Welcome, everyone, to Shin Kong Financial Holding Company’s 2023 fourth 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 a question. For your information, this conference call is now being broadcast 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. Monica Chang, IR team from Shin Kong Financial Holding Company. Ms. Chang, please begin. Thank you, Jason. Ladies and gentlemen, welcome and thank you for joining Shin Kong Financial Holdings' 2023 fourth quarter results conference call. Before we get started, I'd like to introduce the management who are here with us today. From Shin Kong Financial Holdings, here are President Stephen Chen, CFO Judy Lin, Vice President Vicky Lu, and Isabella Wang from our IR team. From Shin Kong Life, here are Chief Actuary Hanwei Lin, Senior Vice President Stephen Wang, and Vice President Stacey Chen. The presentation we're about to go through was sent out two hours ago. You may download it from our website. Now let's please turn to page four. Shin Kong Financial Holdings recorded a consolidated after-tax loss of TWD 7.3 billion for 2023. Consolidated total comprehensive income grew prominently to TWD 33.7 billion. Consolidated shareholders' equity increased 16% year-on-year to TWD 246.1 billion, and book value per share was TWD 15.56. Our subsidiaries maintain stable business momentum during the year. More details will be covered later on in the presentation. Before we move on, I'd like to share joyfully our main achievements on ESG performance in 2023. Shin Kong Financial Holdings was selected as a constituent stock of the DJSI World Index for the third consecutive year, and we're also honored to rank second globally in the insurance industry group. The company was also, for the first time, included in the DJSI Emerging Markets Index, reflecting our persistent commitment to corporate sustainability developments. Now let's start from page 10, Shin Kong Life. First-year premium for 2023 decreased 27.6% year-on-year to TWD 38.9 billion, ascribed to market headwinds. However, with the sales focus on regular paid and high CSM products, first-year premium equivalent grew 3.8% year-on-year to TWD 20 billion. Our first-year premium equivalent over first-year premium ratio was around 51.5%, outperforming our major peers. Foreign currency policies can create stable interest spreads and better asset liability matching. The sales of foreign currency policies amounted to TWD 21.5 billion, accounting for more than 55% of our total first-year premium. This ratio, again, outpaced our major peers. Page 11. CSM serves as an important profitability indicator under IFRS 17, and Shin Kong Life has set the target of accumulating TWD 30 billion per year since 2020. We have been promoting protection products, health insurance, riders, and those with high CSM to achieve this target. We are here delighted to share that our annual accumulation goal was once again achieved in 2023, which you may spot from the left bar chart below. The table in the lower right corner shows that the CSM contribution from protection type, health insurance, and riders increased from 76%-91% in 2023, despite the decrease in first-year premiums. Page 14 gives an overall picture of Shin Kong Life's investment portfolio. Our total investment was around TWD 3.4 trillion at the end of last year. Investment return after hedging for 2023 was 2.8%, caused by less realized capital gains and higher hedging costs compared to 2022. The breakdown of investment returns for different asset classes was: real estate 4.9%, mortgage and corporate loans 2.4%, policy loans 5.2%, overseas investment 2.3%, domestic securities 3.7%, and cash 2.2%. Page 15 shows a portfolio of overseas fixed incomes. At the end of 2023, the overseas fixed income position was around TWD 2.3 trillion. Our funds were mainly deployed in investment-grade corporate bonds, and the portfolio remained similar to that of the previous quarter. Over 90% of the overseas fixed income position was deployed in US dollar-denominated bonds. As for the investment region, North America and Europe remain our focus, showing a combined share of more than 63%. Page 11 sorry, page 17. The pie chart on the left shows a mix of hedging vehicles. At the end of 2023, the hedging ratio was 78%, including CS, NDF, and our naturally hedged foreign currency policies. Shin Kong Life's full-year hedging cost was 140 basis points. The figure was higher than the previous quarter on the back of volatility in exchange rates in the fourth quarter. Page 19 lists out Shin Kong Life's 2024 outlook. Details the company's full-year strategy. Now please move on to Shin Kong Bank, page 22. Boosted by growth in net fee income and investment income, total net revenue for 2023 rose 5.6% year-on-year to TWD 20 billion. Pre-provision operating income increased 3.1% year-on-year to TWD 9.5 billion. Consolidated net income amounted to TWD 6.8 billion. Page 23. Shin Kong Bank's loan balance was TWD 807 billion at the end of 2023, which was 7% higher compared to the end of 2022. Consumer loan book grew 7.3% year-on-year, representing more than 60% of our loan portfolio, as unsecured consumer loans and other consumer loans increased 11.6% and 7.4% year-on-year, respectively. Going forward in 2024, Shin Kong Bank will expand consumer loans and SME loans to sustain our loan growth momentum, increase interest spread, and loan-related fee income. Page 24. As market competition led to higher deposit interest rates, net interest spread for the first quarter of 2023 lowered 7 basis points quarter-on-quarter to 1.59%, and net interest margin also flipped quarter-on-quarter to 1.2%. If we reclassify swap revenue, the