Bank Of China Ltd Ord

Dear friends from the media, good afternoon. Welcome to Bank of China 2021 Interim Announcement. My name is Mei-Fei Qi, Board Secretary of BOC. Today, I myself and the spokesperson of Bank of China and the General Manager of President Office will co-host this meeting. First of all, I would like to introduce the leaders to you. They are Vice Chairman of BOC, President Liu Jin, Executive Director, EVP, Mr. Wang Wei, Executive Director, EVP, Mr. Lin Jingzhen, EVP, Mr. Zheng Guoyu, EVP, Mr. Chen Huaiyu, EVP, Mr. Wang Zhiheng, Chief Information Officer, Mr. Liu Qiuvan, and Chief Risk Officer, Mr. Liu Jiantong. Because of the pandemic control concerns, this interim announcement is convened. While video conference, we would first give the floor to Mr. Liu, President of the Bank, to introduce you 2021 interim results of the Bank. Then we will have question and answers. For a long period of time, dear friends from the media, Investors and analysts have paid continuous attention and support to the bank. We are deeply impressed by your support. And we have many investors and customers looking at our press conference online. Thank you for your efforts and thank you for your attention to BOC. Now I want to give the floor to Mr. Liu, President of the Bank, to introduce you about the interim results of the bank and the key work's progress and also our plan for the future. Thank you, Mr. Mei. Dear investors, analysts, friends from the media, good afternoon. Since the pandemic started, we have convened our result announcement in such a video conference way for many times. We previously hoped to have on-site press release However, many things changed our plan. Because of the pandemic situation, we can only convey our press release in such an online way. In March, we have made announcement about annual results. I have introduced to all of you that we are at the starting year of the 14th Five-Year Plan, and the Bank of China started a new phase of development and we have started a new journey to establish a global level, first level modernized banking group. Half a year have elapsed. I'm very confident to introduce you the interim result of Bank of China. We have made a steady progress on many fronts. And we have enjoyed high quality growth. First of all, the data we released today shows that we have a steady growth of fiscal results. Realized operating revenue, 302.9 billion, year-on-year increase of 5.53%, after-tax profit and profit attributable to shareholders increased by 9.96% and 11.79% respectively. Operating efficiency increased continuously. ROE increased 0.87 percentage point. reached 11.97%. Cost income ratio was 24.06%, a reduction of 2.67 percentage points. Ascent and liability scale increased steadily. Total asset exceeded 26 trillion, an increase of 7.85%. Loan amount grew by 8.44%, and also The amount of loan to total asset reached 57.18%, an increase of 0.43 percentage point. Domestic R&B loan enjoyed faster growth. Long-term and mid-term loans percentage increased. Total liability increased by 8.31%, and domestic and foreign forex deposit increased, and we have made record deposit growth. And risk control efficiency have increased. Non-performing loans, special measure loan amount and ratio enjoyed a double reduction. And the provision coverage ratio increased 6.42 percentage point to 184.26%. And we have generated capital internally, and we have supplemented our capital externally. Capital adequacy ratio increased. And also... Bank of China's market influence further increased. We have won many rewards, and also the external credit rating of Bank of China remain among the highest within Chinese banks. We also achieved good result in other aspects. First, we have support real economy. Domestic RMB loan increased by 863.2 billion, record high. Investment in local government bond, 246.4 billion, and our market share increase. Inclusive loans grow by 35.8 percent, and we have achieved to increase to control requirements of the regulator. Strategic new emerging industry, green financing also increased. We have increased our lending to manufacturing – advanced manufacturing. Long-term and mid-term manufacturing loan increased by 18.4 percent, and we also got deeply involved in reform and opening up. International settlement growth by 44 – 45.24 percent and ranked as number one in the market. Cross-border RMB clearing amount increased by 35.4 percent, number one among the world, and we also have a customer to issue bond, and we participate in the Belt and Road Project. We facilitate the development of offshore RMB bond market. Second, we focus on one-body, two-wind strategy. In the past half a year, our domestic commercial banks are developing in a good manner, while domestic and foreign foreign currency deposit increased. Well, one body, this is our cornerstone, and this is further consolidated. And for overseas deposit and the lending, they increased by 13.86%, 11.95% year-on-year. And we further enhance intensive management. We have one policy for each bank in overseas regions. and we further optimize our service networks and online channels. We further enhance our management of integrated operations. We have set up an integrated operation coordination office in seven branches to enhance customer referral and resources sharing. Secondly, we focus on development of key projects and key businesses. Personal banking contribution and the market competitiveness increased. The number of effective individual customer reached 321 million accounts, and also customer financial assets exceeded 11 trillion. While domestic individual account operating revenue, non-interest income contribution reached 48.78 percent, 56.8 percent. 82 percent, respectively, and the number of medium to high-end customers increased by a fast manner, while consumer finance further increased digitalization and other scenarios. Credit card installments grew by a good margin, and corporate accounts also enjoyed enhanced marketing and service capabilities, and the number of corporate accounts increased by 19.89 percent, and the total financial corporate asset increased by 6.58 percent year-on-year. And also, deposit from government agencies increased, pension further developed. We also updated our inclusive financing. We also promoted digital financing. Fourthly, we further promoted digitalization of the bank. We focused on two projects. One is enterprise-level architecture establishment. One is data governance. We focused on five capabilities, that is, enhancing customer experience, sharing product services, and optimize business process, enhance risk control, and enabling our staff at various levels. We are making progress in scenario development and technology enablement. In July, we have issued the seventh version of mobile banking, and we further provide special services like more scenarios in life, wealth management, and Winter Olympic Games. Fifthly, we further enhance risk management. We further strengthen our comprehensive risk management system. also achieve digitalization in risk management. In the first half, we followed the 14th five-year plan of the country and of the bank. We developed eight major finance projects, optimized the credit structure, and strengthened our credit approval management. We focused on risk-control in key areas, optimized our NPL, resolution and asset quality continuously consolidated. And for various risk indicators, we have satisfied the regulatory requirements by continuously improvement of liquidity risk, warning systems, and stress testing. Since the beginning of last year, we began to focus on top design and grassroots suggestions We have started the combining of 14th Five-Year Plan, and we pay attention to our alignment with the national strategy. After several rounds of discussion and revision, this plan have been printed out to guiding the group. We will further use our 14th Five-Year Plan as the blueprint to guide the development of commercial bank and guide our globalization and also integration. to turn ourselves into a global first-level modern banking group with activity, agility, and making breakthrough in key areas. In the next steps, we will make breakthrough in the following areas. One is promoting one body to win and develop. Second is to follow the rules of economic social development and make economic transition and promote eight major financial area. Thirdly, promoting digitalization. Fourthly, is to coordinate development and security, focus on risk management. Fifthly, we will seek growth among transition and among changes, and we will build a better culture. Bank of China will make steady ahead and try to implement the 14th Five-Year Plan and try to connect the world and creating benefits for the society, turn ourselves into a first-level modern bank. and to make our contribution to the rejuvenation of Chinese nation. Thank you, Mr. Liu, for your speech. Now we have question and answer. We first give the floor to investors and analysts. Every one of you can only ask one question. Please identify yourself before asking questions.

