New China Life Co H

Ladies and gentlemen, good afternoon. NCI 2025 Annual Results Announcement will officially start. Thank you for the investors, analysts, and friends from the media for your participation from online and offline platforms. I'm the host of the meeting. First, let me introduce the senior management participating in today's meeting. They are Chairman Ms. Yang Yucheng, Vice President Financial Principal, Mr. Gong Xinfeng. Vice President, Mr. Qian Hongbo. Vice President, Mr. Wang Yanwen. We also invited Mr. Chen Yijing, NCAAM president and NCAAM Hong Kong chairman to participate in the meeting. We also have the honor to invite the independent directors of the committee to participate online. This meeting is divided into two parts, the presentation and Q&A session. We will provide simultaneous interpretation. Let's move to the presentation part. Please welcome Ms. Yang Yucheng to introduce 2025 business performance of the company. Dear investors, analysts, and media friends, welcome to 2025 Annual Results Announcement of NCI. We thank you for your long-term support to our company. The year 2025 marks the final year of the 45-year plan, and it is also an extraordinary year for NCI. Facing a highly stressful and complex internal and external environment, all employees have worked hard throughout the year. Our business performance has reached new heights, building on a high base. Multiple core indicators such as total assets, gross return premium, EV net profit, share values, and total market value have all reached record highs, presenting the most outstanding performance since the company's establishment. The company's operation is characterized by excellent performance, optimal structure, rising value, stable returns, abundant vitality, and strong resilience. In 2025, the company's total assets was close to 1.9 trillion yuan, up by 12.2%. Growth rate and premium was 195.9 billion yuan, up by 14.9%. EV was 287.8 billion yuan, up by 11.4%. Non-profit was 36.3 billion yuan, up by 38.3%. The company attests to shareholder returns and share the fruits of its business development with investors. In 2025, the combined cash dividends of the company reached 2.73 yuan per share, totaling 8.5 billion yuan, up by 600 million yuan compared with last year, up by 7.9%. Since its listing 15 years ago, the company has distributed dividend to shareholders totaling 44.5 billion yuan. Relaying on excellent performance, our stock price has continued to strengthen through the year. With the increase leading the sector in both markets, the total market value surpassed 200 billion yuan. In 2025, the company's comprehensive strength reached a new level and achieved fruitful results. The operating revenue reached 157.8 billion yuan, up by 19% year-on-year. Net assets reached 111.5 billion yuan, up by 16%. RE reached 34.7%, up by 8.8 percentage points. New business value reached 9.8 billion yuan, up by 57.4%. NPV margin was 16.2%, up by 1.5 percentage points. The total investment yield was 104.3 billion yuan, up by 31%. Total investment yield was 6.6%, up by 0.8 percentage points. Our solvency has remained adequate. We have impact on our high quality development parts of growth in premium and value and optimization of structure and quality. Both premiums and business value have seen comprehensive growth. FYP from long-term business increased by 48.9%. FYRP rose by 36.7%. An NBA margin and EV have all achieved significant improvements. From structural perspective, FYRP and FYP exceeded 60%. Renewal premiums continue to play a stabilizing role. We have won the battle of transformation to power insurance. Power insurance proportion over our regular payment business increased quarter by quarter. In the fourth quarter, it reached 77%. 13-month persistence rate was 97.1%, up by 1.4 percentage points. 24-month persistence rate was 93.3%, increased by 7.1 percentage points. Surrender rate was 1.5%, decreased by 0.4 percentage points. The company's service to national strategy reached new heights. We improved our management system for serving national strategies, established special groups, and formulated implementation plan. We invested in serving the five major areas in finance exceeded 360 billion yuan. For inclusive finance, we improved inclusive finance products. Underrated 46 Huiminbao projects, investment in the inclusive field has reached 55.6 billion. About pension finance, the second and third pillars of pension have been vigorously developed. The total premium of the third pillar commercial insurance annuity exceeded 60 billion yuan. For technology finance, we provided over 1.2 trillion yuan in risk protection for 14,000 technology enterprises with investments reaching 140 billion yuan. The company has leveraged its patient capital advantage to support technological innovation. Our medium and long-term fund entering the market project was selected as an outstanding case in the 2025 CTV Finance. For green finance, the focus was on investing in areas such as green bonds and public rates for clean energy, with investment reaching 75.1 billion yuan. We have been awarded as an outstanding ESG case by the Publicity of Education Centre of the Ministry of Ecology and Environment. For digital finance, we supported for the development of digital industry enterprises, with investment balance exceeding 68 billion yuan. By 2025, we have fulfilled social responsibilities and demonstrated the commitment of a state-owned enterprise. New achievements were made in rural revitalization, with a total investment of over 17 million yuan. For nine consecutive years, a public welfare project to care for sanitation workers has been carried out, benefiting 6.7 million people. Resources will eventually be exhausted, but the culture endures and thrives. The 2025 was designed as the year for promoting the company's corporate structure. The company practiced a new era of corporate structure. Our corporate value is accomplished first, hard work as a foundation, openness and inclusiveness, and success in action. Our NCI professional and army spirit was professional and army pursuit of excellence, benevolence and virtue, inheritance and innovation. Through organizing honor evaluations, speech contests, special lectures, and lectures by renowned teachers, we have widely carried out 150 cultural promotion activities. among employees and agents, held the 2026 Agents Summit and rewarded outstanding teams and individuals under the inspiration of the corporate culture. Enthusiasm of employees is high, morale of the sales team is high, and coherence of the company has reached a new high. Our brand awareness and reputation has been improved. Sponsored has been real. Over 20 marathon events provided full support for Suzhou Super League and WTT table tennis tournament. Launched brand app PC Libo. Then trading a brand image that is substantial, grand, full of vitality and strength, with stable operation and outstanding service, the coherence and influence of the company culture has been enhanced, ranking among the Fortune Global 500 and Top 50 global life insurance companies. After more than two years of hard work, the company has made considerable and gratifying progress in all aspects. The dividend reform has been released. The momentum of value growth has been strong. Business structure has been optimized. Quality of development has been enhanced. Looking back at the development in the past year, we have carried out the following key tasks. We strengthened strategic planning and made systematic and in-depth arrangements, attach great importance to top-level design. In the beginning of last year, we initiated the formulation of the 15th Five-Year Plan on the basis of thoroughly analyzing market changes and industry transformation trends. After extensive research and three rounds of seminars, we proposed the development vision of building a first-class financial service group in China with insurance business at its core. We formed the three strategic lines, customer-centered, team-based, and employee-partner-oriented. We aim to provide enduring protection, better life, and greater health to customers, create a cause of great love, and fulfill the dreams of entrepreneurs for