New China Life Insurance Stock

We'd like to thank all the investor -- I'm [ Nuri Yong ] Assistant President -- I'm honored to be today's host. First of all, I'd like to introduce to you the senior management attending today. They are Mr. Yang Yucheng, Chairman of the [indiscernible] Mr. Gong Xingfeng, President and Financial Principal -- we are also honored to have independent directors to join us online.

Today's conference consists of business presentation and Q&A. -- now let's start the presentation. Let's welcome Mr. Yang Yucheng.

For the distinguished investors, analysts and the media friends. Welcome to the [indiscernible] we are grateful for your long-standing attention and support for our company. In the first of 2026, we carried our solid earnings and education on upholding a correct outlook on political performance. bearing in mind the origination of finance of intonation and the people, we proactively integrated into the broaden national -- development agenda, followed a path of intensive high-quality development. [ Encoding ] development reinsurance services and investment and advance, professional market-oriented and the systematic reforms.

With concentrated efforts on consolidating development foundation forging core competitive executing strategic key tasks, we achieved sustained improvement in operations and market competitiveness and comprehensive strengths was further enhanced. Multiple core indicators sustained sound growth on highway. The company showed multiple programs with more concrete base.

Consolidated foundation, optimize the structure greater momentum and increasing efficiency, an outcome of dual advancement of volume and value and do optimization of structure and profitability were further highlighted in the first half of the year. The GWP reached up by [indiscernible] 6.9%. Operating revenue amounted to [indiscernible], up by 18.9%. NBV reached CNY 6.9 billion, up by 11.9%. Embedded value reached CNY 310.4 billion, growing by 7.8%. Total assets amounted to CNY 1.96 trillion, increasing by 3.1%. Net assets reached CNY 123.6 billion, up by 10.8%. Investment which stood still the test of capital market volatility and delivered solid results. Annualized total investment yield stood at 6.7%, up by 0.8 percentage points. driven by the dual momentum from core life insurance business and investment, our value creation capacity improved greatly. The net profit hit a new high of CNY z22.8 billion, surging 54% year-on-year.

Committed to sharing operation gains with the investors, we propose to distribute an interim cash dividend at CNY 0.73 per share, representing a 9% year-on-year increase. In terms of overall performance, we achieved all funds growth in business scale and value, FYRP from long-term insurance growth by 27.7%. Among which the 10-year and above premium jump in our comprehensive growth, our and EV also increased a lot.

For business structure, we concentrated our efforts on regular premium and the long-term business, delivering continued structure improvement. The proportion of regular premium business increased substantially, FYRP for long-term insurance accounted for 85.2%, up by 20.8 percentage points. The share of 10-year and above record premium rose by 3.9 percentage points. We step up transformation for participating insurance and our product mix has been optimized and has one greater recognition from customers. We strengthened institutional-based operations, we find closed-loop management and consolidated the long-term mechanism for quality management.

Our 13-month persistency ratio reached 97.5%, 25-month persistency ratio hit 93.6%. The surrender rate came in at 0.7%, down by 0.1 percentage points. In the first half of the year, we thoroughly uphold the political nature and centers -- we stayed committed to during difficult advising and secured new breakthroughs in -- national strategies -- reform and key strategic priorities.

We work many falls into 5 areas. One, we continue to play the role of 2 instruments and win this. Practically guaranteed and improved people's levels serve the real economy and they delivered a solid progress. Investment balances in the real economy exceeded CNY 1.4 trillion, up by 15%. Investment balance under the fire priorities in finance surpassed CNY 500 billion in technology finance, doing on the long-term nature of insurance capital. We scaled up long-term investment in Setec innovation, investments in relevant sectors exceeded CNY 220 billion and provide the protection of some assured over [ CNY 1 trillion ] for nearly 12,000 companies. For Green Finance, we actively built a service system of green insurance, green investments and green operation and participated in green projects currently energy, green consumption and other fields. With an investment balance exceeding CNY 110 billion.

We offered protection of sum assured of more than CNY 310 billion to 6,700 prices. In inclusive finance, focusing on the protected groups and SME developments, our investment stood at nearly CNY 46 billion and underwrote 26 welfare projects. some total semesters exceeded CNY 1 trillion. In pension finance, we promoted deep integration between health care and easily care services. Investment in adage care and health care industry surpassed CNY 26 billion and the scale of enterprise and occupation annuities and the management further expanded.

FYP from commercial, pension annuity individual pension and other business reached nearly CNY 8.7 billion. In digital finance, we stepped up efforts to build infrastructure and accelerate digital transformation. Investments exceeded CNY 100 million. We posted the online -- the growth of online insurance and provided protection of summer shares over CNY 420 billion. Also, we strengthened digital risk prevention control Second, we continue to practice the customer-centric strategy on all funds devoted to fulfilling on commitments for customers and provide in during protection grid health and later life, enjoying protection icing our commitment to long term -- and endeavor to consolidate the foundation for lifetime protection.

We worked to strengthen product ration, improve product competitiveness diversified supply and build a multilevel and multifunction product system. Flexible combination enables us to satisfy customers' full life cycle needs. Also, we improved the product structure. Long-term and health protection products and established a diversified and balanced mix driven by the synergy of participating annuities, participating incremental life insurance.

