheels. The overseas annual production capacity of aluminum wheels is now 9 million. CITIC Heavy Industries recorded revenue of RMB 3.8 billion, up by 40%, and profit of RMB 174 million. Transformation programs achieved solid results with high-speed growth in new business streams such as offshore wind power and specialized mining robots. In terms of the advanced materials, the revenue reached HKD 142 billion and net profit reached HKD 14 billion, up by 66%- 226% respectively, driven by economic recovery and abundant liquidity, which supported the rise in commodity prices, particularly the prices of iron ore and copper reached new highs. CITIC Pacific Special Steel, Sino Iron and CITIC Metal Group all achieved the best performance in history. When it comes to CITIC Pacific Special Steel, it recorded revenue of RMB 49.1 billion and a profit of HKD 4.2 billion, a year-over-year increase of 35% and 52% respectively. It continued to strengthen operations management to optimize the product portfolio and adopted technologies to reduce consumption of materials. Accounts receivables and inventory turnover were further shortened. For Sino Iron, benefiting from the buoyant iron ore price and the continuous efforts to reduce operating costs and improve efficiency, it recorded a significant rise in profit. Key operation indices achieved a historic high. 10.57 million wet tons of iron ore concentrate were shipped in the first half of this year, a year-on-year increase of 8.5%. The effective operating rate is now at an advanced level. For CITIC Metal Group, its revenue grew 83% to HKD 68.1 billion, and the profit grew 153% to HKD 1.8 billion. For trading business, it seized the opportunity of rising commodity prices, and the trading volume of iron ore, niobium products, and the copper increased. The profit increased significantly by nearly 200% year-on-year. For the mining investment business, we see that the copper mine in Peru delivered substantial profit increase, and the Ivanhoe copper mine in DRC commenced production in May ahead of schedule, and the profit of mining investment business increased by 62%. The copper mine of Ivanhoe in D.R.C. commenced production ahead of schedule in May, contributed to the profit and revenue. For CITIC Resources, the revenue grew 38% to HKD 1.7 billion, delivered a turnaround profit of HKD 427 million. The business mainly benefited from the increase of the product prices, improved management of the oil production business, as well as the optimized debt structure. For the new consumption segments, the delivered revenue of HKD 32.9 billion, down by 7.1%, and a turnaround profit of HKD 791 million. Excluding the deconsolidation of McDonald's China, the revenue of this segment increased by 25% year-over-year, mainly due to the revitalization of the consumer's markets. CITIC Telecom International recorded revenue of HKD 4.8 billion and a profit of HKD 534 million, maintaining steady growth, increased by 9.4% and 4.2% respectively. It became the first provider in Macau in the indoor and outdoor 5G coverage. For CITIC Press, the revenue grew by 19% to CNY 952 million, profit grew by 52% to CNY 145 million. Sales books increased 12% year-on-year, ranked second among publishers in terms of market share and sales. The retail business explored new operational models and established online/offline membership system. Bookstores recovered steadily. For Dah Chong Hong, it recorded revenue of HKD 26 billion, up by 28%, and delivered turnaround profit of HKD 280 million. Last year, it recorded a negative increase. This year it has turned around. Vehicle sales improved by 19% year-on-year. Revenue of consumer products and other businesses improved by 9%. We have achieved HKD 22 billion, up by 52%, and our profit was HKD 3.2 billion, declined by 22%. If we excluded a provision made for overseas projects affected by the pandemic, profit will increase by actually 24% year-on-year. All business achieved a year-on-year improvement in operating profit. For new type organization, the property development operation and management, we have achieved HKD 3.5 billion, up by 24%. For construction and engineering, we have achieved HKD 1 billion, up by 143%. For its subsidiaries focused on regional markets in China with a total value of new contracts matching RMB 17.7 billion, an increase of 34% year-on-year. For urban operation, profit grew 65% to HKD 460 million, mainly due to the increase in revenue from the operation of CITIC Environment, circular economy, industrial park, and rapid recovery of CITIC Offshore Helicopter. Helicopter offshore oil business has been developing very fast. That is my brief overview. Thank you, Mr. Cao. Now let's enter to the Q&A session. We are going to invite institutions online. If you wish to ask questions, please dial asterisk one and wait for connection. I will repeat. Please press asterisk one to wait for connection. When you are connected, then you may proceed with your questions. Before you ask your questions, please identify yourself first, including your name, the investment institution you represent. Due to time limit, please ask no more than two questions. Now let's welcome the first one. Now let's welcome Ronald, Mayin Securities, to pose her question. Hello, dear management. Can you hear me? Yes, exactly. Hello, dear management. I have two questions. The first one is that CITIC Limited has attached high importance to the asset management quality and also reduce the cost. In the first eight months, how is about our growth performance? Do you have any data? What is the amount of the active of non-performing assets, and what is the target for the cost reduction? Second, could you share with us the dividend policy, what it will be like in the future? We have seen that