Agricultural Bank Of Chin

Ladies and gentlemen, good afternoon. Welcome all the investors, analysts, hedge funds, friends from media to participate in the 2023, the Q3 announcement of the result for ABC. And thank you for your long-term support for Agriculture Backup China. So today's announcement, we will have a telephone conference So now I'd like to give you a introduction about the team and leaders who are already meeting with their partners. They are Mr. Li Juan, the office head of the board of directors, and Mr. Liu, Mr. Wang Xiaohan, and Mr. Zhang Chengli from the debt department, Mr. Duan Xiaolei, as well as Ms. Wang Yang from the Asset Management Department. So today's meeting, we have two parts. The first part, I will give you an introduction about the situation of the performance for Q3. And the second part, I will have open the floor for questions and answer the questions that you are interested. So first of all, I would like to give you an introduction about the performance of Agriculture Bank of China. So this year, we followed the decision deployment of the CPC Central Committee in high-quality development to start with and end with a real economy and deepened reform and transformation to coordinate development and safety achieved a really good result in our businesses. And the first one, our overall operating performance reached stable and with the net profit of over $200 billion, increase rate of 5.2%. Revenue of $53 million. Amount of wage interest revenue reached $43 million. And the commission's service charge is about $6.6 million. The average revenue and return of assets is about 0.7%. And the net asset revenue is about 11.3%. And deposits is about 3 billion with a newly increased for 400 million, increased rate of 15%. The inquest amount and the inquest date, we recommend the first in our industry. The loan amount took a really stable growth, and the overall amount is about $3 billion, with an annual inquest of $3 trillion, with an inquest of $2 trillion. And we also issued the debt and loans, and the sufficient adequacy rate is about 60.2%. and the asset capabilities further improved. And the second one is about the service. So we have the increase of the loans, and now it's reached about $600 million, with an increase of about 18.1%. So with an increase of 1.57% compared with the beginning of the year, for agriculture-related loans, it's about $600 million with a newly increased... $6 trillion with a newly increased of $1 trillion, with an increase rate of 19.1%. So for the green industry, for the seed industry, the increase rate of the loans is over 60%. The balance is about... $200 billion as well as $40 billion. And for the rural area loans, it's about $1.9 trillion for the construction purpose, with an increase rate of 24.1%. It is much higher than the average of the county-level loans. And for the key cities and counties, the balance is about 370 billion yuan with an increase rate of 20%. For the farmers' loans, the balance is about 1.1 trillion yuan with an increase rate of 300 billion yuan with an increase rate of 41.9%. The balance and the increase amount creates a record high. And the third one is about serving the real economy. We are really targeted and highly efficient And we'll talk about the mid-long-term loan of the manufacturing industry. For manufacturing industry, the balance is about $3 trillion, with an increase of $600 billion, with an increase rate of 13.2%. For the medium and long-term loan of the manufacturing industry, it's about $1.1 trillion, with an increase rate of about 53.4%. The strategic new industry is The balance is about over 1.9 trillion yuan. It increased about 600 billion yuan, with an increase rate of over 54%. For green loans, the balance is about 3.8 trillion yuan, with an increase of 1.1 trillion yuan, with an increase rate of 42%. The balance was increased by 18.4%. These are all created historic heights. And for the private companies' loans, nearly increased by 16 million yuan with an increase rate of 20%. For the inclusive financial loans, it's about 3 trillion yuan, nearly increased about 900 billion yuan, increase rate to reach 38.2%. The balance, the residuals balance as well as increasing, directing the highest in the industry. So first, it's about first expanding the service. We have over 800 million customers, many of the first in the country, and we have a million customers. And also we have an efficient customer for credit card, a million customers by one million, and the corporate customers reach about 10 million customers. And the monthly active user of mobile phone bags is about 200 million, which is really high quality and fast increase. And the agriculture-related product is about 4 trillion yuan with an increase rate of 34%. And the first line is we kept a really stable asset quality. The non-performing loan rate is about 1.35%, dropped by 0.02% compared with the first half. The NPR rate is 0.08%, dropped by 0.03%. And these KPIs have been further improved. The overdue bonds is about 0.97%, dropped by 11 BP compared with the beginning of the year. And the also For the reserve ratio, it's ranking the first and compared with the end of last year increased by 1.62%. And for this is the overall introduction about the performance for Q3. Now let's open the floor for Q&A. And for this part, we have the Q&A through mobile phone. And also, we can answer the questions with . So now, we would like to welcome the participants joining us through mobile phones to ask questions. And please only ask one question. And before your question, please identify your organization. So now, let's connect the first person. Hello, if you want to ask a question, please click the star key, and then you can click the number one, and then you can wait for the, to ask the question. Hello, I'm John Shry, analyst from CICC. Very glad to have