Agricultural Bank Of Chin

Ladies and gentlemen, good afternoon. I'm the president of ABC. Welcome to the annual results announcement of ABC. It's a great pleasure to meet with the friends online, offline, investors and analysts, and friends from the media. I'd like to take this opportunity to express my appreciation for your support, trust, and interest in the development of ABC. With that, I'd like to present to you the management of ADC. Vice President of ABC and Executive Director, Mr. Lin Li, Mr. Wang Wenjing, Vice President of ABC, and Mr. Wang Dajun, Vice President of ABC, and Board Secretary, Mr. Liu Qing. And some of the senior management are participating from a meeting online. With that, I'd like to present to you the business performance, business strategies, and outlook for 2026 of ABC. In terms of the business highlights which you are interested in, 2025 is the last year of the 14th Five-Year Plan. It is a year for the new progress for ABC. In the past year, we... guided by the Xi Jinping thought on socialism with Chinese characteristics and strengthen overall leadership of the party and implement the relevant decisions, arrangement of the CPC Central Committee and the State Council, deeply practice the political and people-oriented nature of financial work and firmly grasp the main line of preventing risks, promoting high-quality development, made overall efforts in our aspects, providing more powerful and effective service to the real economy. achieving steady progress in business, achieving steady progress in business operations with the high effective service main characteristics of our business, our steady improvement and steady progress in the business operations, first stable profits, ABC's net profit, and operating income, continuing to maintain a double-digit growth, so reaching 292 billion yuan and 725 billion yuan respectively. the growth rate of 3.3% and 2.1% respectively, compared with first three quarters, growth rates increased by two BIP and 0.1% points, respectively, net NIM 1.28% among topping the peers, and average return on total assets 0.63%. Weighted average return on net assets, 10.16%, with a capital-acquisition ratio of 17.93%. With excellence of our business, total assets reached 48.8 trillion, with a growth rate of 12.8%. New loans and financial investment in local and foreign currencies totaled 4.7 trillion yuan. Intensity of the economy is a leading industry, and the loan growth rate was 8.9%. Liability business continues to maintain a good development, with a deposit growth rate of 7.7%. An average daily increase in RMB deposits went to first among the comparable peers. Daily deposits is consistently improving and a deviation of low confirmed currency deposits in the end of last year was 0.58% to the best among the comparable peers. We are the only bank that achieved a positive growth in RMB loans for seven consecutive years with high-quality loans. NPO ratio of domestic banks declined for five consecutive years and further decreased by three basis points in 2025, remained a relatively low level of 1.27% industry. Special mission loan ratio, 1.39%, and overdue loan ratio, 1.25%. The difference between the NPO and overdue loan ratio was a registered negative growth, which was also the only bank in comparable peers with exhibited a loan ratio lower than the non-performing loan ratios, ABC. uh so long balance is continued to about one to doing an increase of a 39.6 billion over the previous year provision coverage ratio was 292.5 percent with both indicators of their balance of loan provision and provision coverage ratio ranked among the first among the comparable peers. The fourth return is very high. Since its listing in 2010, considering the comprehensive return on stock price increase and the dividend, the annualized average returns of investors in A shares and S shares reached 12 and 10% respectively. In the next three years, that is from 2023 to 2025, the well-rich and the rich to 48% and 41% respectively. In terms of dividends, the Board of Directors proposed a distribution in final dividend for 2025 with a rate of 1.3 yuan per share and tax included. Inclusive together with the dividend already distributed in the range from the total dividend of the whole year amounts to 2.495 Hong Kong dollars per share and 2.495 yuan per share tax included. Dividend payout ratio was 30%. will have a more resilient and a more sustainable development. Last year, we did the work in the following five aspects. First, we stick to our main businesses, that is providing services for the agriculture, that is agriculture, rural areas and farmers. We consolidate the foundation for business development and improve the quality and efficiency of providing services to rural related areas and build differentiated competitive advantages and the loans from the county level regions balance reached one trillion yuan for four consecutive years and the balance reached 10.9 trillion and the balance accounted for more than 40 percent of the total loans and the balance in the county levels has doubled during the 14th five-year plan period and the deposit balance was a 14.3 trillion yuan increase of 1.23 trillion yuan over the end of the previous year and contributed more than 52% to the increase of deposits of the whole bank. Specifically, our channels for sovereign clients have been further improved among the 22,800 branches of the bank, 56% are located in county-level cities and rural towns or townships. Davis is the only large state-owned bank with full coverage of county-level outlets. In recent years, we have further shifted the focus of our service to the grassroots levels, existing the reach of our services, continuously improving, completing them. And we have 161 services, namely our physical outlets, self-service machines, mobile banking, rural service stations, mobile service, vehicles, and remote banks. to form them into one which continuously enhance our service capabilities to provide a service to every villages and household. And then last year we moved another 179 outlets to townships, built 1,742 rural service stations in which our product shelves. And also we have also made a great effort to build a product and a service system to 10 major financial areas, including burning finance and targeted poverty, elevation finance, innovative and promoted inclusive products, such as agriculture, parks, loans, technology loans, and professional farmer loans, specifically serving the differentiated, diversified financing needs of agricultural areas and farmers. And we can develop... We have developed 43 products across all industries and 208 regional characteristic products and dedicated products to cover key areas of rural revitalization. By leveraging technological means, we have continuously optimized the loan application process for farmers, actively promoting on-site and remote work mode, further enhancing the convenience and accessibility of rural financial services with the balance of the Huilong Yidai reaching 1.84 trillion yuan, a four-fold increase during the 14th five-year plan period. and grain and important agricultural products have been increased. and long in road industries for development and the relative fields grew up by 23 percent and 19.5 percent and 9.6 percent respectively and 832 property stricken counties and 160 key count counties for rural revitalization has seen faster long growth than the average growth rate of the entire bank second we sticked into the essence of finance and building on new advantages in business development by implementing national strategies and serving a real economy We insist on serving the rural economy as our fundamental purpose, seize the trend of a new and old driving forces transformation and industrial upgrading, continuously optimize allocation of financial resources while serving the high-quality development of the rural economy, also strive to promote our own high-quality development. In the 2025, the loan balance of YBC reached 27.13 trillion yuan, an increase of 2.23 trillion yuan over the end of the previous year. Among them, personal loans, inclusive loans, and private enterprise loans took their lead, exceeding 9 trillion, 4 trillion, and 7 trillion yuan, respectively. About financial investment. was 16.3 trillion yuan, an increase of 2.47 trillion over the previous year. We made every effort to serve the stable investment and consumption. With the supporting of the Finance Award too heavy, that is the implementation of the national strategy and the key areas in ensuring national strategy projects, we also are going in the direction front and acute projects are ranked among the best in the comparable industry. Increase of and growth rate of the consumer loans were also ahead of the peers. Personal consumption loans, including credit cards, have a growth rate of 9% and a balance reached 1.45 trillion yuan. We continue to strive at the five priorities of finance, promote more financial resources, invest in the productivity, growing development, inclusive finance, and provide alongside to the SMEs other key areas, strengthen the key areas and weak links. The balance of The technology finance loan, burning finance loan, inclusive finance loan, reached 4.7 trillion, 5.93 trillion, 4.35 trillion, respectively, growth rate of 20.01, 18.7%, and 20.9% respectively. A number of inclusive loan clients ranked the first among comparable peers. Total supply of inclusive finance is the largest with the widest service coverage, further consolidating the leading bank's position with the strongest sustainable development capability. In the field of pension finance, the number of fiscal and electronic social security card users rank first among peers, and the number of clients and the amount of individual pension service are also among the best in the comparable peers. The loan with the pension industry reached 23.16 billion yuan, or 108.5%. we actively serve higher level of opening up introduce a work plan to stabilize foreign trade and investment active supports the cross-border use of R&B and helps to diversify the trade markets and integrate domestic and foreign trade third is to focus and put the client first to expand the new space for business development while enhancing client service capabilities clients are the foundation of our bank It will always take client development as a fundamental and strategic task. We will press ahead with the project to expand a client base, improve service for corporate clients with a group and tiered management personal loans, improve the service model driven by digital plus model, and continuously enhance refined and comprehensive client service. Client base has been expanding, reaching 900,000. 