...strategies of the financial as well as subsidiaries. At the end we will have Q&A section.

Analysts and our friends are welcome to present your questions. Slido can be also used.

After the meeting we will be able to keep in touch with you to talk to you in depth detail. I'll pass the floor to Jenny.

Ladies and gentlemen, good morning. I will present the financial results for KGI Financial in 2025.

KGI Financial's revenue amounted to $30.1 billion NT dollars with an EPS $1.54. Factoring in the $5.9 billion NT dollars to the FX valuation reserves and one-off calendar effect, the profit would hit a record high in 2025.

In addition to a robust life subsidiary, securities and bank together generated $18.3 billion, growing by 16% year-on-year, and laying a solid foundation for our dividend payouts. Turning to net worth, due to rally in asset prices in the OCI, the number reached $32.7 billion NT dollars, and it's $20.2 billion higher from the end of 2024.

The book value per share for common share was $18.35. Allow me to present the results for the first two months of 2026 before I present the results for subsidiaries.

For the first two months of this year, KGI Financial's profit amounted to $9.7 billion NT dollars. With factoring in the proceeds from disposing equity in OCI, the number would hit $19.6 billion NT dollars, growing significantly year-on-year, and both numbers hit record highs.

Notably, the proceeds did not go into the current P&L, but it will be directly reflected in the retained earnings, which are available for distribution. For the financial stability, as you can see here, the double leverage ratio has reduced to 118%, and subsidiaries have maintained robust capital adequacy ratios.

Now we will now present the results of the subsidiaries. KGI Life, in 2025, the net income amounted to $15.8 billion, as I have mentioned.

Factoring in the appreciation to the FX valuation reserves, the number would exceed to $20 billion NT dollars. Next page.

For premium income, business momentum rallied in 2025. FYP grew by 33% year-on-year.

Product strategy will focus on protection, USD-denominated policies, and ILP to drive CSM and reduce currency mismatch. For sales channels, we will continue to develop different channels.

As you can see here, we see increase across different channels. As you can see here, the brokerage channel increased by 100%.

Therefore, its contribution to FYP reached 12%. Regular pay products still see some growth.

However, due to the deshelving of the health products creating a higher-- which created higher base, the growth of this product was not comparable to single paid and ILP. Therefore, the percentage of this product has lowered.

In 2025, the VNB amounted to $18 billion NT dollars, and the overall policy VNB margin was 23%, slightly lower than last-- last year, mainly due to the deshelving of certain products in 2024. For COL, it's 3.12%, and investment yield was 3.21%.

Factoring the one-off appropriation to the FX valuation reserves, the full-year investment yield would hit 3.47%, which was slightly lower year-on-year due to increased hedging cost. As you may know, in 2025, we have seen some special circumstances in of FX, and we will expound that in detail.

For portfolio, as you can see from this slide, domestic equity increased to 9.2%. In addition to increased market share, we also made-- built good portfolio.

The percentage of domestic equity, but we underweight overseas bonds officially because we remit the foreign currency of TWD policies back to optimize the ALM. The recurring yield before hedge was 3.6%, slightly lower year-on-year, mainly due to the appreciation of TWD that resulted in reduction in interest denominated in NTD and because of a larger denominator created by increased equity prices.

The full-year hedging cost stood at 2.56% due to the strengthening of TWD and the resulting FX loss in the first half. In spite of the depreciation in the later half of last year, FX gain had to go to the FX reserves instead of P&L.

The hedge ratio was 65% by the end of 2025. Notably, KGI will continue to contribute to FX valuation reserves.

The balance reached $43.3 billion by the end of 2025. In addition, the amortization of AC bonds will lead-- lead to a more stable hedging cost.

Strategically, the reserves will buffer FX volatilities, and we will gradually adjust our hedging ratio to reduce hedging costs, and we will continue to contribute to the reserves to increase management flexibility. Next page, please.

For KGI Bank, net income stood at $6.8 billion NT dollars, hitting a record high with a year-on-year growth of 22%. Since the opening in July 2025, the HK branch had over 350 clients.

You can see that the efforts put in by the bank management team. Next page.

In 2025, the net revenues amounted to $17.8 billion, growing by 11% year-on-year. Net income grew by 12%.

Wealth management had the best performance, growing by 24% year-on-year, has grown by more than 20% for more than three years in a row. Fee income from fund and insurance grew by more than 30% year-on-year.