Now we

got connected with the first question.

We have the first question to be asked.

Thank you for giving me this opportunity. I'm from Morgan Stanley.

My name is Xu Yan.

Now people pay more attention to credit growth and credit breakdown. In the first half of the year, Bank of China enjoyed rather fast credit growth to support economic recovery. Can the management introduce us corporate lending growth and also lending breakdown? What is your plan for the next half of the year? Recently, we are seeing central bank meeting with commercial banks about the next year's plan, the next half year's plan. So I want to know your plan. Thank you for your question. Credit business have attracted attention from the market, and credit business is an important business of Bank of China. So the floor is given to Mr. Lin, EVP of the bank.

Thank you.

Thanks to our friends from Morgan Stanley for your question. Yes, as we all know, for banks, we play a very important role in terms of promoting socioeconomic developments and in terms of improving people's livelihood. For our bank, BOC, we have been catching up with the pace of the time. We have been serving the national strategies. We have been supporting the tangible economic development. In the first half of this year, BUC has implemented the government's policies for six protections and the six abilities. We have lent more to inclusive finance, green finance, strategic new industries, manufacturing, et cetera. According to the coordinated agreement, principles, especially for key areas and for key industries. They have got more lending from the BOC. By the end of June, the domestic corporate loans balance was 7.1 trillion yuan, up by 631%. billion yuan as compared with the end of last year, all representing an increase rate of 9.72 percent, hitting the record high. In terms of the recipients, mainly our lending has been going to inclusive finance, green finance, strategic new industries and manufacturing. For the regulators' requirements, we lent 780 billion yuan up by 200 billion yuan to those key industries. For strategic new industries, the lending were 407 billion yuan up by 180 billion yuan as compared with the end of last year, representing increase rate of 8.35%. And for manufacturing, The lending increased by 18.4%, 25%. Private sector loans up by 138 billion or 7.9%. The increases rates often have a hit record. In terms of geographic capabilities, we have supported the key geographic development programs. By the end of June, to the Yanzi River Delta, we lent 196 billion yuan to Beijing, Tianjin, and Hebei, 68 billion to the Greater Bay, 105 billion, and the increase of lending to these key areas was 10.3%, much higher than the average. And for the branches in 56 key cities, the lending was 4.8 trillion yuan. In the second half of this year, BOC will continue to implement the government's And we will follow the 14th five-year plan. We will maintain the reasonable growth rate of the corporate lending, especially that's in line with the government's policies for new development landscape and tool circulations. We will also lend more to foreign trade partners. so that foreign trade companies can have more orders to control risks, especially to the SMEs in the foreign trade. We will give them more lending support, and we will also work with insurance and other industries. So for export financing, it will have a greater coverage, and we will also have more online and scenario-based services. Second, we will also give more lending to the key projects in key areas according to the 14th five-year plan. There are 102 major projects. There are also local governments and major infrastructure projects in terms of 5G and ultra-high voltage power transmission, etc. And for the new strategic industries such as biomedicine, new materials, etc., they will also get more of our support. For aviation, aircraft, the railway and other infrastructure projects, they will also gain more of our support. Transport and communication is very important. And we also serve the national interests in the area of energy and green development. For the eight financial service areas, we will develop new business models. We will have a high-quality growth of the corporate lending And we also make use of our fintechs and our comprehensive services so that we can provide all necessary services to companies throughout their life cycle. We will accelerate green financing to be an important player of eco-civilization for the green transport, clean energy, energy conservation and efficiency and industrial value train. and they will become our priorities. We will have more integration with these strategic industries. And also, we will further promote overseas financial services developments in terms of structured financing, international settlements, and trade financing. We will play a bigger role in terms of financial innovation along the One Belt, One Road initiative. Thank you.

Thank you, President Lin.

Thank you, our President.

So the next question.