896 million for personal clients and remaining the largest in the industry. Non-bank financial assets on AON for personal clients amounted to 24.7 trillion yuan, an increase of 2.4 trillion yuan at the end of previous year with 13.29 million corporate clients, an increase of 1.16 million clients from the end of previous year and ranked among the top in the peers. We had 609 million personal mobile banking clients with over 276 million monthly active users and over 292 million monthly active users on mobile devices, maintaining industry-leading growth rates on both metrics. The quality and efficiency of customer service continue to improve with a focus on better meeting customers' financial needs. We continuously enrich and expand our product offerings and portfolios in areas such as deposit, credit, wealth management, strength and service, synergy between commercial banks and investment banks, and domestic, foreign currencies, financial and non-financial service, and advancing the rural service project. We have been steadfast in promoting customers' rights and interests, making our customer service more diverse and personalized. We have strengthened our professional service capabilities. We have improved our employee training system, provided a classified professional training to strengthen the team on wealth management and providing solid support for our client service. Our total number of wealth management advisors have reached 119,000, increased over 6,000 from the end of last year. Fourth, we have deepened the reforming and innovation by deeply integrating business technology data. We have created a new impetus for business development. We have actively embraced the new round of technological revolution, deeply advanced construction and smart banks, intensified data empowerment and AI applications, striving to transform technological innovation, a key variable, into the greatest increment for high-quality development, making the application base for technological innovation more solid, accelerating the building of AI plus capability systems such as data, technology, security, providing strong support for the larger scale and inclusive application of AI, making the approach of digital operations more mature. Effectively reducing the burden and workload, empowering grassroots outlets to become more significant. First, strengthen bottom line thinking and strengthening the safety cushion and buffer for business development. We also take a risk management and control. as our long-stop task and a continuous enhanced professional capability in building risk management serve the ballast for maintaining financial stability we continuously improve the comprehensive risk management systems transfer for looking risk identification and enhance risk disposal response in key areas and consolidating foundation of the internal control and compliance management and third an outlook for 2026 we have confidence from two sources or aspects First, the economic performance, macroeconomic performance is stable and growing, creating favorable macroenvironment for the development of ABC. The outline of a 15-to-5-year plan have provided the guideline for development. And China's economy has a solid foundation with many advantages and a strong resilience, and long-term positive support conditions and basic trends with great potential have not changed. With the implementation of the supporting measures of the 15th five-year plan are gradually implemented, the economic growth rate will continue to maintain within a high reasonable rate. And we will continue to have the strong foundation.

This is the sort of foundation for us to make further breakthroughs. Over the past five years, we have thoroughly studied and implemented General Secretary Xi Jinping's important expositions on the financial work, and we have actively pursued this path of financial development with Chinese characteristics, and we have also expanded our product and service quality and also optimized our team building capacities and also cemented our risk control efforts. This has given us a very good starting point. Dear friends, ABC's defining feature is agriculture. This year marks our 75th anniversary. During the past 75 years of ups and downs, we have always been resonating with our national strategy and also standing in unity with billions of customers and sharing value with broad investors. 2026 is the first year of the 15th plan. and the new era calls for new responsibilities and also the new journey requires new actions. ABC will continue to strengthen our party leadership and uphold a correct view of achievements. We will continue to lay a solid foundation and contribute to the starting chapter of the 15th Five-Year Plan and create more value for shareholders, customers, and investors in all sectors of society. Next, let's head into the Q&A session. I would like to invite the Secretary of BOD, Ms. Liu Qing, to be the moderator. Now, please just give one question only, and before you give your question, please identify yourself. Now, the first question, please, on-site. The lady on my left, first row, please. Thank you so much. I'm from Xinhua News Agency. After hearing the introduction, We can see that even though the overall external environment has been quite complicated, but ABC has reaped very good operating outcome, and especially in the capital market. I'm just wondering, what is the outlook of ABC in next year, such as in NIM and also in other net profit markets? What are the main driving forces? Well, I will take that question. I have just shared with you in 2025, even though we have a very complex business environment where revenue growth has remained resilient and also operating income has maintained positive growth for two years running, where net profit has also been maintaining positive growth as well. And also, it is now on an upward trajectory for better growth. If we look this over the long term, the performance or the financial performance of ABC is quite good and also remarkable. Our net profit growth has been leading the industry for six years, and operating income has also been leading among our peers, creating new historical highs. And this has shown the growth and the bonus of the market. And we believe that the 15th five-year plan has given us even more confidence. I have just shared with you that the senior management is quite confident about better operating performance in 2026. So from the performance of the first two months of 2026, where operating income or say where overall operations have maintained stable growth and also positive trend, or physical loans increased by 1.1 trillion RMB, achieving a year-on-year growth, And NIEM has, we're saying net interest income has also turned positive year on year, which is an inflection point in the first quarter. This has further confirmed that our operating income will continue to be put on an upward trend, laying a solid foundation for the profitability across the entire bank. In the next phase, we will keep our strategic focus while providing better financial services, we'll continue to coordinate our pricing strategies while deepening or efforts to draft on cost and improve efficiency and continue the current solid momentum. And we will focus on the following three aspects. First of all, we will continue to drive the positive growth light interest income, and we also strengthen our efforts to make sure that we have a positive growth in light interest income. In terms of scale, we will continue to issue more loans and also It contributes to the real economy, and we will also optimize the structure of our assets and also strengthen refined management and improve the marginal returns of the assets. We will continue to consolidate our customer base and flexibly arrange our next efforts in driving down cost of deposits. And secondly, we'll continue to expand the growth space of non-interest income, We will leverage the consumption policies and try our best to satisfy the diverse demands of our customers and seize the opportunities of the capital market and amplify the service supply for wealth management products. On the other hand, we will also strengthen our analysis of the market and flexibly determine our trading or transaction strategies as well as the allocation of assets. different categories of assets. And thirdly, we will better control risks and costs, better coordinate development and security, and ensure that we put credit risks under control and try our best to drive down risks and costs. We will also strengthen our intensive and refined management model to reduce non-essential expenses. Anyway, we will try to achieve higher profits at better costs. So we are fully confident about the performance in 2026. So much from me. Thank you so much, President Wang. Next question, please, on the side. The friend on the right, please. Thank you so much, our senior management members. I would like to ask you a question about loans. In 2025, the credit loans has increased pretty fast. And in retail and county-level loans, we have seen very good growth. Could you walk us through the plans for, say, the growth targets for credit loans in 2026? And what are the key areas that you will focus on? Thank you. I will continue to take your question. In 2025, we have actively implemented important and major strategies at the national level. We have aligned ourselves with demands of the real economy and the overall volume of our loans has shown better structure and also bigger volume. In terms of the total amount, I've shared with you that we have a total of 2.23 trillion yuan's newly added loans. And in terms of structure, We have invested more in agriculture-related loans as well as rural revitalization services. And we have also injected greater momentum into five priorities and improving quality and efficiency. This year is the starting year of the 15th five-year plan, and in the government work report, we have a GDP growth target of 4.5% to 5%, and we also want to build a strong domestic market to achieve technological self-reliance and also self-estimating efforts. There are a series of supporting projects as well as measures for rural revitalization. Average growth rate would be roughly the same as last year in the first two months of 2026. Our economy is now rebounding, so we will seize the opportunity to focus on our national major strategies, and credit deployment or credit placement has also achieved a very good start. By the end of February, our bank-wide physical loan growth has achieved a year-on-year positive growth, and also this is a sign of good momentum for sure. or green technology where agriculture-related loans have registered positive growth, maintaining at average levels for comparable peers. In the future, we will continue to highlight the agriculture and rural areas and also farmers-related fields. We will focus on improving the large area grain yield improvement, and also ensure that we produce new quality productive forces and strengthen financial services for links across the whole food chain, focus on specialty industry and key sectors, and also big customers and important projects. We will make it bigger and better, especially in financial services, such as the issuance of farmer loans to ensure that we have stable growth in loans in 2026. And secondly, we will focus on two different areas, such as domestic demand. We will continue to lend more support to major projects on transportation and energy, ensure that we have supporting financing services for a new round of policy, financial tools or instruments. We will