For spread, spread was slightly lower year-on-year, mainly due to continued momentum of corporate loans and mortgage. NIM increased to 1.37%, up by 7 bps year-on-year, mainly due to the improvement in active spread of bonds.

Additionally, the proportion of loan increased from 58% to 61% in mix, resulting in NTD spread higher than other financial assets. Therefore, the NIM increased gradually.

The quality of asset has remained robust. NPL in 2025 was 0.18%, and that was 2 bps lower than that of 2024.

Excluding a single case, NPL would decrease to 0.11%. Loan has continued to grow.

Consumer and corporate loans both saw double-digit growth. For deposits, demand deposits grew by 11%, and the number of the new customer accounts increased to 120,000.

Thanks to ONE KGI strategy, the balance of settle-- security settlement accounts by 25%, reducing our cost further. Next please, please.

KGI Securities in 2025 generated $11.5 billion, growing 14% year-on-year, and the ROE was 17.2%, beating the industry average. From the upper left-hand side, you can see in 2025, the brokerage commissions contributed to $13.7 billion of net revenues, accounting for around 50% to 70% of the net revenues in recent years.

This has offered a stable source of income. KGI Securities account for 11.2% of the market share.

With the booming markets, some-- the transaction volume may approach NT$1 trillion. This will drive KGI's profitability.

Thanks to the efforts in recent years, our customers now can enjoy full range of wealth management services. In 2025, wealth management business generated $3.5 billion, and this number almost tripled compare-- with the number three years ago.

As you can see from your right-hand side, KGI Securities lead the market in brokerage and and underwriting. Notably, the 11.2% market share among us, KGI Securities leads the market in terms of foreign investments.

Next page. In 2025, CDIB generated a profit of NT$500 million, mainly due to mark-to-market.

However, the management fee increased to $1 billion NT dollars, hitting a record high. For ONE KGI efforts, KGI Securities developed a USD product exclusively for Wealth Management 2.0.

Partner with CDIB Private Equity Partners, the fundraising was completed in 2025, and the fund size was $8.9 million US dollars. For asset management, CDIB for two consecutive years achieved-- raised more than NT$110 billion, and it has launched new funds focusing on healthcare and AI industries to maintain the momentum for fundraising.

AUM reached $61.8 billion by the end of 2025. Factoring in principal investments, the AUM reached $100 billion.

Next page. As you can see from this slide, the private credit business of-- offers stable yield and returns.

Next page. KGI SITE, AUM reached $310 billion by the end of 2025, excluding $80 billion contributed by the 009816 ETF, and the fund size reached $80 billion now.

For ETF business, to cater to the needs of investors, KGI SITE in 2025 launched two balanced ETFs, winning recognitions. The 009816 has gained-- been gaining popularity, and the size increased from $9 billion to $80 billion by the end of March.

The number of beneficiaries of KGI SITE ETF increased from 600,000 by the end of February to 900,000 by the end of March. This is a significant growth.

This is my presentation for the 2025 financial results. I will pass the floor to the Chief Actuary, Rochelle.

Investors, friends from media, good afternoon. Next, I will talk about our transition to IFRS 17.

Please go to page 25. This is the changes in equity.

By the end of 2025, our original figure was $200.8 billion. Because liability is measured at fair value, and our high-rate policy accounts for the lowest percentage among peers, therefore there is a positive impact of $44.1 billion on equity.

For asset, because of the changes, some bond adopting AC method are redesignated to FVOCI. Although there is a negative impact of $30.6 billion, but it helps the matching of asset and liability and reduce net worth volatility.

In sum, transitioning to IFRS 17, the figure is positive to $13.5 billion, and our net worth ratio has increased from 8.4% to 9.1%. Due to our product strategy and product mix changes, now our opening CSM is $235 billion.

If we consider CSM, our equity is $402.4 billion, which has doubled compared to the past, and the ratio has reached 17.2%. In addition, we have obtained approval from the regulator using 140% as the solvency target, maintaining the capital's robustness of life insurance and financial holding company.

Next slide. I will talk about the changes of asset and liability after the transition.

It is due to the reclassification and also policy loan turn into insurance contract liability. Due to the fact that contract liability is measured at fair value, and CSM is now a liability, the CSM has reached $235 billion, representing 10% of liability, and this will be gradually released into P&L in the future.

Next slide. Page 27, we talk about the financial asset redesignation to match asset and liability.

