Zhongan Online P&C Ord

Good afternoon. Welcome to Zhong An Insurance Interim Reports. If you wish to ask a question, please press star 1. And this meeting will be recorded. Ms. Zhang Lin, please host today's meeting. Dear investors, analysts, good afternoon. Welcome to Zhong An Online 2026 Interim Results Presentation I am Zhang Ling Please allow me to introduce to you the management today GM and CEO Jiang Xin DGM and Chief Investment Officer Li Gaofeng DGM and Secretary Wang Ming of the board and Mr. Xu Wei So Mr. Jiang Xin please Dear investors, analysts, good afternoon. I am Changshin, the general manager. Thank you for joining us at Zhongnan Online's 2026 interim results presentation. I also want to express our gratitude for your continued interest and support for Zhongnan. We remain steadfast in our core mission, technology-driven finance and delivering warm insurance. Our business scale continues to grow. In 25, our ranking on the Fortune China 500 list improved further to number 400. Our prudent operating performance and solid capital position have earned recognition from reputable agencies, with Moody's upgrading our financial strength rating to A3. At the same time, we have deeply integrated sustainable development into our corporate strategy, actively putting into practice the principles of inclusive and green insurance to reach more customers and populations in need, achieving synergetic growth across commercial value and social responsibility. On the AI front, we continue to promote the One AI strategy. At the foundational level, we leverage massive policyholder data and the insurance-focused multimodal corpora with Zhongyou Linxi AI platform, providing engineering-level management and control. In the first half of the year, the token consumption exceeded $34 trillion, and last year it was just $3 trillion. So, this speed is actually driving Online P&C Ord I will provide an overview of our overall operating performance for the first half of 26. In the first half of the year, we achieved gross written premiums of $16.558 billion, roughly flat compared with the same period. On the new accounting standard Insurance service revenue reached $16.989 billion, representing a joint increase of 12.9%. Adhering to our strategy of quality-driven growth, our combined operating ratio for the first half stood at 95.5%, improving by a few percent compared to last year, and underwriting profit grew by 17.8%, up to $773 million. Total investment income from insurance assets amounted to 1.596 billion up to 150% year-on-year. In summary, for the first half of 26, we achieved net profit attributable to owners of the parent of RMB 1.55 billion, representing a year-on-year increase of 132.2%. Our Hong Kong virtual bank, GA Bank, recorded net revenue of 578 million up to 26.6% and a net profit of 71 million HKD roughly 1.5 times the level of the same period last year demonstrating the continued release of profitability from our digital banking operations then let me introduce to you the channels and branding They are our virtual users. We maintain an omni-channel approach to user acquisition and work to build brand mindshare across all tech points. In our user operation, we continue to optimize the experience on our proprietary online platforms, providing users with one-stop insurance service as of the end of June. The number of new insured acquired through our proprietary channels reached 36 million with an average of 1.7 policies per user and the policy renewal rate remaining at a healthy level of 88%. Our focus goes beyond customer acquisition. We place greater emphasis on customer retention and deep engagement, building lasting trust in Zhong An and communicating our brand promise, protecting every kind of life. Beyond online operations, we also deeply got involved in scenario-based brand building. In the health and fitness space, we have made significant inroads into the event-based scenarios. Over the past period, we provide insurance covering 250 mass participation exporting events, covering 3 million participants and staff and exposures, with total brand impressions exceeding 100 million. Through our brand campaign LoveSports ChooseZhongHuan, we bring insurance protection into active lifestyle scenarios while helping our users lead healthier lives. Next, please allow me to introduce to you the progress. First, healthy life. So, the premium increase to 3.406 billion, and the average premium reached 650. So we built multi-layer matrix. The two core brands realized the accurate coverage of the group. So in the Sun Xiang Yisheng, We expect the revenue of $3.406 billion and the premium continue to grow by 60%. So with our high-end 2026 version of product, we got very good feedback for the coverage of the two products. Including the million level of major disease and critical illness policies and mid to high-end medical insurance, we are meeting the differentiated needs of the users. Alongside with our personal health insurance offerings, our group insurance business achieved a major breakthrough, becoming a new growth engine for the health ecosystem. relying on the AI infrastructure in the first half of the year our business grew by more than 57.5% and the growth is worth noticing in the future and in terms of the health insurance On the service end, we continue to leverage the AI to continue to refine the integrated insurance plus healthcare service loop with consolidated full process services, including the health management, extending the insurance coverage from post-claim compositions to end-to-end health production while enhancing the user experience through all touchpoints. And in the digital life, I would like to emphasize on The key innovative business line, pet insurance. In the first half of the 26, the GWP