Agricultural Bank of China Limited

Bank of China Limited Bank of China Limited is the third year of the 45-year plan to advocate Bank of China. earnestly implemented the Decisions and Arrangements of CBC, Central TV, and the State Council, which we have drafted. The political and the people-oriented financial work adheres to the main line of events in Greece and promotes the hospitality development. We are glad to share with you the fine figures for the operational performance of our bank. The profit growth rate exceeded 5%. Its first half year, net profit had a growth by 5.8%, an increase of 1 percentage point compared to the first quarter, and operating income increased by 11.2% year-on-year, an increase of 0.7 percentage points compared to the first quarter, showing good growth momentum. Also, in the first half year, the return on net assets was 10.14%, maintaining a leading level among comparable peers. The second set of data is that the increase in financing included in the first half year. The average culture of Bank of China effectively tapped into the financial needs of the bill economy with a large-scale financial increase, including loans and bonds, which is 2.2 trillion yuan, of which the increase in local and foreign currency loans amounted to 1.9 trillion yuan, increase of about 6.2 percent, the increase in bonds, investment rates 1.5 trillion yuan, with a growth rate of 9.6 percent, average daily balance of four deposits amounted to 39.5 trillion yuan, with an increase of 3.6 trillion yuan, actually an increase rate of 0.2%. Suddenly, the net interest margin expanded by two basic points. That's basically from the continuous effectiveness of our volume price definition of management in the first half year. The net interest margin of the Agricultural Bank of China was 1.28%, two basic points higher than that of the first quarter, showing a stabilizing trend. Bank of China Limited Bank of China Limited Bank of China Limited here the achievement of the bank's development board of directors proposed to pay the interim dividend for 2026 by raising the ratio by 1 percentage point to 31% these are the achievements we have brought in the first half year and these are the very important operational success reflecting a balanced approach between Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Now, as of the end of June, the balance of loans in county level areas reached 11.92 trillion yuan, an increase of 9% over the beginning of the year. The balance of the bank's exclusive productive performance, the Hui Nong Yidan Nong made 41 trillion yuan, an increase of 42.2% over the beginning of the year. The balance of deposits in county level areas was 14.94 trillion yuan, with an increase of 405.2%. 54.9 trillion yuan is a contributed 40% to the bank's total deported growth, and the proportion of county level grantees rose to 56.8%. The ADC has always taken as a position to serve the real economy, focusing on the conservation of its old and the new growth drivers, and the trend of industrial transformation upgrading, continuously optimizing the allocation of financial resources. Surrounding impact, we have used the high-quality Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited The number of physical social security card users reached 18.84 billion, and the scale of pension in trustee management was 438.6 billion, with a 14.3% increase in the number of individual pension clients that departed the month, rose by 36.7%, including digital finance, which finally completed the guarantee application of new generation communication technology cloud, computing, artificial intelligence, and other industries with loans to the digital economy increasing by 15.1%. The response to the national policy to boost their consumption with a housing mortgage, daily consumption, and other areas have increased. The credit supply, the balance of personal consumption loans, including credit cards, amounted to 1.5 trillion yen with a new rate of 49.054 billion yen. The country's high-level opening up and development in the fourth quarter Bank of China Limited As of the end of June, the total number of the personal customers of the ADC raised to $905 million, maintaining the first place in the industry. The number of corporate customers exceeded $14 million, with increases of $910,000 since the beginning of the year. The number of aesthetic card customers was $76.98 million, with an increase of $2.82 million. The number of personal mobile bank customers was $629 million, with $282 million. and 215 million multi-active users on mobile devices, ABC has always been customer oriented and has continuously strengthened the construction of a customer service system achieving common development with its customers. In terms of individual customers, it has deepened the business system of customer certification and certification for the customer groups that has heavily-accelerated individuals and new citizens and providing Bank of China Limited Bank of China Limited Bank of China Limited we continue to optimize our cash opening process, enrich online productivity, and enhance the capabilities of mobile and online services. As we further enhance client experience, we also stay true to our original operations and foundations to serve the people with financial services, promote the rural service market, introduce stellar news for rural services, provide quality financial service for special client groups, Bank of China Limited the AI-class technology system, it will accelerate the digital business innovation and in terms of process innovation, we have built a digital operations platform driven by AI technology and facilitated by tablets, helping to expand and increase online credit. In terms of the channel innovation, we've released the 11.2 version of personal online Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited to be more intelligent. We will defend the AI application in compliance with the scenario and effectively enhance the quality and efficiency of the compliance management. We will also strengthen support for frontline service and we need self-developed AI agents, the Dragon Knights, to adapt to the technical requirements of different scenarios and business needs in order to incorporate an AI digital assistant. And we have completed the DC back-end lens a new model application and try to continue to enhance our AI capabilities. The fifth effort is to strengthen the security defense line and effort the high-quality development. Prevention and control is always our key task. In the financial work, we will continue to focus on the great prevention control. We appear to be proven and stable business strategy, continuously increase the competitive risk management system. In terms of credit-based, we focus on control the increase, reduce the stock, and strengthen the foundation, continuously optimizing the credit structure and constantly improving the risk prevention control system for inclusive retail with Agri-Pocket Bank of China's characteristics. We will also continue to improve the market-based system. The annual Policy for risk management and financial market business and aims for bank business and strengthen risk control requirements for market business. We track and study market changes to actively optimize business strategies, strengthen risk control, and keep relevant indicators stable. We closely follow international situations and market changes, dynamically adjust response strategies, and ensure risk control abilities. On technology rates, we study the location of our computer room and the intensity of our traditional physical and public capabilities. We also include the network security protection, actively responding to external rates, their soft-ended, new-based technologies. The average daily trading volume of the distributed core system is at 1.96 billion, with a year-on-year increase of about 70%. And the serviceability during main business hours is 100 hours. We also talk about the future development trends, I believe there are three changes of plan.

