China Construction Bank Corporation

Distinguished investors, analysts, media friends, ladies and gentlemen, good afternoon. Welcome all of you to China Construction Bank's 2025 annual results announcement. Thank you very much for your trust, care and support to CCB over the years. This announcement has two venues in Beijing and Hong Kong. We were connected by video. We will also broadcast to the shareholders and public through the online platform. Present in Beijing include President of CCB, Mr. Zhang Yi, Mr. Li Jianjiang, Vice President. Those in Hong Kong venue include Mr. Ji Zhihong, VP, Mr. Lei Ming, VP, and CFO, Mr. Sun Liurong. Those present also include the non-executive directors, independent director representatives, the heads of departments of head office and Hong Kong institutions, etc. I'm VP Tang Shuo. The 2025 annual results of CCB is already made public today. The PowerPoint is also released on our official website for your reference and reading. The announcement will begin by the speech made by President Zhang. Then we will have the Q&A session. Now, Mr. Zhang, please. Distinguished investors, analysts, media friends, good afternoon. We welcome all of you to CCB's 2025 Annual Results Announcement. 2025 is the concluding year of the 14th Five-Year Plan and also the 20th anniversary of CCB's IPO. In the past 20 years, we have been developing with the National Development, the Capital Market, and we use reform to generate new growth, providing stable and long-term values for our shareholders and also the public here on behalf of CCB. To all the shareholders, to our clients, and to the general public, we would like to thank you all for your support and trust. Today we have reviewed and approved the 2025 annual results and made public. Now I would like to report to you the financial performance, development, and future outlook. In 2025, we stick to Mr. Xi's philosophy, and we have implemented all the principles in the central government meetings and we have also coordinated and promoted the quality development and quantitative development of our overall development and we have achieved steady developments. The core indicators have all recorded near growth. In terms of asset structure, it continues to optimize. The five priorities, manufacturing and infrastructure, loan disbursement, has also recorded more than average growth. And we have also recorded a net profit. Increase of 1.04% at $339 billion and the operating income is also increased by 1.69% OAA Profit before provision also increased by 1.7% YOY All the indicators have a steady growth. NIM is 1.34%, ROA 0.79%, ROE 10.04%, capital adequacy ratio 19.69%, cost-to-income ratio 29.44%, net interest-net income ratio is 22.69%. They are all leading in the market. In terms of risk control, it is steady. and the NPO ratio is only 1.31% and we continue to enhance our capacity. The proficient coverage ratio is 233.15%. So based on the quality and quantity development, Capital is also, asset is also recording, is also recording growth steadily. Our total assets increased to 45.63 trillion by 12%. Growth loans to customers also increased by 7.47% to 27.77 trillion. Financial investments also increased by 12.9%, 20% to 12.9%. The liabilities also increased to 41.65 trillion by 12%. The debt deposits also increased by 7%. Our loan continues to support the real economy and we are also serving the public and the society, support the economy to go smoothly. Based on the annual results, in 2025, we have dispatched a total dividend of 106 million. And we will also have interim dividend for first half of 1.858 RMB per 10 shares. The final dividend for the whole year is 2 RMB yuan per 10 shares. And we continue to enhance our capital capacity over the year. We stick to the inherent high quality development and we have done the following things. First, we focus on core responsibilities and the primary business to empower the real economy. We have advanced the five priorities with skill and quality. We have the technology, digital, green and inclusive and pension finance. So technology finance, the loans are over 5 trillion, and we have underwriting of SciTech Innovation bonds amounted to 72 billion. In terms of green finance, we issued 6 trillion, up by 20.54%. Green bonds, leasing, investment, and funds continue to boom. The MSCI ISG rating maintained at AAA level. In terms of inclusive finance, the loan customers reached 3.69 million, The finance loan balance reached 3.83 trillion. Agricultural-related loans balance reached 3.71 trillion. In terms of pension finance, we actively expanded the application scenarios. There is a solid growth in enterprise and personal pension business. The Pillar 2 management also grew by 15%. Digital finance also accelerated. Mobile banking and CCB lifestyle app. Users reached 546 million. We developed the home living and auto living service platforms. We also provided a lot of digital economy, loans to core business and digital economy. It also grew by 18.7% to $891 billion. We have multiple channel expansion of credit resources, facilitating the domestic and international dual circulation. We actively supported efforts to boost consumption, stabilize the market, and expand investment. The personal consumption loans grew. 29.41%. Balance is at 6.72 trillion in terms of loan balance to private economy, up by 12%. And the loan balance to manufacturing sector reached 3.52 trillion. Digital supply chain financing provided 1.32 trillion. We also support balanced regional development such as Beijing, Tianjin, Hebei, Yangtze River Delta, Greater Bay Area and Chengdu, Chongqing area. The loans and deposits also outpace the bank-wide average. We also continue to strengthen financial service for key areas. We continue to coordinate the cross-border loans and investment and also the The loan balance to the project cross-border M&A and also the loan balance to Belt and Road partner countries also reached $55 billion. We also uphold people-centric finance and enhanced group-wide integrated service. We try to accelerate the transition from a product-driven approach to client-centric mindset. We advanced commercial and banking investment banking integration. Underwriting of non-financial corporate bonds increased by 85%. M&A loan balance increased by 24%. New equity investment scale is 20% higher than over the period. We also advanced corporate and retail banking integration. We deepen the ecosystem-based operation of payroll disbursement and social security card service, continue to upgrade and promote the Xin Xiaotong Payroll Service, advanced development of social security card ecosystem, so that we can connect the corporate and retail banking. We also advanced domestic and foreign currency operation integration, The international business loan balance is 1.5 trillion yuan. Cross-border RMB settlement reached 6.5 trillion. We advanced group-wide integration. The overseas institutions recorded net profit of 12 billion. The integrated operation subsidiaries recorded net profit of 9.45 billion, up by 31% and 7% YOY respectively. We also explored ecosystem plus industry and supply chain plus industry and business clusters service model. We developed 12 enterprise-level models across ecosystem, supported by integrated service throughout the customer journey. And we continue to enhance our customer base. And we also have 785 customers. We also recorded double-digit growth. And for the personal CTS customers exceeded 100 billion, assets under custody is 27 trillion. And thirdly, we adopted a systematic risk approach and strengthened risk and compliance management. With solid foundation for comprehensive risk management, improved three lines of defense risk, governance, We optimized the integrated financing management systems and enhanced comprehensive risk panorama. We also strengthened the penetrative risk management across overseas institutions and subsidiaries. We also tried to accelerate the upgrading of risk control. We also try to look at the management of emerging risks including model risks, data risks, fraud risks, and new product risks. We also try to optimize risk-related processes. The NPR ratio is only 1.31%, decreased by 0.03 percentage points. The SML ratio also stands at 1.77%, also decreased on a worldwide basis from the last year. We also strengthened development foundations and continued to upgrade operation and management systems. We promoted the development of operation data and technology. We promoted AI's application in business system. We also emphasize various risks in terms of the model risks data and fraud risks. We also continue to enhance internal control, strengthen employee conduct management, case prevention control, anti-money laundering, etc. We further enhance the consumer rights protection framework. So the foundation is more solid. Fourthly, we strengthen development foundation and continue to upgrade the operation and management system, promote the integrated development of operation data and technology, and we also enhance the foundation. We have a transformation from a centralized core business system to distributed model. The cloud computing scale increased by 12%. We also have the AI plus technology and framework.

