Good afternoon, ladies and gentlemen. I'm Terence from China Comservice.

On behalf of the management, I would like to welcome you to our company's 2026 interim results presentation. The presentation will be conducted in Chinese with simultaneous interpretation, and I will host the Q&A session later.

Please put your phone on vibration mode or turn it off during the meeting. Please allow me to introduce the management present here today: Mr.

Luan Xiaowei, Executive Director and Chairman; Mr. Shen Aqiang, Executive Director, Executive Vice President, and CFO; Mr.

Zhang Hao, Executive Vice President; Mr. Gui Xiaoqing, Executive Vice President.

Due to other important duties, Mr. Cui Zhanwei, President of the company, is unable to attend the present in person in Hong Kong.

We hereby apologize to everyone. Now, I would like to give the floor to our Chairman, Mr.

Luan Xiaowei, to present to you the 2026 interim results overview.

Good morning, er good afternoon, ladies and gentlemen. The results presentation is divided into three parts.

First, I will introduce the overall of our results. In the first half of 2026, innovation in AI technology has entered an unprecedented active phase.

The company focused on deepening its presence and strategic deployment in high-value business and continued to advance modernization of our governance systems and capabilities. We have shown the following features: First, taking active initiative and adapting to changes, maintaining overall stabilities in fundamentals.

Secondly, continuously strengthened quality and efficiency improvement, providing strong support for profitability. Third, forward-looking deployment, delivering initial results of which growth engines driving transformation.

Fourth, AI-driven dividend materializing, with computing infrastructure business achieving robust growth. Fifth, is the strategic positioning of one positioning, four roles, helping us to seize important opportunities in new markets.

First, about our financial performance. We were faced with a complex and challenging external environment.

We focused on strengthening our operation, made a forward strategic deployment, and we have maintained a very stable fundamentals. Revenue amounted to 74.5 billion RMB.

AI dividend gradually become the primary driver of deployment. AIDC revenue grew by 63% year-on-year, accounting for nearly 10% of our revenue.

By market breakdown, revenue from domestic operator market stabilized and rebounded, grew up by 1.9% year-on-year. For domestic non-operating market, we have actively controlled the low-quality and high-risk projects, and we've been focusing on high-value businesses for sustainable development.

Overseas market maintained compliant, effective development, achieving 7.4 year-on-year growth. We have continued to drive quality and efficiency improvement.

For the first half of the year, the net profit amounted to 1.97 billion RMB. We have controlled the key SG&A expenses, achieving steady growth in operating profit.

We have followed closely the external environment and upgrades in customer demand, and we have demonstrated results in transformation and development. We have focused the new tracks of six major growth areas to build the new growth drivers for high-quality development.

In the first half of this year, our total new contracts amounted to 100.4 billion RMB, of which new contracts from the six major growth areas business reached 34.4 billion RMB, representing 11% year-on-year growth. The proportion of new contracts of six major growth area business accounted for 34% of our total new contracts, increase from 29% in the same period last year.

Significant growth was achieved across key areas, including AIDC, AI applications, CCS smart maintenance, and low-altitude economy. The new economy momentum has been released.

We have seized the market opportunities brought by the blooming development of AI. In the first half of the year, new contracts in the AI+ sector amounted to 12.3 billion RMB, representing a year-on-year increase of 39%, with revenue reaching 7.4 billion RMB, up by 62%, accounting for 10% of our company's revenue.

Among which, the company accelerated the large-scale delivery of AIDC, with new contracts in the AIDC business growing by 33% year-on-year. We have focused on our advantageous vertical industrial scenarios to develop standardized products, with new contracts in AI applications growing by 109% year-on-year.

The company adhered to technological innovation as a key driver. We have deployed AI+ innovation capabilities to build a new digital intelligence foundation for the company.

In terms of AIDC capability, we have strengthened our integrated planning, construction, maintenance, and operation service capabilities. We have standard leadership, delivery excellence, and integrated construction maintenance approach, with which we have leveraged our leading EPCO integrated services capabilities to our customers with full lifecycle professional services.

In terms of AI products and service offerings, we have focused on central state-owned companies and vertical industries, and we have responded to the AI initiative of 19 centrally owned enterprises, and we have achieved the replication of solutions across more than 10 industries, including transportation and energy. We have cover full-chain AI data services, and through the development of city-level trusted cloud platforms and regional data hubs, progressively transform data assets into a new engine for sustainable growth.

In terms of AI talent development, we have set up our end-to-end training systems, including training bases, full-stack circular curricula, and certification systems. We have strengthened our ability to attract talents and retain talents.