Yes, we have the next question. The floor is open. Yes, I'm very happy about this opportunity. I'm from . I have a question about the wealth management. It's a very broad concept. Many analysts are very interested. also have a higher demand and expectation of wealth management. The country also has reiterated the national strategy of a common prosperity. I believe major banks like BOC have an important role to play, and banks also, I think, are in the right line to transition. Many banks take wealth management business very seriously. BUC, I think, has a strong foundation in terms of personal finance and the wealth management. In recent years, you also have carried out a lot of reforms, advancing a lot of attention for the markets. So for the personal finance and, in particular, the wealth management business, I would like to know the progress so far this year, and I also want to know your future targets, strategies, et cetera. This is my question. Thank you. Thank you, Mr. Ma. Yes, you are right. For personal finance, especially wealth management, it's very important because the Communist Party's principle is common prosperity. Common prosperity for all people is our national strategy. I give the floor to VP Zheng. Yes, I would like to thank the friends from CITIC Construction Investment Company. BOC has put clients in the first place and has implemented the national strategy of common prosperity. By value creation, our reforms in personal finance have unleashed the department's potentials and have realized high-quality developments of wealth management. First, the returns are significantly increased for the bank. Our revenues from wealth management increased by 25% in the first half of this year, the fastest among the big four. For our clients, the returns from these investments also outperformed the market. In the past one year, The equity funds, products, and the portfolios had a return rate of 38.8%, much higher than the industry average and also the highest among the big four. Thus, our wealth management products have created value for our clients. Second, the scale is increasing very fast. For the whole group, the financial assets with us from the personal clients are more than 11 trillion yuan. the growth rate is the highest among the big four. For our private banking clients, the financial assets with us are more than 2 trillion yuan, and the growth rate of the number of medium to high clients and the amount of financial assets also are the highest in the past three years. Second, optimize the structure. For the asset structure, we are the only bank among the big four to have a positive growth of the investment financial asset, the investment asset proportion increased by 0.7 percentage points as compared with the end of last year. And there is also optimization of the structure of our clients. The growth rate of wealth management clients is higher by 5 percentage points. And firstly, digitalization. We have released version 7.0 of the mobile phone banking. We have upgraded the wealth and the fund management channels. We have the exclusive zone for private banking. In the first half of this year, the mobile phone banking investment and wealth management clients, in terms of their numbers, increased by 10.81 percent. For the BOC Smart investment service, it has a 2.0 version. It has sold products worth 29.6 billion yuan, with the total number of clients more than 250,000 yuan. The return rate is 41.68 percent higher, 27.4 percentage points higher than the industry average. We will continue to implement the 14th Five-Year Plan to serve national interests, tangible economy, and the people's livelihoods. the digitalization asset lines, and the professional strategies. We will also push forward the development of the wealth management, cross-border financing, and consumer financing. And according to the requirements of the 10th meeting of the Central Financial and Economic Committee, we will continue to put clients in the first place by creating more value and by having a win-win situation with the bank. promote development of inclusive financing to provide more wealth management services in the primary distribution, secondary distribution, and the third distribution. We will make use of FinTech so that the wealth management services are available to all households. We will also develop more scenarios and settings so as to better integrate financial and non-financial services. We have six strategies. Switching first from the seller's market to the buyer's market. We will have our open wealth management platform to improve the product competitiveness and the client's return rate. We also switch from single products to product portfolios so that with the BOC smart investment, we will be able to provide differentiated asset allocation services to different clients. We will also switch from the trading driving to all journey service driving. That's to say, we are the advisors and the consultants for our long-term clients. And also, we will make our team more professional. We will increase their capability and capacity. Fifthly, we will switch from more offline marketing to online marketing. With our mobile phone banking, we will embed more settings and scenarios and channels in the mobile phone banking. The mobile phone banking can also provide smart marketing, smart risk management, and other capabilities. And the sixth, also, we will make full use of the BOC Advantage as a global comprehensive banking group. We have the Asia-Pacific region private banking platform and BOC International. They can help provide technical, professional, comprehensive, and global financial services to high net worth clients. Thank you. We will have the next question. Yes, I'm very happy about this opportunity. I have noticed that in your financial statements, you have a good growth of the brokerage and the commission. the agency fees, but Ning is under stress. I want to have your elaboration and your next steps. Can you also give us the forward-looking statements about the future brokerage and the commission agency fees and Ning? Yes, thank you. I could see that for our mid-term financial statements, you are a careful reader. You also have pointed out the very important highlights. Now I give the floor to VP Wang. He will answer the question. Yes, thank you. Thank you for your interest in BOC's brokerage and agency commissions and the fees. In the first half of this year, these fees were 46.8 billion yuan, up by 11.93% year-on-year, and they accounted for 15.46% of the group total operating costs. revenues, the ratio was up by 0.88 percentage points. Mainly, for the domestic funds sales, wealth management, internet payments, custodian services, and overseas brokerage fees, they are the highlights. They have contributed the most to our increase of brokerage and agency commissions and the fees.

And we will enhance our innovation and try to meet the demands of the market as well as the demands of the consumers and their investment demands. And we will try to increase a steady growth of the fee-based income and revenue, and we also need to enhance our international settlement as well as the selling and buying of the foreign exchange. Those are the traditional business, and we will consolidate our strength. The second one is we need to grasp the opportunity of deepening the market reform and try to use this opportunity to address consumers' demands for investment. And we will just increase the quality of our products, for example, fund surveys, asset management, as well as custodial business. The third one is to address the digitalization of the economic development. Based on different scenarios, we will have the multi- measures for the customer acquisition, customer retaining, and also we will just enhance the increase of our online revenue generation. So that's about the fee income. And as for NIM related business, in the first half, the NIM is 1.76%, nine base points lower than the previous year. The major reasons are as follows. First one is the interest rate is decreasing at the market level. The last year's LPR has been decreased, and we also have the repricing of the loan, which are matured. So all these are the negative factors influencing our use of the NIM, because the use of those loans decreased. Therefore, the NIM is decreasing during the past few months. So we will just try to take some measures to reduce the impacts, and we will have a dynamic adjustment of our operation, and we will optimize our asset structure. For example, in terms of the pricing and volume, we will just increase those two, and we will try to expand the low-cost fundraising sources and try to control it, in particular control the cost at the reasonable level And we will also try to satisfy the comprehensive financing demands and increase our mid- and long-term loan disbursement. And during the first half, you can see that we have 1.77 percent compared with the previous half. And during the second half, we expect more pressure for NIEM increase. And we will prepare for that in a proactive manner. and we will try to balance the deposit volume as well as price, and we will increase the demand deposit proportion, try to control and develop the demand deposit in a quality manner, and also we will try to increase the proportion of mid- and long-term loans and try to increase our capacity for pricing and then improve the NIM in the future half. Thank you. Thank you. So let me add a few words. First of all, I'd like to ask your question. You raised a very good question, and your question is a praise for BOC's performance during the past six months. As you mentioned, we have good fee-based business performance, but NIM is not that satisfactory. Where do we get NIM? That is the difference between the deposit and the lending. So for the... deposit market, we do not have a big difference in terms of the interest rate, and the liability of BOC is not changing either. So NIM is under pressure because we actually try to support the real economy. We actually sacrifice some of our profits to support the small and medium-sized enterprises. So next one. Next question. We will, based on the EVP Wang's answer, we will try to have better performance in terms of the volume and pricing of the deposit, and we will do better job for NIM during the following half year. And also, we believe that with the recovery of Chinese economy, the economic fundamentals will be better. So we will improve our business, reflecting that better recovery. And we will also respond to our national strategy to support the real economy. But we believe that we will have better performance in terms of NIM. And as for fee-based business, we have the 11.9 percent increase, and we will do our best to increase the business. of the fee-based business and we also switched to the retail as well as the corporate lending and I believe that in all these areas the fee-based business will have better performance in particular in terms of the transformation of the retail business and We have the mobile banking 7.0 launched a few days ago, a few weeks ago, and this is a very good news for BOC. This is a great means for BOC to acquire a customer, and we can also, through this channel, provide better services and products. Of course, at the same time, BOC benefits because we have more fee collected through this business. And recently, For the private banking customers, we also have in-depth research and analysis, and also we have more than 100,000 private banking customers and more than 20,000 private banking customers. They are high net worth customers, and we can see a higher percentage or proportion of the high net worth customers. customers, we will dig deeper in terms of their potential, in terms of how we can improve our service quality. And we believe that we will have more income generated from fee-based business. So we are very confident about the future. Thank you. Thank you, President Wang. And also, thank you, Professor, sorry, thank you, President Liu, for your questions. Next question. You can raise your question.