our team, strive for growth, consistently innovate and support, and realize the ideal of serving the country and the people of our employees, let better products, better services, and better life with NCI. We clearly focus on the coordination of the three fronts, promote reform and innovation, Moving towards the direction set by our strategy, centering on strategic main lines, deepening and solidifying the coordinated development of insurance plus service plus investment, and further promoting professional and market-oriented systematic reform, launched a series of combined measures for reform and development, one initiative in market completion. Firmly grasped the flagship products, promoted transportation to power products. We made efforts to optimize our business structure. We have established a dedicated team with highly With highly competitive products and driving force, we provided systematic support for the transformation in terms of team training, ecological collaboration and assessment guidance. Over the past year, the company's power insurance has been gradually made breakthrough and reached a favorable state, achieving a FYP of 11.9 billion yuan. increased nearly 12 times year-on-year. Substantial and significant progress has been made in product transformation. We will make an effort to enhance the competitiveness of our products, establish a diversified product matrix centered on customers and covering the entire life circle, enrich a variety of wealth management products and pension products, launch innovative products such as Yiyao Wuyou and Kanghu Wuyou, Deeply integrated insurance claim settlement with medical service and nursing services achieve a transformation from traditional claim settlement to product service ecosystem. Adhering to the concept of financial people, we improved the inclusive product system, launched over 20 inclusive products and rural revitalization products, covering multiple groups, built a comprehensive, high-quality, and refined diversified product system. We did our efforts in China and team-building accelerating breakthrough in business transformation. In individual training, we have strengths in the system-based management and self-dependent operation. We advanced to build a high-performing team with strong units. Longtong Feng and the WRP entrepreneurship support team, these efforts have solidified the foundation for our team. We have built an ecosystem scenario and a benefit system. established a wide-stop digital marketing platform, deeper development of the new modern marketing concept of product plus service plus scenario plus technology. The company's FYP from long-term insurance in the individual channel grew by 43.8% NPV. grew by 19.4%. The workforce size stabilized. Average monthly comprehensive productivity per capita rose by 43%. We have elevated the Bank of China to a strategic level since the policy opportunity continue to deepen product transformation and team building. Based on significant optimization of cost structure, total bank premium reached 72.1 billion yuan, growing by 40%. FYP from long-term business reached 37.9 billion, up by 52%. MBV reached 5.27 billion, a substantial increase of 111%. The bank channel contribution to new business value has surpassed that of the individual channel, accounting for a significant share. We improved our service ecosystem and advanced the service empowerment system from scratch, from basic to excellent. Upgraded our five major service brands that cover the ten areas. This ecosystem is designed to deliver excellence in medical care, health management, senior living and cultural tourism, providing diversified personalized service to clients and families, enhance service capabilities and improving client engagement service. It covers over 4 million individuals with increasing awareness and usage. Through the development of this service ecosystem, we aim to upgrade the empowerment experience, guiding the team to transition from traditional marketing to the modern marketing concept of products plus service plus scenario plus technology. Help agents enhance their self-dependent operational capability and realize their entrepreneurial dreams. Increase our investment in AI and technology to enhance customer service capabilities. leveraging technology to empower operation, providing ultra-fast service to agents and clients. The company's one-minute completion rate for policy service stands at 96%. We paid out more than $42 billion in maturities and annuities over the year, and $14.7 billion in claims. We launched 11 large-model intelligent agents, and the NCI Digital Human Ambassador all have empowered service improvement and business growth. We have enhanced our investment research capabilities, built a comprehensive edge on the investment side, strengthening our ability to deliver enduring protection. In 2025, our total investment income reached 104.3 billion yuan. up by 30.9%. Total investment yield was 6.6%, up by 0.8%. Ranking among the industry leaders, the company improved investment, management, and asset liability coordination. We continue to improve investment, We expanded our team of investment professionals, cultivated and recruited outstanding talent, established an investment research allocation system capable of capturing policy, market and industry opportunities. We increased allocation to OCI, long-term equity investment, and PE, addressing the past shortcoming of having a bond base but lacking an equity base on the fixed income asset income. We invested in convertible bonds, bond fund rates, and other diversified assets, reducing negative interest rate spread and reinvestment risks. In response to the requirement of long-term capital to under-market, we established three pilot funds with China Life for a total contribution of 46.25 billion yuan. We strengthen the development of our investment ecosystem, enhance coordination with various institutions with good use of financial resources, reinforce investment risk management, control credit risk, market risk, optimize multi-layer risk buffer system, build robust investment management capabilities, striving to achieve excess returns on the basis of long-term stability. focus on strengthening foundation management to satisfy the company's high quality development. They are the powerful co-authors, clearing the role of head office for design, institution for execution, took the lead in strengthening strategic guidance, resource allocation, upgraded strong foundation project, committed to lay a solid foundation for long-term benefit, empower branches across six dimensions, help them upgrade and elevate their overall competitiveness, optimize resource allocation, launch the re-energizing talent initiative, improve talent allocation with a focus on efficiency, Establish a proper assessment evaluation system for branches and work diligently to enhance return on investment. Improve risk control system. Execute penetrating full coverage and integrate risk control framework. Refine authorization system. Achieve group level management goal of clear authority and responsibility. The year 2026 marks the beginning of the 15th February plan and the company's 30th anniversary. Demographic shift, technological innovation, industrial upgrading and transfer of household wealth allocation will accelerate transformation, imposing higher demand for the company's operations. At this starting point, We will keep in mind original aspiration and mission of finance for the people and for the country, take corporate culture as the soul, take strategic planning as the directional guide, seize market opportunities, improve the synergy across the three fronts, focus on core business, continue to deepen reforms, enhance our development capacity, and persistently build a powerful new kind of life. First, integrate and serve the broader national agenda. We will practice the big insurance philosophy, committed to the vision of becoming a first-class financial service group in China, with insurance at its core. Fulfill our social functions. Eject more patient capital into the strategy of achieving technological self-reliance and self-strengthening. expand the supply of pension finance, inclusive