Financial Data and Key Metrics Changes - Total revenue increased by 13.1% year over year to RMB 35 billion in Q2 2025, with adjusted net profit reaching RMB 5.6 billion and an adjusted margin of 16% [5][34][40] - Gross profit grew by 13.8% year over year to RMB 19.5 billion, with a gross profit margin of 55.7%, reflecting a 0.4 percentage point increase year over year [38] - Selling and marketing expenses rose by 4.6% year over year to RMB 10.5 billion, accounting for 30% of total revenue, down from 32.4% in Q2 last year [39] Business Line Data and Key Metrics Changes - Revenue from online marketing services increased by 12.8% year over year to RMB 19.8 billion, driven by enhanced AI capabilities [35][56] - E-commerce GMV rose by 17.6% year over year, with the number of monthly average paying users reaching 134 million [19][74] - Revenue from Clean AI surpassed RMB 250 million in Q2, indicating strong growth in AI-driven services [9][36] Market Data and Key Metrics Changes - Average DAUs on the Kuaishou app reached an all-time high of 409 million, with MAUs at 715 million, reflecting a year-over-year increase of 3.4% and 3.3% respectively [11][12] - Revenue from local services grew by 20% year over year to RMB 1.3 billion, with DAUs in Brazil showing stable growth [28][29] Company Strategy and Development Direction - The company is focused on leveraging AI technology to enhance user experience and operational efficiency across its business lines [4][34] - Clean AI is positioned as a one-stop creative engine, with plans to expand its applications in gaming and professional film production [8][49] - The company aims to maintain high-quality growth while exploring synergies between content and business ecosystems [32][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth prospects, highlighting the resilience of its business ecosystem amid macro uncertainties [5][6] - The company plans to continue investing in AI technologies to drive efficiency and discover new commercialization opportunities [32][84] Other Important Information - A special dividend of HKD 0.46 per share was declared for the first time since delisting, amounting to approximately HKD 2 billion in total [5][6] - The company will no longer disclose quarterly GMV figures separately starting in 2026, focusing instead on a more comprehensive set of indicators [41][42] Q&A Session Summary Question: What are the major use cases for Clean AI users at the moment? - Clean AI's users include mass creators and professional creators, with applications in content creation, advertising, and film production [46][47] Question: What are the AI use cases in the overall business? - AI technology is integrated across various business scenarios, enhancing marketing material generation and improving user engagement [54][56] Question: What verticals are expected to have strong growth in the second half of the year? - Strong growth is anticipated in local services, automotive, and content consumption industries, with strategies to enhance client outreach and operational results [62][64] Question: How does Kuaishou maintain momentum in e-commerce amid competition? - The company focuses on synergizing supply and demand, enhancing merchant capabilities, and improving user engagement to drive e-commerce growth [72][74] Question: What updates are there on AI CapEx and net profit margin? - AI-related CapEx is expected to double, with the impact on overall profitability projected to remain around 1% to 2% [82][84]

Financial Data and Key Metrics Changes - Total revenue increased by 13.1% year over year to RMB 35 billion in Q2 2025, with adjusted net profit rising by 20.1% to RMB 5.6 billion, achieving a margin of 16% [7][37][38] - Gross profit grew by 13.8% year over year to RMB 19.5 billion, with a gross profit margin of 55.7%, reflecting a 0.4 percentage point increase year over year [40][41] - Selling and marketing expenses rose by 4.6% year over year to RMB 10.5 billion, accounting for 30% of total revenue, down from 32.4% in the previous year [42] Business Line Data and Key Metrics Changes - Revenue from online marketing services reached RMB 19.8 billion, up 12.8% year over year, driven by enhanced AI capabilities [38][39] - E-commerce GMV rose by 17.6% year over year, with the number of average monthly paying users reaching 134 million [22][23] - Revenue from Clean AI surpassed RMB 250 million, indicating strong growth in AI-driven services [12][39] Market Data and Key Metrics Changes - Average DAUs on the Kuaishou app reached an all-time high of 409 million, with MAUs at 715 million, reflecting a year-over-year increase of 3.4% and 3.3% respectively [14][6] - Revenue from external marketing services continued to grow, driven by strong demand from content consumption, local services, and automotive industries [19][20] Company Strategy and Development Direction - The company is focused on integrating AI technology across its business, enhancing user experience, and optimizing marketing