Our AC position has lowered from 74% to 56%. To lower the P&L volatility, most equity asset is now put into FVOCI.

Next slide. Page 28, this is the overall impact under IFRS 17.

There are three main parts: insurance service results, the CSM is $235 billion, it will be released into P&L gradually in the future and the main source of income; second, financial results is investment income minus liability cost, and the COL is around 2.2% to 2.3%; AC loss can be amortized and recognized, and it can reduce the impact of FX fluctuation on P&L. However, valuation changes in FVTPL will still cause P&L fluctuation.

Number three, indirect cost: provision for mortality, interest spread offset reserve, and also ILP fee income of non-IFRS items. Echoing what Jenny said, originally the disposal of gain/loss of FVOCI stock now will be classified as distributable earnings.

If we add this back, this can reflect the actual operation results of a company. This is the part regarding the transition to IFRS 17.

Now I would like to pass the floor to Paul, President of KGI Financial Holdings.

Investors, good afternoon. I will now talk about financial holding and our subsidiaries' achievements in 2025 and also ongoing strategies moving to 2026.

From financial holding's perspective, we have three main pillars. First, optimize financial structure; second, maintain a prudent dividend policy.

In addition to prudence, and also predictable, this is also an important indicator. Number three, deepen ONE KGI platform to drive the group's business growth.

In terms of financial structure optimization, as outlined by the CFO earlier, we have talked about concrete results in profit growth, capital management, and risk control. For the dividend part, I will leave it to the last.

Because a lot of attention are paid to this part, I will save that to the last. Number three is ONE KGI strategy.

When we talk about ONE KGI, we go beyond cross-subsidiary collaboration. We further invest in fundamental capabilities that can amplify synergies over the long run.

I'll give you some examples. First, we will establish an incentive framework across subsidiaries to align organization behavior with the group objective.

Sounds easy, but if you look at the details, there are a lot of KPI designs, redesign processes, it's very detailed, and I want to thank our team over the past two years on their efforts regarding this house cleaning foundation for future growth. System integration and upgrading platforms using AI and digital tools to deliver unified experience for both our customers and employees.

This is also easier said than done. We need to invest in them constantly, and we have done a lot over the past year and will continue to do so moving forward.

Last but not least, innovation and integration, we also need to proceed them under rigorous compliance and risk management. We need to be compliant and meet the standards required by the regulator.

In 2025, we have seen some initial results, and I would like to share some with you today. In 2025, our retail banking has added 110,000 new deposit accounts.

Over 30% were referred to by KGI Securities, indicating that cross-subsidiary collaboration has become a key customer acquisition driver. Our deposit balance has grew 25% YoY, overall retail deposit up 15%, and CASA ratio rose to 56%.

I think this is the level as first-tier banks, and this has improved fund mix and interest spread. In less than one year since its launch, through the cooperation of KGIS Hong Kong, KGIB Hong Kong branch has surpassed $15 billion in deposits, validating the replicability of ONE KGI in overseas market.

It's not just about securities and banking. In the Q4 last year, KGI Life partnered with KGI SITE to launch KGI Taiwan discretionary accounts.

By March-end this year, the AUM has reached $5.3 billion, achieving 265% of the original targets. Expanding the diversity of ILP solutions demonstrates the power of cross-subsidiary collaboration.

Moving on to KGI Life, following the adoption of IFRS 17, Life has entered a new phase centered on value management. We have built up a sizable CSM of $235 billion, underpinning more stable and predictable earnings.

On product strategy, we focus on foreign currency, protection-type, and ILP products, while strengthening capital management and ALM to ensure resilience across varying market environments. In response to the Taiwanese insurance market, which is very different from the past, it has evolved over time.

To be frank, the penetration rate of insurance is very high. Every person has around 4 to 5 policies.

Policy itself is not just insurance, it's also an investment tool. After the launch of ETFs, consumers have more options.

Investment, it's not just term deposit or buying insurance policy. There are a lot of active, passive ETFs.

There are a lot of options for customers. As an insurer, in addition to providing insurance services, how can we increase our added value?

In response to aging population and low birth rate, KGI Life's mission is more than an insurance provider. Through cross-industry partnership, we are extending into health, medical, long-term care, retirement, high-net-worth service scenarios to deliver a tangible uplift for policyholders.

At the same time, KGI Life is one of our priority units for AI deployment and digital transformation, enhancing efficiency and customer experience from sales channels to after-sales services. Insurers is now all-encompassing to solve pain points of customers.

