Financial Data and Key Metrics Changes - In Q2 2025, the company achieved record high performance with deliveries reaching 103,181 units, a 242% increase year over year [7] - Total revenues were RMB 18.27 billion, an increase of 125.3% year over year and 15.6% quarter over quarter [22] - Vehicle sales revenue was RMB 16.88 billion, up 147.6% year over year and 17.5% quarter over quarter [22] - Vehicle gross margin increased to 14.3%, up 3.8 percentage points quarter over quarter, contributing to an overall gross margin of 17.3% [8][23] - Net loss narrowed to RMB 480 million, compared to RMB 1.28 billion year over year [26] Business Line Data and Key Metrics Changes - The Mona M03 MAX became a bestseller, accounting for over 80% of total Mona M03 sales [7] - Free cash flow in Q2 exceeded RMB 2 billion, with total cash on hand surpassing RMB 47.5 billion [8] - R&D expenses increased to RMB 2.21 billion, a 50.4% year over year increase [24] - SG&A expenses were RMB 2.17 billion, up 37.7% year over year [24] Market Data and Key Metrics Changes - Overseas deliveries exceeded 18,000 units in the first half of 2025, increasing over 200% year over year [18] - The company ranks as the best-selling Chinese NEV startup brand in 10 markets, including Norway and France [18] - Q3 delivery forecast is between 113,000 to 118,000 units, reflecting a year-over-year growth of 142.8% to 153.6% [19] Company Strategy and Development Direction - The company aims to strengthen core capabilities in technology leadership, organizational strength, commercialization, and globalization [10] - The launch of the G7 and P7 models is expected to enhance brand positioning and sales mix of high-end models [11][12] - The company plans to introduce several super electric models with advanced features, aiming for a generational lead in technology [13][14] Management's Comments on Operating Environment and Future Outlook - Management emphasized a focus on sustainable growth despite intense price competition [7] - The company is confident in leading the market at scale while advancing operational efficiency towards sustainable profitability [20] - The introduction of the one vehicle dual energy strong product cycle is expected to significantly strengthen the company's market position [20] Other Important Information - The company is preparing for mass production of L4 capable vehicles in 2026, with pilot robotaxi services launching in selected regions [16] - The introduction of the industry's first AI chip dedicated to smart cabins is expected to enhance user experience significantly [17] Q&A Session Summary Question: Brand Position and Product Pricing - Management is focusing on product layout, technology, aesthetics, and brand to increase average selling price (ASP) and improve profitability [30][34] Question: Smart Driving Technology - The company believes its Turing AI SoC provides a significant competitive advantage in smart driving technology, with expectations of leading the market by next year [36][40] Question: Cooperation with Volkswagen - The expanded collaboration with Volkswagen is expected to create significant strategic value and additional revenue streams [44][46] Question: Robotaxi Business - Management indicated plans for L4 capable vehicles and the differentiation of robotaxi models from consumer vehicles [48][50] Question: Vehicle Gross Margin Guidance - The company aims for high teens vehicle gross margin in Q4, with a focus on profitability [88][90] Question: Product Strategy and Design Focus - The company is shifting its strategy to prioritize design and aesthetics alongside technology [75][78] Question: Policy Response to Anti-Dilution Measures - Management is committed to innovation and quality while adapting to regulatory changes in the industry [80][82]

Financial Data and Key Metrics Changes - Total full year revenue reached $986 million, exceeding guidance by $11 million, while adjusted EPS was $1.54, surpassing the high end of guidance by $0.11 [13][14] - Fourth quarter net revenue was $258 million, a 1% increase sequentially but a decline from the prior year due to higher fee share from contract renewals [13][14] - Adjusted EBITDA for the fourth quarter was $71 million, translating to a margin of 27.6%, benefiting from revenue outperformance in Supply Chain Services [14] Business Line Data and Key Metrics Changes - Supply Chain Services segment performed above expectations, with gross administrative fees growing over 3% in fiscal year 2025, driven by higher contract penetration and onboarding of new members [15][16] - Performance Services segment showed sequential improvement in advisory business, although it was lower compared to the prior year as the sales funnel is being rebuilt [17] - Other supply chain services revenue grew by 17% in the co-management business and 15% in the digital supply chain business, indicating growth opportunities for fiscal year 2026 and beyond [16][17] Market Data and Key Metrics Changes - The company noted increasing financial pressures on member hospitals and health systems, leading to a demand for value-based strategic support [6][10] - The acquisition of Illumicare is expected to enhance the company's ability