the mother company is going to invest in financing our financing holding companies. Is there any possibility that the dividends will be increased? These are my two questions. Thank you for your question. As for your second question, I want to share with my observations. Actually, for the dividends sharing, it is very stable and consistent. In the first half year, we are HKD 0.15 per share, which has seen a significant increase with that of last year. Our dividend policy with the development policy and high quality development, actually, we are moving ahead of the entire industry. With regards to Huarong, we have made in-depth research. As for your first question, I will give floor to Mr. Guoh ua to answer this question. Thank you for your question. For the reduction of cost and efficiency increase is our target. Lean management and outstanding enterprise is our routine work. Last year, we have seized the great opportunity brought by the external environment on operational business. We have converted the pressure into opportunities. We undertake the cost reduction and open sources for profits generation. We have made a great performance. Our work can be summarized into the three aspects. We identify target and push it forward steadily. Last year, our target is that we are going to increase profits by HKD 5 billion and reduce cost by HKD 10 billion. We have increased HKD 4.2 billion and reduced the cost by HKD 1.18 billion. The morale of our colleagues has been enhanced, and our collective consciousness has been increased. It has facilitated the business profits generation. In 2021, our target is to increase HKD 10 billion and reduce the cost by HKD 20 billion. By the end of July, we have achieved HKD 10.9 billion open source for profits and reduced the HKD 12.9 billion reduction of profit. We have achieved 79% reduction, and we have conducted the outcomes sharing. Not long ago, we have held the outcomes sharing and demonstration in terms of the new manufacturing, and we have accumulated the research outputs, and we have set up the database for innovation. For those best practices for cost reduction, profits generation, we summarize the best cases and convert it into the treasure of our knowledge. We have made a great performance. For example, our CITIC Pacific Special Steel. It has innovated the theory for reducing cost and increasing profits. They have formulated their own model. In the second half of this year, there will be the financial sharing for the profits generation. Cost reduction will become our routine. That will be an important component of CITIC culture. Thirdly, lean management has been improved considerably. All subsidiaries have vigorously undertaken all staff, all procedure, and omnidirectional cost reduction, profits increase. For example, by innovation and research, we have extended product pipelines and expanded the scope of the customers and the markets. By the replacement of the products by higher level ones, we have reduced the cost reduction, and the financial burden has been released. For example, by concentrated procurement to master the trend of the raw materials, and we master the cost of procurement by optimizing the procedure for manufacturing, enhance the automatic manufacturing to reduce the manufacturing cost. Those what we have done in the cost reduction and profit increase. As for the disposal of NPA, non-performing assets, actually, since last year, we have undertaken the disposal of non-performing assets and low-efficient assets. We have introduced 271 projects, and got the return of RMB 36 billion assets. Actually, we have seen a great optimized assets. In the future, we are going to follow the 14th Five-Year Plan and the streamline management guideline and the specialized activities. We are going to reinforce our efforts on disposal of non-performing assets. Generally speaking, centering on the four aspects, we are going to further enhance our efforts on the disposal of low-efficient, non-performing assets. For those non-competitive assets, is going to be disposed. For example, like oil, gas, and coal, all these resources. Despite the positive performance and good results. That is my answer. Thank you for the chairman and general manager answers. Let's welcome the second question. Now let's give floor to investor for CICC, Huang Yuhan, to pose a question. Thank you. Thank you for this opportunity. I'm Huang Yuhan. I have two questions for the management. First one is CITIC Bank. We want to know the outlook for the non-performing ratio reduction, and how do you view this phenomenon? The second question is the wealth management. In the first half of the year, the wealth management has reduction. That is the first time for us to achieve the new lows since 2016. The preferential coverage has achieved the highest level since 2014 by 18%-189%. For the subsequent outlook, based on the situation and the structure of assets liabilities, our judgment is that under the current situation and policies, as far as we're concerned, first, with the difficulty and challenges, we can achieve sustainable development. It can be justified as follows. With regards the pre-indicators, the relevant indicators for non-performing ratio, the generation ratio of non-performing has been decreased from 0.88 point to 0.5, and we can see the trend can be sustained. For the loans. Related loans has been increased, but there are two factors. First, due to the pandemic impact since March, excepting the preferential inclusive micro loans, they are still entitled to the policies and some others have been exited from that. Secondly, the key issue is that we impose stringent standards on the categorizations for one part. In my words, for those where I think it's not normal, we have categorized it into