A lot of people are wealthy enough to pay more than what NHI covered. Good medical resources sometimes cannot be bought with money.

How can we align these resources to provide a differentiated services? I think this is very important.

Next, moving on to the bank. Although the bank's size is relatively small within the group, to overcome the shortcoming of insufficient locations, driven by ONE KGI, we are advancing integrated banking security operation.

This year, we will add eight more locations. In 2025, it has successfully supported 35% growth in new customers, 25% growth in deposit balance.

In addition, in wealth management, we continue to deliver outstanding results. In 2025, we have obtained approvals from Wealth Management 2.0 and Asian Asset Management Center licenses, launched Lombard lending and premium financing, further expanding the breadth and depth of our service offering.

Although the bank is relatively small, we strive to match the standards of leading banks in Taiwan in terms of product and services. However, if we can also use that to our advantage, we can initiate cross-industry collaboration.

For example, with digital ecosystem to broaden customer acquisition touchpoints. For example, Atlet, we have launched the co-branded credit card and successfully penetrated their high-tier membership base with a high proportion of new customers.

In addition, we have partnered with several compliant exchanges, crypto exchanges. We are part of the first wave of the pilot program for virtual asset custodian services.

I believe we have three in total. Although our scale is not as big, but we have our ways to cooperate with different industries to overcome the difficulties of insufficient service location.

Over the past year, we have seen a lot of results. Since the launch of the Hong Kong branch, just like what Jenny said previously, we leverage our KGIS foundation over the past 20 years.

When we launched the bank branch, our deposit has went above our expectation. For KGIS, we are the second-largest security house in Taiwan.

Driven by active capital market, we have continued to deliver strong profit performance over the long term. Securities serve as a key platform that seamlessly connect capital market with wealth management services.

For corporate and wealth management, we focus on client segmentation, we upgrade our platform and tools to grow market share and enhance customer stickiness. For platform enhancement, we introduce tools such as AI assistants, quantitative solutions, strategy-based stock selection, so that customers with different profiles can trade and invest with a better overall experience.

For regional expansion, we are linking platforms in Hong Kong and Singapore to broaden our international wealth management business. We continue to diversify revenue sources for the security.

We also are closely tracking emerging opportunities, such as STO and RWA, these new business. We continue to pay attention to them.

We view them as new mid-to-long-term growth engines. For KGI SITE, Jenny has also covered it.

What I want to say is the core strategy over the past years, it has used ETF as a gateway for engaging customers. We don't stop here.

We build long-term trust in asset management and build long-term relationship with our customers. Because SITE customers, they have plans for long-term financial planning, they serve as a important portal, entry way, to the group's client service ecosystem.

Through different events, we have built a long-term community. Like I said, it's an important portal to the group's client service ecosystem.

On the product front, KGI SITE has launched multiple ETFs, active mutual funds, retirement investment solutions. They have different philosophies for clients across different life stages.

They are also a service provider in this regard. Under this foundation, starting from this year, we will build our own content platform, generate a lot of related content, we are not just a fund house, we are also a company that has direct relation with our customers.

I think this is what make us different from our peers in Taiwan. Last but not least, CDIB.

CDIB plays a pivotal role in the group as a key platform for alternative investment. It is the oldest member within the group.

The role that it play is not just for financial holding. It also plays an important role for Taiwan's industry upgrade.

We will continue to focus on industrial upgrade, global supply chain reconfiguration, AI deployment, and energy transition. This is our tradition, and we will continue to do so, just like what Jenny said.

Originally, we invest our own money, our principal investments, but after 2008, through the leadership of management, two-thirds of funds are external funds. We are now an asset manager.

Moving forward, CDIB will play another role. We will focus on high-net-worth and family office clients and provide products that is suitable to these high-net-worth customers like private equities.

A lot of banks want to do private banking, but most banks, I can say that fairly, private banking offering can see it in branches. They didn't offer what private banking really means.

CDIB has its know-how and network. We will look at some overseas products, repackage them, and to tailor them that meets Taiwan investors' needs.

For example, private equity, private credit, venture capital in technology and biomedicine. The tenor is around 5 to 10 years, and sometimes it can be renewed.

These are deterrents for Taiwan high-net-worth investors. Last year, we had a new product, and we have raised over $90 million.

It's also a principal-guaranteed investment because the tenor that Taiwan investor can accept is around six, we optimize overseas product and turn it into something that's favorable to Taiwanese investors. I think this illustrates that we are working towards moving forward.