to deliver real-time insights and expand its addressable market [8][20] Company Strategy and Development Direction - The company is focused on helping health systems transition from short-term cost containment to structural changes that enhance operational resilience [6][10] - The acquisition of Illumicare is part of a strategy to strengthen clinical decision support capabilities and leverage AI for better healthcare outcomes [8][20] - The company anticipates a stabilization year in fiscal year 2026, with a return to growth in key financial metrics expected in fiscal year 2027 [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth, citing a robust pipeline of advisory business and strategic engagements [7][11] - The company expects free cash flow conversion in fiscal year 2026 to be in the range of 70% to 80%, with a cash tax rate anticipated to be less than 5% over the next five years [18][19] - Management highlighted the importance of addressing contract renewals and the anticipated increase in fee share to the mid-60% range in fiscal year 2026 [16][36] Other Important Information - The company completed a $200 million accelerated share repurchase program, bringing total stock repurchases to $800 million under a $1 billion authorization [14][19] - The company is winding down the Contigo Health assets, with expected revenue of $9 million and an EBITDA loss of $6 million in fiscal year 2026 [49] Q&A Session Summary Question: Changes in customer buying behavior in Supply Chain Services - Management noted no significant pull forward in buying behavior due to tariffs, with some regional increases observed [25] Question: Momentum in the advisory business - The advisory business is driven by market dynamics and the expertise of the newly hired leadership, with significant recent contract wins [26][30] Question: Cadence of admin fee renewal and growth assumptions - Management expects a gradual increase in fee share throughout fiscal year 2026, with gross administrative fees anticipated to grow around 4% [35][36] Question: Size and impact of Illumicare acquisition - Illumicare is projected to generate $8 million to $10 million in revenue for fiscal year 2026, breakeven on EBITDA, and is expected to drive future growth [48] Question: Advisory business size and growth visibility - The advisory business is estimated to be between $50 million to $100 million, with expectations of over 25% growth in fiscal year 2026 driven by recent large contracts [58][60] Question: Free cash flow guidance and TRA impact - The TRA benefit is included in free cash flow guidance, with expectations for improved cash flow in fiscal year 2026 due to the absence of the $100 million headwind [64][66] Question: Demand changes post July 4 and SaaS offerings - There remains significant interest in clinical decision support capabilities, with ongoing demand for technology that drives performance improvement [90][92]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased by 18.5% year over year to $1.9 billion, driven by increased capacity, higher occupancy, and higher revenue per passenger cruise day (PCD) [16][19] - Adjusted gross margin rose by 19.2% year over year to $1.2 billion, resulting in a net yield of $607, which is 7.8% higher than in 2024 [17][19] - Adjusted EBITDA for Q2 was $633 million, a 28.5% increase compared to the same period last year [18] - Net income improved to $439 million, an increase of almost $280 million compared to Q2 2024 [19] Business Line Data and Key Metrics Changes - In the river segment, capacity PCDs increased by 7.5% year over year, with occupancy at 95.6% and adjusted gross margin growing by 15.8% [22] - For the ocean segment, capacity PCDs increased by 11.2% year over year, with occupancy at 95.2% and adjusted gross margin rising by 24.9% [23] Market Data and Key Metrics Changes - 96% of the 2025 capacity for core products is already booked, with advanced bookings totaling $5.6 billion, which is 21% higher than the same point in 2024 [27] - For 2026, 55% of capacity is booked with $3.9 billion in advanced bookings, a 13% increase compared to the same point in 2025 [28] Company Strategy and Development Direction - The company is focused on expanding its fleet and strengthening its global presence, with new ships added to both ocean and river segments [7][8] - The strategy includes selective expansion into high-value, less-explored regions, such as India and Egypt, to enhance the guest experience [12][14] - The company aims to maintain a consistent brand experience while optimizing operational efficiencies [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for cruises, noting sustained booking strength into August 2025 [39] - The company is committed to optimizing its cost structure while investing in marketing to stimulate demand [41][62] - Management believes that the current booking trends and pricing strategies will lead to healthy revenue and EBITDA growth in 2026 [50][59] Other Important Information - The company completed a secondary offering of 30.5 million ordinary shares at $44.2 per share, increasing institutional float and diversifying the shareholder base [9][15] - As of June 30, 2025, total cash and cash