Chicago Atlantic BDC Inc (LIEN) 2026 Q1 法說會逐字稿

Good day, and welcome to Chicago Atlantic BDC, Inc. first quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 Chicago Atlantic BDC, Inc. 2026 年第一季財報電話會議。(接線員指示) 請注意，本活動將被錄音。

I would like to turn the conference over to Lisa [Kampf]. Please go ahead, ma'am.

我想將會議交給 Lisa[Kampf]。女士，請開始。

Thank you. Good morning. Welcome to the Chicago Atlantic BDC conference call to review the company's results. On the call today will be Peter Sack, Chief Executive Officer; Tom Geoffroy, Interim Chief Financial Officer; and Dino Colonna, President.

謝謝。各位早安。歡迎參加 Chicago Atlantic BDC 的電話會議，以回顧公司的業績表現。今天出席電話會議的有執行長 Peter Sack；臨時財務長 Tom Geoffroy；以及總裁 Dino Colonna。

Our results were released this morning in our earnings press release, which can be found on the Investor Relations section of our website and in our supplemental earnings presentation filed with the SEC. A live audio webcast of this call is being made available today. For those who listen to the replay of this webcast, we remind you that the remarks made herein are as of today and will not be updated subsequent to this call.

我們的業績已於今早在財報新聞稿中發布，可於我們網站的投資人關係專區以及向美國證券交易委員會（SEC）提交的補充財報簡報中查閱。本次電話會議的即時音訊網路直播亦於今日提供。對於收聽本次網路直播重播的聽眾，我們提醒您，本次發言內容截至今日為準，且在本次電話會議後不會更新。

Before we begin, I would like to remind everyone that certain statements that are not based on historical facts made during this call, including any statements related to financial guidance, may be deemed forward-looking statements under federal security laws. Such statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those forward-looking statements.

在開始之前，我想提醒各位，本次電話會議中某些非基於歷史事實的陳述（包括任何與財務指引相關的陳述），依聯邦證券法可能被視為前瞻性陳述。此類陳述涉及已知與未知的風險與不確定性，可能導致實際結果與該等前瞻性陳述所明示或暗示者存在重大差異。

We encourage you to refer to our most recent SEC filings for information on some of these risk factors. Chicago Atlantic BDC assumes no obligation or responsibility to update any forward-looking statements. Please note that the information reported on this call speaks only as of today, May 14, 2026.

我們鼓勵您參閱我們最新的 SEC 申報文件，以了解其中部分風險因素。Chicago Atlantic BDC 不承擔更新任何前瞻性陳述的義務或責任。請注意，本次電話會議所提供之資訊僅截至今日（2026 年 5 月 14 日）。

Therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay or transcript reading.

因此，我們提醒您，具時效性的資訊在任何重播或閱讀逐字稿時，可能已不再準確。

I will now turn the call over to Peter Sack. Please go ahead.

我現在把電話交給 Peter Sack。請開始。

Thank you, Lisa. Good morning, everyone. Chicago Atlantic BDC's record results this quarter demonstrate the benefits of our differentiated strategy. As the first publicly listed BDC focused primarily on lending to the cannabis industry, we remain uniquely positioned to participate in a market with limited competition. In an environment where other BDCs are struggling against credit performance, dividend coverage concerns and interest rate uncertainty, Chicago Atlantic BDC has continued to strengthen its position.

謝謝你，Lisa。各位早安。Chicago Atlantic BDC 本季創紀錄的業績，展現了我們差異化策略所帶來的效益。作為第一家主要聚焦於對大麻產業放款的上市 BDC，我們仍具備獨特定位，得以參與一個競爭有限的市場。在其他 BDC 面臨信用表現壓力、股利覆蓋疑慮與利率不確定性之際，Chicago Atlantic BDC 持續強化自身地位。

Net investment income for the first quarter of 2026 reached a record $10 million or $0.44 per share. During the quarter, we executed on our pipeline, funding a record $93.9 million across seven portfolio companies, including three new borrowers. We efficiently utilized additional capacity on our credit facility, growing the portfolio to its largest level in company history.

