Agricultural Bank Of Chin

the Secretary of the Board of Directors of ABC. I'm very glad to invite the investors, analysts, as well as press friends to participate in the Agriculture Bank of China 2023 interim results announcement. I'd like to express my heartfelt thanks for your participation and express my appreciation for your long-term support. First of all, I'd like to give you introduction about the leaders of the agriculture back of China who honored this event with their presence. They are the vice chairman, executive director, president, Mr. Fu Wanjun.

Executive director, vice president, Mr. Zhang Xuguang. Executive Director, Vice President, Mr. Lin Li. Vice President, Mr. Liu Zhaowan. Vice President, Mr. Liu Hong. At the same time, I would like to introduce all of the directors.

executives who participate in this event online. We have a lot of friends coming to this announcement and we also have a lot of friends coming from all around the world who join us online. Therefore, in the questions and discussion, we will have on-site Q&A, video and internet Q&A. to make sure the investors, analysts, press friends, as well as the stakeholders can have a really comprehensive communication with the management team. And we will have a result announcement and QA session. In the first part, I would like to welcome Mr. Fu to give us an introduction about the interim results of the Agriculture Bank of China. Welcome. Distinguished investors, analysts, and dear friends from press, good afternoon. Welcome to the Agriculture Bank of China 2020 industry interim results announcement. Now, I'd like to, on behalf of the management team, to give you a brief introduction about the performance of the first half. The first half, we fully implement the spirit of the CPC and we follow the deployment of the CPC Central Committee and to fulfill our duty of supporting agriculture industry and received really good results. financial results. And our value creation capability are stable. In the first half, the net profit is about 133 billion, with a growth rate of 3.9%. Revenue is 365 billion, with 5.8%. Service charge and commission are 50.7 billion, with 2.5%. ROA is about 0.74%. ROE, 11.43%. And the second one, we have a really balanced development of the asset and debt. Overall asset is about 38 trillion yuan increased by 4.1 trillion yuan. Debt amount 21.8 trillion yuan increased by 2 trillion yuan. For the debt, it's about 35.3 trillion yuan increased by 4.1 trillion yuan. And the full caliber deposit amount is 33 trillion yuan increased by 3.8 trillion yuan. And the asset quality is really good. And the NPL ratio decreased to 1.35%. And also, we can see that the special provision coverage also improved very well, special pension loans. reduced by 2 BP and the overdue joint reduced by 9 BP and we have actually good asset level and among the backers 2023 ranking we are ranking number 3 and the capital adequacy rates are ranking the top and it's about 16.25% And while serving the agriculture industry, it's our duty and also our core business. In the first half, Agriculture Bank of China follows the beginner's mind and have deep concentration of agriculture market to push the revitalization of rural areas to help to improve the efficiency of development and to accelerate the development of agriculture and strong agriculture country and to provide support, financial support for the development of agriculture industry. We continue to increase the credit placement of agriculture rural areas and farmers and we can see that now we have increased by 1.02 trillion yuan in terms of county level loans and for the farmers loans, it's over 1 trillion yuan increased to 1.04 trillion yuan, increased by 2,261 billion yuan. For the agriculture-related zones, we actually increased by 5.9%, increased by 898 billion yuan, and now we increased nearly about 4 million users and customers. And also we cover the plantation and the seed industry to safeguard the food security. And for the food field loans, its amount is about $272 billion increased by 53%. For seed industry, the overall amount is about $47 billion increased by 67%. We also serve the real economy. This is our duty to perform. And in the first half, agricultural back of China followed the requirements of the macro regulation.

So the real economy put it as a starting point.

and also to follow this development strategy to strive to serve the high-quality development of the real economy and to follow the flung in manufacture policy to empower the industrial upgrades and the transformation of both. And as overall amount is about 612 billion, we further improve the capability of serving the finance industry. And for the emerging industry, the loans increased over 40%. And for the inclusive finance, we try to empower the SMEs. and now the residue is about 3.3 trillion increased by 29.5 percent we serve the green finance and serve the whole country now the green loans residue is about 3.6 trillion increased by 34.4 percent And the increased amount and the ratio are creating the record height. And also we serve the financing, fundraising demand of the real estate developers. And we have about 200 people projects restored and 100 projects delivered in this field. And we also serve the private economy to find a good way to serve the private company. Now the residual in private loans is about 3.5 trillion yuan, increased by 471 billion yuan, increased by 15.5%. And we also serve the diversified amount of the real economy. And for the financial investment inquest by the 500 betting them and the rankings of first and our international business inquest about the 900 BNY, increased by 25% YOY. And for the innovation, these are actually the momentum of development of the app. In the first half, we stick to the expansion of customer base to develop the classification of the customers. to push forward the scientific empowerment, to push the high-quality development of the business, and work with high-level innovation to push the transformation to further expand and consolidate the customer base. to provide the foundation for the BAPs to further enhance our strengths and to build a safe guard. And the personal customer's amount is about 800 million, that's the first amount of competitors. And it's reaching 19 trillion, increased by 6%. And the personal loans actually increased by 400 billion yuan, and the increase amount is ranking the first. And with the personal consumption loans, it's about 900 billion yuan increase, also among the highest. And for the corporate customer, it's over 10 million, and increased to 101 million yuan. 10.1 million and also ranking the first and we can see that the personal individual customer amount is about 19.6 trillion equals by 1.23 trillion yuan. And for these Palm mobile backing, the user amount is about 1.9 million. And we can see that in terms of the custody business, it's still about 40.8 trillion yuan, equals by 6%. And for the family trust, the scale is about 80 BGN increased by 32 BGN. And this increasing amount is right in the first. And we have also signing a lot of new customers. And the newly signed company customers are over 1,000. In the first half, when we face complicated situations internally and externally, We have a good risk control to further control the risk as well as digital risk to further improve our forward-seeing capability against the market risk and to follow a stringent compliance strategy and also to push the credit structure optimization adjustment to focus on the risk monitoring, the K-link and K-areas. and we further improve the risk control capability and further push the building of the platform and also the foreign exchange risk are controlled within a certain range and we accomplished the multi-system and multi-region disaster recovery rehearsal. And the next step, the agriculture back of China will follow the Chinese socialism characteristic spirit lead by President Xi Jinping to follow the strategy of agriculture, rural areas and farmers and to further improve our capability of financial service to make our contribution to the modernization development of the China and the agriculture industry. thank you president fu talking about the business balance as well as serving the strong agriculture strategy to lift us into a higher level to serve the real industry to further improve the momentum of development to keep a stable development of asset and balance development and these five assets he concluded the performance of the first half of Agriculture Back of China and also looking to the further work in the next half. And thank you for your sharing. Next, we will have interaction and we would like to welcome all the audience to ask only one question. Before you ask a question, please share with us your name and title and your organization. Now it's time for Q&A. So we'd like to start from the lady in the first row. Okay, thank you. I'm from the Xinhua News Agency. From the current economic situation, we still lack demand and consumption, and this is about the stagnation of efficient credit demand. So could you give us an introduction about the situation of credit placement, and how do you look into the futures trend? And now when we lack the internal demand, what's the next step? What will be the optimization steps for the credit placement in the future?

Thank you.

