Zhongan Online P&C Ord

Hello, good day. Welcome everybody to attend the 2025 Performance Announcement for China Online. Just to remind everyone that during this conference, all of your calls are going to be muted. And before the end, we are going to have Q&A section. If you'd like to ask questions, You can press style 101 on Chinese line, and this is the English line for listening only. Just to remind everyone that we are recording this meeting. Now I'll give the floor to management. I would like to provide the floor to Madam Zhang Ling. Hello, dear investor, dear analysts, and the media friends. Good afternoon. Welcome, everyone, to attend the 2025 Whole Year Performance Announcements from Zhongwan Online. I am from the capital market and IR team. My name is Zhang Ling. First of all, I will be introducing the management of attending today's conference. There we have the General Manager, CEO, Mr. Jiang Xin from Zhong An Online. We have the CFO and the Chief Investment Officer, Mr. Li Ka-feng. And we have Yen Hsu, the CEO and President of the Zhong An International. All right, thank you very much, everyone. Good afternoon. I am General Manager of ZhongWan Online. My name is Jiang Xin. I want to thank everybody to attend today's conference of ZhongWan Online 2025 Four-Year Results Announcement. Also express my gratitude for your continuous attention and support of ZhongWan. 2025 marks the 12th year since ZhongWan's inception. In traditional Chinese culture, 12 years constitute a full cycle representing complete round of growth and development. Looking back at this milestone, we have always taken a long-term relationship and vision as our yardstick, anchoring the core goal of compound growth and keep forging ahead diligently in the insurance technology sector. In particular, since we achieved the first profitable listing in 2020, The past five years have witnessed a dual growth in both scale and efficiency of John Watt. Also, the data shows the transformation. In terms of the total volume, GWP has doubled, with the self-operated channels growing by nearly 2.5 times. And not only this is an expansion in terms of scale, but also a rigorous validation of our product competitiveness, traffic operation capability, and client service excellence. In terms of quality, Our combined ratio improved from 102.5% to about 95.8%, a decrease of 6.7 percentage points. And this particular change and milestone marks the official completion of our online investments evolution from stage to stage profitability to sustain and sustainability. In terms of the returns, the investment income grew steadily. and driven by the two engines of fundraising and investments, our adjusted net profit attributable to shareholders surged by approximately 2.3 times to reach RMB 1.8 billion in 2025. Of course, behind this number of 1.8 billion yuan lies the accumulation of 12 years of unwavering commitment to our original aspiration and more importantly, confidence to embark on a new journey. Behind this compound growth lies the long-term and unwavering investment in science and technology, and even more so, our technological leap from being digital native to AI native. So if we actually look back in the beginning of 2013, we have actually established a very good bound, the first financial core system connecting scenarios, data, and uses to complete a digital closed loop. In 2018, we scaled the adoption of knowledge graph and deep learning through the 2.0 version, ushering the AI-augmented era. From 2023 to present, we have built an AI technology mid-platform center around the other different AIs, and also we have been building core engines, establishing a collaborative system of data flywheels. Also, we do have our own research, large language models, math and AI agents as well. This marks a comprehensive advancement from AI augmented to AI in native nature. We are firmly advancing the one AI strategy to build a deep closed loop featuring the data foundation and the driven and full scenario implementation. At the underlying layer, Relying on our massive data of nearly 100 billion insurance policies and 500 million customers covered and a multimodal corpus of over 10 million techs, we have forged an irreplaceable core barrier of competitiveness. At the middle layer, we have the Ningxi as our core engine, and realized the centralized supply and large-scale output of AI capabilities through the context-based engineering, agent skills, and data firewall. At the top layer, AI capabilities are now fully integrated into the entire business chain, including product design, the marketing, customer acquisition, underwriting, and also business approval. So at the present time, we have Some of the data to share with you. For instance, we have 220 active robots and more than 1,000 AI agents with over 2 billion times large model cores and at the same time, over 3 trillion token consumption throughout the year, enabling technology to be deeply embedded and integrated into our business. So on the full value chain of insurance, technology is now becoming more value and valuable and value-generatable. So more importantly, the overall value of one AI strategy has been translated into efficiency and experience, ultimately crystallizing into tangible business results. On a product front, AI, has significantly accelerated the pace of the business development and iteration, enabling us to capture in the market demand more accurately. On the customer acquisition front, AI achieves a full scenario coverage and markedly improving the material production efficiency and effectively reducing customer acquisition overall costs. On the underwriting front, AI drives the simultaneous improvement in the automated rate and recognition accuracy and balancing the risk control as well as risk efficiency. On the service front, AI expands the service scope of customer service and delivers in-depth empowerment combined with medical scenarios and also at the same time on the claims from AI reconstruct the entire process, simplifying the documentation, automating the review and drastically shorten the turnaround time as well. Meanwhile, we are talking about intelligent quality control and assurance. This has achieved a full link coverage and also building a solid defense line for compliant and a steady operation of our business. Now, Let's all together have a review of our operating performance in 2025. In 2025, the company achieved the GWP of 35.735 billion RMB, representing year-on-year increase of 6.9%. Under the new HKFRA 17, insurance service revenue reached 33.48 billion RMB up, 5.5 year-on-year. adhering to this long-term and the quality is growth of