reached 691 million, representing a growth of 22.7%, maintaining steady growth. During the first half, we served over 1.61 million pet owners, with service penetration continuing to rise. On the product front, we centered around our pet insurance brand, Zhongchongbao. We have built a comprehensive protection matrix covering pets, medical care, critical illness, accidental injuries, and cancer protection for senior pets. We collaborate with more than 18,000 pet hospitals offline, supported by a dedicated care concierge service offering appointment scheduling, referral coordination, direct claim settlement, pet health consultation and guidance. Notably, we have launched the country's first parrot insurance product expanding our coverage into the exotic pet segment and uncovering new opportunities in the niche market and on the service capability front AI has been deeply embedded throughout the entire pet insurance workflow enabling us to serve millions of pet users at scale, while seamlessly integrating the insurance and healthcare services into an integrated insurance plus service offering. Within the digital life ecosystem, while maintaining a steady performance of our core user within our core e-commerce Travel Business. We continue to roll out product and service innovations and capitalized on the growth momentum on low-altitude economy. Our TWP in this segment achieved a 27% year-end increase. In addition, our operations covering SME protection, home property insurance, personal scenario-based coverage, and accident protection for sports scenarios have been growing across multiple fronts. Consistently meeting the risk protection needs of our groups. Next, let's take a look at the auto ecosystem. So in our auto ecosystem, we continue to build a strong foundation for the independent growth, business growth in the first half. We reached $1.54 billion, up by 4.2%. We continue to capture the tailwinds of the booming new energy vehicle industry in the first half. the overall percentage of the NEV insurance is up to 36.5% and then the we remain focused on the private passenger car segment which accounted for 83.5% of the total auto GWP delivering solid auto insurance margins so We also use AI and other technologies across the entire automotive industry service chain. Through AI-powered video claims processing, we have re-engineered claims service efficiency and enhanced user experience, further consolidating ZhengHuan's competitive edge in the internet auto insurance space. And finally, in our consumer finance ecosystem, In light of a challenging external environment, we have progressively scaled back business volume and outstanding loan balances. In the first half, GWP in the consumer finance ecosystem decreased to RMV 560 million, down by 79.2% year-on-year. While outstanding loan balances have been consistently reduced from $22.9 billion at the end of last year to $8.5 billion, and at the same time, we have managed operational risks effectively, with overall risks having been materially mitigated. The consumer finance ecosystem continues to contribute underwriting profits in the first half. And that concludes the key business update for China Insurance for the first half of 26. So now I would like to invite Wayne to share an update on ZA Bank's development in 26. Thank you, Simon. Let me now walk you through Zia Bank's business landscape. For Zia Bank, as the first digital bank to commence operations in Hong Kong, after six years of development, Zia Bank has integrated six core financial capabilities, deposits, transfers, loans, car spending, investment, and insurance into a single app. Delivering a truly one-stop digital banking service experience that fully addresses customers' comprehensive financial needs. Built upon this full-service foundation, our investment business is the second growth engine that we are strategically building. Looking back at our product evolution, we started with mutual funds. and gradually expanded into Forex, US Securities, Cryptocurrencies and Hong Kong Stocks. We completed the closed loop of our investments. For example, we started the HKIPO Subscription Services, providing one-stop support for the Hong Kong Stock IPO applications. In April, we enabled direct HKD subscription of USD denominated funds, lowering the barrier of customers to allocate USD assets. In June, we launched the Cross-Boundary Wealth Management Connect, becoming the first digital bank in Hong Kong to offer the southbound Connect services. In the first half, our investment customer assets under management grew by 155.4% year-on-year, demonstrating very strong momentum. Going forward, we will continue to enrich our investment product suite and expand customer AUM, drive sustained growth in non-interest income such as brokerage, commissions and fees, build a long-term sustainable growth engine. In terms of the finance, Deer Bank also remained strong. At the end of June 26, the total asset reached Online P&C Ord 375 million up by 25.9% and net service and fees it was 123 million up by 75.7% representing fast growth and then in terms of net interest margin we improved from 2.38% to 2.99% with an increase of 61BP Demonstrating continued optimization of pricing capability in the current interest rate environment. In terms of profitability, we realized a net profit of 71 million HKD, roughly 1.5 times that of last year, and net margin improved from 10.8% to 12.2%, continuously releasing the profitability. Since its launch in 2020, Veerbank has completed the full cycle from 0 to 1 and from losses to profitability. Today's results validate the sustainability of the digital banking profit model in the Hong Kong market. Now, I would like to invite Gautam to walk us through the financial review. Thank you both for the