Large more scale model technology has been applied up to 398 application scenarios within the group. We enhance enterprise level large scale operations in many key areas such as tech development, building a more comprehensive cloud system, including an omnichannel optimization mechanism to provide customers with one-stop services which enhance the efficiency of key operations to enrich an online processing scenario and enhance the automated capabilities of our centralized operations to better serve corporations and the public. In the future, we're going to continue to work in line with the 15th five-year plan to find our proper positioning to continue to promote further upgrade and development, continuing to support a new qualitative and high-quality development. In terms of business layout, financing method, customer structure, room for development, and server model, these five aspects, we're going to consolidate and expand traditional strengths and tap into the potential for high-quality development. In 2026, we're going to do four major things. We will continue to serve the national strategy. We are going to do the five priorities on finance business. We are going to anchor ourselves as a leading financial institution of China to continue to enhance our professionalism and comprehensiveness and the integration of our business to strengthen our sustainable business model. To continue to support domestic demand, to follow up on consumption stimulus policies to offer consumer financial services to have a comprehensive solution covering credit payments, merchant services, and value-added offerings to continue to unleash the growth potential of consumer financing to seize opportunities to further expand effective investment to fully expand financial services for infrastructure projects across land, sea, air, digital, roads, network, bridges, and waterways to continue to strengthen our unique advantages here and to accelerate key project progress. We focus on key areas such as ultra-long-term special government bonds, local government special bonds, and new policy-based financial instruments to support the binary star and the two focuses to support regional projects Thank you very much. We are going to continue and commit to advancing high-quality development. Customer operation is all about maintaining a strong focus on enhancing service capabilities. Our asset business focuses both on scale, pricing, and risk to maintain a balance among the three. Our liability business, we're going to maintain a dynamic alignment across scale, pricing, and quantity. We're going to consolidate our base. And our intermediate business is about maintaining category-specific policies across intelligence, technology, equity, and debt financing to enhance our value creation capabilities. Cost management, we will maintain an alignment between cost reduction and efficiency enhancements to dynamically support our growth of our business and to maintain high efficiency. We're going to continue to commit to upgrading our integrated service model. Depending on our customer needs as they change, we're going to continue to invest in investment in commercial bank integration, Domestic and Foreign Currency Integration, Group Buy Integration, and Corporate and Retail Banking Integration across institutions, across sectors, and across markets. We will upgrade and refine the service models across ecosystems, industrial and supply chains, and industrial and business clusters. Deliver personalized services tailored to individual customers across the entire lifecycle. We are going to optimize our services, achieving a tailor-made service depending on the customer you are. We further deepen integration under the binary SaaS model. We will have a more dim-depth product matrix and accompaniment purposes to rejuvenate the financial system. We're going to commit to safeguard the bottom line of risk control. We are going to remember the key of risk management and continue to advance a comprehensive, proactive, intelligent and agile risk control system to improve the working mechanism of the three lines of defense to further strengthen the joint risk management between bank and subsidiaries and enhance the look-through management of overseas institutions. We are going to further adopt a more dynamic loan control mechanism. We are going to roll out inclusive loans and continue to assess regional risks. We are going to hold fast to the bottom line of risk control in order to assess risk in advance and increase our resolution capabilities. We are going to enhance enterprise-wide anti-fraud capabilities as well. We are going to continue to build a better consumer protection system to promote the deep integration of the entire business process. In 2026, we are going to continue with the political and fundamental nature of our business. We are going to continue to keep our eye on risk on the business development to continue to serve the development of our nation to prevent financial risk and enhance our international competitiveness. We will have higher commitment, more pragmatic measures to play the role that we should play in the development of our nation's history, to show our value, to work with all partners, to open up a new chapter of high-quality development. Thank you, everyone. Thank you, thank you President Zhang. Now we go into Q&A. So this event will have questions alternatively from both the Beijing and Hong Kong venues so that everybody gets a chance to ask questions. We hope that everybody could limit yourself to one question so that everybody gets a chance to ask a question and please introduce yourself before you pose your question. Our first question comes from the Beijing venue. May I invite the lady on the left on the third row, please. Hello, I am from CCTV, Wu Zhe Yue. So in 2025, you have achieved a stable and fantastic results. Congratulations. In terms of profit growth, we see that there is a positive recovery trend as well. May I ask... What's the core drivers behind this good performance in 2025? And what's the outlook for our operations in 2026? May I invite our president to answer that question? Thank you. Thank you, Madam Wu, for that question. In 2025, the CCB's business has continued its steady progress. I should say that the high-quality development has achieved certain results. Our steady foundations are getting better and better. Our total assets have surpassed $54 trillion, Our net profit is 339 plus billion, 1.04% growth. Our profit attributable has grown by 0.99% as well. Our operational revenue has also grown by 1.69% and 1.7% respectively, profit before provision. These are the key metrics. In terms of the trend, Ever since Q2, our operational income has continued to grow. Our annual profit growth continues to be healthy. The development quality continues to grow and improve. A lot of our assets have been optimized and improved in quality. Amongst our loan-to-key sectors, under the five priorities that continue to go up, our ROA, ROE, our NIM, our capital adequacy ratio, our cost-to-income ratio, and non-interest net income ratio, all are very balanced. We continue to lead the pack amongst our peers. Our income structure continues to be more diverse. 22.69% non-interest net income ratio, which is a year-on-year increase of 3.65%. Our subsidiary contribution from overseas continue to increase. These two entities has gone up by 0.98% in terms of their net profit. I would say I attribute our success to the following five reasons. Firstly, we are able to stabilize the basic NIM structure and the decline has continued to narrow. In terms of quantity, We have a 9.38%, which is a 1.38 acceleration. Primarily because our core asset growth has been faster, the average liability balance net is at 89.13, which is a year-on-year increase of 0.66% in terms of price. Thank you very much. Investment into mid to long term quality efforts and among non-discount loans for one year plus loans of duration has increased by 0.8%. We continue to consolidate our traditional advantages in this space. Personal consumption loans, personal business loans have achieved double digit growth for three consecutive years. We continue to accelerate settlement of low-cost financing. Domestic loans is 24.34% by proportion, which is still a very good level compared with our peers. Secondly, we offer more in-depth comprehensive services. Non-interest income continues to grow. We continue to create value through service to achieve a win-win situation with our clients. 