Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $12,600,000 for Q2 2025, representing a 26% increase compared to $10,000,000 in the same period last year [4][12] - Gross profit for the quarter was $9,500,000, up from $7,500,000 in the prior year, maintaining a strong gross margin of 75% [12][13] - Net profit for the quarter was $2,000,000 compared to $600,000 in the same period of 2024 [14] - Remaining performance obligation grew to $62,000,000, a 25% year-over-year increase, providing strong visibility into future revenue [16] Business Line Data and Key Metrics Changes - The company shipped a total of 88 Deep TMS systems during the quarter, representing a 35% increase compared to the same period last year [4][5] - The total installed base reached 1,522 systems as of June 30, 2025, compared to 1,215 systems a year ago [12] Market Data and Key Metrics Changes - The company has focused on generating recurring revenue streams through multiyear lease agreements, which now account for approximately 70% of recent customer engagements [5] - The backlog of signed agreements with remaining performance obligations totaled approximately $62,000,000, indicating strong future revenue visibility [5][16] Company Strategy and Development Direction - The company aims to elevate market awareness of Deep TMS, advance its R&D roadmap, and broaden patient access through global expansion and health system integration [6] - A new initiative to generate shareholder value through minority interest investments in mental health providers was identified, with a strategic equity investment of $20,000,000 from Valo Equity Partner [10][11] - The company plans to sign at least five contracts for strategic financing arrangements by the end of the year, with a goal of 10 contracts by 2026 [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the accelerated treatment protocol for Deep TMS, expecting FDA clearance by Q4 2025, which could significantly enhance patient convenience [20][21] - The company raised its full-year 2025 revenue guidance to a range of $50,000,000 to $52,000,000, representing 22% to 27% growth over 2024 revenue [17] Other Important Information - The company has engaged in educational initiatives to enhance clinician knowledge and confidence in Deep TMS, including funding new continuing medical education courses [7][8] - Cash position at the end of the quarter was $78,300,000, up $30,200,000 from the same point last year, reflecting strong collections and strategic investments [14][15] Q&A Session Summary Question: Can you discuss the accelerated protocol and its market potential? - Management expects to receive FDA feedback on the accelerated protocol by Q4 2025, which could reduce treatment time significantly, making it more appealing to patients [20][21] Question: What is the size of the commercial organization and its growth? - The current sales team consists of 16 direct sales personnel and 10 practice development staff, totaling 26 individuals supporting sales activities [25] Question: What is the status of the TMS 360 and pilot studies? - The TMS 360 is planned for launch with an alcohol use disorder trial in Q3 2025, alongside feasibility studies for other indications [27] Question: What is the composition of the backlog and OCD placements? - The majority of the backlog comes from enterprise customers, with 30 OCD systems shipped in the second quarter [32] Question: How many strategic financing arrangements are planned for this year? - The company aims to sign at least five new contracts for strategic investments by the end of the year, with potential investments ranging from $2,000,000 to $5,000,000 [36][37] Question: How has the Stella financing arrangement been performing? - The collaboration with Stella MSO has resulted in over a 50% increase in TMS patient utilization, demonstrating the effectiveness of the partnership [38]

Financial Data and Key Metrics Changes - Nexteer achieved record first half revenue of $2,200,000,000, increasing by 6.8% compared to the prior year [25][27] - EBITDA grew year over year by 16.8%, with margins expanding by 90 basis points [26][33] - Net profit reached $63,000,000, which is four times higher year over year, with margins improving by 210 basis points [27][33] - Free cash flow for 2025 was positive at $37,000,000, compared to a slight cash use last year [28][41] Business Line Data and Key Metrics Changes - In the first half, Nexteer launched 31 new programs, with 23 representing new or conquest businesses [6][9] - The company secured $1,500,000,000 in new business bookings, with nearly 40% coming from Chinese OEMs [12][14] - 69% of bookings were in the EPS product line, with 47% secured in the APAC region [14][30] Market Data and Key Metrics Changes - APAC revenue increased by 17%, outperforming the market by 9%, driven by significant new and conquest program launches with Chinese OEMs [30][31] - North America revenue was $1,138,000,000, which is 1.7% higher than last year [31] - EMEA revenue increased by 9.4%, reflecting improved operating efficiency and revenue growth [32][38] Company Strategy and Development Direction - Nexteer is focused on technology leadership and operational efficiency, with a commitment to expanding its manufacturing footprint and enhancing