We are curating these products, and that differentiates ourselves with our peers. This is what I want to share with you.

Moving from principal investments to asset manager, our recurring income has continued to grow and exceeding $1 billion last year. Next year, I think all the expenses can be covered by fixed recurring income, and it can be also upstream to the financial holding.

We do not pursue growth in silos. All subsidiaries work hard to develop their own business.

Each has its own highlights. For financial holding, we work hard to work as one company, so that we are not just a financial holding company.

We are an actual financial service provider. This is our vision.

I think I'll stop here. Do you have any questions?

If not, if the first question is related to dividend, and I think I can answer it directly. Over the past few years, investors who made investment in financial holding companies are very special because they expect cash dividends from the financial holding companies, and that's not distributable.

When I look at PB, PE of KGI Financial Holding, these numbers are not very high, and we are requested for paying higher dividend yield. I think that's my fault and the one to blame because if we do not communicate our dividend policy clearly, naturally investors will have a higher expectation because high risk, high return.

To solve this issue, we need to build a transparent communication channel to clearly communicate our dividend payout policies. Over the past few months, if you read our press releases, you will see that we have been explaining the sources for our dividend payouts.

We hope, by doing so, we will be able to provide a easier way to predict our dividend payouts. I will see something old again, but that is something new, of course.

For the dividends coming from subsidiaries, for example, securities and bank, they are fee-based company. If we follow business as usual, 70% of their profits can go to the financial holding for dividend payouts.

For KGIL, due to the IFRS 17 transition over the past few years, the environment does not have a very clear policy because everything has to be settled and balanced. I believe that after the transition to ICS and IFRS 17, we will have a clearer picture, a more predictable rule.

Every insurance company have to maintain their liquidity and RBC to make contributions to their parent company. The companies and the government are still discussing, and I hope next year KGIL will be able to provide a more clear range of number.

I do not know the rule for now, it's not that I don't want to talk to you or I don't want to tell you, just because I don't know. We are still discussing about the matter.

If we know the rule next year, then you will be able to know the percentage contributed by KGIL for dividend payout. After the transition this year, the realized capital gain in the OCI will not be reflected in the net income in KGIL, I ask the finance department to announce the net income of subsidiaries and the part affecting dividend payout of KGIL.

This is how we are trying to provide a more transparent information for you to understand and predict our dividend payout. This is our attitude toward our dividend payout policy.

For cash dividends, last year, we issued stock dividends that was the first time in a very long time, right? In the future, we will be leaning towards cash dividends.

When do we issue a stock dividend? We will issue stock dividends because our double leverage ratio was 112% last year, and the number is 118%, and the number is stable by comparison, I can tell you that we will not consider issuing stock dividends because people prefer cash dividends to stock dividends.

Still, we need to propose this to the board, and I propose to the board that we issue 100% cash dividends. Secondly, based on our performance, we will recommend to our board that we issue more cash dividends than the total dividends of last year.

This year, it's 100% cash, and it's not lower than $0.90 last year. This is something that I can present you.

Do you have any other questions?

Jimmy from JPMorgan. I have a few questions.

For banks, what's your full-year prospects for your operation, for example, the fee income growth and credit cost, as well as relevant trends? For KGIL, would you please share with us some information about transition?

You mentioned the CSM is around NT$235 billion. What's the amortization rates for this?

Do you have the number for ROE? Page 28, the operation expense under IFRS 17, how do we come up with a more recurring or mutual number?

The book value accretion owing to the transition will incur a higher impact on the KGIL compared with the financial holding. Why is that?

Will that affect RTA, because we know there's part of TBA for amortization on the financial holding side? Will that affect amortization?

Other companies also provided their sensitivity on interest, forex. Why do we need to have a higher TIS, because the benefit is not high if we exceeded TIS, would have a higher TIS?

For KGIL, what's your preliminary CSM last year? If we divide and multiply the FRP, what's the number?

Judging from the product mix this year, do we see any changes to the ratio? For dividend guidance, if we combine the profit from securities and bank and times it by 70%, it's around NT$0.75.

If we want to achieve that to NT$0.95, do we have some money coming from KGIL this year?

Thank you, Jimmy. The prospects of KGIB, our loan growth stood at 11%, and we maintain our business momentum, our growth rate has stood at a high single digit, approximately the number of last year.