business. The companies combined, the underwriting combined ratio stood at 95.8%, improvement of 1.1 percentage points year-on-year and driving underwriting profit up 42.5% year-on-year. But at the same time benefiting from recovery of capital market throughout the year The total investment income of insurance investment assets rose 59.1% year-on-year to 2.124 billion RMB. Simultaneous improvements in underwriting and investment segments drove the company's adjusted net profit attributable to shareholders to surge by 198.3% year-on-year to 1.8 billion RMB at the end of 2025. the company comprehensive solvency-adequacy ratio further rose to 242%, maintaining adequate solvency. In addition, the company capital management capabilities have been highly recognized by the internationally authoritative institutions. It was assigned as BAA1 rating by Moody's and A- rating by TM Fest. With both rating agencies simultaneously upgrading their outlooks to positive, fully affirming the company's comprehensive profitability and sustainability of our future earnings. Throughout 2025, VA Bank maintained a very strong growth momentum, driven by the rapid growth in non-interest income. It achieved a net income of HK$892 million, a year-on-year increase of 62.7%. Along with the rapid revenue growth and emergence of scale events and economy of scale, the events cost the income ratio improved year-on-year and achieved a historical breakthrough with a full-year net profit of HK$17 million. Next, I will introduce our business progress in terms of branding and channels. The channels are cornerstone of business growth. and the brand is actually a very important defending mode for companies' long-term development. In 2025, we focus on communication directions of young-oriented and scenario-based, continuously deepen our brand positioning through cooperation with more than 150 major sports events such as the marathons, and the Suzhou Super League Football Competition, covering over 100 cities and effectively reach the users of diverse areas and continuously enhance our brand public awareness and influence. In terms of the channel operation, we are here to coordinate the development of self-operated channels and ecological partners on the self-operated and proprietary channel side The GWP reached 7.557 billion yuan in 2025, accounting for 21.1% of our total premium income. Among them, the number of paid users of self-operated channels was 7.9 million, and a per capita insurance policy volume increased to 1.9. The average premium per policy was 505 yuan. User payment conversion and stickiness remain steady. The proprietary channel, has already become an important independent driver of the company's business growth. Meanwhile, we have continuously deepened our ecological and ecosystem cooperation. At the current stage, we have more than 300 ecosystem partners, among which 33 partners contribute premiums of over $100 million. And through the in-depth collaboration with the leading partners in the various fields, we have continued to expand business boundaries and rely on external scenarios. Over-speaking, the steady growth of self-operated channels and coordinated contribution of the ecosystem channel have made the company's channel system more resilient and risk-resistant. Furthermore, the sustained investment in branding also provided solid support for channel conversion and long-term user retention as well. Next. I will present the 2025 progress of our various insurance ecosystems. First is the healthcare ecosystem and the health policy ecosystem. We continue to focus on building a multi-tiered product portfolio through a high-quality, high-growth development of this ecosystem. The GWP rose 22.7% year-on-year, covering 29.34 million insureds with the average premium per user of 613 yuan. on the product fund supported by our two core brands, the Zhong Minbao and the Personal Clinic Policy Series. We have both a comprehensive and wide-ranging production system. The Personal Clinic Policy Series has continued to deepen the presence in the standardized health insurance market with a premium volume of region 8.3 billion yuan. As a benchmark in the million-level medical insurance, we are now expanding to areas like critical illness, outpatient emergency care, and make the high-end medical treatment fully meet the dialysis needs. Zhongming Bao series focus on non-medical underwriting scenarios achieving a high-speed premium growth of 156.1% and becoming an important supplement to the inclusive health insurance. On the service front, in this ecosystem, we have simultaneously perfected the insurance plus medical service as a closed-loop system, integrating end-to-end services such as health management, internet hospitals, direct payment and advanced settlement, and off-site pharmaceuticals and medical devices. Altogether, we have partnered with 183 private hospitals and 33 rehabilitation institutions driving the transformation of the insurance from post-incident claim settlement to full-cycle health protection and continuously consolidating the core competitiveness of the health ecosystem. Next, I'd like to talk about the ecosystem of digital lifestyle. We took initiative insurance products as the link in 2025 to deeply connect it with the upstreams and downstreams of industrial chains of consumer industry. In 2025, the GDP of this ecosystem reached 15.973 billion yuan, of which the total premium of innovative business was 6.568 billion yuan, an annual increase of 37.2%. And here, I will focus on introducing our core innovative business, which is our pet insurance. Relying on a continuous expansion trend of pet industry, Zhonghua and pet industry achieved the year-on-year increase of 88.2% in total and GWP in 2025, reaching 1.296 billion yuan. The product covers the four risk scenarios, including pet medical care, critical illnesses, accidents, and third-party liabilities as well. On the service front, we have served more than 8 million pet owners in total and provided more than also collaborations with 18,000 offline hospitals. And we have built a product plus service and 4.49 million claims and health services. And also we have built a product plus service pet production ecosystem through service such as medical treatment, stewards, direct settlement, etc., and continue seizing the dividends of the pet economy amidst consumption upgrading. Next, I will further elaborate on the company's innovations and breakthroughs in the new consumption insurance segment in 2025. So, last year, we continued to implement the insurance innovations in the new consumption field, achieving breakthroughs and in-depth development across