China Constr Bank H

Ladies and gentlemen, good afternoon. Welcome to the 2023 Interim Results Announcement Press Conference by CCB. And I thank you for your trust, care and support to our bank. This press conference is held in both Hong Kong and Beijing through a video link. and it is also live-streamed online to shareholders and the public. In Hong Kong, present in this venue are Mr. Tian Guoli, Chairman of CCB, Vice President Mr. Ji Zhihong, Mr. Shengliurong, CFO, Present in Beijing are Mr. Zhang Jingliang, President of the Bank, Vice President Cui Yong, Mr. Li Yun, Vice President, Mr. Wang Bin, Vice President, Mr. Li Ming, member of the CPC Committee of CCB. We also have Mr. Xia Yang and Madam Liu Fang present as Shareholder directors, we also have Mr. Kenneth Chong, Grim Wheeler, Michelle Madeline, Mr. William Cohn, and Mr. Liu Heng, who is a supervisor representative in Hong Kong. Madam Shao Ming and Mr. Tian Bo and Madam Li Lu, representatives of equity shareholders, are joining us from Beijing. We also have colleagues from the head office and other business departments in both Beijing and Hong Kong present. My name is Hu Changmiao. I'm the board secretary. Our interim results were disclosed yesterday. I'm sure you have all read it. The presentations have all been published on our official website. Before we go into questions and answers, Mr. Zhang Qingliang, the president, will give a presentation on the business performance of the first half of 2023. Mr. Zhang, please. Investors, analysts, friends from the media, good afternoon. Welcome to the 2023 interim results announcement by CCB. Thank you for your care, support and trust to our bank. Up next, I will make a presentation on the business performance of the first half and the way forward. In the first half, we deeply implemented the spirit of the 20th CPC Congress and Central Economic Work Conference. We fulfilled our political, economic, and social responsibilities. We see high quality development as a priority with consolidated customer base and key risks being under control. We have seen stable growth in all business lines with our development quality going for the better. Up to the end of June, total assets amounted to 38.3 trillion RMB, liability 35.3 trillion RMB. Net profit 167.3 billion RMB, or 3.12% year-on-year. We have seen higher quality amid stability development. NIEM 1.79%, ROA 0.92%, ROE 11.95%. All the key metrics have been balanced and very robust. putting us at a very good level compared with the industry average. NPL ratio 1.37%, coverage ratio, provision coverage ratio 244.48%, capital adequacy ratio 17.4%. Both asset quality and risk mitigation have been very well since the beginning of this year. We keep the key priorities in state policy in our mind and helping real economy recover so we can play the stabilizer role as a major bank. We have seen very robust and effective bond and loan insurance. In the first half and second half, we have made a good kickstart and stabilized the total volume. In the first half, The newly added loans amounted to 1.94 trillion RMB or 354.1 billion RMB a year. Newly added bonds amounted to 717.5 billion RMB. We have targeted key sectors. 480.5 billion are invested in manufacturing industry with an year-on-year increase of 21.4%. Infrastructure saw new loans of 806.3 billion RMB or up. 14.13%. Technology-related loans have added 265 billion, or 21.57% increase. We have strengthened our support to real estate sector and make sure that the real estate property developers can deliver their houses. The balances of loans for private companies are 5.22 trillion RMB. we have facilitated the coordinated development of different regions. Beijing, Tianjin, Hebei, and Yangtze River Delta and the Greater Bay Area took up over 50% of corporate loans. Central China, Western China, and Northeastern China have seen more loans compared with last year. Since the beginning of this year, we implemented the new development concept and explore the effective ways for Chinese modernization with financial services. We have seen higher scale and more coverage with inclusive finance. The loan balances from inclusive finance is 2.86 trillion, up 21.79%. Both credit customers and loan customers have achieved new highs. We have enhanced our leasing financial services system with a closed loop of investment to exit financial services. We have issued loans for leasing of 300 billion RMB. Our self-developed distributed new system has been improved with the launch of financial big models supporting our business. We have 259 million customers on our e-governance platforms handling 4.4 billion applications. CCB Cloud was launched, enabling small and medium-sized FIs. 370,000 Yuenongtong service points covered most of the villages in China, serving over 550 million customers. Yuenongtong sold over 10 million registered customers. Yuenong Quick Loan and Yuenong Loan have seen fast growth in loan balances. Loan balances for agriculture-related products have been 3.62 trillion RMB. Binary Star has been gaining traction with over 110 customers with a CCB life or an increase of 127% in transactions. It has been... proven that ccb life has been interacting with our mobile banking app green loans have seen a balance of 3.48 trillion rmb an increase of 26.39 percent green bonds amounted to 15 billion RMB with AAA ratings for consecutive three years. Since this year, we have been deepening the three business sectors of corporate, personal, and wealth management. All the business sectors have been operating in a good way with better synergy. Most companies of the key metrics have been proven very brilliant. In the first half, corporate loans have added 960 billion RMB with more contribution from investment banking business. There is also an increased amount of corporate deposits. We have 10.16 million corporate customers. Major customers, major projects, and our service level have been improved. We have seen better performance in personal financial business and our contribution to the industry. Personal deposits and daily added volume have achieved new historical highs with personal AUM exceeding 18 trillion RMB. Personal consumer loans, operating loans have seen greater growth. Long-tail customers have released capacity. Asset management business has seen higher volume and better quality. Bond investment has seen stable growth. Financial market has reached 10 trillion in its asset under management size with 20 trillion RMB under trust services. Precious metals and commodity businesses have gained a good start as independent institutions. This year, we have been always keeping the worst scenario in our mind and strengthening our risk mitigation and management systems. and we are trying our best to make sure that all kinds of risks are put under control across the group so we can enhance this three-dimensional risk governance structure. Bluechip engineering investment transaction business smart platform has been awarded the first prize from PBOC. We have strengthened our forward-looking management of major financial risks With a stable asset quality in key industries like property development, we have been going steadfast in digitalization and internal control with better and more robust grassroots governance systems.