equivalents were $2.6 billion, with net debt at $3.2 billion and net leverage at 2.1 times [23][24] Q&A Session Summary Question: Booking progress for 2026 - Management noted strong demand and booking strength continuing into August, with 55% of 2026 capacity sold [39] Question: Marketing spend increase - The increase in marketing spend was a response to softening demand, aimed at stimulating interest without discounting prices [41] Question: Pricing optimization for 2026 - Management indicated a balance between maintaining good value for guests and optimizing pricing, with a focus on mid-single-digit yield growth [48][49] Question: Advanced bookings and pricing expectations - Management confirmed that mid-single-digit yield growth is the goal, with current average pricing between $800 to $900 per day [50][59] Question: Expense growth and future expectations - Management acknowledged quarterly fluctuations in expenses but emphasized strong revenue growth relative to expense increases [62][63] Question: Capacity growth and competition - Management expressed confidence in filling capacity, citing strong demand and a well-established market position [102][103] Question: M&A considerations - Management remains open to acquisitions that meet their guiding principles of scalability, margin accretion, and brand complementarity [108][109]

Financial Data and Key Metrics Changes - In Q2 2025, the company recorded total revenue of RMB 1.02 billion, a decrease from RMB 1.18 billion in the same period of 2024, primarily due to lower order volumes amid competitive dynamics [18][20] - Gross profit margin increased by 1.2 percentage points year over year to 12%, reflecting improved operational efficiency and cost management [18][19] - Adjusted net profit for the quarter was $45.6 million, down from $59.1 million in Q2 2024 [20] Business Line Data and Key Metrics Changes - The company fulfilled 123 million orders in the first half of 2025, maintaining steady average selling price (ASP) compared to the previous year [27] - The share of CN orders saw a slight positive increase, indicating a stable performance in the business lines [27] Market Data and Key Metrics Changes - The instant delivery industry continued to grow steadily, with flowers and cakes maintaining a significant market share due to unique demand [6][7] - The competitive landscape in the food delivery market remains intense, impacting order volumes and rider supply across the industry [30][33] Company Strategy and Development Direction - The company is focusing on enhancing product and service quality through a tiered operational strategy and in-depth analysis of user groups [5][6] - Plans to expand service offerings and deepen collaborations with high-value merchants are in place to enhance user satisfaction and drive repeat purchases [15][28] - The company aims to integrate its brand into users' daily lives through innovative marketing strategies and scenario-based initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a recovery in overall order volume in the second half of 2025, as competition stabilizes [28][29] - The company remains committed to optimizing resource allocation and capturing emerging opportunities for sustainable growth [21] Other Important Information - The company has implemented a comprehensive rider support system, including subsidies, training, and rewards, to maintain a stable and efficient delivery team [13][31] - Cash and cash equivalents totaled RMB 827.8 million as of the end of Q2 2025, indicating a healthy cash position [20] Q&A Session Summary Question: Could you please share the company's order volume and ASP for this quarter broken down by 2B and 2C business? How do you project the trend for order volume and ASP in the second half of the year? - The company fulfilled 123 million orders in the first half of 2025, with ASP holding steady compared to last year, and expects a recovery in overall order volume in the second half [27][28] Question: How would you assess rider's thickness and retention metrics? What trajectory should we anticipate for rider incentive budget this year? - The company reported strong registered and new rider numbers, with no notable impact from market fluctuations, and is focusing on optimizing rider productivity through an intelligent dispatch system [30][31]

Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 30%, exceeding the guidance of 22% to 26% and significantly higher than the 17% growth in the same quarter last year [5][17] - Adjusted EBITDA reached $32,000,000, surpassing the high end of previously issued guidance [7] - Operating cash flow was $33,000,000, representing 103% of adjusted EBITDA [19] - Free cash flow from operations was $29,000,000, or 91% of adjusted EBITDA [20] - Adjusted diluted EPS was $0.26 for the quarter [20] Business Line Data and Key Metrics Changes - Advertising revenue grew 44% year-over-year to $93,000,000, with e-commerce being the fastest-growing vertical, increasing over 100% year-over-year [6] - Search revenue returned to double-digit growth, up 11% year-over-year to $50,000,000 [6] - The user base for Opera GX reached 33,000,000 MAUs, an 11% increase year-over-year [12] Market Data