multiple scenarios. First of all, in the sport area, we continuously built the professional brand image of sports online, deeply integrated into the core scenarios such as marathons and cycling, and became partners of top events like IROX, and the Suzhou Super League Football Competition, further consolidating our leader edge in sports insurance track. In the low-adventure economy sector, we cap pace with industrial development trends and relative related businesses recording a year-on-year increase of over 20% in our GDP. We maintain strong momentum in scenarios such as electronic products, the household insurance, and corporate property, et cetera, and launch our product like Dian Dian Bao, providing diversified risk reduction for operation of small micro-sized enterprises. In addition, e-commerce insurance continued to expand our coverage scenarios and achieving a total premium of 6.574 billion yuan in 2025, fully covering the core risks, such as the returns and quality guarantee in e-commerce transaction channel. Air Travel Insurance posted a TWP of 2.8 billion yuan, covering high-frequency demands like the flight delays and hotel cancellations, leveraging in-depth collaborations with the mainstream channels and continuously consolidating our leader marketing positioning. Last of all, I would like to tell you something about our ecosystem of auto insurance. We actively embrace the trends of online auto insurance and new energy auto insurance in 2025. And GWP of this segment grew by 34.6% to 2.76 billion yuan. Also, we have long been firmly optimistic about the development of new energy auto insurance and with the services at the core engine of auto insurance. And in total, We've been growing by 206.2% and year-on-year currently accounting for 28.3% of our total auto interest premiums. We have honor written policies for more than 100 automotive brands and covering all mainstream new energy manufacturers and OEMs in market and launched the Zhongyanba, this particular product to specialize address the warranty pain points. And in terms of the business structure, the private car premiums accounting for 87.9% of the total, and we have deeply cultivated the primary care market and also provide a lot of stickiness to the users. And also in 2024, December, the company was approved in the permanently operated compulsory travel insurance business in Shanghai and Zhejiang province, enabling us to better meet the users' needs. Last but not least, in the consumer finance ecosystem amidst The external uncertainties and headwinds in 2025 were here to the principles of risk control and high-quality development, proactively optimize the business structure, and also enhancing the overall business scale. The full-year total premium reached $4.3 billion, of course, a decrease from 2024. And while actively contracting our business in an orderly fashion, we continuously refined position operations and implemented the end-to-end risk management and the driving a steady decline in our outstanding loan balance actually dropped from 27.7 billion yuan at the end of June of 2025 to 17.9 billion yuan by the end of February of 2026. The core purpose of this proactive adjustment is to optimize the asset structure, focusing on high-quality assets and ensure the long-term stable development of a consumer finance ecosystem on a premise of strictly adhering to the risk bottom line, which is highly consistent with our overall long-term strategy. So with that, I would like to conclude the review of the insurance main performance in 2025. and now would like to give the call over to Wayne to introduce the development of VA Bank in 2025. All right, thank you very much, Simon, for this wonderful review. Since its official launch in 2020, VA Bank has been committed to building a one-stop digital financial service platform in Hong Kong, providing the retail customers and small and medium-sized enterprises with rich, convenient and inclusive financial services. Also, I'm very thrilled to say that 2025 marks the fifth anniversary of Z8 Bank's opening and the bank has achieved a historical breakthrough by officially realizing the first annual profit-making situation with a four-year net profit of approximately HK$70 million. At current stage, the bank has already merged as one of the digital banks in Hong Kong market with the most comprehensively functioned and product provisioned. And it is now having also provided the users with the one-stop financial services, for instance, the deposits, loans, transfers, bank card consumption, foreign exchange, etc. and particularly in the retail banking business, we have continuously improved the service quality through innovative, you know, gamified experience, effectively enhancing user stickiness and activity as well. Since VA Bank laid out its investment product system in August of 2022, we always take customer needs at the core and steadily building the full strategy investment ecosystem covering funds, foreign exchanges, US stock, cryptocurrency and Hong Kong stocks. Also, we have successfully driven the growth of diversified non-interest income and build a company second curve for the growth and development. On a product front, we have collaborated with the top global fund companies to launch more than 170 public funds and through the fully facilitated foreign exchange conversion service, we can significantly lower the investment threshold for users and giving them more conveniences. In terms of transactions, we have continuously iterated and innovated. In February of 2024, we took the leading launch in the U.S. stock trading. In November of 2024, we completed the upgrade of SSC Type 1 license and becoming the first digital bank in Asia to provide cryptocurrency trading service for retail users. And in October of 2025, we have launched the Hong Kong stock trading business and introduced the first of its kind stock consumption rebate program in Hong Kong. and this year we have added the service as IPO subscription continuously enriching the Hong Kong stock investment scenarios and enhancing our user experience. With the continuous improvements of our investment product matrix, the asset scale of Invest customers has been steadily rising. Not only this confirms the market high recognition of DA Bank's investment service, but also highlights the differentiated competitive advantages in the retail finance sector driven by technological empowerment. Looking ahead, we will continue, rely on our core technological capabilities to iterate the investment products and services and further amplifying the growth momentum of non-interest income and create more sustainable, valuable returns