And this has created great space of development for the Agricultural Bank of China. And also the economic structure is changing profoundly in the first seven months of this year. The proportion of bound financing increased and this whole financial structure is changing. So this has imposed new challenges. for the banks. We need to find the new benefit spaces and possibilities. And also, at the same time, we notice that the AI technology is accelerating in its growth, so we need to integrate the AI system into our business management system. And also, we need to control the risks related to AI development and AI technologies. For ABC, we need to hold on to our all advantages, and we need to find our position in the whole economic development of China. and also we will have More attention paid to the international financial market and how we cooperate with our partners. And also, we need to see this opportunity of AI technology development to empower our whole process and system of development using AI technology. And looking into the second half of the business operation, our executives and our board of directors will coordinate the keys of works we have done in the previous half of the year of 2026, and we are going to increase our quality of assets, and we will try to improve the quality of our assets, and also to create more value for our investors in the future. And that's my introduction. Thank you very much. Now let's go to the Q&A session. Let's give the floor to the Secretary of DOD, Madam Liu Qing. Thank you very much, President Wang. Now let's go to the Q&A session. In this session, please, each of you have the opportunity to give one question, and please briefly introduce your institution and yourself before you ask the questions. Okay, let's give the microphone to this madam. Thank you very much. I'm from the and I listened to President Wang's introduction. We noticed that the operation revenue and the net profit has increased a very high level of growth and it's very resilient and a lot of growth are higher than the first season. So my question is for the executives, what are your expectations for the second half of year's growth and what are the driving forces for the growth? Thank you so much for the question. Just as you've mentioned, we have always stick to the path of high quality development. We want to have a long term development and we want to have an active position in this changing dynamics of the economy. So in the first half of the year, while we are serving the real economy and while we are having this very good performance, we have also made a lot of progress in the indicators of financial performances. and all these progress have shown our very stable pattern of development and our strategy for stabilized development. And just as Mr. Wang has introduced, looking into the second half of the year, we are very confident to keep on to this track of faster development and maintain a good operation revenue. And if we look at the outside environment, we can see that the economy is showing a trend The dynamics are towards the internal forces, and also the whole structure of the economy is upgrading and optimizing, and that has shown there is a great resilience to the China's economic development, and this stable microeconomic situation has created a very good environment for ABC's development, for our high-quality developments. And if we look into the past of our history's development, and if we look at ABC's own situation of development, we can find that we have our comparative advantages always. We have always focused on how to combine our own advantage with the whole environment development. And also, we have a very great and profound basis of clients. We have very comprehensive products. and very solid capital and assets, which will be our support for future resilience and potential of development. So speaking of the specific driving forces, first of all, we will hold on to our advantage of asset operation, which will help ensure the income from the interest payment. The Bank of China have always stick to the large number of networks all over China, especially at county level. And now with this rural revitalization policy of China and to build a new type of rural area policy of China, we have our own driving force, and we will continue on this path. And, of course, at the same time, we will have more diversified advantage being explored. And for the second half of this year, we will continue on this path. and secondly we have already achieved the cost of liabilities continuing to decline and that is in an orderly manner and for the second half of the year we will continue on this path for the first half of the year this average daily increase in deposit is at a reasonable level and is providing a very good support for the real economy development and on the other hand it also helps us in reducing this cost of liability. And if we look at this whole trend of development, it seems that the existing debt will gradually mature during the second half of the year and the continuous decline in debt costs will continue for a long time. And yes, that's the point we're going to stick to for the second half of the year. And certainly we have already provided more and more of Financial Services and Solutions and we have already made our contribution to the optimization of economic structure and this is the trend of the whole China's financial market. There is this changing in the financial structure and so facing this trend, the ADC will of course consolidate our existing advantage and at the same time we will have more plans and strategies towards the future to have more long-term transaction capacities cultivated and to improve our capital management capacity which can help us get through any kind of economic cycle. And the fourthly, we have already achieved this improvement in risk control and that will help us to have a more solid foundation for Future Development. We have always regarded this risk control as our foundation of all kinds of operation. And during the 14th five-year plan, our NLP decline rate is ranking number one in the four major banks of China. And also, we have this very good performance, speaking of this allowance coverage and other aspects. and these have all set very good foundation and very solid boundary for us to control the risks within a certain field and level. So all these four factors have shown our achievements. They have helped us to gain a very solid growth in the first half of the year and it will continue to help us in the second half of the year. Thank you very much for the introduction about ABC's profit-making ability. Now let's give the floor to this Journalist in the middle. Thank you. I'm from the Xinhua News Agency, Xinhua Financial News. Mr. Wang, you mentioned that the NLP rate has been declined for five consecutive years, and there is this growing capacity in terms of this allowance rate. So what is your expectation for the whole year's asset quality operation and especially for inclusive retail asset quality. Thank you.

Well, thank you for your question.

We have always, ABC has always put the risk control in the core of all of our works. We always stick to the path of prudent and stable operation. We want to have this Very stable and very careful risk of control, which can make our whole business operation more resilient and more sustainable. And our whole AVC asset quality has the following features. First, this NLP ratio is dropping. ratio is dropping. By the end of June, this NTL rate is 1.65%. And while we stick to this category, very strict category of categorization, we do maintain this good level. And also, there is this BT dropping compared to the year 2025. So all these numbers have shown that we have quite good risk control in terms of the asset quality and another feature of us is that the expected ratio is dropping compared to the beginning of this year and especially the expected season gap is dropping. It's dropping for a consecutive 24 seasons and this negative number is very important for us because it shows the quality asset of us. And also, this allowance coverage rate is very high. This balance of the allowance coverage rate has exceeded a trillion yuan, and that's a very good foundation. And for the first half of this year, the growth in the whole whole size has reached 29% and that is a very high level and this number is ranking the top among other counterparts in China's banking market. And also you mentioned this retail asset quality especially the inclusive retail retail Banking Services. Well, speaking of the quality of this aspect, we have always put our attention on the risk control, as always, and we will make more efforts to deal with the remaining non-performing loans in this aspect, in this retail of the inclusive finance. And looking into the second half of the year, What we feel is that we still need to keep the credit and asset quality of ABC at a very good level. So speaking of all the indicators, no matter the non-performing loan, the expected or the allowance coverage ratio and all the indicators, we still need to pay special attention to them. And we are going to do the specific things to achieve such goals. The first is we will keep optimizing the credit structure because we always say if you want to serve the macroeconomy, the finance, you need to understand the macroeconomic situation. And also, we always want to understand the situation of certain industries if we want to provide some financial and credit support for such industries. and that's why we will have more customized targeted design of the credit resources which can suit the need of our country's economic strategic development and we will pay special attention to the structural risks of all industries and to control disorderly competitive situations and we will reduce the excess overcapacity, and we will try to control the low-quality loans for our customers. And also, another measure is we will have a long-term mechanism which can help us to look into the future and analyze the situation of things that might happen. This is going to be a long-term mechanism for us, especially for the risk related to our customers and high risk customers and also the different categories of customers and how to manage the loans of those already exited customers and also the loans that are about to due or are due to we are all going to pay special attention and strengthen the control of all these categories and at the same time we have a already done a lot for the inclusive retail financing system. And now the whole society is paying special attention to the inclusive retail finance risk control. And we are looking at this whole situation. We are following it closely. We are having strict control of it. And we will have more policies and strategies based on our working reality, like reconstructing our whole banks credit system to manage the credit structure. A very important measure of us is that for any credit measures, we believe it is very important. It's the front line of risk control because it's the source of any other operation of businesses. And another important line for us is the risk control and legal compliance control and this will help us to work with the real business of credit risk control and together to have a more effective outcome.