supply chain resilience [7][8] - The company is investing in motion by wire technologies, including steer by wire and brake by wire, to align with industry megatrends [15][19] - Strategic expansions in Changshu and Riozhou are aimed at meeting growing demand and enhancing operational efficiencies [23][24] Management's Comments on Operating Environment and Future Outlook - Management expects to achieve the full year booking target of $5,000,000,000, despite a flat forecast for global OEM production volumes [42] - The company is closely monitoring the U.S. tariff environment and geopolitical tensions that may impact production volumes [42][43] - Management remains optimistic about the adoption of steer by wire technology in the Chinese market, anticipating significant growth opportunities [53] Other Important Information - Nexteer is committed to becoming tariff cost neutral by working collaboratively with customers and suppliers to mitigate tariff impacts [62][64] - The company has introduced the Motion IQ software suite to enhance vehicle dynamics and streamline development processes for OEMs [21][70] Q&A Session Summary Question: Booking slowdown in North America - Management noted that bookings depend on customer product planning cycles, and while there was a slowdown, they remain confident in achieving the annual booking goal of $5,000,000,000 [48][50] Question: Adoption of BiWire technology in China - Management expressed optimism about the increasing interest and adoption of steer by wire technology among Chinese OEMs, with expectations for significant growth in the coming years [52][53] Question: Delays in EV program launches in the U.S. - Management acknowledged some delays in EV program development in North America but emphasized that their products are compatible with various powertrains, allowing them to capture market share [56][58] Question: Guidance on tariff impact and restructuring costs - Management confirmed that the net tariff costs incurred in the first half were not fully passed through to customers and outlined plans to mitigate these costs in the second half [62][64][66]

Financial Data and Key Metrics Changes - The company reported a GMV of $1,450,000,000, representing a 34% year-over-year increase [9] - Revenue reached almost $215,000,000, up 28% year-over-year [9] - Adjusted gross profit for Q2 was just shy of $100,000,000, a 24% increase from last year [9] - Adjusted EBITDA was $38,500,000, up 23% compared to the same quarter last year, resulting in a 17.9% margin [9][26] - The company achieved GAAP profitability with a net profit of $10,500,000 compared to a net loss of $22,400,000 in the same quarter last year [9][27] - Cash and cash equivalents at the end of the quarter were $516,000,000, with free cash flow of $63,500,000 [27] Business Line Data and Key Metrics Changes - Service fee revenue for the quarter was $102,900,000, while fulfillment services revenue was $112,000,000 [23] - The service fee take rate increased compared to Q1 2025, while the fulfillment take rate decreased as expected [23] - Non-GAAP gross profit was $99,900,000, representing a gross margin of 46.5% [24] Market Data and Key Metrics Changes - The company continues to see strong growth across many geographies and cohorts of merchants, with a positive trend in trading patterns continuing into Q3 [10][11] - The U.S. market showed strong growth, outperforming other developed markets, driven by digitally native brands [78] Company Strategy and Development Direction - The company extended its partnership with DHL for an additional three years, enhancing service to merchants [14] - The acquisition of ReturnGo aims to improve post-purchase solutions for merchants [14][29] - The company is focused on enhancing its 3B2C offering to help brands offset costs due to rising tariffs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite uncertainties around duty tariffs [7][10] - The company anticipates continued strong trading volumes and does not expect significant impacts from upcoming tariff changes [10][36] - The outlook for Q3 includes GMV expectations in the range of $1,455,000,000 to $1,495,000,000, representing a growth rate of 30% versus 2024 [28] Other Important Information - The company is on track for its first full year of GAAP profitability in 2025 [10][27] - The integration of ReturnGo's technology is expected to enhance the return experience for customers [15] Q&A Session Summary Question: Impact of de minimis exemption changes - Management indicated that they do not expect a significant impact from the removal of the de minimis exemption, citing resilient trading patterns [34][36] Question: Acquisition impact on revenue and OpEx - The acquisition of ReturnGo is expected to have a slight positive impact on revenue and a negative impact on adjusted EBITDA in 2025, with expectations of neutral impact by 2026 [39] Question: 3B2C product uptake and take rates - The 3B2C solution has seen growing interest, with take rates expected to remain stable as they are similar to regular B2C transactions [45][46] Question: U.S. business growth dynamics - The U.S. business is outperforming due to strong growth from digitally native brands, contributing to overall growth [78] Question: BorderFree contribution to revenue - The BorderFree platform contributed over 4% of sales from merchants utilizing the service, with expectations for further growth [87] Question: International market opportunities - The company sees significant potential in APAC, particularly in Korea and Taiwan, with plans for increased sales and account management resources in the region [109]

