Agricultural Bank of China Limited

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.