also align our efforts with traditional consumption models and also emerging new consumption models such as grain consumption. And we will implement the physical infrastructure policies to maintain a leading growth momentum for consumer loans. And thirdly, we will support the construction of a modern industrial system, such as we will sort out the customer list. and then cultivate new quality productive forces, step up or speed up where technological innovation to support or contribute to emerging industries development. We will also focus on industry grain transformation, grain development, low carbon and grain transition of energy and other key sectors. This will mean that we will improve the credit placement in green sectors and also the proportion of green loans. And fourthly, we will focus on inclusive SME loans and establish a work coordination mechanism. We'll continue to increase the support for SMEs. and coordinate development and security, consolidate our leading advantages in inclusive finance, and make sure that we cater to the demands of our residents in education, healthcare, and so many others. Thank you so much, President Wong. Next, I would like to ask for the gentleman on the right, the lady on the right for a question. Thank you so much for the opportunity. I know that commercial banks are under pressure, but ABC has maintained a very stable asset quality. What measures have you taken in order to manage and prevent risks? And I would like to know about the NPL formation rate as well as your key focus in both retail and also corporate sectors. So Vice President Lin, please take the question. Thank you for that question. From the perspective of the commercial bank, in the future two to three years, I think that the watershed should lie in the ability of risk management because the products can be very homogenous and also the services can also be quite similar. And even AI models can be pretty much the same in the future. But there will be definitely differences between commercial banks in risk management and provision efforts. So that's why we think that we should do a good job in risk provision and management for ABC. What did we do in that regard? Well, I think that it can be summarized in the following points. Generally speaking, it can be summarized as really doing hard work and getting our feet on the ground. ABC has placed risk prevention and management as an internal theme of our financial work. And we have been building our strong foundation and also cementing the current base for risk management. We have been quite prudent in our operations. We think that it can't say that the commercial banks are too careful or too much careful in their operations. And also, firstly, we have highlighted the role of quality and efficiency. And firstly, we have to be problem oriented. And fifthly, we have to uphold our bottom lines by integrated risk management and control. And also with a forward looking reflection capabilities, we can proactively control our risks. and ensure good asset quality overall. And just now, President Long had shared with us the overall business or the overall situation at ABC in 2025, where NPL ratio stood at 1.27%, down by 0.03% compared with the end of last year. The NPL ratio for five years running has been on a downward trend,

Well, the special mention loan ratio was 1.39%, down by one bit from the beginning of the year. Overdue loan ratio 1.25%, maintaining the lowest among the comparable peers. And the difference between the NPO and overdue loan was always at negative. And also, our credit balance of 1.057 trillion yuan and We believe ABC is the only bank with a credit balance exceeding 1 trillion yuan. And from a prudent perspective, our credit prevention increased by 39.6 billion yuan. The provision for loan loss ratio reached 292.55%, maintaining ABC at a strong risk resilient position. And in terms of the non-performing loan formation, the formation ratio of corporate loans decreased compared to last year, and the NPL ratio of inclusive retail loans has increased compared to last year. NPL ratio of the whole bank for the whole year was 0.89%. We do believe in the asset quality is well under controlled and the similar of last year and also the formation ratio of NPO has been maintained below 1%, which is relatively quite low. For the SMEs, balance reached 3.93 trillion, an increase of 700 billion from the year beginning, and NPO formation ratio, 1.54%. For the inclusive finance, where the credit cards, including rural households, which is at the key of our risk control. So if we also incorporate them, The balance of our retail loan balance loan was $9.26 trillion, an increase of $448.5 billion from the year beginning, with an NPO ratio of 1.34%. The main indicators of inclusive retail loans maintain a leading position among their peers. It is worth notable that the credit card business in terms of serving consumption, boosting development and advancing quality and quantity has performed quite well. And also our credit card loan increment or increase in asset quality are the best among our peers. And also we apply the innovation and also the systematic thinking and relative philosophies to build new management measures for the credit businesses and also further build a comprehensive risk management system for the inclusive retail business that we have done in the following six aspects. for inclusive retail business. The first one is to build a stratified marketing system and also to promote or roll out the new business models. And also have their top-level design of the head office from the provincial branch. And we have the sandbox operation at the city-level branches. And we have the template of marketing for our outlets and branches focused on local businesses conditions, industrial clusters, and professional markets, and also have a county-specific system, and also we draw a financial ecosystem map or roadmap adapting to the needs of the different areas, adapting to the local conditions, and also they're formulating credit plans. We screen high-quality customers, and we have SOP so as to change the scattered, inefficient, and passive customer acquisition model, and we build an active batch-based and a source customer acquisition business development model. And second, we adhere to the idea of... or focus on the petty loan accounts and also match in the credit line ways and the customer's demands and also expand our business while also have system control so as to enhance our serviceability or quality to the small and medium-sized commerce owners to enhance the accessibility and coverage of our financial service. While at the same time, we give up using a simple model to measure or calculate the credit line, so as to put our risk within our risk tolerance. And we take the households at our center as a priority and also build a new vision of management. We have a unified credit approval and also coordinated management. To be more specific, for the same family business, for the SME legal persons and business owners and their relatives or friends who are in the personal or individual business consumption and credit card businesses are putting under the same umbrella of management. We have a cross-line and a cross-product coordination so as to effectively prevent the under standard eligibility of the customers for certain products because for some of the products they have the differentiated threshold for the eligibility of the customers so we also prevent the overlap of the credit granting but also prevent the risk of excessive credit granting fourth We integrated online and offline businesses. We leverage on the models for the digital tools, but we are not over-relying on the digital tools. We insist on the principle of enhancing people's awareness, understanding, and also have an on-the-spot investigations for due diligence, while at the same time we enhance the businesses tax credit history private fund as well as other um third party and data to do the customer or kyc business we have a cross-check of the authenticity of our comments customers so as to ensure that the fund that they use is for their real purpose or business And we are not just following the trend. We also use Open CLAW to process and analyze the data in an automated way and to generate a KYC report so as to make our credit approval and review process more efficient. And also about process and procedure constraints and build a business mechanism. What is key here is to separate the approval from the credit granting and also we separate the roles. Because in present for some of the inclusive retail loan granting, the approval and the lending are put together. But in our practice, we insist for the online SME-inclusive loan, we separate in the amount of the business, and also we separate in the rows between the approval and the loan or disbursement so as to form checks and balances in the process of credit granting. We also make up for the shortcomings of the decisions for the models and also we prevent and they want people have to say for everything and we say no to any form of intermediary person participating in the marketing or doing the handling the business. If some of the illegal or inappropriate intermediaries or agencies participate in that, they will bring a lot of shock to the business of the bank. Six, we empower on the technology and also to enhance our risk management capabilities empowered by technologies, meaning on the model process, identification and system real-time early warning. We use UCR recognition and GPS positioning and also cash flow clearing. and AI intelligence and other technologies to improve the ability of anti-fraud. And also relying on the big data or large language model, we focus on the new loans, professional debtors, or the intermediary loan companions and other risk characteristics, consistently optimizing the risk control model before, during, and after the lending to improve the accuracy of our early learning. so as to ensure the stability of our asset quality and we will further enhance our risk management and mitigation in a more systematic way in inclusive retail business. Moving forward, we'll firmly establish appropriate attitude to our performance and do our own job well for the right purpose. We will stick to a prudent and steady risk appetite and also put the risk prevention and management as a priority. It is very promising that asset quality will continue to be stable and maintain a relatively leading position among our peers. Why we are so confident? First, we have a more profound and comprehensive full-fledged risk management control system. To be more specific, we'll have credit management, we'll have online-offline coordination, and separate the credit approval and credit granting business. And we also have unified credit management, and also to enhance accountability, we use the smart tools to have a unified monitoring and supervising system. In Chongqing, ACB set up a head office level digital risk management center for the purpose of enhance our monitoring of the early warning identification and also early check and disposal of the credit risk of