Financial Data and Key Metrics Changes - The company reported net revenue of $25.8 million for the second quarter, representing a 28% year-over-year growth [5] - Gross profit increased by $5.7 million or 32% to $23.9 million, with gross margin rising approximately 250 basis points to 93% of net revenue [29] - The net loss for the second quarter was $2 million or $0.23 per diluted share, compared to a net loss of $3.5 million or $0.42 per diluted share in the previous year [31] - Adjusted EBITDA for the second quarter was $2.7 million, an increase of $2.1 million or 350% year-over-year [33] Business Line Data and Key Metrics Changes - The Surgical segment generated net revenue of $25.8 million, with soft tissue product sales increasing 28% year-over-year to $22.7 million [5][6] - Bone Fusion products saw a 25% year-over-year increase in sales to $3.1 million [6] - The Surgical segment achieved a net income of approximately $500,000, an improvement of $2.7 million year-over-year [6] - The Tissue Health Plus (THP) segment reported a net loss of $2.5 million, compared to a net loss of $1.3 million last year [32] Market Data and Key Metrics Changes - The company expanded its distributor network to over 400 distributors, up from more than 300 the previous year [18] - The customer base grew to over 1,400 healthcare facilities, compared to more than 1,100 in the prior year [19] - The number of surgeons using the company's products in existing facilities increased significantly, indicating strong growth potential [20] Company Strategy and Development Direction - The company is focused on preserving capital while driving sustainable growth and long-term value creation [14] - A formal process has been initiated to evaluate strategic alternatives for the THP segment, aiming to maximize shareholder value [12][13] - The company plans to reduce cash investment in the THP segment in the second half of 2025 to preserve capital [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial resources available to support key growth initiatives, including cash flow from the Surgical segment and available borrowing capacity [35] - The company does not anticipate a material impact from tariffs on operations in 2025 [35] - Management highlighted the importance of expanding clinical evidence for key products to educate the market on their benefits [8] Other Important Information - The company completed the acquisition of CarePix, which is integral to the THP technology platform [22] - The THP pilot program began with a provider group, aiming to validate and optimize the THP technology platform [23][24] - The company achieved two product development milestones under its exclusive license agreement with Biomimetic Innovations Limited [35] Q&A Session Summary Question: How long does it typically take for a new distributor to become productive? - The timeline varies based on market conditions and existing approvals, ranging from days to months [39][40] Question: What is the expected cadence of operating expenses moving into 2026? - The company anticipates THP segment investments between $5.5 million and $6.5 million for the second half of the year [41] Question: Can you provide details on the growth of specific products like CELERATE and BioSurg? - CELERATE and BioSurg are key growth drivers, with both products showing steady growth and significant market potential [48] Question: What are the main drivers for seeking strategic alternatives for THP? - The company is looking for strategic partners to complement its investments and expand the THP product line [52][53]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported system-wide sales of $257.6 million, a decrease of 1% year-over-year, with same-store sales growth of 30 basis points [6][26] - Adjusted EBITDA for the quarter was $21.6 million, reflecting a 4.7% increase from $20.6 million in the prior year period, with an adjusted EBITDA margin of 38.7% [28][29] - Total revenue decreased by approximately $4 million or 6.6% to $55.9 million, primarily due to lower contributions from wholesale product and retail revenue [26][28] Business Line Data and Key Metrics Changes - The company opened two growth centers during the quarter and closed five, resulting in three net center closures, with a total of 1,059 centers at the end of Q2, flat year-over-year [26][30] - The company has seen an improvement in transaction growth, with same-store sales up 1.7% in June and 1.5% through the first five weeks of Q3 [8][9] Market Data and Key Metrics Changes - The company noted challenges in the California market, while improvements were observed in Texas, Florida, and New York [62] - The Wax Pass sales increased by almost 2% year-over-year, indicating stable customer engagement [66] Company Strategy and Development Direction - The company is focused on three strategic objectives: driving sales through traffic growth, improving profitability