Thank you.

My question is related with green financing this year. Our country proposed a target for carbon neutral and carbon peak. For our society, this is the system transformation and of course it will have some new requirements for banking business and at the same time bring opportunities. I noticed that the BOC has already integrated green financing as one of our eight major areas for our 14th five-year plan. So do give us the introduction about the green financing development during the first half and also what are the concrete plan and targets for BOC's 14th five-year plan. Thank you. Thank you. Thank you very much. Green financing is a very hot topic all over the world. BOC prioritized green financing in our strategic development and also This is the very macro question, so I would like to give the floor to President Liu to answer your question. Thank you. Thank you for your question. And with the 2030-2060s carbon neutral and carbon peak target, so the peaking and the neutral of carbon is not a concept there. It's already changed to action. BOC proposed green financing as our top priority and try to support the development of green financing in BOC. Last time, I gave you the introduction of the eight major areas for BOC to develop in the future. First one is the science and technology. The second one is green financing. We also, in the first half, we have a leader group for the development of green financing and the green fintech. The chairman is the group leader. And also, we have already uplifted the committee of green financing in terms of the administrative level. I myself, as the president of BOC, is the leader of this committee and to coordinate the group-level green financing-related work. And also we know BOC is a commercial bank, and we also will play our strength of globalization and comprehensive business to try to promote green financing and try to build this one-body-to-win structure. By the end of June, our balance of green finance has exceeded $1 trillion. RMB and it grows further. In the first half, in order to implement the green bonds issuance, we have reviewed the credit structure of BOC, in particular for the key branch in terms of their plan for the green bonds issuance. We have certain review and adjustment. During the first half, In terms of the issuance, we rank number one for the green bond issuance, and we have issued 50.9 billion RMB, and BOC underwriting 20.97 billion, ranking number one among our competitors. And also we support the Three Gold Group to issue their carbon-neutral bonds. And we have also due currency first. The public... public bond issuance for the transformation and is 1.8 billion and 500 million US dollar respectively and also we work with the Kazakhstan's power group for the M&A and BOC's role is the consultant and we also try to enhance our international cooperation and this year BOC has become TCFD is a supporting bank, and we also participate in the China and Britain Financial Institution Climate and Environmental Information Release Piloting Group. We participate in those, the carbon peak and the carbon neutral work actively, and we also try to implement the green investment principle. And we also work with ICMA. in 2020 and 2021 the green bond issuance and also we participate in the corporate social responsibility bond issuance guideline formulation so all these are our participation and with the international partners so with such participation and roles played we improve the image of BOC in the international market so These are the BOC's globalization strengths. When we talk about one body, two wings, we have another strength, which is the comprehensive business strength. We try to improve the green products as well as our comprehensive service provision level. We work with the China Securities Index Corporation to issue this, the 300 ESG. And we also, with the BOC Wealth Management, we have issued our first Carbon Peak, low-carbon wealth management products, is a series of products to support the low-carbon development. And 37% of the leasing assets are green assets. And we also consider green financing as our strategic focus. We have our BOC's 14th Five-Year Plan, Green Financing Strategy. During the 14th Five-Year Plan, we tried to implement this low-carbon strategy not only idea but also action. We try to build BOC, a green financing-oriented bank, and we try to provide more services and products serving this green financing development. During the 14th five-year plan, we plan to provide no less than 1 trillion RMB support for those green industries and for the corporate sector. lending compared with the 13th fire plan is going to be 5% more. We try to reach 10% of the support for the corporate loans to support the green financing development. So by the end of this year, we are going to do more. And also, the second one is to try to control the lending business for brown business, brown lending related business, meaning we will try to help those traditional industries for their transformation and also we will reduce the proportion of the coal mine as well as the coal power related products and we will try to help those traditional enterprises to have their technological upgrading and as well as the clean use of the fossil fuels and we try to reduce our customers per capita or per unit consumption and emission of carbon. The third one is that we will try to implement our state council's requirement. We will have proactive structure-based readjustment. At the same time, we try to avoid the blind reduction of the loans towards those traditional industries. We try to balance Number one, we try to support the green development. Number two, we protect the transformation of the traditional enterprises so we have this inclusive and differentiation-based green finance transformation. The third one is to serve our emission trading market building. We will play our BOC's comprehensive business role and globalize the business provision strengths.

We will try to introduce in the business experience from the Western countries and rely on the professional financial market and the transaction banking services to help with the emission rights market development and also energy rights market system development. Firstly, we try to create great financing product, innovate on this product, We create our brand as Green BOC, develop new business models and product models to issue green loans and green bonds and carbon neutralization bond as well. Fifthly, strengthen international cooperation and promote linkage and alignment on China and overseas green financing standards. In international organizations such as TCFD and GIP, we will take active participation in the standard-setting process. Sixthly, we will carry out environmental risk stress testing. Environmental risk will be included into the comprehensive risk management system. By the end of this year, we will carry out stress testing for the thermal-powered plants. Seventh, we will manage our own carbon footprint, have a green office and a low-carbon operation, conserve electricity, paper, and the usage of cars so as to enhance our carbon footprint management and explore carbon neutrality operation and timetables and action plans. We have engaged a special consultant to help us to achieve carbon neutrality in our own operations and also come up with green financing suggestions.

We are left with the final question for the first half of the session. I'm from JP Morgan.