for our shareholders. Last but not least, let's take a look at the co-operating data of ZA Bank. In 2025, not only we have achieved the first Whole Year Profit Making but also saw high-quality growth in various operating indicators. In terms of the total scale, the total asset increased by 11.3% year-on-year to HK$24.853 billion and customer deposits rose by 14.7% year-on-year to HK$22.245 billion with business scale expanding steadily. The net income increased by 62.7% year-on-year to HK$892 million, driven by the wealth management business. The non-interest income further grew by 278%. With a continuous improvement of the economy of scale and operating efficiency, the cost of income ratio improved from 109% in 2024 to 78% in 2025, ultimately achieving a net profit of approximately HK$17 million and successfully turning losses into profits. In terms of capital, the capital equity ratio increased from 23.1% to 24.3% and maintaining sufficient and stable capital level to provide guarantee for further development. The profit breakthrough of the bank has confirmed the feasibility of our digital banking business model and opened up the space for long-term development of the group's financial innovation segment. Now, I'll give the floor to Gautam to share the financial performance in 2025 with all of you. Thank you very much, management, for your introduction. Now, I'll be responsible in introducing to you the overall financial performance in 2025. In 2025, the original premium income of the P&C industry grew by 2.6% year-on-year against the initial backdrop. China sustained a steady growth, outperforming the industry. The GDP increased by 6.9% year-on-year to 35.735 billion yuan. The growth momentum was mainly driven by the joint use of health, insurance, and auto ecosystem. By Health Insurance Ecosystem led by JioBank, Matrix, Personal Connect Policy and Zhongming Bao, we feel the continuous and new product launches achieve 22.7% year-on-year increase in the GDP to 12.628 billion yuan. The impressive performance fully demonstrates the strong market competitiveness of a multi-tiered health insurance portfolio. Digital Lifestyle Ecosystem recorded the GDP of 15.9 billion yuan, slightly decreased by 1.4% year-on-year, mainly affected by contraction of global return shipping insurance industry. However, the company's market share in the sector remains stable. Innovative businesses such as Pet Insurance achieved rapid growth, injecting new vitality into our ecosystem. The consumer finance ecosystem facing the complex and volatile external environment would adhere to the prudent operational philosophy, proactively optimizing the business structure, and scale down the business volume. Premium decreased by 10.6% year-on-year to 4.32 billion yuan, upholding the bottom line of high-quality development. Last but not least, the auto insurance ecosystem. We precisely see this opportunity brought by improving market sentiment amidst the industry online development trend, actively embrace the policy dividends and growth opportunities, of the New Energy Auto Industry. Following this trend, we had a GWP of 2.76 billion yuan for the auto ecosystem, representing sustainable year-on-year growth of 34.6%. Under the new HRSRS 17 standard, the company insurance service revenue reached 33.485 billion yuan, a year-on-year increase of 5.5%. By ecosystem, the health ecosystem saw a year-on-year increase of 24.6%. Digital lifestyle ecosystem experienced a year-on-year decrease of 9.1%. The consumer finance ecosystem grew by 6% year-on-year, although insurance ecosystem achieved year-on-year growth of 28.4%. in 2025, benefited by the company's consistent strategy of quality sustainable growth. Under the new HKFRS 17 standard, our combined ratio improved by 1.1 percentage points to 98.5% for underwriting, achieving underwriting profitability for five consecutive years. Among them, the combined claim ratio or loss ratio was 38.7%, and the combined ratio was 57.1%. Across our four ecosystems, the combined ratio of health ecosystem actually decreased from 95.7% to 92.1%. This improvement was primarily driven by the 6.7% reduction in expense rate, with the stamp from our comprehensive integration of AI to empower the health insurance operation efficiency and marketing efficiency. The loss ratio of the health ecosystem stood at 42.1% representing a 3.1% increase compared to the same period in 2024, mainly due to optimizations and adjustments of our product matrix. The lifestyle ecosystem maintained a stable combined ratio of 99.9%. The minor movements in loss ratio and expense rates were driven by the adjustments of the internal product matrix. The overall business operation remained steady. The consumer finance ecosystem posted a combined ratio of 97%. Rising the loss ratio was driven by volatility and underlying asset quality amid the external environment changes, but we have maintained a very sound risk management. Over-risk remain under control. The auto ecosystem further improved the combined ratio to 93.1%. The overall loss ratio rose by 1.7% to 69.2%, mainly a normal structural change driven by the increased proportion of our new energy auto insurance and compulsory traffic insurance business, and the overall current rate level is manageable. driven by AI-enabled refund operation efficiency and strictly implementation of premium commission. Unified reporting the requirement for the expense control. Our expense ratio decreased by 2.8% year-on-year to 23.9%, effectively offsetting the mid-rise in loss ratio. Overall speaking, continuous improvement in combined ratio has further strengthened the company's on-riding profit base, which is a direct reflection of our adherence to long-term business philosophy. Finally, to collect investment performance, in 2025, the company's domestic insurance investment income surged, providing strong support to growth of the overall net profit. In terms of returns, the total investment income increased from 1.335 billion yuan to 2.124 billion yuan in 2025. The total investment return rate rose from 3.3% to 5.3%, while the net investment return rate stood at 1.9%. In terms of the asset allocation level, the scale of domestic insurance investment assets reached 40.3 billion yuan at the end of 2025. We're here to fixed income plus allocation strategy with a fixed income assets accounting for 70%. Meanwhile, approximately increased allocation of equity assets from 6% at the end of 2024 to 9% at the end of 2025. Effectively, seizing opportunities in the equity market and achieving synchronized growth in investment income and asset appreciation. In 2025, the insurance business segment