for franchisees, and implementing a more sophisticated development approach [10][20] - The leadership team has been expanded with the addition of a Chief Operating Officer and a Chief Development Officer to enhance operational execution and franchise development [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business and the potential for long-term growth, despite being in a transitional year [7][39] - The company is narrowing its full-year revenue outlook to between $940 million and $950 million, with same-store sales expected to be flat to up 1% for the full year [33][36] Other Important Information - The company ended the quarter with $63.9 million in cash and $388 million outstanding under senior secured notes, with a net leverage ratio of 4.2 times [30] - The company plans to maintain advertising expenses slightly above 3% of system-wide sales to support ongoing traffic-driving initiatives [37] Q&A Session Summary Question: What changes have been made to the grand opening playbook? - The company has refined its grand opening playbook to ensure centers are set up for success, focusing on staffing and training, which has led to improved ramping of new units [44] Question: How should we think about closure pace going forward? - The company aims to minimize negative impacts from closures by building a strong foundation for sustainable traffic growth and improving overall network health [49] Question: Are there notable changes at the store level or in center execution? - The company is focusing on both marketing and operational tactics to drive frequency with existing guests, with a strong partnership with franchisees [53] Question: What is the outlook for regional performance? - The company is seeing challenges in California but improvements in Texas and Florida, with a focus on using data analytics to engage guests effectively [62] Question: How is the new product launch performing? - The company is pleased with the acceptance of new products and continues to prioritize transaction counts while maintaining a focus on retail [64] Question: What is the trajectory of Wax Pass sales? - Wax Pass sales have increased by almost 2% year-over-year, indicating continued customer engagement [66]

Financial Data and Key Metrics Changes - In Q2 2025, gross originations grew by 30.4% year over year to $72.1 million, exceeding the top end of the outlook range [6][29] - Revenue for Q2 2025 increased by 22.1% to $71.9 million, surpassing the expected growth of 17% to 20% [6][31] - Adjusted EBITDA was slightly above breakeven at over $300,000, compared to expectations of breakeven [6][34] Business Line Data and Key Metrics Changes - Total app originations grew by 56% to $43.1 million, with approximately 60% of gross originations starting in the app marketplace [9][29] - KPay originations accelerated to approximately 81% year over year, totaling $28.3 million [9][20] - Unique new customers increased by approximately 40%, contributing to a total customer base growth of about 32% [10][13] Market Data and Key Metrics Changes - Gross originations for the top 25 merchants grew by 28% in Q2, with a notable 65% growth when excluding the largest merchant, Wayfair [30][31] - Direct and waterfall merchants accounted for approximately 61% of total gross originations, with a growth of about 11% [22][23] - Excluding home furnishings and mattress categories, gross originations grew by 62% year over year [29][30] Company Strategy and Development Direction - The company aims to build a successful two-sided marketplace for lease-to-own consumers, focusing on consumer engagement, merchant engagement, referral partnerships, and improving unit economics [11][28] - The strategy includes enhancing the consumer journey and experience to drive engagement and conversion [15][19] - The company is actively working on partnerships to drive top-of-funnel traffic and referrals [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of customers despite macroeconomic factors and expects write-offs to remain within the targeted range of 8% to 10% [44][45] - The company is raising its 2025 outlook for gross originations to a growth range of 25% to 30% [41][42] - Management is closely monitoring macroeconomic headwinds and is prepared to adapt to changes in economic policies [27][41] Other Important Information - The company completed a refinancing agreement that increased liquidity and reduced interest rates on its revolving line of credit [38][39] - Cash used for operations in Q2 2025 was $3.2 million, compared to $1.4 million generated in Q2 2024 [40] Q&A Session Summary Question: What drove the year-over-year increase in lease merchandise charge-off rate? - Management noted fluctuations in quarterly results are not concerning as they remain within the targeted range [44][45] Question: What does the pipeline look like for new partners? - The pipeline is strong, with interest from various segments, including auto and home furnishings [47][48] Question: What strategies are being implemented to drive higher application activity? - The company has focused on digital marketing and customer referral strategies to attract new customers [52][54] Question: What is the competitive environment like regarding pricing and credit? - Management indicated stability in the competitive landscape and emphasized optimizing pricing for conversion and repeat rates [55][57]