Risk management is a very important line and the risk management that the compliance department Bank of China Limited Bank of China Limited the the the the the the the the Bank of China Limited Bank of China Limited and the template marketing of the sub-branch, which helps the business line to focus more on local characteristics of the business. Third year, third class, and third entry financial ecosystem map to develop credit plans to bring high-quality customers and throughout standardized marketing activities, creating proactive customer acquisition, batch customer acquisition, and resource customer acquisition based on development models and tasks. Compared with the past three-year loans, there should be a big difference from a fragmentation to proactive customer acquisition. The third aspect is to promote integration between online and offline, and we need to formulate the unique competitive advantage with ABC's credit management. This is mainly achieved through leveraging ABC's ground-to-ground G2HR Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited because the important part of, for example, credit business is due diligence. If we simply use AI for models, we feel that due diligence will hardly be in trade. Because a good due diligence should have at least three characteristics. The first one is that it should be on time. The second characteristic is that it should be available able to ensure authenticity and be responsible and take up the responsibility of management. So we certainly will study work tactics, AI-runned offline integration, and help improve the quality of utility from the very good assistance. In this process, I believe we I hope we put an end to all forms of contacts, intermediaries, bank marketing, and participation in handling business, especially for those who need for intermediaries. If you use them, you may think that you are importing traffic, but in the end, it may leave bad results. We are very firm on this point. On the premise Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited We also focus on the improvement of the responsibility, responsible person system for inclusive data, standardize the over steps of the credit process and identify the main responsibilities. First of all, making sure the managers of the branches fulfill their responsibilities when non-performing loans or raising money. We shouldn't simply push the brain onto frontline employees. We also need to focus on the second tier of grantees, the management responsibilities of the grantees and the responsibilities of the outreach. We have stratified the negative risk of due diligence exemption, further extension of the performance of management responsibilities, and created an atmosphere of state management and student lending. In our opinion, to do a good job in lending, we need to ensure that loans can be dispersed, Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited and it's both of them. In the past, the state development loans put a lot of pressure on banks and lead to some non-performing loans. There are various reasons for this, but one of the reasons is the deprivation of trade sale funds. We particularly learned a lesson from this in the first half year. From the overall situation, we have learned that non-performing loan ratio of the real estate industry of ADP compared with the beginning of the year remained stable. On local supplement debt, we adhere to the principle of marketization and localization. We standardize and support the market-oriented transformation of financial reforms. But at the same time, we also pay attention to strengthening the monitoring of the basis of the platform after the transformation. We handle new financing in a visible and compliant manner. and resolutely guard against the red line of not adding new hidden debt. We also quickly realized that asset quality is always the lifeline of the bank's operational management. We also learned that with control of an intuitive way of business, it's crucial to the stability of the entire EDC and sustainable development of the bank. Without decisive risk control and compliance management as we know, High-Quality Development, we must firmly establish and practice the right view of political achievement as it is the bottom line thing here. Also, we need to form from the spectrum of organization, system policy, technology, and management, making every effort to build a good, credit-rich culture in addition to management, force, and measures. We also need to Promote the whole bank to build a good credit-based culture, including the access culture based on the qualification and the authenticity of customers. The authorisation culture of our community is matching the professional, defined, forward-looking management culture, the great control culture of machine and machine collaboration and digital empowerment and so on. By doing so, we can strengthen digital control All measures and we are confident for the long-term future development. Thank you. Thank you very much, Governor Lin, for the sharing of the APT's asset quality. Now let's welcome the next question. Thank you for the opportunity. I'm Anlis. My name is Li Chen. Bank Anlis China Securities. I have a question about deposits. We know that a deposit is a special expense of APT. we see that the good pricing of the Departments is approaching and we have seen a lot of good retention data of the Departments. We also noticed that liability cost of BVT has been decreasing at the top of the year. However, we noticed that the overall presence of social capital revitalization has undergone profound changes. The demand for wealth management amounts has also increased day by day, I want to ask this Thank you very much for raising the question. We had closely focused on serving rural revitalization and the economy has to be aligned with the micro-policy requirements and market changes and continue to achieve the high-policy development in the policy business. First, deposit growth continues to show a good momentum of stable quantity and a high quality with the average daily balance of all deposit accounts reaching RMB 39.59 trillion at the end of the first half of the year, an increase of RMB 3.27 trillion after 10.2% year-on-year. Those growth rates and inflows are performed by their competitors. The deposit evasion ratio decreased by 2.36% each point year-on-year. It is the only bank among its competitors that has kept the ratio below 3% for nine consecutive quarters. This has provided high-quality financial resources for the real economy. Second, the poor advantages of the deposit business have been further consolidated from the perspective of customers. The average daily balance of personal deposits in China is 212,800 yuan, accounting for 54.5% of all deposits in China, with an increase of 1.56 trillion yuan in the first half of the year, maintaining the leading position in the industry for 18 consecutive quarters. From the perspective we can suggest, the average daily balance of that country deposited in China stood at 14.73 trillion yuan, accounting for 44.3% of all deposits in China. Also, the contribution rate has been placed above 1 percentage point compared to the beginning of the year. It has further played a role of the last third-rate coordinated development of deposit quantity in China has been achieved, and the efficiency has continued to be reduced. There has been a growth of deposits in the past few years and a trend of maturity. The stock of prime deposits with higher interest rates has entered a cycle of concentrated resizing, especially for three-year deposits, and the reduction of Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited will continue to facilitate a competitive advantage.