finance, accelerate digital transformation, focus on car business and strengthen our life insurance business, adhere to a value and profit-centered approach, optimize business mix and revenue structure, drive optimization of business and profit sources. Develop power insurance and other floating return products. Enrich the supply of long-term and health products. Create a close loop of health insurance and health management. Accelerate channel transformation and team development. Enhance the core component of life insurance business. Elevate organizational development to a strategic level. Enhance the value of Bank of China. Build an integrated online-offline internet ecosystem. Upgrade the profit model of group insurance business. Leveraging the powerful synergy of one NCI will transform the company's strength into market competitiveness. Establish a new model marketing concept and practice the new marketing model. enhance capabilities and standards in serving customers, build a service ecosystem that's more quality-driven and more closely aligned with customer needs, become a comprehensive financial service provider for customers. We will use our concrete action, put in practice the value proposition of finance for all the people, delivering enduring protection, better life and greater health. We will be a modern insurance company that's professional, warm, mission-driven, and worthy of long-term trust. Fifth, leverage the advantages of patient capital and long-term capital. We will optimize the asset allocation structure, improve the investment research system, build a multilevel investment portfolio, highly value asset allocation, enhance investment management, and elaborate coordination. cultivate long-term value creation, become true patient capital and high-end level capital. Six, remain committed to laying solid foundation for long-term benefit. We will build a stronger headquarter which will lead the branch office to become stronger. We will balance development and security stress and implementation improvement of risk control system. We will increase technology investment and reinforce full scenario AI empowerment. Going forward, we will adopt a courageous competitive stance and a spirit of striving for excellence. Pursue boundaries through innovation, enhance long-term competitiveness. achieve a solid start to the 15th five-year plan. The above is my presentation of the company's business performance. Thank you, Mr. Yang. Next, we move to the Q&A session. Due to time limit, each person is limited to two questions. Please let us know your name and the institution you work for.

Thank you for the presentation. I'm from Social Security. First, I want to congratulate on your performance last year. I have two questions. First is about the abilities. We can see you have reached record high last year, and I want to ask on a high base last year, how do you – comment on the growth expectation in 2026 and what is your product strategy. And also I want to ask about the participating insurance, what is your goal and plan for the transition to participating business. And the second question I want to ask about the asset. In the past three years, we are in a low-rate environment, and the net investment yield of the peer companies is going down, and I want to And we can see the total and the comprehensive U.S. and EU, the lead industry in 2025. And I want to ask the management team how do you view the interest rate and equity market, and what is your strategy in your asset allocation? Thank you for your question. First, let's see if I can answer your first question. Thank you. For 2025, we have yield remarkable results. The total GWP increased by 15%, FYRP grew by 15%, and in 2024 and 2025 has realized a very fast growth and laid a high base for our future growth, but we are confident on a high base we can maintain a steady growth. In 2026, we will further serve the national strategy and to embark on the road of high-quality growth road featured both value and volume growth and structure and quality improved and we will focus on the key areas that drive the value growth, speed up the channel development transition, and to consolidate our business capabilities. And in 2026, we will provide the best business performance to celebrate our 30-year anniversary and reward the trust of our customers and the support of the investors and all walks of the society. In 2026, we will stick to the customer-centered development strategy. For the individual insurance channel and the bankership channel, groups channel, as well as the internet channel, we will make full efforts, strengthen the combo sales of products to meet the diversified demand of the customers. In the past, we have done a good job in the sales of whole life insurance, and we are confident to make efforts in the sales of the participating and health insurance, and we will return to the assets of insurance to consolidate our business quality and to realize sound growth of both MBV and premium income. And more specifically about the product you definition, as well as the competition strategy, I want to emphasize the following. First, we will implement the new marketing concept of integrating the scenario, product, service, and technology by virtue of the high-quality medical resources. We will focus on the treatment, medical care, and nursing as the center and provide a multi-level tiered and diversified products combining the insurance products and the health service and we will combine the wealth management products with the aged care community and the tourism resources to build our insurance plus aged care community and also as I mentioned management strengthen the coordination to empower the floating benefit products. And in 2026 we will emphasize the sales of participating whole life insurance but this is not the sole product we will provide. We will also introduce measures to promote other wealth management products including the annuity insurance and health insurance and also we will fully leverage on the tax benefit policies and pension policies of the country and to introduce products and we will include the important products including the whole life annuity and the aged care pension products to include in the individual pension products and we will provide the whole life circle to whole life circle health solutions to customer including the prevention beforehand in process control and rehabilitating afterwards and will provide diversified product pipeline and we will seek the policy opportunities and the sales and provide and explore the products, including the participant health insurance, the consumption and medical care insurance, the specific medicines, the disability and the unit-linked products, et cetera. And about the transition to participant business, I want to emphasize in 2025, we have, we are we are determined in this transition and have a good start and for example in the sales we have made breakthroughs and in last year the sales of participating business is 12 billion and given that we haven't sold the participating business for many years and this is a hard-won result and especially in the third and fourth quarter last year we have strengthened our efforts and yield expected results. And on the other hand, in terms of our management system, we have effectively coordinated resources of the front and the back office and introduced incentive policies, trainings, products, publicity, compliance support, and asset liability matching measures to establish a sound management portfolio and a system for the future participating business. But in 2025 is just a beginning. We will continue our participating business transition focusing on the product portfolio expansion. For example, we will strengthen sales of annuity insurance products, strengthen the product innovation, and seek the policy opportunities of participating health insurance. And we will try to sell the right products to the right customers, avoid the misleading sales. And also we will try to coordinate the SLA ability measurement, and we will try to reward the customers with sound business performance and let the customers have a higher sense of gain and satisfaction. Thank you. This is my answer.

