In the first half of the year, the overall operation was stable, and the scale of trust business remained stable. Anxin Trust has been taking active management as the core of trust business development in the industry, with 30% of the channel business and less than 2% of the income. In the first half of the year, the scale of trust companies dominated by channel business has shrunk a lot, but the market demand for compliant channel business still exists, resulting in a higher rate of return after the scale shrinks. This year, the trust business of the whole industry is under great pressure and challenges. Under the new rules of capital management, it is more difficult to obtain funds, and the release rhythm of stock products and new products are affected. This year, the company's operation mainly revolves around the requirements of the new regulations on asset management to sort out and adjust the products, and the scale and structure of the trust business are expected to remain stable.

Long-term stable capital is a scarce resource in the industry, and the company uses product innovation and wealth management to open the bottleneck of capital acquisition. With the gradual implementation of the new regulations on asset management, it is difficult to obtain incremental funds from banks, and the source of long-term funds in the future is an important issue for the development of the company. The company also continues to solve this problem through product and service innovation: on January 8 this year, Anxin Home Care, the first old-age trust product in China, was landed, with a total size of 3 billion yuan, and introduced into the world's top old-age service institutions in Denmark in service. and supporting the facilities of a third-class hospital. The purpose of creating pension products is to increase the stickiness of customers, through consumer trust, with financial funds to achieve pension coverage. With the intensification of aging, the pension market has a huge space for development, the company will first take first-tier cities as the main line to obtain long-term funds. On the other hand, to strengthen the development of wealth management, the mutual fund platform has been hit hard this year, and the company is considering introducing a team with sound operation, good customer resources, but no license and good asset matching. At the same time, online to strengthen cooperation with third-party institutions, such as cooperation with Tencent LiCaiTong this year, through Yixin car loan ABS products to obtain high net worth customers.

Rely on resource endowment to maintain a stable investment in assets. In the past, relying on the accumulation of Oriental in the real estate industry, the company has obvious advantages in policy changes and risk control in the real estate industry, but the pressure on this area is also gradually increasing. At present, the company is also actively looking for new opportunities in the fields of urban renewal, modern agriculture, logistics industry, biomedicine, and Internet basic implementation. For example, urban renewal is mainly concentrated in Guangdong-Hong Kong-Macau Greater Bay Area as a village in the city. At present, there are more project reserves. Logistics industry, through the creation of commercial logistics real estate, in order to rent to obtain stable income. In modern agriculture, Hainan has participated in the world's largest dragon fruit grower. In the field of biomedicine, we can reduce the cost of using insulin by working with experts with core technology. Multiple main lines go hand in hand to improve the quality of asset delivery.

The inherent business pressure is greater, and the investment style with security, liquidity and robustness will be transformed in the future. The secondary market fell significantly in the first half of the year, and the investment in the company's inherent business also faced challenges. At that time, more consideration was given to the investment value and the linkage with the trust business in the long run, but the market fluctuated greatly and the stock price fell rapidly. The company is also considering finding a good way to hedge this business and lock in the risk. In the future, the inherent business will consider gradually reducing the investment in the secondary market and seeking safe, highly liquid and robust investment. The direction of regulation is to use more of its own funds to serve the main business, and the company will also adjust in this direction.

Risk tips: strict enforcement of the new rules on trust management, a sharp decline in the secondary market, and increased downward pressure on the macro-economy.