solutions [36][37] - The strategy includes expanding Clean AI's applications in gaming and professional film production, aiming to empower creators and enhance operational efficiency [51][53] - The company plans to discontinue separate GMV disclosures starting in 2026, focusing on a more nuanced combination of performance indicators [44][45] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth prospects, emphasizing the resilience of its business ecosystem amid macro uncertainties [7][8] - The company aims to maintain high-quality growth while exploring new commercialization opportunities through AI [35][46] - Future investments will continue to focus on AI technology to enhance operational efficiencies and drive sustainable growth [86][87] Other Important Information - A special dividend of HKD 0.46 per share was declared for the first time since delisting, totaling approximately HKD 2 billion [8] - The company has repurchased shares amounting to HKD 1.9 billion, representing about 0.9% of total shares outstanding [43] Q&A Session Summary Question: What are the major use cases for Clean AI users at the moment? - Clean AI's users include mass creators and professional creators, with applications in content creation, advertising, and film production [48][50] Question: What are the AI use cases in the overall business? - AI technology is integrated across various business scenarios, enhancing marketing material generation and improving user engagement [57][59] Question: What verticals are expected to have strong growth in the second half of the year? - Growth is anticipated in local services, automotive, and content consumption industries, with strategies to enhance client outreach and marketing efficiency [66][68] Question: How does Kuaishou maintain momentum in e-commerce amid competition? - The company leverages a synergized ecosystem and tailored initiatives for merchants, focusing on user acquisition and repeat purchases [74][76]

Financial Performance - The group's revenue was flat for the first half of 2025, with a volume increase of 3.8% to 27.5 million pairs, primarily driven by the sports segment [4][5] - The average selling price (ASP) decreased by 3.2% due to a higher proportion of sports products with lower ASP [5] - Operating profit margin fell to 10.9%, down 30 basis points, with net profit declining by 14.6% to $78 million [5][6] - Gross profit margin decreased by 22% compared to 25.6% last year, attributed to high labor costs and temporary efficiency issues in factories [6][9] Business Line Performance - Revenue from the sports segment increased by 8.2%, accounting for 48.5% of total manufacturing revenue, driven by higher shipments to major customers [16] - The luxury category reported a net decrease of 3.5%, while the CASM category declined by 9.2%, reflecting a strategic reallocation of capacity [17] - The company commenced shipments to new customers, including Under Armour and Justin Bieber's brand, Skylar, contributing to the sports segment's growth [15][16] Market Performance - North America and Europe accounted for 48.7% and 23.4% of total revenue, respectively, with China contributing 25% of manufacturing capacity [17][18] - The company anticipates sustained growth, with plans to scale up total capacity by an additional 21 to 26 million pairs through new factories [19] Strategic Direction and Industry Competition - The company is focused on optimizing production efficiency and diversifying manufacturing capacity to align with customer needs [11][24] - A new three-year plan is being finalized, aiming for a 10% operating margin and low single-digit growth [22][24] - The company has received an MSCI ESG rating upgrade to AA, reflecting improvements in environmental performance [21] Management Commentary on Operating Environment and Future Outlook - Management expects moderate increases in shipment volumes for the full year, with continued pressure on profit margins due to efficiency improvements [22][23] - The company is addressing operational challenges in Indonesia and the Philippines, with plans for a turnaround in the second half of the year [30][31] - Tariff impacts are anticipated to affect strategic customer partnerships, with a focus on optimizing operations [23][24] Other Important Information - The company declared a $0.52 interim dividend, maintaining a payout ratio above the previous year's [5][9] - A solid net cash balance of $291 million is reported, with plans for share repurchases or special dividends in the future [8][25] Q&A Session Summary Question: Can you provide insights on the handbag business and its recovery timeline? - The company acquired a small factory specializing in handbags to expand this segment, with expectations for gradual growth [28][29] Question: Any updates on the full-year outlook? - The outlook remains consistent with previous guidance, with expectations of $6 million to $7 million in tariff impacts [30][31] Question: Will margins return to normal