surged steady development with increased insurance service revenue and the numerous uncertainties on the Xero environment. The company demonstrated strong operational resilience and has delivered the underlying profit of five consecutive years since 2011. Meanwhile, the profit of the insurance business segment surged by approximately 180% year-on-year in 2025 and fully reflecting the robustness and the risk resistance of our insurance business profitability. It is worth mentioning that ZA Bank achieved the four-year profitability successfully five years after the launch, marking historical breakthroughs that validate their digital banking business model in the market. Meanwhile, technology segment also maintains sustainable profitability, further consolidating the pattern of synergistic development across multiple business segments. In addition, in 2025, in accordance with the accounting prudency, the company has carried out a valuation adjustment on its holding in VA International and recognizing impairment loss. It is noted that this is a one-off, non-recurring, and non-cash accounting adjustment, which does not affect the company's operating results and long-term financial performance. On the capital front, the company has maintained ample and sound capital levels to lay solid foundation for long-term development. At the end of 2025, the company's comprehensive solvency ratio reached 242% and core solvency ratio reached 235%. With those indicators rising quarter by quarter, all financial indicators remain healthy and stable, fully demonstrating the company's strong risk-resistance capacity. In July of 2025, the company successfully completed a share placement of approximately 500 million US dollars, further strengthening the core capital and maximizing the capital structure. In January of this year, we actually repaid all of the remaining US dollar bonds and effectively reducing financial costs and providing solid capital support for our subsequent business expansion and strategic implementation. Looking ahead, we will remain true to the original aspirations and pursue progress and a steady path determination, taking technology as our core engine and deeply empower the entire insurance industrial chain and identify fully meet our needs of our customers. And also, we firmly believe that with a V8, forward-looking strategic layout, profound technology foundation, and innovative volatility, we will surely explore broader prospects on a path of deep integration between insurance and AI and create a new paradigm for industrial development. On behalf of the company's management, I would like to express my sincere gratitude to every user of the VA Bank and also VA Online, and thank you for your long-term support and trust. Also, extend my sincere appreciation to all investors and us for your consistent attention, trust, and company. Going ahead, we are going to continue to create greater value. Thank you very much for the introduction. Now, we are going to open up the floor to the Q&A. So this is the English line again for your listening only. And please make sure that do not ask more than two questions at a time. Now we are going to have the very first question. All right, thank you very much, management. Just to remind everyone that if you'd like to ask a question, please press star 101, and we are going to point out your name. The first question comes from from CICC, please. Thank you very much for having this opportunity to ask questions, and thank you for your introduction. I'm Mao Qingqing from CICC. First of all, congratulations on such a wonderful for-profit, and this is actually quite good. So I have actually two questions with regards to the insurance business. The first one is about the health insurance. We all know that in recent two years, be it the regulators and the Hong Kong regulators, they've been actually having a lot of policies promoting the development of health insurance. So I would like to ask the The management, how do you actually think about the trend? And also for Zhonglan, what are the business advantages that you have? The second question is about the pet insurance. We are very glad to see that starting from scratch for pet insurance, now you do have the total premium size of about $1 billion or so. So would you provide further outlook to us? Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord I believe that this is the very important driver for us to develop further. Let me answer the question about the health insurance. Actually, we have a mission of Healthy China 2030, and we pay attention to the implementation of this mission statement. In the industry of health insurance, there's a lot of room for further development. Also, There has been upgraded from a supplement to the social insurance all the way to a multi-system of production. And we do see more synergetic effects coming out. In 2025, for the total volume of the health insurance segment, it was almost close to trillions. So we were pretty much optimistic about this. In health insurance segment, Taiwan has been servicing the customers of 113,000 Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord Online P&C Ord Online P&C like those people with chronic illnesses and emergent care needs. So I believe that this is in line with the inclusive finance as a mindset. Also, this is pretty much welcomed in the marketplace, especially for the medium to high-end series of Zhongmingbao. We do have a tailor-made capabilities according to the individualized needs. And just now we've been sharing with you already the financial figures. That means now we have the Personal Clinical Policy Series targeting the health insurance, and the Dong Min Bao has a very important supplement, and this is actually dual-wheel-engine. So, the second point I would like to say is that talking about the full-chain advantage of our product matrix, at current stage, for Dong Min's medical service, we have integrated that into the whole insurance business. Now we do have actually the management of the treatment and the diagnosis as well as the other services. At the same time, we are actually providing a lot of support for the patients to get the access to some of the branded name drugs. So this year also, we are now incorporating some of the hospitalization related expenses into our productive items. So we are now going to have a fuller coverage from the guarantee of service all the way to the available drugs and treatments. And third point I would like to say is that we have a very good technological empowerment capabilities. We're now making full use of the large number of data from customers and also analyzing upon them. So