And our third measure to be taken is to have overall a range of all sources of our funding. We are going to follow the pattern of the social capital flow and also on the basis of successfully handling the transfer of regular funds due for maturity and at the same time we need to make a formulation for the general deposits and central bank loans and other inter-bank deposits and accelerate the transformation of the settlement payments and other deposits and all together we want to optimize the growth structure of the source of capital and fourthly for the second half of our year we are going to where we are going to strive to maximize the benefits derived from the repricing of deposits and also we are going to strengthen the differentiated management of deposits throughout the whole bank to make the cost of the payment of interest to drop gradually. Thank you for the question. I'm Yang Jingxin. I'm from China Business Newspaper. We know that the county-level business is showing the advantage, differentiated advantage of ABC's operation, and we know that there is a very large proportion of such part of business. So my question is, what is your plan for the next step of county-level business development? and are there any long-term or short-term plans? Thank you for the question. I'm going to answer your question. And from the start of this year, ABC has followed the country policies to help the rural revitalization and the support to the rural and agriculture and the farmers' development. As we have shared, according to the 15th Five-Year Plan of China, we should promote the high-quality development of rural area and the rural economy and to form a long-term mechanism of modern agriculture development and to better expand the great results already achieved by poverty alleviation efforts of China and that is also the future direction of ABC's development So for ABC, we will always hold on to our banner of serving the agriculture, the rural economy, the rural area, and the farmers. We will always try to improve the contribution of county-level business performance. We hope that our county-level business can always account for about 40% of the whole business. And we are going to do the following things. First, to serve the agriculture, the rural area, and the rural residents will always be our priority. We are going to have the provision of all kinds of resources to achieve this goal. And the financing at county level is mainly about credit and focusing on the important agriculture-related project in the 15th Five-Year Plan of China. We should know that there are some realities like the living condition in the country level is not that good and there are very large demand for the credit. So we are going to have targeted policies and measures to deal with the real situation. And we hope our credit and our businesses can solve the real needs of the rural residents. And at the same time, we are going to work with the government and other industries to Especially in terms of the supply chain, the value chain, and the industrial chain of agriculture. And at the technology level, aspects of agriculture development, we are going to introduce more policies and technologies to the key quantities. and to introduce the key mechanisms of our bank and of the whole economy to the key counties and rural areas. And at the same time, we will know the exact goals of rural agriculture and the rural area and the resident development. We will make our efforts to build some products that can serve the construction of the modern rural service center. Also, we need to follow the strategy of our country. We will make our 15th five-year plan to serve the rural area and to apply our policies, strategies, and technologies to our agriculture and county-level service-related programs. And in terms of integrated service, we are going to have the special financial debt and the programs offered to the rural area and agriculture-related customers to better serve the rural revitalization and the rural residents. And, of course, at the same time, we will always stick to the control of risk as our bottom line. While we are serving the real needs of the rural area, we should always implement the regulations in terms of all kinds of retail and other services. Especially, we are going to improve our level of supervision of future risks in certain industries. And also, we are going to pay attention to the legal compliance management of programs related to agriculture and the rural residents to make sure that the cost-level economy remains stable. And at the same time, we are going to improve the mechanism of the agriculture, rural area, department management. Management is always the foundation, and that is very important for us to improve the service quality we can provide for rural revitalization. And also, We are going to prioritize our country-level business in terms of the policy, resources, and the future plans, including the financing, the human recruitment, and the new channel development. And we are going to build more networks at the town and country level this year. We're hoping to have 2,000 more of such points this year. and also we are going to offer more online services to more county level business customers and also we are going to use AI and other technology to empower our service for the rural area and the rural residents and agriculture related business and we hope we can improve the experience of our customers thank you so much for your answer now let's invite question from online participants. Thank you so much for this opportunity. My name is Peter Zhang Yi. I'm from J.D. Morgan. I want to congratulate ABC on your performance. My question is about your retail business. We noticed that you have more than 900 million individual customers and the individual Deposit is also achieving a very high level, about $3 trillion. So what will be the key of your future individual-related business, retail business?

Thank you for the question. I will give the floor to Mr. Ling to answer.