For the second half of this year, CCB will continue to adhere to Xi Jinping's thought on Chinese characteristics for a new era concentrate which will bring our heart and soul together and we will focus on high quality, high standard education for various themes and to continue to push forward for high quality development. We will continue to improve our finance supply capability and to facilitate the efficient improvement of the economy's improvement as well as the reasonable growth of quality. The first is that the total volume needs to be stable. We need to make sure that we can provide solid, stable and sustainable financial support. Second, the projects need to be solid. surrounding the key areas and the strategic business, we will devise very accurate servicing plans and to continue to solidify our project pipelines. And thirdly, we need to make sure that the rhythms are accurate to ensure that our supply and credit extension is very balanced and ensure that all the capital will go into the real economy. And number four, to ensure that the structure remains optimized to continue to enhance our retail lending support and to ensure the stability continuity of the policy support for the corporate lending business and to serve the important areas and key themes. We'll continue to enhance our strategic implementation capability using the new finance to serve people's livelihood, to continue to increase the housing leasing capital supply, and to look at new models for the real estate financing service industry to continue to deepen our digital inclusive finance. further expand inclusive finance credit extension to various different customers to further enhance the supply for the rural areas and ensure more and more financial resources will be provided to the rural areas and continue to speed up our studies and research in the new technology and fundamental technologies continue to enhance our digital operation to push forward for the mobile banking as well as the concentrated development of CCB life cycle as well as the circular operation will continue to push forward for corporate retail and asset management business In terms of the corporate business, we'll continue to focus on key areas and new industries to make sure that the volume as well as pricing and risks are all balancing out. Ensure that we have the capability of managing good cash flow and continue to extend our settlement capital to improve the quality of corporate loans. to improve our overall comprehensive financial service supply capability. In terms of retail business, we'll continue to build our retail banks' advantages and continue to expand the individual clients' scale. to improve our private banking capability in terms of mortgages as well as credit cards and consumption loans and all these areas we will continue to improve the retail credit loans efficiency and contribution to our business in terms of asset management will continue to adhere to the high-quality service as well as regulation and to make sure that we can create new values and help the bank to transfer to a light asset model. We will continue to improve our digital response capability and solidify our accurate management foundation, further deepen technology empowerment. overall improve technology driving forward the business development and to make sure that we can improve all the branch competitiveness as well as operation efficiency, further deepen the binary stars platform to make sure that our business can be comprehensive and inclusive. We continue to enhance our asset management and balance sheet management to make sure that there is a differentiation of our deposit in the loan business as well as accurate pricing management continue to improve our capability and the sustainability of serving long-term real economy continue to make sure that we can grasp the cost management we continue to utilize our advantage in fintech and to push forward the overall planning for the branch work and intensive management and continue to push forward the intensive management of capital, improve the capital usage efficiency, continue to optimize our internal valuation model and to ensure the accuracy of such models and the role it plays. We will continue to make sure that we are going to be continuously working on our risk management and continue to perfect our three defenses mechanism to ensure that all the group's risk preference and the judgment of customers are unified and continue to speed up the corporate risk management platform building and continue to push forward the common sharing system for the information of our corporate clients and individual clients. We continue to speed up the comprehensive financing management mechanism and ensure that onshore, offshore, local and foreign currency, on and off balance sheet, as well as prop trading, all these business, we can cover all the risk management. We will build a very clean and healthy balance sheet and ensuring that the bottom line of a safe operation is safeguarded. We will continue to adhere to the policies implemented by the central government and state council. We will focus on stability of our business, sustainability as well as continuity, continue to realize a high quality development of our business and to use a solid performance to repay you for your support and trust in us. Thank you very much.

Thank you, Mr Zhang. Now we will start taking questions. This press conference is being held both in Beijing and Hong Kong, so we will alternate between two venues for questions to allow more participants to ask questions. We urge you to limit your questions to one each time, and before asking a question, please identify yourself. So we start from the participants in Hong Kong, the lady in the middle. Congratulations to CCB for the very good business performance. I think it's closely related to the so-called new financial campaigns. Can Chairman Tian please share with us the effects of new financial campaigns and its future key priorities? We've been hearing On the other hand, strategy for house leasing. So how does it contribute to your business as a strategy? What are the future plans? The question comes from Phoenix TV. Mr. Chairman, thank you. Thank you for your interest in new financial We've been talking about that in mainland China very often, so it's well known already. But 96% of our investors are in Hong Kong. That's why we'd like to take this opportunity to communicate the idea to overseas investors as well. so you will gain a better understanding of what new financial campaign is and how it contributes to our business in the presentation you've just heard you might note that every strategy was related to technology it wasn't about credit customers it was more of a technology-related engine which was driving the growth of business lines in different aspects. Simply put, that is to use the power of technology to take care of the long-tail customers. In the past, big banks served their big customers in a relatively good way. That was one of our advantages as well. However, back then, we wanted to serve small and medium-sized customers, but that would require much higher technological capabilities and solutions. So we couldn't do that back then. However, we have improved our technology very efficiently in recent years. And with higher computing power, big data, and all other technologies, we have seen a new window of opportunity to improve on our capabilities. And this is an opportunity that we must not miss. Let me give you an example. Rural areas used to be a market that we would cringe at. We were pretty disadvantaged when it comes to agriculture-related loans, but now we have a mobile application. It covers thousands, tens of thousands of service outlets. We can keep in touch with the CPC committees of every NH village. We can set up a terminal there, providing services to local villages. We can also work with local telecommunication companies, so our application can enable the rural users offering financial support and services. The Yu Nong Tong app is a very powerful app. You can save money, apply for loans, and do a lot of things. as a one-stop service, and it will also be able to publish village life related information. We have nearly 400,000 service outlets, which is a rather powerful service network. Let me give you some numbers. Over recent years, we have served over 58 million village customers. This was unimaginable in the past because all our customers used to live in cities, and now we're able to serve 58 million rural customers. Besides that, we set up a digital platform supporting the industry chain development in rural areas, for example, vegetables, potatoes in these sectors. This would enable us to develop credit services to villages so we could help different sectors build their own digital platforms and this digital platforms can offer some very good visibility of what kind of credit support our villages needed. In the very first half of this year, many overseas investors talked with me about agriculture related business. So there is this very high level of interest in the first half. Loan balances for rural areas amounted to 313.8 billion RMB, a 54% increase compared with the beginning of the year. When it comes to internet-based services, sometimes the growth is just exponential. This is just much higher than expected. Agriculture-related loans have grown by 18% year-on-year. Our balance increased from 1.8 trillion in 2019 to 3.6 trillion in 2022. The number almost doubled. Loan balances of agricultural loans have seen its historical highs in both growth rate and scale. And these loans have been helping our villagers in a very efficient way. Actually, villagers are very kind-hearted people, so we have a higher level of assurance when it comes to credit and trust loans. because these villages have been living together in a place for a long time. So they treasure credit and trust through big data. We can tap into agricultural markets. So that's why we've made very fast progress. Besides that, CCB is also trying to make more contribution to society. We help governments build so-called digital governments. we're talking about smart governance. Most of the provinces have seen their e-governance systems being built by CCB. We have a team of 15,000 personnels Large financial institutions like us are very good at digital services because we are dealing with data every day. Let me give you a few other numbers. 