My name is Lily. So my question is about asset quality. In 2021, we are seeing a stabilized domestic economic recovery and the asset quality of the bank is in reduced pressure. However, the markets do vary about certain industries, certain regions' asset quality. So we are seeing Bank of China performing well in APR amount and APR ratio. So I want to know whether this trend can be continued. And also to be specific, some of the inclusive financing are giving deferred payment of principles and dividend and interest extension. And can this situation be sustained? And is the overseas assets under pressure? Thank you for your question. You have asked very good questions into three layers. And before we have this press conference and we are trying to solicit questions from the investors, in this process we get a lot of questions about asset quality. Now the floor is given to Mr. Liu, CIO of the bank. Thank you, JP Morgan analyst, for your question. Asset quality has been a question of concern for many people. And in the first half of 2021, Bank of China asset quality maintained stable progress. NPR amount and NPR ratio enjoyed a double growth. NPR amount was 200.348 billion, a reduction of 6.925 billion, NPL ratio 1.3%, a decrease of 0.16%. While special mention loan balance and overdue loan balance both reduce, and the gap between overdue loan and non-performing loan continuously reduce. Asset parity were further improved, and also we are stepping up efforts in NPR resolution in domestic institutions. By the end of June, overseas non-performing loan amount and non-performing loan ratio increased slightly, only incurred NPR happened with real estate and aviation industries which are suffering continuously negative impact from the pandemic. Overall, the risk is within control. It is expected that in the latter half of the year, the asset quality of the bank will make progress steadily, but there are many uncertainties. For example, the outbreak of the pandemic repeatedly and also some geopolitical tensions. Some of the industries like the release sector and also for government businesses and export businesses. In these areas, we may face some uncertainties. We will try to prevent financial risk and serve the real economy at the same time. And we take active matters to improve our asset quality and try to provide industry-wide guidance. We try to enhance potential risk management and control and also handle those risks early on. Certainly, we strengthen our risk disposal efforts, try to strengthen NPR resolution, and we expand collection efforts on a non-contact basis. Fourthly, we will have dynamic estimate of expected credit loss and make adequate provision so as to increase our risk tolerance capability. As you mentioned just now, in overseas markets, we are facing more pressure than domestic markets, but generally the risk is within control, and the overseas markets are making steady progress. And we will further improve asset quality in overseas regions, and for different regions, we will adopt a differentiated policy so as to increase our risk management. You also mentioned inclusive lending, which have deferred payment of principal and interest. We pay continuous attention to this sector. We support the resumption of work of small and micro companies. We actively support those companies who are in difficulties while we try to prevent financial risk at the same time. Starting from January 2020 till June 2021, In total, we have arranged the extension of payment period for a total of RMB117.854 billion of principal and the total deferred interest was RMB64 million. According to our initial understanding, For the deferred principal and interest loans, the total asset quality is good, stable, and with risk within control. According to our latest estimate, in 2021, the amount of NPL coming from this deferred payment part will only contribute to less than 0.4 percentage point of our total NPL. which is within control, and we will make further efforts to do a better risk control. Thank you for your question. Thank you. Due to the time limit, the investors and analysts part will finish now. For investors and analysts, if you have further questions and queries, you can contact colleagues within the investors relations team of Bank of China Now I give the floor to Mr. Jia Tianbing, spokesperson of Bank of China, and also he is the general manager of the President's office. Thank you, Mr. Mei. And we are seeing the convening of our mid-term or interim result announcement in a timely manner. Thank you for your support and continuous attention to Bank of China. Now we give the floor to media friends to allow further questions. And each media friend can only ask one question because of time concern. And also please identify yourself before asking questions. Now we would like to invite in the first media friends. Now you can ask the first question.

Thank you.

I'm from Xinhua News Agency. This year, we are seeing the starting of the implementation of the 14th Five-Year Plan of the country. As mentioned by President Liu just now, that Bank of China's 14th Five-Year Plan is aligned with the national strategy, and you have specified one body to win strategy and focus on eight major financial areas. Can you introduce us the vision of Bank of China in 14th five-year plan, and how could you further promote the implementation of the 14th five-year plan? Thank you for your question. To further implement the national strategy and try to contribute more value to the country, Bank of China have drafted and issued the 14th five-year plan of Bank of China Group. What you ask is a very comprehensive question, and so that's why I want to give the floor to President Liu Jing.

Thank you for your question.

2021 is an important historical juncture at which we are seeing the celebration of two centennial ceremonies. And also, this is the starting year of the 14th five-year plan. On this important historical juncture, Bank of China stick to the guidance of President Xi Jinping, and we take the National 14th Five-Year Plan as our blueprint, and we try to honor our mission as connecting the world and creating well-being to the society. And we have tried to speed up the establishment and the achievement of our strategy of one body to win, with commercial bank as the main body, and globalization and integrated operation as the two and try to turn ourselves into a global first-level modern bank. Now, from three aspects, I want to answer your question. First, Bank of China will assume the role to be a state-owned big bank, and we will develop new development patterns and try to speed up the establishment of one body to win, which is our strategy. We are trying to find the position of Bank of China in domestic and international dual circulation, and we try to find out our competitive advantage and try to connect domestic market with international market and try to give full play to our advantage as a globalized and integrated operating bank. and we try to connect domestic capital market with foreign markets. We emphasize one body, two wins. One body means we will focus on being a large commercial bank, and we will follow the national strategy and implement the major decisions of the State Council and channel our resources to key areas of the nation and key links of the national economic development. The commercial bank will make breakthrough development. And we also identified major areas for development, and we have identified plans for transformation and development. For the two winds, I emphasize repeatedly that we should be determined and have a unanimous understanding about strengthening our globalization advantage and strengthen our advantage as an integrated operating bank. This is the requirements of our development and also the requirements of serving the national economy. In the first half of the year, Bank of China in major international areas in cross-border financial services We are taking the lead in the market. Many customers who became customer to Bank of China many years ago who stick with Bank of China for many years and some of them try to keep a distance from Bank of China in the past years because of some of the reasons. Now they are coming back and many of the old customers are coming back to Bank of China to enjoy the globalized and internationalized services of Bank of China. And we are having a larger client base now.

In terms of globalization and internationalization, we will continue to consolidate our strength in conventional products. We will also do more in terms of product innovation, service innovation, or even theory. and methodology innovation. For example, at the beginning of this month, we had more than 900 million U.S. dollars worth of the bonds issuing and also 300 million pounds of the bond issuing with a floated investment.

interest rates.

