Welcome everyone to Shin Kong Financial Holding Company's 2024 Second 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 the 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 Miss Isabella Wang, IR from Shin Kong Financial Holding Company. Miss Wang, please begin. Good afternoon, ladies and gentlemen. Welcome again for joining Shin Kong Financial Holding 2024 Second Quarter Results Conference Call. Before we get started, please allow me to introduce the management who are with us today. Here in the meeting room are Steven Chen, President of Shin Kong Financial Holding, Judy Lin, CFO of Shin Kong Financial Holding, Vicky Lu, Vice President of Shin Kong Financial Holding, Emily Lu, Vice President of Shin Kong Financial Holding, Han-Wei Lin, Chief Actuary of Shin Kong Life, Steven Wang, Executive Vice President, Stacy Chen, Senior Vice President of Shin Kong Life, Monica, a member of our IR team. Now please turn to page four. Shin Kong Financial Holding recorded consolidated after-tax profits of TWD 20.5 billion for the first half of 2024. Consolidated shareholders' equity increased 3.4% quarter on quarter to NT$270.2 billion, and book value per share at the end of the second quarter was NT$17.09. Our subsidiaries built up stable business momentum during the first half, and more details will be covered later on in my presentation. Page ten. Driven by strong sales momentum and foreign currency policies, first year premium for the first half increased 21.3% year on year to NT$28.6 billion, boosting market share to 7.6%. Shin Kong Life's product strategy aims to provide foreign currency policies and high CSM products, which create stable interest rates, better asset-liability matching, and CSM accumulation. The sales of foreign currency policies was 16.7 billion TWD, accounting for 58.5% of total first-year premium. On the other hand, FYPE grew 6% year on year to 11.1 billion TWD, and FYPE over FYP was 38.6%. Page 11. Just as we have guided the market, CSM serves as an important profitability indicator under IFRS 17. Shin Kong Life has been promoting protection products, health insurance, riders, those high CSM products, to accumulate CSM balance. The company's top priority is to accumulate CSM of 30 billion TWD since 2020. The table on the lower left corner demonstrate Shin Kong's achievement on CSM over the past few years. As you can see, CSM for the first half of 2024 grew 14% year on year. The table on the lower right corner shows that CSM contribution from protection type, health insurance, and riders was 87%, remaining at a high level. Page 14 presents the overall view of Shin Kong Life's investment portfolio. Total investment was around TWD 3.5 trillion at the end of the first half. Annualized investment return after hedging for the first half was 4.4%, mainly contributed by higher realized capital gains from equity and lower hedging costs compared to the same period last year. The breakdown of investment returns for different assets classes were real estate 2.2%, mortgage and corporate loans 2.5%, policy loans 5.3%, overseas investment 2.9%, domestic securities 11%, and cash 1.7%. Page 15 shows the portfolio of overseas fixed incomes. At the end of June, overseas fixed income position was around TWD 2.4 trillion. The funds were mainly deployed in investment-grade corporate bonds, and the portfolio remains similar to that of the previous quarter. Over 90% of the overseas fixed income position was deployed in U.S. dollar-denominated bonds. Page 17. The pie chart on the left shows the mix of hedging instruments. At the end of the first half, hedging ratio was 84.8%, including currency swap, non-delivery forward, and naturally hedged foreign currency policies. Annualized hedging costs further reduced to 117 basis points on the back of U.S. dollar appreciation. The balance of foreign currency volatility reserve amounted to TWD 23.7 billion at the end of June. Now, let's move on to the bank. Page 21. Shin Kong Bank delivered stable results for the first half. Net interest income grew 8% year on year to TWD 6.7 billion, on the back of net interest margin expansion and decent loan growth. Net fee income grew 36.7% year on year to TWD 2.2 billion, mostly driven by the increase in wealth management fee income. The bank's pre-provision operating profits reached TWD 5 billion, which was 3.4% higher from the same period last year. Consolidated net income grew 1.2% year on year to TWD 3.5 billion. Page 22. The bank's loan balance was TWD 833 billion at the end of the first half, which was 3.2% higher year to date. Consumer loan book rose 2.1% year to date, representing 61% of the loan portfolio, as unsecured consumer loans and other consumer loans increased 4.5% and 10.4% year to date, respectively. The full year loan growth is expected to mid single digits. Page