inclusive retail business. And also to enhance our management overdue loans and enhance the disposal of NTAs and also enhancing the notification of the overdue or when the loans are come due. Here we enhance the Smart Disposal Platform 2.0 version and also to enhance the Dispatch Transferable Disposal of NPA, enhance the diversity, the efficiency of the diversified NPA disposal channels. Please rest assured, rest assured, though inclusive retail loans are small, scattered, or there are a lot of, or there are a lot amount of them, but we will further make a health check so as to clarify and also have an order will organize management of this type of business. And also for the risk management of key areas that has been further improved in terms of efficiency. In terms of the real estate loan by the end of 2025, Our ratio in the industry remained unchanged from the previous year, and the newly MPL has been decreased year on year. We'll continue to adhere to a household-specific policy and approach, project-specific plan, a step-up risk control for large clients, focus on key links such as funds, assets, equities, strictly managing the account per sale funds, and separating the operation from project funds. And we'll use the 16 financial policies for rules and whitelist, loan continuation. And also we will enhance or we will provide our credit support for the high quality or better housing projects. And also we'll enhance the credit measures. We will not expand our business or lendings in this area in a bland way. And also use the policies to replace the implicit debts and also we have to optimize the structure of the existing debts to lower down our risk exposure and also have a market-oriented rule-based and appropriate finance approach to increase our financing in these areas so as to safeguard and the bottom line of not increasing the implicit debt and also we will enhance our structures in a preventive way that is very important and also we will reduce the low-quality or inefficient customers, but at the same time support the building of the modernized industrial system or focus on the structural risks. And we will take preventive measures for the overcapacity. We will not do the evolution, so as to ensure the credit quality. Thank you very much, Mr. Lin, for the question. Next question, please. Thank you. And from Economic Daily, Yu Yong, my question about wealth management, the personal customer is around 896 million, which is leading among the peers and over the several past four years. Customer has had high demands on wealth management with the fluctuations, the capital fluctuation, and also people also have a demand of the capital allocation. As Michelin said, ABC, wrote out a lot of innovative measures in wealth management. Could you please elaborate more on the innovative measures on wealth management and what are the plans moving forward? Thank you for the question. Mr. Lin, please. Thank you for the question. So as an entity or a bond connecting people's savings or household savings to the circulation of economy, there is a lot of room for us to or potential for us to tap into in a wealth management. This is an important measure to understand. serve to boost China's strength in finance. Wealth management is an important part for the financial system. By developing strength in wealth management, we can help to cultivate potential capital, increase the direct financing, and also to enhance the efficiency and quality of the financial service to the real economy and the high-quality development. It also projects for people's well-being.

Next, it can also improve the residents' income Wealth management can expand their income generation channels, and it can also get the public to participate more broadly in the capital market and then share in the fruits of economic development. And thirdly, it is an intrinsic requirement for high-quality development of commercial banks. Wealth management features live capital, stable returns, and sustainability. It is an important path for commercial banks to transition from scale expansion to value creation. ABC has been people-oriented in recent years, and we placed wealth management business development as a very important priority, and we have depend or strategy for integrated and two-wing approach of retail development. And basically, it's all about customer development. So the two wings refers to wealth management and digital transformation or transition. And with our forward looking layout, we have a four driven financial development system to cement the development for operating income. First of all, we have upheld value-driven approach and also a people-oriented model. The nature of our management approach is to have an asset allocation with customer as the center. We want to create value and also provide allocation service strategies. We hope that we want to strive to become reliable, planner or say family financial advisor for clients. And another one is comprehensive service capability. By the end of 2025, the personal financial assets across the entire bank has reached the 24.7 trillion yuan during the 14th five-year plan period. The number has increased by nearly 10 trillion yuan, ranking ourselves at the forefront of the industry. If we look at the latest figures, we can see that it is now exceeding 25.4 trillion yuan in terms of assets and liabilities. ABC is a personal asset deposit and also personal loan scale, all renters in the industry. So we have the most deposits, loans, and also the largest number of customers. So we should be a very big and preferred bank for a large number of customers. And secondly, we have optimized the asset allocation of customers and integrate that with advancing five priorities. In that regard, we have created an agricultural pension financial service platform. And in ESG, we have made comprehensive breakthroughs of crossing the 100 billion yuan threshold across different product lines. And thirdly, we have achieved breakthroughs on multiple friends. In the past five years, we have seen that our LVM has currently reached 3.65 trillion yuan. And also during the 14th five-year period, the total customer volume has increased by nearly 2 trillion yuan. So all of these has put us also at the forefront of the entire banking industry. The wealth management products in agriculture sector has also exceeded 2.2 trillion yuan, leading comparable peers. And more importantly, we have created over 340 billion yuan for investors. We are also doing our best to satisfy our consumer demands and also insurance demands. In terms of premiums and their agency, we have ranked first among our peers. ABC Life Insurance and also other institutions under ABC have all maintained a leading position among comparable peers. We have also adhered to a reform-driven progress approach. Wealth management and resource integration and innovation have all followed a similar path. So we have 896 million individual customers and also 22,800 outlets. And we also have very big advantages in channels and customers. All of these have turned into the driving forces for AAPC. First, we are dedicated to create a full spectrum of portfolios to leverage the advantages of integrated operations. We need to build a multifunctional portfolio or, say, matrix that covers different diversified strategies, wealth management products. such as trust funds, precious metal investments, and more. And secondly, we have upgraded the market open platform. We have to keep ourselves open, work with third-party institutions, and improve our coordination and step-up management in scientific evaluation mechanisms, introduce quality resources from the market, and satisfy diversified and customized demands of the customers. Thirdly, we have to provide full lifecycle customer companionship at different stages. We can ensure that we provide the right services such as wealth management and also family protection throughout the lifecycle. We have to focus on developing comprehensive services for private businesses. And in this way, we can also have cross-border wealth management and also so many other options to satisfy our customers' diversified demands at multiple levels and also improve the accessibility and inclusiveness of our financial management services. And thirdly, We have been persisting in organizational driven efforts to forge wealth management service capabilities. We ensure that professionals handle professional matters. A professional team can improve our efficiency and core competitiveness, which is in investment research and customer service. First of all, we have created an open, integrated professional research system. We have also strengthened the group's investment source integration mechanism, built a multidisciplinary expert team, and gained market insights. With the forward-looking and the culture of study progress forward, we have implemented a very sound strategy for research, product introduction, marketing support, and asset allocation evaluation and final review. And we have also been insisting in reasonable expectations and qualified interactions. We know that for our wealth management subsidiaries, we require them to have realistic pricing expectations. We also worked with these joint venture financial companies. I would check their figures to ensure that we have the best delivery with our customers. This can help us to ensure that we have a sound interaction between customer and the market. And on the other hand, we also need to ensure that our team is also customer-oriented. There are many things involved in ABC's business, and our unique advantage is, of course, in San Nong or agriculture-related services. but internally we want to really interpret this service brand as um improving ourselves every day it's not that we want to just do easy work or just shout out empathy slogans but instead we want to see small improvements every day And next that we insist on precision management and stress and or structural optimization and capacity development. We have already have a professional team compromising 119,000 customer management, and 6,000 wealth advisors. We have also focused on the Yangtze River Delta, the Pearl River Delta, and emerging potential areas. We have implemented differentiated strategies according to local conditions, built benchmark, and also in a total of 500 branches, we have DENSO in private banks, and also in some wealth management centers, we have definitely ensure that there is a tiered system for training to empower their training system and also service or professional service capabilities on the ground. Sometimes we can go at bottom up, but other times we think that top-down approach is also a very effective channel. Now we have 120,000 customer managers and 6,000 financial advisors. They should be working like seeds, and they are providing services across the bank and serving our customers with their expertise. And fourthly, we have to uphold a digitalization-driven approach and let wealth management be one of our growth engines. By using digital means and intelligent approaches, we can ensure that we have online and offline opportunities wealth management