Thank you for the question. The retail business has always been the strategic basement, foundation of ABC's development. It is a really, really important position in ABC's overall development. For the first half of the year, ABC has followed this requirement of our party and central government to do the right thing and to achieve the right results and to do the difficult things correctly. In order to do that, we have five priorities in financial services, and that is what we have done. and also we have promoted the retail business in order to help the development of the internal demand for our economy and we have provided a very professional and very targeted services financial services for our agricultural related customers and we have requirements for our retail business and to briefly sum it up it is we always require that our NE service related to the agriculture and the rural area should make a step forward, should make improvement every day. I have some discussion with my colleagues. We believe that a step every day is not easy to achieve and it's not difficult to achieve also. But if you want to achieve it, You need to know what should be your capability needed, your resources needed to achieve it. You need to make concerted efforts. You need to say a lot of things, do a lot of things, and to work with a lot of partners in order to achieve that. So for us to work in the retail business, is very important, especially for our future high-quality development. If we look at our statistics until the end of June, the deposit of individual is near $21.3 trillion, and this growth is also very high. It's near $1 trillion, and that is ranking number one of all major banks. and we have also achieved 3.95 trillion in the individual loans and increase number and that is also helping us to achieve the increment of 309.5 billion yuan and the balance is also ranking number one in all counterparts in all other banks so what we have found is that behind the 900 million customers 900 million accounts are 900 million units of families and their trust and so this whole number of individual customer amount to the financial assets of them will amount to 25.7 trillion and that is a really large number and at the same time we have the diversified service provided to different groups of people like the elderly customers, the people who gain salary and the new citizens and different types of customers. and also the cross-border service is also maintaining a very fast growth at a very high level and we have achieved 71.1% of physical precious metals sales and also additional and the Partnership sales reached also a very high level, 112, and also the ADM values are very high. And if we look at the non-performing loan ratio of individual loans, it is about 1.39%. That is a relatively low level. So if we look at the quality average, of asset of the whole retail sector, we can see that we are having a long-term planning and we are having a stable growth. And we have always put our customer at the core of our future development. We hope to obtain the satisfactory response of our customers. It is like a test stone for the quality of our service. So for the next step, we are going to further implement like the four session of the four plenary session of the 20 years central economic work conference and also the central committee of the parties meeting and also other policies we are going to further optimizing our whole system and to transform our businesses So for the retail sector, we have four aspects that we need to make progress. The first is that we need to have a very solid foundation for this 900 million customers, individual retail service. And this retail service is covering a very large range of customers. It can be regarded as the most comprehensive, the largest, the inclusive finance. So we need to make our most effort to serve our customers, to make sure that the development of finance can benefit more customers. And more specifically, we need to have a very solid manner of taking to develop the elderly care related financial service. And also, we are going to pay more attention to other aspects of social welfare. and the brand of elderly care finance of ABC is called which means the elderly care of every cultural bank of China. And we are going to make our efforts to build a comprehensive system of the elderly care related financial service in different branches of different areas of the country to provide more people with high quality elderly care.

of the financial services to the senior population. We will also help include the multi-tiered and multi-teller old age insurance system and optimize individual pension accounts. One part, one part central, the director sales financial products and services so that more people can enjoy of Quality Lines in Old Age. At the same time, we'll continue to defend the target platform such as the Golden Rice Bowl restaurant as it may extort financial innovation in the elderly care scenario. The Junzi Corporation with the government's elderly care institutions, elderly care associations to build and integrate the ecosystem of finance and life. Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited their fertile soil of rural revitalization in this regard will continuously optimize and improve the platform for food and animal services in rural revitalization applied to provide door-to-door services for the primary teams. We have about more than 20,000 primary teams serving rural areas to provide door-to-door services and we will use the strategy to the environment. We also focus on we will focus on the one product. We will tried to enforce by exploring new pathways for rural services. And we have felt very vividly, and we realized that individual loans and business loans, why can rural capital loans be achieved? Overall, they are very stable, but they've got well-controlled. An important reason that we go deep into the ground line to truly understand the unique features and also the development needs in different regions. That is what we call one country, one product. One town, one product. One village, one product. These are crucial for us to sell in rural households loans and business loans and they are of great help. Thirdly, we should take effective measures to support the development of small and micro enterprises. We should appear to benefit both enterprises and the people and regularly implement the coordination mechanism to support the financing of small and micro enterprises which we have been in health and support. We should also do a job in the exclusive finance and focus on parts, wholesale markets, for business districts and other chains to optimize the service process Bank of China Limited A new ending for boosting domestic demand. ABC actively responds to the national holidays to expand domestic demand and boost their consumption actively. If you met the 14th private plan for spending consumption and the work requirements and the deployment in it, we will support and expand consumer financial services as a priority. The first is to expand the public third-party payment services. Bank of China Limited Bank of China Limited Bank of China Limited will reduce the cost for clients to access services. At the same time, through high-frequency scenarios, we will drive a low-frequency financial yield just to provide the clients with a more comprehensive financial service ecosystem that understands them better. Secondly, we will step up personal credit services. On the one hand, we'll stabilize and expand traditional consumption. We'll fully promote the trading credit services focusing on automotive Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited The third focus is to hit back the AUM of over 25 trillion and set a new benchmark for wealth management. In this regard, we will firmly aim for common prosperity and remain true to the role as toxic family financial planners. We will celebrate the high quality of development of wealth management business of individuals from a Wealth is a brand of ABC Wealth Management. Our pension business is a Ford ABC Pension, which defines it. We name our wealth management business ABC Wealth. One focus is on product supply, with a continuous emphasis on supply-side reform, elaborating the advantage of group synergy and restorative integration of theory to the principle of reasonable expectations and a policy of delivery and making efforts to both innovation and selection. to drive the transformation of the world so that they show from focusing on category to emphasizing high quality. The aim is to create a product magic that is inclusive and of high quality. Second, to focus on surveys, innovation, and meet the financial management needs of clients throughout their lifestyle, life cycle, enabling one-stop service and provide a more professional and a warm environment wealth management experience. Number three is the differentiated advantage. We will develop differentiated advantages. We will use digital solutions to gain deeper insights, provide wealth consultation, and build smart asset allocation capabilities to provide more accessible services and expand the coverage of wealth management services. Also, we will further focus on the management of wealth for the customer in rural areas. Fourthly, we will further develop our 30,000 grantees, create a better life for everyone on the one hand. We will provide the greatest services to our clients, appealing to the concept of one client, one bank. and improve our visual business. The first is to strengthen the development of our community and devices and then learn around our branches and other client groups. We're building ecosystem financial services as a branch, taking it to rely on platforms such as mobile banking. And we come to provide and Financial Services to clients who also use online services and service to activate tools and online to offline integrated digital business model which is not simply telemarketing. The essence of our work is to drive with data and precisely understand the needs and the insights of the clients and to come up with matching products and services or channels to the client. So to realize the financialization of the bank's data, these are three aspects that I think are all playing very important roles. For example, in our third aspect, it's the operations. For these young people, they understand technology and sign the technology through training. They also understand finance. to training the autonomous under very good financial business knowledge. Our good visual branches, large banks, strong banks, one is the data account manager. His business performance can probably reach the business performance of 1.2. Always, we also realize that the construction of these three runways for the future development of ABC Digital Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited to study and be composed to adopt and with double protection. At the same time, it was mentioned that the tour's governance, the key is to practice the doing of the ideology, systematism, punishment process, systematical, and the inequality and parity feedback to the source of information data. Bank of China Limited Bank of China Limited of the people with financial service, working for our capability, demonstrating a sense of responsibility to lead to the stronger selling capability, deeper cut-loss probation, lower risk of loss, and a more balanced business structure to meet the growing needs of our customers for a better life. Thank you very much.