detailed business reviews and summaries. Now, let me walk you through the company's overall financial performance for the first half of 2016. In the first half, we proactively adjusted our product mix. Domestic P&C GWV remained stable at 16.58 billion, down by 0.6%. The active adjustment didn't impact our overall business scale, laying a solid foundation for the high-quality growth going forward. And then, in terms of the ecosystem, starting with health, driven by both individual insurance, including the personal clinic policy and Zhongminbao. Actually, the GWP reached $6.7 billion, up by 7%. For digital life ecosystem, GWP grew significantly by 24.7%, mainly due to the pet insurance and other innovative products, up to $7.743 billion. And in auto ecosystem, the GWP reached $1.541 billion, up by 4.2%. And in the first half of the year, we also actively press down scale back our GWP to of the consumer finance ecosystem down to 560 million down by 79% and with the new principle of HKFS 1.7 the service income went from 15.0 for one billion up by 12.9% to 16.989 billion and then for the health ecosystem premium went up by 16.6% and digital life went up by 31.7% auto up by 26.7% and consumer finance down by 46.5% and Benefiting from the consistent strategy of quality-driven sustainable growth, our combined operating ratio under the HKFRS-17 further improved by 0.1% up to 95.5% and the overall loss ratio was 56.9%, the COR was 38.6%. and then if we take a look at the health ecosystem the loss ratio was 43.9% up by 1.4% compared to 25% and then for the digital life the comprehensive cost ratio optimized by 0.7% to 99.2% and the loss ratio and also the expense ratios change was due to the structural change and then for the auto ecosystem the COR was 93.3% and the primarily it was reflecting the normal structural changes and such as the NEV insurance and composer's third party motor insurance account for the growing share and finally the consumer finance ecosystem COR was 95.6% with a loss ratio trending upward a bit due to the external environmental factors affecting the underlying asset quality. We have still maintained robust risk control and the consumer finance ecosystem continues to contribute underwriting profits. Now let's take a look at the investment. The first half of 26, the company's domestic insurance investment income achieved substantial growth with total investment reaching the RMB of $1.569 billion compared to the $639 million in 2025 up by 150%. The analyzed return on investment was up from 3.3% to 7.8% and actually the net investment yield increased from 2.1% to 4%. And then in terms of the asset allocation, as of June, the domestic insurance investment assets stood at RMB 41.487 billion. And we maintained a fixed income plus allocation strategy. And the equity and equity funds rose from 9% at the end of 25 to 13% in June in 2016. and we realized the simultaneous growth in investment, income, and asset appreciation. In the first half of 26, our insurance business continued in steady development with insurance service revenue achieving steady growth, both underwriting and overall insurance segment profit continued to improve. And for the technology segment return to profitability, Zia Bank's profits were further unlocked. As a result, the net profit attributable went from $668 million to $1.55 billion, up by 132.2%. And in terms of the capital, as of June, the company's comprehensive solvency margin ratio stood at 287.7%, and its core solvency margin ratio at 279.3%. We realized quarter-on-quarter growth in both. mainly is from the change of the registered capital. We further consolidated our capital. And looking ahead, we will remain true to our original aspiration of technology-driven insurance. We'll continue to deepen technology empowerment, refine our products and services, and precisely match the evolving and increasing diverse production needs of our users. Going forward, we'll continue to pursue the operation and high-quality development. And finally, I'm On behalf of the management team, I would like to express our sincere gratitude to users as well as our appreciation to the investors and analysts. So then we will start the Q&A. Please provide your name and affiliation before asking a question and please ask no more than two questions at the same time. Thank you, host. If you want to ask a question, please press star 1. And if you want to cancel, please also press start one. So then, from Zhongxing, please. Thank you for the opportunity from Zhongxing. Congratulations on the outstanding performance from the underwriting to the investment, from insurance to banking. The performance has been great overall. I have two questions. One is for the health. Health Insurance. We saw that in Health Insurance, Taiwan has been making proactive explorations. So, Mr. Chiang talked about the service infrastructure. I think that's an important method to build the edge. So, please share a bit more on the service infrastructure of Health Insurance. The second question is for the Hong Kong Bank. I'm very happy to see that the bank has gone from zero to one. So, I would like to know a bit more about the planning and the target the next step forward thank you let me answer the health insurance so for health insurance we always think that the insurance doesn't stay at the claims it needs to cover the whole recovery process. So, for our health insurance investment, it's about building the insurance plus healthcare plus the health management. So, I would like to further share a bit more. First, for the demography coverage breakthrough, we extended from health to the chronic patients from traditional health insurance for the traditional insurance it didn't include the chronic patients but then for our new products