coordination efforts, and a multidimensional service network. On one hand, we can improve our online and offline service efficiency, and these digital means can also empower our business, and we will continue to advance this all-channel, convenient, and intelligent platform building. And we will also make sure that we improve our capacity for all weather, around-the-clock responsiveness. We are also actively using AI. We're applying AI in different scenarios. We have an employee quiz and AI model, and we will strengthen customer insights and intelligent layout as well as... post-investment companionship throughout the entire life cycle. From the performance in 2025, we can see the great wealth management income has reached 35.7 billion yuan, and financial management fee income reaches 251 billion yuan, and we should say that this is a very big resilient market. Basically, we have shown strong resilience in our business and also high market recognition. And also, our business has maintained very stable growth with little fluctuations. Many of our joint venture wealth management companies have proper expectations for their products. So we have talked so much about what work we have done and data and statistics. At the end of the day, high quality development should be an all hands on deck effort, which involves not only counter managers and also customer managers and wealth management managers and consultants and advisors and even site tech personnel. Here, I would like to take this opportunity to, on behalf of the senior management, express our heartfelt gratitude to our staff who have weathered through many hardships and difficulties. And with their expertise in hard work, you have been fighting right at the forefront. Thank you so much for your diligence and hard work. Thank you so much, Mr. Lee, for that very encouraging words. Next, I would like to invite the next question. Thank you so much for the opportunity for asking a question. I'm Xu Yuan, a financial analyst. I'm wondering about the situation in international business. We are now paying attention to business going global and also foreign trade, especially the growth structure and also the overall layout. With a new market environment and also new customer demands, ABC, How will ABC support key foreign trade enterprises to go global, and how will this contribute to your operating revenue and also your efforts for high-level opening up? Thank you so much. Thank you so much for that question. I would like to invite President Bong. for a response. Thank you so much for your interest in international business. ABC has been earnestly implementing the decisions and arrangements of the party central committee. And with that, we have been cementing the interplay between domestic and overseas market and optimize our cross-border financial comprehensive service system. The international settlement business volume has reached about $16,400 increase of 8% year-on-year, and the international trade financing business volume has increased by 30% year-on-year. The growth rate is still very impressive. So I think that, first of all, we have been helping or supporting businesses to go global. In ABC, we have presence in 18 countries and 21 overseas institutions. We also have one joint venture bank. More than half of them are in building road countries and regions. So this has aligned with our efforts to help businesses to go global. In 2025, we have continued to to ensure that the interplay between domestic and overseas institutions is well underway. Our interplay business has reached $118 billion in increase of 13%, and we have... seen the financing business of VRI countries has reached 340 billion U.S. dollars. We will continue to focus on sending areas and ensure that this leading business in this area can go global, and we will also lend support to international cooperation projects. Across the year, the agricultural-related financing business has been handled for 69 billion yuan,

And second, we strengthened our product innovation to support the development of new firms and new models of trade. It is safe to say that in recent years, the scale of the main players in the new firms and models for trade has been accelerated, becoming an important support for foreign trade. and in response to the new characteristics of main players in the new forms and new models of trade abc has empowered with technology to innovate innovative cross-border payment products and many branches have completed the registration with a safe and obtained the qualification for a direct cross-border e-commerce collection scale of our direct cross-border e-commerce collection business ranks among the top in the among the peers and third we have strengthened implementation of a regulation or regulatory policies and we have enhanced level cross-border financial service the reform of foreign exchange business development is an important measure for the institutional opening up of financial sector of china ibiza has continuously promoted the reform and foreign change business development expanded scope business volume and a customer base account for a large proportion of the whole bank, approaching to 40%. The ability of promoting facilities and preventive risks has been further enhanced. And also, we're having supportive international use of RMB. First of all, the RMB settlement volume reached 3.82 trillion, an increase of 8.7% a young year. ABC will combine the relevant arrangements for expanding high-level opening up in the 15th five-year plan period continuing enhance our support for the rate economy on foreign trade and build a cross-plus loop for cross-border financial service. and to serve the high-quality joint development of the Belt and Road Initiative, and we will optimize the linkage mechanism at home and abroad, enhance supply of cross-border linkage products, and strengthen financial support for key overseas investment projects, and introduce a special work plan to support the development of the new land and sea passage in the West. We will also strengthen the service capability for settlement and exchange of small currencies with neighboring countries, and we'll optimize the cross-border financial service system and support stable skill and optimal structure foreign trade improve the service mechanism for customers high and certified enterprises and strengthen support for cross-border financial business in high quality agriculture and rural entities continue to support foreign trade enterprise under the financing coordination mechanism for SMEs and carry out innovation and application cross-border e-commerce financing products building diversified payment channels and third strengthen the supply cross-border financial services enhance a level cross-border trade investment and financing and will further enrich the system of exchange rate risk management products support SMEs expanding foreign trade markets and we will support the cross-border use of RMB the real economy will play a more active role so we will also provide a strong support for high quality development of the entire bank Thank you. From Xinhua Asset Management, I'm Zhang Yong. Thank you for the opportunity. My question is about inclusive finance. In the presentation, you mentioned inclusive finance inclusive finance as one of the five priorities of finance of China. It is also a highlight of the business performance of ABC. Looking forward to 2026, how ABC will maintain the good momentum in inclusive finance for sustainable development. Thank you. Thank you very much for the question. I'd like to invite Mr. Wang Dajun, Vice President of ABC, to take this question. Thank you very much for the question. Inclusive finance covering a lot of industries, covering a lot of households, one of the five priorities of finance of China. It is also an important aspect of practicing or maintaining the political nature and the people-oriented nature of financial work. By 2025, ABC has thoroughly implemented decisions, arrangements of the CPC Central Committee and the central government dependent coordination mechanisms for supporting the financing of SMEs and also enhanced the ability of our inclusive of financial service in a comprehensive way. We have promoted the increase of expansion improvement of our inclusive finance, and we also achieved a high quality development and a quality and efficiency of providing inclusive financial service. Many reflected on three aspects. First, we have the largest supply of inclusive credit supply. As at the end of 2025, the balance of inclusive finance loan registered 4.35 trillion yuan increase. And also, we have compared with the beginning of this year, the inclusive finance loan to SME 3.93 trillion. And also, this year, we reached or exceeded 4 trillion yuan. The balance and also increase of inclusive finance loan are the first among the peers. And also we have the widest customer service coverage as at the end of 2025, ABS's inclusive SME customer with the loan from the bank, we have 5.24 million, an increase of 60, 626,000 from the year beginning. The total number and increase of the customers has been the first among the peers for three consecutive years. So we are providing the truly inclusive finance service. Third, we excel in sustainable development capabilities, and we shifted from the digitalization we are leading among the peers to do so. The asset quality of inclusive finance alone are also leading among the peers. The evaluation from the regulators leading among the peers For 2026, as in the first year of the 15th Five-Year Plan period, we'll work on the following three fronts so as to ensure the inclusive finance business to maintain our good business momentum. To be more specific, first, we'll make good use of the policy tools of the country. In the beginning of this year, relevant ministries of China rolled out the one package policy to support the coordination between fiscal and monetary finance. In particular, the fiscal subsidy for the SMEs and also the private investment guarantee plan that has brought new opportunities for the inclusive finance development. enhance the cooperation between the banks and governments, between the banks and the guarantee agencies, focus on new policy tools, optimize our business process, and roll out the featured products and offerings so as to lower down the cost of financing our SMEs and increase the convenience so as to transform the policy benefits into the growth drivers for inclusive finance. Second, we'll make a good use of the institutions and mechanisms. ABC will continue to give our a row of the three or the rural business departments and inclusive finance department and taking advantage of the due will drive organized structure. We are the only bank that has such kind of a due will drive. That is the cooperation between the inclusive finance department and the rural business department. And we will continue to leverage our advantages across urban rural areas with a large number of branches outlets and extensive outlets coverages at the county level cities and also that is also the uniqueness or the feature of abc we will continue to demonstrate or