For the people that are sharing, of the brand.

And now we will come to the next question. Thank you very much, management team. My question is about improving finance from the many reports that we see. Improving finance has developed very rapidly and very good. And we continue to see that you want to ask about how to sustain the development of improving finance. Thank you very much. I will invite the Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited And also the increase of 532.2 billion yuan of increase and also a lot of new increase in terms of this SME

Customer-Related Inclusive Financial Services. So for the first step, we are going to do the four things. First of all, we are going to be deeply integrated to the general development of our country's plan, and we are going to follow the guidance of the 15th five-year development plan of our economy, especially we are seizing the opportunity related to the cutting-edge technology development and future industry development and also the upgrading of traditional industries. and we are going to focus more on the modernization of certain industries which will all be the foundation of our innovation for the inclusive financial services and what we will do is to create the financial services which are in line with the economic development and the market demand and at the same time we are going to make full use of the policy and the monetary tools this year There has been new financial tools created by the central government and the central financial and fiscal coordination mechanism, which can promote domestic demand-related policies and other related lists of policies to help the SMEs in terms of subsidies for their loans. and ABC is going to make full use of such policy tools to reduce the risk and to innovate the service related to products and to make the operation process of all businesses more smooth and to expand the development space for inclusive finance and at the same time we are going to also give full play to this mechanism to coordinate the financing of SMEs and we are going to make full use of this platform which provide us with the information related to the financing credit of SMEs for the stable legal compliance development and also at the same time certainly we are going to promote the digital development and transformation of inclusive finance On the one hand, we're going to promote the in-depth piloting of a digital transformation of inclusive financial services. And at the same time, we're on this pilot. We are going to create more high-quality products which can promote the digital technology-based financial inclusive services. and at the same time, we need to explore the possibility for us to use like AI agents and other technologies in precisely control the service process and to optimize our business operation and to control the risks. And firstly, at the same time, we will pay special attention to the control of risks, legal compliance issues and to explore and to carefully study the new policies related to the risk control and we will build a group of talent who can help to strengthen the source of all the risk control and to have an online and offline integrated comprehensive system which can control the risks and we are going to iterate more newer models of risk control and have a timely supervision and emergency alerting system for us to control the risks. Looking ahead into the remaining of the year, we're going to have a stable path for us for further development. And we're going to follow the guidance by the supervision organizations to have a stable investment and optimize the structure of development. In order to achieve that, we are going to improve the inclusive financial system quality, both in terms of its quantity and in terms of its efficiency. which can better stimulate the vitality of the market and improve the high-quality development of the society and people's livelihood. Thank you, Mr. Wang, for the answer. Now let's give the floor to another question from a participant online. Please have your question. Thank you. Thank you so much. I'm from JP Morgan. I'm Huang Ziao. The question is related to AI. So are there any measures for ABC to apply AI in your businesses? And for your next step, what will be your main focuses to make efforts to integrate AI more into your future operation? Thank you for this question related to deepening the use of AI. In fact, since the start of this year, has achieved a lot, especially in the smart banking sector building. And the smart banking is based on our development of the AI agent and it's led by the demand of real programs. And we have continued to improve the use of AI at a large range and at a high quality. And we have achieved four results in four aspects. The first of all is we have accelerated the innovation in terms of digital-based development of our businesses. And we have accelerated a lot of digital-based process and also this whole digital process has helped us to make the operation process more smoothly and help us in the application for credit for our customers. And at the same time, AI is helping us to expand the channel of customers We have the 11.2 version of the personal mobile bank for our individual customers and which can provide our users with more scenarios of financial services. By the end of June, our mobile bank users have exceeded 280 million and that is leading in all banks of China. And also, we are improving our all kinds of digital operation capabilities for different types of customers. And at the same time, we are using AI for risk control. For credit-related risk, we pay special attention to the supervision of risk in terms of any kind of inclusive financial services. And also, we have promoted the smart upgrading of the whole process of inclusive finance and also using AI to empower our process to deal with the risky assets. And also, we are using AI for more scenarios. And such application involves the entry of clients into the system, the tracking of their background, the risk control, and also the risk supervision in the financial process. And certainly at the same time, we have used the AI to lower the burden of our branches, especially the foundation level organizations. We have this so-called ABC Cloud, which is the ABC version of Open Cloud. And this ABC Cloud is helping our staff in all kinds of scenarios. For example, in identifying the green loans and in categorizing different types of loans. And also, we have created this Yiming, which is the AI assistant of ABC. And we have also created this smart brain, which can help us to identify the situation of a very large range and to deal with the difficulties and to provide the solutions for all kinds of cases in different scenarios. And at the same time, we're using AI in more on-stop situations, like for a lot of businesses related to credit card. They can use AI to call for help and to deal with the situation. And at the same time, AI is providing us at some very fundamental level, provide us with very fundamental support. Like AI is giving us very high-quality database. and to help us to have the structural transformation of our database and to empower our business operation and also help us to create the knowledge bank of our ABC organization. And at the same time, we have improved our whole matrix of AI tools. We have introduced the DeepSeq, Tianwen, and other large language model into our system, which has helped to improve our AI capacity to a trillion level, trillion data level. And in our next step, we are going to continue to improve the quality and efficiency of AI agents. We are going to do the following things. First is to deepen the use of AI agents in all kinds of scenarios and to create a long-term mechanism for us to use the AI agents in different ways. And second, we are going to continue to strengthen the support of AI at the fundamental level. We are going to use AI to further build our fundamental brands and to create solutions for all kinds of situations on the cycle of financial service. And thirdly, we should always stick to our bottom line, our red line, which is the risk control. We will always control the risk related to AI management. because the large language models, they are changing so fast that there will be some risks like the black box, the illusions of the AI. We are going to deal with these problems and we're going to manage the scenarios based on categorization to make sure that AI is stable and controllable. Thank you. Thank you, Mr. Wang, for answering the smart bank building of ABC. Now let's give the floor to this lady on the left. Thank you. I'm from 21st Century Economic Newspaper. We found that from the situation of 2025, the total proportion of founders talking financing has exceeded the loans in terms of the financing for agriculture. So my question is for ABC, what will be your strategy for your future investment and what will be the return on investments for securities in the future. Thank you for the question. Let's give the floor to