this opportunity. Just now, Mr. John introduced about the business of Bank of China. You are taking the lead in the whole country. So congratulations, all the leaders. So I have a question that is in the first three quarters, I can see that you kept a really fast growth speed. So what's your future direction as far as your placement strategy? For the rest of the month, in August and September, the data and performance are really good and returning back to normal. So it's not making situations better. So we would like to ask in the back, do you have more loan requirements? And also, thank you for your question. I would like to answer the first one. In this year, I would like to say that Agricultural Bank of China, just like what I mentioned in the first part, we follow the requirements and deployment decisions of the CPC Central Committee, and we actually conform to the macro policy focused on our main business and to get a reasonable structure of the placement of the loan. and optimize the loan structure proactively to largely improve the purpose to serve the real economy, and we've achieved a really good result. And first one is about the loan's overall amount increased steadily, and then we have a really large support to serve the real economy, like we just mentioned. Till the end of Q3, every country back of China's loan balance reached over 22.3 trillion yuan, with an increase of 2.5 trillion yuan, and with an increase rate of 13%, amount of which RMB loan balance reached by 15.5% YOY, I think that especially for us, it's worth mentioning that our growth in the past period, we actually realized all of these without the support of the policies of the personal market. And this kind of increase in growth showed and demonstrated the highlights and the performance of the high-quality development of our loan service. Second is we actually stand out to serve the rural revitalization and the rural-related loans also increase in faster speed. For county-level loans, loans increase the amount is over one trillion yen and for today it's about one point straight for the county level loans and so among all the loans it accounts for over account for over 50 percent now and which of 51 percent and for the 160 uh Major county loans actually increased by 7%, and the farmer loans actually also reached over 1 trillion yuan, reached 1.1 trillion yuan, compared with the beginning of the year, increased by 32 million yuan. And also, we have county-level loans increased by 1.05 trillion yuan, And compared with the beginning of the year, it's increased by 1.4%, over 30%, and reached over 30.1% in all the loans. And for the grants, the fees, related loans. And these are actually closely related to the food security. This part of loans, their incurs rate is over 60%. And for example, for the green related loans, it's increased by 60.4%. And for seed industries, the loans increased by 50.9%. And also, we can see that These loans are actually with a high in-course rate and much higher than the average amount of loans in the country. I've also worked proactively to serve the real economy. The loans in the key areas are highly precise, and at the aspects of stabilized growth, we will further increase the placement of county-level loans, And the infrastructure building fund raising, we invested over $13 million at racking the top. And for the inclusive loans, its balance, its increase is about $93 million. And also with its overall balance and increase rates are topping and racking the foot. And in my factory, our loans are increased by 30% compared with the beginning of the year, and 35.4%. And for the strategic emerging industries loans, actually, its increase rate is like 54% compared with the beginning of the year. And the green industry actually increased by 42%. What I look forward to the next day is about the loan demand and the increase I think that since Q3 of this year, in our country, we kept a really good recovery and stabilized economy and further collect the advantage. And according to the statistic, in the first three quarters, GDP increased by 5.2% worldwide, and it will largely lead the solar foundation for us to reach the annual targets of the GDP growth. And finance and economy complement each other. So emerging as a recovery of the economy provides a really good condition for us and provides support for the financial industry's development. So at least as China's economy is further returning, becoming recovering, and we will further gain new strength. And that's the... Credits and loans demand will also increase steadily. So in the next stage, the Agriculture Bank of China will also follow the beginner's mind as a big national bank to follow the mainstream of high-quality development to further improve the placement. First of all, I think it's the potential demand of the market entities to keep a stable growth of the overall amount of loans. Also, the second one is showing our responsibility to also work on the new revitalization of And the real economy development will be further focused, and we will actually support the key areas. The first one is about coordinative development and the safety to also grasp the bottom line of the asset quality. And I hope I answered your question. Thank you. Okay, next question, please. Hello, I'm Yan Mei-Chi, analyst from UBS. I'm very glad to have this opportunity to ask my question. I'd like to ask that for this year, actually, we have a really good share price from ABC, and also the backing industry faces a lot of challenges, but agriculture back in China still keeps a really good growth of profit, higher than the industry, and with a growth of 7%. And as far as I can see, I'd like to ask about the driving force and what is the driving force of the strong profit growth? And when you look at the whole year's revenue and profit, what's your take on that? And what are