For the SOFA bond, it was first created by us in 2019 for the British Pound Sony bond. We are the pioneer and also it's the world's first publicly raised guarantee free debt issuing. Actually, these bond issuing projects are highly technical and complicated and I have aroused a lot of attention and interest from the market. Actually, the market participants are very enthusiastic. So I'm not only talking about the issuing of the new bonds with floating interest rates. They actually are symbolic that we are innovating. accelerated manner in terms of products and services domestically and internationally. Then second, I will talk about implementation of the 14th five-year plan. In that manner, we should continue to serve the tangible economy. We have identified eight financial service areas. as our starting point and our platform for the financial supply-side structural reforms. And for the key economic areas and the weak links of the national economy, We will do more. We will have already identified the eight financial service areas as our priorities. They are FinTech, green finance, inclusive finance, cross-border finance, consumer finance, wealth management, supply chain finance, and county-level finance. And also, we have decided to do more than 20 projects to implement. Well, to serve the tangible economy, of course, we need to increase lending. We need to increase investments. But we cannot do more. Actually, it's about the NPL. You might be very interested in NPLs. My colleague already has answered a question about the trend of our NPLs in the second half of this year. The NPL ratio of 1.3% I think is relatively low. But for the NPL ratio it's a dynamic and it will change. That's to say sometimes it might go down or sometimes it might slightly pick up. But they will not represent any fundamental change. For our NPLs or for the NPR management and credit asset management, we will continue to serve the tangible economy. As a major bank, we have that responsibility. We have to work closely with local governments to help businesses overcome their debt difficulties. Some are SOEs, some are private businesses. some private businesses are big in terms of size. Maybe from the media reports, you already know that some businesses have increasing debt. They are under stress. Major banks like BOC must work with local governments to resolve potential debt crisis or debt problems. Our chairman sometimes will ask me, well, our NPL ratio is only 1.3%, given our balance of loans of more than 200 billion yuan. Is it problematic? Our chairperson sometimes is not reassured. At our board meeting, many directors also give us kind reminders. They remind us that the domestic NPL risk and overseas NPL risk cannot be neglected. Then I want to share with you that as long as you are confidence in the future of the Chinese economy. As long as you are confident in the advantages of socialism with Chinese characteristics, you should be confident in BOC and in BOC's role in China's economic development. Our NPL ratio volatility, the small volatility, doesn't represent a significant shift of our asset quality. And you should sense the advantages of our socialism with the Chinese characteristics. If one locality, one business, one SOE has a debt crisis, our provincial governor, the mayor, and the officials at other levels will work their best to help those businesses in difficulties. we have that institutional advantages. So although some clients have difficulties, but their loans are not immediately labeled as MPLs because we are still confident in their future prospects, and we are confident in the country's capability for debt crisis resolution. Maybe sometimes the NPR ratio will be more than 1.3 percentage points. It will slightly pick up. Our fundamental asset quality, I think, is good and the situation is under control. That is also our effort to support tangible economic development. Third, BOC also catches with the pace of the time and will continue to accelerate digital China development So BOC itself must be comprehensively fully digitalized. That is the top priority in changing our business and the development model. Here we will make use of the big data, cloud computing, AI, blockchain, 5G, and other technologies. We have the two major engineering projects. That's the enterprise architecture developments and the data governance. And we will make use of our one-body two-win strategy. to improve the open financial ecosystem. And we have five projects for improving capabilities and capacities in terms of improving customer experience, opening up and sharing products and services, integrating and optimizing business processes. smart and efficient risk management control and reducing the burden of our employees while empowering our employees. We will continue to serve the digital economy, develop this digital society program and the digital government program. Last time, I already made the introductions to you. I told you that we have two major digital engineering projects. One is the enterprise-level architecture developments, and the other is data governance. We believe with such capability and capacity building, you will see the good outcomes of our digital strategy. Ladies and gentlemen, for the five-year plan or for the eight major financial service areas. They are the BOC strategy. But execution of strategy of a plan is even more important. At the board meeting, our directors also have reiterated the importance of execution and implementation. For the eight financial priority areas, I have communicated with the senior management teams, with the key employees. And when we visit the local branches, we also listen to their reports and we discuss with the employees about how to really substantiate the eight priority financial service area strategy. So we will continue to push the execution and implementation so that our strategy or our blueprints is not a piece of paper. It has tangible outcomes. The board requires that on a quarterly and a half-year basis, the management must report to the board about the progress of implementing the 14th five-year plan. For the management, we are quite confident that the 14th five-year plan will be well executed. Under it, there are also 20 sub-plans. So in that way, I'm confident that the BOC 14th five-year plan and the eight priority financial services strategy will be the guiding principles for the future developments of BOC. Thank you. For the long-term overall comprehensive development strategy of BOC, I think you already have got a good answer. If you have follow-up questions, you are welcome.

The next question, yes.

The floor is open. You can ask the next question, please. As a matter of fact, BOC team The State Council meeting has emphasized that financial industry should greatly support the tangible economy, especially the SMEs and the micro-businesses. In the first half of this year, the banking sector in China has increased more in terms of the inclusive lending. So how about the situation of BOC in the first half of this year, and how will you continue to support SMEs and the micro-businesses? Madam Su is from China Securities Newspaper. Thank you for your question. Yes, BOC is a major state-owned bank. We have our responsibility in supporting the tangible economy and SMEs as well as micro-businesses. Our VP Wang Wei will answer the question. Yes. I would like to thank the journalist for your question. Yes, BOC has always been implementing the national policy strategies and policies for supporting SMEs and micro-businesses in the tangible economy. We have taken multiple measures. First, increasing lending and strengthening financial services to them. By the end of June this year, the inclusive financing lending by BOC balance was 781.6 billion yuan, according to the regulator's definition an increase of 206 billion yuan, or an increase rate of 35.8 percent. The government's target for us was to increase such an inclusive lending by 30 percent. And the recipients were 567.9 thousand, up by 99,500 clients. NPR ratio was 0.61%, down by 0.22 percentage points in the first half of this year. For the new inclusive financing loans, the interest rate was 3.94%. And for the small and micro business, the comprehensive financing cost went down by 48 BP. Second, more fintechs and more digital services For the online inclusive financing lending in the first half of this year, the balance was 52.3 billion yuan, an increase of 48.9 billion yuan as compared with the end of last year. And also, the products are more diversified, so we not only have the credit lending but taxation-based lending and collateralized lending and other online lending products. Third, innovation to support major clients. For example, the specialized pioneering new and niche SMEs, innovative technology enterprises. Therefore, we have worked with the MIMIT so as to provide more than 80 billion yuan of lending to more than 10,000 SMEs. We also have a Huawei-inclusive lending plan for the benefit of supply chain and industrial financing. We also have the platform-based small and micro enterprise supply chain financing. And firstly, to improve the market reputation, For the last spring festival, many people stayed where they are for the spring festival and they didn't go back to their hometowns. Their employees also stayed there. Therefore, we provided services to more than 7,500 SMEs and micro-businesses. For these micro and small businesses, they could have multiple withdrawals and revolving lending facilities for us so that our lending to the small and the micro businesses is more flexible. We also have worked with SIPO, the national IP agency, so that we can provide financing to those small and the micro businesses with a strong IP foundation. And in the next step, we'll continue to push the development of inclusive financing for SMEs.