Okay, now let's welcome the vice president to answer the question. Okay, thank you for your question. I'm about to answer this question. For the first aspect, the first question you mentioned is about the first half credit placement situation. I think I can first answer this question. In this year, the Agriculture Bank of China followed the strategy of stable growth and expanding internal demand to serve the agricultural areas and farmers and serve the real economy. In the first half, the overall credit placement showed three features I would like to share with you in terms of the reasonable growth of the overall amount. continuously restructuring optimization and focus on the key links the key areas and we have reasonable growth of the whole demand and the the balance is about by the end of june it's about six billion and that was a growth of about 10 We also continuously improved the structure and the corporate loans kept stable growth in the first half. The placement of individual loans under this complicated period also showed a good growth. We increased newly by 400 betting. And for mortgage loans, in the first half, it's about also 4 billion, 40 million. And individual loans increased by 900 million. And the personal consumption and the mortgage loans increase actually are ranking the first and the top in the industry. And when we look at the original structure, for the major original strategy, Along with this strategy, actually, these major cities and provinces, their increase of loans are higher than the average. The county level loan increase is more than 500 million, with an increase rate of 13%. For manufacturers, the balance is about 2 trillion yuan, and with a growth rate of 21.6%. For strategic and emerging industries, it's about 1.8 trillion yuan with an increase rate of 40%. For green energy industry, it's about 6 trillion yuan with its growth rate of 34.3%. This is about the performance of our loans and credit placement in the first half. We kept a really reasonable growth of the overall amount and also have a balanced structure and focus on the key areas in the industries. This is the first question. And for the second question, we care about the current situation, about the economic recovery and the lack of the demand. And I think that for this question, we need to think about it in the double aspects. First of all, we need to discuss polling about China's economy's We have a strong resilience and potential of domestic economic development. In the long run, it's really promising and this will not change. And at the same time, we need to also fully notice that recovery of the economy is actually a spiral process, a spiral upward process. Now we lack the efficient demand for this issue. I believe that as a recovery of the economy, it will be much improved in the future. And besides, we will look at the operation practice and our feelings as well as the demonstration of the demand actually in different industries or different situations for example in real asset industry as well as the relevant industries there are also some demands of part of the export industries that are impacted but at the same time where the agricultural areas, farmers, new energy, the mobile industry, the high-tech industry, green finance, the green low-carbon industries, in these industries, their credit demand actually are really strong. So we need to timely detect and find this kind of demand and supply their demand. And that's the second one. And the third point, I'd like to see that When you tried to ask this question a while ago, maybe you paid attention to this. Macquarie speaking, in July, when we look at the RMB loans as well as the performance, actually it's below the market expectation. And mainly in July, in June, we had the adjustment of the monetary policy and it impacted the situation. Also, we have some seasonal elements which caused the fluctuation. and the further credit placement this is a periodical and it's actually continuous process and i believe that the recovery trend will not change as more policies to release to stabilize the economy i believe that we will have a fast economic recovery and the credit demand will be further restored and improved and when we look at the agriculture back of china When we faced this year's stagnation or lack of the credit amount, we actually prepared and deployed in advance. And in the first half of the project marketing, especially for the middle and the long-term project reserve, we actually put it as a priority of us. And further, a accomplish and store more projects and to further push the sustainable development of the project placement. In the first half, for the project reserve, which already approved but haven't placed, the amount actually increased by 78 million yuan, and we are confident we will have a stable growth of the project placement for the second half of this year. And for the next step in Agriculture Bank of China for the credit placement, what is the focus of our placement?

I think that for this question,

Every quarterback of China will always focus on the compatibility of the credit structure to precisely meet the demand of the public to regard this as the orientation and the targets of our credit placement. We will follow the change of economic situation, focus on the national strategy, as well as the direction of economic transformation to constantly optimize our policy and direction. And first, we need to further enlarge the credit loans. And in January, national leaders mentioned that we must strengthen the agriculture industry build a powerful country. So we will further release the loans in this aspect. We timely adjust the strategy of county-level loans and to actually turn it, to increase it to largely in the over annual plan of the county level loans and increased it by 60 billion and also we will support the major project of the domestic demand and focus on the manufacturing industry as well as some infrastructure projects including transportation and energy industry and the adaptation refurbishment

of the shabby areas of the top tier cities.

We will issue loans more and further push the high-end advanced manufacturing industry to support these industries and support the low-carbon green transformation. Green finance in the future will have a promising future. I would consider that China will have this opportunity to turn green finance into a more important position and to accelerate the innovation of the green finance product to push the green transformation of the financing this aspect to push the transformation and for us it's about strengthening the support the financial support of science research and innovation and we will strengthen the For the organizations, we will follow the recent policies and the mechanism with the loans and funds. And we provide the high-tech companies with more channels of fundraising and sources of capital. And also, we will focus on the consumption loans, consumption credit business. Now, the consumption is restoring and recovering in China's market and to push the consumption and enlarge the domestic demand. And the agriculture back of China will continuously improve the credit placement in this regard to meet the demand of the public to high-end life. And in the home price, home... home decoration, travel, etc. We will enlarge the credit placement to issue more loans to support these aspects.

And that's all from my side. Thank you. Thank you, Vice President. Now please continue to ask more questions. Okay. This gentleman at the third row, the floor is yours. Okay, thank you. I'm

from Morgan Stanley. I would like to ask a question about revenue. You can see the recovery of the economy in the first half, but it hasn't met the market expectation in such a complicated environment. What's the driving force of the revenue? And also you talked about the spiral growth that led to uncertainty. So the second half, what's the major driving force of the revenue for the second half? What's your prospect?

Okay, thank you. Please answer this question. Okay, thank you for your question. For this question, I'm about to answer it now.

For the first half, revenue, just now in our presentation, I've already shared part of it. And here, I'd like to use four sentences to conclude. and the revenue is steadily growing the profit is increasing stability we have a prudent risk control and stable transformation and in the first half of the year we had a stable progress that made a really good result of revenue and we have a stable increased revenue for the first half we efficiently deal with assets repricing as well as a fiercer competition in the market, as a fluctuation in the finance market. We successfully deal with the medical industry and adjust our operation strategies. We realize there's a revenue of 36 million with a growth of 0.8%. For this type of result, actually it successfully reflects our strategy as well as our country back of China's resilience against the macro environment. And second, for the profit, it also increases steadily. The first half, by serving the real economy, we also deal with the pressure internally and realize a good comprehensive operational result. The net profit of the first half is $130 million, with the year-to-year growth of 10% to realize a stable growth. And the third one is about we have project risk control and we have forwarded same control of the asset quality to also have a really good control of all the assets to solid consolidate the foundation and to have a good control of NPL ratio of nearly about 1% and largely control the NPL ratio and we also have successful transformation and we grasp the opportunity of economic recovery and grasp the market's opportunity and trend to also proactively push the optimization transformation of the key sector and also in the first half we uh service charges commissions increased by 2.5 percent worldwide and for the other increase revenue also of course largely so i think this is really not easy to achieve and we've step by step to get more benefit from the transformation and for the performance of the first half is not easy to achieve and we proactively adapt to the complicated economic situation by enlarging the support to the major industries. Our project amount kept a fast growth. In the first half, the daily asset is about 35 trillion yuan with a yearly growth of 18% and offset part of our loss. uh impact on the predicted net profit and also for the revenue uh we closely follow the change of the demand of the customer and also to push the development of the agent insurance business and also provide an enhanced comprehensive service capability of a legal person and kept a stable growth of the service charge and commissions. And we have also controlled the monitor of asset quality to have risk monitoring and risk control to stabilize the asset quality. At the same time, we actually also, in the first half, we have the cash settlement about 16 billion yuan. second one is about to stable our operational result the next step agriculture back of china will follow the strategies and policies of the central government to also grasp the opportunity to continuously improve our work to also work on the coordinator development to also keep a stable profitability and to make it more detailed i think that there are five aspects and the 15 words and characters to share with you the first is to increase the placement and agriculture back of title will follow the macro policy to actively deal with data to symbolize a growth and to further optimize our work and make more contributions and also we will focus on the key areas to guarantee the credit placement and to increase the credit placement and second we will stabilize the revenue and that is we will stabilize the revenue and to further optimize the asset allocation as a credit business structure to further improve the revenue and combine with the market trend change to also have a really flexible adjustment of the rate and to improve the differentiated pricing and have a good control and to actually keep the rate difference within a reasonable level and the third one is about the first half we actually have a really good revenue of the major business and actually it depends on our prediction of the market situation and there's a good control of the strategy and we will further improve the comprehensive financial service capability to further improve the stable growth for the service charge and commissions and to further optimize the investment portfolio to with the as well as the securities as well as the fluctuations of the metal and metal industries to have a really good control of the risk and also we need to have a good management of the credit cost and to have a tight control of the risk in the key areas to conduct the risk to have a really clear reflection of the risk and also to make sure the credit cost was stabilized and keep controlling the limited level and also for the internal external complicated complicated situation which pose the challenge for us it require us to further nurture and cultivate ourselves in the asset allocation business structure as well as the coordination or in the credit costs, debt costs, as well as financial expenditures, we need to actually further improve our precision management capability. It poses high requirements towards us. So we will continue to strengthen our management and to further improve our efficiency and to deal with the impacts of uncertainties. And for this, that's all for my answer for this question. Thank you. Okay, thank you, Vice President, for your answer. And the third question,