the challenges or what are the troublesome parts in terms of the economy side? Patricia, what is your idea? Okay, thank you. Thank you, Ms. Yang, from UBS for your question. For this question, I would like to ask Mr. Liu Shidong from the Financial and Accounting Department to answer this question. Okay, thank you for your question. I would like to combine with the financial statement of the first three quarters to talk about this revenue institution. And every country in the back of China proactively faces the economic recovery and coordinates the risk-benefit and to also push the stable development of the performance investments. And the first key phrase is financial performance investment. are taking the lead in the whole industry, and revenues is about 500, betting them. And with a slight drop of 0.54%, we are in accordance with the industry, and actually we can see that we also have an increased rate of our revenue, and we have a stable growth, all looking at the major driving forces. First one is about we continuously improve our situation and serve the right economy and revitalization and the credit amount kept really fast growth. In the first three quarters, the market size is about 35 trillion yuan with annual increase of 5 trillion with increase rate of 13%. And this is actually, it's about the increase of interest revenue and also for the non-interest rate revenue. And non-interest revenue, we largely developed online banks and also some surveys. And to work actively about the rate adjustment policies in CBIB, CBIRC, and CBIB. And the other asset, for example, for financial assets, we optimized the investment strategy in the first three quarters. We have the four kinds of assets with their evaluation, have a positive in-course trend, and with the growth of club betting them. And we continue to strengthen the asset control management strategy and the provision coverage kept at a high level and the loans actually also have a really fast increase. And at the same time, we also go with a settlement and the clearance in the first three quarters about 20 billion and also we have a really promising situation to serve the real economy for the improved safety but when we think about it comprehensively actually we will actually also be impacted by the fluctuation of assets and by the end of the first year, the revenue of the banks also will show downward trend. This will continue throughout the year. So in the next stage, we will first expand our channels to increase our revenue and to further push to stabilize the growth of our revenue. On one hand, we need to dig more. find more potential, and also to guarantee the coordinative development and inquiries of the instructor and so on, and also make innovations to... push the intermediary business development in a comprehensive way, optimize the investment portfolio to address the market foundation, and to also improve the increase of the non-interest revenue. And the second one is lower the cost, improves the efficiency, and guaranteeing the stability of the asset quality, and to deal with and give up the bad assets. to control the investment cost and to work hard to lower the cost and improve the efficiency to control our expenditure and to try to improve the stabilized development of the nonprofit and to provide better value for the stakeholders and better added value for the shareholders. Thank you. Okay, now it's time for the next question. Hello, and thank you for giving me this opportunity. I'm Peng Bo, Analyst at Pharmaceuticals. I'd like to ask a question related to the asset quality. And recently, we've seen a series of policies, and we actually focus on the business quality. We only have data as well as the investment. So I'd like to ask you about your trend in this respect, and also the next step in terms of the policy as well as the asset management work. Okay, thank you for your question, and I'd like to welcome Mr. Mao Xiaohan to answer this question. Okay, thank you. Thank you for your question. And now it's a market focus of the real estate industry. as well as the urban investment business and ABC's urban investment. We focus on optimizing the credit structure and adjusting the credit structure. And for the industries, the investment, we're mainly invested in the cash flow with the industries or the projects with sufficient cash flow, like a public utility as well as a highway project. this kind of infrastructure projects and in terms of infrastructure we mainly invest in the provincial level urban investment companies as well as the higher level prefectures and for county level we mainly invest in the top 100 counties which are more sound in the financial capability so in this we make sure we have a really good quality of our embossment and also the NPL rate is lower than the industrial average, so risk is under control. Next step, according to the deployment of State Council and the CPC Central Committee, we will further enhance the management of the urban embossment business and to perform the as a powerful back and to also localize the wild stop policy to work with local government and also to follow the requirements of the regulatory body to further implement our work. In terms of dealing with existing business, we will work on it in a compliant way and to make independent decisions to support local government as well as a fundraising platform to deal with their reserves. And in terms of the New Link Correspondence, we have a really tight control. And when we serve the major project in the country level, we will also have a tight control to make sure we will not add burdens to the local debt and also have an argument about the key things of the process as well as reparations. to make sure the urban embossment business can actually follow a really good path and to guarantee the credit trust and have a good control of the