2026 年第一季的淨投資收益（NII）達到創紀錄的 1,000 萬美元，或每股 0.44 美元。本季我們推進既定案源管線，對七家投資組合公司合計撥款創紀錄的 9,390 萬美元，其中包含三位新借款人。我們有效運用信貸融資額度的新增可用額度，使投資組合規模成長至公司史上最高水準。

Today, we announced a $0.34 dividend, marking the seventh consecutive quarter at that rate. We continue to benchmark the company's performance against the broader public BDC industry as documented in the Raymond James BDC Weekly Insights as of May 1, 2026, and Oppenheimer's BDC quarterly report as of March 27, 2026.

今天，我們宣布每股 0.34 美元的股利，這也是連續第七個季度維持該水準。我們持續以更廣泛的上市 BDC 產業作為公司績效的對標基準，相關資料載於 Raymond James 截至 2026 年 5 月 1 日的《BDC Weekly Insights》，以及 Oppenheimer 截至 2026 年 3 月 27 日的 BDC 季度報告。

Our weighted average yield on debt investments as of March 31, 2026, was 15.8% compared to 10.8% for the average public BDC. 100% of our debt portfolio is senior secured. 1.3% of our total investment portfolio has exposure to sub debt, equity or JV investments compared to other BDCs who have an average exposure of 25.5%. 94% of the portfolio at par is either fixed rate or floating rate at their respective floor, insulating the company against the drop in interest rates. 100 basis point drop in benchmark rates would have an estimated annualized impact of less than 15 basis points on interest income.

截至 2026 年 3 月 31 日，我們債務投資的加權平均收益率為 15.8%，相較之下，上市 BDC 平均為 10.8%。我們的債務投資組合 100% 為第一順位擔保。相較於其他 BDC 平均 25.5% 的次級債、股權或合資（JV）投資曝險，我們整體投資組合中僅 1.3% 具有次級債、股權或 JV 投資曝險。以票面價值（par）計，投資組合中 94% 為固定利率，或為浮動利率且已達各自的利率下限（floor），可使公司在利率下行時具備緩衝。若基準利率下調 100 個基點，對利息收入的估計年化影響將低於 15 個基點。

Importantly, our floating rate loans, combined with our rate floor protections provides a structural advantage in portfolio construction. Only 2.6% of the portfolio at fair value has exposure to the software industry.

重要的是，我們的浮動利率貸款結合利率下限保護，為投資組合建構帶來結構性優勢。以公允價值計，投資組合中僅 2.6% 曝險於軟體產業。

We believe that our investments have very little overlap with the investments made by other public BDCs due to our unique investment strategy focused on underserved markets. The portfolio is underlevered with only $54.5 million of debt as of quarter end with 0.18x debt-to-equity ratio. This compares with the BDC average of 1.3 times debt-to-equity ratio, providing us with ample room to expand our liquidity and still below industry average for leverage. Lastly, we have no nonaccruals compared with an industry average of 3.4% of cost.

我們認為，由於我們聚焦於服務不足市場的獨特投資策略，我們的投資與其他上市 BDC 的投資重疊度非常低。截至季末，投資組合槓桿偏低，負債僅 5,450 萬美元，負債對股東權益比率為 0.18 倍。相較之下，BDC 平均負債對股東權益比率為 1.3 倍，這使我們在擴充流動性方面仍有充足空間，同時槓桿水準仍低於產業平均。最後，我們沒有任何停止計息（nonaccrual）項目，而產業平均停止計息占成本的比例為 3.4%。

In addition to our record quarter, in April, federal cannabis policy momentum accelerated meaningfully. The Department of Justice took a significant step announcing that state licensed medical cannabis products will be moved from Schedule I to Schedule III. This represents the most significant federal policy shift in decades.

