Group 1 - HSBC has opened its first wealth management centre in the Middle East, located in the UAE, marking its largest investment in the premier banking business in two decades to cater to affluent investors globally [1][2][5] - The wealth centre spans 24,000 sq ft in Dubai and employs around 90 relationship managers to serve high-net-worth individuals, reflecting the UAE's status as a top destination for wealthy investors [2][4] - The investment aligns with HSBC's strategic focus on enhancing its presence in Asia and the Middle East, where the bank generates approximately US$1 billion in profit [4][5] Group 2 - There is a growing demand for yuan financing among affluent customers, indicating a shift in investment preferences [5] - A recent global trade pulse survey indicates that businesses in the UAE are highly confident in their international trade prospects, significantly outpacing global counterparts [6] - Over 60% of surveyed companies in the UAE are increasing their reliance on the Middle East for trade, with 47% on China and 43% on Europe, showcasing a strategic pivot in supply chain investments [7]

Financial Data and Key Metrics Changes - Revenue for Q2 was reported at $18 million, reflecting a 13% year-over-year decline but a sequential growth of over 20% from Q1 [11][12][34] - Adjusted EBITDA loss narrowed to $1.95 million, an improvement from $3.3 million in Q1 and $9.3 million a year ago [3][14][40] - Net income was positive at $0.2 million compared to a net loss of $12.2 million in the same quarter last year [14][40] Business Line Data and Key Metrics Changes - Insurance revenue grew from 11% to 14% of total revenue year-over-year, while wealth increased from 11% to 13% [12] - Combined, insurance and wealth contributed 27% of total revenue in Q2, up from 22% in the same period last year [12] - Credit card revenue decreased slightly from 62% to 61% of total revenue, reflecting a strategic shift towards higher-margin verticals [12] Market Data and Key Metrics Changes - The company reported strong momentum in the market with 8.6 million members and over 260 provider partnerships [8] - The current market environment is viewed positively for fintechs that combine profitable growth with visible catalysts [8] Company Strategy and Development Direction - The company aims to reshape its business for durable, profitable growth by prioritizing quality over quantity and focusing on higher-margin verticals [3][10] - Strategic initiatives include expanding insurance and wealth offerings, leveraging AI for operational efficiency, and maintaining cost discipline [7][9][24] - The company plans to achieve 5% to 10% adjusted EBITDA margins over the next two to three years, driven by improved revenue mix and AI-enabled operating leverage [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA in the second half of 2025, driven by new bank and insurer actions and scaling insurance and risk programs [8][40] - The company is focused on deepening member engagement and leveraging commercial momentum through strategic partnerships [35][36] Other Important Information - The company is operationalizing AI across various functions, including customer support and competitive intelligence, which is expected to lower costs and improve conversion rates [6][19] - The company is exploring life insurance partnerships and aims to digitally transform the Philippines market [30] Q&A Session Summary Question: Can you elaborate on AI initiatives and their impact? - Management detailed the use of AI in customer acquisition, support, and competitive intelligence, leading to lower service costs and improved conversion rates [18][19] Question: What are the key growth drivers for 2026? - Management highlighted scaling insurance and wealth, improving conversion rates, and maintaining a regulatory-first approach as key growth drivers [21][22][28] Question: How will the company restore revenue to last year's levels? - Management indicated a focus on scaling higher-margin verticals and deepening member engagement to layer growth onto a healthier foundation [34][35] Question: What factors contributed to the improvement in net loss and EBITDA? - Management attributed improvements to a shift towards higher-margin products, better unit economics, and cost discipline [39][40]