risk. This is about the city of Boston. For the rolling off date, we believe that it is actually a pillar industry for the country, and we still have a good foundation for civil development. So our back Actually, think to the policy that city housing is for the purpose of living, not for the purpose of speculation. And we work proactively and slowly to resolve the risks and crisis in the real estate industry to push sound development of the industry. And our real estate business had a really stable growth in this year, and our asset quality are ranking at the top. And when many days of volume were in the first line, We implement the policy requirements of the 2016 requirements and also support the housing projects of the essential demand and the improvement purposes. housing, and when we select the customer, we will select those rural legislators with sound experience and who are more powerful in selecting the project with a good presentation. We will mainly select these kinds of projects, and this part we will guarantee a good quality of our site and goals. And the second aspect we will, in terms of the structure, we will enhance our investment in the key field, for example, the public well-being, like the essential housing and the public housing project. And the third one, we work on the financial service to guarantee and support delivery of the housing to also liberate the policy tools and to follow the requirements and to make sure the housing will be delivered on time. And the next one is about further stress and due loans. it's about to do, we will communicate with companies with the repayment. And for the project, because we have a strong intention of repayment, but we lack the capital for the temporary stage, we will also arrange a plan for the delay of the repayment. And also, we will largely support the royalty market, the sound development, and especially in royalty, we'll focus on the specialized work here And in the refurbishment of such heavy areas in these kinds of key projects, we will further improve our support and to proactively support the real estate market to meet the efficient demand and also to further strengthen the project management of the real estate and to also rescue that industry to further push the development of the real estate industry. Thank you. Okay, next question. Thank you for giving me this opportunity. I'm from Morgan Stanley about mortgage. because after the change adjustment of the rate, and do we have an improvement of the early retirement situation? And also, do we have a situation of getting better in this respect? And thank you for your question. And for this question, I think I'd like to have Mr. Jackson lay down the individual Thank you for your question. That's in the regulatory body in order to further improve the situation and to invite the two parties to make improvement of the structure. We follow the concepts of financial public to provide convenient service. Also, now we have about 7 million customers. We downgrade their rate and also for the first housing loans, once we dropped the interest burdens reduced and we have actually delayed their early payment. and early repayment, and so actually the early repayment dropped by over 20% compared with the previous quarter, and some cities, some areas also have the incentives of lowering the percentage of install payment and also provide some affordable policies, and also some cities, they lifted the bans for the purchasing protests, which largely motivates the consumers and the market is turning better. Every counterpart of China will stretch this opportunity. In the first three quarters, we invested over 60 million yuan and also supported the retail credit of the back and also the mortgage loans also increase the coverage of previous quarters. And next step, Agriculture Bank of China will further follow the deployment of CPC's essential committee and make progress to while keep a stable growth and to also follow the mortgage loan policy, support the loan demand of the essential housing improvement housing to also serve the country's strategy of further expand the internal domestic demand and to support development of the oil and gas industry. Okay, thank you. Next question. Hello, I'm Zhou Jie. I'm from China Life. And my question is about the future growth points of your bank as well as the specialty business. And what's the future prospect? And you are supporting the revitalization. So how are you going to improve the profit and the revenue? Okay, thank you for your question. And for this question, I would like to welcome Dan Xiaolei from the Revitalization Department to answer. Okay, thank you for your question. The third one, the first one is about future placement. And now the country largely supports the rural revitalization in the rural agriculture-related industry. Their investments have been further improved. And this largely helps the agricultural back of China to penetrate in this industry to serve the rural revitalization. Hawaii has a huge stream of investments as a new round. Now we have the movement for the improved capacity of farmland, as well as the seed privatization, the improvement of the salt land, and also improvement of rural areas as well as housing situation and second one is about sufficient consumption amount and this is disposable income of rural areas increase faster than that of suburban residents and the country further improved the U.S. commercial system of voting and to also have the bulk commodity as well as like automobiles, the home appliance to reach more U.S. households. And also there's a releasing of the dividend of the reform and with the deepening of the reform, the new elements are further emerging. and for the rural tourism, as well as the hotel, rural hotel business also largely improved, and also the rural infrastructure has further improved. and the