it's designed for that gap the overall premium continued to grow and that validated the direction of the richer demand and for the chronic disease patients covered it's not just about that single innovation and actually it's about the support of the pricing power as well on Zhong An and that is thanks to our core insights and know-hows that we accumulated throughout the years and second it's about our value added the added value provided by our service so for our Zhong Yin Bao and in that product we included the recovery cost of more than 16 different illness in our coverage and at the same time we broke through the line of the diagnosis and outpatient and now we're also promoting the other products covering the pre diagnosis and the post treatment finally We want to talk a bit about our 2B product, which is making a lot of progress. We saw that the healthcare need is reflected on the 2B side with employers covering their employees. So we actually accumulated a lot of scenarios and service networks and AI capabilities and we actually migrated that to the enterprise healthcare insurances. We mentioned that in the first half of the year, we increased by 57.5% and that becomes our fastest growing segment. So I think it not only reflected our progress, it is actually an important carrier of the scenario because for enterprises, People tend to congregate there and it actually has the advantage of having more data. So it's better for intervention and it's better for risk management on the crowd. So in the future, we will continue to promote the product innovation and continue our infrastructure building. And on the service end, We want to improve our ability to cover the recovery phase so that in healthcare, health management, recovery, we can evolve towards a comprehensive platform covering all that. Thank you. Thank you, Simon. And thank you for your attention on the ZA Bank. So actually, ZA Bank is positioned as the one-stop Service Provider for the Finance Management. So in looking into the future, we will continue to improve that platform and provide more comprehensive, professional, and robust banking and investment services to our customers and provide long-term values. And if you look at the first half of 2016, you can see that in terms of the business scale growing. At the same time, we're promoting the new products and new functions and we have launched the HK IPO subscription service and also the HKD directly to the US equities and we used our matrixes and we are improving the engagement of the users to improve our profitability and actually we also started the cross-border Investment Connect, which is the first digital bank in Hong Kong for us. So that reflected our continuous effort. So then in the wealth management part, with the Hong Kong equity and US equity and cryptocurrency, based on that, we want to expand to more portfolios, categories, and try to build the closed loop for the funding of the users. So that we can increase our AUM and also the revenue and contribute even more for that. Thank you. Thank you for your question. Please wait for the next one. Next from Morgan Stanley, Rick Chow. Please. Thank you for the question opportunity. I have two questions. On the investment end, we saw that in the first half of the year, the growth has been very good, 1.3 times. And for the return of investment, it's 1.5 times. So can you have a breakdown for us on investment, especially the percentage of... the equity assets and so on and then I want to ask about the auto because in the last four years it has been our growth driver and we saw that the premium growth rate was slowing down to 4% in the first half of this year but can you give us an outlook for the next half of the year or next two to three years in terms of growth rate and is there any Other things to look forward to in terms of the expansion of the business. Okay, let me answer the investment. The investment was performing quite healthily. And our total asset was 41 billion. And our return was 1.5 billion, up by 150%. So the analyzed return was 7%. So it's not better than average. And then for our equities, actually is higher than the average of the industry by 1% and we are relatively high in terms of the proportion of equities and equity funds so we will keep that to 8 to 8.5% we won't further enlarge and in Q3 for the equity and equity funds investment we will try to tighten a bit in the future We will try to take into account the macro environment and try to actively change our position. But when the market is in correction phase, we want to allocate high quality asset and when the valuation is too high, we will try to tighten up our exposure. So we will focus more on the lower yield fixed income and then in terms of matching the debt with our asset and then we want to seek robust strategy okay thank you for the question Rick so in the first half for the auto premium we were under a bit pressure and the growth was 4.2% on one hand the EV market actually slowed down and the growth rate was actually lower than expected and it's not just about the auto insurance we still want to focus on the quality we want to screen the high quality customers I think this slowdown is just temporary and the logic is that we want to improve the quality in the future we're still bullish on the penetration of NEV So, looking into the second half of the year, I think there will be some quarter-on-quarter recovery of the business. And with the car ownership increasing, we still see that there are a lot of new opportunities. So, we want to enlarge the percentage of NEV and also we want to use the air capability to improve the quality of the insurance and we want to expand the percentage of auto insurance in our portfolio. and license is an important thing. So in