and Key Metrics Changes - The company noted strong growth in the Western market, particularly in Europe, which contributed to user acquisition [35] - The e-commerce vertical is expected to continue growing, although comparisons will become more challenging in the second half of the year [71] Company Strategy and Development Direction - The company is focusing on AI integration within its browser, positioning itself as a key player in the emerging AI landscape [9][10] - Opera Neon, an AI browser, is set to be released, combining major AI use cases into a single user interface [10][11] - The company is also expanding its presence in the gaming sector with Opera GX and plans to soft launch in South Korea and Japan [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of advertising revenue despite macroeconomic volatility [18] - The company anticipates continued growth in search revenue and is optimistic about the broader search landscape evolving with AI [57] - Management acknowledged tariff-related headwinds but noted that global growth has offset these challenges [60][61] Other Important Information - The company has distributed $2.8 in dividends per share since January 2023 and has repurchased 30% of its outstanding stock in the previous three years [21] - MiniPay, a stablecoin wallet, has reached 9,000,000 activated wallets and exceeded 250 million transactions, indicating strong growth potential in the fintech space [15][50] Q&A Session Summary Question: What drove the sequential growth in the Western market user base? - Management indicated that seasonality and marketing strategies played a role, with expectations for more growth in Q3 and Q4 [33] Question: How should we think about the pricing and cost structure of Opera Neon? - Management stated that product marketing is the primary focus, with a combination of advertisement sponsorship and subscription models anticipated for monetization [44] Question: How does MiniPay monetize engagement? - MiniPay is generating revenue through ecosystem partnerships and integrations, leveraging its nature as a fintech product [50] Question: What are the expectations for search revenue growth? - Management expects search revenue to continue performing well, driven by changes in the broader search landscape and user engagement [57] Question: What is the outlook on tariff-related headwinds? - Management noted that while tariffs have created challenges, there is potential for recovery and growth as conditions stabilize [61] Question: How significant is the opportunity in launching Opera GX in South Korea and Japan? - Management sees strong potential in these markets, particularly due to partnerships with popular games like League of Legends [63]

Financial Data and Key Metrics Changes - Total revenue reached RMB 116 billion, up 30.5% year on year, marking the fifth consecutive quarter of record-breaking performance [4][22] - Adjusted net profit was RMB 10.8 billion, up 75% year on year, achieving a new record high for the third consecutive quarter [4][31] - Gross margin improved to 22.5%, an increase of 1.8 percentage points year on year [4][22] Business Line Data and Key Metrics Changes - Smartphone revenue was RMB 45.5 billion, accounting for 39.3% of total revenue, with global smartphone shipments reaching 42.4 million units, marking the eighth consecutive quarter of year-on-year shipment growth [23][22] - AIoT revenue reached RMB 38.7 billion, up 44.7% year on year, with a gross margin of 22.5%, up 2.8 percentage points year on year [24][25] - Revenue from smart large appliances grew 66.2% year on year, with air conditioning shipments exceeding 5.4 million units, up over 60% year on year [25][26] Market Data and Key Metrics Changes - In Mainland China, smartphone market share for devices priced between RMB 4,000 and 6,000 increased by 4.5 and 6.5 percentage points year on year, respectively [12] - Xiaomi ranked first in smartphone activations in Mainland China and maintained a strong presence in Southeast Asia, Europe, and Latin America [7][8] - Global MAUs for Internet services reached 731 million, up 8.2% year on year, with MAUs in Mainland China reaching 185 million, up 12.4% year on year [27] Company Strategy and Development Direction - The company aims to achieve steady annual increases in market share in China and is focused on premiumization and technological advancements [9][10] - Xiaomi plans to enter the European market by 2027 and is committed to enhancing its international market infrastructure [19][20] - The company emphasizes innovation driven by user needs and aims to transform the home appliance industry through intelligent transformation [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the smartphone industry and the need for continuous investment in core technology and product innovation [8][9] - The company expects the smartphone market to remain flat globally, with a target of 175-180 million shipments for the year [81][82] - Management expressed confidence in the long-term growth of the large appliance business despite current market challenges [16][99] Other Important Information - Xiaomi's R&D expenses reached RMB 7.8 billion, up 41.2% year on year, with a record