the mechanism advantage that provide us with the willingness ability and also expertise and also the courage of a provide credit service to rural areas or related businesses and also we will promote digitalization in our inclusive finance We have the iteration, upgrading, and further enrich and improve the Longying, or agricultural bank, Yilong platform, and also build Reliant Outlets and the inclusive finance Yilong to build an ecosystem of inclusive finance, and also roll out AI intelligent credit-related business, and also consistently improve the digital risk control system. And ABC on CLAW is for this purpose. And also we will solve the problems of the asymmetric information in inclusive finance and also for the further enhance our risk control and management, provide a high quality service with a lower cost. And in 2026, ABC will continue to adhere to the general key of seeking progress while maintaining stability and coordinate risk prevention development and to serve people's well-being, focus on major strategies, key areas, weakness, so as to ensure the high quality development of inclusive finance business. I'll stop here. Thank you. Thank you for the answer. Next question, please. Thank you for this opportunity. I'm Zhang Xin from the 21st Century Business News. Serving the rural revitalization is the positioning of ABC and also that is what ABC is good at. How ABC will enhance your competitive edge in providing service to the county level areas. Thank you very much for the question. Yes, provide rural revitalization is our main business, and it is also our highlights. And while at the same time, it is a key focus area in our strategic development. In the past year, we stick to our main business and also to seize opportunity of the integrated development of the urban and rural areas, provide the financial supply or credit supply. and also enhance our equality and efficiency of providing service to the agricultural areas and county economy. And also, in the several aspects, first, with the contribution of county level for our average daily deposit and loan increment has been exceeded 1 trillion yuan. Proportion of increase increased by the 10.5% and 1.4 percentage points respectively, compared with the previous year. With this better structure, balance of rural household loan exceeds 1.8 trillion yuan, with an increase of 337.7 billion yuan, or 22.4%. And loans for key areas, grain production, rural industries, the growth rate of loans in these key areas is higher than the growth rate of old loans. Third, better quality and better efficiency. MPO ratio in county-level regions was very low with stable asset quality. Moving forward, we will have the document from the 15th Five-Year Plan, and there are systematic arrangement for the revitalization by allowing our development to the national strategy. We wrote out at 2026 two consolidations and two insurance of providing service to rural related businesses. We need to consolidate the proportion of the county-level loan in our overall loan portfolio and also consider our advantage in providing service to the county levels and also ensure that we'll maintain the same intensity and also the overstable asset quality. In the new year, our attorney business will continue to enhance the policy, resource, investment, enhance our ability of providing financial service. To be more specific, we'll do our good job well in the following five aspects. We will provide a service into the major processing county levels and the net growth of the county level long growth will continue to exceed one trillion yuan. In our businesses, in the agricultural related business, we'll work with the improved and the agricultural related projects and national water networks and also comprehensive agricultural production capability and also taking the counties as a major vehicle. We will provide service with the major projects and also have list-based service and supporting financing. In terms of the agricultural enterprises, we'll focus on the leading agricultural industries and also leading agricultural technology companies providing full-cycle financial service. In terms of the farmers or farming households, we thoroughly carry out information finding or information collection for the farmers, expand the toolbox of farmer salons, try to have more than 2 trillion of farmer... balance of two trillion yuan of a balance of loans providing to farmers this year. And second, we'll further enhance our financial service capabilities and we'll have a six in one service systems and we will also further promote relocation of inefficient outlets to townships, accelerating sinking of financial service to more rural areas. And this year we'll strive to relocate 180 outlets to townships and also We further increase the development of agricultural assistance service stations throughout the combination of service stations, mobile service, further enhance our basic financial service, and this year we will build around 3,000. Last year we have really built around 1,700. This year we hope to have around 3,000 agricultural assistance service stations, and we will innovate the innovation innovation financial products and models for agricultural businesses and uh we will roll out um some new and diversified um products and also use the smart bank tools in providing service to the rural areas for rural businesses and uh build uh have the promoted application of smart banks tools in the field of agricultural areas farmers promote on-site plus remote investigations and build a system covering satellite uav and ground iot and other agricultural data enhance our support data supply capabilities for agricultural businesses

And firstly, we will ensure that this normalized financial assistance will be put at a prominent position, and we have already formulated a package of differentiated policies, and we will try to ensure that we lend targeted support especially policy support to people who have just been lifted out of poverty and to ensure they will not return to their previous state. We will focus on national and provincial level rural revitalization strategies and projects, support underdeveloped areas in carrying out initiatives and form internal motivation for these assistance projects. And fifthly, we will ensure the compliance and risk management work of the county level regions and ensure that we manage or prevent risks at the source and ensure that the low ends will have a very strict risk identification and monitoring process and also a series of risk monitoring models. Thank you so much. That's all from me. Thank you so much, President Vong. Next question, please. Our friends online. you may ask your question. Thank you for the opportunity. I'm from JPMorgan Chase and banking analysis. My question is about the bond market. We have noticed that last year the contribution of bond investment is actually pretty prominent. So what is your plans for this year's bond investment? And also, what is your judgment on the bond interest rates for 2026? President Lin, please. Thank you for the question. From the perspective of the overall operation and management, we attach great importance to the financial market. And with our understanding about the inherent laws of the financial market, basically three positioning. First of all, the level of the market and the level of the professionalism and also the level of talents That's three positioning. And if we want to summarize this or the characteristics of ABC's financial market business, I think that it can be summarized in three keywords. First, big. Second, stable. And thirdly, good. So first, large or big, it means that we are big in scale. And stable means that we have been upholding prudent operations. So we are also very unwavering on that. And the third point is good or good quality. That means that we have pretty good outcomes, and it is also sustainable in the long run. You are interested in bond investment business. Here at ABC, we have been committed to serving the real economy. We focus on improving our capabilities and optimizing asset allocations and better promoting and controlling risks to achieve high-quality development. You have mentioned bond investment has contributed a lot to the performance of ABC last year. I think that's inseparable from the external environment. And also at the head office, the investment decision-making committee, as well as the overall investment team have made a very good analysis on the market. And they have a very targeted and precise investment strategy. Looking back on 2025, at ABC, we have done three things right. First of all, with our strategic focus, we have cemented our investment foundation. While serving the real economy, we have improved our ability to make evaluations of the entire market. As a core participator of the bond market, the financial market managers of ABC has over 10 trillion yuan in bond assets. Therefore, we really value our ability to make macro assessment of the financial market. And we have been adhering to national policies as the guiding principle and also the economic laws as we're guidance. And we have been making proper evaluations of the macro policy curves, as well as the dynamics of the economic environment, so that in the ups and downs or fluctuations of the market, we can identify opportunities and effectively rise up to the plate to manage and prevent risks. We have to seize the opportunity of interest rate fluctuations and to really understand its rhythms. In this ups and downs and range fluctuations, take, for example, before the interest rate rebound window, we proactively compressed our duration to cushion against the risk of rising interest rates. With more professional capabilities in practice, we can effectively stabilize market expectations. In our work, we have been serving strategic situation for precise allocation. In dynamic balance, we have achieved a due increase in scale and efficiency. Facing international economic and trade landscape adjustment in 2025, the global financial market has been facing increasingly complex environment. So we have to focus on strategic focus and strive to more proactively improve use a sophisticated and refined management strategies and approaches to prevent and control risks. In particular, with our comprehensive income target as the goal, the RMB bond scale has increased by 2.4 trillion yuan compared with the beginning of last year, and we have achieved a or we have a better revenue structure or duration allocation has been more balanced this has given us an edge and cushion against the cyclical fluctuations of the market Here, I think that it is important to highlight flexible or dynamic management and optimization of duration as well as the duration structure. We have to constantly strengthen the monitoring of potential risks coming from interest rates and exchange rates so as to improve the forward-looking analysis and prevention of bond investment or credit risks. Thirdly, as a major bank in China, we have been acting on national strategies. In serving the real economy, we have advanced the five priorities. In the year 2025, ABC has taken the