adjusted net interest margin in the fourth quarter will be 1.3%, close to the figure of the third quarter. Page 26. Wealth management income increased more than 10% year-on-year to TWD 2.8 billion. Our bancassurance and structured product with securities are the main drivers, with fee income increasing 19.8% and 9.3% year-on-year, respectively. In 2024, Shin Kong Bank will continue attracting new funds and expand client base to steadily increase wealth management asset under management, focus on insurance policies and mutual funds to achieve high single-digit growth in wealth management income. Page 27. Our asset quality remained benign. Both the NPL ratio and coverage ratio surpassed the industry average. The figures were 0.12% and over 1,100%, respectively. New NPL generated in the fourth quarter of last year was merely TWD 327 million. The amount is negligible to total loans. Lastly, page 30, MasterLink Securities. In 2023, full-year operating revenue surged 70% year-on-year to TWD 8.8 billion and consolidated after-tax profit amounted from TWD 362 million to TWD 2.5 billion. The decent growth was mainly attributed to prominent performance in prop trading, which contributed TWD 3.2 billion to income. Meanwhile, thanks to the increase in average daily market turnover, brokerage income also grew 6.7% year-on-year to TWD 5.2 billion. MasterLink's brokerage market share remained 6% in the market. Here comes to the end of the presentation. Thank you for your patience. We'll now proceed with the Q&A session. Thank you, Monica. And ladies and gentlemen, we will now begin our question and answer session. If you wish to ask a 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 on your telephone keypad if you would like to ask the question. Thank you. And our first question will be coming from Jemmy Huang of JP Morgan. Go ahead, please. Thanks for the presentation. Two questions from me. First one is, for the RBC ratio, we know that the interest rate capital charge will be increasing on a year-on-year basis. So could you provide some color like in the first half of this year, how much the RBC ratios will be dragged down because of higher interest rate risk charges, and any other factors that will also drag down RBC ratios in addition to the normal business expansion? The second question is also on the holding levels, either on the banking side or on the insurance side. Do you have any offshore CRE exposures in terms of lending or investments? How do we perceive the related asset quality or credit risks? Thanks. Hi, Jemmy. For the first question, you're talking about a C3 risk that if it continues with the current regulation, I think this year, the increased C3 risk will reduce the RBC for about 20+% for us. And so that's if the situation remains. But I think there will be some discussion about if we continue the formula for calculating the C3 risk in an RBC that's currently using now, or there are some companies also reflect that maybe we should modify that a little bit more. Thanks, Hanwei. Can I check, is that happening in first half or in second half in terms of the increase in the coefficients? I think by the end of the first half. At least in the first half, when we publish the first half RBC, that will be used at that time. I see. Thank you. Thank you. We're now in question and answer session. If you would like to ask the question, please press star one on your telephone keypad. Thank you. Sorry. We have yet to answer the second questions regarding the CRE. On the banking side, I think we don't have any outstanding CRE outside of Taiwan. And on the insurance side, I think we have only limited exposure in London as a building, which I think is very around with current market value around GBP 100 million. Yeah. US dollar, $100 million. Dollar. Million. Million. Million. Okay. The total exposure on CRE is very limited. I see. Thank you. Thank you, Jamie. As a reminder, please press star one on your telephone keypad if you would like to ask the question. Thank you. We're now in question and answer session. If you would like to ask the question, please press star one on your telephone keypad. Thank you. As a reminder, please press star one on your keypad if you would like to ask the question. Thank you. Ladies and gentlemen, 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. It appears to be no further questions at this point. Mr. Chen, can we close the conference call now? Yes. But I would like to make a few comments regarding these sections. I think 2023 is a very challenging year. I think due to the market headwind and the significant appreciation of NT dollar in the fourth quarter, we record after-tax loss. But I think we are quite optimistic regarding the market environment this year and also our business momentum of our subsidiaries picking up and also show a very positive momentum. And not only Life's record after-tax profit in February, our capital gain of Life also saw significant improvement. Hedging cost is also under control. On banking side, after-tax profit up to February also increased more than 10%, I think 13%, as compared with the same period of last year. And on security side, the trading or our brokerage income also increased more than 50%, 50%. I think those are very good signs at the beginning of this year. In addition, I think we will continue to complete our capital fundraising exercise to improve our capital adequacy to meet the government requirements, regulatory requirements in due course. Okay? That is about our session. If there's no more comments or questions, so we conclude it. Okay? Yes. Thank you, President Chen. 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.