We would like to leave the opportunity to our colleagues who join us online.

we will follow the sequence of the application type so first we will ask our staff to give the question hello i'm long and sure responsible for the investment thank you for giving me this opportunity to ask questions i would like to ask a question related to the local bond and the local debt and so i would like to understand the situation of the loans of the city investment corporation and what's their performance and what kinds of management and policies will we have and how will we adjust the policies for them and thank you for asking this question i would like to welcome mr john to answer this question okay thank you thank you very much and for its city investment corporation loans business we follow the requirements policies of the country level and we follow the compliance first strategy and control structure optimization policies and by the end of june the city investment corporation loans balance account for about five percent of the overall loans amount and the city western corporation business have a really stable development with a controllable risk and now the mpl ratio are lower than the average level and in the future we are confident to keep this development to keep up here the stable development of the loans in this regard and though it's based on two of our judgments The first one is about we have actually really good investment direction. We have these companies invested in the water, electricity, travel, as well as the high-speed train, et cetera. These companies have a stable cash flow and the long-term development potential. and at the same time we have a regulated operation for every loan of city investment corporation we had due diligence as well as credit management and monitoring of the flow of cash we will avoid strangely about the use of other purpose and we will also follow the best practice and By not increasing the local government debt, we can actually continuously support stable growth to compensate the shortfall and to feed and to benefit the public welfare. And this year, we will also focus on the housing projects, as well as the refurbishment of the shabby areas of the cities, as well as these kinds of projects of the city investment corporations. Okay, thank you for your answer. Now let's return back to the site and we'll welcome the on-site audience to ask questions. Okay, this gentleman, please. Okay, thank you. I'm from the 21st Century Economic Report. And actually, the wealth management still had a negative growth this year. So I'd like to ask about this situation, how it's recovered. And about wealth management, a lot of people actually try to redeem their program. So how do you interpret this and how do you look at the core competitiveness of your back okay thank you thank you thank you for your question and we pay attention to the developments of the financial business and actually as a really important part to serve our people just now like what president mentioned by the end of the june the personal customer increased to 8.6 hundred million and the overall amount is about 19 trillion yuan and the first half of the individual deposit increased by 1.9 trillion yuan personal loans increased by 400 billion yuan we are ranking the first among all the banks And actually, for the bank, in terms of the values, we are ranking the first, ranking the top among all the international banks also. And we work, focus on the high-quality development of the watch management business to serve the individuals and customers. And actually, the market functions a lot, and we can see that financial watch management of the bank actually face a lot of risk. and many experience downsides. I think that this means that in the past, we actually have an exclusive way of development. This is already the history. And when we first market the foundation, and that's your adjustment, and we cut it back up, China will put customers in the center to further enhance the innovation in the world management business to continuously optimize the experience and also to further provide better service. And there are four features we can demonstrate. The first is trust development of the business. The second is wide coverage of the customer. And also, we have a strong power of serving the customer. When we look at the business scale, we can see that wealth management amount restored and recovered. And by the end of June, the full caliber amount is about 1.7 trillion. And we are ranking the top among all the competitors. And we follow the principles to serve the customer, to help the customer. and now for the wealth management customer it's over 37 million and also capital growth and we focus on the inclusive finance and also provide over 240 billion of the benefit for the customer. And by the end of June for county level customer was management customer are nearly 40%. And when we look at the product and we actually are really professional and we continuously enrich the portfolio. and to provide a balanced low risk products to the customer and we put forward and release the first batch of stable products which were favored and preferred by the customer and in the first half we raised about 40 billion and also where the inclusive finance systems are officially built and we actually have these kinds of products still over 35 billion yuan for the kind of service level. We follow the national strategy to promote management business as a starting point to make sure it play a bigger role and provide financial support to the real economy development as in to really increase the Beijing, Tianjin, Hebei as well as the Yangshuo Delta region loans is over 90 billion yuan and we can see that the most management products in this round of transformation we still have a really good amount and it means that our products are highly recognized by the customer and the Friends also mentioned about the reduction situation last year. I believe that for the wealth management field, after the transformation, the customer will speak to us and they will select those who can provide continuously sustainable service to them. And I believe that it will be reshuffled in this industry and we provide a stabilized service to safeguard the benefit and the wealth of the customer. And professionalism as well as the stability and robustness are the core of our service and it's also our core competitiveness to safeguard the assets or wealth of the customer versus an insight the capability of insight of the market actually this is the core competitiveness and for this we actually have a strategic development and We also have a forward-saying strategy to largely support decision-making. And also we have efficient and scientific management, and we need to have a development portfolio strategy to support it. And for the wealth management, the strategy of the asset allocation and a macro and micro level behind scientific and efficient investment portfolio management and the next one is about risk control capability the core is to provide assisted help and the protection of the assets of the customer i think that for the benefit as well the profit actually we focus on a prudent policy to also further enhance the compliance and risk control capability and also use a scientific research with the analysis model empowerment so we have a flat management model to also improve the efficiency of decision making and to have a follow-up and close follow-up of the market change and for the next stage of the watch management project and i think that in the future for the back management projects are a lot of things to improve and there are lots of things to do in the future and it will demonstrate a diversified competitive structure and to The ones who can provide and meet the customer's demand will stand out. Then the next step will focus on the experts of the wealth management solution to safeguard the wealth of the customer and to use a prudent and robust way to serve the customer. and let's try to go the first line asset management institute and we will have a one pass three development strategy the one indicates the high quality development and for the worst management business we will help the customer to actually maintain or increase the value of their asset before they improve their business and benefit to realize a high quality development provide high quality services On one hand, we need to pay more attention to the inquiries of the market. And in terms of the product, we need to compile the market situation to have a reasonable arrangement of the reason and type of issuing and placement. And also, we need to look at the internal circle. We will actually allocate the right products to the right people to also set the right expectation to have a reasonable delivery, to avoid deflation, to have a better cooperation with the customer. On the other hand, we need to follow and focus on the quality. And with this background, we also... have known that wealth management customer is really hard to accept the situation. So for the wealth management, we need to also provide a good support to the customer. And we need to use a scientific way to further improve our level, to accompany the customer, to deliver the true value to the customer, to further improve their benefits and improve their happiness. For the 1 plus 3, the 3 means to build core support. And on one hand, we need to build a specialized talent team. And the wealth management, we need to help the professional people to do the professional things. we need to work on the professionalism to build and cultivate the talent to focus on the investment management as well as the marketing as well as the scientific research scientific technology managers group and to fully develop the comprehensive operational advantage to first upgrade our product system and also to further enlarge the supply of the first batch of loss management product to meet the demand of investment of the customer and also we need to further enhance the agriculture rural areas of Burma as well as wealth management especially for the senior citizens service and third part is about to provide a professional service capability and to further improve the inclusiveness and coverage provide a wide foundation and we will continuously deepen the transformation to have a technology to empower the whole range of service to provide high quality management and to make sure it's more inclusive and covers a wide range of public. Also, we provide a customized service, a tailor-made service. And for the high-end businesses, they are really fast. And for this kind of customer, its overall amount is about 2.4 trillion yuan and actually it's increased largely by profits compared with the previous year and i think that that actually this is a open platform for the asset integration and actually wealth management is important and for the wealth management and the capability to serve the demand of the customer also drive the assets allocation as far as the service capability. In the future, the wealth management will continuously consolidate and to further enhance the comparative advantage and also to make sure we can also continuously improve the capability of service as well as the capability of asset allocation. Thank you. Okay, now we will welcome the next audience to ask questions.