lead in underwriting national bonds and local government bonds and credit bonds and altogether more than 3.7 trillion yuan. A year-on-year increase of 20 percentage points, roughly. So it is fair to say that we have supported the implementation of active physical policy and the real economy. We have also been focusing on five major priorities. We have been continuing increasing our investment in industrial bonds. In green and low-carbon areas and technology innovations, these directions represent our top priorities. And by the end of last year, the green financing tool balance has maintained growth. a leading position, and we have also anchored our efforts in rural revitalization strategy, where investment in that regard has increased by 300%, and or underwriting share red first in the markets for this year. And especially in the San Nong or agriculture related sectors, we have precisely allocated or investment portfolios. And you're also interested in the bond strategy for 2026. We deeply feel that 2026, because it is the starting gear for the 15th five-year plan, it is a pivotal year for us to build momentum and step into high quality development as China's economy transforms itself. Here at ABC, we have served the real economy and we have coordinated development and security and ensure we have a better coordination at a macro level. We have been maintaining stability while seeking progress in our financial market operations. But all at the same time, we emphasize that we have to really delve into structural opportunities in these cycles. First of all, we have to improve our ability to assess different situations and support proper investment decision-making. So I think that you are also an expert in that regard, so I will not go into any details here. I believe that the logic of global asset pricing has been undergoing profound changes. I should say that all of you might feel it to some extent, and internally, we'll say domestically, or economy is now building momentum and the pressing signals are expected to recover and monetary policy remains moderately accommodative. The government bonds has increased and supply has increased and issuance has been also significantly front loaded. And since the beginning of this year, the curve of the bond market yield has been more steeper. So we estimate that the bond market will take on a volatile trend. Credit bond as well as grain and site tech bond will be even more active. the fluctuating or volatile transaction or trading opportunities will coexist with those low volatility assets. And also in foreign markets, there will be increasing interplay between exchange rates, bond stock and commodity markets. So we have to have the overall picture in mind. One important part of our work is to integrate all platforms at ABC and pull together the research power to conduct research across different markets, cycles, sectors, and asset categories, so that even in complex fluctuating scenarios, we can really... land ourselves on certainty. And secondly, we focus on national strategies to accurately empower the real economy. First of all, we have adopted a proactive physical policy. We have been deeply integrated into modern industrial system. So here, Our focus are on some of the modern and strategic emerging industries, and also we will intensify efforts to allocate more resources to high-quality industries. And thirdly, we will advance five priorities, especially in pension finance, inclusive finance, and green finance, and so on. And next, we will continue to optimize our investment portfolio while controlling and preventing risks. We will ensure prudent growth. Thirdly, we will give full play to our advantage as a major bank in China. We will deepen services for domestic and overseas investors, and we will continue to cement our core commercial functions, piggybacked on a full range of bond varieties and pricing capabilities. We will continue to improve bond market liquidity and stability and improve our cross-market allocation capabilities. On the other hand, piggybacked on the bond connect swap connect and so many others or other mechanisms we will ensure we provide better services for cross-border investors and leverage the advantages of domestic and international linkage and support high quality chinese businesses to go global and expand their development channels and firstly we will empower or digital transformation with science and technologies so we have to uphold the leading role of science and technology and digital means in risk control and prevention bond and research And also so many other areas we have to have whole chain integration, and we will ensure that AI is applied in different application scenarios, such as position management and pricing and trading, so that we can improve for quantitative analysis and also intelligent investment decision-making and empower the development or high-quality development of ABC. Thank you so much, Mr. Li. Now come back to our friends on site. Next question, please. Thank you so much for the opportunity. I am a financial analyst from CICC. What ABC has done in supporting the development of SciTech businesses, what are your best practices, and how will better develop the SciTech finance business or the FinTech business? Okay, I think that I would like to take this question. We know that the technological finance is a very important part of our self-reliance and also the construction of a technological strong nation. And it also involves the construction of a modern industrial system and new quality productive forces. Here at ABC, as of the end of 2025, we have already provided services to over 350,000 technology-based businesses, and the balance for loans is 47,000 yuan. The annual growth rate is more than 20%. The coverage and the overall loan volume have been at the forefront at this industry.

To be more specific, we enhance the ability of the technology and financial service, and ABC continue to carry out special actions to enhance the capability of the technology and financial service in the whole bank. Focus on Beijing, Tianjin, Hebei area, Yangtze River Delta area, Guangdong, Hong Kong, Macau. Greater Bay Area, Chengdu, Chongqing, and other highlands of technological innovation, establishing 25 provincial and municipal-level technology and financial services centers, and building more than 300 specialized technology and financial branches, and established a professional talent pool for technology and finance. We have allocated professional equity investment personnel to each subsidiary and built a large number of financial, technological, and industrial professionals in the ABC group. Second, we expanded the coverage of products and services. We have taken the lead introducing guidelines for technology and finance credit policies, promote the five have six capabilities and seven abilities, credit evaluation model, inclusive to technology and enterprise, technology enterprises and build a full life cycle credit service system covering the institutes and the scientific parks and also the technology workers in total around 50 specific products and customers. For example, in providing service to the agricultural technologies we rolled out in the agricultural park science enterprise loan. We also have the agricultural machinery loan effectively providing service to the leading agricultural technology enterprises. And also, we provide the seed industry revitalization and also make good use of various policy tools. We know that in 2025, the National Bank and other seven departments issued a series of policy tools to support technology finance. And ABC actively connected and implemented those policies. We supported the creation of a technology innovation board in the bond market. The first batch of 20 billion yuan of commercial bank technology innovation bonds were issued, while we increased the underwriting and investment in various market entities in science and technology innovation bonds, also underwrite an investment at the forefront of the industry, and also implement the monetary policy tools. And also we signed a contract amount of loans and technological innovation, technological transformation has been achieved. And also we participate in the policy on pilot projects. We were the first to sign a 50 billion yuan of social security science and technology innovation fund in Zhejiang, Yangtze River Delta. And also established 30 various types of science and technology innovation funds, including establishment of a 18 AIC equity investment policy, city funds and we have full coverage of investment. The cumulative lending of MIE in the technology-based enterprise exceeded 25 billion yuan. Those measures have supported the development of technology innovation. 2026, the first year of the 15th five-year planned period will fully focus and will give fire on all side in terms of the technology finance and to empower the new productive forces and provide a service for the economy. so as to contribute to accelerate the strength of China's strength in science and technology. First, we will provide service to the modernized industrial system, promote innovation technology to combine or integrate it with the industrial innovation, focus on the operating of traditional industries. focused on the new and future industries, focused on the modernized infrastructures, focused on the major national scientific projects to seize our targeted industries and customers, enhance our policy and resource support, enhance our professional service capabilities so as to accelerate the formation of new product forces. And second, we have a full chain, full life cycle comprehensive or one-stop service by adapting to the laws and patterns of the innovation and also the growth pattern of the enterprises. We will invest early, invest in small, and invest in the long term, and invest in the hard technologies, and also continue to enhance our policy and support system, and also we Upgrade entire chain and entire cycle of the technology finance or financial service solution of ABC. We have the, based on the advantage of ABC, full license investment, lending, bonds, and leasing, consulting, give full play to the role of AIC. In serving technological innovation equity investment, we work with government agencies and also to research institutes and VC firms and other financial institutions to meet the comprehensive financial service demands of the enterprises for our customers. We accelerate the promotion and application of our data tools. To adapt to the trend of digital and intelligent development, we deepened the AI plus empowerment of technology and financial service. We coordinated the deployment of large language models and development of intelligent agents, optimized the service platform for industrial finance, which has registered 5 million high-quality technology enterprises, enabling precise service capabilities. We also make in-depth use of innovation external data, such as innovation points, intellectual property, and investment loan linkages, optimizing the precise evaluation model for technology enterprises, and also use AI agent assistance that enhance our