the risky ones. For those without interest, without principals, and they haven't paid, so we have imposed stringent standards. Thirdly, our expectation is the credit cards non-performing ratio has been improved. In the first half of last year, our credit cards impact on non-performing ratio is very large. For the credit cards impact is increased with the same period of last year, but because of the extension policy due to the pandemic. However, we must see that there are positive indicators. There are three positive indicators, which may help you have comprehensive understanding. The 7th in July, the non-performing ratio increase compared with the first quarter non-performing ratio, it has been decreased by 40%, the second indicator from the normal to the expected one in July, because you fill the credit card, some are the good customers. You know that compared with 2020, it has been reduced by 50 on a daily basis. Thirdly, for our priority on deposit, which has been reduced to HKD 7.5 billion from over HKD 10 billion at the beginning of the year, and which has been automatically included into the NPL. This is my third point. My fourth point is that for some of the other companies with excessively high NPL, because of the development of the business or improvement of the business, the value has been greatly recovered, which has exerted a very good contribution to our provision demand. Before we provided like CNY 4.8 billion, and for *ST Yanhu, we used to have this, the repayments of the debt with the materials and assets, but now we can recover by CNY 1 billion. For Youtai, we provided by 70%, but now we can see the improvement of their business. Also, the CNY 1 billion has been for the hydropower stations also have been improved. In the past year, we see that the businesses of many companies and the provisions have been provided. For the HKD 138.5 billion, of them, the HKD 6.2 billion has been improved. At the end of the year, it can reach HKD 8 billion. For those with higher recovery rate, it's a very good signal for us to boost our confidence. For wealth management, let's welcome Li Qingping to share with us the information and answers. For wealth management. The wealth management business of China CITIC Bank, like you said, the data you have mentioned has elaborated that China CITIC Bank, over the last few years, has transitioned its retail business, from the data you have accessed, has proved that we have done a very good job. I would like to answer your question about the building of the brand of our wealth management business of CITIC. About the wealth management business, CITIC has attached great importance to it, and we are very positive about its development, because wealth management is a potential driver of growth of financial services, which is also very competitive. The comprehensive financial services will move deeper into this segment. We have a very good competitive edge. Like you said, we have the good brand. In the segment of comprehensive financial services, especially the 2C, which is called the CITIC Xingfu Wealth Management. Secondly, about we have the advantage in our licenses. The eight subsidiaries under the CITIC Group has the licenses needed. Many of them are the leaders in their respective sectors or industries. The financial holding company we are applying. This is the model, which means that all the subsidiaries will be contained in this financial holding company. We're going to follow this separation of risk management requirements. We are going to build one group, one client, one account system. This is a system that is very possible. Well, I can't say that it is very easy, but we say it is quite possible. We will have a very clean business in this financial holding company. We also have this advantage in the integration of businesses and industries. We need the allocation of assets, and we need the good quality asset. This is the advantage of CITIC. We have very good leading real businesses. At the wealth management end, we have the provision of products because we have the assets available, good quality assets available. On the other hand, we have the integration advantages which can help us to build a comprehensive capability of financial services. Starting from last year when we started to build the integrated brand, I can report the data to you and you can have a look. You will see that the CITIC Group's wealth management or our brand of wealth management. You can see our current value and our potential value in the future at the end of June. The eight financial subsidiaries, including our securities, Huaxia Fund, Baochang, Xingyun, and Baochun Foundation. All the eight financial subsidiaries have AUM increased from CNY 7.15 trillion- CNY 7.6 trillion. Last year we have 219 million. Now we have 310 million clients. All those data can help us to see that our cross-sales to 2C clients from last year is CNY 45 billion. Now we have increased to 83%. We have 40,000 third-party trust clients. We can see that while we are building an integrated brand outside, and internally, we have enhanced our top-level designs and integrations, which has led to a very good outcome. We hope that in the future, we are going to continue to build a competitive mega wealth management system, and we are going to continue to improve our integrated allocation of resources, management of assets, integration of channels, and the driving forces by technologies and shaping of the brands. Our added value provided to the non-financial services so that the comprehensive financial service segment can be a cornerstone of the whole group. Thank you, Mr. Cao and Madam Li. Now let's welcome the third analyst. Morgan Stanley. Investor from Morgan Stanley. Let's welcome. Thank you very much. I'm from