levels? - Management aims to restore margins to normal levels by Q4 2026, learning from past expansion challenges [32][33] Question: What are the reasons for revenue declines in China and Europe? - Revenue declines are attributed to customer allocation decisions and pre-order impacts from the previous year [36] Question: Can you quantify the inefficiencies in the first half? - Inefficiencies related to the Philippines and Indonesia resulted in approximately $7 million in profit loss [45] Question: What are the conversations like with brand customers? - Brand customers are cautious but looking to innovate and consolidate suppliers amid tariff uncertainties [47][49] Question: How is the dividend and buyback strategy affected? - There are no changes to the dividend payout policy or capital return strategy, with plans for continued shareholder returns [89]

Financial Data and Key Metrics Changes - Revenue grew by 13.6%, reaching HKD 45.5 billion, while profit attributable to equity shareholders increased by 34.7%, reaching HKD 610 million, with an EPS of HKD 0.04406 and ROE of 13.7%, significantly higher than the Hang Seng Index average ROE of 10.94% [2] - The company has experienced a steady growth in revenue since being listed, with a CAGR of 24% and an average annual growth rate of 28% for net profit [3] Business Segment Data and Key Metrics Changes - Enterprise Systems revenue increased by 14.1%, from 22.5 billion yen to 25.7 billion yen, while Consumer Electronics grew by 7.5%, from 15.9 billion yen to 17.2 billion yen [5] - Cloud computing revenue grew exponentially by 67.9%, from 1.56 billion yen to 2.61 billion yen [6] Market Data and Key Metrics Changes - North Asia revenue increased from 26.4 billion yen to 28.7 billion yen, while Southeast Asia grew by 22.5%, from 13.6 billion yen to 16.7 billion yen [6] - Southeast Asia saw significant growth in various countries: Thailand (50%), Philippines (45.4%), Malaysia (31%), and Indonesia (30%), with Singapore experiencing a revenue decrease of 19% [9][10] Company Strategy and Development Direction - The company aims to become one of the largest ICT industry solutions technology platforms in the Asia Pacific region, focusing on digital construction and maintaining a leading position in the industry [14] - The strategy includes enhancing operational efficiency and digitalization while creating sustainable social values [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the strong demand for AI computing, which has driven revenue growth, particularly in Southeast Asia, and expressed confidence in the sustainability of this growth [19] - The company is cautious about the operating risks due to Sino-U.S. trade conflicts but sees opportunities in domestic products for Southeast Asia [17] Other Important Information - The company maintains a stable dividend payout policy at around 35% and has no immediate plans to increase the payout ratio despite strong growth [30] - There are ongoing considerations for M&A expansions, with a strong intention to speed up the process [31] Q&A Session Summary Question: Regarding AI trends and Southeast Asia opportunities - Management noted that AI computing demand has driven revenue growth in Southeast Asia, with infrastructure computing demand being a significant factor [18] Question: Details on CloudStar's business development - Management discussed the advantages of CloudStar in multi-cloud management and scheduling, emphasizing increased investment in R&D and AI capabilities [23] Question: Future dividend strategy - The company plans to maintain a stable dividend payout ratio at around 35% and balance business development with dividend payouts [30] Question: Revenue guidance for the next few years - Management indicated that while forecasting business in China is challenging, there are many opportunities in overseas markets, particularly in Southeast Asia [32]

Financial Data and Key Metrics Changes - Revenue grew by 13.6%, reaching HKD 45.5 billion, while profit attributable to equity shareholders increased by 34.7%, reaching HKD 610 million, with an EPS of HKD 0.4406 and ROE of 13.7%, significantly higher than the Hang Seng Index average ROE of 10.94% [3] - The company has maintained a steady growth in revenue since being listed, with a CAGR of 24% and an average annual growth rate of 28% for net profit [4] Business Segment Data and Key Metrics Changes - Enterprise Systems revenue increased by 14.1%, from 22.5 billion yen to 25.7 billion yen, while Consumer Electronics grew by 7.5%, from 15.9 billion yen to 17.2 billion yen [6] - Cloud computing revenue grew exponentially by 67.9%, from 1.56 billion yen to 2.61 billion yen [7] Market Data and Key Metrics Changes - North Asia revenue increased from 26.4 billion yen to 28.7 billion yen, while Southeast Asia grew by 22.5%, from 13.6 billion yen to 16.7 billion yen [7] - Southeast Asia saw significant growth in various countries: Thailand (50%), Philippines (45.4%), Malaysia (31%), and Indonesia (30%), with Singapore experiencing a revenue decrease of 19% [10][11] Company Strategy and Development Direction - The company aims to become one of the largest ICT industry solutions technology platforms in the Asia Pacific region, focusing on digital construction and maintaining a leading position in the industry [15] - The strategy includes enhancing cross-border payment efficiency through innovative technologies like stablecoins and creating value in the digital economy [2] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainable growth of AI computing demand, which has driven revenue in Southeast Asia [20] - The company plans to continue investing in AI and cloud capabilities, with expectations of further growth in these areas [24][30] Other Important Information - The company maintains a stable dividend payout policy at around 35% and has no immediate plans to increase the payout ratio [31] - There are ongoing considerations for M&A expansions, with a strong intention to accelerate the process [32] Q&A Session Summary Question: Regarding AI and Southeast Asia strategy amidst trade conflicts - Management highlighted that AI infrastructure demand has positively impacted revenue, and they are exploring opportunities for domestic products in Southeast Asia [19] Question: Details on CloudStar's business development - Management discussed the advantages of CloudStar in multi-cloud management and the ongoing investments in R&D and AI capabilities [24] Question: Future prospects for AI business and revenue growth - Management acknowledged the unexpected 76% growth in AI business and emphasized continued investment in this area [30] Question: Dividend strategy and M&A plans - The company confirmed a stable dividend policy and expressed strong intentions for M&A expansions [31][32] Question: Revenue guidance for the next two to three years - Management indicated challenges in forecasting business in China but noted opportunities in overseas markets, particularly in Southeast Asia [33]

Financial Data and Key Indicators Changes - Total revenue amounted to RMB76.9 billion, up 3.4% year on year, while net profit reached RMB2.1 billion, up by 0.2% year on year [5] - Operating profit increased by 8.4% year on year in the first half of the year, with operating profit margin steadily improving [5] - R&D investment reached RMB2.2 billion, with nearly 100 prestigious technology awards received [7][8] Business Line Data and Key Indicators Changes - Revenue from Application, Content and Other Services (ACO) business rose by 11.7% year on year [6] - Telecommunications Infrastructure Services (TIS) business revenue increased by 1.6% year on year, with a significant growth of 18.5% in the domestic non-operator market [6] - Business Process Outsourcing (BPO) services maintained steady growth [6] Market Data and Key Indicators Changes - Revenue from the domestic operator market reached RMB38.2 billion, with ACO business in this market achieving a growth of 9% [18] - Revenue from the domestic non-operator market increased by 12.9% year on year, reaching RMB36.6 billion [18] - Overseas market revenue grew by 8.7% year on year, with sound development quality [21] Company Strategy and Development Direction and Industry Competition - The company is focusing on digital intelligence transformation and expanding strategic emerging businesses to strengthen future growth momentum [4] - Emphasis on technological innovation and integration of AI technology with innovation to drive business development [4] - The company aims to empower traditional businesses while incubating products in cutting-edge fields, particularly in AI [9][10] Management Comments on Operating Environment and Future Outlook - Management highlighted resilience amid external challenges and steady growth in operating performance [4] - The company will continue to focus on customers' transformation needs in digitalization, intelligentization, and green initiatives [10] - Future strategies include targeting intelligent computing, supercomputing, and advanced telecommunications sectors [11] Other Important Information - The company secured new contracts amounting to about RMB106 billion in the first half of the year, with strategic emerging businesses accounting for over RMB42 billion [10] - The proportion of strategic emerging businesses to total new contracts increased to over 40% compared to over 35% last year [10] - The company is actively expanding into finance, Internet, and digital intelligence sectors [11][13] Q&A Session Summary Question: What are the key growth areas for the company moving forward? - The company will focus on intelligent computing, supercomputing, and advanced telecommunications sectors, leveraging AI and digital technologies [11][12] Question: How is the company addressing challenges in the domestic operator market? - The company is deepening strategic collaboration with operators and focusing on upgrading traditional business models to meet transformation needs [18] Question: What measures are being taken to enhance operational efficiency? - The company is implementing cost reduction and efficiency enhancement measures, optimizing organizational structure, and enhancing labor productivity [25]