Also, Paul mentioned that we need to expand our portfolio size. We aim for a double-digit for deposit size.

For wealth management strategy, we will continue to put in efforts. Because for more than three years, we have more than 20% growth, and next year we aim for more than 20% for wealth management.

For NIM, thanks to ONE KGI, the CASA fund has been reducing slowly, and we expect that NIM next year to be higher than 1.37% of last year. It's around 1.37% to 1.4%.

For credit costs, the asset growth is very content, the credit cost will stand at 10 to 15 bps next year. For the amortization rate, it's 6% to 6.5%.

For ROE, it's 1% or well, the number released is not very significant.

For operation expense under IFRS 17, some of them goes to the direct expense, and some of them goes to indirect expense, it's approximately 50% of IFRS 4. For interest sensitivity, here's the results for your reference.

The USD interest fluctuated more than TWD. If USD increase by 5 bps, and TWD appreciate by 1/3 of USD, and that will drive our new NB ratio up by 0.5%.

For CSM margin, it's affected by our product mix. Let me provide you some numbers.

For short-term IS product, the margin is around 10% to 30%. For long-term IS product, it's around 70% or higher.

For protection, it depends on the types, whether it's term, whole life, or riders or other policy. It's around 250% to 600%.

For ILP, some of the ILP cannot be categorized under the IFRS 17, it does not have CSM, but it will also generate fee income for company. For those that is able to categorize under IFRS 17, the number is around 2% to 10%.

Why do you apply for 140% for TIS? The RBC was 363% last year.

Considering the consistency and stability, we estimate and evaluate our numbers, we applied to the government for the number of 140%. After the transition, will it impact the net worth?

After the CDA has acquired China Life, fair value of liability, there's a positive impact on the insurance liability. However, the cost liability is mark-to-market, the positive impact need to be offset negatively.

That is the main difference. We also need to offset the insurance sales across subsidiaries on the financial holding side.

Although the net worth of KGIL increased by $113.5 billion, with the impact on the financial holding, our net number is positive of $4.1 billion. For cash dividends, Paul mentioned that according to laws, regulations, 70% of the profit need to go to the financial holding company.

If there's a positive offset of OCI, you also need to factor in the number. If the number of this year exceeds the our plan, that we still have to expect KGIL to contribute some.

If it's if falls short of expectation, we still have a double we can still keep it as CCLR. Invite

Tina from... I have a question for KGIL.

Do we have an additional $30 to $35 billion for CSM? Also, what's the trend for recurring yield?

What's the level do you expect this year? For hedging ratio, the hedging ratio is a bit higher compared to other lifers.

If you are amortizing AC, bond in AC, is it possible to reduce the hedging ratio? What's the hedging cost for this year?

Do you have a range? Also for KGIL, you will adopt 7 IFRS 17.

What's your usual ROE? What's the range?

For KGIB, I look at the net withdrawal. The number is smaller last year because of a smaller single withdrawal or other reasons for that?

The new business is around $30 to $35 billion, that's our goal this year. For recurring yield, we predict this year the goal is the same as last year, around 3.6% to 3.7%.

For hedging ratio, indeed, by the end of December, the figure is high, and it has decreased beginning this year. Through AC, we can save hedging point cost, and it can also contribute to our FX reserve.

This is our strategy. By the end of February, our hedging ratio is around 40%.

Our guidance this year, the hedging cost will be around 1% to 1.5%. Regarding ROE target and expectation, we want to maintain above 10% of ROE.

For the bank, for your last question regarding credit cost, in 2024, because we have an overseas case, the credit cost is higher than here. In 2025, going back to normal, a normal growth, the figure has returned to normal, around 12 bps.

If there are no further questions, then I will answer some questions online. One is regarding KGI Life, the COL after the transition.

Just like what I said, in 2026, if we look at our asset, is 2.2% to 2.3%.

Good afternoon. I have a few questions.

First, before adoption, the media and the public are talking about how difficult it is and we need to increase our capital. As of now, it doesn't seem to be the case.

Can the management talk about, after the transition this year, what are the plans for capital increase?

Are TIS itself enough? Is okay?

Second, Paul mentioned for KGI SITE this year it has grew a lot. If we look at Cathay Financial Holding, they have bigger moves this year.

They use Life resources, for example, fund, they allocated to SITE. For KGI, what's your evaluation?