operation and the service level have been further improved as the rural economy developed really fast. And in the future, in the next five to 10 years, the investment of all the amount of rural areas are over $15 trillion. This will actually provide really good foundation and luxury for the placement for the future. So the second question, how to leverage the county-level financial programs Advantages for further improve the profits in Germany. The first is we need to differentiate the advantage of the finance to have more money flow back to U.S. and now we have more subsidies. And the Agriculture Bank of China will also place a direct advantage for county level to take over to work on the supplemental service and to provide more contributions with added value service. And the second is about leverage advantage of the asset side. We will further improve the deployment of investing in rural areas and further improve the placement and to make going through the safety as well as the rural area development and the farmers' production, consumption demand. And of course, Monty has talked in the future about or continue to improve the placement in the rural areas to further a solid foundation for the future development. And the third one is about to leverage the advantage of a rate gap. And we will follow the policy of decreasing the service charge and at the same time, we will further improve the efficiency of the county-level businesses. This is benefited from the asset data structure of rural areas. It's really different from that of the country in the city level. This is an advantage, and also this will help with the whole back to revenue and the profit first, and also it creates a precondition for the further improvement. And the Agriculture Bank of China will further improve the risk control management of rural area businesses. leverage big data AI technology to further promote the on-site plus off-site service model and to further expand the business to address the issue of high costs and high risk to further lower its operating cost and to ensure its NPO rate is remaining at a low level for its county-level business. Thank you for your question. Okay, next question, we would like to make a small change because after October 20th, we released the announcement for hosting this meeting, and we also collected the questions from the public. After a collection of questions, the investors mainly focus on the new regulations and the dividends. They are just about these aspects. So, to detail, the capital new regulation will be coming next in January 1, 2024. And what's its impact on the adequacy rate of small banks? At the same time, the dividend of the Cultural Bank of China, will it change and will it be adjusted? And we like to also have a Q&A and collect the questions and answer these questions we collected from our faculty. and we would like to welcome Ms. Sun Li-Chien from the BOD office to answer this question. Okay, thank you. I'd like to answer the two questions. The first question is about the capital new regulation's impact on the capital adequacy rate. Also speaking, this new regulation demonstrates the integration with international standards, international practice, also shows the quality and it helps the commercial to further be motivated to serve the real economy, further improve the risk management level. and it will come in first by the next year, so we are acting proactively to prepare for it. After it is coming to first, the adequacy rate will be further improved. According to the current management, by the end of September, Core level as well as overall capital. So, adequacy rate is 10.4%, 12.6%, as well as 16%. And according to the forecast after the new regulation coming to force by the change of adjustment of circular precision. and meet the requirements and our assets will drop and the other costs will be at different levels or will increase to some extent. And I think the question is about the dividend. We all know that after the IPO, every country back in China has a high level of the dividend ratio. It's over 30% every year. And we have about seven of the dividend. And it's about five times of the IPO dividend. and let the shareholders enjoy the benefit. And when we look at the dividend of 2022, A and H shares, dividend rate is 7.6% and 9.1% for the high in benefit and high in revenue. And when we look at the three years, A share, H share, the three years average dividend ratio is about 6.6% and 8.5%. It is actually a really ideal investment target in the long run. We're looking at the future. We have a really solid foundation. And here there are many three assets. The first one is October 2020. The supervision actually asked for advice, regulatory body asked for advice, and they require the companies to issue more dividends to stabilize the investors. And the second, for the new regulation, it will help agriculture back to for them to set the cost rate, and also the margin of the Tier 1 capital will also improve. And also, we have a really stable asset. As a dividend, we have a really good foundation. I'd like to take also this opportunity to thank all the shareholders for their support and organization of Agriculture Backup China. And we actually had the newly issued about 30 million shares in the We can also see that in this year in the market, we have a lot of investors invest more in our bags. It also shows our shareholders are really promising for the future of agriculture back in China. Also, it demonstrates our values. Thank you. Okay, we'll continue with the Q&A, and please connect the next participants. Okay, thank you for giving me this opportunity. I'm an analyst from Citibank, and I'd like to ask you a question about the shareholder. And I know that for agriculture at the back of China, we kept a really stable performance, a really good performance. And in the