5.13% growth in the non-interest income front. So we consolidate our traditional interest-based income, but on the other hand, we continue to improve our services, capabilities, wealth management, asset management, and the revenue from all these areas continue to grow steadily, amongst which our wealth management products growth has been faster, more than 25% growth. For funds which we sell and for wealth management is more than 90% growth year-on-year. This is all like higher growth compared with our administrative fees, which is a net growth. We continue to assess the market to improve our investment strategy. Equity-based investments and relevant income revenue has grown by more than 40%. Thirdly, we continue to manage our costs. Fee controls has been working. Our cost ratio is 92.44%, which is a 14 basis point improvement, continue to be a very healthy level, amongst which our operational fee increased by 1.54%. We are going to increase our input into key businesses, accelerate digital transformations. FinTech is 3.61%, which is 0.26% growth of overall in good. We are going to continue to improve our asset management and risk management. Our asset maintains healthy. NPL is 1.31%, which is a year-on-year decline of 0.33%. Our risk management capability is quite adequate. Our provision coverage ratio is 2-3.15%, which is basically flat year-on-year. We consolidate our customer base, enhancing our overall service capabilities. In terms of quantity, we have expanded our scope of coverage for our clients. For corporate clients, 12 million plus, which is an increase of 1.05 million different clients. Our different unit clients have also increased by more than 10%, which is both 9% growth year-on-year, which is 1% faster growth compared with last year. Personal customers have surpassed 785 billion customers. Our number of wealth management clients and private banking clients have both achieved more than 10% growth. Our CTS customers, the total assets under custody have increased to more than 27 billion, which is a high 20-something percent digital growth. Our product coverage, our client activity are all looking good. and CTS, our personal customers have achieved double-digit growth. 2025 is the starting year of the next five-year plan period. We're going to continue to work with the government to build a better life for our people, our nation. We are confident and capable that we can achieve long-term sustainable and resilient business performance. We're going to continue to leverage our traditional strengths in liability management business and to in-depth find more service value propositions amongst our clients. We would have an effective growth of our quality development and a reasonable amount of quantitative development. Thanks to our traditional base, we are able to continue to work on our five key priorities. We want to be one of the leading banks in fintech. The several consumption stimuli policies to optimize the product supply out there in the market, to enhance our international competitiveness, to approve of our quality loans. We are going to develop our service capabilities to better integrate the rural city areas development to continue to build both corporate and Commercial Bank, Domestic and Foreign Integration and Room for Development in our Customer Development. We are going to empower our business development through finance. In terms of asset liability, we enhance our liabilities greatly to enhance our core loan business Thank you very much. to increase pricing management mechanism to restrict the low-yield assets to further stabilize our overall business.

So that the new momentum can be created. We will also optimize our services and increase their quality. And we will also enhance our stability management. It continues to enhance linear management based on the solid development. We should explore more room for linear management so that the cost effectiveness will be improved. Thirdly, we will have to have a preemptive management and get more quality risk control assisted by AI, improve the comprehensive, proactive and intelligent management system so that we can more actively respond to the risks. We have to stick to the three guiding lines, also enhance the... Management of the MPL. Thank you. That's all. Thank you, Mr. Zhang. Now I'd like to invite questions from Hong Kong. The lady on the left, the third row. Thank you for the opportunity. I'm from JP Morgan. I'm Li Li Li. My question is about loan. We see that in 2025, it has the very steady growth to about 7%. Just as spoken, this is the opening year of the 15th five-year plan. So what is the new arrangement compared with 2024 in terms of regional dispatchment and the sectors? How different would it be? I would like to invite Mr. Zhang to answer the questions. Thank you, Ms. Li, for your question. Your first question is about the loan disbursement sectors. In 2025, CCB stick to the real economy service, and we also stick to the strategy of quantity and pricing balance. We also continue to expand our customers and markets. and we are also at the pipeline of the key projects. The loan growth is steady and enjoy high quality. In terms of quantity, we enhanced our capacity to support the real economy. We have two highs and two advancements. The two highs include the growth of 7.47% The second high is the domestic loan is 8% in terms of growth. It is also higher than the CCB average. It also supported the real economy. What are the two advancements? First, in terms of the residential loan and the retail consumption loan, The disbursements are also leading in the industry. In terms of the retail consumption and also the advancement of some structural arrangements, we continue to support the mandatory needs for residential improvement of So in terms of residential finance and retail finance, we maintain our competitiveness compared with our peers. We continue to improve the quality, and we have two elevations in the key areas and key regions. The loans percentage continues to increase. In 2025, CCB also has five priorities. and all the key area and five priorities have recorded double digit growth. In terms of technology loan, it also exceeded 5 trillion and increased by 89% supporting the High-tech company and also the print finance also increased by 6 trillion and the inclusive finance also stands at 3.69 million. We continue to expand our customer base in terms of pension finance and digital finance. It reached 53 and is up by 15% and 18% respectively. We also continue to enhance the manufacturing infrastructure, so the loans to these key sectors have also recorded double-digit growth. And in some key regions like Beijing, Tianjin, Hebei, Yangtze River, and the GBA, Chengdu, Chongqing also has maintained very steady growth. It's also higher than the average. The Retail finance continued to show its competitiveness. The domestic loans also exceeded 9 trillion, and it also takes up 32% of the total loans. Compared with our peers, we also maintain a leading role. This is a solid support for our steady development. In terms of the total arrangement for 2026, this is the opening year of the 15th five-year plan. So we will try to guarantee a steady growth. In terms of structure, it will be driven by the domestic need. Also, we need to nurture the new quality development. The macro policy is more