Thank you for your recognition for our business performance in 2025. Our total investment yield reached 6.6%. After considering some other indicators, we could make it to 6.9%. This is due to the fact that we have continued to uphold long-term and value investment values. Your question regarding two areas, first on the interest rate trend and second on the active market. First, about the trend in interest rate. We believe in short-term it will experience fluctuations. The credit spread will tighten, term spread will widen. Short-term funding conditions will be loose and have more certainties, but actual long-term bonds will more fluctuate. Long-term and short-term interest rates will diverge in low interest rate environment. How to get favorable returns? We need to consider the interest rate trend rightly. About active market, we have confidence for the medium and long-term development of China's capital market. We pay attention to three themes. First, up-performing sectors in up-circle. Second, those confronted to the national strategies, especially new productive forces. Third, high dividend. strategy in low interest rate environment. Based on the above judgment about the capital market for the SAA, we will carry out the following principles first. As a liability matching principle, we will think about the future of liabilities. Make sure the investment return can cover the liability cost. Second, we will continue to uphold diversified allocation philosophy in fixed income, equity, and alternative assets. We will make a rational structure. enhance the profitability elasticity. Second, return orientation. In the market fluctuations, we will pay attention to margin of safety, grasp phased opportunities, and bring sound investment returns to customer and customers. The uncertainty in macro environment and financial market will pose both challenges and opportunities to the company. We will follow the macroeconomic changes and policy changes, we will seem to bring stable return to the market. I'm from Shanghai Securities. I have two questions. NCI has established three pilot funds with peers. What's the actual result? Will you further increase your diversification asset allocation? Second question is how would you view AI's impact on the company? What's your future plan for AI empowerment? Thank you for your question. Regarding three pilot plans, we started from March 2024 to now. In the past two years, we have achieved both social result and economic result. We have been fully carried out the central government decision. Under guidance of NFRA, we responded to the requirement to enter the market. With peers, we established three pilot funds. Our total investment reached 46.25 billion yuan. The target fund is conducted to the asset management about your second question about diversification investment. This is our key strategy. We will based on the following three considerations. First, in the low interest rate environment, We must make diversified investments to increase our long-term returns. Second, in the 15th five-year plan, our company is undergoing a transformation with the improvement of capital market. We have been presented with opportunities to participate in the capital market. We have improved our professionalism, including our improvement in the front office and back office, which all lay good foundation for us to engage in diversified investment. We are confident we can provide sustainable returns to shareholders and customers. Thank you for your question. This is a very fancy question about AI. I'd love to share with you our view about our thinking about AI for 2025 from the top level to the grassroots operations. we are confident that we all embrace AI. AI is not a vision of the future, but it's fundamentally reshaping the industry. The key in the transformation does not only make us tailor-made pricing, but also enables us to provide customized service and real-time responding. also unable to real-time warning and monitoring. In the past year, we have been impacted fundamentally by AI. In customers, AI make us know customers really. Secondly, in operation, AI makes us reshape the service process. Third, for risk management, AI let us guard our risk bottom lines. We have awarded 12 authoritative awards from authorities such as PBOC, China Academy of Information and Communication Technology. We have got ISO Business Continuity Management System certification. And passed the DCMM false terror recognition. And make our service better. whether the illustration system, AI proposed 258,000 proposals about AI makers for improvement in qualification inspection. We put on 111 AI agents with 97% solvency ratio. Accuracy ratio hit 100%, covering 3,500 counter staff and over 100,000 agents. those measures improve our digital customer engagement liabilities for 2026. We will make measures in the four areas. First, we will implement the 15th February plan in technology. Secondly, in expansion of AI applications, we will build seven virtual employees covering seven areas through the large-small model synergy. We would like to have digital productivity equivalent to 3,000 people. Make machine do their own stuff and make people do more valuable stuff. Dig data value deeper. We would empower data from visibility to true value. Make data core assets to drive business performance. This year our focus is on the development of corporate cloud. We aim to establish one cloud multi-chip infrastructure resource framework. Technology empowerment has been through every corner of corporate operation. We will maintain our strategic resolve. and to make AI more productive for the 15th failure plan.