Zhejiang and Shanghai, we already are independently running the auto insurance. We hope that we can expand to other regions so that we can build the foundation for the future growth. And We hope that there will be good news in that front. Thank you. Thank you for the question. Let's wait for the next one. Next question will be from Citibank. Michelle Ma, please. Thank you for the opportunity. I'm Michelle from Citibank. So I have two questions. We saw that Mr. Zhang mentioned about pet insurance looking strong in the first half of the year, 23%, 691 million. So we saw that in this segment, there are more and more listed companies, and we realized that things are communicated a lot in this front. So I want to ask that does Zhong An have any tactics or strategies in this segment? So I saw that you have a new carrot insurance. So for this, I just want to ask your thoughts, and we saw this big downfall of more than 80% of our specific segment, right? So do we want to exit or do we want to just manage it well and wait for the change? Okay, thank you, Michelle. So let me answer about the pirate insurance. The other is about the consumer, right? So later, my colleague will answer. So for the pet insurance, so this is a segment that we are bullish for the long term. It's not really about how big the market is, but it's actually about we established our ecosystem moat already. and the second thing is about the potential of the market so we saw that there are already 126 million pets in China and the pet economy has been booming and pet insurance is only 4% in penetration and from different kinds of statistics. So in the first half of the year, the premium was already 691 million up by 22%. We're serving more than 1 million pet owners. So you see that the penetration is still very low. We still have a lot of potential. In terms of product innovation, we still need to strengthen cat and dog category we want to differentiate in the already established segments at the same time we are actively deploying the segments outside of cat and dog exotic pets because we discovered that the exotic pet is on the rise for example the birds and bugs and reptiles and so on things are enlarging there so recently we have launched the pet insurance and that is one of our attempts recently for the exotic pets considering the attributes and considering the scenario they are totally different from Cat and Dogs so we need to have new pricing and the new service network and that is the that reflects the value of the AI capability that we accumulated so we can just try to copy and paste the methodology that we accumulated in Cat and Dogs to more segments so I think for the pet insurance that's definitely a great partner for the pet owners And for Zhong An, we've been a veteran in this field. So we definitely have the early starter advantage. So we want to continue to go deeper in this market. Thank you. And then for the consumer financing, Kaofeng, please. Consumer finance ecosystem. we actively changed the segment in 26 in the first half. We are actually pressing down the scale. So the premium went down by 79%. So the total balance was only 105 million down by more than 50% compared to 25. So the industry was facing the correction risk But due to our robust principle, we still maintain very good quality in our asset. So the combined ratio was 95%, so further improved compared to last year. In the second half of the year, we will actually further shrink our business. The latest result is that the balance was within $8 billion and our asset still remained robust. Thank you. Thank you for the question. Please wait for the next question. Next question will be from J.P. Morgan. Wang Dan, please. Thank you for the opportunity. My name is Wang Dan. I have two questions. First, about the underwriting side. In the first half, The premium growth rate was slowing down. And actually the underwriting profit was up by more than 10%. So I think that's a good improvement. So now the company is shifting from scale oriented to profit oriented. So can you give us an outlook on the future in terms of the growth points of underwriting profit? Where are they? And in the next three years, do you have like a KGAR target of the underwriting profit? That was the first question. Second question for the health insurance. For the health insurance, the COR was maintained very healthily. I think the expense ratio was controlled very well and it compensated the worsening loss ratio. So, what is your view on the stability of the COR of the comprehensive health insurance? And is there any more room for the improvement of fees and expenses and then in terms of the loss ratio do you have any methods to control that to be stable thank you okay very detailed question first question for the underwriting profit so right now for the consumer finance we're shrinking actively because we are making the strategic choice And so things are better than our expectation. We are absolutely avoiding the risk of the volatility in that front. So in the future, we will not just seek fast expansion of the premium. We will really look at the actual need of the consumers and actually focus on innovation and optimize our business structure. So first, we want to go deep on our core consumers and we want to try to take advantage of their diverse need. Second, we want to further enhance our digital capability to improve their experience and improve their renewal. And then for the auto and pet insurance, we want to have depreciated innovations, we want to have refined pricing and then expand into newer segments and continue to improve the overall portfolio to guarantee the underwriting quality. Then for the health insurance, For Zhong An, we have been running that business for more than 13 years. We have