除了本季創紀錄的表現之外，4 月聯邦大麻政策的推進動能亦明顯加速。司法部宣布將州政府核發執照的醫療用大麻產品由《管制物質法》第一級（Schedule I）調整至第三級（Schedule III），邁出重要一步。這是數十年來最重大的聯邦政策轉變。

The rescheduling will eliminate the onerous 280E tax code, meaning that medical cannabis will be taxed like a normal business on pretax income and no longer taxed on gross profit. Operators with medical cannabis market exposure will benefit with increased cash flow and strengthened balance sheets over time. We foresee this as favorably impacting the credit quality of our borrowers, although each business will be impacted differently based on their medical market exposure.

重新分級將取消嚴苛的 280E 稅法條款，意味著醫療用大麻將如同一般企業，以稅前所得課稅，不再以毛利課稅。具醫療用大麻市場曝險的營運商，將因現金流增加而受益，並隨時間推移強化資產負債表。我們預期這將有利於提升借款人的信用品質，惟各企業受影響程度將因其醫療市場曝險而有所不同。

We await the administrative hearing scheduled for June 29 when the rescheduling of recreational cannabis will be considered. The outcome of this hearing expected to conclude by July 15, could have tremendous impact on the economics of the broader cannabis industry in the US including increasing capital markets and M&A activity, which Chicago Atlantic is well positioned to benefit from.

我們正等待預定於 6 月 29 日舉行的行政聽證會，屆時將審議娛樂用大麻的重新分級。該聽證會預計於 7 月 15 日前結束，其結果可能對美國更廣泛的大麻產業經濟性產生巨大影響，包括促進資本市場與併購（M&A）活動，而 Chicago Atlantic 具備良好條件可從中受益。

While the current regulatory trajectory supports improved industry economics, we believe ongoing federal constraints and industry complexity will limit new large-scale lending competition in the near term. Consistent with our historical approach, we will maintain our rigorous underwriting standards based on today's regulatory framework, not potential future regulatory reform.

雖然目前的監管走向支持產業經濟性改善，但我們認為，持續存在的聯邦層級限制與產業複雜性，將在短期內抑制新的大型放款競爭者進入。一如我們一貫的作法，我們將依據當前的監管框架（而非潛在的未來監管改革）維持嚴謹的授信審核標準。

In conclusion, relying on our niche strategy enables us to operate in markets with limited competition and generate yields above our BDC peers. By focusing on underserved segments of the debt market, we benefit from strong pricing power with meaningful downside protection. We believe cannabis and the lower middle market remains structurally attractive relative to larger markets with less competition, stronger lender controls and stable underlying credit fundamentals. The company's performance through volatile markets underscores the resilience of our business model and its ability to support a consistent dividend.

總結而言，倚賴我們的利基策略，使我們能在競爭有限的市場中營運，並創造高於同業 BDC 的收益率。透過聚焦於債務市場中服務不足的區隔，我們受惠於強勁的定價能力，並具備實質的下行保護。我們認為，大麻產業與低端中型市場相較於競爭較少、放款人控制力更強且基礎信用基本面更穩定的大型市場，在結構上仍具吸引力。公司在波動市場中的表現凸顯了我們商業模式的韌性，以及其支持穩定股利的能力。

Now I'll turn it over to Tom to discuss the numbers in greater detail.

接下來我把時間交給 Tom，請他更詳細地說明數字。

Good morning. Thanks, Peter. I want to highlight the investor presentation that was filed with the SEC this morning that serves as our earnings supplemental. I'll start with the investment portfolio.