Morgan Stanley, Florence. I would like to ask two questions. The first question is that whether you can introduce us about the shareholding in Huarong, some information about this trading. Do you have a timetable for the progression of the work and about the management and non-performing business? What kinds of plans or strategies do you have? The second question is about whether the management can introduce us about the strategy for the peaking of carbon emissions and carbon neutrality, what's the layout in your industries. Thank you for your two questions. The first about Huarong. This is a very important issue which is in progression and which has attracted a lot of attention for Huarong Asset Management Company. This is in line with the strategy of the CITIC Group. We are following the requirement of market-based operation and law-based management too. Now we are in a very important phase of disposing of the non-performing loans. We attach the great importance to this work. We are going to give full play to the integrated and the synergies of the whole group so that we can give full play to the full potential of our group. Second, about the carbon peak and the carbon neutrality, I would like to give the floor to Guohua to answer your question. Thank you very much for your question. We strive to be an ESG leader in the industry, and we are going to seize the opportunity of the low carbon transition strategy to follow the path of low carbon and green development. On May 10th, we have announced to the society that we strive to peak our carbon emissions by 2025, and carbon neutrality by 2050, which is higher and is more ambitious than the national strategy of carbon peaking and carbon neutrality. In order to deliver those goals, we have these two increases and one decrease. What two increases are, firstly, we are going to increase the green finance so that it can benefit the transition to low carbon development. Secondly, about the non-financial businesses development, we are going to expand the supply chain and to give full play to the role of low carbon development. We're going to reduce the investment with a high impact on the environment or with high-intensive or high intensity in carbon. We're going to follow the strategy of carbon peaking and carbon neutrality. This proposal of this strategy is based on our past experience and work. For example, for the transition of green finance, by June 30th this year, the balance of green finance is HKD 130 billion. We're going to continue to improve the ratio of the green finance for our two securities. These issuance of green bonds are the top two in the industry. For carbon neutrality concept, sovereignty bonds has been increasing and in the trading in the market and the innovations of carbon products. Now we are integrating ourselves into the global supply chain of energy transition and low carbon development. For example, the automotive industry is developing to the lightweight direction. The die-cast production of lightweight components is 650,000 tons. Comparing to the traditional steel components, we are going to reduce the consumption of oil of 200 million tons, and reduce carbon emissions by 500,000 tons. We also deploy in the niobium industry and to develop the niobium steel industry so that we can reduce the weight of the steel product. Now we take up about more than 80% of the market share. The intensity of carbon emission is lower than the whole industry by 30%. This is benefiting from the improvement optimization of the innovative technologies. Which can reduce the emissions by 650,000 tons. We are doing two work. Firstly, we have carried out the accounting of carbon emissions across board. We are surveying the carbon emissions of the whole group. We are studying and developing, first of its kind, the accounting table for carbon peaking and carbon neutrality, so that our strategies can be traced, tested, and evaluated. In the meantime, we are developing 2025 carbon peaking and a 2050 carbon neutrality roadmap. We plan that at the end of the year or the beginning of the next year, we're going to publish a white paper for carbon peaking and carbon neutrality. In order to achieve these two goals, on one hand, we are going to optimize our business structure so that for those businesses can be modified and optimized should do that. Secondly, for those difficult to decarbonize, we need to make use of our platforms and the resources to adjust its structure in the whole portfolio. Secondly, we are going to improve the proportion of green businesses, and we are going to make strategic investments in clean energy, low carbon technologies, so as to accelerate the innovation, so financing investment business and to participate in the carbon trading market. Two, also innovate our financial products. Thank you, Chairman and Mr. Xi. Next, let's welcome the fourth investor or analyst for Goldman Sachs, Songqing Jiang. Dear management, I have two questions. The first is about Sino Iron. I would like to ask, what's the trend of production the next half of the year, in the second half of the year? Also look for the iron price or steel price, because we see some decline in the recent days. I want to ask about the production and the price. Do you feel the pressure? The second question is about, I want to ask about CITIC Dicastal. Would like to see the recovery production in Germany. In the future, because of the trend of developments of new energy, many of the clients are following the path of low energy. Are you going to expand your business to the car manufacturers of new energy vehicles and your outlook for the next year? Thank you. Thank you. I would like to. Now, is Jiang available online? Yes, I'm here. Could you answer this question? Okay. Thank you. Thank