Welcome everyone to Shin Kong Financial Holding Company's 2023 first quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session. Please follow the instructions given at that time if you would like to ask the question. For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within an hour after the conference is finished. Please visit www.skfh.com.tw under the Investor Relations section. Now I would like to introduce Ms. Isabella Wang, IR team from Shin Kong Financial Holding Company. Miss Wong, please begin. Good afternoon, ladies and gentlemen. Welcome again for joining Shin Kong Financial Holding 2023 first quarter analyst call. Before we get started, please allow me to introduce the management who are with us today. Here in the meeting room are Judi Ling, CFO and Spokesperson of Shin Kong Financial Holding, Vicky Lu, Senior Vice President of Shin Kong Financial Holding, Steven Wang, Deputy Chief Investment Officer, Stacy Chen, Senior Vice President, Yan-Ching Tang, Vice President of Shin Kong Life, Christine, member of our IR team. We're also joined by Fiona Lin, Principal of Deloitte Actuarial and Insurance Solutions. Fiona has been working closely with us over the past few months in reviewing our EB work, and she is here to help us answer any question you may have. The presentation we are about to go through was sent out two hours ago. You may download it from our website or participate through webcast. Your lines will be muted when we are presenting. If you are cut off, please dial back in or call Christine at 886-968-292-9230 for assistance. Please turn to Page 4. Due to exchange rate fluctuations, Shin Kong Financial Holding recorded a consolidated after-tax loss of TWD 9.03 billion for the first quarter 2023. Consolidated shareholders equity rebounded 6.2% quarter-on-quarter to TWD 225.29 billion, and the value per share at the end of the first quarter was TWD 14.25. Life insurance EB per share of Shin Kong Financial Holding was TWD 23.7. The embedded value of Shin Kong Life increased 8% year-on-year to TWD 367.6 billion in 2022. CIF and VM grew 16% and 10% year-on-year, respectively. More details on each subsidiary will be covered later on in the presentation. Page 10. Due to product mix adjustment, first year premium for the first quarter decreased 47% year-on-year to TWD 9.8 billion, securing a market share of 6%. Shin Kong Life's continued product strategy aims to offer foreign currency policies and value-focused products, which create stable interest spreads, better asset liability matching, and CSM. The sales of foreign currency policies was TWD 5.9 billion, accounting for 59.6% of total first year premium. FYPE reached TWD 4 billion, and FYPE over FYP was 40.9%, beating the industry average. Page 13 presents the overall view of Shin Kong Life's investment portfolio. Total investment topped TWD 3.4 trillion at the end of the first quarter. Annualized investment return for the first quarter was 1.88% due to less realized capital gains and higher hedging costs. The breakdown of investment returns for different asset classes were real estate, 2.4%; mortgage and corporate loans, 2.8%; policy loans, 5.2%; overseas investments, 1.6%; domestic securities, 2.2%; and cash, 1.7%. Page 14 shows the portfolio of overseas fixed incomes. At the end of the first quarter, overseas fixed income position was around TWD 2.3 trillion. The funds were mainly deployed in investment-grade corporate bonds. As a result, corporate bonds accounted for the largest share, representing 48.8% of the total, followed by international bonds at 26.2% and government bonds at 24.6%. Over 90% of the overseas fixed income position was deployed in US dollar-denominated bonds. As for the bond portfolio by region, North America and Europe remained the company's investment focus, showing a combined share of around 63%. Page 16. The pie chart on the left-hand side shows the mixed hedging vehicle. At the end of the first quarter, hedging ratio was 79.2%, including CS, NDF, and naturally hedged foreign currency policies. CS and NDF accounted for 54% and 46%, respectively, of the traditional hedges. Hedging cost was 239 basis points in the first quarter due to the appreciation of Chinese dollar and higher cost for traditional hedging instruments. The balance of foreign exchange fluctuation reserve reached TWD 23.5 billion at the quarter end. Page 20. Driven by substantial growth in investment income, Shin Kong Bank's pre-provision operating profits reached TWD 2.14 billion, which was 6.8% higher from a year-earlier. Consolidating net income increased 4.8% year-on-year to TWD 1.49 billion. Page 21. The bank's loan balance was TWD 749 billion at quarter end, slightly down by 0.7% year-to-date due to loan mix adjustments. Consumer loan book was roughly unchanged, representing 62% of the loan portfolio. Among secured consumer loans and other consumer loans increased 1.8% and 2.1% year-to-date, respectively. The bank's full year loan growth target remains 4%-6%, as lending is picking up pace in the second quarter. Page 22. Net interest margin and net interest spread for the first quarter was 1.16% and 1.54% respectively. We expect to see net interest margin and net interest spread grow gradually with the improvements in deposit and loan mix, better fund utilization, and stronger loan growth momentum. Page 24. Wealth management income increased 2% year-on-year to TWD 679 million, thanks to strong sales momentum in structured products and overseas securities. The fee income from these two categories accounted for 58% of the total, and the full year growth in wealth management income is targeted at mid-single digits. Page 25. Asset quality remains solid, with NPL ratio at 0.12% and coverage ratio higher than 1,100%. Both ratios were better than the industry average. Page 27. MasterLink Securities generated a brokerage income of TWD 1.07 billion, which was down by 22% year-over-year due to lower daily turnover in the stock market. However, MasterLink Securities flexibly adjusted its investment strategies and delivered a consolidated after pre-tax profit of TWD 717 million. I will now hand over to Yan-Ching to talk about the update on EV and AE. Thank you, Isabella. Please turn to Page 29. For 2022 embedded value, the