The gentleman in the first row in the middle. Hello. I have a question about inclusive finance.

And I know Agriculture Bank of China recently largely increased the amount of inclusive finance coverage. And I would like to ask a question about inclusive finance. When you place an issue with these products, what's the major field? And Because with such amount, you must have also some innovation. Please also share some of your innovation. And in the future, will you keep such a fast-growing pace? And people also pay attention to the asset quality. How can you keep a good level of asset quality?

Okay, thank you.

I would like to welcome Mr. Liu to answer this question. Okay, thank you for your question. For the Agriculture Bank of China, we serve the real economy. We will focus on it and also focus on the SMEs as well as the farmers, as well as the individuals. and continuously to improve the placement of the inclusive finance and credit to further enlarge the coverage to further improve the market entities finance service accessibility and we can see that by the end of june according to the central back collaboration the inclusive finance balance is about 1.3 trillion u.s compared with the beginning of the year it increased by 700 million with a growth rate of 29.5%. According to the collaboration of the regulator, the balance is about 2.3 trillion yuan. And they increased by 50 million yuan compared with the beginning of the year with a growth rate of 30.3%. And for the customer amount, it reached about 3.2 million yuan. accounts and increased by 740,000 compared with the beginning of the year. And for the ratio of the loans, it's about 3.73%. And compared with the last year, it reduced by a dozen of BP. And this is a busy situation. And next, I would like to share with you a few points that you care about. First one is about for the inclusive loan. And it's about the field on where we place these kind of loans. And ABC actually follows the policy of agricultural areas and farmers inclusiveness and to push this as a key link and key areas and a major battlefield of inclusive finance. And we will play our role of serving the agricultural areas and farmers to support the county level and to fully play our potential to continue to support inclusive finance. to support the revitalization of rural areas. And for the agricultural areas and farmers at the county level, this is actually the major, one of the major increasing point of the inclusive finance by two, Agriculture Bank of China's inclusive finance loans amount of which county-level inclusive loans has a balance of 2.6 trillion yuan, increased by 47 million yuan and account for 62%, and the increase amount is about 63%. And this is the first question. The second question is about business model innovation. And I can answer it by two aspects. The first one is agriculture by continuously deepen the digitalization of inclusive finance. And we leverage the big data, artificial intelligence, this kind of technology to provide support to the inclusiveness industry. and SMEs to have diversified the precise portrait of them and also for the county level and for this kind of production line. In this aspect, we actually focus on it to meet the fundraising demand of the market entities and the same time continuously complete the online SME customers the exclusive service platform to provide See? appointment, surveys, opening accounts, credit evaluation, the management and the process of the loan. And we provide one-stop service to them for SMEs and micro-companies. If they don't have an accounting, agriculture backup time, they can also go to the inclusive finance station to apply for the service online. So this is about really convenience as well as accessibility of finance service to them. And on the other hand, we also play our role of the wide coverage advantage, play the advantage of wide coverage to build online, offline, combined service, coordinated service with a digital method. We further empower the operation of the network to further improve the inclusive finance service capability of the to 22 000 outlets of us and also for the resource that for at the resource management capability based on this address we bought 200 ones to cover the high-tech supply chain manufacturing industries we have these kinds of network to serve smes and we built the network to focus on the inclusive finance to provide a specialized service to micro-companies and SMEs. And for the increasing amount of the inclusive finance, I would like to focus on the We think of economic development as well as a vulnerable group to further enhance the placement of the inclusive finance and to further optimize credit structure and consolidate the inclusive business foundation and we need to make sure that inclusive finance increase in amount is higher than the average of other loans of our back and to make sure in the finance industry the reform as well as development results are more improved and fair to benefit a wide range of public and and the last question is about the asset quality agriculture back of china we follow the whole process risk control concept and to utilize the big data as well as artificial intelligence technology to further monitor the risk identify the risk and deal with the risk and for the inclusive loans we have a risk control and for the inclusive loans the mpl ratio are controlled in a really low level and in the future along with the economic recovery of the country and the sustainable development. The micro-companies and SMEs, their operational situation will be further improved. I believe that inclusive loans of ABC's overall quality will keep a stable development. That's all. Thank you. Okay, thank you, Mr. Zhang, for your answer.

And please continue with your question. The lady in the third row in the east region. The floor is yours. Hello, management team. Hello, everyone.