Thank you for the opportunity. I'm an analyst from Guadalupe Securities. Congratulations on your remarkable results in the asset liability side. And for the asset, you have evident mark of sound performance. And I have two questions about liability in the past. Two years just now Chairman Yang and Mr. Gong have mentioned you have realized fast growth and high quality growth of MBV and I want to know what are the main drivers behind this and in 2026 you have speed up your transition to participating business. And in this process, how can you strike realized growth of both MBV and MBV margin? And the second question about bankers' channel, which has been a hot topic since last year, and I want to know your distinguished competitiveness and advantages, and I want to know your strategy in 2026 to realize further high-quality growth of the ventures channel. First, let's welcome Mr. Gong to answer the first question. You've asked about the MBV growth and the drivers behind this. The main driver is to implement the high-quality growth philosophy in 2020. to this rate to 2025, we have realized three consecutive years faster growth. And for numbers, we can see 2026 is 3 billion, 2024 over 6 billion, this year is over 9 billion. The growth rate is 25 percent, 107 percent, and 57 percent. Those growth rates is heart warm and we can see in this process we have constantly implemented the internal driven high quality growth philosophy and introduced a series of reform measures that can lead a solid foundation for long term growth. And the growth of MBV is a result of those reform measures. And the second is we improved the product competitiveness, which is a top priority for us. We believe and we also want better product stay with NCI. And we want to introduce comprehensive and acquisitive product portfolio for customers and to truly help the customers and the agents be more confident about NCI and our product. Thirdly, we improve the sales capabilities of our agent force. And from the recruitment, we emphasized the targeted recruitment, especially recruiting those high-performing agents to increase the quality and quantity of the team. Since the team nurture, we can see we have more efforts to improve productivity of our agents and improve the retention rate of the agents and let the agents to grow with our company. The third is we introduced combo measures and in the past two years focusing on the mass customers, the individual customer we have introduced series of service ecosystem and services. And we introduced five service brands to serving different kinds of customers. And those combined and the combo service and products can make our customers gain more sense of gain and to make the sales easier. And lastly, as we... We emphasized the management of the business quality and we focused on the management of persistent ratio. Thirteen months persistent ratio rose to 97 percent and 25 percent persistent ratio surpassed 93 percent, the highest level in the past five years. which has enabled the long-term and sustainability of our business and bring higher margin and MVV value to us. And for the influence of transition to participating business and its impact on the MVV, I want to say that we will continue to put forward the transition to participating business and we are determined to promote the transition. And this is also in line with the regulations, advocacy of promoting the floating benefit products, and also we hope that the customers can share the development results and performance of our company. Thanks. for the MBV margin, it will have certain impact on the MBV margin. The MBV margin for paracetamol is lower than the traditional product and it poses certain challenges to the growth of MBV and MBV margin. And we are fully aware of that and are prepared of that. We have introduced a series of measures to improve the MBV and realize steady growth. First is we will further grow our business based on a high business income last year will further stimulate the enthusiasm and morale of our team and the staff to increase their capabilities and the confidence to sell and hope that we can have a higher growth of the volume. Second is we will further optimize the business structure, grow the assets business of insurance we will further diversify our product mix and to diversify the profitability drivers and we will make up for the weaknesses in terms of the health insurance and long-term annuity insurance, et cetera. For those efforts, hopefully we can have a higher leverage effect to promote the individual service we want to. shape the channel competition. And now we are facing a fast-changing environment. There's a higher requirement from the regulators as well, and the company will strengthen the growth of the team quality and quantity. improve the core competitiveness of the bank's channel in their channel distribution and productivity and to contribute higher to the MBV growth. And also we will grow the internet channel. establish a new driving force for MBV growth. And last is to reduce the cost and to optimize the cost efficiency and the efficiency of the resources. And we believe with all those efforts we can further promote the growth of MBV in 2026.

Thank you for your attention to the Bank of Georgia China ONCI. In recent years, our bank insurance business has posed a strong growth. It has become an important engine to drive the company's growth in size and value, especially for 2025. we elevated the bank insurance to a strategic level and live up to expectations. It made good achievement in 2025. FYP reaches 37.93 billion by 52.3%. FYRP. Almost 18 billion yuan are by almost 30%. And BV are by 110%. From compared with our peers, our premium and regular premium moved up in the rankings and improved our market share. Take a look at the internal structure. Bank of China, FFIP and MBV contribution has already made half contribution. enhanced its important role. Our bank insurance channel is rich in heritage and constantly evolving. We pay attention to both premium and value. We have accumulated advantages and moved stable in market competition in 2025. Our differentiated competitiveness relies on stable progress. First, we need stable progress in customer management. We know for life insurers, our key component lies in customer management. We build a comprehensive, refined, diversified product system meeting customers' diverse needs for service and based on the whole LifeCircles ecosystem. We collaborate with banks, upgrade experience for customers. For investment, we give play to professionalism. which laid a solid foundation for the transformation of the Bank of China. For customers' engagement, our insurance plus service plus investment model had built a foundation for long-term development. Second, we made progress for China cooperation. We have 56 bank partners, including SOE, local commercial banks. On the basis of broad coverage, we pay more attention to deep cultivation. We join hands with banks to make better use of advantages and synergy, make one plus one more than two. I was glad to see our ranking with large banks has been improved, active outlets up by 40%. We have seen a good result between asset and liability synergy. Third, we have made stable progress in team development. We, based on Strong Foundation Initiative 2.0, initiated reform of building a high-performing agent team with strong units, three-thirds principle. The workforce growth rate exceeded 20%. On the basis of that, our average per capita productivity rose by 17%. Our professional army for the Bank of China grow with their bank partners and toward the winning results, which all win recognition from our bank partners. Looking to the 2026. The Bank of China market will have new features. We have reached consensus on the following three areas. First, premium will continue to grow. Customer needs will become more diversified. Bank demand for fee income become increasingly rigid. Life insurer pay more attention to Bank of China. Under all those indicators, For next year, FYP is expected to grow. We have already seen it in the first quarter of this year. Second, market requirements will significantly improve for the consistency policy. Last week, NFRA made further requirements and detailed requirements for the consistency policy. Improved consumer protection mechanism. Customers' expectation for product and service will be stronger. I believe bank will impose more higher requirements for the life insurance. All those new requirements will pose challenges and opportunities for the company's comprehensive strength. Third, market landscape is accelerating divergence. The market will rapidly evolve toward market concentration, mass effect will become significant. For those with more professionalism and a higher capability in asset management will grasp market opportunities and move toward high-quality development. We believe 2026 China's bank assurance market will mark unstable growth. For next year, we'll grasp opportunities in the market, give full play to the synergy of one NCI, promote the insurance plus service plus investment model, We hope to promote stability through progress faced by the 2026 market. We aim to promote stability through progress. We need to do more in the following three areas. First, further deepen cooperation with banks. Together with banks, we will together carry out fair articles in finance and win for winning results. Second, strengthen technology empowerment. Enhance team professionalism and comprehensive service abilities for the expanded ecosystem. May the customer diversify the whole life circle protection needs. 2026 marks the 30th anniversary of NCI. We will keep up with the time. and make our bankers' brand more brilliant. Pay attention to the premium growth and value. Contribute more to the high-quality development of our company. Thank you.