Financial Data and Key Indicator Changes - Total revenue for the first half of 2025 amounted to RMB 76.9 billion, representing a year-on-year increase of 3.4% [5] - Net profit reached RMB 2.1 billion, up by 0.2% year on year [5] - Operating profit increased by 8.4% year on year, with an improving operating profit margin [5][6] - R&D investment reached RMB 2.2 billion, with nearly 100 prestigious technology awards received [8] Business Line Data and Key Indicator Changes - Revenue from Application, Content and Other Services (ACO) rose by 11.7% year on year [6] - Telecommunications Infrastructure Services (TIS) revenue increased by 1.6% year on year [6] - Business Process Outsourcing (BPO) services maintained steady growth [6] - Revenue from domestic non-operator market increased by 12.9% year on year, while overseas market revenue grew by 8.7% [6][18] Market Data and Key Indicator Changes - Revenue from the domestic operator market reached RMB 38.2 billion, with ACO business growing by 9% [18] - Domestic non-operator market revenue was RMB 36.6 billion, showing a 12.9% year-on-year increase [18] - Overseas market revenue grew by 8.7% year on year, with significant developments in Latin America and the Asia Pacific [21] Company Strategy and Development Direction - The company is focusing on digital intelligence transformation and expanding strategic emerging businesses [4] - Emphasis on technological innovation and integration of AI technology with innovation [4] - Targeting key sectors such as government, data centers, and emergency management for AI applications [9][10] - Aiming to enhance core competencies while balancing high-quality development with security [13][14] Management Comments on Operating Environment and Future Outlook - Management highlighted resilience amid external challenges and steady growth in operating performance [4] - The company is committed to leveraging technological breakthroughs and industrial demand to empower traditional businesses [9] - Future focus will be on intelligent computing, supercomputing, and advanced telecommunications [11][12] Other Important Information - New contracts in the first half of the year amounted to approximately RMB 106 billion, with strategic emerging businesses accounting for over RMB 42 billion [10] - The proportion of strategic emerging businesses to total new contracts increased to over 40% [10] - The company aims to transform traditional services into smart operation support services to enhance recurrent revenue sources [14] Q&A Session Summary Question: What are the company's strategies for future growth? - The company will focus on technological innovation, expanding into new sectors, and enhancing its service capabilities to drive growth [28] Question: How does the company plan to manage costs? - The company is implementing AI digitalization measures to strengthen management across various business processes and control costs effectively [26] Question: What is the outlook for the overseas market? - The company will continue to expand its overseas market presence, particularly in Latin America and the Asia Pacific, while enhancing collaborative partnerships [21]

Financial Data and Key Metrics Changes - AIA reported a 14% increase in the Value of New Business (VONB) to a record high of $2,800,000,000, with underlying free surplus generation per share growing by 10% and operating profit after tax per share rising by 12% [2][22] - The operating return on embedded value (ROEV) increased by 290 basis points to 17.8%, while the operating return on equity (ROE) reached a record 16.2% [22][34] - The company returned $3,700,000,000 to shareholders in the first half, with a 10% increase in the interim dividend per share declared by the Board [3][23] Business Line Data and Key Metrics Changes - In Hong Kong, VONB reached a record $1,100,000,000, up 24%, driven by strong demand from both domestic customers and mainland Chinese visitors [3][4] - AIA China reported VONB of $743,000,000, with growth accelerating to 15% in the second quarter, supported by a professional agency model [5][8] - The ASEAN region saw VONB grow by 20% to over $1,000,000,000, with agency VONB up by 22% and partnerships up by 16% [9][10] Market Data and Key Metrics Changes - AIA's new regions in Mainland China grew by 36% in the first half, contributing over 8% of AIA China's VONB [8] - The company remains the leading life and health insurer in ASEAN, with 95% of VONB coming from traditional protection and long-term savings products [10] - In India, Tata AIA Life's VONB increased by 38%, with the agency contributing more than half of the total VONB [11] Company Strategy and Development Direction - AIA's growth strategy focuses on high-quality, profitable new