I'm a journalist from the Wenhui Bao. And I noticed that the asset quality is really good and for the drop, the NPR ratio. So how do you look at this? And what's your take on this? And what's the reason for the improvement? And also now we have a credit expansion trend. And what's our expectation towards the asset quality in the future? And how to balance the faster growth of assets as well as risk control? Okay, thank you. Now, I would like to welcome the Vice President to answer this question. And I would like to welcome Mr. Deng to answer this question. Thank you. Thank you for your organization's concern about asset quality. By the end of June, NPL ratio is about 1.45%. And this is actually reaching the record. And to tell you about the detailed number to validate it, And we can see we have a small pressure of rebounds. And the response Overdeal rate is 0.9% and also decreased by 0.09% compared to the beginning of the year. And for non-performing rates, actually for the legal person's loans, it's about 1.9%. Younger year drop is about 1.07%. And in the key area, we kept really stable growth and stable development. In terms of the retail industry, the personal consumption, loans NPR rate is 0.99% and reduced by 0.06% and the personal loans actually the NPR ratio also dropped by 0.08% and company loans actually NPR ratio dropped by 1.04% compared with the beginning of the year and we can see we have a really balanced performance and now for the provision amount is nearly 90 million yuan and it's about three times of the NPL loans and the provision coverage is about 1.04 percent and it's really good level and about your question about future expectations towards the asset quality we're confident to make sure the asset quality kept a stable level there are several considerations and the first we'll look at the macro economy China's macroeconomy have strong resilience and there is a really good trend for its future. And as future policies issued, we will have a strong recovery as economy and which actually provides a good support to the asset quality of us. The second credit structure are continuously optimizing, especially in the key link, as well as the underdeveloped region, we have a higher percentage. also we have well balanced assets and as we mentioned in county level the loans increased amounted over with an increase rate of 14% and higher than the average of other loans. And when we look at our own work, we continuously improve our credit management to further optimize the credit risk control capability and to further push the reform of credit application mechanism and to have a good management of the source as well as a continuous management after issuing the loan. And that's the reason why we can keep a good performance in this aspect. And also, I hope has to further support the future stable development for the quality. And how to keep a fast growth and how to balance a fast growth as well as the good quality, good asset quality. I believe this is all the backstripe to achieve. And we absolutely have a really good balance of the two. I think that our measures, firstly, is about, in terms of the direction, we confirm to the demand of national development and also confirm to the national policy, support the rural revitalization, green industries, as well as manufacturing, as well as the public wealth industry. And in terms of the project screening, we follow market orientation and also to have a good management of our policy. to strengthen the long-term forecasting forecast and evaluation for the customer and also we focus on the risk control and especially for its management for different branches to have a risk screening pressure test and to also have screening of the potential risk customer to also have good management of non-performing loans. And also in terms of the digitalization, we further improve the digital management to push the reiteration of the models to use technology to further optimize our capability. That's all. Thank you. Thank you. Now let's move the floor to the online participants. Now let's welcome the staff to arrange the online questions. Hello, please ask your question. Hello, I'm from UBS. Can you hear me clearly? Yes, no problem. Okay, thank you. And thank you very much for giving me this opportunity of asking questions. I would like to ask a question about rate. And about the interest rate differential, I believe that the drop of differential is really an issue for the whole industry. And for the second quarter, compared with the first quarter, it dropped further. And I would ask that what's the major reason or driving force of the drop of interest rate differential? And for the second half, what's the future trend? further drop or try to avoid the further drop of interest rate differential okay thank you now it's welcome the vice president to arrange the answer okay thank you for your question and i will answer your question now where is the apricot back of china in the first half where is the interest rate differential performance this year It's a macro policy under the guidance of macro policy. the LPR as well as the interest rates have been down regulated. And actually, the market situation is also like this. And so the agriculture back of China will continue to give concession to raw economy continuously. And then the first half, interest rate differential is 1.66% and dropped by 24 BP compared with last year. And this performance compared with overall trend in the industry is consistent. Among which, the ones with big influence is about several factors that have a big influence on us. The first one is the LPR drop and was giving concession to the real economy. And the loans ratio is 3.87%. And compared with the last year, it's dropped by 22 BP. And the second one is about the bond market interest rate drop. And the rate is 3.32%, dropped by 4 BP compared with the previous year. And the second one is with the rate hike of Federal Reserve, the foreign exchange rate increased, and actually the debt ratio increased by 1.94%, compared with the first half, also increased by 10 BP. So these three reasons cause this decline. and also cause a drop of industry to differential for agriculture back of China in the first half. And where it's a trend of the next step, I think comprehensively consider the trend of economic recovery in China. the monitoring and regulatory body will try to reduce the cost of fundraising for the real economy. And this year, we, for two times, down-regulated the LPR.

As well as, next step, later we will face the adjustment of mortgage loans.

So we predict that the interest rate differential of back industry in the second half there saw some pressure of downward trend.

So in the next step, as you ask what aspect we can stabilize the interest rate differential.

I think for this question, I can basically answer questions in three aspects. The first one, the second half will continue to work on the rural revitalization to provide high-quality financial service to these industries and have forward-seeing adjustment and to guarantee a reasonable interest rate differential to push the circulation of the real economy. And we will do many following three aspects of work. The first is continuously improve the credit structure. optimize the credit structure to further enlarge the county level farmers inclusive credit placement and also continuously consolidate the individual loans advantage increase advantage and in the overall amount structure price and risk we can have a really good coordination to realize a good revenue of the assets The second is to have coordinated development to also have a precise management, precision management of the loan pricing and the ratio have been improved recently. And actually, it will play a positive role for the future. At the same time, we will further increase the management, improve the management of low ratio loans. To avoid the risk and manage the risk. And the third one, agriculture back of China seek to the deposit service to provide a guarantee for the real economy service. By further enlarging the customer base with digital management, we can further build ecosystem and to accelerate the transaction-backed business and to help us to further classify, improve the capability of customer classification to make sure we can close the loop of the capital to actually get more low-cost settlement capital. And also at the same time, actually, with the market orientation of the adjustment, I believe the pressure of deposit will further be eased. And we have the confidence to maintain the comparative advantage of the deposit ratio. Okay, thank you.

Now let's return back to the audience on site.