you for your question. I'm going to brief you on the production of Sino Iron. We have overcome the difficulties, including pandemic and Australia mining prosperity, which results in the lack of insufficient labor. We have produced more than 100 billion tons of the copper concentrate. It has entered into August for 21 million tons of production will be achieved except the emergence of the extreme climate. We are confident to achieve the 21 million for the steel and the iron. For the price of the iron ore, actually, it is going down fluctuatively and is going steadily and rebound. For the iron ore in the first half year, it has seen significant increase. That results from the supply and demand battle. From the demand perspective, China's raw iron production has made a record. At present, the limit on production, especially the carbon neutrality and carbon peak. The production capacity and task for the steel is very heavy. There are fluctuations from the demand side. With a certain time of adjustments, we are confident that iron ore price will go steady. For the price of next year, we believe that with China's economic recovery from the pandemic, as well as with the increase of vaccination, recovery of operation, manufacturing, and policies on infrastructure in different countries, their demands on raw materials and the steel materials will be increased. From demand perspective, it will be very high. From supply perspective, there is no obvious increase. Despite that, many mining enterprises are stabilize their output. Under such circumstances, the price of iron ore are still at high level. Of course, as the high level in the first half this year, from long-term perspective, the price, it cannot maintain such high for a long time. For next year production, we will maintain 20 million tons of the Sino Iron production for Sino Iron. Thank you. As for your loans related question, we will invite Mr. Xu to answer this question. Thank you. KSM, Germany. The overall performance in the first half of 2021 compared with that of 2020, there has shown positive changes for the output and sales compared with the same period of last year. It has achieved almost a 50% increase. Sales has increased by 36% increase. For revenue, compared with the same period of last year, 34% increase has registered. In the first half of this year, EBIT has make turnarounds. Generally speaking, with the improvement of epidemic situation, KSM, Germany, all factories have been recovered, resumed to the normal level. As for the second question you posed, our company will continue to expand the market for new energy vehicles. We will keep pace with the development of the new energy vehicles so as to consolidate the KSM, Germany's market position. Thank you. Thank you, Mr. Zeng and Mr. Xu. Let's give floor to the fifth question. Now, let's welcome CITIC Group investor, George Tai, to post his question. Thank you. I have two questions. The first one, what's your view about the leverage ratio of CITIC Limited? Do you have any targets? The second was, could you share with us the price outlook prospect for the leverage? Now, we will invite Mr. Cao Guoqiang, the CFO, to answer this question. Thank you for your question. As for the leverage ratio management, CITIC Limited has put it at a high position. We are committed to the management of leverage ratio over the past years, which has seen great outputs. The major measures are as follows. Generally speaking, we have an overall plan for the management of subsidiaries will be taken into assessment. They take a certain portion of that. Secondly, we give full play to the internal role by CITIC Finance and CITIC Bank. They will jointly make efforts to reduce leverage by concentrating funds of CITIC Finance. It can considerably reduce the leverage ratio. Thirdly, for the overall loans liabilities, we will increase our management. We will stringently manage that. The overall leverage ratio has been reduced over the past years. The asset liability rate has been reduced by 1%. The liability ratio, dynamic leverage ratio, we have seen conservative reduction over the past years from very high level to a relatively healthy level. That is a normal level, and it's at a historical low. For the Standard & Poor's, has upgraded our class from BBB+. It's stabilized. It has been upgraded to positive. That's thanks to the management of leverage ratio. We believe that we are going to increase our measures and impose the rigorous measures to guarantee the steady and healthy development of the entire group. Very sorry. Could you repeat your second question? CITIC, the colleague from CITIC Group. As your second question, that is about the price of steel. That is, what is your perspective? Now, we still invite Mr. Zeng to answer this question. As for the steel price, since it relates to multiple factors of the market, generally speaking, the demand is very high. In light of the modification adjustments of real estate markets, there may be changes in short term. As I have said, with the structural changes of the market back to normal level and the reduction of the output in this round, it will be resumed to normal level. What's more, we must see that besides China, overseas markets demand on steel, and in the second half of next year, we'll see positive growth. Therefore, we are very cautiously optimistic on the price of steel. I want to add more words. For special steel, we can say that our anti-circular capabilities, especially under the pricing reduction of raw materials, that is the favorable stage for special steel. Thank you, Mr. Cao and Zeng, for your answers. Let's give floor to the sixth question. Let's give virtual floor to Wang Yu from Huatai Securities. Dear management, I'm Wang Yu from Huatai Securities. Thanks