quality in providing service. Thank you, Mr. Wang. A question online. Please pick a common question that we haven't touched upon. Well, this year is the first year for mandatory system information disclosure. And the investors in the capital market are very interested in the system of listed companies. So ABC is performing very well in ESG work. So what is progress of the sustainable development and what are the next steps? Thank you for the question. while we will disclose 2025 sustainability development in line with our annual reports by in line with the new regulators and a benchmarking to the international initiatives demonstrating the performance of IEBC in our sustainable development. We actively implement a national strategy in sustainable development and incorporate the targets in responding to climate change in our day-to-day work. Management and business operations enhance resilience to sustainable development, enabling the benefits to all stakeholders. To be more specific, First, we focus on improving our governance and implement Chinese-capturized financial governance. We incorporate the party leadership into our work and also enhance our sustainable topics, scope of the disclosure of sustainable development. The BOD is supervising, senior management is implementing, and also the... executive level effectively implementing the policies forming a connected governance chain and enabling the concept of sustainable development into the top-level design of business operations in the 15th five-year plan and further stimulating the quality and momentum high-quality development. Second, we'll fully implement the growing finance strategy with the promote our own energy conservation and a carbon rate in carbon emission reduction, actually practice the concept and take carbon peaking and carbon neutrality as our guide and actually guide the capital to towards key areas such as carbon reduction, pollution reduction, grain expansion and growth in terms of a grain finance. Balance of grain loan is nearly 6 trillion yuan and equivalent to an annual reduction of 117 billion tons of CO2 and 66 billion yuan of grain financial bonds have been issued in China, ranking first among in the industry. The balance of green bond investment has increased by 37%. In terms of ESG risk management, we have built ESG evaluation indicator where matrix system for clients launch ESG evaluation function for corporate clients. We also explored and conducted climate risk stress test for agricultural personal housing and wind power enterprise loans, applying the result of climate risk analysis to investment and financing management. And also in terms of our operations, we actively practice green office, green procurement, and green travel. And the total carbon emission per capita of the whole group in 2025 have decreased compared with the previous year. Third, we always put people at the first place to improve our people, employees' well-being. abc will have a wide range of stakeholders where you take customers satisfaction employee satisfaction at our core and or as our priorities strive to give back to our shareholders give back to the society contribute to the society continuously expand the accessibility of financial service mentioned and abc will provide service outlets to cover or more than 2 800 county level areas and making it the only bank to achieve a full coverage of county level institutions or outlets In 2025, ABC has relocated and built 179 new outlets in rural areas or towns, further fulfilling the rural areas with insufficient financial service. And also in regular provision for mobile financial service has cumulatively served 120,000 rural households. Agriculture service projects significantly enhanced service capabilities. We built 3,308 facilities. elderly-friendly service outlets with a remote banking hotline providing service to senior customers throughout the year. We have 22,000 warm-hearted union service stations providing considerate service for outdoor workers and new citizens. More than 9,900 public welfare activities were held or launched. ABC has also thoroughly implemented a talent empowerment strategy for professionals and frontline young employees. We have implemented major talent projects for a key group selecting over 2 200 young talents and adding 47 000 talents to talent pools of different levels and types building on 6 115 facilities for workers strive to create realize greater value for our shareholders we also enhance a two-way interaction in the capital market for a three concept years abc has led its peers in terms of a total market capitalization growth We have maintained a high dividend payout ratio. We continue to shine the brand ABC philanthropy with the full implement of four major actions of revitalization, protection, care, fulfillment, and through donation, volunteer service, mutual assistance, and other means to provide a generation or a benefit to the and general public. And also we have volunteer service hours exceeding 850,000 hours. And that has also give a recognition and a branding for ABC. Moving forward, we'll continue to follow the rate of strategy of a national system of development, keeping the development of the system management system and provide a better service to our customers and to our employees, as well as respond to the concerns of the stakeholders to ensure high-quality development through the sustainability practices to create a better value to our shareholders through the good sustainable practices. I'll stop here. We have a very thorough discussion today. For the sake of time, we will have one last question from the Beijing venue. From Peng Pai News, I have a question on AI. Now AI is applied widely in banking sector in the management and business expansions and a lot of results have been achieved. And Mr. Wang also said ABC will vigorously promote application of AI in smart banks. So what achievements has been made and what measures have been taken? Thank you for the question. My colleagues just now in their presentation also touched upon a little bit on the application of AI in smart banking development. AI is a buzzword now. ABC also sees the opportunities of AI development always set up specific office for smart banking development and also enhance your coordination. Also, we will focus on the AI agent application, focus on the project, and also we will build an AI plus capability system to ensure the smart inclusive or wide range use of AI. Past year achievements are reflecting the following aspects. First, they accelerated our service innovation and product innovation. We kept accelerating the research and development of digital products. We have launched a flying handbag, which provides the loans for drone operators. We also have a pharma e-loan. Also at the same time, we innovated technology, finance, creative products. We call that tech loan. And also scale of online creative business has increased. As at the end of last year, the balance of agriculture e-loan was $6.8 trillion, an increase of 18.7% over the end of previous year, also improved the quality of efficiency of online service. The monthly active users of personal mobile banking have been leading among their peers. We also rolled out the new version, 5.0 version of the inclusive finance station. build an online inclusiveness covering multiple channels. And also we have increase in the efficiency and effectiveness of smart risk control. In terms of credit risk management, we have the on-site and off-site credit lending, due diligence, and also depend on automatic identification and comparison of GPS positioning, image information, applied advanced technologies such as generative AI, strengthening multidimensional verification of the real people, real events, and real scenarios. We also continue to strengthen centralized monitoring. for the five group of customers in terms of the group customers, large, medium-sized customers, small S&E customer, personal loans, and cultural loans, and also enhance our smart disposal platforms.

We have also achieved batch handling or disposal of these cases so that we have promoted NPL disposal AI can also empower anti-fraud efforts as well as anti-money laundering. The quality and efficiency have both been improved. And this can also help us to reduce our business burdens. For example, in terms of intelligent customer service, we can deepen application of AI models. to fill in the forms, for example, and effectively reduce the burdens of frontline agents, the average time required has been shortened to 176 seconds from more than 200 seconds. And we have also speed up the construction or the development of intelligent investigation review report templates. The automatic generation ratio of this report data exceeds over 70% for small enterprises, credit recipients, and group credit. This has reduced the manual workload of credit personnel in drafting. And just now, where AI model mentioned by our senior management can also fulfill the smart or intelligent Q&A session. And this function can also empower the consumer protection or compliance in other processes. And this AI model, Yiming, has also won many awards. For example, in a recent consumer protection day, the 15th of March, has also announced that it has won the Financial Consumer Protection Golden Award for 10 outstanding cases in financial technology innovation services. So it is quite popular within our bank. And firstly, AI is a systematic work, especially in terms of its application in ABC. We have been systematically promoting the application of AI. We already painted, we mapped out a blueprint for AI application and compound the AI capability map. And with a platform dedicated to AI application, we can promote its capacity building of computer power to portals successfully deploying multi-industry leading edge models. And this will also help us to develop even more model metrics regarding AI. Next step, with AI, intelligent platform building, we will continue to improve the accuracy and convenience of financial services and also its inclusiveness. Thank you so much, ladies and gentlemen. Very big thanks from my bottom of heart for all of you in participating in this 2025 annual result announcement of ABC. We have implemented regulatory requirements and implemented an investor-oriented management approach and also clarified where mechanisms, targets, and approaches for market capitalization management. We have appealed high-quality development requirements. and highlighted or features as well as serve the real economy as one of the major banks in China and strive to create more value for investors and shareholders and disclose information in a timely manner or stock prices and also valuation have all achieved improvement. Thank you again, all investors, analysts and friends from the media for your continued interest and support in ABC. And I would also like to thank the senior management for your sincere sharing of the operating performance of ABC today. If you have any questions in the future, you are the most welcome to contact ABC's team. So that's all for today's result announcement conference. Thank you so much.