Let's welcome the lady in the first row to ask the question. Okay, thank you. Management team. And to serve the agriculture industry is a mission and also it's a comparative advantage. And also according to the national policy of the guidance of the financing policy to support agriculture development so what's your future policies on this regard okay thank you for your question i would like to answer your question in two aspects Firstly, for Agriculture Bank of China, we will follow the national policy related to the rural revitalization to serve the rural revitalization as put it as our top priority to help with agriculture consumption rural areas consumption upgrading and to further improve the county level core competitiveness and also to and also For the overall business of your revitalization, we have an overall introduction already from the vice president. And in the future, we will focus on three aspects. And it can be concluded at 3 trillion. The first is in the first half of the county level, loans increased by 1 trillion yuan with a balance of over 8 trillion yuan compared with the beginning of the year, increased by 13.9%. And they increased higher by 6.5% of the average. And also, compared with the beginning of the year, increased by 1.2%. It means that the county-level loans, actually, we are releasing the potential. The second training is about farmer loans balance, reached 1 trillion yuan. And compared with the beginning of the year, increased by 33.5%. higher than 23 percent standard average and serve farmers about 5.8 million and for the full mean debt balance it's actually increased by 15.6 billion compared with the beginning of the year with a growth rate of 30 percent and also We cover over 30,000 farmers and accounts, and it actually demonstrates our policy of serving the agriculture as well as the farmers. And also we provide diversified financial products to meet the diversified demand of the farmers. customers and amount of rates the county level deposit increased by 1.2 trillion yuan with a balance of 12 trillion yuan and this also help us to serve the strong in agriculture policy and to provide a source of capital and we also strongly develop as a county level rural revitalization business as well as wealth management as well as insurance business to support the wealth management for the rural areas and also the agriculture back of culture follows the beginner's mind of serving agriculture areas and farmers and to further put the finance supported to the county level as our priority we will further enlarge our business in this regard to push the county level business quality environment and the first one we will build more um there are products related to agricultural areas and farmers now we have over 200 specialized agricultural areas farmers products to meet diversified fundraising demand of several areas the next step will continuously increase the products marketing and to build the rural areas support and to build the star products for rural revitalization and to make sure our products can improve to a higher level and to actually build the online loan service. And also with the new demand of a county level customer will continue to give us and develop and optimize and complete the product system and also we will serve the new innovative model of revitalization we will have a system that was based on this model we will explore the new models we have multi stakeholders coordination and on the other hand we will work with the researchers to test what's leading companies in your areas to have close cooperation with them to jointly explore a comprehensive business model of your revitalization and to support new and high-level customers of jewelry and also we will build and attract new customers in this drive to build over 10 000 of our credit village and the credit system to accelerate this process and also in digital village as well as the cloud platform we have over 9.96 thousand customers settled and in 2,000 counties we are operating and in the future we will further work on the construction of a digital village and cloud platform to have the three assets management consolidation and e-tweak as well as the agriculture production custody service to also provide according to the specialized agriculture rural areas scenarios to further work on the rural areas to build the new financial service scenarios for these customers. And that's all from my answer. Okay, thank you. We'll continue with the on-site question. And the gentleman in the middle area, the floor is yours. Hello, I'm from the Sunshine Asset and I'm really glad to have this opportunity to ask questions. And I would like to ask a question about asset capital adequacy rate. Do you have a detailed target about it? Or do you have some future actions to further improve capital adequacy rate? And whether this management plan will influence the future dividends? And also please allocate the answering. I would like to welcome the secretary to answer this question. Okay, thank you for your answer. Thank you for your question. Indeed, with the agriculture back of China to continue to support the real economy, in the first half of the year, the capital adequacy rate dropped a little bit in the first half of the year. Now, the capital adequacy rate is 16.25%. However, in the capital efficiency as well as the internal external resource compensation, we are making improvement for activity and for the marginal capital consumption is dropped continuously by optimizing the capital amount as well as optimizing the structure in the first half. The personal loan business, the increasing amount and increasing rates kept the top in the industry And at the same time, we first increase the national bond as well as the low risk weight and low risk part of the business and to further drive and control the risk. And they dropped by 1.4% compared to the beginning of the year. Now the ratio is 57.2%. The second one is about internal assets and resource compensation. We have upward growth and can see that's a wide percent when he introduced the performance he mentioned that over the past year uh agriculture back of china showed really resilient performance and the profit is about 13 130 betting with the increase of 6.9 percent and net profit acceptable for the We will further use all of these to further consolidate our capability and power. And also for the external compensation, the first halfway issue, the tier 2 capital bond of 70 billion and increase the adequacy rate of 0.3%. And last week in August 21st, we issued 40 billion of perpetual bond with the adequacy rating by 0.18%. And for the asset management target, it's about compliance, reasonable and adequate capital adequacy rate. For the compliance, it means that it meets the regulatory requirements. And compared with the beginning of the year in the regulatory body, when we ask for their advice, by January 1st next year, we will adopt a new commercial-backed asset management method. and the Agriculture Bank of China will follow the requirements of the regulatory body to have a plan to a key step to follow the new regulations and high level to effectively express this philosophy improves the risk management capability. And according to the management regulatory requirement for the tier one, as well as the adequacy rate is about 8.5%, 9.5% and 11.5%. And now the adequacy rate of different tiers of capital is confirmed to its regulatory requirements. And secondly, it's about to have further improvement of the capital utilization rate. By serving the high-quality development of the economy, we will continuously improve and further tap the potential of the capital and to also deal with the project not compatible and to further have the assets distributed and allocated to the most needed area to make it sure we have an appropriate match to meet the long-term development requirements of the SPAC to help to avoid the risk, but we will not blindly strive for a high capital adequacy rate level, and we will serve the real economy, meet their demand, and based on the internal capital composition, we will comprehensively think about the requirements But the regulatory body and to think about various reasons and elements to use a scientific way to also sit on this side and issue a plan and to balance the meetings requirements as well as cost efficiency. that the investors they actually strongly pay attention to the dividends of the public listed companies in fact since we are public listed we always followed the philosophy of using cash dividend to return and benefit the stakeholders and we have a lot of investors and stakeholders they can jointly enjoy the benefit of development and of our back over the past decade the annual revenue of the stock of abc reached just 6.3 percent and accumulated dividend issued is about 76 million and we had 15 million fundraising in the IPO and according to The level of 2022's dividend in the A-shear and H-shear, the dividend ratio are 7.6% and 9.1%. This is about the dividend yield and you can see this is a high level of return. and the return have been continuously improved much higher than the national treasure bound as well as other wealth management products and till now since our IPO agriculture back of China's dividend ratio and the rate of a dividend is over 30 percent and with some hypothesis model. Some people try to understand this as well as the capital adequacy rates impact on the dividend. Actually, this is not enough and we recommend you to look at it in another way and in a more reasonable way. I think that according to these facts, it's a stable dividend. We believe it's stable dividend in the future and when we look at the revenue of commercial back it's mainly used for the dividend as for as a compensation of the asset and capital and we can see the leverage effect and also we will use it to benefit the stakeholders now also the increasing amount it's so stabilized but with the recovery of the economy and the localization of supportive policies i believe its future is really promising and also for the provision coverage it's now about 87 870 billion, so we have solid foundation. Then we look at the capital. So core tier one capital's adequacy rate now, it's 10.4% in the future, and they're just still not dreaming to improve. And on one hand, we see new regulations.

We forecast that our risk asset will decrease.

It will further improve the adequacy rate and the risk-weighted assets account for 57.2% of the overall asset. And this indicator, we think that there's some room to improve and optimize. And it's also benefited to the stabilization and improvement of a tier one core tier one capital we will think about this comprehensive view and balance the adequacy rate has for us as a dividend to further improve the dividend and create more values to our stakeholders thank you and now we'll continue with the on-site question now let's welcome the lady in the first row on the right hand side hello i'm mommy and recently we issued a series of policies and the consumption demand was your take on the future trend of consumption demand and what will be what kind of future products and service we can provide to meet the demand and also for the adjustment of the mortgage loans rate and what's your take on this and what's your future prospect and this is actually two questions the first one is about the consumption the second one is about the adjustment of the mortgage loan rate And now I would like to have a vice president to allocate a question. I would like to welcome Mr. Lin to answer this question. Okay, thank you for your question. Recently, we predicted the recovery of the economy and also the macro policies will play the role. This is the upward trend and consumption will further drive the economy. And we will follow the deployment of the central government to serve the enlargement of the consumption. And when we look at the retail industry, it's also really upward trend. And all speaking, it shows actually four features. The first one is in our bag, we follow the personal loans. We prioritize personal loans, individual loans. Also, our president already mentioned this, and for the inclusive finance, as well as consumption loans, in rural and urban areas, we will focus all of this, and we will build a comprehensive system with the talent to further have the marketing and to make sure we make contributions to serve the recovery. and the retail credit increasing amount are taking the lead for three consecutive years and we have enlarged our customer base step by step and we will continue to improve the credit placement as retail loans balance is over 7 trillion yuan and increase in amount is about 400 million yuan which is a higher growth of 5.7% and actually compared with the rest we actually contribute to 35% for the mortgage loans personal consumption or personal loans and credit business we had actually a faster growth So this is about the current situation. And the second is about we prioritize the personal consumption service and by deepening the stabilization of economic recovery, we meet the market demand and we have a stable growth and that's for progress in the stable situation and to transform, upgrade the individual consumption laws. And to embed the consumption scenarios, take the consumption demand as a basic to serve the cultural tourism, electronic products consumption, green consumption, et cetera, to fragile natural coverage. and also we follow the demand in terms of the loans coverage it's payment terms so we actually have a flexible adjustment to tailor made the product to meet diversified individualized demand of the customer research we will continue to further improve the and support the automobile industry the nev industry as well as to push the new energy vehicles to the rural areas and to help with the home building of the rural areas and also to conduct a series of marketing activities to cover the online consumption supermarkets different scenarios to attract its active users and customers and also we work on the customer classification to have a precise customization and precision marketing And in the first half of the year, the personal consumption loans balance is 900 billion, increased by 70 billion. And the increase amount is about 16%. and thirdly we will focus on the technology empowerment online and offline we have two channels integrated to pursue efficient development for online it's learning about a digital transformation we will push the digital finance and to build the digital service provides a comprehensive one-stop service and solution to make sure the customer enjoys the convenience, to let the data empower them, to make sure we can further improve the convenience and accessibility of the credit. And also, 个人一代 and 汇农一代 production line will be focused. And for 个人一代's balance, it's about 1.04 trillion yuan with an increase rate of 21 percent. Huanong Yi Dai's balance is about 1.2 trillion yuan with an increase rate of 46 percent. And we will further work on the startup products and give a report to Huanong Yi Dai after two months. It actually has a present about 30 billion yuan. It's well accepted and preferred by the customer. And for offline, we will leverage the network advantage of ABC in 20,000 workers. As in China, we will further place and enlarge the retail credit sector. And also, we have over 20,000 pilot teams in rural areas to serve the all rounds of life for the rural residents. to come into the rural areas as well as the rural communities to provide the customers with professional and inclusive financial service. And with the research, and we continuously optimize the system and build the offline loans, and to make sure that if you come to the back station for one time, you can accomplish the whole process of issuing the loans. In the past, I think you come to the network for three times, and now you can accomplish all the process with one time. And first, we will serve the public to benefit the public. On one hand, we will also help to give the concessions and also the... discounts in order to reduce the fundraising cost. And for the mortgage ratio, it dropped by 20 BP compared with the previous year. For the newly issued loans, it dropped by 26 BP. And for the personal consumption loans, it dropped by 42 BP compared with the previous year. On the other hand, we actually helped to reduce the cost and helped to improve the accessibility of the credit. And we have actually issues a business to provide the support to the individual To provide services for the individual business, we also support the online application and facilitate the process of loan application. And we also will follow the beginner's mind of serving the people and to optimize our business to further improve the innovation as well as the strong placement of the regional loans. and to support the quality development and improvement of the economy and to also show their responsibility as a big back. And the second question, I think now, in society we focus on this question a lot and recently the central bank clearly mentioned that they need to guide the commercial back to adjust the ratio of a mortgage loan and i think that this on one hand will benefit the people to actually reduce the burden of the customer's burden, and also it will help commercial banks to ease the pressure to stabilize their operations. In terms of the policy after clarify, we will follow and to set the detailed rules to prepare for the agreement to have a systematic adjustment to work on all the preparation organization work to your visit.

