Good afternoon, fellow investors. Welcome to the online investor briefing hosted by UBS. I am your host, Daniel Chen, and joining me today is the investor relations team from PCSC. We will start with an update on the company's current status from the IR team, followed by a Q&A session. Let's welcome the IR team. Thank you, Daniel. Good afternoon, everyone. To begin with, the IR team will start with an update on our current situation. For the first half of 2024, our consolidated revenue grew by seven point one percent. This growth is primarily driven by contributions from Taiwan 7-Eleven, Philippine 7-Eleven, Cosmed, TransNet, and Starbucks. Specifically, Taiwan 7-Eleven's revenue increased by six to seven percent, and the consolidated gross margin rose by zero point one three percentage points compared to the same quarter last year, resulting in a consolidated operating profit growth of five point four percent. On the other hand, due to the rise in US interest rates, our interest income also increased. The sale of our Shandong Ginza supermarkets and impacts from different tax expenses contributed to a 16.2% growth in our consolidated net profit after tax. Since 2023, both our consolidated OP profit and net profit have surpassed pre-pandemic levels, and we continue to see growth this year. Looking specifically at Taiwan 7-Eleven, our revenue for the first half of the year grew by six to seven, primarily due to our ongoing expansion of stores. Our per store daily sales, PSD, have also shown consistent growth, particularly in categories like Fresh Food, City Cafe, and beverages. We've seen continuous improvement in gross margins, which has positively affected our operating income. As for our investments, Philippine 7-Eleven has shown strong growth momentum, while Cosmed and other investments have also seen profit increases. That concludes our situation update. Now, I'll hand it back to the host. Thank you to the IR team for the update. We will now move to the Q&A session, where I will address questions to the team on behalf of investors. First, regarding Taiwan 7-Eleven, our first question is about the goal of reaching 7,000 stores. What are our future annual expansion targets? Furthermore, do we have medium to long-term goals for store openings? Should we expect to see some sort of acclimatization after reaching that target number? Thank you. As of the end of August, we have 7,029 stores, with a net increase of 170 stores from January to August. We expect to add approximately 200 to 300 stores this year. Going forward, our expansion goals will adapt to market demand changes. Our ongoing store openings are driven by several factors. The changing demographics in Taiwan, notably an aging population and an increase in small households, have created a demand for close proximity stores that offer a complete range of products and convenient services, and convenience stores fit this type of need quite well. PCSC is evolving into a lifestyle service platform to better meet consumer demands. We are introducing various store formats tailored to different neighborhoods and lifestyles, incorporating new product structures and digital services to cater to daily consumer needs. We observe that the demand for convenience stores continues to grow, we are responding with a speeding up of our expansion plans to meet this increased reliance. In the long term, we do believe that this will help us maintain a stronger leadership position in the market. Thank you. Thank you. The second question pertains to the current labor shortage issue in Taiwan. Are we experiencing any impact on our store expansion speed due to the labor shortage, and how are we addressing it? Do we need to assist franchisees with covering their wages or operational costs to support store openings? Could such measures affect our profitability? Thank you. Thank you for the question. We believe that an aging population and labor shortage are challenges faced by all industries in Taiwan. In response to workforce shortages, we will continue to implement labor-saving technologies in our stores, such as intelligent vending machines, self-checkout systems, and AI ordering systems to enhance operational efficiency. We also encourage franchisees to operate multiple stores, which can increase their overall profitability and improve labor utilization. This year, we are still seeing the proportion of franchised convenience stores continue to grow steadily. Regarding profitability, we will leverage differentiated product structures and digital tools to sustain the growth momentum. With improvements in overall per-store daily sales and growth margins, we expect to drive profit growth at the store level and helping us manage increasing external operating costs. Thank you. Thank you. The third question concerns our per-store daily sales, PSD. Currently, we have seen PSD growth return to pre-pandemic low single-digit levels. Do we expect this growth to remain in the low single digits moving forward, or are there other drivers that could boost PSD? Could you share the growth outlook for each product category? Thank you. Thank you for the question. At PCSC, we implement significant business strategies each year to drive overall PSD growth. For 2023, our PSD actually returned to pre-pandemic levels. For this year, we are seeing steady and robust growth at approximately low single-digit rates. We plan to further enhance our PSD through several strategies. First, we will continue to focus on improving the quality of our stores. As we expand, we will ensure each store's quality matches the characteristics and needs of its neighborhood, thereby creating a more