14 provinces and 13 municipalities have seen their governance systems being built with the help of CCB. You can see we have a huge potential going forward. Registered customers are 260 million. Total number of applications amounted to 4.4 billion. These are the substantial numbers supporting our business performance. Over 9,000 applications were handled in our outlets in different parts of China. You can go to another province to handle all these paper works, even if you are coming from a different province. Well, imagine that we have a lot of outlets, much more than government offices. This is why we can serve people with a large service network. In the past, when you thought about CCB, you thought about ATM machines withdrawing and saving money. But now, if you go to an outlet, you can apply for different documents of proof and do a lot of things in a place. You can pay your social security, you can pay fees, a lot of things. You can make appointments and handle this government paperwork in 14,000 CCB outlets. We have allowed 17,000 items to be handled through this outlet. and the amount increased to $250 billion. This is not financial services, so that's a huge number. E-governance helped us build a bridge between bank services and customers. This is beneficial to the bank in tapping into long-tail customers In the past, commercial banks used to focus on major corporate customers, but small and medium enterprises taking up 90% of the market were ignored. I believe you've heard many complaints about that, but now we are still in the process of addressing this problem. Let me talk about our solution and how it worked. In traditional model, It was risky and costly to serve SME customers. A bank like us wanted to serve small customers, but it wasn't about our intention. It was because of our limited capability. However, new finance and technology allowed us to make a breakthrough. Inclusive finance and how it serves small and medium enterprises is a global issue. Before this year, we only offered 20 to 30 billion loans to SMEs. The MPL ratio was 7 to 8%. The key to breakthrough is FinTech, We use internet, AI, big data, and blockchain to reduce our reliance on collaterals. We don't need collaterals anymore because they don't have any assets to pledge. Otherwise, there wouldn't be SMEs. So we need to tap into data to less rely on manual work and establish standardized processes both online and offline, building a new model for inclusive finance, becoming the largest FI in inclusive finance. Let me give you another number, which is really shocking. It's shocking to peer banks and even some analysts. Over the recent five years, over 10 million customers have gained access to inclusive finance, small loans, low-interest loans. The banks have controlled their risks under control with a proven efficiency. We have full confidence for that. Inclusive finance has a very, very short duration. We're talking about three to five months or one year at most. We've been working on inclusive finance for over five years, so we have an established model. The loan balance increased from 400 billion in 2021 to 2.86 trillion in 2023, six times. And the loan percentage increased from 3.4 to 13.4%. Newly added loans increased from 7.6 to 24.3%. You can see how much room for growth we're looking at. You can see how much potential we're looking at. NPL ratio decreased by 1.7%. We have maintained good asset quality. With technology, we are bold enough. In the past, big banks often asked for collaterals, but this made it impossible for us to tap into SMEs. This time, we can enhance our support to SMEs and high-tech companies, some tech startups. don't have any asset for a pledge. They can pledge their equity, but they wouldn't want to do that because they thought their invention had a very good potential. That's why. We proposed a new methodology in assessing their assets. That's about patents and equities. And we've been exploring different ways, sometimes risky tech startups can also gain access to fund from our bank. So we can look at their future development potential. Through innovation, we can serve their tangible needs. A lot of the SMEs are tech companies. A lot of them are. They are private companies. Nearly 100% of them are private companies. We use internet thoughts to recreate our distribution channels, building the binary star of our mobile app, so our mobile app will offer a fresh look from inside out. Through internet, we hope that we can reshape the time-honored brand of CCB so it can present a new look. Mobile app is the entrance to all online financial products. In the first half, we recorded 131 million customers, year-on-year increase being 12%. And CCB Life is another app serving people's daily life. We have an agriculture-related financial services network that covers a lot of villages. But here, CCB Life is there to cover people in cities. Since three years since it's launched, its customers exceeded 110 million. And that number puts us comparable to some very... brilliant peer banks, but it took them 10 years to achieve that number of users. It took them 10 years, but for us, only three years. We have been building our presence in over 350,000 online stores. Now we have over 3 million DAUs in the past. National banks, their mobile applications were not good. We prefer talking about total number of users, but we were too shy to talk about daily active users. But now the case is different. We are confident talking about DAUs. Currently, we have around 3 million DAUs. offering internet traffic to online merchandisers increasing their sales. Our applications are popular among merchandisers. People who open an account and use our mobile applications and use our credit services will find it very useful. For example, BYD from Shenzhen and Guangzhou Auto from Guangzhou even started selling their cars on our CCB Life application. If I don't talk about it, maybe these features are unknown. We offer free services to merchandisers to bring them internet traffic. we issued over 4 billion consumption vouchers on behalf of the government in 250 cities. CCB live covers a very large area. So 4 billion RMB worth of consumption vouchers were issued through CCB app. We have more and more new products These examples above will enable us to know how important fintech is in our bank's business. In 2022, we had over 15,000 technology personnels. Our investment in technology was 33.2 billion. Our technology capabilities were used in over 2,500 scenarios. 700 of them are supported by AIs. Big data on average handles over 100 billion entries every day. In the past, in order to serve long-tail customers, We used to ignore the 80% of the market long-tail customers, but now we are able to serve the 20% large companies and we can also serve the 80% long-tail customers. FinTech, the fast development of FinTech has translated our intention to serve the public into reality. Let me give you another example with our development philosophy. We're not happy with increasing our competitiveness by investing in tech companies. We're quite open with that. Our risk control models and other softwares are open to the public. A lot of financial institutions use our systems to build their own ones. So we turned our bank into a tech company. This tech company, 50% of its revenue comes from financial markets. This is to implement the national policy that's to share financial resources because some smaller banks would not be able to develop their own systems, especially in risk control. You also asked about house leasing. When there were turbulences in the property sector, people thought that CCB would be a victim, but contrary to that, we proposed leasing as a major strategy six years ago, and that enabled us to reduce our reliance on developer loans and mortgage loans, and we hope that we can shift into a new real estate development model we used to have a very high percentage in our business for property development but now we've switched to leasing which has played well and looking at what is going on today i'm very happy about how forward-looking we were back then we chose the most difficult task at the first place. That was to enhance leasing market. That was to fulfill our responsibility to society. It was also to enhance our own development, which worked very well. CCB has been working with real estate industry for a long time. And previously people would think of CCB when they wanted to buy a house and now they go to CCB for renting a flat or even pledging their property. That's because we have these platforms above and this is thanks to the coverage of our outlets across the nation. Let me give you some numbers. we established multiple ecosystem scenario-based system and CCB's leasing platform is called CCB Jianrong Jiayuan The online customers have exceeded 47 million customers. Over 16,000 enterprises were on the platform. The applications have been promoted in 158 cities. The application is available in 234 cities. We rely on 270 long term leasing communities. House leasing has brought to CCB over 13 million new customers with a total business volume of 237.5 billion RMB. Corporate leasing loans have exceeded 300 billion RMB, taking up one quarter of corporate loans. This is beneficial to the bank in keeping its credit growth and profitability resiliency Now the national government made it clear to support leasing markets. We were one of the early starters so we could benefit from the trend in a better manner. We believe this is in compliance with the future policy directions. So we will offer supporting services to mega cities and reconstruction project in cities. In the future, there is great potential to tap into. There are always opportunities coming out of risks. CCB was one of the early ones to tap into these opportunities so we can seize them in our hands more steadfastly. we have set up a closed loop from investment to exit. You can see that a new business model is emerging. Leasing funds, as you know, were approved by the State Council. CCB is the owning bank who got the approval. We work with market entities in setting up sub-funds with a total volume of 30 billion, subscribed amount 19.7 billion. We have developed our own public REITs for lazy markets. Now it's the best time to go into M&A's in realistic development projects. Now we can enjoy some discounts when acquiring new projects so we can make sure that the rent will enable us to pay for interests. I'm confident that in the future the market will become vibrant again. We're confident that as long as the rent is higher than interest rate because everyone knows that interest rates is coming down and leasing market will become more vibrant that's why we are very confident about this market by taking this back we can issue rates to benefit the market. So we are both an investor and an asset manager. We are managing these collected funds for the public and society. CCB will adopt a new business model in managing these assets, building our leading position in the market. That's all. Thank you for your interest in CCB.