high number of R&D personnel [30] - The company was included in the Fortune 500 list for the seventh consecutive year, ranking 297th, an improvement of 100 places from the previous year [19] Q&A Session Summary Question: Performance of AIoT segment in Chinese and overseas markets - Management noted strong growth rates in both markets, with a focus on expanding offline retail channels to enhance efficiency [34][37] Question: Smartphone gross margin trends - Management indicated that rising costs for components are a concern, but premiumization efforts are expected to help improve margins in the long term [36][44] Question: AIoT gross margin pressure - Management attributed quarter-on-quarter pressure to seasonal factors and promotional activities, but year-on-year growth remains strong [46][55] Question: EV business gross margin and overseas development - Management expressed confidence in maintaining satisfactory gross margins through competitive product offerings and economies of scale [88][90] Question: Brand strength in overseas markets - Management highlighted high brand awareness in Europe and plans to enhance the reputation of Xiaomi EVs before entering the market [90][91]

Financial Data and Key Metrics Changes - Total revenue reached RMB 116 billion, up 30.5% year on year, marking the fifth consecutive quarter of record-breaking performance [6][24] - Adjusted net profit was RMB 10.8 billion, up 75% year on year, achieving a new record high for the third consecutive quarter [6][32] - Gross margin improved to 22.5%, an increase of 1.8 percentage points year on year [6][24] Business Line Data and Key Metrics Changes - Smartphone revenue was RMB 45.5 billion, accounting for 39.3% of total revenue, with global smartphone shipments reaching 42.4 million units, marking the eighth consecutive quarter of year-on-year shipment growth [25][24] - AIoT revenue reached RMB 38.7 billion, up 44.7% year on year, with a gross margin of 22.5%, up 2.8 percentage points year on year [26][24] - Smart large appliances revenue grew 66.2% year on year, with air conditioning shipments exceeding 5.4 million units, achieving over 60% year-on-year growth [27][15] Market Data and Key Metrics Changes - In Mainland China, smartphone market share for devices priced between RMB 4,000 and 6,000 increased by 4.5 and 6.5 percentage points year on year, reaching 24.7% and 15.4% respectively [13] - Xiaomi ranked first in smartphone activations in Mainland China and maintained strong positions in Southeast Asia, Europe, and Latin America [9][10] - Global MAUs for Internet services reached 731 million, up 8.2% year on year, with MAUs in Mainland China reaching 185 million, up 12.4% year on year [29] Company Strategy and Development Direction - The company aims to achieve steady annual increases in market share in China and is focused on premiumization and technological advancements [11][12] - Xiaomi plans to enter the European market by 2027 and is committed to enhancing its brand and product competitiveness [21][85] - The company emphasizes innovation driven by user needs and aims to transform the home appliance industry through intelligent transformation [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the smartphone industry and the need for continuous investment in core technology and product innovation [10][11] - The company expects the smartphone market to show little growth overall, with a target of 175-180 million shipments for the year [81] - Management expressed confidence in the long-term growth of the large appliance business despite current market challenges [17][98] Other Important Information - Xiaomi's R&D expenses reached RMB 7.8 billion, up 41.2% year on year, with a record high of 22,641 R&D personnel [31] - The company was included in the Fortune 500 list for the seventh consecutive year, ranking 297th, an improvement of 100 places from the previous year [21] - The company is committed to corporate social responsibility and has made significant contributions to disaster relief efforts [33] Q&A Session Summary Question: Performance of AIoT segment in China and overseas - Management noted strong growth in both markets, with a focus on expanding the new retail system to enhance AIoT business [36][38] Question: Long-term smartphone gross margin outlook - Management indicated that while there are short-term pressures on gross margin, premiumization and product structure adjustments are expected to support future growth [37][45] Question: AIoT gross margin pressure and R&D investment direction - Management explained that the pressure on AIoT gross margin was due to market conditions, and R&D investments are focused on core technologies and product lines [48][52] Question: EV business gross margin and overseas development - Management expressed confidence in maintaining satisfactory gross margins through competitive products and emphasized the importance of brand awareness for EVs in overseas markets [88][90] Question: Robotics opportunities and large appliances strategy - Management is optimistic about robotics opportunities and highlighted the rapid growth of air conditioning sales, with plans to enhance competitiveness further [94][98]