proactive, and we will support the industry upgrading the internal needs Thank you very much. Thank you very much. And in terms of the rhythm, we will also get a little bit more energetic and we will have two anchorings. First to the corporate loans, we will support the modern industrial clusters and systems, realize the New quality development, support the emerging and strategic sectors, especially the high technology sectors, and we will also continue to dig out the investment needs. Centering around the five priorities and manufacturing and key infrastructures, we will also echo the objectives of 109 items in the 15th five-year plan in terms of the local government's dedicated loans and some new emerging markets loans. We will also provide our support so that we can support the industry transformation. And we will also support the domestic demand consumption and its growth. We will also execute some dedicated projects and make full use of the physical policy, support the EV, automobile, the electronic devices and digital devices, consumption and travel, tourism, catering and the hospitality services so that the client's experience will be elevated. We will also guarantee the demands of the service industry and for the property markets, we will also be prudent, support the commercial residential buildings, support the social welfare system reform, and enhance our competitiveness in the real estate sector loans. Through these measures, we will also Our efforts, we will continue to maintain our edge in terms of the retail consumption loans. Thank you.

Thank you, Mr. Zhang.

Now I would like to invite a question from Beijing. The lady. Thank you. I'm from CICC. I'm Xu Hongming. We noticed that in 2025, the decline of NIMS continued to show very steady momentum. So can you introduce the NIMS influences in terms of supply and demand sides, and also what is your outlook for NIMS in 2026? Now I would like to invite our CFO, Mr. Sheng Liu Rong, to answer the questions. Thank you, Mr. Shui, for your question. Your question has two aspects, 2025 performance and 2026 outlook of NIM. In 2025, the NIM is 1.34%, as reported by Mr. Zhang. Vertically, we can see that in 2025, the NIM, narrowed by 2pp, And in terms of the changes in the four quarters, the spread continues to narrow. Horizontally, we compare with our peers. Our name is also maintaining a leading position. So we also have reached a balance in terms of the quantity, price and the spread. So for the 2026, three factors will influence the NEM. First, the savings deposit has repricing and we have completed repricing, so the loan pressure has been alleviated. Secondly, For the high interest savings deposits, most of them will be material. So the interest pressure will be lower. Thanks to in 2024, the bank industry has executed a good mechanism. So we have attributed our growth to that aspect. So it has kind of buffered the loan interest influence to them. Thirdly, through very proactive management and the structure optimization, We have also buffered the negative result of the loan interest decline and through the management optimization and through cash management and also some payroll services so we can make better use of our custody capital. So you asked to analyze from the assets and the liability side. In terms of asset size, we continue to improve the quality of our investment, mainly the bond investment. So the percentage has been increased. President Zhang also mentioned that our interest capital also increased, recorded increase. So for some financial investments, its percentage also increased by 1.6%. So it helps the asset side. and through structural optimization, the negative impact has been offset. In terms of liabilities, so through differentiated layer management, we also reduced some high interest rate savings and we also have expanded some peer savings. So that the high interest savings impact will be reduced. So it also helped to narrow the spread of NIM. For 2026 outlook, we can also look through the macro and micro levels. In Q4 of 2025, the banking report also mentioned that we need to enhance the system and also strengthen our monitoring, reduce the liability cost of the banks.

In other words, in terms of macro policy, the PBOC On the one hand, pays attention to the market orientation of the interest rates. They also pay attention to the reasonable costs for bank operations. I think that macro trend is quite obvious. From a micro perspective, Thank you very much. The NIM decline could continue to slow down, and we are confident that our NIM would still favorably compare with our peers in the future. Thank you. Thank you to our CFO, Mr. Sheng. Next question comes from the Hong Kong venue. The gentleman on the left from the fourth row, please. Thank you. Thank you for that opportunity. I am Yang Shuo, Goldman Sachs. So you just mentioned that you did pretty well in terms of your asset returns, right? What about bonds? Because in 2025, the scale and yield of your bonds were all very good. What's the highlight of your bond investment philosophy? And secondly, outlook in 2026 in terms of asset allocation strategy and investment returns outlook. Can you comment on that, please? So may I ask Executive VP Zhihong Ji from Hong Kong venue to answer that question. Thank you. Thank you for that question. And thank you for paying attention to our performance. So as aforementioned by my colleagues in terms of our CCP investment, you know, actually both our CFO and our president has mentioned how we have increased our efforts in terms of asset allocation. That way our folks are more resilient. That's a very important factor. I'd like to say three things. There is a broader trend in changes in social financing and social lending. In reference to this new environment, we are going to double down on our efforts of asset allocation. Corporate loans for the first time has surpassed other forms of loans. We are going to continue to support this active financial policy, active fiscal policy. Government investments is 12.8 trillion annually last year, which is leading the way out there in the market. And secondly, we will comprehensively satisfy domestic and foreign direct lending needs from our clients. The financial loan growth is quite rapid, like green loans, pension loans, and tech loans. These are all actively growing areas. We continue to participate in Panda Loans. Offshore renminbi markets are continuing to strengthen. which is in alignment with our overall capability to serve the development of the real economy. And secondly, we have enhanced active management, that's another thing, in view of our complicated market environments, and we have increased our forward-looking aspects of our asset allocation. Right now, our bonds have surpassed 12 trillion in terms of size, which is quite substantial. In order to properly manage it in terms of our investment strategy, we are more active and nimble. We want to seize opportunities out there in the market We are able to make much more good use of existing capacity and we have improved integration of domestic and foreign currency We have many ways of asset allocation to optimize asset structure to increase the profitability and stability of our assets Thirdly We are actively participating in the bond trading market to increase our customer service capability. We of course are a big bank and we actively perform our obligations out there in the market to continue to expand our circle of friends in our trading. which is 127% increase in our size of our circle, more than 50% increase distribution and at the same time through satisfying SMEs and the investment needs of various types of clients, the annual transaction volume has surpassed 100 billion. The centralized settlement business is also a key business of ours which achieved new breakthrough. When foreign investors want to come to China and invest in China, We provide a brand new, more convenient