Is this something that we will do and consider, or we will be still on the fence to wait and see what our peers do? Number three, regarding FX, internationally, Trump, US investment, requiring different countries to invest in the US, for example, Taiwan is also the case, increasing our investment in the US.

Because the new hedging regulation, and there are a lot of sell-off of foreign investments, and the exchange rate has fluctuated a lot to 31.9. Moving forward, is there a scenario analysis if NTD depreciate by 0.1%, FX reserve will increase, and how will it affect our P&L?

Because in the past, hedging cost and FX P&L has a big impact on P&L. Starting from the second half of the year, due to the new scheme, the impact is not as big.

These differences, in the face of a big fluctuation, how will it affect us? Number four, for CSM, as of last year, our pre-tax CSM is And also we talked about the CSM this year, the targets.

My question is, is there a prediction every year recognized YoY growth moving forward? Because after adoption, for the insurance industry profit, CSM plays an important role for profit generation, we want to know the momentum, how big it is.

Last, for ROI, COL has dropped, recurring yield 3.6% to 3.7% pre-tax, I assume, and hedging cost is 1% to 1.5%. My question is, after hedging, the recurring yield minus contract liability, that contract cost, subtracting cost that does not belong to CSM, how much profit can it generate?

For the impact on capital after adoption, during adoption, we have a bigger requirement for capital, but because there is a 15-year transition that we can accumulate over the future 15 years in addition to new contracts, new business focus for us to meet the target. In addition, we have prepared to issue sub-debt, and we have asked for approval for $20 billion, and we have already issued $10 billion, there is also $10 billion left.

This is our plan, our capital plan for the transition. For spread, currently, just like what Lauren said, pre-hedge is 3.6% to 3.7%, and COL is 1% to 1.5%.

If we deduct related cost, our spread is around 40 to 50 bps. For FX, this year NTD is depreciating, but because under the new scheme, all fluctuation will be turned to reserve, especially under AC.

The FX fluctuation and the impact has been minimized. If the fluctuation of 1%, the impact of reserve is around $140 million.

For the CSM amortized growth, we want to see a double-digit growth. For SITE, I can't comment on our peer's action.

They have their consideration, but for ourselves, we have high expectation, and I also want to compliment our SITE team. They started from a very low base, and their product has been viewed highly in the market, for example, the 009816.

My expectation for them is higher. Every SITE in the market, whether it's ETF or other mutual funds, our portfolio of funds is higher than equity, but I think the most important thing for us is to understand our customer and to build relationship with our customer.

I think, like what I said, the most important thing, whether you're in what business, security, banking, SITE, our goal is to create value for customers. For SITE, if you buy KGI SITE products, you are the beneficiary indeed, but how do we turn beneficiary into clients to have direct relation?

I think this is what we focus on. Scale is important, we also continue to focus on that.

For example, KGI Life supports SITE, a big part of that is on the investment platform is offered by SITE. Under ONE KGI, there are a lot of cross-subsidiary collaboration.

We want to find the right amount and establish relation with our customers. This is our current goal.

For the other of our peers, I think they have their own reasons doing so.

I have a question regarding macroeconomy. Because of the US-Iran war, for the financial holding, what's our outlook for inflation?

There might not be rate cuts, rather it might increase. What's our countermeasure?

Due to inflation, our impact on global economy, what's our overseas strategy? Second, can you talk about for the Kaohsiung asset center, will we consider going to Tainan?

Because Tainan is also now doing the same thing. Is Tainan an option for you?

Regarding macroeconomy, as of now, in the market for Fed whether it will cut rates, I think it is very different compared to last year due to the war. Trump, this morning, also gave a 20-minute speech talk about how great he was, the war will not end soon.

We know that the information is changing constantly. Inflation is going up indeed.

Whether Fed will cut rates based on future, I don't think there will be rate cuts. It's very different from last year.

Once the war ended, if a lot of things will change. Our view is that the Fed, in the future, if inflation goes up greatly, there are a few impacts that will affect their economy negatively, cut rates might be their option, but maintaining the rates as now is also an option.

For us, after adoption of IFRS 17, our asset and liability, if it's not AC, it needs to be mark-to-market, ALM is an important focus for investments. How can we lower whether it's a currency and duration mismatch?

This is something that we need to focus on in terms of product and investment strategy. First is ALM, very important.

Our goal, just like what we said previously, Jenny has mentioned, our overseas bond, when it matures, we return them to lower the mismatch. This is my answer, thank you.