Financial Data and Key Metrics Changes - Operating income reached JPY 5,450,000,000, a year-on-year increase of 22% [28][30] - Net profit for the first half of the year was JPY 550,000,000, reflecting a year-on-year increase of 34% [29][34] - Asset management grew to RMB 112.1 billion, a 12% increase compared to the same period last year [29] Business Line Data and Key Metrics Changes - Automobile financing transactions reached JPY 32,700,000,000, a year-on-year increase of 4% [12] - Used car financing grew by 31% year-on-year, with transaction volume reaching 222,000 units [15] - FinTech business achieved a financing scale of CNY 1,530,000,000, a year-on-year increase of 58% [17] Market Data and Key Metrics Changes - New passenger car sales in China reached 13,530,000 units, a year-on-year increase of 13% [6] - The transaction volume of used passenger cars was 7,570,000 units, a year-on-year increase of 0.5% [6] - New energy passenger cars saw a year-on-year growth of about 33.3% [7] Company Strategy and Development Direction - The company aims to focus on core capacity building and leverage technological advantages to consolidate its leading position in auto finance [11] - Yixin plans to enhance its FinTech capabilities to empower traditional finance and improve customer experience [12] - The company is transitioning to a more lightweight business model to better fulfill its value proposition [46][49] Management Comments on Operating Environment and Future Outlook - Management noted that the industry is expected to return to rational competition due to increased regulatory policies [8] - The company anticipates that its strategic focus on technology and innovation will drive sustainable growth [11] - Management expressed confidence in achieving better performance in the second half of the year compared to the first half [70] Other Important Information - The company has established partnerships with over 100 financial institutions and is focusing on expanding its overseas business, particularly in Southeast Asia [35][40] - The penetration rate of new energy vehicles in new cars is about 54%, indicating strong market demand [18] Q&A Session Summary Question: What is the core reason behind the successful transformation and future plans? - Management emphasized the shift to a lightweight business model and the importance of AI capabilities in enhancing operational efficiency and market competitiveness [46][49] Question: How does the company view its growth in the used car market? - Management confirmed that the company is increasing its market share and highlighted the potential for further growth in the underserved used car market [56][59] Question: Can you elaborate on the impact of anti-evolution policies on the market? - Management stated that these policies promote healthier competition and stability among partners, which is beneficial for the company's long-term growth [66][68] Question: What are the achievements in overseas expansion? - Management reported significant growth in Singapore, with plans to replicate successful models in other Southeast Asian markets [39][40]

Financial Data and Key Metrics Changes - Operating income reached JPY 5,450,000,000, a year-on-year increase of 22% [31] - Net profit for the first half of the year was JPY 550,000,000, reflecting a year-on-year increase of 34% [32] - Asset management grew to RMB 112.1 billion, a 12% increase compared to the same period last year [32] Business Line Data and Key Metrics Changes - Automobile financing transactions reached JPY 32,700,000,000, a year-on-year increase of 4% [14] - Used car financing grew by 31% year-on-year, with transaction volume at 222,000 units [17] - FinTech business achieved explosive growth, reaching CNY 1,530,000,000, a year-on-year increase of 58% [19] Market Data and Key Metrics Changes - New passenger car sales in China reached 13,530,000 units, a year-on-year increase of 13% [7] - The transaction volume of used passenger cars was 7,570,000 units, a year-on-year increase of 0.5% [7] - New energy passenger cars saw a year-on-year growth of about 33.3% [8] Company Strategy and Development Direction - The company aims to focus on core capacity building and leverage technological advantages to consolidate its leading position in auto finance [12] - Yixin plans to enhance its AI capabilities and integrate them into its business model to improve efficiency and customer experience [31] - The company is exploring overseas markets, particularly in Southeast Asia, to replicate its successful business model [43] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is moving towards rational competition, emphasizing technological innovation and improved product quality [9] - The company expects to continue its solid performance in the second half of the year, building on the strong results from the first half [74] - Management highlighted the importance of AI capabilities in driving future growth and enhancing service offerings [55] Other Important Information - The company has established partnerships with over 100 financial institutions and is focusing on expanding its overseas business [38] - The penetration rate of new energy vehicles in financing