business, leveraging its competitive advantages in distribution and innovative product offerings [12][14] - The company aims to capture the growing demand for life and health insurance in Asia, driven by favorable demographics and rising personal financial assets [13][40] - AIA is committed to integrating health care into its insurance solutions, enhancing customer value and supporting sustainable profitability [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AIA's ability to deliver compounding new business growth, sustaining higher earnings and cash flow generation into the future [21][40] - The company highlighted the importance of maintaining a diversified portfolio of high-quality recurring profit streams that are resilient across economic cycles [3][12] - Management noted that Asia is the most attractive region for life and health insurance, with significant growth opportunities ahead [12][40] Other Important Information - AIA's agency remains the number one in Hong Kong and Macau, contributing significantly to growth, with a 35% increase in the agency's new business [4][15] - The company has implemented a robust capital management policy, targeting a payout ratio of 75% of annual net free surplus generation [36][101] - AIA has returned a total of $22,000,000,000 to shareholders since 2022, demonstrating its commitment to shareholder returns through dividends and buybacks [39][101] Q&A Session Summary Question: TSR guidance for 2026 and significance of India's new business value - Management acknowledged the importance of TSR and highlighted the direct returns to shareholders through increasing dividends and buybacks [45][49] - Regarding Tata AIA's performance, it was noted that India contributes approximately one-third of the group's new business value [46][55] Question: Growth ambition for AIA China and sustainability of ROE and ROEV - Management confirmed the ambitious 40% CAGR target for new regions in China, emphasizing a balance between stretch and quality [58][61] - The record highs in ROE and ROEV were attributed to high-quality new business and disciplined capital management [69][70] Question: Impact of competitive landscape changes in Hong Kong and future dividend expectations - Management indicated strong fundamentals in Hong Kong, with agency sales contributing significantly to growth despite competitive pressures [94][97] - The company remains flexible in its capital management, considering both dividends and buybacks for shareholder returns [101][102]

Financial Data and Key Metrics Changes - AIA Group reported a 14% increase in the Value of New Business (VONB) to a record high of $2,800,000,000, with underlying free surplus generation per share growing by 10% and operating profit after tax per share rising by 12% [1][21] - The operating return on embedded value (ROEV) increased by 290 basis points to 17.8%, while operating return on equity (ROE) reached a record 16.2% [21][31] - The company returned $3,700,000,000 to shareholders in the first half, with a declared 10% increase in interim dividend per share [2][22] Business Line Data and Key Metrics Changes - In Hong Kong, VONB reached $1,100,000,000, up 24%, driven by strong demand from both domestic customers and mainland Chinese visitors [2][3] - AIA's agency channel in Hong Kong saw a 35% increase in Direct Operating New Business (DOMB), supported by a larger active agent base and productivity gains [3] - AIA China reported VONB of $743,000,000, with growth accelerating to 15% in the second quarter, primarily driven by the professional primary agency [4][6] Market Data and Key Metrics Changes - The ASEAN region contributed over one-third of the group's VONB, with a 20% increase to over $1,000,000,000 for the first time [7] - In India, Tata AIA Life achieved a VONB growth of 38%, maintaining its position as a market leader in retail protection [9] Company Strategy and Development Direction - AIA's strategy focuses on high-quality recurring profit streams in protection, health, and long-term savings, which are resilient across economic cycles [2][12] - The company aims to replicate its success in Mainland China, expecting a compound annual growth rate (CAGR) of 40% in new business from newly entered regions over the next five years [6][60] - AIA is leveraging its multichannel distribution platform and innovative product offerings to meet the growing needs of Asia's middle class and affluent populations [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AIA's ability to deliver sustainable growth and long-term value for shareholders, citing strong fundamentals and a robust capital management policy [20][37] - The company highlighted the compelling demographics in Asia, with a rapidly expanding customer base for protection, health, and retirement needs [10][11] Other Important Information - AIA's integrated health care strategy is enhancing customer value and supporting sustainable profitability, with a focus on personalized health products [15][16] - The company has made significant investments in technology, including generative AI, to improve customer engagement and operational efficiency [18][19] Q&A Session Summary Question: TSR guidance for 2026 and significance of India's new business value - Management acknowledged the importance of TSR and highlighted the direct returns to shareholders through increasing dividends and share buybacks [42][47] - Regarding Tata AIA's contribution, it was noted that India's new business value is still below 5% of the total group new business value [43][50] Question: Growth ambition for AIA China and sustainability of ROE and ROEV - Management confirmed the ambitious 40% CAGR target for new regions in China, emphasizing a balance between stretch and quality [57][60] - The record high ROE and ROEV were attributed to high-quality new business and effective management of the in-force book [68][70] Question: Impact of competitive landscape changes in Hong Kong - Management indicated strong fundamentals in Hong Kong, with continued growth expected despite competitive pressures [93][96] - The launch of a new innovative long-term savings product was well received, contributing to sustained demand [89][98] Question: Future capital management and shareholder returns - Management reiterated a commitment to a prudent and progressive dividend policy, with flexibility to return excess capital to shareholders through dividends and buybacks [101][102]

Financial Data and Key Metrics Changes - Revenue reached nearly RMB 10 billion, representing a 16.1% increase year-over-year [28] - Adjusted EBITDA increased by 20.6% to RMB 4.3 billion, with an adjusted EBITDA margin of 43.3% [35][36] - Adjusted net profit exceeded RMB 2.8 billion, reflecting an 11.6% year-over-year increase [36] - Gross profit margin improved from 39.1% to 42.7%, with adjusted gross profit margin at 45.6% [7][40] Business Line Data and Key Metrics Changes - Research and Development (R&D) revenue grew over 35% year-over-year, driven by a strong pipeline of projects [30] - Late-phase and commercial manufacturing revenue grew close to 25%, representing over 43% of the total portfolio [30] - Early-phase revenue saw a decline due to timing issues with large-scale clinical manufacturing projects transitioning from phase two to phase three [30][31] Market Data and Key Metrics Changes - North America accounted for nearly 60% of revenue, with a growth rate of 20% [23] - Europe contributed close to 20% of revenue, showing modest growth as the company shifts focus from CMO projects to early-phase programs [24] - China represented 13% of revenue, experiencing a single-digit decline primarily due to out-licensing of programs to global partners [25] - Asia, particularly Japan, Korea, and Singapore, showed significant growth, now accounting for nearly 7% of revenue with more than double the growth rate [26] Company Strategy and Development Direction - The company emphasizes a unique CRDMO model, focusing on both service-based and IP-driven revenue streams [50][57] - The strategy includes expanding capacity globally, with significant investments in facilities in the US, Ireland, and Singapore [47][79] - The company aims to leverage its strong portfolio in ADCs and bispecifics, which now account for over 40% of its project portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the company has absorbed post-COVID industry adjustments and is positioned for accelerated growth [28] - The backlog has shown significant growth, with milestone backlog increasing from RMB 7 billion to RMB 9 billion and service backlog from RMB 10 billion to RMB 11.3 billion [16][17] - The company expects to continue benefiting from global biotech trends, including M&A activities and out-licensing of Chinese assets to global partners [63][64] Other Important Information - The company achieved a 100% success rate in regulatory inspections, hosting 44 inspections [6] - Employee retention rate remains high at 98.8%, with no increase in total employee numbers over the past 18 months [42] - The company has a strong cash position with RMB 12.5 billion on hand and a conservative debt level of RMB 2.7 billion [43][47] Q&A Session Summary Question: What are the key drivers for revenue growth in the upcoming quarters? - Management highlighted the successful execution of the follow and win molecule strategies, with a strong pipeline of late-phase projects expected to ramp up [29] Question: How does the company plan to address the decline in early-phase revenue? - The decline is attributed to timing issues with large-scale projects transitioning to manufacturing, which is expected to be replenished by new projects in the pre-IND space [30][31] Question: What is the company's outlook on the global market trends? - Management expressed confidence in continued growth driven by M&A activities and the out-licensing of Chinese biotech programs to global partners, which typically results in significant revenue amplification [63][64]