channel for them to invest in Remedy Demonomator assets. And we are developing that. And we also provide a fixed income and other FICC types of services in order to satisfy the various needs of our clients. On your second question. Market uncertainty is still quite high at the moment, I'd say. Particularly geopolitical factors have impacted the financial market somewhat. What we need to pay attention is how much will the rising energy costs change the risk appetite and expectations of the market at large. Right now, overall, domestic liquidity is very stable. External market. The volatility out there in the foreign markets are actually greater. Of course, the foreign and domestic market are linked, and we have seen different risk profiles for some types of traditional assets. And in that environment, we are going to continue to maintain our stable, steady, value-oriented investment principle. We are going to continue to make sure to tune our strategies appropriately to respond to the market conditions and strike a good balance. So those are the three major areas that we are going to work on. The three areas are active adapting to changes in daily needs of our clients, including value creation and customer service. And secondly, we know that the Yuan market, the renminbi market, and the opening up of the renminbi market is vast and rapid. Offshore issuance of dim sum bonds is very convenient, very convenient these days. And domestically, we also issue permanent perennial debts to continue... We are going to continue to optimize the coordination across domestic and foreign markets, across domestic and foreign currencies. As a flagship institution, Hong Kong Trading, which is a Hong Kong office in Eminem, an Asian financial hub. Trading is very active here as well. We do recommend international players to actively participate in trading in the Hong Kong markets. A fixed income as an asset class has shown very positive development trends. As the yen market and renminbi market continues to expand here in Hong Kong, we have a lot of opportunities. Furthermore, we continue to emphasize on multi-strategy adoption, more active management in order to make sure that the full group Thank you very much. have played various roles in this regard. We are a service provider, we are a bank, etc. We have to better leverage our foreign and domestic currency integration advantages. And Mr. Zhang has brought this up just now. The targetedness, the diversity, and the efficacy of our operational strategies will continue to be enhanced. In particular, our execution must be enhanced to make sure our investments work out. And furthermore, we are going to increase investment into our tech empowerment to build a smart ecosystem. Right now, digitalization has many applications in financial trading. Things are developing rapidly, and the CCP is going to continue to invest in developing such capabilities, iterating and evolving our systems, upgrading our systems to make sure that finance and bond investments can continue to develop in a high-quality manner. Thank you very much. Thank you. Thank you, Mr. Ji. Next question comes from the Beijing venue. The gentleman on the fifth row on the left, please. Hello, thank you for this opportunity. I am Du Yuhang from CEISF. So my question is as follows. The external environment is very complicated, and our country's economic development is facing a structural change as well. But despite that background, in 2025, your NPL ratio has continued steady decline. Your assets scale is also steady. So may I ask, what measures have you adopted in terms of risk management? And with respect to future risk assessment, what do you think? Expectedly in key core areas such as consumer loans. This question will be addressed by Mr. Li Jianjiang. Thank you. Thank you for your question. 2025 is the last year of the 14th five-year period, and we at the CCB continue to implement the strategies by the central government at the State Economic Reform Council. We're going to continue to focus on resolving and preventing risks as the first priority of our bank. Mr. Zhang has really cited a lot of relevant data up till last year, which is NPR ratio is 1.31 ratio, which is 0.03% decline year on year, 1.77% at 12 BP decline of such loans. As you've seen, right, we have improved on these metrics. And at the same time, our risk management capacity is adequate. Our provision coverage ratio is 233.15% flat year-on-year. So, over the past period of time, in face of various risks and challenges, the CCP has continued to think about the bottom line risk management mentality and we continue to properly coordinate and manage preventative risk management measures to make sure our overall risks are under control. On the one hand, we continue to persist on high quality development to hold true to our baseline security. We want to actively service the real economy, focusing on five priorities to increase our capacities in service of key areas. We are going to continue to do that, and our risk control measures will not weaken as such a result. Our NPL ratios continue to improve and our asset structure continues to improve. And furthermore, we have to defend the risk bottom line resolutely through better risk control measures. We actively, agilely build up our risk management systems. We enhanced the synergy across our three risk management bottom line mechanisms and integrated the group wide risk management. And we started to assess and improve our efforts when it comes to assessing the nature and trends of risks to offer more preventative measures. And over the past period of time, You asked about the increase in risk associated with retail loans. We continue to focus on the changes that need to be made and With respect to our retail business, we are going to enhance the risk management control measures therein and continue to focus on the key risk hedges in the key processes of our retail loan risk management mechanism. So I could say that over the past year, these measures have worked. The CCB's personal loans non-performing ratio has not increased as quickly as it did before. With respect to the current environment, we think risk management in retail loans will still be the key focal point of our work. As our management mechanism, our risk control measures continue to be fine-tuned and implemented better, we are confident that we are able to maintain quality business in our retail business and control the risks therein. The new year would be the first year of the 15th five-year plan period. It would be a key and pivotal year to accelerate and improve management of a great nation. The CCB will continue to implement President Xi Jinping's important guidance on the three key capabilities we have to continue to do risk management properly to better coordinate developmental security. We will work hard to achieve a good start, steady progress, to continue to deserve high quality development and provide a solid foundation. Thank you. Thank you, Mr. Lin. Next question is from the Hong Kong venue. May I invite the lady on the right third row to ask her question. Hello. I am Lu Xiwen from Phoenix TV. I'd like to ask, right now the bank industry is accelerating its deployment in AI technology. May I ask, what are the key initiatives that CCP has with respect to AI tech? May I ask Executive VP Lei Ming from the Hong Kong venue to respond to that question? Thank you. Thank you for that question. This is an important opportunity. The AI technology has provided a lot of opportunity and we are going to implement a nation strategy to continue to do the AI plus implementation to focus on and many more. We have five different data IDC centers with high computational power clusters. And over the past year, in Daojianhu IDC, our computational power continued to be unleashed in Hedinger and Ge'er, in these two new areas. We have advanced IDCs which are being built, and progress is very smooth.