We focus on building core capabilities that contribute to sustainable development. We have driven the integration of technological innovation and industrial innovation in smart services sector, promoting the development of new quality productive forces driven by techno- technological innovation in the intelligent infrastructure sector.

We focus on core technologies, strengthen market synergy, and build an open system and innovate incentive mechanism. We drove continuous breakthroughs and value creation in our technological innovation.

We strengthened the transformation and accumulation of our innovative capabilities. We have established a three-tier new paradigm of scientific research AI transformation, with national-level key initiatives and core technology breakthroughs plus localized innovation.

We have five innovation bases in low-altitude economy, dual carbon, data elements, cybersecurity, and quantum. For our R&D investment in the first half of year, it amounted to 2 billion RMB, and investment in AI and smart applications accounted for more than 45%.

Our government-allocated funding secured by the company has doubled the total amount for the compared to the whole year of 2025, and we have breakthroughs in major national-level projects for the first time. We have accelerated our deepening of reforms and corporate governance capabilities.

First, we strengthen the advantageous business segments, such as telecommunication infrastructure, driving the capability leap of EPC general contracting towards full-cycle EPCO. Second, we deepen reforms in specialized segments, such as supply chain management, achieving the extension of value-added maintenance and operation services.

Third, we comprehensively deepen our synergetic operations, increasing the centralization of resources in key areas such as procurement, finance, and funding, and audit, as well as legal affairs. Fourth, we have strengthened risk preventions in key areas and enhance management of people, finance, and resources.

Fifth, we enhance governance efficiency through AI empowerment, promoting the deployment of AI-powered digital employees, focusing on high-frequency and high-value scenarios to provide digital impetus for the modernization of our governance systems and capabilities. This year marks the 20th anniversary of our company's listing.

Since going public, we have advanced innovation and transformation with reform-driven development, and we have explored new sectors, new markets, and we have achieved high-quality sustainable growth. At present, the advancement of AI and green transitions has brought upon us vast opportunities.

China is actively advancing the construction of six networks, creating significant market opportunities for new infrastructure in informatization construction. This aligns with our company's full-chain service capabilities.

We will further strengthen our competitiveness and empower the digital intelligence transformation of the society, industries, and the customers. We will continue to deepen the connotation of one positioning and four roles, and accelerate our development into a service provider to AI service providers.

We will strengthen our new quality productive forces, build new relationships of production tailored to new quality productive forces, and drive our company towards new opportunities and excellence. We attach great importance to our shareholders' return.

In the past 10 years, our dividend payout ratios had remained quite stable with enhancement. To enhance the predictability of dividend, we have made the dividend return plan for the next three years.

Dividend payout ratio for 2026 to 2028 will increase from 43% in 2025. By 2028, we expect the dividend payout to be no less than 46%, creating long-term value for shareholders.

This is the first part of our presentation. Now, I will invite Mr.

Shen Aqiang to present the rest of the presentation.

Thank you, Chairman. I will present to you two parts of our presentation.

First is the performance in the first half of 2026. Here, you can see the business revenue breakdown and the overall performance of our market, which has showed the overall performance of our three business segments and three markets.

From the business and market structures, you can see that our revenue has become more diversified, and we have a showcase of resilience in our business. Now I would like to talk about the key developments in our three major markets.

First, about the domestic operator market. We focused on the customers' demand in the new type of digital information infrastructure to respond to the impact of the decline in traditional business.

In the second half of year, revenue from domestic operating market stabilized and rebounded, reaching 38.9 billion RMB, representing 1.9% of year-on-year growth. We will seize the opportunities from operators' demand and investment into new computing infrastructure and will cultivate business opportunities in traditional areas, such as energy-saving retrofit of existing data centers and operations as well as maintenance.

We support operators in serving and integrating into new communication network and national integrated computing power network construction. For the domestic non-operator market, we have been impacted by the phased impact of some customers' investment pace.

We have focused our resources on the new areas. In the first half of the year, revenue from domestic non-operator reached 33.2 billion RMB.

We will keep track of the trillion RMB market potential brought upon by the six networks and urban renewal, as well as the accelerated growth in emergent sectors, such as AI+, computing, electricity coordination, and CCS smart maintenance. Our aim is to strive to achieve a steady growth in domestic non-operator market.

For the overseas market, we have responded actively to the Belt and Road Initiative. We focus on Asia-Pacific and communication fundamental businesses and infrastructure businesses.

We have secured several key projects in AIDC. In the first half of the year, revenue from the overseas market reached 2.3 billion RMB, representing 7.4% year-on-year.