Financial Data and Key Metrics Changes - In H1 2025, group revenues reached €371 million, a 5% decrease compared to 2024, primarily due to an 11% decline in DMPD revenues to €269 million, influenced by a temporary decline in BMS revenues [17][18] - Just Evotec Biologics (JEP) achieved €102.2 million in revenue, reflecting a 16% year-over-year growth, driven by strong demand from non-Sandoz and DoD customers [18][19] - Adjusted group EBITDA was negative €1.9 million, with a strong contribution of €7.5 million from JEP, offsetting lower operational leverage from the DMPD segment [19][20] Business Line Data and Key Metrics Changes - DMPD segment saw an 11% revenue decline, attributed to a temporary effect in the BMS collaboration and continued softness in the early drug discovery market [10][17] - JEP segment outperformed with a 16% revenue growth year-over-year, driven by expanding customer base and strong demand [13][19] - R&D spending decreased by 35% year-over-year, from €29.3 million in 2024 to €19 million in 2025, aligning with strategic focus [19] Market Data and Key Metrics Changes - The biotech funding landscape remains complex, with early-stage investments lagging behind later-stage funding, leading to cautious spending behavior in early-stage R&D [14][15] - Signs of a modest recovery in funding are emerging, with expectations for a more normalized distribution of funding and project flow in the coming quarters [15] Company Strategy and Development Direction - The company unveiled a new strategy in April 2025, focusing on pioneering drug discovery and development, operational excellence, and sustainable profitable growth [5][8] - The business model is evolving towards two core segments: discovery and preclinical development (DMPD) and Just Evotec Biologics (JEP), with an emphasis on reducing complexity and enhancing accountability [9][12] - The planned sale of the Toulouse site to Sandoz is part of the strategy to lean into JEP's capabilities as a scalable technology provider, marking a significant milestone in the asset-light model [13][35] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing market challenges but expressed confidence in the progress made and the transformation efforts underway [5][6] - The company anticipates improved visibility towards midterm goals following the Sandoz transaction, with a bold aspiration of 8% to 12% revenue CAGR and greater than 20% EBITDA margin by 2028 [40][41] - Management highlighted the importance of leveraging technology and scientific leadership to create new business opportunities and enhance value creation [27][30] Other Important Information - The company is navigating a cautious funding environment, particularly in early-stage biotech, while maintaining a strong pipeline and operational rigor [14][15][20] - The expansion of the molecular patient database is a key strategic initiative, enhancing capabilities in precision medicine and drug discovery [23][25] Q&A Session Summary Question: Guidance for 2025 and recovery in funding - Management does not expect a significant impact from VC funding recovery in the second half of 2025 [44][45] Question: Breakdown of R&D business revenues - Management indicated that the transactional part of the R&D business is shrinking relative to integrated and large partnerships, which are growing [46][47] Question: Value transfer from the Sandoz deal - Management emphasized the importance of technology capabilities and ongoing revenue streams from milestones and royalties, but did not provide specific numbers [48][49][53] Question: Trends in DMPD segment and customer spending - Management noted cautious spending behavior among biotech customers and mixed dynamics among pharma partners [56][60][62] Question: Pricing environment and competition - Management acknowledged increased price sensitivity in the transactional segment but emphasized the value provided in integrated partnerships [69][71] Question: Geographic market dynamics - Management observed different market behaviors, with stronger traction in East Asia compared to the US and Europe [73][74] Question: Mix of JEP business revenue sources - Management stated that current revenue from JEP is a package of drug production and licensing, with a focus on monetizing assets fully [75][78] Question: Rationale for the sale of the Toulouse site - Management reiterated that the sale aligns with the strategic direction and timing for the company [86] Question: Kidney disease projects and revenue proportion - Management highlighted ongoing investments in kidney disease research and partnerships with major pharma companies [90][91] Question: Customer base for JEP growth - Management confirmed that growth in JEP is derived from a mix of small and large pharma customers, primarily in earlier-stage development [94]