And we will support the science and technological advancement and try to support those, the good quality base for these medium-sized enterprises. And we will also support those strategically prioritized area for SMEs. And we also will support those, the innovation for the high-tech companies. And we will formulate the special action plan for the support of these medium-sized enterprises and we will also support those what we call the little giant and other small but strong enterprises, try to support those good quality enterprises in terms of their, for example, IP, intellectual property-based financing, as well as other online products. We will try to enrich our products portfolio Next one is about the stabilizing and the supporting of the normal operation of the SME and micro enterprises and try to give them more the supporting policies for the repayment when they are in difficult situation, but still they have potential for future development. We will just try to stick to the principle of continued support. We will not stop the lending. And also for those enterprises, we may have this... a bulk review at the annual level, and we will give them the bridge lending to try to help those enterprises suffer from the pandemic in terms of their repayment. And also, we will just implement the due diligence principle and try to build a long-term mechanism to support those medium-sized enterprises. Thank you. Okay, I'd like to add a few words. And after Mr. Wang's answer, I would like to always, I would like to say a few words. And talking about inclusive financing, first, we try to implement the regulator's requirement at the same time in terms of the number of borrowers, as well as the proportion of the credit loans where the first borrower's loans, BOC has performed well, meaning we performed really well in terms of inclusive financial service provision. But in today's board meeting, our chairman and the directors raised even higher requirement for the senior management of BOC, mentioning that we do not simply stick to numbers or we simply satisfy the requirement of regulators. That's not our achievements. We need to aim higher. And we need to be more stringent in terms of our self-requirement. We need to optimize our inclusive financing system and in real manner to implement our inclusive financing to support real economy. And it's going to be a very important model or module for BOC to support the real economy in China. So based on these higher requirement, we have done a lot in the first half We also have the cross-sector cooperation within the group as well as the interaction with our customers. We try to optimize the mechanism as well as the system. In terms of the management system, we try to clarify or enrich the function of inclusive financing and also based on the Department of Inclusive Finance, we also have another division supporting the revitalization or rejuvenation of the county and the rural area in China. So we combine these strategy and the system-based and inclusive financing sector have a better basis for future development. So we will do more to support the BOC's inclusive financing development. It's going to be another famous brand for BOC in the future. Okay, thank you. Thank you, EVP Wang Wei. Thank you, President Liu Jin, for your comments. And also, during the first half, BOC has implemented a series of measures to support inclusive financing. development in BOC and just now President Liu Jin gave you a lot of examples and BOC take real actions to support the real economy in China and we also believe that in the second half and in the future we will take more actions to develop our inclusive financial services and try to benefit more medium sized as well as the real economy and after this And if you want to know more, you can contact us later. We would like to give you more updated information in this respect. And now I'd like to give the floor to another journalist. Please, next question. You may start to raise your question. Thank you, Chair. And also thank you, Senior Management of POC. I'm from iPhoneNet. My name is Chen Yao. I'd like to ask about the overseas branch in terms of their operations. For the first half, we have a general recovery, yet we still suffer from the COVID-19 pandemic due to its rebound. And also, I'd like to know more about the operational situation of BOC's overseas branch. What are the challenges, and what are the opportunities, and what will BOC do to address these challenges? You see, you know, as Mr. Liu also mentioned, we have some new strategy. You know, we have the one body, two wings. We have the strengths of a globalized business. You may also care a lot about the globalized business or our overseas branch business operations. So now I'd like to give the floor to Mr. Chen to answer your question. Thank you for your question. For this year, the BOC paid high attention to the development. We tried to improve our global business and tried to have the steady development. By the end of June, the overseas deposit and lending balance has increased 13.86% and 11.95% respectively, and we are still in ranking number one in terms of the lending business that is the we also have the classified management and differentiated management we try to improve the development capacity for the overseas branch and as well as the coordination between the branches and the groups and also in terms of our future development BOC stick to the principle of standing China facing the world and we also stick to our globalized business development So as China's economy becomes stable and have very good trends, and we will use this great situation as new opportunity, we will have a high-level going global strategy implementation. We have a lot of great opportunities, belt and road initiatives, greater Bay Area, free trade zones, as well as the due opening of the financial sector so we can connect the domestic and overseas market properly. The second one is the new momentum. We have the bank digital transformation. The speed of the transformation is quicker. We also will use the 5G technology to boost the Internet-based service provision, and we also will grasp new opportunities. Now we are facing the low-carbon green development carbon peak and carbon neutral has become real targets for us to realize and we will have the transformation of our business operation and these are also great opportunities at the same time we are facing a lot of challenges in terms of future development we have quite complicated international situation we also suffer from the pandemic we have this global economy in a fluctuated situation is bubbled and we also have this the huge fluctuation as well as the inflation expectation. So the financial market risk has been increased substantially. And also for those, the sovereign debt risk is also increasing and we have lower NIM and we have the pressure for the overseas BOC branch in terms of their profitability. We also have higher standards for the anti-money laundering and as well as the compliance for taxation information safety and we also have more stringent standards for ESG. Facing all these complicated situations, the higher regulators requirement, BOC will always bear the micro goal of build a society of human beings and will shoulder our responsibility as a leader in the international business and we will support China's higher level open up and we will stick to the stable operation, and we will try to control the pandemic as well as the risk brought by the pandemic. And we will address the financial market risks, and we will also build our baseline, try to increase the risk compliance awareness, and we will take the proactive manner to manage our risk management. We will implement ESG principles in terms of the development and design of our products. We also will try to actively develop the green financial products as well as the service provision model. So in the future, BOC will have both quality-based and quantity-based development to finish our transformation of the business. Thank you. Thank you, Mr. Chen. So next question.

Okay.

