Financial Data and Key Metrics Changes - The company raised its net profit forecast from JPY 380 billion to JPY 440 billion, reflecting strong performance across all business categories [4] - Net income for the first half reached JPY 271.1 billion, a record high and an increase of 48% year-on-year [13] - ROE for the first half was 12.7%, up from 8.8% in the previous fiscal year [20] Business Line Data and Key Metrics Changes - Finance segment profit increased by 8% year-on-year to JPY 99.6 billion, driven by strong gross investment income [18] - Operation segment profit rose by 9% year-on-year to JPY 114.9 billion, benefiting from inbound tourism demand [18] - Investment segment profit surged by 117% year-on-year to JPY 194.9 billion, largely due to the sale of Green Corps Energy and other assets [19] Market Data and Key Metrics Changes - Total group AUM reached JPY 88 trillion at the end of the first half, moving closer to the medium-term target of JPY 100 trillion [10] - The company aims to achieve 11% ROE and JPY 100 trillion in AUM by the fiscal year ending March 2028 [5] Company Strategy and Development Direction - The company is focusing on alternative investments and business solutions, with a long-term vision to achieve JPY 1 trillion in net profit by March 2035 [3] - A joint PE fund with the Qatar Investment Authority was established to enhance asset management capabilities [5] - The Osaka Integrated Resort project is set to open around fall 2030, with construction costs revised upwards due to inflation [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving midterm business plans and long-term vision through disciplined portfolio management and capital recycling [11] - The company is closely monitoring the impact of rising interest rates and inflation on its operations and asset management strategies [58] Other Important Information - The share buyback program was expanded from JPY 100 billion to JPY 150 billion, reflecting the company's commitment to shareholder returns [15] - The company has begun utilizing a dashboard for detailed visualization of its business portfolio status [9] Q&A Session Summary Question: Inquiry about joint investment with QIA - Management explained that the joint PE fund with QIA was established after two years of negotiation, aiming to leverage third-party funds for larger projects without significantly bloating the balance sheet [42][44] Question: ROE target and initiatives to achieve it - Management acknowledged the need for initiatives to achieve the 11% ROE target, emphasizing the importance of monitoring interest rates and their impact on profitability [50][52] Question: Outlook for next year's profit forecast - Management indicated that while the current year has seen significant one-off gains, they aim for sustainable profit growth and will begin discussions on next year's plans early next year [60][75] Question: Capital recycling forecast and segment profit balance - Management clarified that the capital gain forecast of JPY 200 billion is on track, with expectations for solid performance in the real estate market and private equity portfolio [66] Question: Concerns about significant impairment losses - Management reassured that while the second half's pre-tax profit forecast is lower, it is not due to expected significant losses but rather a return to regular profit levels [72][74]

Core Insights - 东方财富 reported a significant increase in revenue and net profit for Q3 2025, with revenue reaching 4.733 billion yuan, up 100.65% year-on-year, and net profit at 3.53 billion yuan, up 77.74% [1] - For the first three quarters of 2025, total revenue was 11.589 billion yuan, a 58.67% increase year-on-year, while net profit was 9.097 billion yuan, up 50.57% [1] - The company's net commission income for the first three quarters was 6.640 billion yuan, reflecting an 86.79% year-on-year growth, primarily driven by increased securities brokerage income [1] - Interest income also saw a substantial rise, reaching 2.405 billion yuan, up 59.71% year-on-year, attributed to increased interest from lent funds [1] - However, investment income and fair value changes were less favorable, with investment income at 2.164 billion yuan, a slight increase of 3.15%, and fair value changes at -196 million yuan, down from 362 million yuan in the same period last year [1] Financial Position - As of September 30, 2025, 东方财富's total assets reached 380.255 billion yuan, a 24.12% increase from the end of the previous year, while equity attributable to shareholders was 88.879 billion yuan, up 10.10% [2] - In Q3, northbound capital significantly increased its holdings, buying 55.5162 million shares, resulting in a holding ratio of 3.42%, with a change ratio of 11.46% [2] - Notably, index funds showed mixed results, with 国泰中证全指证券ETF increasing its holdings by 132 million shares, a 67.39% rise, while some other index funds reduced their positions [2] Shareholder Activity - Recently, the controlling family of 东方财富 has been reducing their holdings, with plans to transfer 23.8 million shares, representing 1.5% of the total share capital, due to personal financial needs [2] - The share transfer was completed at a price of 24.4 yuan per share, totaling approximately 5.8 billion yuan, with 16 institutions participating in the allocation [3] Market Outlook - Analysts expect that the securities industry will see further performance improvements due to increased market activity and margin trading scale, alongside a low base effect, which may enhance the year-on-year growth rate of major brokerages [3] - The rise of overseas business and internal growth strategies for leading brokerages are anticipated to drive further increases in return on equity (ROE) [3]