Thank you. Mr. Tian, just now, Mr. Tian has given us a very detailed response to new finance. So we now welcome a question from Mr. Tian. Beijing. Thank you, management, for giving me this opportunity. This is Li Jun from Guangfa Securities. And I would like to ask a question regarding your operating strategy. We know that for major banks and your net profit growth is closely related with the economy and the market environment. So I'd like to ask in terms of this very complicated geopolitical situation and with very good recovery in mainland China and what is how do you actually support the growth of real economy and improve your operating quality as well as the net interest growth and balancing volume price and risk and what are the specific measures that you will be taking? Well thank you for your question and this is a question that is quite good and we'll see how let's take a look at this so for the first half of this year for 2023 faced with this very complicated operating environment CCB has very carefully implemented all the deployment from the central government as well as the State Council. And in terms of net profit, we have been able to realize a growth of 3.12%, quarter-on-quarter improvement of 1.09%, and for our ROA, ROE, NIM, and car ratio, et cetera, were all leading compared with our peers in terms of NPLs, and it remains very stable whilst actually coming down. The President higher than the regulators requirement and for second half of this year we will continue to work hard and focus on the five areas of relationships and the five areas that would be about the scale and efficiency, the volume and the structure, short term and long term, the partial areas and the overall areas as well as development and growth. We will continue to work hard to create better values for shareholders as well as for our clients. So specifically speaking, we are working in the following areas and which will be improving first in terms of our operating income. Let's take a look at this. This is number one. The other one is to control the operating cost. So this is for improving the operating revenue and the first part is to make sure that we can stabilize the net interest income. which is to say that we look at the volume and pricing. So in terms of the volume, we need to focus on the requirement of the macro economy policies and we need to make sure that we can provide The President helping and assisting with the development of the real economy. In the meantime, for CCB for our loans. At the moment, it has already exceeded $22 trillion, and we need to continue to optimize the structure of such loans. We will continue to enhance inclusive financing to further consolidate our status as the key retail bank for the first half of this year. In terms of mortgage, we have about 52 million mortgages extended and granted to the market. And in terms of our individual loans, we can see that we continue to enjoy very good development momentum compared to beginning of this year. It has grown by 25% and 47% respectively. This is a on our net interest income. And second, we also need to expand the non-interest income for the first half of this year, for the fee income has exceeded $70 billion, accounting for 18.19% of the operating income. It has increased by 0.7% year on year. We continue to maintain this at a very good level among our peers. Second half of this year, we will continue to focus on the following areas, wealth management, asset management, consumption finance, consultancy business, trading business, etc., and to continue to consolidate our advantage in fee incomes. In the meantime, we will also follow the market closely. continue to carry out reasonable allocation of equity and debt and enhance the volatility management, continue to increase the other non-interest incomes stability and their contribution. So this is on the revenue income side. So in terms of controlling the operating cost and there are mainly three parts of the cost. The first one is Capital Costs Establishing the scenario and expanding our users to use digital operation to continue to solidify our client base and to realize a low-cost settlement capital for first half of this year. Our comprehensive service continue to be deepened and we have seen very good results in terms of client's expansion. For corporate clients, this has exceeded 10 million. And in terms of the RMB settlement account, the total is 14.18 million accounts. And inclusive finance clients, 2.94 million clients. Individual clients, 747 million. And private banking clients, over 200,000. And in terms of the interest paying, we can already see that the marginal benefits is emerging and for the first half of this year, the interest payment for individual deposits is 1.75% and it is 0.08% lower compared with the first half of this year. and with the continuous development and push forward, we believe that our debt structure and total volume will continue to be improved. Secondly, to focus on control the credit risk, just now we have heard that we continue to have a very good risk management and defense. So we continue to see that first half of this year our NPL has further decreased by 1 BIP to 1.37% and in terms of our overdue NPL price scissors continues to be negative and the provision coverage ratio has improved by 2.95% to 244.48%. For credit cost ratio, it has dipped by 0.1% to 0.79%. For second half of this year, we'll continue to perfect our three defenses coordination mechanism and to continue to ensure that we can focus on the protection of The President operating cost. We focus on comprehensive cost management, improve our cost input and output efficiency. For first half of this year, our cost-income ratio is 23.69%, continue to maintain at a very good level compared with our peers. In terms of our expenses, there are areas where we keep it down, areas that we ensure the cost and expenses. More of the cost we are now allocating to, for instance, new finance campaigns and digital business as well as business customer expansion area to nurture new Back to Hong Kong.