Next, let's welcome the questions from Xinhua News Agency. First, congratulations on your sound performance in 2025. First, now we can see the macroeconomy and environment as well as life experiences, profound changes and what are the opportunities and challenges facing NCI. And this year is the beginning of a 15- to 5-year plan, as well as your 30th anniversary, and what are your key strategic measures? Thank you for your question. Next, let's welcome Mr. Yang to answer this question. Thank you for your question. question. This year marks the beginning of the 15th five-year plan as well as the 30th anniversary of the NCI. This is a meaningful question just now in the presentation. I've mentioned 2025 is a remarkable year for NCI. This year we have fully planned our strategy to improve the coordinate development model of insurance plus service plus investment and introduce the strategic main lines of customer medicine center, TMAS, the foundation, and the employee as the partner. emphasize the reform and focus on the top-level design mechanism, business transformation, product service, investment management, talents, resources allocation, the operation technology, and the branding and character, et cetera, and to promote the systematic market-oriented and professional reform to release the constant dividend for us. And just now you've mentioned we've seen that in 2025 the total assets premium income, EV, the net profit, shareholder reward has reached record high since we've established in the past 30 years. We can see now NCI is a country with rich heritage, strong strength, and sense of responsibility and mission, and also we are vibrant and full of cohesion and execution. And first I'd like to answer the question about opportunity and challenges in The 15th five-year period, there's a huge change of domestic and international macroeconomy, and there's huge changes for the life insurance sector for its position, business model. We believe they both exist, but the opportunity is greater. for the opportunities – the first opportunities that we are embarked on a new journey for the Chinese modernization. The 50th of the year plan has put forward a great blueprint for the high-quality growth and a plan for the modern industrial system and the independent technology growth and greater protection. better livelihood, those major taxes, which is in line with the function of insurance sectors and explore great potential for the value growth of the sector, which is the biggest opportunity for the insurance industry. The second is we will see the opportunity from the greater areas of finance. Now the aging population has posed systematic changes of the risk of protection demand, especially together with the transmission of the economy and the structure. We can see there's a greater potential and the importance for life insurance to serve the economy and serve the area of finance. We are, we will provide the coordinated service from the risk protection, wealth management, medical care, the tourism and the commercial research, et cetera, and also this provides greater growth potential. Who grasps for the opportunity in the patient finance will seek the golden 10 years, next 10 golden years. And the third opportunity is from the wealth management. The new 10 guidelines of the insurance sector was included in, has set forth that the wealth management will be included into the main business of insurance, which has extended the meaning of insurance and there is a diversity demand. for the wealth preservation and which was regarded as the deposit migration and we are experiencing the golden opportunities and a period which will show greater advantage of life insurance which can provide stable yield, the preservation and succession. And for the challenges, first is how can we respond to the low rate environment and the risk to spread losses and now the rate yield is in a low level and the financial exposure to the NSA, the real estate is decreased. and a lot of premiums come to insurance company. How can we transform those premium into the long-term return to customers that can rise through the cycles and fluctuations is a challenge and post-hire requirement for the operation and investment of insurance. And inside of a company, I've always emphasized that we should have the responsibility of respect to every premium and deliver sound service and secure every investment to deliver our commitment to customers of bringing the enduring protection. The challenge is that how can we serve the customer with our professional, meticulous, and efficient service and to bring the long-term value to our company. And this means we need to promote the virtuous circle between the insurance plus service plus investment. provide the whole life circle service covering the product, medical care, health care, etc. And we should also apply the technology and operation to improve their customer experience to further grow the development energy and EV and value of our company. And this is my answer to your first question. And about the the question about the opportunities and challenges facing NCI, and next I would like to answer your question about our strategic priorities in the 15th Five-Year Plan. The board and management team of NCI emphasize the strategic planning. Since March last year, we started the formulation of the 15th Five-Year Plan, established a leading group and working group, and we have held three large-scale seminars to discuss the strategy and conduct a series of research and seek opinions and suggestions from our whole system, and they introduced the coordinate development model of insurance plus service plus investment, practice the strategic direction of practice, large insurance plus affair, build a strong NCI, and we will strive to build the leading insurance sector with insurance as the core. And we have formulated our general master plan and over ten key sub-plans including the marketing, training, product, service, investment, operating and technology as well as several plans for the subordinate entities as well as the subsidiaries. And through the thorough and extensive research discussion we have established our development model and focusing on our vision of building the leading financial service sector with life insurance at its core and our general master plan has formulated and the sub-plan has also covering a lot of areas of our business as well as the plans for the branches and the subsidiaries. And in the next five years, the blueprint is clear. And specific, and as a company who has a rich heritage and aspirational about our future, we have accumulated many development foundations and premises. For example, we have a strong asset and adequate sovereignty. And also we have nationwide distribution channel and institutions. We have a strong investment capability and asset management, liability management. We have talents and excellent brand and culture. fully give full play our advantage and to bring the blueprint into reality and in the next and realize a splendid development in the next several years and we will focus on the phrase areas for first is to practice the strategy of customer centered to improve the competitiveness of life insurance business. And this is also an important direction I've experienced in the past three years. And in the future, we will integrate those philosophies into all areas of our product. And in terms of product, team, service, operation, technology, we will take efforts and increase our capabilities to create competitive products to enrich our scenario-based ecosystem-driven and high-retention services, and we will stick to high-quality and cost-efficient service and bring more friendly and scenario-based operation experience to customers. And also we will, based on our strong investment capability and performance, to build our brand credit and to lead the market and improve their sense of gain. We will try to lead the market and improve their sense of gain. We will be committed to the main business of insurance and grow the business and this is an important criteria in a low rate environment to test the capability of the operation for insurance and also important assets for the company to serve the national strategy, and we will improve the proportion of health and long-term traditional insurance and to optimize the product structure, business structure, and the income structure, and to shift from the interest lines to value-driven and to return the policy to the assets. of business to return the service to customer, return the team to professional development, and we will strive to improve the core competitiveness of our laughing business. Secondly, we'll focus on the strategic priorities and to increase our competitive barrier, and we will implement the team as the foundation strategic mainline to take effort to increase the organizational development. We will have upgraded our fundamental law that will assist system-based operation to build a WLPC training