Next journalist, please. You can ask your question. Thank you. I'm from Financial World. My name is Ge Wenjing. I'm interested in the Beijing Winter Olympic game. You know, after the Tokyo Olympic closed, the focus has switched to Beijing's Winter Olympics and Paralympics is going to be held in Beijing and the Zhangjiakou area. and it will just increase the Beijing-Tianjin-Hebei coordinated development. So I'd like to ask you how do you support the Winter Olympics and what kind of role BOC can play and how could we use this strength as a double Olympic bank? Yeah, thank you. Thank you for your question. So this BOC is really proud to answer this question. You know, BOC is the partner for Winter Olympics and the Paralympics, which means five months later, we will hold our Winter Olympics. And BOC has supported this great event for four years, and we will continue our support and also is the value of BOC. So we are proud as the partner of the Winter Olympics in 2022. So now I'd like to ask Mr. Wang to answer this question. Thank you for your question. So now we have the Beijing time for this Winter Olympics. In terms of the preparation of the Winter Olympics and the Paralympics, the preparation is processing well, and we are now in the last stage of welcoming these two great events. BOC will deploy it as well as try our best to support. these two Olympics. The first one, we will use high-standard financial service to support the Winter Olympics. This is BOC's commitment, and also we consider this as our mission. During the Winter Olympics, we will provide financial service to the domestic and overseas staff, as well as the local and foreign currencies business support online and offline financial services. And also in the venue of the Winter Olympics, we have set five outlets there and six self-service provision area. We can provide multi-language services, including English, French, German, etc. And also based on the requirement of the pandemic, we also provide the cash as well as the foreign cash provision for the service provision. And we try to make sure we have good support to support this. The second one is about the innovation-based financial service provision. We want to support this, the science and technology-oriented Winter Olympics. We have some of the theme-based credit cards and issuance, and we also have this digital RMB Winter Olympic piloting project. We also have those, the visible chip wallet. as well as the other digital currency-based ATMs. We also formulate the service provision plans for those overseas visitors, as well as the athletes from other countries for the tax reimbursement, etc. The third one is to using financial service to boost the ice and the skate-based sports. and in particular to support the high-quality development of these ice and snow-based support.

A lot of support to winter project in Beijing, Hebei, Heilongjiang, Jilin, Xinjiang, and other 10 also promising cities and autonomous regions. By the end of July 2021, in total, we have... land out 28.4 billion RMB yuan, and we try to help 300 million people to be involved in winter sports. In the next stage, we're trying to create a better platform for winter Olympic Games and try to enable more people to understand our thanks brand as sponsoring two Olympic Games. And we try to encourage collaboration among Beijing, Tianjin, and Hebei Province, and try to improve our market share in this area and contribute more to the coordinated development of this region. Thank you for your question. That's the end of my answering. Thank you, Mr. Wang Zhihong. To be involved in winter sports and come to Bank of China, let's expect a safe and simple, well, excellent Olympic Games. We'll allow the final question to be asked due to time limit.

Now we'll allow the final question.

You don't have to know I'm from China Business Daily. My question is about global banking transformation and about fintech. Fintech are becoming a major drive force of business growth and a great breakthrough for banks' transformation. I want to ask management, what are the progress that has been made by Bank of China in the first half in terms of fintech-enabled businesses, and what is your plan for the 14th five-year plan period? Thank you. In each of the the press conference, we have media friends who ask questions about FinTech development of Bank of China. The 14th five-year plan of the group have a special chapter devoted to FinTech development within the group. I would like to give the floor to Mr. Liu Qingwan, Chief Information Officer of the Bank. Thank you. Friends from China Business Daily, For your question, I want to thank media friends for your long-term attention to FinTech development within Bank of China. Bank of China has overwhelmingly promoted the strategy of technology as the leader and innovation-driven development strategy. We have developed and focused on key projects which have blossomed and we are seeing results from technology-enabled businesses. and which has supported business growth in the first half of the year. And technology has enabled us to provide online services. We have newly launched version 7.0 of our mobile phone app, and we add special zones for private banking, digital credit card. We also add a terminal for senior clients. I mean elderly clients, and we have the features of combining financial services with scenario, combining technology with care, combining smarter services with professional knowledge. And our global transaction banking, IJTB, have strengthened our online services for corporate customers, and we have offered cross-border services remittance, supply chain financing, note of services to these customers, and we have a full process online from collateral loan application to the final issuance of these loans. Second, we increase the smart and intelligent services level of our bank. We have upgraded our smart investment application to version 2.0 with yield exceeding pure performance. And for quantitative and transactions, in the first half, we have launched domestic precious metal, R&B bond, and sport foreign exchange transactions and other markets. We have automatic market making. and treasury businesses are becoming smarter and more intelligent. And we have developed an application called the Smart Anti-Fraud Machine Learning Module, which has won us Asia Bankers' Reward. And also we have increased our risk management level by using Smart Vault and Smart Cash Trunk. And we also achieve mobile operations. We have developed the Data Bank of China app so as to increase the speed and granularity of the data services provided to senior management. And also, we have provided mobile office and internal management and operations support through mobile banking, ecology. Fourthly, we strengthen our technical support for major projects. Green Oasis projects have been fully implemented and we have speed up the implementation of Oasis projects. In the next step, we will further strengthen our digitalization process. We will focus on three major tasks First, we will try to provide support to the business and we will establish IT capacity and next generation IT infrastructure, try to establish new infrastructure for the bank. Second, we will strengthen technology, enable the business development and try to serve front office, middle office better and try to enable the eight major financial tasks of the bank. Certainly, We will be forward-looking in combining scenario with ecology development, and we will enhance our conversion capability and collaboration capability. We will promote cloud computing, big data, artificial intelligence, blockchain, and other mature technology to be used in a larger scale. We will reshape our business models, promoting the integration of 5G Internet of Things with financial businesses and we will also try to be the first mover in the next phase of fintech development and we will pay continuous attention to 6G, quantum computing and linkage between brain and computer so as to seek more opportunities. In the first half of the year, We have set up a financial digitalization committee to coordinate the development of digitalization fintech data governance within the bank. In the latter half of the year, we will further optimize our technology management and focus on the integration between fintech and businesses. This is the starting year for the 14th five-year plan. We will further implement the 14th five-year plan of the group and enable the business with our FinTech and start a new journey of FinTech. Thank you, Mr. Liu Qiwen, CIO of the bank. Because of time limit, that's the end of the Q&A session. And if you have further questions, please contact us, contact our friends and colleagues. I want to thank media friends, investors, and analysts for participating in today's result announcement. I also want to thank all the friends who are listening to us through online broadcasting. That's the end of our interim result announcement. I wish you happy life and a healthy stay in Beijing.