and we also reflect a flop of over 14 billion so you can see that the 1P is hundreds of billions of flops so one flop would be 1.4 billion of Thank you very much. Qianwen and Zhipu and we also has the coordination of the big models and the small models and so the decision-making AI is also being integrated in terms of the digital model we also accelerated the non-structural model and the clearing of the stock data So we know that the potential of AI depends largely on how linear and how well you comb the data. So we need to sort out the data in a good way. And we need to also set up a database, including the experience base. We also introduced over 500 million items of data. of experience data and we also advanced the application of different sectors. We also have the people centric principle stick to high quality development in two dimensions and we also proceed the linear management Thank you for your attention. So I would like to report the six areas. First, in terms of the channel service, the interactive service and AI also completely upgraded our service. We try to have automated identification. and very speedy response through remote dialogue. We improved the quality and efficiency of service for the employees. We also have assistance to the employees so that the convenience of work is also being elevated. Now we have various scenarios applied. and also we are leading in the industry. If the employees want to check up some guidelines or principles or write an article or they want to utilize some data or check up the data, they can all rely on AI to help them. In terms of the business, Bounder is the smart application. Bounder means help the business We have the retail and also inclusive finance all the managers can get all the integrated comprehensive and the whole chain assistance If a retail manager wants to get the customers, they cannot remember too many customers' names. They cannot cover so many customers. It will be already a high level for them to cover 100 of them. But through the smart assistants, they can manage over 20,000 customers. and so the manager can conduct a high quality and high efficiency service to the clients, providing customized service to the clients. In terms of products, AI is deeply integrated into the product, including the corporate and the settlement businesses. In terms of international settlements, have the technological breakthrough through over 500 smart judgment points. We also realized the smart analysis and we have also had the smart extraction of some anti-money laundering points and the cross-border settlement. We know that some cross-border settlements may come in the form of images or videos or even black and white papers. So we need to extract all these information through smart tools. And the third is about the operation. We comprehensively improve the intelligence level of operation. In terms of question response, AI... already reached 99.42%. That means when our clients want to raise questions to the head office, 99% is answered by AI firstly, and the active user daily is over 100%. and we also have a dynamic monitoring and a dynamic management of AI and AI also covered R&D and design and in terms of coding it contributed over 62% adoption over 48% so it helps to improve the efficiency of employees so the 48 test passing rate is very key We know that to design a system and design a demand, whether it is truly useful, especially for a high frequency transaction scenario of banks, we need to have a good test. So the test is generated by AI. It has a greatly improved efficiency. In terms of risk control, we also have AI plus risk control system. In terms of the licensing, the approval vetting system and approval system, we also use AI. We also rely on the generative AI to have a whole procedure application. In terms of approval level, we recorded the WGT growth and in the meantime, the average handling Time also decreased by 30%. We also continue to enhance quality control. We highly emphasize the compliance issue of AI. And we have a multidimensional safety and risk control for AI. And we also established the big model, the alerts and the red flag raising keywords. So that the cybersecurity can be enhanced, the coordination also can be more smooth. We also guarantee the sensing of some sensitive information, the AI tools and also all these AI assistants. When they are used, the users, the human users will be the gatekeeper so that all the AI application will be fully under control and monitoring of humans. And we will also seize the trend and also continue to improve the efficiency and safety of AI adoption. We use technological power to support the high-quality development of our banks and support our financial system enhancement. Thank you for your question. Now we would like to invite a question from Beijing. The gentleman on the right in the fourth row. Thank you. I'm from Guolian Securities. I'm Wang Xianshuang. My question is about savings and deposits. First, can you introduce our 2025 savings growth and characteristics? And then... In 2026, our estimation is that a lot of the savings will be mature, especially the retail savings. So what is your feeling about it? How do you feel about the retail savings? Any new changes? And to respond to the new changes, what are the measures to be taken? Okay, I will answer the question. Thank you for your question. I would like to answer the first question first. We always have a people-centric principle, pursue high-quality development in 2025. We enhance the steady savings and deposits. The savings growth is steady, the optimal structure and have a deep structure. It continues to grow. By the end of last year, the volume is over 30 trillion, increased by 1.21%, 112 million. Guarantee the volume of the capital and we also have to look at the structure first about the retail savings it has a rapid development the balance also increased by 1.7 percentage points to 4.6 percent and the corporate savings also increased by 2.66 percentage points. The savings also increased to over 400 billion yuan. and we are maintaining a leading edge in peers and it will also balance the quantity and quality. The saving is increasing steadily and it is far with the increase of clients and the ratio is Also very steady, also has a slight decrease as compared with 2024. And for the hot topics, the savings are growing steadily. The volume is over 18 trillion, deposits are nearly 12 trillion. And the maturity level also is increasing. The acceptance level is good. And for the financial assets of the retails, it has some new dynamics flowing to the funds, for example. This momentum may continue this year. So we would ride on the trend. In 2025, AUM is over. 23 trillion yuan, up by 1.4 trillion for insurance and some of the precious metal products continue to grow. Next up, we will focus on the bottom logic of wealth management, continue to... to re-enrich the product structure and design more products for our clients. The third is about how we can guarantee the steady of savings. We will follow the momentum and meet the customer demands, the new changes, optimize the service and promote high quality development of savings and deposits. For the corporate and retail needs, we have We have optimized our network like payroll services. Next step, we will also focus on some key products and the scenario coverage, expand the scale of our capital so that the high quality capital can be maintained. We will also respond to the needs, provide comprehensive one-stop services and serving the corporate and the individual clients well. We will also continue to improve our system, provide a good experience to the clients. Now I would like to hand over the next question to Hong Kong. I'm from Hong Kong Commercial Day. I'm Zhang Hongbing. We noticed that in recent years, the fee income of a bank industry is affected by the lowering of fee policy. So the Hong Kong banks are also diversifying the businesses to cope with the challenge. CCB has recorded a positive growth of fee income. So we want to know what are the sources of a fee income increase And what about the intermediary business growth opportunities? Okay, Mr. Sheng Liu Rong will answer the question, please.