system. increase the volume and productivity of our agent team and also we have nurtured a series of star agents and to create specialized large-scale and high-quality entrepreneurial agents and we will build individual insurance and back insurance dual engine growth model for channels, and we have a strong foundation and will further seek the opportunity from the policy of aligned fee experience with assumptions and migration and accumulation of people's wealth. the cooperation with banks and build a stronger functions outlets and team to improve its volume and the value contribution and to be a top performer at all respects aspects and the world strengthen the investment in technology including AI and big data and to promote its integration with the product, service, investment, and compliance, and we will upgrade this strong foundation project to 3.0 version and to grow 1,700 supporting entities of our company. And through our sustained and persistent efforts, hopefully with another three years we can build stronger foundation with vibrant vitality and a strong competitiveness. We have 1,700 supporting entities. These are the foundation for our company. And certainly we will follow the coordinate development of insurance plus service plus investment to provide comprehensive financial service covering the whole life circle of our company. And this is key to our comprehensive development, but also critical to to deliver our commitment of brain enduring protection, better health, and life to customers. And we will strive to practice the new marketing philosophy of integrating product service plus scenario plus technology to establish a coordinated customer management system with a closed loop and a service and we will optimize and improve our service ecosystem covering 10 areas, including the medical care, health care, financial, entertainment, culture, et cetera, and to create excellent medical care, health care, travel, and we will show you with the spirit of the servant to provide comprehensive and professional risk management and service to our customers since the policy taking effect and we will provide a comprehensive and active service as well including the health management and the wealth management to meet diversified needs of them and to create a new curve for our growth and for the investment will increase our investment capability and diversified the investment strategy and we will be a major force in serving the real economy and serving the wealth of the people and we will be committed to our promise for providing enduring protection. It's easy for insurers to provide service for one or two years. providing enduring protection is in essence and a key to the life insurance. And the life insurance needs to have enough capability, strength found to cash out and to deliver the commitment to the customers. are determined to deliver this commitment. It's easy to give protection for one or two years, but it's not easy to deliver enduring protection for decades. So we need to accumulate strength in terms of our fund. comprehensive strength and to have strong investment capability. The management team of the company in the past three years emphasized a lot about the investment capabilities. We can see the investment yield and return has increased a lot in the past two years. We believe our asset is the asset of the time, and now the investment of insurance is shifting from shifting its priority from the traditional bank, real estate and nested in asset to the investment in equity and technology as well as the new productive forces. So we will seek the opportunities in the 50th five-year plan on the basis of the investment in fixed and some assets. We will impress the investment in the equity asset, the technology asset. to improve our professional and stable investment portfolio and structure and to shift our investment advantage into the market competitiveness of our company and to shift the long-term capital and patient capital into high energy strategic capital. And this is the third aspect about our strategic priority. We will strengthen the quality development of insurance plus service plus investment and will be the comprehensive insurance and financial service provider covering the whole obstacle of the customers. And firstly, we will stay to inform innovation to build innovative NCI. We will bring the reform to the end and to follow the systematic professional and market-oriented reform and to promote the innovation in terms of our philosophy, system management, the pattern, the operation model, product or service. talent, data and technology as well, et cetera, to the barriers to share that finding our development to play the full advantage of of coordinate and NCI to further release the dividend of reform, and we will create our learning-oriented and service-empowered organization to establish our long-term competitiveness and strength for the future growth. And lastly, I want to say under the leadership of the Party Committee of NCI and with the joint efforts of our whole system in the past three years. And with three years' reform, we are more proactive in serving the real – the general picture of national development and the comprehensive strength of our competence, realize the breakthroughs after a three-year effort. Under reform, we are more proactive in our effort for serving the national development strategy. We are – we have stronger foundation for the – and a better environment for our future development, and especially a series of development under reform. measures and results has bring us greater cohesion and solidarity for our company and our corporate culture and have stimulated the enthusiasm of all the NCI employees and staff and from the headquarters to support the entities. From event to the sales outlets, we are confident and determined to seek further growth. This year marks the 30th anniversary of our company and also 30 years hard working of NCI. deliver the corporate culture of customer first striving as foundation open the inclusive and excelling excellence and try to seek excellence and be innovative and to build enterprises with our with our pursuit of care and Excellence and we hope to build a century-old enterprises with strong condition and the trustworthy to customers and this question is excellent and question. This year we will – this year is the 30th anniversary of our company, and in the past three years we have hard working and dedicated efforts to seek growth for our company. And we will implement and practice our corporate culture in a new time. And we will seek excellence and try to pursue the excellence and excel ourselves in the future. And we will try to build our company trustworthy to our customers. And hopefully we can contribute our strength to build a strong financial China under serving the Chinese modernization. This is my answer. Thank you.

My question is regarding investment here.

Mr. Yang just mentioned that NCI has attached great importance to investment. Last year, regulator has encouraged insurance company to enter the capital market. We noticed NCI has increased the equity investment share. My question is whether the company will still further increase equity investment share. On the basis of relatively high equity investment share, what's your view regarding the impact of the equity market volatility to investment return and net profit? Thank you for your question regarding equity investment. The company has placed great importance on the value and the strategy in equity asset in overall portfolio. We are confident of the China's overall capital market development. We will further to continue to respond to the regulators' requirements for long-term assets to enter the market. We will consider our own asset liability management needs. and make an overall judgment for the pace and the size of the equity capital market participation. Second question, we have the three following considerations. First, we will make a diversified asset allocation including industry diversification, the allocation between A and H share market. Through portfolio, we reduce portfolios overall sensitivity to any single market. Second, we need to focus on our own investment abilities in the past three years under the new leadership technical importance to the investment research abilities. From top to bottom, we enhance our coordinated efforts in investment. Judging by the practice, our investment team can dig those targets with high dividend and low valuation. Third, which is also a very important part for the 15th five-year plan, for active assets, Combined with our transformation in liability side, we will make better liability synergy. Centering on key indicators, we aim to lower the impact of short-term capital market fluctuation to the overall performance of the company. our long-term judgment will not be impacted. As patient and long-term capital, we are capable to navigate through cycles and preserve and appreciate in asset value.