Thank you, management, for the opportunity. Winnie Wu from Bank of America. I'd like to ask a question about Neem. This year, there were two LPR cuts in June and August, and your bank has adjusted deposit rate as well. How does that affect your ROA and how does it affect your NIM in the second half? And another question has to do with repricing existing mortgage loans after the Politburo meeting. The tone from the national government is to guide banks to reprice existing mortgage loans. If it goes further, how does it affect your name? Thank you. You asked a question of great concern. Mr. Sun will answer your question. Thank you for the question. Very professional. Indeed, LPR cuts. which led to lower deposit rates have posed challenge on names of each and every bank. But due to differences in terms and structures of loans, the situation might be different from bank to bank. Our repricing initiative was primarily done in the first half in March. So in the second half, LPR cuts will have lesser impact. We believe LPR cuts are comparable to deposit rate cuts. They can offset each other. You mentioned that there were two deposit rate cuts in May and June concerning call deposits and agreement deposits. There were some adjustments in upper limits, and we have adjusted our listing rates as well. the impact of LPR cards will have a much bigger impact on next year rather than this year. In general, the reduction of deposit rates might be lower than the reduction of listed deposit rates. As Mr. Zhang said, over the recent years, we've enhanced the management of deposit interest bearing ratio. Our retail banking and corporate banking have seen a decrease in deposit interest payment ratio. The corporate banking business may have seen more increase due to foreign currency reasons, but as for RMB, we have seen decrease in both retail and corporate banking. That means we've done a good job in managing deposit interest payment ratio. As you said, PBOC mentioned in the State Council meeting to reprice mortgage loan rates with the principle of market-based interest rates, but the regulation is still silent on its details. We've been keeping close contact with regulators, but I'm sure there will be some downward pressure. Note that in the latest report by PBOC And it says, to support the development of a real economy and mitigate risks, commercial banks should keep reasonable levels of profit and neem. It shows that stable levels of neem and profit of commercial banks are there to support the sustainable development of real economies. It shows that the government hopes that commercial banks can keep NEMS at a stable level. As for our own efforts, we hope that we can take some measures to at least arrest the slide of NEMS. Since 2022, we've been coordinating economic development and pandemic control. LPR rates for one year and five year time decreased by 60 and 70 BP and our LPR is down by 40 BP so it's still better than industrial average up to Q1 with been doing very well relatively compared with peer banks. As Mr. Zhang said, on the one hand, we hope that we can optimize asset allocation to increase highly profitable assets and reduce those less profitable. We took some measures in Q2, and they worked well. So we could have good asset returns. Secondly, we must develop retail credit services, be it for retail banking or inclusive finance, because they evolve higher quality. As you know, the major EU and US banks have included SME loans in retail banking. If that's the case, we would have a very high percentage of retail. Now, the number stands at 36.5%. And as we said, our inclusive finance takes up 13.4%. Altogether, you have 50%. So we have a big chunk of our business with high ROA and less risks. Thirdly, through enhanced management, we will be able to control the cost of liability. We took some measures in Q2 and we will continue to do so. This is to control those high interest deposits including interbank deposits through digital operation, through platform-based operation. We hope that we can absorb more settlement funds and we must give a full play to our trust services Through that we can bring in low cost assets and through that we can control the cost of liability at a reasonable level. Of course, through pricing management on the loan side, especially those low interest and long term loans, Recently, we adjusted authorization to branches to ensure that our loan rates can stand the test of time. So through this effort, we hope that we can control the NIEM decrease at a reasonable level. In the end, two things that I wanted to tell you, 50% of our loans are in the big retail loans. So compared with other peer banks, we are very, very unique. In line with the national policy, we are improving on both scale and quality. So we will try every means to increase our operation efficiency.

Thank you. Thank you very much, Mr. Sun. So we now go back to Beijing. The President Hon LEUNG Kwok-hung is an area that we are carrying out research on and for first half of this year in terms of our credit extension is actually quite fast and this is quite in line with the overall real economy. This is something that we all know very well. So for second half of this year in terms of our research we can see that there is a quite strong demand whether it is through new finance, inclusive finance, as mentioned by the chairman, and we already have about $110 billion. In addition, we also have some green finance, as well as rural revitalization manufacturing and development. new technology financing, et cetera. And for second half of this year, we can see that there's a lot of these areas that are booming, and those are the areas that we will be focusing on for second half of this year. Just now, we have heard from our president that one area is from retail banking, and retail banking recently has seen some suppression. However, we have seen that all the policies are already there, and for the second half of this year, we continue to see the demand emerging. For instance, the demand coming from small and sole traders, as well as small business owners. So from this area, we do believe that this is going to grow. Secondly, internally, for our retail extension business, we have and support the very important industries, for instance, inclusive finance, green finance, In addition, recently we also have a new industry that is called the happiness industry. This is closely related to our citizens' livelihood from beginning of this year. Looking at our operation for first half of this year, we have a very good policies and in terms of the satisfaction of the demand it is a very diverse for instance from a health care from tourism and from cultural and entertainment etc so for second half of this year as we have heard from Mr Sun looking at the interest bearing assets and in terms of our allocation in terms of the structure we have made some optimizations and to mainly focus on the important areas that are requested by the government as the important areas to focus on and in terms of the property sector and we can see that the government has been very The President The President proposals or debt repayment plans, we have made some optimizations and to ensure a healthy and virtuous development of the property sector. And the second, we implement the plan for the high quality real estate sectors to improve their balance sheet performance. For instance, we are working hard on the activation of assets some continuation of a debt and equity supplement as well as improve the expectations and we work together in comprehensive fashion and to push forward the development of the real estate development so for this area we have seen that our clients are working together with us very well and this has helped a lot of companies to improve their balance sheet and thirdly is to further deepen our new finance practice and improve the quality of our new finance product and we have heard about the housing rental strategy and in the meantime we are also exploring some of our financial services especially working with the property management companies we continue to and perfect our investment financing management and exit housing finance closed loop and for instance we have heard about some rental REITs products and through all of these different measures we are able to activate and rejuvenate the capital in the property market and number four following the market-driven and legal professional principles. We work together with the local government and to ensure the delivery of housing and stabilizing of livelihoods. This is a very hard job. However, we have taken our measures and taken actions very early on. So at the moment, we are leading in this area ahead of our peers. And for the Ministry of Housing and Construction, if you look at their review for our work, for instance, in terms of our mortgages arrangement, etc., they have also given us some guidance and advice. At the moment, we have... The President resumption of construction ratio has already reached 100%, and this is going very smoothly. And in addition, following on, different areas continue to have various demand, and we continue to work on this area. And so far, in terms of the quality, we can see that the quality is very satisfying. Thank you for your question.