各位早安。謝謝你，Peter。我想特別提到我們今天早上向 SEC 提交的投資人簡報，該簡報作為我們的財報補充資料。我先從投資組合談起。

We have 40 portfolio company investments, 24% of the portfolio is invested in non-cannabis companies across multiple sectors. The average credit investment size is approximately 2.3% of our debt portfolio at fair value. While approximately 94% of the debt portfolio is insulated from interest rate declines through fixed rate structures or interest rate floors, the portfolio retains meaningful upside through favorable convexity in a rising rate environment. The gross weighted average yield of the company's debt investment portfolio is approximately 15.8%, which is in line with last quarter's yield. and none of our loans are on nonaccrual status.

我們共有 40 項投資於投資組合公司的部位，其中 24% 的投資組合投資於跨多個產業的非大麻公司。平均單筆信用投資規模約為我們以公允價值計算之債務投資組合的 2.3%。雖然約 94% 的債務投資組合透過固定利率架構或利率下限而免受利率下行影響，但在升息環境下，投資組合仍可透過有利的凸性保有可觀的上行空間。公司債務投資組合的總加權平均收益率約為 15.8%，與上季收益率一致，且我們沒有任何貸款處於停止計息（nonaccrual）狀態。

As of March 31, 2026, the company had $54.5 million of debt outstanding, all of which was drawn from the revolving line of credit.

截至 2026 年 3 月 31 日，公司未償債務為 5,450 萬美元，全部來自循環信用額度的動用。

As of May 13, 2026, the company had approximately $51.5 million of liquidity, comprised of $50 million of borrowing capacity under its $100 million credit facility, subject to a borrowing base and other restrictions and approximately $1.5 million of cash on the balance sheet. Subsequent to quarter end, the company filed a shelf registration statement with the SEC to allow the company to issue up to $500 million in securities, including debt securities to increase our available liquidity beyond the credit facility and create additional financial flexibility. We believe the opportunistic use of additional leverage deployed into high-quality, high-yielding assets and be accretive to earnings and supportive towards shareholder returns.

截至 2026 年 5 月 13 日，公司約有 5,150 萬美元的流動性，包含在其 1 億美元信用融資額度下約 5,000 萬美元的可借款額度（受借款基礎及其他限制約束），以及資產負債表上約 150 萬美元的現金。在季末之後，公司向 SEC 提交了貨架式註冊聲明（shelf registration statement），使公司得以發行最高 5 億美元的證券（包含債務證券），以將可用流動性擴大至信用融資額度之外，並創造額外的財務彈性。我們相信，機會性地運用額外槓桿並投入於高品質、高收益資產，將可增厚（accretive）盈餘並有助於股東報酬。

Turning now to the financial highlights for the first quarter. Gross investment income increased to $16.7 million from $14.2 million for the fourth quarter of 2025, primarily due to higher interest income. Net expenses for the quarter were $6.7 million compared to $5.9 million in the fourth quarter of '25. This increase was driven by an increase in interest expense from the utilization of the credit facility to fund new originations. Net investment income for the quarter was a record $10 million or $0.44 per share, up from $8.3 million or $0.36 per share in the fourth quarter of 2025.

接著看第一季的財務重點。總投資收益由 2025 年第四季的 1,420 萬美元增加至 1,670 萬美元，主要因利息收入提高。本季淨費用為 670 萬美元，較 2025 年第四季的 590 萬美元增加。此增幅主要來自為資助新承作而動用信用融資額度，導致利息費用上升。本季淨投資收益創新高，達 1,000 萬美元或每股 0.44 美元，高於 2025 年第四季的 830 萬美元或每股 0.36 美元。

The increase was driven by increases in both interest income and fee income on strong deployments and partially offset by changes in expenses.

此增長主要由強勁投放帶動的利息收入與費用收入增加所驅動，並部分被費用變動所抵銷。

In our investment portfolio, we recognized a net unrealized loss this quarter of $1.4 million, which was due to the impact of widening spreads, not underlying credit performance. Net assets reached a new high of $304.2 million at quarter end. Net asset value per share was $13.33 compared to $13.30 in the fourth quarter of 2025. At quarter end, there were 22.8 million common shares issued and outstanding on a basic and fully diluted basis.