we could actually now have a very good product design and covering from on-riding to claims until the afterwards. So we don't have AI technology empowering this to realize our product sales growth so that our business is growing on a sustainable fashion. In the future, for healthcare industry, this is the area that we want to actually develop more products. At the same time, we do want to have more products and covering wider population. So third is that we want to actually enhance the user experience. So the second question is about pet insurance. As for pet insurance, in the past several years, this was actually developed quite well and smoothly. So we are really looking forward to the beautiful future, and we are optimistic about this. And that is exactly the reason why we have actually joined this particular area. Now, for the pet insurance economy here in China, this is actually becoming very vital continuously and, you know, vivid as well. So now you can see that we do have a lot of pet owners. So in terms of the total premium increased a lot. Now we also reshaping people's awareness of consuming on the pet insurance. So we are now pretty much focused on the mature market. And I do believe that there is a lot of room for further improvements. So this potential is still quite charming So I think that at the end of the day, behind the different insurance products, we do need to actually, first of all, manage the healthcare ecosystem and altogether help to build the complete service provision capabilities. And all together, we are connecting with the upstreams and downstreams of the whole industrial chain. And also at the same time, helping the users of enjoying the conveniences provided by us and also excellent services provided by us as well. At current stage, for pet insurance area, we are now focusing on critical illness policy. At the current stage, we are still nurturing the customer's mindset and doing innovations on products I do believe that by having more innovations of our products, as long as this is an innovative method that we are quite believing, we really hope that we are going to increase our business and really benefit more pet owners and insurers. So we will show the final economy of scale while we're improving the scale further. Thank you. Thank you very much for this question. Just remind everyone that this is the English Live listening only, and if you need to ask a question, please press star 101 on Chinese Live. Let's wait for the next question. Next question comes from Michael Lee from Bank of America. Thank you very much for providing opportunity. I am Michael from Bank of America. I have two questions. The first question is about the premium growth. I'd like to know that in 2026, since the beginning of 2026, what is the situation for the premium growth and what is the major driver or drivers behind and what is the whole year target? My second question is also something that you have mentioned during the script that, you know, related to AI. You know, in recent months, We have realized that AI is profoundly impacting a lot of other sectors and industries like the US and Europe and in China as well. So we'd like to ask you that as a frontier tech and AI insurance company, how do you think about the pros and cons of AI? Thank you very much for that question. In 2026 whole year, the GWP growth actually is quite close to our annual target. The overall growth rate is outperforming that of the industry, 10.7% growth rate. So in total, in the whole year, we will focus continuously on the other core products like the health insurance, the pet insurance, and auto insurance, which are giving us long-term acquisition and long-term value acquisition and creation. So in the internal environment, we are having a lot of pressures. So we are still in the whole process of becoming more optimized. And of course, enduring benefit in the short term. Of course, you can see that GWP could be actually maintained at a high level and still achieving growth. And my colleague will answer the second part of the question. Right. As for AI, this is actually developing quite steadily. As for Zhonglan, this is a challenge. But of course, as an AI native insurance company, we believe that we have opportunities. Since the beginning of our inception, we kept exploring the value of AI or technology to insurance. In the past years, we were actually investing more into this particular area. And last year, Most importantly, we will actually provide a very good implementation of AI into our insurance scenarios. We will actually encourage more people. For instance, the particular mid-platform of Linksheet. And also, I believe that this has also helped us to achieve a lot of achievements already. So we have several principles. The first is that we are always a very important technology innovator. Also allocate the resources according to the value generated by that AI technology. The second point I would like to say is in the past one year, an important thing is that for some vertical small models that we have launched, we had a lot of breakthroughs and progress. So, you can see that has already covered around 50% of inquiries. At the same time, in terms of the AI application, just now I have already given a lot of thorough and detailed introduction. So, on AI, this is an unwavering strategy that no one is taking on. So, for Dong An. I do believe that there is a big opportunity lying ahead of us and we have to seize that. Thank you. Thank you very much for this question. Let's wait for the next one. Next question comes from Rick Tao from Morgan Stanley. Please, you have the floor. All right, thank you very much, management, for this opportunity to ask the question. I am Rick Zhao from Morgan Stanley, the analyst of the insurance segment. Congratulations on wonderful growth. The first question is about the ecosystem of lifestyle, digital lifestyle. We all know that, you know, with the overall competitive landscape of this area in 2005, and how you think about the overall premium growth and profitability in 2006. And my second follow-up question is on the science and technology side. So in the past, You have been investing a lot into this, and do you have any changes in terms of investment trends or directions, or whether there is actually various sound return on investments for science and tech area? Thank you. Thank you very much for your question. Let's actually talk about the digital lifestyle ecosystem. As for digital lifestyle ecosystem business, now we have pet insurance. and this year also we do have other innovative businesses for instance e-commerce insurance the travel insurance and