Mr. Lin. Well, thank you for the question. Actually, in terms of the security business of ABC, we can conclude it in the following sentences. First of all, we have paid much attention to the high-quality development of securities. Secondly, we have always understood that we need to follow the general trend of economic development and have a solid foundation. And thirdly, we have always improved our trading capacity. And fourthly, we have expanded our scale of service in terms of investment of securities. And fifthly, we have a very high level of revenue contribution made by securities. by the end of June. There is this revenue of 17.85 trillion. That is year-on-year growth of 1.5 trillion yuan compared to the previous year. And if you look at the structure, long-term ones, including the five-year or more bonds, have a large proportion. And the ABC is having a relatively lower cost of holding. and also we are having a higher level of capacity of lowering the risk and higher capacity potential. So looking into the second half of the year, we can say that ABC is having a very adequate storage preparation and we have a systematic capacity to deal with the risks in the system. and the search capacity and the preparation can help us to deal with the fluctuation in interest rates. If we look at the overall market, we have to admit that the entire revenue level is relatively low, and the yield curve for banks is showing a very fluctuated one. we also know that the holding period of bonds, the appreciation in bond values and the trading opportunities is contributing to increasing the return on bonds investment. So that's our expectation for the coming next year. We know this year is the beginning of the 15th five-year plan of our country and ABC as the major company Bank of China and also as the fundamental and most important agriculture related Bank of China we are going to seize this opportunity and we are going to make full use of our position as a major Bank of China and we are going to follow the policy the monetary policy and the fiscal policy of our country and to improve the efficiency of financial market development for our next step we are going to follow this Bank of China Limited we need to know that because now there is this outside environment and geopolitical dangers and also the US Fed and the EU they are having all kinds of measures that we need to pay attention to and for the second half of the year we need to maintain a relatively stable attitude because the fiscal and monetary policy will remain relatively stable for the second half of the year

and the Bank of Europe have the possibility of increasing interest rates and with the overall market's creativity and the fluctuation of the market will be around the interest rate. So all these have an impact on our overall operations. First of all, in terms of R&D security, we will continue to fund the evaluation of the security market to improve the refined management. We also have some comprehensive operations on the industry in order to establish Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited in order to control the growth of the portfolio maturity. Also, we will emphasize the optimization of our tax allocation in order to better face the market fluctuation opportunity and prepare for the dynamic adjustment. The second aspect is that with the fluctuation in overseas markets, we will This is the first assessment. to strengthen forward-looking research and steadily carry out the treated investment business. The second aspect of the strategy is to focus on our main responsibilities to empower the real economy, improve for quality and efficiency. One aspect is to focus on serving the construction of the modern industrial system. Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited As a cultural development bank of China, when the EU bonds, we will maintain an appropriate level of support. We'll work together to strengthen rural revitalization. Thank you very much for the question. Now, let's give one opportunity to online participants. I will read the question. APT has achieved some good results in Fintech. What are some good prospects? Recently, non-definite investment has become a new force in the market. How does your bank account make up the full-time service for the ability to do every investment? That's a very good question. Let's ask the next governor, Wang San, to answer the question. Thank you for the question. FinTech is very important among the five major articles of finance. It is an important part of our coordination through productivity, achieving high-level scientific and technological self-reliance and self-improvement at the building of countries with strong science and technology and a strong financial country. Bank of China Limited Bank of China Limited and has served over 250,000 technology enterprises with a long growth rate of technology enterprises more than millions of technology enterprises in the industry. So, first of all, I want to set up keywords to maintain the feature. The first one is specialized, meaning very professional. The service system is very professional. We have set up a technology team as those that have all been in the branches and established technologies Fintech Service Center Indirect Innovation Hub, creating a three-year professional organizational structure involving fintech departments and specialized branches, and focused on cultivating a team of professionals who understand the industry, technology, and finance. In the first half of the year, we closely followed the National Geology Dispense Board of Science and Technology Innovation Centers, achieving full coverage of the Beijing Engine Survey region, the Yangtze River Delta region, and the Guangdong, Hong Kong, Macao, Greater Bay Area, as well as 26 key cities in other regions. Again, innovative credit policies adapted the characteristics of technology-based enterprises, which are high-tech, high-risk, and asset-like. We've broken through the traditional credit evaluation model and developed differentiated credit products for different life cycles that is a start-up, growth, and mature period. So it's an innovation and a global attitude and great belief in introducing the guidance of the science, technology, and study policies. Also, we try to make sure the models are well matching the needs of our data. Number three is the comprehensive. So that's a series of four scenarios. For the entire innovation chain, Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited For example, the Hidalgo-based launched a convenient online product, Ke Jie Loan, for small and medium-sized micro tech enterprises. Recently, they innovatively promoted the R&D Loan, and in Zhejiang, Shanghai, and other places, the token loan-serving AI companies essential, which are widely welcome to buy the market. In the first half of the year, the number of tests Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited And for the second question, we know that a good investment can be done through market trading, sharing business, and elaborating energy. In the past, it played a very important role in recent years in accordance with the strategic We support the industrial development in Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited that they will focus on investing early, investing small, and investing for long-term, as the ABC Group has extensive channels and a large client base, and they've had obvious advantages in inclusive financing and technology finance. ABC's investments and leverage improve the advantages to effortlessly select industrial threats and recommend high-quality projects for technology companies in the C, and the start of the stages to provide the startup capital under a company, early stage technology company with patient capital helping them go through growth cycles and provide integrated strategies including equity investment, loan lease, and consulting to help them grow stronger during the 15th target plan. ABC will continue to focus on technology finance impact, making the top priority in its strategies focused on supporting Bank of China Limited Bank of China Limited Bank of China Limited Bank of China Limited Governor Wong introduced that the cash dividend distribution percentage will increase to 31% from 30%, which reflects the importance of ADP, cash, and fees, how to stabilize the dividend ratio in the future and better reward investors. Thank you. Thank you very much for the question. Thank you for the question. In order to enhance the In fact, the sense of gain, the dividend that is reduced to 10% is increased to 31% from 30%. The ABC UDNP had proposed a distribution of inter-dividend for 20.6 to all shareholders, making it 1.297 yuan per 10 shares. In fact, the master's return is an important requirement Bank of China Limited High-quality development is the main theme and the balance and the skills, quality, and efficiency of development that Governor Wang had shared with us that the net profit of ADP had leading the industry in 46 consecutive years.