twenty-three. Benefiting from higher loan to deposit ratio and growth in high spread loans, net interest margin increased nine basis points quarter on quarter to 1.23%. Net interest spread rose five basis points quarter on quarter to 1.59%. Given the current market condition, we expect full year net interest margin to stay similar to the level of 2023, and net interest rate to go up. Page twenty-five. Wealth management income increased 33.6% year on year to TWD 1.8 billion, thanks to surging sales of mutual funds and bank insurance products. The full year wealth management income is expected to exceed the yearly guidance. Page 26. Asset quality remained robust. NPL ratio and coverage ratio were 0.12% and over 1000%, respectively. Both ratios surpassed the industry average. New NPL generated in the second quarter of 2024 was merely TWD 390 million, accounting for less than 0.1% of total loans. Page 28. Fueled by the increase in average daily market turnover, brokerage fee income for the first half grew 15.9% year on year, making brokerage income reach TWD 3.5 billion. MasterLink Securities also capitalized on market trends to enhance investment income, and after-tax profit amounted to TWD 2.1 billion for the first half. That concludes the presentation for today. Now, I would like to proceed with the Q&A session. Thank you, Ms. Wang. 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 on your keypad if you would like to ask the question. Thank you. Our first question is coming from Jemmy Huang of J.P. Morgan. Go ahead, please. Yeah, thanks for the presentation. A couple of questions for life insurance operation. The first one is, in page 35, the adjusted net worth movement. Could you break down the other movement of -TWD 10.3 billion by some of the major items? And the second question is, for the new FX reserve mechanism, what's the ceiling for the FX reserve balance? The third question is, if I look at your FYP mix, the FYPE divided by FYP, it's actually the ratio is now year on year, but the VNB margin appears to be better year on year. So how do we reconcile the discrepancy? The final question is, in theory, I think the board should respond to the CTBC's tender offer by giving the opinion to the shareholders. So will you do that after the official, let's say, FSC approves CTBC tender offer, then the board will announce the opinion on the tender offer? Thanks. Repeat the first question? Sorry, can you repeat the same, the first question? Oh, yeah, sure. The first question is in page 35, the adjusted net worth movement. There is a other movement, -TWD 10.3 billion. It's possible to give some breakdown of the major items? Thanks. Do adjustments once again. Okay, ... Yes, maybe you can respond all the question. Yeah, for the FX valuation reserve, I think your question is about the ceiling of the reserve in the future, if we apply the new method. And the ceiling will be TWD 190 billion because the regulation want us to increase the capital. So that's why if we apply the new guidance, we will have a higher ceiling. Let me get back to you on the CTBC TO tender offer, proposal. I think, upon approval, regulatory approval, which may take place on September sixteenth, and they will submit the TO application immediately. And at the same time, they will also copy their application to our company. So upon receiving their formal proposal of TO, tender offer, we will have our audit committee to review their proposal. And, of course, the proposal will also review by an independent financial advisor, which will assist our audit committee to come up with their recommendation to the board. That is the process. Okay. How about any VNB with more better? For the VNB last year, I think, because last year, in the EV report last year, the FYP reduced more than 20%. So I think, well, during the last year, you see the changing and the product structure that we improved from that. And also, we talked about, in the early session, you have the VNB equivalent investment return are also higher. So overall, the VNB performed better than the FYP number. And Jamie, for the 10.3, the other adjustment, I just couldn't find it right now. I'm gonna give you back. Yeah, no problem. No problem. Thank you. Yeah, sure. Thank you. We're now in question and answer session. Please press star one on your telephone keypad if you would like to ask the question. Thank you. If you would like to ask the question, please press star one on your telephone keypad. 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. Okay, then there appears to be no further questions at this point. President Chen, can we close the conference call now? Okay. Yes. Thank you for everyone's participation in this conference call. Yes. Thank you, President Chen. And 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.