overall market operation, and this background, and actually with a lot of pressure, And I'd like to ask, what's your plan for the Q4? And could you give us a prediction about the trend of the basis and the gap for the future? And this question would like to have the Wang Yang from the Asset Debt Management Department to answer the question. Okay, thank you for the question. And just as you mentioned, the economy is growing. the bay and the financial side, the blood, the two are complementary to each other. And we actually, in the reasonable control and so as to give a concession to the economy, we kept really as the goal profitability and also improved the high quality development of ourselves. Currently, the real economy is in the process of recovery, and we need to provide a strong support. And I was speaking by the Q4 next year, I bet that We'll show the pressure. At the time, we have a down-regulating of the LPR two times. And actually, the lowest result is the pressure. And thinking of the year, we face the demand changing of the raw economy to adjust the change of the structure and to also further improve the precision as well as efficiency of solving the raw economy and also for the political role of the change of the interest rate and also narrow interest rate and also we will control cost and benefit from the market mechanism of the deposit interest the pressure of cost of deposit have been eased we have the confidence that we will keep remaining the comparative advantage in controlling the deposit cost. Okay, next question, please. Thank you. I am Mani Chin. I have a question for asset quality. I'm from CGP, and now we have lots of pressure. You kept a really good quality of your asset. It's not easy. So I have to ask, what kind of measures have you taken, and how do you look at the whole year's asset quality trend? Okay, thank you for your question. And with this question, I'd like to answer, and I would like to answer this question for the first of three quarters. Agriculture back continuously strengthen the comprehensive risk management to further implement the risk control measures at all types and kept a really stable asset quality. Just as you mentioned, it's not easy. and it's really not easy to achieve, and really good performance. By the end of September, the NPL rates that we had a back, as for, we had a back of time. As I just mentioned in the first part of the year, it dropped consecutively, continuously, and for the overdue trend, as overdue loans, as well as some other KPIs have been further improved, and the, For the provision coverage, kept a really stable growth, and the rankings were top in the whole industry. And for the data, all of these, we've already shared the data in the presentation, so I won't bore you with more details. And I think that in order to serve the real economy and in order to control the risk, it's actually the precondition and apprehension of time that continues to improve the prospecting effect to take a volunteer and proactive role to control risk and to deal with the biggest variant of the asset quality. Essentially, we focus on the structure, accession, and mechanism and technology, these four aspects. We further improve the risk control in these four aspects. And in terms of the policies, the national policy as well as the targets of economic social development also focus on building the powerful agriculture industry, advanced manufacturing industry, emerging industry, as well as the SMEs, inclusive finance. we will further optimize the investment, further improve the compatibility of the credit structure, and to further improve the value creation capability of the values and assets. And in terms of the accession, accessibility, we'll continue to improve the granularity and the precision of the policy, industrial policy, to further push the transformation upgrading of the industry and to also have the consistent credit policy to avoid the blind placement and the non-ordered placement and avoid the hidden risks. In terms of the mechanism, we also further hold accountability and also to bring out the risk in the key areas, have the one project, one policy to deal with the disposal of the NTL and the bad loans and to further improve asset quality in terms of the technology we built and complete the digital risk control system and to further have a digital risk control platform construction, build a multi-dimensional customer risk identification model, and to further reiterate and optimize, and further improve the digitalization and intelligence of the risk control system. And when we look out the whole year, throughout the whole year, according to the forecast, our asset quality of the Agriculture Bank of China will keep stable, I think that this is actually about the economic structure, credit structure, economic environment, as well as management capability will decide this. And we'll look at the macro environment to stabilize the growth and expand the domestic demand further plays a role. And the whole national economy kept a stable and upward trend. We had a strong... resilience and the potential to develop our economy and this effort, the trend will not change. All the asset quality, stability, we provide a beneficiary and the favorable external environment. We look at the credit structure, the optimization of it, lay the foundation for the future development of agriculture back in China. And in this first three quarters, we're going to look at the credit placement. 