earning rate of VIF goes from 2.9% to 4.98% in 30 years for NTD products, and 3.87% to 5.44% for USD products. Investment yield is 4.15%. For VNB, it goes from 3.31% to 4.96%, and 4.61% to 5.33% in 30 years for NTD and USD products respectively. The adjusted NAV decreased 4%. VIF increased 16%, and the COC increased 2%. As a result, at the ending of 2022, EV of Shin Kong Life increased 8% year-on-year to TWD 367.6 billion. In 2022, Shin Kong Life keep adopting a value-driven strategy and focus on foreign currency policies, protection products, and healthy insurance policies. The VNB increased 10% to TWD 20 billion. EVs for five years of new business and 20 years of new business were TWD 449.7 billion and TWD 566 billion, respectively. Page 30. Under the base case scenario, risk discount rate was 9.5%. We also provided the sensitivity test of investment return and the risk discount rate for your reference. Page 31. This page shows the detailed breakdown of adjusted NAV. Shin Kong Life's adjusted NAV at the ending of 2021 was TWD 220.8 billion. Profits in 2022 decreased TWD 4.9 billion, while unrealized gains on financial assets caused a decrease of TWD 47.3 billion in the adjusted NAV. As for other adjustments, which represented an increase of TWD 43.9 billion, mainly included the capital injection from the financial holding company. Therefore, Shin Kong Life's adjusted NAV at ending of 2022 reached TWD 212.5 billion. Page 32. VIF grew from TWD 234 billion to TWD 271.2 billion in 2022. The main contribution come from new business issue. which added TWD 20.2 billion to be. Page 33. VNB increased 10% year-on-year from TWD 18.2 billion to TWD 20.0 billion in 2022. The increase in the premium from new business added TWD 0.3 billion from VNB. The product mix change decreased TWD 0.8 billion in VNB. However, the economic assumption change added TWD 2.1 billion to VNB. That wraps up our results presentation. Moderator, please start the Q&A session. Yes, thank you. Ladies and gentlemen, we will now begin our question and answer session. If you wish to ask the question, please press star one on your telephone keypad and you will enter the queue. After you are announced, please ask your question. Should you wish to cancel your question, you may press star two. Thank you. Now, please press star one to ask the question. Thank you. Our first question is coming from Zhang Naixin, Cathay Securities. Go ahead, please. I have two questions, and the first question is, what's the outlook for hedging cost this year? The second question is there any change in your asset allocation in the coming quarters? Thank you. Okay, thank you, Nancy. I'll have our Senior Vice President, Stacy, to share her thoughts on this. Okay. Hi, Nancy, it's Stacy, in charge of FX desk. As for the question for the hedging, outlook of hedging cost, yes, our year-end hedging cost target actually set at or below 2%. Currently, we think this number is achievable, and then compared with the first quarter numbers, I think it will be lower than the first quarter. It will be helped to mitigate our hedging costs in the coming quarters. First, the change of the FS reserve deposit method, that can help us reducing hedging costs around 20-30 bits. Second, I think, currently, for the past few months, we are, we were doing the remit our cash back to domestic. That also help us to reduce the hedge cost, so we are spending for the past few months. Third, of course, well, the currency swap, that mainly reflects the interest rate differential between Taiwan and the US. This part wouldn't be lower in the coming few months. On the other hand, we do use NDF as our hedging tools. This part, we will take advantage of the cost of NDF will be lower when the appreciation expectation of Taiwan dollar is lower, the cost will be lower. We will take this opportunity to if lock in this lower cost, so that the overall hedging cost will be lower compared with the first quarter. All in all, I think it will be gradually improved in the coming few quarters. That's for our hedging cost. As for the asset allocation, I think we will divide it into two parts. For the foreign currency denominated policies, the main focus for the coming quarters will be oversee high quality fixed income bonds. I think the main focus will be A-rated above. More defensiveness is our main focus. Of course, the yield level will be relatively high at this time, so we will take this opportunity to do more diversification in terms of names, region, and we will invest it in high-rated bonds. That's for our foreign currency denominated policy, mainly invested in the fixed income part. Of course, on the other hand, for the Taiwan dollar policies, as I just mentioned, for the overseas cash, we will remit back to Taiwan and then to do more domestic investments because it's relatively high. As for the asset class, I think the short term, we will invest into more high dividend stock. That will be the first priority, and then we will see some relative return that is better to allocate. That will be the asset allocation part. Okay, thank you, Stacy. Nancy, does that answer your question? Yes. Thank you. Thank you. Thank you. As a reminder, please press star one on your keypad if you would like to ask the question. Thank you. We are now in question and answer session. If you would like to ask the question, please press star one on your telephone keypad. Thank you. Please press star one on your keypad if you would like to ask the question. Thank you. There appears to be no further questions at this point. Ms. Wang, can we close the conference call now? I believe we had a very comprehensive discussion in the Chinese session. If you were unable to listen live, we encourage you to listen our replay. Thank you for again, for your time, and hope we will see you again in the next quarter. Please cut the call now. Thank you. Ladies and gentlemen, we thank you for your participation in Shin Kong Financial Holding Company's conference call. There will be a webcast replay within an hour. Please visit www.skfh.com.tw under the Investor Relations section. Should you have further questions, please don't hesitate to contact the IR team of SKFH by phone or by email. You may now disconnect. Thank you and goodbye.