for this opportunity. Here is my question. What is the update and progress of monitoring and any financial management measures and supplementary requirements, and what is the direction for synergy effect? Thanks for your question. For financial control, we have Mr. Qin present here. Thanks for your question. I want to make it clear, as for the financial control, the financial holding company. On 28th May, People's Bank of China has officially accepted that CITIC Limited set up the financial holding company. We have got the administrative permit. CITIC Financial Holdings has become the first company to be officially accepted by People's Bank. As far as we understand that People's Bank is reviewing the application, relevant authority has give feedback for the financial holding company's access and decision. People's Bank got the application and should make approval or disapproval within six months in written form. Given that, we have been positively, actively cooperating with People's Bank and relevant ministries to push forward the approval work. It is expected and is highly possible that in this year, we are going to get the permit for the financial holding company. We predict that within this company, we can start our business. That is your first question, as for the progress of our financial holding company. As for the second question, that is the plan and matters of its further development. Comprehensive financial services segment is identified as the bedrock in the 14th Five-Year Plan. By taking the opportunity of applying for financial holding company, we will reinforce capital management, consolidated sheet and comprehensive risk management. We will set up and improve the risk prevention control management, reinforce isolation of financial and non-financial sectors, and give play to the synergy effect. We hope that the positioning of strategy is to create the financial holding company with a global competitiveness and will become the leading financial service pioneer. Under this, we have set up the 1-4-3-6 strategy. Firstly, we are going to create the first-class of financial control management and will improve the fourth management system. We will unify the customer service and coordinate the business service system and improve the risk prevention control system. We are going to formulate the core capabilities for wealth management, asset allocation, and comprehensive financing capabilities. We are going to reinforce the six segments, the financing, the finance wealth management, and securities. That is the future 1-4-3-6 strategy. For the financial holding company, our strategy is that we are going to consolidate the baseline for risk control and release the value of finance. Actually, to create the CITIC Financial Holdings is to prevent and control the risks in a comprehensive manner. When we build the system for prevention control, we must give play to the role played by the finance, and we must release the full value. We must build the monitoring system. We should make it bigger and improved. We should be excelling at the comprehensive financial services. By setting up this platform of finance holding, we will implement the Supply-Side Structural Reform and the policies of financial monitoring. We must increase the comprehensive capability of finance and increase this capability to prevent risk and control and push forward its high-quality development. Thirdly, we must promote the fueling industrial and financial development, and are committed to the high-quality development of financial sector by building the financial holding company segment. The comprehensive financial services will increase the support on non-financial sectors. For example, just as Mr. Cao has mentioned. We need to deliver rich. This is why we integrate the financial services and non-financial services to do such work. We hope that we can have a more close contact or collaboration between the financial and non-financial segment. Second, about the integration and the synergy to improve the service level. While we are answering the question about wealth management, I have already reported to you about this C, and how do we integrate and synergize on the B-end, how do we build this collaboration plus platform so our customer services will be greatly improved, so that to form a synergy and will also support the businesses with the science and technology to consolidate our business. Because financial holding is not just a blank sheet in our positioning and the strategy, we are going to enable our financial services with technologies. This is put high on our agenda. We are going to strengthen our input and investment of science and technology so that the financial holding company can be a demonstrative and first level and first tier financial holding company. About the supplementary funds, CITIC is complying the requirements from PBOC and other ministries. The funds management is a very important part of the financial holding company. As a carrier for financial services, CITIC Financial Holdings is going to follow the medium and long-term development strategies and to comply with the PBOC's requirements and policies to improve our allocation of funds so that we can have sufficient funds available and to help us to guard against the risks and to take into consideration of the external environment and the adequacy ratio to improve the returns to the shareholders. That's all for my answer to your question. Thank you, Madam Li. Due to time limit, this is the end of our Q&A session. For investors and analysts, please contact our investor relations department of the board office for further questions. Thank you very much. I would like to thank all the management and all the analysts and investors for attending today's briefing.