I want to ask about the management team about individual insurance channel and I want to know will you change your position of individual insurance channel and I want to know your measures to promote high quality growth of individual insurance channel. Mr. Gong will answer this question. We are certain that the position of individual interest channel as the core channel of our company has not changed and will not change in the future. Individual interest channel is the partner and entrepreneur of our company and it is the most important partner and family of NCI. And they have proprietary advantage in serving their customers. And also they have irreplaceable advantage in selling the long-term regular business and protection type products. and also a core pillar of the company to rise through mid- and long-term economic cycle. And the life insurance channel is an important channel for us, and we will further invest – promote the channel and invest resources to realize sustained growth and for the transition of – of the new marketing models just now. We have talked a lot and I want to further add that the essence of the new model of the modern marketing is that we're integrating the insurance plus benefits, plus scenarios, plus ecosystem, plus technology, and through the integration of insurance products with those multiple factors, so we hope to provide, we'll hope to transit as a comprehensive supplier for customers. And next I'd like to emphasize in terms of the service scenario and benefits. First is services means we hope to build a whole life cycle service ecosystem through the integrating of resources including the legal trust education, et cetera, we can provide the core service, including the medical care, health care, aged care, business, taxation, legal, entertainment, education, culture, covering the whole life cycle of the customers and to build our economic mode. And for this scenario means we can show the service ecosystem and to and become a major carrier to meet the demand of the customers and we will shift from hard occasions featuring strong conversion and weak engagement into the softer scenario featuring a lighter conversion and a strong engagement through a more specific lifestyle oriented scenario we can improve the engagement and experience of our customers and for the technology we hope that through the AI and big data we can have a more precise portrait of customers and have a more targeted introduction of benefits and the tailored benefits to our customers and make the sales more efficient and targeted. And the team is an important carrier to implement our new marketing philosophy and realize our core strategy. And hopefully we can give the confidence to our agents to engage with the customers and we can further improve our ecosystem of service and the new marketing model has shifted the sole sale of policies into the model of providing comprehensive solution to our customers and hopefully we can build a professional IR Army with strong and professional sales capability, the ecosystem service capability, and the technology application capability. And this is my answer. Thank you.

Due to time limit, our last question. I'm from Financial Times. The company has delivered strong services, established five service brands. I would like to ask you, what are the actual contributions and changes for the product and service innovation? Thank you for your question. Just as Chairman and President mentioned, we have provided software service to customers. We have delivered good results from a few perspectives, which are conducive to the business performance and company management. I would like to mention a few changes from the following areas. first from the scenario creation. We have 10 areas covering services. We have made some efforts for 10 scenarios. Each scenario could directly contribute to the policy sales. from the top to the bottom regarding product plus service. In the past year, we proposed the 医药无忧,康护无忧 and 健康安心. and some very competitive service-benefit products, which embodied the product-service philosophy. This helps build a better brand, achieve better results for empowerment. Secondly, regarding customer benefits, we have five service brands. All of them achieved upgrades in 2025, which make us more competitive with peers. In order to have better customer experience, we accelerated the layout in a number of areas. be it education, aftercare communities, which make us more attractive to customers, and a strong tool for the agents to sell policies. Our president just mentioned for individual channel agent empowerment, we believe our service empowerment has achieved some result. Those services have been quite welcomed by agents. More agents have have become more skilled in comprehensive development. Those agents benefit from the improvement of the service plan. In the past year, under guidance of the new modern marketing philosophy, our product and service innovation have brought actual contribution changes to business performance. We are confident to believe in the 2026. We have a lot of potential to dig. No matter benefits or services, We have joined a large number of competitive partners. We are sure to provide more services to customers. Next, I will answer questions from retail investors. First question is how would you see the solvency pressure? How to maintain adequate solvency? Currently, companies have maintained adequate solvency. Comprehensive solvency margin ratio was above 200%. And the objective pressure from the sustained downward shift from 750-day moving average travel bond yield, the company's solvency adequacy ratio has become periodic pressure. We will take active measures. First, enhance internal capital generation. improve our returns and lay a solid foundation for endogenous capital accumulation. Second, suggesting external replenishment. Third, optimize asset allocation structure, maintain a balance between asset return and risk and capital need. We are confident to maintain the sovereignty at an adequate level. Second question is I'd like to know your market capitalization management situation. We attach great importance to market capital value management. We have formulated relevant rules. We constantly improve our investment tours. We deepen professional market-oriented systematic reform and strengthen to deepen our core business, achieve the sound progress in high-quality development. GW, growth rate and premiums, net profit, total assets have hit historic highs. common investment value has been enhanced. We ensure our informatious career mechanism, make it more quality and high transparency. Do a good job with investor relations. interacted with capital market and retail investors smoothly through annual results announcement, roadshows, etc. We disclosed our operation information. We attached shareholder returns. In 2025, we again issued interim cash dividend. Combined with final dividend, our total dividend amounted to 8.4 billion yuan, up by 7.9%, hit historical highs, make investors share company's business performance. Our H&H stock price rose by 46% and 150% respectively. Our total capital capitalization surpassed 200 billion yuan in 2025. Thank you for your attention for our company due to time limit. This is the end of our annual results announcement. If you have further questions... welcome to contact our IR team. Thank you for your participation. Thank you.