flight insurance now we are already having a diversified ecosystem now this year we will further deepen the other innovations like pet insurance except for pet insurance we are also going to develop a lot of other sport you know accident insurance The Home Property Industry Insurance and some of the other like property liability policy. So in total, we are now developing a lot of protective, risk protective product and the further, you know, really want to benefit the users in this area. Also covering more live streams and short video and the other new scenarios. Also doing a very good exploration for the new point of growth. While in the whole process, We always focus on the sustainable innovation as our core standard. So not only this has something to do with the digital lifestyle ecosystem, but with the whole insurance business. Compared with the digital lifestyle ecosystem, which is quite stable for consumption finance, we will actually make a further risk control from a data standpoint. In 2025, we can see that we have a very good business already, and also the debt, outstanding liabilities has been significantly reduced. So I do believe that this is actually much better than our expectation. And also we have some kind of compensations available. So we will have certain adjustments in 2026. We're going to further deepen our strategies and further contract the CORDO kind of a scale. and by using AI, large language models on the risk control, we will definitely now seize the opportunities to grow ourselves. Thank you. As for AI, Simon will be answering this to you. Thank you very much for this question relating to AI. I would like to share with you my opinions on AI from a different angle. As an insurer, AI is not a disruptor, but a very important enabler. Like lifestyle and lifestyle service provision and cost reduction and the other areas, AI is of great use. Also in terms of this guarantee of the product risk, we will promote the healthy development of the whole industry. As for the consumers, AI is going to be helping us to disseminate The imbalanced information and unequity. Also, this is going to be our future focus. So while the economy is getting recovered, right, I think that at the end of the day, those companies could actually change from the technology to the real, you know, task and making profit out of it will be the final winner. As I have already talked about the AI technology just now, We actually have already enjoyed a lot of benefits from this and best value for money. So, from this standpoint, the AI implementation is vital. This is not only about the implication and application of a technology or an application, but also, we are talking about this particular, you know, further bringing new technologies into this field. So, at the end of the day, I think that we need to restructure ourselves So if you want to actually do the business with AI, this is also critical to work with it. So in the future, we will always regard AI as a core capability, but only a simple tool that we use. While everything is compliant and risk-controllable, we will do further investment, and AI will help us to actually enlarge the team's value, and we will actually seize the opportunity of AI era and bring with us a lot of benefits, but still sometimes negativities or new possibilities. So our bottom line is operating everything in a compliant way, and also at the same time develop ourselves on a faster track. Thank you very much. Thank you. Our next question is one then from JP Morgan. Thank you very much, Ben Edmund. For this opportunity, I am Wong Fung from J.P. Morgan. I also have two questions. The first question is about the auto insurance. In the past several years, we all know that, you know, there is a structural change of your product and, you know, focusing on more high-value vehicle models. I will ask you that in terms of this new energy vehicle, when the penetration rate is getting higher, how is it going to make full leverage of your technological advantage so that you are going to build a very good competitive edge that is differentiated from the other insurance. And second point is that you have mentioned on PowerPoint that in the future you're gonna do a lot of other businesses. So do you have any timetable in place? When are you going to expand that business to more provinces? And second question is about the shareholder return. We understand that in this FinTech area, you are maintaining the order and advantage, but you need to invest a lot in order to develop your business. And we have noticed that there is a stressful situation for the share price and that the P ratio was less than one times. So we would like to ask you that at the current stage, it is quite stable for the others and quite robust. So I want to ask you that whether or not the management is considering and when time allows that you are going to consider any kind of a shared buyback. All right, thank you very much. Let me actually answer the question relating to the auto insurance as a question. First of all, auto insurance is something that we are going to focus as a strategic focus. The very first point I would like to say is We are following closely the development of the digital and internet-based auto interest market, but still the penetration of this application is still quite low. In total, 900 billion as a volume of GWP, but only like less than five as covered by the online platform, so quite potential for the further growth. Of course, If you're talking about the continuous enrichment, this year we are encouraging our core competitiveness, but still, we always want to make sure that science and technology is everything, that we build our competitive edges, and also, it is very important for us to have a sustainable development plan. At current stage, we are using the full online in our technology to actually do this auto insurance business, and this is quite unique to Taiwan. At the same time, we're optimizing the user experience. For instance, in a light fashion and high-efficient fashion, we're operating our business. At the same time, in the area of new energy vehicle auto insurance, we're now searching for more collaborations with the OEMs of vehicles and doing more innovations on the product manufacturing design. So in the future, we hope that we could stay further on this and really build a business development model that is having a very good competitive edge in this industry. So, Last year, we actually have tried in Zhejiang and Shanghai the first step. In the future, we hope that we are going to gain more support from our regulators and hopefully covering more provinces and cities