在我們的投資組合中，本季認列 140 萬美元的淨未實現損失，係因利差擴大所致，而非源自基礎信用表現。季末淨資產達到 3.042 億美元的新高。每股淨資產價值為 13.33 美元，較 2025 年第四季的 13.30 美元上升。季末普通股已發行在外股數為 2,280 萬股（以基本及完全稀釋基礎計）。

I will now turn it over to Dino to talk about our origination efforts.

我現在把時間交給 Dino，請他談談我們的承作（origination）工作。

Thanks, Tom. The first quarter of 2026 was our most active origination period to date from both a gross and net deployment perspective. We funded $93.9 million in new debt investments, including a $38.3 million refinancing to our largest borrower, which we believe remains an attractive investment for the portfolio now with an extended duration.

謝謝你，Tom。2026 年第一季是我們迄今最活躍的承作期間，無論以總投放或淨投放角度皆是如此。我們新增撥款 9,390 萬美元的新債務投資，其中包含對我們最大借款人 3,830 萬美元的再融資；我們認為在期限延長後，該投資目前對投資組合仍具吸引力。

Three of the seven portfolio companies we transacted with were new borrowers to the BDC. Of these new debt investments, 100% of them were senior secured and 83% are fixed rate or floating rate loans at their respective floor at quarter end.

我們本季與之交易的 7 家投資組合公司中，有 3 家是首次向本 BDC 借款的新借款人。在這些新的債務投資中，100% 為優先擔保（senior secured），且在季末有 83% 為固定利率，或為浮動利率且利率位於各自的下限水準。

Net investment activity for the quarter stood at $32 million.

本季淨投資活動為 3,200 萬美元。

During the first quarter, we had loan repayments and amortization totaling approximately $63.4 million, which included refinancings of $42.1 million and $21.3 million in paydowns and amortization. As of the end of the first quarter, there were approximately $13.7 million in total unfunded commitments for the portfolio. Since quarter end, one borrower fully repaid a $7 million loan.

第一季期間，我們收到的貸款償還與攤還合計約 6,340 萬美元，其中包含 4,210 萬美元的再融資，以及 2,130 萬美元的償還與攤還。截至第一季末，投資組合的未撥款承諾總額約為 1,370 萬美元。季末之後，有一名借款人已全額償還一筆 700 萬美元的貸款。

The pipeline across the Chicago Atlantic platform as of quarter end, which includes cannabis and non-cannabis opportunities totaled approximately $810 million in potential debt transactions. The breakdown of the opportunity set includes approximately $482 million in cannabis opportunities and approximately $328 million in non-cannabis opportunities.

截至季末，Chicago Atlantic 平台的案源管線（包含大麻與非大麻機會）合計約有 8.10 億美元的潛在債務交易。其中機會集的組成約為 4.82 億美元的大麻機會，以及約 3.28 億美元的非大麻機會。

Our non-cannabis origination pipeline expanded meaningfully throughout the quarter as companies increasingly looked past broader macro uncertainty and reengaged in strategic activity. While larger lenders seem to take a more cautious posture at the start of the first quarter, we saw a clear inflection point mid-quarter with a notable pickup in deal flow and financing demand.

本季期間，我們的非大麻承作管線顯著擴大，因為企業逐漸不再只著眼於更廣泛的總體不確定性，並重新投入策略性活動。雖然大型放款人在第一季初似乎採取較為審慎的立場，但我們在季中看到明顯的轉折點，交易流量與融資需求顯著回升。

We also expect activity in cannabis to pick up throughout the remainder of the year as regulatory tailwinds start to filter through the industry fundamentals and M&A appetite. Regardless of which way activity or competition for financing shifts or regulatory reform plays out, we will remain disciplined in our approach to underwriting. As the BDC sector continues to navigate macro uncertainty, we believe performance dispersion across BDCs will continue to widen.