Now, back in Hong Kong again, this gentleman. Thank you, management, for the opportunity. Richard Xu from Morgan Stanley. I'd like to ask a question about bond investment. In the first half, bond investment grew very quickly. Local government bonds, LGFV, the credit bonds. Can you talk about the risks and the trends of interest rates? Going forward in the second half, What's your view on the outlook of bond market and does that change your investment strategy? Thank you. Thank you for the question. As of the end of June, The investment balance was 9.26 trillion, which added 713.2 billion RMB, a year-on-year increase of 8.64%, slightly lower than the increase of total assets. Most of the investment is RMB bonds. RMB bonds have grown very quickly in these years. It must be an important part of commercial banks in its asset allocation and it's an important vehicle to support real economy. In China, the bond market is highly marketized. Higher grades bonds occupied very few capital with high liquidity. That's why we have been actively investing in bond market. We've been improved our management capabilities and bond use has been very stable. And over many years, we've been standing out in the industry. As for your question, let me respond to that in the following point. We have been committed to the principles of safety and value investment to serve the real economy. CCB has attached very big importance to real bond yields. In some bond investments, they involve zero capital occupancy. So we need to take everything into consideration, including capital efficiency. In recent years, we've been investing in treasury bonds, local government bonds. and other government bonds in the open market. The total amount exceeded 7 trillion. This is to support the national financial policies. The balance of policy financial bonds exceeded $800 billion. Part of our bond investment was there to support private economy, private small SMEs, green bonds, etc., and some key strategic emerging industries. We've been at the leading position in bond subscription. and we will continuously improve our investment management capabilities. Given that we have very stable found sources and our purpose of asset allocation uh... hold and uh... investment and hold uh... balance is uh... taking up ninety three point eight seven percent and only six point one three percent of the transaction through years of work we have uh... developed a bond investment decision making system combining both qualitative and quantitative strategies. We use multiple factors, risk premiums and other quant models to guide allocation in major assets. Thirdly, we have been very active in being a market maker in bond market and we have undertaking underwriting and distribution business in bonds. We are one of the most important traders and market makers. In the first half, we have underwritten nearly 1 trillion RMB of government bonds and 100 billion of policy financial bonds and 200 government bonds. And we have developed on our own a financial market interactive trading platform, enabling small FIs to participate in bond investments. And in the first half, the transaction amounted to $200 billion. At the same time, we've been working closely with a bond connect of Hong Kong, enabling the interaction between the Chinese mainland and Hong Kong in bond market. In the first half, the transaction volume of bond connect was 200 billion RMB. We have very high quality asset in our bond investment with stable returns and controllable credit risks and we have achieved a balance between security, liquidity and yield. You asked about the trends in the bond market in China. In the first half, thanks to the moderate recovery in China and the open market interest rates adjustment, bond investment saw very little turbulence. But in general, it has been going downwards. In international market, investment yields have remained high for USD bonds, so the situation is rather complex. In China, with the national policies being rolled out to stabilize growth, as was pointed out by the Politburo in July, economic recovery is about ups and downs and twists and turns. Recently the PBOC again decreased open market and policy interest rates and MLF interest rates and the market is to factor this policy change in their strategies going forward. We believe the local governments will emerge at a higher scale. CCB will follow the trends of macro policies. Given that we have a very large existing bond business, we will make the best use of it. So we will do a good job in risk mitigation and optimizing the structure duration of bonds. and we need to strengthen the coordinated management before and after investment. We need to be more proactive in lean management so we can achieve high quality development in bond investment. Thank you.

Thank you very much. Let's go back to Beijing. Lady in the fourth row, please. Sun Lulu Hon LEUNG Kwok-hung 6.41 trillion and we continue to put the retail business development as our focusing and main strategy and for the next step we will continue to use a multi-pronged approach and looking at three areas, individual operating loans, individual consumption loans and individual mortgages and to continue to push forward for the development of the and solidify our status as the number one retail bank. As what we have heard previously, and if we are adding the SMEs, we are even more confident that we would be able to maintain our advantage in this area. Following on, Dr. Chien-Hsien Lo- For individual mortgages, we will continue to support the structural need for housing as well as upgrading need for housing. We will continue to utilize our advantage in this area and to assist with the transfer of second-hand housing as well as a combination of using the Provident Fund to purchase housing and to continue to ensure that our brand will stand out in serving the mortgage market. In the meantime, we will continue to work with high-quality agencies as well as high-quality property companies and to continue to improve customers' experience of obtaining a mortgage. So on one hand, we continue to expand our advantage in this area, and on the other hand, our traditional advantages are maintained and further solidified. From first half of this year, we can see that our mortgage issued continue to be ahead of our peers. In terms of individual operation loans, we will continue to perfect our business model and the service system. As Mr. Tian has said just now, in terms of inclusive financing, we started this quite early, as well as for digital inclusive finance this is quite unique for our inclusive finance as well as our products we have expanded this to the individual operation loans especially for sole traders and small business as well as for farmers we have built the inclusive loans and If we look at the actual practice for first half of this year, in terms of the individual operating loans, it has reached about 47% and for second half of this year will continue to push forward for some very targeted projects such as personal union express loans and to meet the individual operation and manufacturing need. And in terms of individual consumption loans, we will continue to focus on specific customer groups and specific consumption scenarios. This would include for instance credit card business as well as the other for credit card business and it has its traditional advantages. At the moment, the total balance, we continue to see that we are number one among our peers. The next step that we are looking at is for the existing customers as well as the younger consumers and to continue to solidify our competitiveness in this area. In terms of consumption loans, we will need to full fully utilize our advantage in the area such as digital platforms and we continue to connect with our online resources and for instance for new ev car purchasing and renovation of housing etc and for the first half of this year, in terms of the consumption loan, it has also grown by 25%. For the first half of this year, we have officially launched our Jianxing Huirong, this product, and this will continue to play a very important role going forward. Just now, you have also asked in terms of individual mortgages and in terms of the demand has that recovered as well as a payment in advance and what's the current situation for individual loans in terms of mortgages the demand for mortgages for first half of this year from the central government and the local government they continue to have new policies coming out and for the demand continues to be released especially for The President The President up with these policies and will continue to improve our servicing capability to our clients and to actively support the structural as well as upgrading housing demand of our citizens and to help with the The President