80% of our loans are placed at infrastructure, manufacturing industry, as well as energy industry. And our green credit increased by 40%. And the strategic new industry's increase rate is over 54%. And at the same time, the credit placement is digital structure, and the regional structure has also been optimized, and we'll look at the internal management. The agricultural back of China is quite big. Management is more completed, and the whole management chains are more completed, and the forward-seeing identification of the risk as well as the pre-efficient control are more efficient, and the risk control management capabilities are further improved. And that's all about my slides, thank you. Okay, next person, please. Hello, thank you for giving me this opportunity. I would like to continue to ask a question about the asset quality. The provision coverage is about 3.304.1%. And this is a high amount. So if you are confident about the quality in the provision coverage, will you release more provision to push the internal growth? And do you have a threshold or a target internally? Thank you for your question. And for this question, I would like to welcome the General Manager of Financial Accounting Department, Mr. Liu, to answer this question. And thank you for your question. At the end of September, the appropriation coverage is about over 300. And compared with the end of June, it's kept a stable level compared with the end of last year, increased by... over 1.5% and kept really leading in the industry. And for the risk management capabilities, it's been further improved and we will keep a prudent and a stable provision coverage policy and the provision policy and to make sure that the provision coverage level are aligned with the risk situation and to make it more detailed, And the first one is to execute the accounting rules as well as the superficial requirements. And then according to the result, we have an evaluation of the result. I have approved the integrity towards the provision. Secondly, we will further improve the asset quality management and also to deal with the risk and the key links to avoid the non-performing loans and to keep a good control of service costs. And also the third one is about to deal with the bad loans and also to deal with the bad assets, the bad debt, and to make sure throughout the whole year the credit cards keep a stable level. And that's my question. That's my answer. Thank you. Okay. Next question. Thank you for giving me this opportunity. I'm Yanxuan Ji from Zhejiang Security. And from your introduction, I noticed that the Green Bank has developed really fast for a bank and, of course, the three quarters. And based on a very high benchmark, it also increased by 43%. So it's fast to incorporate behind it what are the active investment. And the second one is about what's your future plan. And thank you for your question. And for this question, it's related to the credit. So I'd like to welcome the credit management department leader, Mr. Wang, to answer our question. Okay, thank you for your question. For Agriculture Bank of China, we continue to improve the green low-carbon energy support. Just now, our GM also gave you data. By the end of September, our credit balance is over 3.8 trillion yuan compared with the beginning of the year. We are increased over 100 million, increased mountain, increased state, create a record height. And a green credit as a main investment direction is further to serve the green development of the rural area and cattle industry and to work on the rural utilization for security as well as building beautiful rural areas. to boost the green finance center trend, which we are in revitalization. The second one is to strengthen the green industry supply. Our focus on the green infrastructure, energy, clean energy projects, energy-saving environmental protection projects, as well as ecosystem building, and to further increase the placement of the green nodes. And in the key areas, the green loans kept really fast growth and to support the green loans increase and increase not. And next step, we will work hard to follow the policies and the spirit of President Xi Jinping to further push forward the green finance and to make contribution to further build a virtual China and to further push the harmonious coexistence of people and nature. In the first one, we need to work on the aqua depressant and the heating to further improve the robotization and the development as well as the clean energy to invest largely in this effect to guarantee the green industry is developed the most. And in the second part, we will also optimize the green finance policy system and we will focus on the optimization of the key industries' credit policy to further strengthen the coordination and match of the credit policy to further improve the role of utilization, inclusive finance, as well as the economy's high-quality development. The third part, we will further enrich the green finance product supply by using the core Restoration loans and to work proactively to develop new green finance products and to further work on the green finance loans and securities and also to work on the investment businesses. And third part is about increasing the transformation with peer control capability and to work on the credit management of the high carbon energy to push the transformation of high carbon energy and to involve the ESG requirement in the whole process management of the new business. And of course, the eco-friendly customer will continue to have a one road vehicle system. Okay, that's all from my answer. Thank you. Thank you. Ladies and gentlemen, For the interest of time, the ABC 2023 Q3 result announcement will stop here. Thank you all the shareholders, investors, and analysts, as well as media friends, for your continued support to Agriculture Back to China. And I'd like to say thank you for all the colleagues for your interpretation and sharing. sharing about the performance and the results of the Agriculture Bank of China. In the later stages, if you have any questions, please feel free to approach us and to contact us with the investor relations team of the Agriculture Bank of China. That's the end of this meeting. Thank you.