我們也預期，隨著監管利多開始逐步反映在產業基本面與併購（M&A）意願上，大麻領域的活動將在今年剩餘期間回升。無論活動量、融資競爭態勢如何變化，或監管改革如何發展，我們都將在承作審核上維持紀律。隨著 BDC 產業持續因應總體不確定性，我們認為 BDC 之間的績效分化將持續擴大。

While peers face pressure from mark-to-market volatility, yield compression and evolving dividend dynamics, we see these as largely market-driven repricing events rather than broad-based BDC industry deterioration.

當同業面臨按市價評價波動、殖利率壓縮以及股利動態演變所帶來的壓力時，我們認為這些主要是由市場驅動的重新定價事件，而非整體 BDC 產業的廣泛性惡化。

In this context, differentiation matters. Our focus on cannabis and the underserved lower middle market positions us in a less competitive segment with favorable pricing dynamics and strong lender protections. Combined with our disciplined underwriting and senior secured portfolio, we believe we are well positioned to capture attractive risk-adjusted returns while managing downside risk and delivering sustainable returns for our shareholders.

在此背景下，差異化至關重要。我們聚焦於大麻產業與服務不足的低端中型市場，使我們處於競爭較少的區隔，具備有利的定價動能與強健的放款人保障。結合我們嚴謹的承作審核與以優先擔保為主的投資組合，我們相信能在管理下行風險的同時，掌握具吸引力的風險調整後報酬，並為股東帶來可持續的回報。

Operator, we're now ready for questions.

接線員，我們現在準備開始提問。

(Operator Instructions)

(接線員指示)

Pablo Zuanic, Zuanic Associates.

Pablo Zuanic，Zuanic Associates。

Can we just give more color on the shelf registration, $500 million? I suppose because of the discount to book value per share, equity would not be an option. It will be mostly debt securities. Can you talk about the type of rates you could get compared to your current revolver and timing you may tap the debt security market?

能否再多說明一下 5 億美元的擱置註冊（shelf registration）？我想因為每股淨值有折價，發行股權應該不是選項。應該會以債務證券為主。你們能談談相較於目前循環信貸（revolver）的利率水準可能如何，以及你們可能在何時進入債務證券市場籌資嗎？

Thank you for the question. we filed the shelf registration primarily with a focus on being able to raise debt in the future. It's too early to speak to what rates we may or may not be able to get and when we might raise the capital.

謝謝你的提問。我們提交擱置註冊主要是為了未來能夠發行債務籌資。目前談論我們可能或不可能取得的利率，以及何時籌資，都還太早。

Understood. And then just a reminder in terms of what leverage you're comfortable with? I know you mentioned 1.3 is the BDC average, but what are you comfortable with given your model?

了解。另外，提醒一下你們可接受的槓桿水準？我知道你提到 1.3 是 BDC 的平均值，但以你們的模式而言，你們覺得舒適的槓桿是多少？

We expect to stay well below the BDC average.

我們預期會維持在遠低於 BDC 平均值的水準。

All right. And then just moving on to book loan growth. I know Dino talked about -- he gave the split of the pipeline between cannabis and non-cannabis. I don't remember what number have been given before. Can you just remind us by how much the -- just a better sense of how much the non-cannabis pipeline grew by?

好。接著談到帳上放款成長。我知道 Dino 談到——他提供了管線在大麻與非大麻之間的拆分。我不記得之前給過的數字。能否提醒我們，非大麻管線大概成長了多少，讓我們更有概念？

And then given the favorable regulatory news on cannabis, I would have thought that over the next one or two years, you would skew more into cannabis in terms of new lending than non-cannabis, but that doesn't seem to be the case based on the numbers you're giving us.