Thank you, Mr. Lee. Now back in Hong Kong. Thank you for the opportunity. Question with UBS. In the first half, your fee income was quite stable compared with peer banks. Of course, in Q2, the growth was rather sluggish. We know now people in China have this strong intention to evade risks which led to higher interest rates in term deposits. They're not willing to invest in either trust or wealth management products. Is it true that Chinese residents started to take out some money from their deposits and invest in wealth management products? we've seen very high income from agent insurance business or bank insurance business. In the second half, will we see higher growth in fee income in your bank compared with first half? Thank you. Thank you for the question. This year, The growth in fee income is in line with our expectation in the beginning of the year. In the beginning of the year, our goal was to go for light assets in fee income. So in the first half, The new income shows three highlights, retail banking, transactions, and investment banking. Retail banking saw a 9% growth rate in some key products. For example, third-party payments, bank insurance, and credit cards recorded two-digit growth. The other highlight is investment banking with a growth rate of 5%. consultancy business investment advisor business have seen higher than 10% of growth rate among the banks. And CCB is the only one that offers investment consultant services, which saw 14% growth in the first half. This was pretty much about our intelligence and there were no assets involved. As a major bank, we've been provided services in trust services. As I said, we have seen the size of a trust business of over 20 trillion and the revenue increased by 5%. So these are all light assets and light cost growth drivers. But there were some reductions. In recent years, both trust and wealth management have seen very fast growth. to strengthen our management and to smoothen market turbulence, we have two things to do. One is to protect investors' returns. Secondly, There were some regulatory requirements for transformation in trust business. So we wanted to manage its size so the quality is enhanced and the negative impact on investors is minimized. Of course, transformation has brought to us some impact in wealth management business. Now most of the business is a net value business that comes with less fee income, hence the decrease. Now we're working on three fronts. The first is to solidify our fee income. Through comprehensive financial services, our fee income in corporate banking will be stable. For example, RMB corporate banking settlement, although the growth might not be very remarkable, but it's still very stable. And in the second half, with more macro economic policies in place in infrastructure and as in other key areas like rural revitalization, smart manufacturing and inclusive finance, there will be some opportunities. So consultancy services, investment advisors, there are some business opportunities. Secondly, retail banking will contribute more. Retail banking saw very high growth in the first half, and in the second half, with the recovery of the consumer market in credit cards, third-party payments, and bank insurance, we will see very strong impetus of growth. This was the case both last year and this year, and I think the trend will continue. Besides, Through our efforts in the first half of the year, we have set up a three tier system from investment research to investment advisor. Through putting together a strong team, we hope that we can explore more business opportunities in the broader sense of wealth management services. Thirdly, in asset management, trust and prop trading. We've seen that RMB depreciation and turbulence in foreign exchange markets led to more business opportunities. We can keep high speed growth in arbitrage business and we can control the trust and wealth management business at a reasonable level. In recent months, there was some recovery with wealth management products, so we try to minimize its negative growth. In the second half, I believe fee income will see positive growth albeit very slight and we will adjust our layout in order not to expand the growth of negative impact.

Thank you very much. We'll go back to Beijing. We'll have this gentleman on the right-hand side in row 3. Thank you, leaders, for giving me this opportunity. This is Lin Ji from BOC, and I'd like to ask a question regarding your asset quality. We can see that first half of this year, you continue to have a very stable asset quality. For second half of this year, what is the asset quality and what are the major risk points for corporate and retail business? In recent months, we can also see that the recovery of the economy has slowed down. So do you feel that your credit cost will face the pressure of the cost going up? And what is the future trend for this? Thank you. We will have Mr. Wang Bing from Beijing to answer this question. Thank you for your question. For first half of this year, faced with this very complicated operation situation, we continue to adhere to our bottom line and focusing on the asset quality control as the work priority of the whole group. And by end of June, our NPL ratio is 1.37%. It is down by 0.01% compared to beginning of this year. Special mentioned loans hit 2.5% and decreased by 0.02% compared to beginning of this year. Overall speaking, the asset quality remains stable. Provision coverage ratio 244.48%. It has increased by 2.95% compared to end of last year. So we have very good risk prevention capabilities in terms of asset quality. We continue to adhere to the risk assessment and work on the classification of risks and ensuring our asset qualities. By end of June, our overdue loan is 1.13%, lower than the NPL ratio by 24 bps and overdue NPL The President Our economy has a huge resilience and potential. The overall upward trend fundamental does not change, so we believe that second half of this year, the economy will continue to realize high-quality improvement and reasonable growth in terms of volume. We will continue to build a solid foundation and look at the risk in a scientific fashion and to take control of the risks associated in a forward-looking view and continue to improve the efficiency of risk management, especially our monitoring and resolving and disposal of key areas' risks. If we look at corporate area, by end of June, our corporate NPL is 1.88% and down by 0.2% beginning of this year. For retail areas, by end of June, our individual NPL is 0.61%. Even if it has gone up by 0.06%, it continues to be at a very good level. In terms of the individual mortgages, the NPL is 0.42%. Because of the market impact, it has gone up by 0.05%. However, the trend is in line with our expectation and has not actually impacted our overall asset quality. In the meantime, in terms of the existing NPL, we continue to enhance our operation awareness and enhance our disposal and continue to improve the overall structure of the group and provide a solid foundation and support to the efficiency of the bank. For the second half of this year, we will continue to implement the various requirements from the central government and to actively serve the real economy to support the expansion of domestic demand and benefit the livelihood, continue to enhance the analysis and judgment of the market and continue to resolve such risks and cope with them in a forward-looking fashion. We are confident and we are capable of facing up to these challenges, and we believe that for the second half of this year, the core indicators will continue to be in a reasonable range and will continue to keep the stable level of our credit cost. Thank you, Mr. Wang. And according to the plan, we are already 30 minutes delayed, so we'll welcome the last question here in Hong Kong, please.