Well, thank you for that question, Mr. Zhang. As you said, ever since 2023, due to a series of fee reduction measures, the growth in that revenue for our bank has faced some challenges. In 2025, overall, our intermediary revenue growth is pretty good. Overall, it has reached 5.31% growth, more than $100 billion. Maintaining the momentum on one hand, we also see two positive features. Firstly, is asset light. Our admin fee revenue accounts for 14.89% of overall fees, which is a 0.49% growth, which is leading the pack. And certainly, the revenue structure continues to be improved. In 2025, our asset management, our wealth management, our custody management service business contribution continues to close up. This means that our new types, new kinds of intermediary services growth has seen newfound momentum. In 2025, this new momentum is quite strong. You mentioned that in 2025, our intermediary income, you know, and what are the highlight areas? There are three to highlight. Firstly, we consolidate our advantage in our traditional strengths. On the one hand, We satisfied the money transaction needs for both the private and public clients. And secondly, our traditional bank cards, payment services, settlement services, the revenue on all those funds continue to grow. Our bank cards, The payment settlement related revenue has reached more than $57 billion. In other words, more than half of our revenue comes from these sources, which is our base. Third-party payments is more than $22 billion. Credit card, more than $15 billion revenue. to public entities, more than 11 billion, both foreign and domestic currencies. This is the area that you highlighted. The growth in revenues in these areas is about our solid foundations, our rapid networks, and our continually improved and reiterated products. And as Mr. Zhang, our president, has mentioned, Several accounts with public entities have almost reached 18 million different accounts. Several pieces more of data. Our mobile payments cardholders has reached 493 million, almost 500 million. Our network accounts have more than 100 million different cards holders and our transaction has more than 2 billion transactions annually. These are all leading indicators compared with our peers. And secondly, a key area of development would be in 2025, the Chinese capital markets have recovered and the bond markets has also recovered somewhat and we see opportunities.

In financial management, So last year, in terms of wealth management and asset management, we also recorded positive growth. In terms of wealth management, it is a hard-won success. In 2023, actually the fee income continues to decrease, so we have to enhance our customer base and expand the business scope, so that we try to get more income through these We have intermediary services like selling insurance products, funds and the precious metal products. So the income is around 8 billion. So this is really hard-won results and it attributes to the expansion of our customer base and also our services expansion. The wealth management clients also increased by 8 million. It also has a new increment of 930,000 in terms of the scale. The daily volume is around 5 trillion. It does not include the traditional savings business. So this is about the other wealth management products. The growth is over 15%. In terms of asset management, the revenue is over 15 billion. The AUM is around 6.94 trillion. The growth is over 20%. Another thing worth noting is that worth management and capital management has a very important link, that is custody business. Last year, the custody income also reached 6.5 billion. The scale It's over 37 trillion. It also has a worldwide increase of over 3 trillion. So over the years of exploration, we have a wealth management, asset management and custody business. And these three priorities have contributed a lot to our business. The third area is to promote our characteristics. Some businesses are leading, like some specialty businesses, so we have a competitive advantage. There are several aspects. First, we respond to the diversified needs, financing needs of the customers. So like investment business has also recorded positive growth, around 7 billion. And we have a unique business called the fair selection business. Because we are a construction bank, we are born for construction. We also prosper for construction. So in terms of infrastructure, we have a licensing, that is the engineering consultants. Years ago, the real estate business is transforming and is restructuring. So the consultant business in real estate has declined, but we have transformed the business. In terms of key infrastructure and the information infrastructure, we have expanded the business in terms of the traditional infrastructure like railway, the airport, and some hydraulic projects and the railway businesses. And for the new emerging sectors like the wind, solar, power, and also the fiber industry, We also expanded to a whole life cycle consultancy and the revenue also reached 2.3 billion last year. And we also had the pension finance and the related business. We serve the clients of the social insurance, the settlement, the payment, and also the loan of the residential insurance also are... And for the 2026 outlook, I think it has both challenges and opportunities. In terms of challenges, you also mentioned just now that there is a policy of the fee reduction, so it will continue to have its impact. So this is a common challenge faced by the whole banking industry, but for opportunities, there are still a number of them. Just now, President Zhang also mentioned, no matter from the 15th Five-Year Plan or the government address, we all emphasize the importance of internal demands, domestic demands, and consumption is number one for consumption demand. So we will continue to satisfy the new consumption models. So these will be good opportunity for our settlement business. Like the consumption, the credit card, settlement businesses will continue to be enhanced. The second aspect is the capital market booming. The investment mindset is also enhanced. So we have the wealth management, asset management, and the custody businesses. These three driving forces are very important. And we are also improving the modern system development. In terms of stocks, securities, insurance, loans, etc. So we have multiple licenses of these different businesses. So in terms of integration of all these businesses, just as mentioned by Mr. Zhang, in terms of financing, the financing of credit, financing of different demands, we can also satisfy our clients.