And as a state-owned bag, the top bag, we will

to the policy that the house are used for live in to not for speculation. And we will try to do our best to provide regulated financial service to follow the national policies. Okay, thank you, Mr. Lin. And then next, we will have the friends from online to ask question.

Please ask your question.

Hello, I'm analyst Li Li from JP Morgan. My question is related to the green finance. And we can see that in this part we have a good growth. So I would like to ask what's your advantage in green finance and what's the next step? And in next step measures and in the faster growth, how do you balance the growth and the Thank you. And now let's welcome the Vice President to allocate the question. Okay, we would like to welcome President Zhang to answer this question. We will follow the deployment, follow the policies. And we have the green genes by ourselves. And we actually regard green finance as one of our three strategies. And I think there are three features. The first one is increasing the modern speed, creating a historical height. And by June, the balance is 3.6 trillion yuan, increased by 9,900 billion yuan by the beginning of the year with a growth rate by 30%. It's a record high. And in terms of the rural utilization, as well as the rural finance, we have good integration with the food security, as well as these industries are the focus. And we integrate this with green finance. By the end of June, in county level, green... loans balance is about 1.5 trillion account for 40 percent of the overall green credit green loans and this is a record high and the third one is about the diversified service of the green fund raising will also reach a good result and we continuously complete multi-level and multi-level comprehensive service with the green security consortium loans we provide the loans about 7 170 million and First one is continuously improve the system and to also involve this into different links of the project process. And for the equal friendly customer, we have a large support. And according to the national policy, and the clean manufacturing policy we put the green development indicator in our system and for the regard it has a rationale for us to as a standard criteria for selecting customers and second question about the future development point as well as the quality I think we have a fast development of the asset, but also we have the good asset quality. In green loans, the NPR ratio is only 0.58% lower than the average, and there are several reasons or several factors. the first one is we have reasonable placement direction and this is the base and foundation of the good quality and in the sixth field we actually have the green fields the ratio the loans over 40 percent to new mean energy account for 30 percent and this is kind of industry have a really good quality of asset and the gap to maintain the help has to mention the quality of but the loans And also we have a reasonable mechanism. And for agriculture back of China, we strictly follow the sustainable principle. And we are not to have a green development for the green purpose. We strictly follow and monitor the flow of capital to make sure that money is used in the green project. and now we have a good also good risk management this will support us largely and will continuously um complete the uh doing specialized allowance policy to make sure it's more precision and more accurate the first one is deep communication to further improve our management level and based on these practice of quarterback for china we further build the Green financial standard and system are confirmed to the national level, international level, and with China's characteristics. That's all. Thank you. Thank you for your answer. Next, we'll continue with on-site questions.

The lady from the fourth row, please.

I'm from the China Bank Insurance Report. And just now you introduced about the situation of individual mortgage loans. And I'd like to talk about the whole real estate industry. The country has released a lot of real estate-related policies. So what work have we done according to it? And by stabilizing the real estate market, what are your future actions? Okay, thank you. I'd like to welcome the Vice President to allocate the questions. I'd like to welcome Mr. Liu to answer this question. Okay, thank you for your answer. Thank you for your question. For the Royal Estate business, for the agriculture back of China, we steadfastly follow the central government's deployment and policies. we will follow and the shoulders of responsibility as a top national country top national back and to proactively support the stable development of raw estate industry and also we will make adjustments and optimize the real estate loan supporting policy and to also work with the to actually support the real estate developers and to push the health and civil development of the industry and for the work we're done I would like to give you a brief instruction mainly the following aspects so first it's about the support of the new development model of the real estate to follow the new trend Well, the affordable housing, as well as the public housing, we will focus on all of these. The field benefits the public welfare. And by the end of June, the affordable housing loans balance is over $35 billion. 350 billion and the loans to support the refurbishment of the shabby areas also kept a stable growth and we will focus on the key areas as well as the quality customers. to deal with the registered rated demand essential demand as well as this kind of customer and to proactively support and satisfy the reasonable fundraising demand of all kinds of raw asset developers and another point is we will follow the 16 measures 16 items and to provide and adjustment or favorable policies for the fundraising to actually help to mitigate the risk and to help the RSA developers to have a safety sound development and also we will provide the financial service to build the coordinative system to have a comprehensive screening of the risk and regular monitoring of the risk and to follow the market trends and in compliance the way to follow the regulation to proactively support the local government to guarantee the house project delivery and to guarantee the people's welfare and livelihood and we will follow the national decision making as well as the national policies to follow and to support the development of real estate to follow the trend of the change of supply demand relations to further help the real estate industry to meet their fundraising demand and also support the quality top real asset companies to improve their asset and debt and to improve their statement and to push the stable development. And I would like to also share with you several of our key works. So first in the key link, we will support the new development model of the industry to push the real estate industry to continuously improve the support to the affordable housing public housing the refurbishment of the old neighborhood as far as the commercial housing and to support the public infrastructure building as well as the public welfare projects to largely support these to improve and improve people's living standard. And secondly, we will also provide the suitable policies to the cities accordingly. to further fast developing regions and like tier 1 tier 2 cities as well as a major city we will focus on the support of them and also focus on the interconnected region and the populous counties major counties to support the stable development of the real estate industry of these counties and also we will focus on the management of the credit risk and to have the whole life cycle management according to the regulatory requirement according to the regulations to work on the collateral to have good management of the mortgage loan placement and issuing to manage the K-Links to form a efficient closed-loop risk management. And then we can reduce the overdue issue to mitigate the risks.