Financial Data and Key Metrics Changes - Total revenues for the second quarter were CNY 1,000,000, representing an 11.2% increase year on year from CNY 830,000,000 [11] - Net advertising revenues were CNY 153,300,000, slightly down from CNY 154,700,000 in the same period last year [11] - Paid services revenues surged to CNY 33,800,000, marking a 148.5% increase year on year from CNY 600,000 [11] - Cost of revenues decreased by 7.6% to CNY 95,100,000 from CNY 102,900,000 [12] - Total operating expenses increased by 33.5% year on year to CNY 74.3 million [12] - Loss from operations was CNY 7,200,000 compared to CNY 8,900,000 in the same period last year [12] - Net loss attributable to the company was CNY 10,400,000, up from CNY 5,400,000 in the same period last year [12] - Cash and cash equivalents totaled approximately CNY 982,300,000 or about USD 137.1 million [13] Business Line Data and Key Metrics Changes - The Phoenix news video account surpassed 5,000,000 followers, with annual views exceeding 2,000,000,000 and projected revenue growth approaching 50% [7] - The tech channels video account grew to over 3,000,000 followers, with commercial revenue tripling year on year [7] Market Data and Key Metrics Changes - The overall advertising market remained relatively flat for the first half of the year, affecting client spending [16] - Sectors such as entertainment, tourism, and retail performed well, while auto, alcohol, and real estate sectors showed a slowdown [17] Company Strategy and Development Direction - The company is focused on enhancing content depth and exploring diversified monetization opportunities [3] - It aims to strengthen its leadership in global Chinese language media through high-quality original content and innovative business initiatives [5] - The company is transitioning from a content creator to a resource integrator, as evidenced by hosting significant industry events [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the advertising market but emphasized stability in their ad business due to a deep understanding of client needs [17] - The company remains committed to leveraging its strengths in professional journalism and international perspectives to drive sustainable development [10] - The forecast for total revenues in 2025 is between CNY 203,400,000 and CNY 218,400,000, with net advertising revenues projected between CNY 168,400,000 and CNY 178,400,000 [13] Other Important Information - The company hosted the 2025 China Enterprise Global Expansion Summit, enhancing its industry influence [8] - Strategic agreements were signed at the AIM Global Summit to deepen connections with global enterprises [9] Q&A Session Summary Question: Impact of the flat advertising market on the company - Management noted that the overall ad market was not strong in the first half of the year, with many advertising clients remaining cautious [16] - Despite this, the company managed to keep its ad business relatively stable by understanding client needs and focusing on brand credibility [17]

Financial Data and Key Metrics Changes - The company's net profit after tax reached USD 566 million, with USD 340 million attributable to equity shareholders, marking an increase of over 600% compared to the same period last year [6][7] - EBITDA reached USD 1.54 billion, up 98% year on year, while net operating cash flow increased to USD 1.185 billion, up 130% year on year [7][16] - The gearing ratio dropped from 41% at the end of the previous year to 33%, the lowest level since the acquisition of Las Bambas [7][22] Business Line Data and Key Metrics Changes - Total copper production in the first half of the year reached approximately 260,000 tons, a significant increase of 64% year on year [8] - Total zinc production reached about 110,000 tons, achieving stable operations [8] - Copper revenue accounted for 78% of total revenue, driven by increased production and higher prices [8] Market Data and Key Metrics Changes - The company benefited from rising prices of key metals such as copper, gold, silver, and zinc, which contributed to its strong performance [6][7] - The EBITDA margin increased to 55%, ranking among the top globally for similar companies [17] Company Strategy and Development Direction - The company focuses on copper and other base metals critical to a low carbon future, with expectations of strong demand for metals like copper, zinc, and nickel [26][28] - The company aims to enhance operational value and maximize asset growth potential while exploring diversification opportunities across different regions and commodity sectors [29] - Total copper production is projected to reach up to 520,000 tons this year, with Las Bambas expected to contribute 400,000 tons [29] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining a strong safety culture and proactive safety measures [4][5] - The company is aware of potential risks related to road blockades at the Las Bambas mine, especially with the upcoming presidential election in Peru [41][42] - Management expressed confidence in the company's ability to maintain stable production and operational stability despite external challenges [45][46] Other Important Information - The company plans to adjust its capital expenditure estimation for 2025 to USD 1.1 billion to USD 1.25 billion, covering maintenance, development projects, and capitalized mining expenditures [23][24] - The acquisition of the Nickel Brazil asset is progressing and expected to be completed by the end of the year with an initial consideration of USD 350 million [24] Q&A Session Summary Question: What are the reasons behind the cost