Asia-Pacific grew by nearly 40%, being the primary driver of our overseas business. We will enhance our project development and operation capabilities, and we'll focus on the transformation and upgrading of AIDC, new energy, and other areas, and we will actively support central state-owned companies in their compute power expansion overseas, accelerated replication of domestic capabilities, and empower digitalization of our overseas business.

In the Chairman's introduction in the first part, he mentioned about our focus on six major growth areas, I would like to elaborate on that. In AIDC, we supported and serve the national-level intelligent computing hub and the construction of nationwide integrated computing power network.

Our footprint has covered eight national computing hubs, and we have built a full-stack service model featuring EPCO general contracting plus green liquid cooling plus intelligent computing power maintenance plus computing electricity coordination to provide customers with comprehensive infrastructure service support. The value of the new contracts signed in this sector amounted to 10.9 billion RMB, representing 33% of growth.

Here, you can see a benchmark case in AIDC, and we have completed the delivery of 60 megawatt civil and M&E works for Ningxia Zhongwei data center project in just 167 days. We have spent on only like half of the days compared to traditional schedules.

This project also adopted Alibaba 5.0 liquid cooling standard, with construction standard reaching the highest level in the industry. In CCS maintenance smart maintenance sector, we have focused on 6T technologies, and we're focused on landmark buildings in central cities, chained operators, IDC operation and maintenance, as well as data governance.

We have built standards and replicable capabilities systems. In the first half of year, new contracts from this sector recorded 15.6 billion RMB, 13% growth year-on-year.

Here, you can see another example in CCS smart maintenance, and we have focused on the smart maintenance capabilities in AIDC and our capabilities towards full-stack smart maintenance for liquid-cooled intelligent computing. In terms of compute-electricity collaboration, we focus on source, grid, load, storage, and coordinated dispatch of power.

We have integrated service of compute-electricity collaboration and full-chain general contracting, and we have several key projects in dual carbon and power distribution networks. Here, you can see the benchmark cases in the dual-carbon and power distribution network sectors, and they represent our benchmark projects in energy storage, zero-carbon buildings, compute-electricity coordination, and our green electricity plus compute power green electricity direct connection models.

In low-altitude economic sector, we have been partnering with key customers in transformation transportation, government, energy management, and other sectors, and we have played a leading role in consulting these businesses with consulting and design, equipment procurement, plus implementation delivery. In the first half of year, value of new contract grew by 66%.

For the second half of the year, we have five levers, including transformation and development, reform and renewal, technological innovation, and talent strengthening, and safety enhancement. We have the confidence to maintain stabilities for our whole year revenue and new signing new-signed contract.

We are confident to achieve a rapid growth in the six growth six major growth areas in AIDC, and in terms of quality improvement, we can expect growth for net profit and revenue and stable growth for gross profit margin as well as improve cash flow. Here, you can see our financial performance in the first half of year, and here, you can see the key financial indicators of the company.

We have continued to deepen our quality and enhancement to drive improvement in our profitability. For the subcontracting charges and material costs, we have utilized AI to strengthen our penetrated mode project management.

We've enhanced our self-delivery rate and cost saving rates from centralized procurement. In terms of R&D expenses, we have focused on areas such as AI digital infrastructures, and the synergetic management of R&D, and ensure R&D delivering results.

In SG&A, we have controlled it quite tightly, and we have seen a decline of SG&A. In terms of direct personal costs, we have optimized our resources allocation and enhanced our operational efficiency, and the per capita wages have been quite stable.

In terms of the expenses management, we have effective control of SG&A expenses, our operating profit margin have improved steadily. We will place greater emphasis on quality development, and project quality as well as cash collection, so that our gross profit margin can recover over the medium to long term.

In the first half of year, we have seen the impact on our net profit from the external environment. After excluding the non-comparable factors of dividend income, the change in net profit on a comparable basis is in line with the trend in revenue growth, and net profit margin remain quite stable.

We continue to drive quality and efficiency enhancement, and we will achieve a stabilization and recovery in full-year net profit. We'll continue to manage our working capital and focus on the account receivables and cash flow.

We will continue to adhere to the philosophy of revenue with reasonable profit, a profit with matched cash flow, and enhance our management of project delivery, accounts receivable, cash collection, and payment. Here, you can see the company's balance sheet.

Our gearing ratio is very stable at a very low level. Our financial position is solid.

Going forward, we will adhere to the principle of value-driven, seeking steady yet progressive growth and high-quality development, coordinate high-quality development with high-level security, and strive to achieve effective improvement in quality and reasonable growth in quantity to create greater values for our shareholders. Now we are very pleased to answer any questions you may have.

Thank you.