diverse lifestyle service platform at each store. Secondly, we will differentiate our product structures. For our proprietary brands like Fresh Food and City Cafe, we are expecting to see continued growth. Fresh Food, in particular, has demonstrated strong double-digit growth this year. As lifestyles change, we observe that consumers are leaning towards dining out, and this has prompted us to expand collaborations with branded products, such as our star-rated cuisine and international cuisine product lines. We are also innovating with vegetarian and traditional dishes packaged for convenience store sale as part of our effort to differentiate and add value to our Fresh Food offerings. Moreover, we are also tapping into trends for healthy eating, fitness, and convenience with products like desserts and soups while strengthening our supply chain management. We expect Fresh Food revenue to continue to grow. For City Cafe, this is an area where we have been operating for 20 years, and it has consistently shown growth each year. We innovate with different product categories, including specialty coffee and tea, to attract diverse consumer groups. We are also leveraging digital trends as we aim to reach consumers through multiple channels, and thereby ensuring ongoing growth for City Cafe as it reaches new heights. Specifically, our specialty coffee brand, CITY PRIMA, tea brand, CITY TEA, and Wow Amazing Tea are all examples of our efforts in this area. Besides self-owned brands, we are also developing exclusive items under our national brand umbrella. These are products developed exclusively for sale in our convenience stores, and they also continue to serve as a significant growth driver. In terms of e-commerce and electronic services, we are also capturing more online shopping opportunities, including selling products not available in-store through our iPreorder and iGroup-buying platforms, as well as our self-operated platforms like the MyShip service and iOPEN Mall. Specifically, when it comes to e-service, our advantage in logistics and point-of-sale locations has allowed us to develop robust offerings for in-store pickups. Moving forward, we will strengthen our own platforms and enhance collaborations with external e-commerce partners, ensure high-quality delivery services, while encouraging additional consumer spending at point of checkout during their visit to physical pickup locations to further boost growth. Regarding our e-commerce operations, we have observed significant ways that digital technology has influenced lifestyle choices for the younger generation. As a result, we are focusing on leveraging existing infrastructure and stores to seamlessly connect online shopping with physical locations. For instance, through initiatives like iPreorder and iGroup-buying, franchisees can recommend online products to consumers and have the goods be picked up at a local store location, encouraging the purchase of items such as packaged fruits, small appliances, and electronics. This approach creates an OMO, online merge offline effect, generating additional revenue. Lastly, we will initiate a comprehensive logistics integration plan for the group, constructing logistic hubs across northern, central, and southern Taiwan. By leveraging specialized logistics operations, integrating automated equipment, expanding our distribution centers, and initiating green logistics initiatives, we aim to enhance our overall capacity and delivery efficiency. This strategy will lay a solid foundation for stable long-term growth in e-commerce. Thank you. Thank you. Next, we have a question about profitability. We have observed that the operating profit margin, OPM, for Taiwan 7-Eleven is currently around three to four percent This is a noticeable gap from the pre-pandemic levels of over four percent. Could you explain the discrepancy? Thank you for the question. During the pandemic, we found many favorable store locations available at attractive rental conditions. As a result, we rapidly tapped into the opportunities while actively developing digital platforms at the same time. However, per store daily sales were impacted by the pandemic, which in turn affected our overall OPM. Since then, both our PSD and operating profit have gradually recovered and continue to grow. Looking ahead, we believe that convenience stores will keep expanding as we continue to improve store quality, focus on differentiated products, enhance digital platforms, and optimize our OPEN POINT membership program. As PSD sales continue to grow steadily, we will solidify our leadership position in the market, which will further drive profit growth. Thank you. Thank you. Here we have a question regarding operating expenses. How can we alleviate the pressure from rising costs such as utilities, salaries, and equipment investments? Specifically, what plans do we have for future equipment investments, and will the increase in operating expenses lead to a decline in overall operating leverage? Thank you. Thank you for the question. Long-term, we believe that increasing costs are an inevitable trend. However, compared to other retail sectors, the economy of scale works in our favor, and the impact for us should be relatively small. We will continue to enhance store performance and gross margins, adjust product structures, build better brand value, and optimize manufacturing processes to drive profit growth per store, thereby addressing the rising external operating costs. Thank you. Thank you. We have a question about our investments. Could you share the annual store expansion targets for Philippine 7-Eleven, along with the medium to long-term