另外，考量到大麻監管方面的利多消息，我原本以為未來一到兩年你們在新增放款上會更偏向大麻而非非大麻，但從你們提供的數字看起來似乎不是這樣。

Pablo, thanks for that. I think the non-cannabis origination pipeline grew significantly, but it's just a pipeline. What actually will wind up transacting, it's hard to tell. I do think the cannabis portfolio, as I mentioned, the origination pipeline will continue to grow off the back of the recent news, we've seen increased M&A activity, and I think we expect to see more as the year progresses.

Pablo，謝謝你的問題。我認為非大麻的承作管線確實大幅成長，但它畢竟只是管線。實際最後會成交多少，很難判斷。我也認為，如我先前提到的，大麻投資組合的承作管線會在近期消息帶動下持續成長；我們看到併購活動增加，且預期隨著年度推進會看到更多。

Okay. But just for modeling purposes, and I know we could do this offline, but for modeling purposes, can we just assume that you will make full use of the revolver by end of the year?

好的。但就建模而言——我知道我們也可以私下再談——就建模而言，我們是否可以假設你們會在年底前把循環信貸額度用滿？

We certainly would certainly aim to do so.

我們當然會以此為目標。

Okay. And then just I was trying to do the math in terms of the average loan size for those three new portfolio companies. I don't know if you can give that number. I don't think the 10-Q has been filed yet, and I couldn't figure it out from the presentation. But it just seems to me that the new loans have been a lot smaller.

好。另外我在計算那三家新投資組合公司的平均貸款規模。不知道你們能否提供那個數字。我想 10-Q 還沒提交，我也無法從簡報中算出來。但我感覺新放款的規模小了很多。

And is that within your target range? Or do you expect them to be larger over time?

這是在你們的目標範圍內嗎？還是你們預期之後會變大？

I think you might notice that the -- our non-cannabis portfolio is comprised of loans that are much smaller, and that's by design that we expect that cannabis -- non-cannabis diversified lending portfolio to range between 20% and 30% of the portfolio and to be comprised of smaller positions than you'll see in our cannabis portfolio.

我想你可能會注意到——我們的非大麻投資組合由規模小得多的貸款所構成，這是刻意為之；我們預期大麻——非大麻的多元化放款投資組合將占整體投資組合的 20% 到 30%，且其部位規模會比你在我們大麻投資組合中看到的更小。

Right. Okay. And then just stepping back, bigger picture, I know everyone is talking about this ramp on potential M&A activity because of the rescheduling news. But are you really seeing that so far? And is this going to be more about public companies going private operators or both ways, private and private?

了解。好。再退一步看更大的格局，我知道大家都在談因為重新分級（rescheduling）的消息，潛在併購活動可能加速。但你們目前真的有看到嗎？這會比較像是上市公司將營運商私有化，還是兩種方向都有——私對私也有？

Just give more color in terms of M&A because what we are hearing is that it has changed, but not as much as one would have expected, but just give more color in that regard.

請就併購再多補充一些細節；因為我們聽到的是確實有變化，但沒有大家原本預期的那麼大，想請你們就這點多談談。

We are certainly seeing it in our pipeline that an increasing portion of our pipeline of opportunities is driven by M&A. I think not all of this M&A is large enough or with public companies enough to be publicly announced. But I think the interest is definitely there.

我們確實在管線中看到，機會來源中由併購驅動的占比正在提高。我認為並非所有併購案的規模都夠大，或涉及上市公司到足以對外公開宣布。但我認為市場的興趣確實存在。

The excitement is there and the eagerness to take advantage of what seems like a onetime opportunity within the industry is driving this sentiment change.

市場的興奮感與把握這個看似產業一次性機會的急迫感，正在推動這種情緒的轉變。

Okay, thank you. That's all for me. Thank.

好的，謝謝。我這邊就到這裡。謝謝。

Ladies and gentlemen, this ends our question-and-answer session. Also, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

各位女士先生，我們的問答環節到此結束。本次電話會議也已結束。感謝各位參加今天的簡報。您現在可以掛線。