Okay. We'll invite a question from a friend from the press. Good afternoon. Lisa Ying with Hong Kong Economic Journal. inclusive finance and micro loan interest cuts were not mentioned by the national government anymore. So does it impact your objective for the whole year and how does it impact the pricing of your loans? What are the main initiatives in inclusive finance by CCB? And in inclusive finance, when you serve customers, how can you make sure that you will control risk at a reasonable level and also MPL at a reasonable level? Mr. Tsui will take the question. Thank you. I believe that you should be proud of yourself to be able to ask the question. And that means inclusive finance is a widely recognized concept globally. Inclusive finance, when being implemented, received a lot of support from State Council and other national authorities. This year, we adjusted some policies I especially want to thank you for raising a question about this very sensitive policy interest rates. In the past, as you know, the policy direction was geared towards low interest rates, but the tone has changed at present. However, in practice, commercial banks should go for market-based pricing. And we always bear that in our mind. So we're not swayed by policy changes. And on the contrary, we are adopting new models to solidify inclusive finance to contribute more to real economy. Some customers have new demands. They demand quick loans. They need to borrow and repay a loan as quickly as possible. So we developed a new product where customers can borrow and repay anytime with a accumulated daily interests. So small businesses can make efficient use of the funds. We've visited some big companies and they have the same demand as well. And this is to realize our objective of giving back profits to real economy entities through these policies so we can help businesses efficiently manage their funds. So in this way, we will be able to balance scale, price, and risks. And we took proactive measures to optimize the product structure. In the first half, The newly added 500 billion, a large part of them was completed online. with a rather low cost, we've done a good job in risk management. So the risk premium, risk cost was also very low. The policies have been very accommodative when it comes to interest rates, but we wanted to give more profit and benefits to the real economy in order to balance scale, price and risks. You've also asked about the impact of new policies on the issuance of new loans. Well, as we mentioned in the first half, the newly added volume was 510 billion. There was an increase of 21.7%. So the policy doesn't impact the size of the loan. In practice, we saw that some grassroots customers had talked little about interest rates. So I believe there was no impact on volume. But there are a few different measures. First, as we know, we have 170 million customers in China and so for such a big size of market we have only covered 2.94 million customers in the beginning the management proposed to increase the density of our work So I'd like to share with you some new numbers through big data management and smart applications through data connection. We have pre-approved 5 million applications. customers through big data intelligence. So we have accumulated abundant resources of potential customers and to achieve that this year we have done a lot. We proposed to benefit over 10,000 enterprises. We propose to increase both the scale and coverage of inclusive finance so that we can increase the coverage of customers. Secondly, Recently, we've done some research on the new customer needs. For example, credit facilities, business partners, banking partners, cooperation procedures and loan terms. Therefore, we optimize procedures and streamline our products. In this process, we optimize the quick credit loads because at present, SMEs have a keen demand for quick credit loans. And we've also streamlined our internal policies. When there were some constraints in our internal procedures, we optimized and streamlined them so we will be able to respond to customer demands very efficiently. Thirdly, In assessing technological inventions as a pilot project, CCB was a good example among the major banks in providing technological product to SMEs so we can promote the knowledge-based structure with SMEs so that we can obtain even more customers. Last year, we upgraded the Huidongni platform to version 3.0. Through the platform, we can offer inclusive finance customers non-financial services like logistics, legal and tax services. Having built such an ecosystem, we were able to have even more customers. we promoted packages of services. In the past, we were keen to offer standardized services, but this year, through comprehensive and packages of services, we were able to offer our customers services that cover an integrated system of comprehensive services through these five dimensions In the first half and especially in recent two months, we've seen that the projects I mentioned above have been going very well. You've also asked about risk management. This is our lifeline. This is very critical to inclusive finance. So on risk management in inclusive finance, we leverage on big data and other smart technologies in checking risks so we can think of the worst scenario including financial frauds so we can forestall these risks before they happen and we have this smart risk monitoring system and we have professional debt collection services this technologies enabled us to do a lot of things in risk management which were not be able to complete it by human beings for example Some small loans could not be put under radar in our management but through data management and model-based management, some funds, if encounter any problems, will send automatic alerts so our offline personnels can go for a quick debt collection. In building this risk control system, we are making sure that smart technology is used in every step and link of our services. So when we select customers, we can filter them with five layers. Sometimes people said that was too much. But through five layers from pre-loan to after-loan insurance, we can go for intensified management and making it more efficient. Therefore, when we improve the efficiency of risk management in inclusive finance, despite the high number of inclusive financial customers, we can still achieve high quality development. As the chairman said, the quality of inclusive finance business is even higher than that of the whole group. So we are particularly confident that we can see the growth in customer numbers and the level of services through very stringent AI-based management. We can ensure safety and high quality of inclusive finance. Thank you very much again for the question. And please do spread the word about inclusive finance, especially this Hui Dong Ni platform. Its features of comprehensive services are very useful to those customers who have insignificant financial demand. And we will have the opportunity to develop a new market for inclusive finance, even in overseas markets. Thank you very much.

According to the regulator's requirement we have already made our advancements public and in the meantime we have also opened up an email for our various shareholders and for this time and we can also see that we have a lot of online exchanges and my colleague has selected one question and which is since this concept for Chinese specific characteristic valuation system and for our small shareholders that they are very focused or concerned about our dividend policy so do we have any adjustment plans Well, let me quickly respond to this. Dividend policy is something that's closely related to the benefits of our shareholders. And for CCB as a state-owned bank that has been listed very early on in Hong Kong, and we are focused on creating benefits and values for our shareholders and drive growth. So for CCB, at the moment, we are a... and especially as you have heard from Mr. Tian for our new finance push forward of this product and our inclusive finance and this is benefiting for 85% of the citizens and the long-tail clients. So we have a unique Chinese characteristic finance development features for our short-term growth as well as long-term growth that has laid a solid foundation. It has also created very good conditions for dividend payout. For our bank to pay dividend, we mainly consider about the willingness of the shareholders and the supplement of capital as well as sustainable development and requirement of the authorities and regulators since 2015. Our dividend payout ratio has always maintained at 30% and with our net profit continue to grow and actually our dividend payout continues to grow in a stable fashion. Since listing, we have already paid out a dividend totaling 1.1 trillion RMB for 2021. A shares. And in recent years, we can also see that A share actually its dividend payout and its yield is better and maintaining at 5% and above. And very recently, we have already realized this is about 0.389 RMB. And we try our best to provide a long term and a stable value return to our shareholders to look into the future we will continue to follow closely in terms of our operation our overall capital situation and the guidance from the regulatory authorities and to reasonably define our dividend payout ratio to not only consider about the current return as well as considering about the capital accumulation and sustainable development of the bank. Whilst creating values for our shareholders, we also need to shoulder our obligations as a national major bank and to provide better values for our shareholders. So our 380,000 employees will continue to work hard to create values for our shareholders and to seek benefits for you all. So This concludes the 2023 interim results announcement. Well, actually, let me add one thing. I can notice that we have a lot of analysts with us here today. Let me tell you that we continue to talk about new finance and you need to make sure that there is a difference between the new finance and the traditional finance. So if we look at this for inclusive finance growth, it's actually driven by big data. It's something that's unimaginable, especially the 300,000 plus branches that we cover in the rural areas and all of these should be areas when you look at the commercial banks and models it needs to be reflected that's something I want to add yes and thank you very much and all the analysts and Because of time, if you have any further questions, you are more than welcome to get in touch with our IR department. We will actively and immediately respond to your questions and concerns. We would also like to thank you again for your long-term support and trust in CCB. We would also like to thank you for coming to our result announcement today, and we wish you good health and all your dreams come true. Thank you very much.