gone through multiple cycles. And from our previous finance performance, you can always see the resilience of our profitability. And you can see that in the first half of the year, health insurance, COR, was very stable. And for the loss ratio, it was because of the structural change. And then for AI, in every segment, in every link of the health insurance, in the long term, if we use the historic data to iterate our risk control, we can always maintain controllable risk and risk level in this segment. Thank you. Thank you for the question. Let's wait for the next one. So, from Bank of America, Michael Lee. So, thank you for the opportunity. I'm from Bank of America, Michael. I have two questions. First question about AI. Because among all the companies that we cover, Zhonghai is the most scientific or high-tech. So, you said that you also burned a lot of tokens. So, in AI, we are actually at the upper hand, right? So, for AI... What kind of help are we seeing exactly? Like, for example, cost-balance and efficiency improvement? And second, people are worried that, yep, you are burning a lot of tokens. So on the expenditure side, will numbers go up? So can you give us an introduction? And second, I saw that in the slides, you mentioned that for your self-operated channel, things are going very well. So What is your direct business? What is the outlook there? And what is the distribution of resources of cell phone business and the distributor? Thank you for the question. So this year, we consumed a lot of tokens. It grew by a lot, but there's good news. Because, you know, to consume that much token you need a scenario you need certain levels and capabilities right so and the good news is the cost of LLM is getting lower so the cost is still within the in control scope so apart from the LLM we are actively deploying and developing our own small model to improve the ROI and balance it out with the big model so I want to talk about our AI strategy and AI is not just a standalone thing it's a tool it's the dual engine of insurance and tech AI is an important carrier of that so we cover the tech the User operation and the overall loop so we have the confidence and capability to merge AI into insurance and the whole value chain So from several aspects In terms of the business efficiency we penetrated AI into the whole loop of the verification and the claims and so on so with the automation of We can improve our operation efficiency and optimize our cost structure. And on the other hand, we have risk-based pricing system enabled by AI to make our profit model more robust and we can be more robust and resilient against a debt cycle. And then on the user operation side, AI can help us to run the user's in a more refined way to have better insights on the demand of the users. And we can use AI to drive the smart services and lean operation to improve our scenarios and services and expand our new scenarios. And they are the reflections of how we use AI. So for example, for our customer service, you know, for customer services, they have a limited memory, right? They don't remember a lot of things on the consumers, but AI can help them remember a lot of things. Throughout the lifecycle, the data would be labeled. So when it comes to the future, we will further improve our AI capability to deepen the closed loop of all the change and improve the risk control. and also we want to improve the AI agent enforcement or implementation or digital employee and we want to use AI to continue to improve the product and to improve the user operation to mine the newer product to use the tech to drive our company's high quality and stable growth and with the AI new innovations it brings new risks so we would spend more time to build up our infrastructure to take care of the compliance issue and the risk issues brought by the AI. And then for our self-owned business and distributor, you mentioned about the strategy and the thoughts that we can share. So in Chuan, for our direct business or owned business, that is... the core strategy for future sustainable growth in terms of the growth we adhere to the dual engine drive of cell phone business and partners so we always want to adhere to a high quality service and allocate our resource according to that and cell phone business is always our core brand and our core battlefield and that is also the core like testing ground for the new innovations for the direct business we can directly outreach to our customers and aside from that we also have more than 300 ecosystem partners that continue to bring customers to us so in the future we will Putting more stakes on the direct business or cell phone business and we will rely on Our product strategy like to our sports to embrace the sports product So that we can reach the younger user base that loves push and also we can improve the quality of our user base and at the same time we can use our short video from video and other platforms to apart from precisely reaching our customers we can still output our image of ZhongLan and on the other hand we'll continue to rely on the AI refined user operation to improve our renewal and also value per customer because you know the best branding activity is the word of mouth by our users and that is something we need to continuously Work on and for the ecosystem partners since there are more than 300 from online to offline workers and agents we are launching higher efficiency innovations in the product and we have gained very good results so today we are maintaining very good health and self-directedness and distributors thank you please since time is limited that is the end for today on behalf of Joanne Online on behalf of the management I want to thank you for participating Thank you for your participation