for the auto insurance business. Of course, I do believe that the current state, the government has given us a lot of support, and so does the regulator. Right, thank you. I would like to answer the question about the capital market. Recently, we are here to the quality growth strategy. In recent five years, the GDP volume and the profit all doubled. In the future, we will further focus on the branding and the AI embedding and integration, providing more services, helping our customers to expand as well. So from a business competitive standpoint, we're going to remain robustness and still sufficient and humble solvency ratio. So we always want to actually provide those tools to help us to enhance our efficiency. Why don't we consider any buybacks? In 2025, actually, We have just performed an insurance additional of US$500 million. So in the future, we will actually do more independent operation, for instance, the AI virtual currency, and also for some of the other areas like pet insurance or some of the other insurance policies. So for Zhonglan, we are going to position for a faster growth. But in terms of the controllability, we have a very good profit margin. So we hope that while the capital is sufficient, we are going to be on the fast track. So actually, in the short term, we don't have any share buyback plan because we're going to hit a higher bar. Thank you very much for the question. Due to limit of time, we're going to have the final question. Please proceed. The final question comes from Charles Cho from UBS. Right, please, you have the floor. Right, thank you for this opportunity. I am Charles from UBS. So I have two questions. The first question goes to Wayne. We know that for the ZA Bank and the digital banks in Hong Kong is the leader And in 2025, you have already realized a four-year profitability. So I want to ask you then on top of the profit-making situation, do you have any other operating targets in terms of the strategies and thinking? My second question is about the investment. So in 2025, I believe that the overall stock market performed quite well. So I would like to ask the management that what are the investment opportunities that you have witnessed? in 2025 or in 2026? Would you talk about more the bonds and equity? How do you think about the liability bond and what is the interest rate? And do you have any preference? And also for equity, I would like to also ask you that how that you are going to actually balance this particular kind of a higher stock dividend and how do you think about the stock market versus the fixed income market? Right, so let me answer the question relating to ZA Bank. First of all, thank you very much, Giles. for your confirmation about our business performance. So in total, in 2025, for Z8 Bank, this was actually quite shining. So in the past five years, we actually deeply rooted in the Hong Kong market in terms of the product innovation and service provision, and this was the natural result. Z8 Bank actually always served the global Chinese background people, and this is going to be our core mission. We hope to actually cover... The Chinese people in more areas in terms of account opening, the financing, and wealth management as a whole. So actually, in terms of the business, I mean, the user volume, not only we are going to actually realize that, but also we are going to actually have new products as well. So be it a product experience or some of the others, we hope to increase the activity of the users. Also, we are going to increase the number of active users against the total number of users. Also, trying to optimize the cross-selling efficiency of different products. At the same time, while we are increasing our efficiency, we are going to build the brand awareness more into the users' mind and gain more high-quality users. On the product front, we are going to enrich the product matrix further especially in the financing area. We don't have the US stock, the Hong Kong stock and some trading availability, but we are going to expand further the boundary in order to have a closed loop of wealth management to investment. And so the bank is also going to help to drive more profit as well. We have provided some of the new trading system last year and quite good in terms of feedback. And also this year, we have also new features in terms of the Hong Kong stock market IPO. So we are going to continue this year and keep the momentum of this kind and further promote the overall growth of not only revenue, but also the profit as well. So be it the number of the users that we are servicing or the quality of the services we are going to reach to the most X level. Right, thank you. With regards to the investment, I would like to answer that. So in the overall allocations, ratio allocation, we always take on the fixed income plus as a strategy. We always want to have a very stable return and also have certain allocations to some kind of other assets and to have very good balance of the risk-based versus the fixed income asset. So in 2026, this is going to be as prudent as 2025. First of all, the macro economy is actually getting kind of quite good. We will have different strategies. And second is that we control systematic risk a lot. and actively would like to know and also manage the excessive return. And for the bond investment, we focus on those high trustable kind of products with now on our portfolio, we have 98% of the products with a rating of at least double A. And when the interest rate is getting higher and higher, we are going to actually getting lower the stock dividend and managing our investment strategies in a more flexible way. So I do believe that this is actually a relatively stable and also quite high than the fixed income. So this is pretty good. And in terms of our equity, so in total, we have a very good opportunity of the market. So all the way till the December of 31st of 2025, we are now increasing all the way till like above 90% of our equity and quite good optimized. In 2026, we are going to keep on this particular trend and also making sure that in between the bond and equity, we are going to have a very good balance in between. And in 2025, we are now focusing on some of the growth segments and in 2025, we will further actually, you know, focus on those kind of a balance of the growth-oriented and higher stock dividend-oriented, you know, products and portfolios. Thank you. Thank you very much. This is the end of the, you know, announcement, and thank you very much for participating the conference on behalf of the company, right? So, hello, everyone. You are now able to be disconnected. See you next time.