And looking into the future, we will have more high-quality services, main business services provided. and secondly, the second thing we do is that we will have a long-term, high-quality information exposure. This is very important for our relationship, our trusted relationship with the investors. And what we will do is, on the one hand, in terms of the main business information disclosure, like the strategic and financial service information disclosure, we will strengthen the will strengthen what we do in expose more related information and at the same time we will have more diversified information disclosed and also to respond to the suggestions and the calls of our investors to answer to the market. At the same time the Agriculture Bank of China will have a sustainable way of development and to safeguard the sustainable value of our investors. And since the public listing of ABC of 2021, there has been a 12% and 11% of the A-share and H-share stock of return for investors of ABC. And in 2023, the number have reached 34% and 36%. So that is the number, the statistics and at the same time we have always paid back our investors with high level of dividend. We have remained the level of dividend above 30% and the whole dividend amount more than 987.2 billion RMB and that is a stable and sustainable return for our investments. And we are also going to have more options like the intermediate profit distribution to its shareholders and other measures. So in the future, we are going to have more diversified ways to maintain this high level of dividends return and the interest return to share the results of dividends with all of our investors. So we have had very thorough discussion today, and due to time limits, we will have the floor open to the last question. Please give the microphone to this madam. First of all, thank you, directors, for this very precious opportunity to be the last one to ask questions. I'm from CICC. I'm . We have noticed that in recent years, ABC is having very good business performance and creating A lot of dividends and returns for the shareholders. So behind such great results, there must have been a lot of strategic planning and very efficient implementation of strategies. So here I would like to ask, what will be the key areas of development for ABC in the 15th five-year plan on China's economy? Thank you for the question. I'm going to answer your question. Just as you have said, in the 14th five-year plan, ABC has achieved a very great business performance result. And just as you've said, this has a lot to do with the strategic planning of us at the beginning of the 14th five-year plan period of China and also our precise implementation of this plan. so in the 15th five year plan period we believe this is a very important period for our country's economy to have a solid foundation of economic development and high quality and speedy economic development so on this very important time point we are going to follow the guideline and the policy of our central party committee and our central government and the ABC is also having our own 15th five year plan we have already submitted that to our board of directors for the review and during the 15th five-year plan of ABC, according to our plan, we are going to implement the socialism idea with the new era's characteristics and also to serve the people and to serve the real economy and to have the reform and innovation as our main driving force and to follow the guidance of our party and to strictly strictly follow the policies and our goal is to serve the agriculture rural area and rural residents and to serve the people and to be a bank of inclusive financial services and in this way for China to improve its national capacity with financial development. We want to make our own contribution in this new chapter. So there will be some measures taken. First of all, we will put the leadership of our party, of the political ideas at the center of our development. The leadership of the CDC will be implemented into all steps of our company and our bank's development and management. The ideas and ideologies will be our tools for high quality management of our banks. And also anti-corruption work is very important for our banks. We are going to follow the anti-corruption measures taken by our party. And at the same time, we are going to stick to our main business. We will always have this goal of being the leading bank in rural revitalization and we will put the service of the agricultural rural residents rural area in the core of our businesses and to make our own contribution for the modernization of agriculture and the rural areas. We will improve the quality of the daily inclusive financial services for agriculture and the rural area and also we will have more innovative mechanisms for the agriculture and the rural area and also Promote the county-level business development steadily. And at the same time, we are going to be led by the new ideas and patterns of development. And we are going to pay special attention to the key areas and the weak areas and to provide them with enough financial support. We are going to improve the six-network building and to provide the strategic support for the strategic industry. and we're going to give priorities to the five main chapters of financial development and we are going to improve the international development of financial service sector and high quality development of financial sector. And in addition, we hope our financial service can help our people. We want to serve the people and we hope that because we have the advantage with the widest coverage of customers and we want to make use of that advantage to benefit the people and to improve the livelihood of the people and the welfare, social welfare of the people and to provide more diversified financial services to different groups of customers to introduce more diversified financial services and products to every household and to improve the life quality of the Chinese people. Smart Bank for future high-quality development of our financial services. We will integrate the AI and other technologies into our existing business and to create a new ecosystem which human efforts and machine efforts and AI efforts can be coordinated for our digital transformation. and we will have the AI to lead the change in paradigm of our digital finance and to create new competitive advantages for us in a new era. And sixthly, we will stick to the path of stable development. We will always put the risk control as the main topic of our financial services, put it at the core, and to create a comprehensive system to innovate the tools and measures to improve our ways for long-term and ahead-looking risk control measures. And we need to improve our new ways of risk control in this new era of technology because high security level is very important for high-quality development. And that's our plan. And for the next step, we are going to implement all the plans to put all things into solid work to change to turn the blueprint into a real scenery and to make our own contribution for the 15th five-year plan of our country. And that's my answer. Thank you very much, Mr. Wang, for the answer. And ladies and gentlemen, thank you so much for your participation in this 2026 Interim Result Announcement of Agriculture Bank of China. And I also want to thank all the Investors, analysts, and journalists for your long-term attention to ABC's development. And I also want to thank the director team. Thank you for, under the guidance of Mr. Wang, thank you for sharing with us your experience. So in the future, if you have any further questions, please don't hesitate to ask our team and the department for further information. And that's the end for today's meeting. and today's announcement. Thank you very much.