I believe overall, due to many reasons, our intermediary fee revenue can continue to maintain this steady growth trend. Thank you. Thank you for your response. We have, of course, made an announcement about today's results of the announcements, events, and we have collected questions through channels such as our investor hotline, email, and we also have a live stream today, and some investors have left comments to interact with today's event. Most of the questions raised by online investors have been answered in previous questions. But a lot of people are still very curious about our five priorities. We're going to pick one of those questions. This question reads, FinTech is number one amongst our five priorities. It's also a very important lever for building a modern service industry ecosystem and to cultivate new qualitative productive forces. What have you done in this area of FinTech? I'd like Executive VP Lei Ming to answer that question. Thank you for the question. With respect to the service area, service area covers nurturing tech talent, innovative tech services, conversion of R&D results, and to build and run an ecosystem of technology. and we serve tech firms, tech parks, science parks, technological practitioners, developers, institutions and other entities. Specific work include all of our value added services across the entire ecosystem of our bank services. I'm going to comment on those. Firstly, we actively develop our integrated service advantage. We are going to break through our industry and create a positive feedback loop. We are going to be actively serving great financial nations to have solid long-term investments into hard technology. Using our group capabilities in terms of enterprise innovation, we are accelerating equity financing efforts in early stages of investments. We use investment, equity, insurance, bonds, and we use many diversities to empower technological entrepreneurship and industry entrepreneurship. We continue to develop clusters of innovative fund clusters. Please pay attention to the word clusters, right? We work in Hubei, Sichuan, Xiamen, Shanghai. In those areas, we work with the nationwide fund entity to establish innovative tech funds. We use this patient capital to nurture tech upgrade and enhancement and steadily promoting the progress of financial asset investment companies and equity pilot schemes. Accumulative speaking, we have set up 28 pilot funds to continue to enhance the toolkit we have for equity investment. More than 160 issuers investing into more than 180 different tech firms. Thank you very much. Our technological valuation model has already obtained three nationwide level authorizations. Our traditional sheets, the balance sheets, our profit sheets, our cash flow. In the past, our customer service managers basically look at these three things to determine your credit worthiness. But in order to adapt to The development of FinTech, we have innovatively looked at the fourth sheet, what we call an innovation sheet. And in that sheet, we introduced IP, innovative capabilities and information pertaining to the founder of that tech firm to quantify and digitalize and to help more potential tech innovators to access funds and finance. When it comes to enriching our financial products offerings, we have more convenience. We have conversion loans, tech innovation loans, we have a lot of special products which effectively satisfy the differentiated needs of these tech firms across different phases. As you know that tech firms grow very rapidly, but in the startup phase, in the growth phase, and the mature phase, they need different services in both scale and variety. So therefore, throughout their entire life cycle, we must provide them with a basket of financial services. Particularly for smaller micro firms, we have Shanxing Dai, Shanke Dai, these are new specialized products, which has given out more than 160 billion worth of loans, year-on-year growth rate of more than 50%. We have a 5.25 trillion worth of loans to tech firms serving more than 300,000 different firms leading the way across the industry. Thirdly, in our work, we continue to focus on comprehensively building a team in tech and banking to service the nation's strategical development, focus on Beijing, the greater Beijing, the greater Shanghai area, and the greater Bay Area, to serve the construction of these tech clusters, innovative clusters. Wuhan, Xi'an, and Shenzhen, these new innovative areas are also areas where we focus on providing more support on. We have a five-tier project Thank you very much. We have set up a directly operated tech center. These centers can better serve more local clients. And we also have close quarters services available. And throughout the group, we have enhanced the nurturing of a professional team to actively train people who knows finance, who knows tech, who knows the industry. We want to train these talents. to support our future endeavors. In the future, our bank will continue to promote high quality development of the entire fintech ecosystem. We want to continue our quality traditions and to convert those in this new era as Thank you for giving me an opportunity to ask this question. I am Li Jun from GF Securities Company. I'd like to ask a question about personal consumption loans. Recently, the government has launched quite a lot of stimulus policies. The recent discount loans have been widened in scale and the barrier of entry has been lowered as well. May I ask, what's the growth of a personal consumption loan at CCB and what are the applications looking like? And furthermore, when it comes to helping stimulate domestic consumption, what more can CCB do? Thank you for the question. Allow me to answer, Tang Shuo to answer that question. So the CCP continues to implement the strategical initiative of assimilating domestic demand and personal consumption to benefit the public and continue to promote these initiatives. to participate in the major initiatives by the Chinese government to continue to provide more fiscal support and financial support for SMEs and personal loans to satisfy the many different consumption needs of our nation. Personal credit card development indicators continue to be healthy. We effectively are able to stimulate and help financing such consumption behavior. The total balance has reached 620 plus billion, which is an increase of 115 billion, which is more than 100 billion growth for three consecutive years. The balance and growth all leads our industry peers. Ever since the implementation of this optimization, we continue to ramp up our advertisement on these discount loans. We offer discounts with every hand to lower the spending and consumption costs of our customers. We have 630,000 plus customers and provide discount loans for more than 18 million different transactions. We have done three things primarily. Firstly, We actively promote a collaboration between bank and businesses to engage in synergistic efforts. We work with nine commercial commerce borough departments to roll out a spring festival initiative. We have a specifically themed Thank you very much. with a ratio of 2.91, 18.5% growth and 21.3% of growth in consumption and consumption loans throughout the spring festival period. We continue to roll out the basket of policies of stimulating domestic demand to continue to roll out more personal loans, loans for relevant entities and credit card loans. In terms of stimulating personal consumption, we still lead amongst our peers. We continue to handle more subsidy issuance by the government financial fiscal department. A lot of old for new policies for home appliances and other things. And last year in 331 cities, We gave out 20 plus billion yuan worth of subsidies for the government, driving 180 plus billion worth of consumption. This year, we provide systematic support and actively enhance the efficiency of these events. Thirdly, we focus on key consumption areas and to support financial innovation. We want to enhance the integration capability of our service spending, new types of spending, personal consumption type of model, and we are going to adopt a new consumption model. We want new financial services to merge into new scenarios and merge with new forms of businesses. And at CCP's Shuo Qing Hang and our lifestyle app, we built a lifestyle platform, consolidating resources to provide our customers with relevant loans such as upgrading, renovation, buying a car, buying houses. We have a lot of one-stop service and financing solutions. The next step, we're going to continue to work along the main line of stimulating domestic consumption to further leverage our own strong digitalization capabilities to further work alongside in tandem with the government to enhance the quality and efficacy of domestic consumption stimulation policies to further contribute to society. Okay, that's the Q&A session for today. I'd like to thank everybody's participation. Our management have engaged in a frank, professional, in-depth communication with respect to questions on everybody's minds. I hope that helped everybody better understand CCP's strategic measures, our performance and our development trends. We have always cared about management of our market value and investor returns. We have already established the CCP Holdings Limited Market Value Management Scheme and we have relevant provisions and principles to govern the Thank you very much. Thank our investors to enhance our information disclosure and IR management to promote our investment value to the market and actively implement our market value management mechanism. That's basically the content for today's event. If you have any other questions and queries, please feel free to contact us at our IR team at our board office.