For AMC, last year in the later half of last year, in the third or fourth quarter, we were approved for Wealth Management 2.0 and AMC for the bank. Consider that as a very important strategy.

Within six months, we have launched many products for the AMC, including Lombard lending and premium financing. For product development, we aim for a standard in Hong Kong and Singapore, so that's why our business is encouraging.

Wealth Management 2.0 AMC generate AUM for more than $200 million. AMC, the cross-border financing zone, after the opening of the HK branch, our deposit amount to $1.5 billion with more than 350 clients.

Two weeks ago, we were approved for Type 1 and Type 4. Next step, we are going to engage HKMA, and that will drive our wealth management business and AMC business as well as overseas wealth management business.

Good afternoon, Economic Daily. I have two questions.

The first, for the Mideast crisis, for KGIL, would you please provide exposure in Middle East? For you remit overseas bond back to Taiwan, do you also make any changes to your equity position?

For acquisition, what's your view for overseas and domestic opportunities?

For exposure in the Middle East, we do not have any exposure in Iran, and our exposure in the region is a bond issued by country with credit rating above A. When we are adjusting our position for equity, as starting when the AI became popular, we have seen good opportunities for that.

For domestic equity, we buy more, and we will focus on that in the future. For M&A, merger and acquisition, we focus on we acquire banks, but we do not currently have any projects at hand, but we are open to many opportunities.

For M&A, we have a Virtual Asset Law passing today, and we would like to know your view on the stablecoin for the future. For KGIL, you are adjusting asset and liability, are you open to any real estate opportunities?

Also, you mentioned the health zone of more than 101E. What's the purpose of making investment in that?

For our real estate investment, we are looking at logistics. We have invested in $300 million in public infrastructure, and also the land right in Xinyi District will be settled this month.

We will also build a health ecosystem. Of course, this requires time to plan, and starting from last year, we went on tours overseas.

In April, we will visit Japan in hopes of combining our insurance profession with the trends and the needs for health. We are exploring opportunities for working with other industries after we build the ecosystem.

We will be able to drive FYP further, and also that will meet the needs generated by low birth rate, population aging, and changing demographics. That's our plan, but I cannot present you with a certain version because we are still planning.

For virtual assets, KGIB has been leading the market in terms of virtual assets, and we are working with Tether for a long time. In the first quarter this year, KGIB was one of the few banks engaging in the business, and we have that what are with five vendors for using HSM, and that is a special wallet to keep the assets.

For the passage of the act this year, we are more we are we remain open to that, and we now know we know we now know how to keep the virtual assets for VASP. We also have a good relation, our corporate customers, and these customers are asking us to to ask us to to see whether we we can offer all-in-all-out opportunities.

We hope to provide service for them. For stablecoin, we will continue to engage with Tether, which is a very important partner, and that is a very important strategy for our future.

50% under the IFRS 4, it does not include provision for mortality, interest spread. These two are not affected by the transition.

For breakeven point, that is not a much-like internal, we do not send it out for now.

Two questions. For credit products, CDIB launched, renamed a GPL in February.

Can I see a more active strategy, and do see any opportunities internationally? For the performance of 009816.

In the future, what's your product strategy?

Thank you for your questions. I am Melanie from CDIB.

For private credits, on the book, the majority of them are backed by tangible assets as collaterals. Our annual yield exceed 11%, from risk and return profile, I think that is a very good asset allocation.

For partnership renaming, indeed, as Paul mentioned earlier, CDIB play a role in the financial holding company. We can source good products overseas, although there's some headwind hitting the private credits.

Nonetheless, if you choose better, it's a very good tool for diversification, we are making plan. If appropriate, we will launch relevant products based on the good underlying.

KGI SITE, our product strategy, for asset management, we need to focus on retirement. I think Taiwan is our home market, that is the most important, our product strategy will focus on making a fuller range of products.

Investors actually require services instead of product itself, we also hope to build a relationship, a portal with the investor, to build a long-term relationship with our investors. We do not want to do a one-time product push.

We want to offer retirement solution, and that is the theme of our product strategy. This year, I think I am positive about Taiwan's market this year.

If you believe that this market will going to boom, then it's a good time to buy for 009816. I think investors have faith in this kind of product, and indeed I see the need, and the needs are catered.

We need to identify the true needs and fulfill their requirements.

Thank you for coming to the conference today. If you should have any questions, please come to the PR team and Investor Relations to discuss your questions.

Thank you.