reached about 52% of the total [18] - The company has applied for 18 new AI invention patents in the first half of the year [47] Q&A Session Summary Question: What is the core reason behind the successful transformation and future plans? - Management emphasized the shift to a lightweight business model to enhance value and quality, leveraging strong partnerships with financial institutions [49][50][52] Question: How does the company view its growth in the used car market? - Management confirmed that the company is increasing its market share and noted that the used car market remains relatively underserved, presenting opportunities for growth [60][62] Question: Can you elaborate on the anti-evolution policies and their impact? - Management stated that the company supports sustainable development and healthy competition, which is expected to stabilize partnerships and improve predictability in performance [70][72] Question: What are the achievements in overseas expansion? - Management reported significant success in Singapore, with plans to replicate this model in other Southeast Asian markets, focusing on new energy vehicles and technology solutions [42][43][80]

Financial Data and Key Metrics Changes - The group reported a 6.4% increase in operating NPAT to AUD 100.8 million, translating to an operating EPS of 12.2 cents per security, and distributions of 10.4 cents per security, both up 4% from the previous year [22][21] - Statutory NPAT was AUD 82.7 million, lower than operating NPAT due to fair valuation impacts of property investments [22] - FY '26 operating EPS guidance is set at 13.4 cents, indicating a significant increase from the current year [22] Business Line Data and Key Metrics Changes - The Property Funds Management segment delivered an operating EBITDA of AUD 59.6 million, up from AUD 57.9 million last year, reflecting resilience despite a subdued transactional environment [24] - The Property Investment segment contributed a consolidated EBITDA of AUD 87.7 million, an increase from the prior year [25] - Centuria Bass Credit generated AUD 27 million in operating EBITDA, with AUM expanding over 21% year-on-year to AUD 2.3 billion [12] Market Data and Key Metrics Changes - Centuria's transactional activity totaled close to AUD 3 billion, including approximately AUD 500 million of acquisitions and AUD 630 million of real estate finance transactions [10] - The group maintained a high portfolio occupancy rate of 95% with a robust average lease term of 5.3 years [10] - The unlisted platform's performance fees amounted to AUD 7 million booked to P&L, with AUD 32 million collected from divestments [11] Company Strategy and Development Direction - The company aims to target over AUD 1 billion in real estate acquisitions in FY '26, focusing on alternative property markets and innovative fund structures [4][35] - The introduction of Reset Data is expected to contribute to earnings growth, with anticipated revenue generation from its AI marketplace and AI factory starting in FY '26 [4][18] - Centuria plans to continue proactive capital management and seek new lower-cost corporate debt sources [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving real estate investment environment due to falling cash rates and increasing transaction volumes [6][35] - The company anticipates a continued increase in investor appetite for real estate funds, driven by lower competing deposit and fixed interest rate returns [7][35] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [29][30] Other Important Information - Centuria's net asset value per security remained steady at AUD 1.79, with operating gearing at 12.3% [29] - The company has raised an additional AUD 100 million in liquidity and expects to repay its secured ASX listed redeemable notes ahead of maturity [30] - The weighted average debt duration has been extended from 2.3 years to 3.2 years, enhancing financial stability [31] Q&A Session Summary Question: Inquiry about payout ratio and DPS guidance - Management acknowledged that their payout ratio has been higher than peers and indicated a minor adjustment to address this, but did not commit to future forecasts [42][44] Question: Clarification on the AUD 1 billion acquisition guidance - The AUD 1 billion figure is a gross number, with approximately AUD 200 million already secured from a recent acquisition [45][46] Question: Potential implications of proportional consolidation of earnings - Management indicated that while there could be implications, they believe the new reporting structure aligns better with peers and enhances transparency [48][50] Question: Guidance on innovative fund structures and potential IPOs - Management confirmed that guidance includes a range of raisings, with ongoing work on new fund structures, but specifics on sectors for potential IPOs are still being developed [51][54] Question: Equity inflows and mix for FY '26 - Management expects a good mix of retail and institutional capital, with a focus on expanding institutional partnerships [58] Question: Competition in the Bass Credit market - Management acknowledged increased competition and margin pressure but noted a recent uptick in market activity [60]