increase for the Las Bambas mine in the second half of the year? - Management stated that the full year cost guidance remains unchanged to allow for risk control, and if production volumes remain high, cash costs will continue to be low [34] Question: Have all inventory issues been cleared due to road blockades at Las Bambas mine? - Management confirmed that road blockages occurred for 15 days, but the issues have been resolved, and efforts are being made to clear inventory [36] Question: What is the outlook for finance costs in the second half of the year? - The finance cost for the first half was USD 139 million, a decrease from the previous year, and management aims to lower the finance cost to USD 320 million for the whole year [39] Question: What measures are in place to guard against potential disruptions due to the upcoming presidential election in Peru? - Management highlighted the importance of community relationship rebuilding strategies to maintain stable production and operational stability [43][45] Question: What is the long-term guidance for the gearing ratio? - Management indicated that the gearing ratio has decreased significantly, and they will continue to focus on optimizing the balance sheet and managing debt levels [42][46]

Financial Data and Key Metrics Changes - The company's net profit after tax reached USD 566 million, with USD 340 million attributable to equity shareholders, marking an increase of over 600% compared to the same period last year [7][8] - EBITDA reached USD 1.54 billion, up 98% year on year, while net operating cash flow increased to USD 1.185 billion, up 130% year on year [8][17] - The gearing ratio dropped from 41% at the end of the previous year to 33%, the lowest level since the acquisition of Las Bambas [8][24] Business Line Data and Key Metrics Changes - Total copper production in the first half of the year reached approximately 260,000 tons, a significant increase of 64% year on year, with copper revenue accounting for 78% of total revenue [9][18] - Las Bambas mine produced over 210,000 tons of copper, with cash costs reduced to nearly USD 1 per pound, positioning it near the top of the global copper cost curve [19] - Khoemakau mine achieved an EBITDA of USD 90 million, a year-on-year growth of 167%, while Kinsevere's EBITDA decreased by 27% to USD 30 million due to power supply instability [20][21] Market Data and Key Metrics Changes - The company benefited from rising prices of key metals such as copper, gold, silver, and zinc, which drove performance [7] - The demand for metals like copper, zinc, and nickel is expected to remain strong due to the global energy transition and urbanization trends [28][29] Company Strategy and Development Direction - The company focuses on enhancing operational value and maximizing asset growth potential while exploring diversification opportunities across different regions and commodity sectors [30] - Total copper production is projected to reach up to 520,000 tons this year, with Las Bambas expected to contribute 400,000 tons [30][31] - The company is committed to sustainable development, as demonstrated by community initiatives linked to the Las Bambas project [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential risks of road blockades at Las Bambas due to political instability in Peru, especially with upcoming presidential elections [39][44] - The company aims to maintain operational stability and has implemented measures to strengthen community relationships to mitigate risks [45][47] - The financial management strategy includes optimizing the balance sheet and enhancing shareholder returns, with a focus on maintaining a manageable debt level [50][66] Other Important Information - The company plans to adjust its capital expenditure estimation for 2025 to USD 1.1 billion to USD 1.25 billion, covering various investments [25][26] - The acquisition of the Nickel Brazil asset is progressing and is expected to be completed by the end of the year [26] Q&A Session Summary Question: Cost of Las Bambas mine - The C1 cost was USD 1.06 in the first half, with full-year guidance unchanged to allow for risk control [34][35] Question: Road blockade at Las Bambas mine - There were 15 days of road blockage, but the situation has improved, and inventory clearance is ongoing [36][39] Question: Finance cost outlook - The finance cost decreased to USD 139 million, with expectations to lower it to USD 320 million for the year [41] Question: Impact of upcoming presidential election on Las Bambas - Previous elections caused disruptions, but measures have been taken to maintain stable operations [44][46] Question: Long-term guidance of gearing ratio - The company aims to continue reducing the gearing ratio, focusing on debt repayment and shareholder returns [44][50] Question: Profit sharing mechanism - The mining industry is required to share 8% of profits, which is included in the C1 cost [52][53] Question: Kinsevere mine power supply - A new 12-megawatt diesel generator is being procured to stabilize power supply, expected to cover 40% to 45% of capacity during disruptions [56][57] Question: CapEx increase - CapEx for the second half is expected to catch up due to previous delays, with a focus on supporting development [62][63]