outlook for operations? Thank you. Thank you for the question. Philippine 7-Eleven has always been a vital growth engine for our group. Post-pandemic, its market position has become even more solid, with a high market share and a robust operational foundation and high adaptability. With our full support for their development, we are very confident about their future outlook. Our upcoming operational strategy will focus on continued store expansion and widening the competitive gap against local rivals. As of August of this year, we have reached 3,986 stores as we aim for a net increase of 300 to 400 stores annually. Based on experiences from similar markets in Southeast Asia, we believe that our medium to long-term target can reach 5,000 stores or even higher. Additionally, we will drive continuous growth in PSD sales by enhancing differentiated product categories like Fresh Food and City Cafe. We expect that Philippine 7-Eleven will continue to be a key growth driver for PCSC. Thank you. Thank you. Next, we have a question regarding the Chinese market. Could you share the performance of our convenience stores in Shanghai and Zhejiang, particularly in terms of store profitability? Since we exited the Shandong Ginza market this year, will we also be exiting the convenience store business in China? Thank you. In Shanghai and Zhejiang, our 7-Elevens are actually still in their growth phase. This year, store performance has continued to improve, and we expect ongoing store expansions and smooth operation. As of the end of August, we had a total of 463 stores in Shanghai and Zhejiang combined. With the summer peak season approaching, we anticipate further sales growth. In terms of store-level profitability, our Shanghai 7-Eleven saw positive results in the first half of the year, with year-on-year growth primarily driven by strategies that enhance revenue and profitability. The first strategy involves expanding store numbers, thereby boosting profitability per store while steadily developing the franchise system in the region. The second strategy focuses on strengthening product structure, emphasizing differentiated items like Fresh Food and City Cafe, and continuously developing products that suit local tastes. The third strategy involves actively seizing digital opportunities, expanding membership traffic, and enhancing member engagement and loyalty. Thank you. Thank you. Regarding Starbucks in Taiwan, could you share our store expansion targets, PSD growth goals, and overall outlook? Thank you. For Starbucks, as of August, we have 571 locations. That is a net increase of seven stores since the end of last year. Our operational strategy for this year and the future focuses on three main points. First, we will continue to expand and stabilize our store growth, including both large stores and specialty stores. Secondly, we will enhance our product structure by developing more novel products, co-branded beverages, and a variety of snacks and meals. Third, we will strengthen our membership management, enhance digital services, and elevate the premium feel for our members. We look forward to a sustained, steady growth in operational performance. Thank you. Thank you. Next, we have a question about Cosmed. What are our store expansion targets, PSD goals, and overall operational outlook? Thank you. As of the end of August, Cosmed has reached 466 stores, with a net increase of 23 stores since the end of last year. In response to the growing demand for cosmetics and skincare products post-pandemic, we are continuously enhancing our product structure in these categories. Moreover, we are adapting to the long-term demographic changes brought by an aging population in Taiwan by introducing diverse services such as pharmacists. Cosmed plans to continue to develop various store formats, including those focused on pharmaceuticals, beauty, lifestyle, or retail. At the same time, we will strengthen our overall e-commerce platform to seize online opportunities and drive sustained mid to long-term growth. Thank you. Thank you. I'd like to ask about our strategies for managing cold chain and pharmaceutical transportation at TransNet. Thank you. TransNet is also experiencing steady growth. Our main operational strategy moving forward, as you mentioned, will focus on high-value business areas, including the opportunities related to cold chain and frozen logistics. We plan to expand into other business areas such as short chain delivery and pharmaceutical logistics in response to the aging population. We will continue to optimize our logistics infrastructure to enhance overall delivery quality and efficiency. Thank you. Thank you. Lastly, we have a question about whether our group's e-commerce or online business strategies will be adjusted due to the parent company's acquisition of Yahoo. Our operations are centered around the lifestyle industry, whether through physical stores or online channels. They are all aimed at providing a comprehensive shopping experience for consumers. Our group has had long-standing business relations with Yahoo. With how the digital economy has fundamentally changed consumer habits, we believe that the partnership with Yahoo will allow us to leverage their e-commerce ecosystem to uncover potential business opportunities. The Yahoo business will mainly be managed by Uni-President. Thank you. Thank you. Once again, I would like to thank the response from our IR team. If there are no further questions from online investors, this will conclude today's online IR briefing. Thank you all for participating. If there are no further questions, this concludes today's meeting. Thank you. Goodbye