And that's all. Thank you. Please continue with the questions. The lady on the right-hand side, please go ahead.

Hello, I'm joining securities. And I'd like to ask a question about the finance integration with technology. And what's your latest results in scientific or technology digitalization transformation? And what's your future action? Thank you. Let's welcome the vice president to allocate the question. Thank you for your question. I will answer your question. For the agriculture back of China, we use data as a mainstream to push the digitalization and digital transformation. We have technology take the lead to have the data to empower us to build a new model of smart back. And for the results, I can share with you in five aspects the first one is about the digital product system is being completed and for the online credit stores being further improved by the end of June the loan balance is about 3.74 trillion yuan compared with the beginning of the year increased by 23% And the CAGR over the past five years and three years is about 55%. And the innovation has never been stopped and the process has been accelerated. Like the market, like the product that we mentioned, it's all accepted by the market immediately. And also we provide digital agent, which is a one-stop service to the SMEs. And also we have the whole institution to serve the high-tech companies and the startups. For all of these, the product step and system have been further completed. The second one is about digitalized agricultural areas and farmer service. And it's been further developed. And the way that's balanced is about one trillion yuan increased by 36% and cover over five million of accounts. And for the three asset management platform in the rural areas, it's already been launched in over 1,000 counties and cover about 160,000 villages. And also, we further deepened and penetrated, and we released the 8.2 version of Jiayin. the palm back the mostly active uh user is about a 4.9 million ranking the first among all the bats and the internet high frequency scenario ecosystem we have about over 3.8 38,000 scenarios and by have a centralized digital business operations center in Hefei which will put into usage and we can say accumulatively it can help to save for the operation time of the network by over one million of hours. and we have a strong improvement of the digital risk control capability and the digital management platform have been launched and we have also the online risk control field and for the accuracy of the model have been further improved over the past years and the NPR ratio of online loans have been kept in a reasonable level And at the same time, based on the digital control center, we built a centralized operation as well as the wide coverage of risk alarm and we further improved the efficiency of risk alarm disposal. The infrastructure has been further consolidated. High-quality data assets have been further allocated for the decision-making. engine system as well as our digital system as well as the platform's basic service we've already been widely used and for the decentralized as well as the cyber security work have been further pushed and improved and largely support our digital transformation next step in agriculture back of china we will follow the and across the resource of data to take the values of data and to better push the development of the business And we will focus on those three aspects mainly. The first one is about to lay solid foundation of data resources and with a comprehensive way to also introduce the external data of rural areas, agriculture industries, commercial industries, etc. And from the perspective of the companies with the standardized construction as the starting point, we will optimize the data middle office to first improve the data service capability to serve the data usage demand of the transformation in the whole bag. And the third one is deepens the application of data to fully plays a role of data in serving the customer in credit placement and risk control in these key links to further let data plays a role and to further improve the digital operation capability and by reducing the amount of manual reports as well as the paper documents, we can further leverage data and the technology to empower the lower level to make sure in the frontier and lower level, they have more benefit of digitalization and certified we will push the online offline coordinator for operation with data as a bound to further strengthen the whole channels business coordination marketing coordination and to close the loop and connect the dots and to make sure the online advantage as well as the advantage of online and offline combined to form a customer centered online-offline integrated as well as the traffic value convertible structure That's all. Thank you. And we had such a sufficient discussion. So now we are a little bit over time, but we will still allow some time for the participants joining us online. We would like to select one question that we haven't covered yet. So now let's welcome the staff to present the question.

Now I'd like to raise a question.

And the technology and science are the major link. And where you're back, what kind of resource do you allocate for the startups? And in the financial service for this aspect, what policies or mechanism could share with us? Okay, we'd like to welcome the Vice President to answer this question, Mr. Liu to answer the question. Thank you. I'm very glad to have this question from the Internet participant for the Technology and Certificate Startup High Tech Financial Service. in the innovative financial services as well as the service mechanism to provide support to the technology and innovation to allocate more resources to support high-tech companies to start-ups to further develop and take shape. By the end of June, in AgriCars Bank of China, the high-tech companies loan balance low amount cover over 500,000, 50,000 accounts, and with an increased amount of over 20% and over a month of five training. And when we talk about resource allocation, it can be demonstrated in the following aspect. The first one is about mechanism. By building the specialized organization and team, we can further improve the specialized empowerment capability and also the service efficiency. Now in technology innovation for the active regions like Jiangsu, Zhejiang, Guangdong, these kind of regions, we already established 19 service centers, financial service centers. And in the industrial park, high-tech facilities, zones in these kinds of concentrated areas we've already established over 200 high-tech financial institutes or the branches and for a single we will further improve the evaluation of the loans in terms of the rate setting we will provide some variable policies to further help with the credit adequacy of this batch of company. And then innovation, we have the order-based transaction and also the revenue conversion expectation and also build innovative model to provide high-tech companies with a good accessibility and provide diversified products and to provide favorable policies and differentiated policies in all the aspects. The first one in terms of the innovation, innovative products aspects, we forged the specialized products and we have the investment and the loan combination, online support, government, credit company, credit combination, these kinds of proprietary products for the high-tech company. For the startup high-tech companies, we delivered the we work with the equity investment invest equity investors to combine with them and for the micro companies we also have the coaching e-die product for them and the first aspect is about the equal service we benchmark with the high-tech industrial development zone to combine the strategic emerging industry cohort to start with a point to cover the whole area and to further improve industrial chain supply chain downstream and upstream integration to further improve the loan accessibility for high-tech startups. and in equity investment we integrate and activate the external resources and to allocate all the elements and resources to also leverage the role of media and intermediary and by doing we've already talked with over 80 investors including insurers the asset management pe the national investment platform p etc we also work with the equity investor investors to also work with the financial consultants evaluation agencies and to organize a service consortium to provide the comprehensive service the next step agriculture back of china will joined by seven expected to conduct our service So that is about new customer, new structure, new policy, new product, new guarantee in these aspects. We will work harder. and to further improve the match and the benchmark with to provide the adequate service to the high-tech company to make sure that we can actually support the development of this company to build a credit system to push the high quality development of this industry And to put a long story short, we will do the work in the four aspects. The first one is to further complete the service system to improve our operational capabilities, credit service capabilities, price competitiveness to serve with the high-tech companies at different stage and with different fundraising demand. And in serving the key regions, we will continuously serve the reform, the building of the pilot region to build the ABC high-tech financial business pilot and examples. The third work is to upgrade the credit service. well to fit the future and to focus on the future repayment capability to evaluate the high tech company to build the high-tech company proprietary inclusive from exclusive credit products and systems the first one is a complete as a service to continuously develop the financial product to optimize the original product innovating policy and to meet the whole link's demand to actually have met the fundraising demand of the whole lifecycle of the high-tech companies.

Okay, thank you for participating in the ABC2023 Interim Results Announcement.

And thank you for your continued support and care of us. And thank you to the management team for your interpretation of the performance and for your answering of the questions. In the later stage, if you have any questions, please contact us afterwards. And here's the end of the 2023 interim results announcement. Thank you. That's all.