For improving claim settlement and fulfilling insurance responsibilities, we provided efficient whole process operations and services, upgraded the self-service claim function, enabling immediate training settlement and instant arrival of compensation. Special services, including advanced payments, medical expense early compensation for critical units and coverage for the diverse piece were provided.

Total compensation reached CNY 7.29 billion with daily average amounting to CNY 40 billion which manifested the protection function of insurance. We empower the frontline agents with digital tools and tap into AI and digital technologies to support business expansion. The digital showcasing platform presented our comprehensive service system and increased the customer recognition and the brand credibility.

To build an NCL for greater health, we deepen the coordination of medical and old-age care resources and build an integrated health security system. We advanced the innovative integration of health insurance and health management. The core as insurance pension financials in a deep integration of long-term capital management with medical care and outage care service ecosystem. We offered customers a one-stop solution of insurance, old-age care and medical services. We actively exclude the integrate growth model and created second, the growth curve, expanding the boundaries of health care services. And facilitate the front-loading of health management. We continue to cultivate service brands, including excellent medical care, health care and all edge care, excellent medical care provides customers with prevention, treatment and rehabilitation.

The excellent health care promotive integration of insurance products and services. and the forms of service system covering treatment medicine recovery and care to forge NCL for a better life, we diversify the ecosystem supply to meet various demands for high-quality life. We upgraded the customer service and the management system, expand the layout of the old aged care service ecosystem, enriched full life cycle service and established competitiveness with differentiated customer service.

We upgraded the 5 major service brands. The service ecosystem covers Five major sectors and the 16 core services. We have deployed 60 well health and -- care communities and 83 travel-based projects in road to provide diversified choices for our customers. Thirdly, we prioritize top driver desire deepen system and making reform remain committed to -- foundation for long-term benefits and boosting future momentum. And this internal development momentum. In house plan since the beginning of this year, we benchmark against the national business fare higher requirements can consider the reality of the company, accelerating the formulation of our 15 -- plants. So multiple discussions and scientific ags we developed and improved strategic planning system or on overall plan plus multiple supplies.

Based on the version of building a first-class Chinese financial service group sent uninsured risk and the strategic direction of practicing a bit into philosophy and building a strong NCI. We implemented a customer-centric team based and employee partnership strategy advancing high-quality development. through professional and some planning and strong execution, strong high quarters. adhere to the strategy of strengthening the HQ reinforcing the middle tile and stable in the classrooms siltstones strengthen the mid-tire branch companies and stabilize and consolidated grass roots or and full-time institutions for a powerful NCI, we enhanced headquarter functions in policymaking technology construction and talent deployment guided by the position of headquarter for priming institutions for implementation. We have target measures to execution strength through strong high quarters robust branches, we upgraded the strong foundation project to working with the focus on empowering agents through office staff office.

Rate -- rate-competitive through improved incentives in building operational financial management and target investments, we branched branch level growth momentum -- elite talents, we optimize structural talent refined incentive mechanisms in full and cable stock and outline even the talent redoing initiative, we further shore up our market realness also corporate property and embraced competent and staff absence build enduring mortality for the company's growth. effective synergies, we established a 1-year business in parent mechanism that provides company-wide support across all key business milestones.

In the past, the only China departments delivered strategy briefing is that we now have share product training service ecosystem, operation and branding teams at cognitively and empower the grassroots. This leverages the corona strength of I often efficiency. We optimized financial resource allocation mechanism strengthened input ARPU efficiency, refine resource deployment in line with strategic priorities. Their results for long-term regular premium products and health insurance. We introduced a net profit evaluation system centered on profit performance to get branches to improve their efficiency.

Cut out and improve efficiency through refined cost management while leveraging high-quality products of cost-effective ecosystem service. competitive base to our intent and tech enable operational tools to boost business growth and keep development.

Fourth, we focused on strategic priorities and drove new results in key areas. Deep organization development and quality recruitment adhere to a strategic priority of putting the team first establish a routine organization development framework anchored on the basic launch supported by series of targeted programs for quality recruitment. Optimizing structure and solidified agent business, formulated 3-year plan for individual channel development and provide guidance for team building and store units. We launched a 30-year backing up -- National Thailand program provides customized growth environment and dedicated support for talents, helping them build cost of -- realized entrepreneurialship.

We strengthen the organizational talent and capacity building in for and for tire institutions to enhance their it effectiveness. Practice modern -- in philosophy improved tire ecosystem management at a higher office rent office and agent level. to drive deeper integration or product plus services scenario plus technology care agents to transform from single product sellers to providers of follicular services, achieving new improvements in customer scale and business value. We make full efforts to strengthen the bank of channel, positioning it as 1 or 2 called channels and 2 coders top-level design improve institutional mechanism enhanced empowerment of the bank channel across products, training, operation and technology to form a 4-train support system, deepen cooperation with banks and focused on improving both the [indiscernible] the first half of this year, level premium from the bank channel reached a record high, contributing nearly half of the total value with some growth in both in size and productivity. Accelerate the development of core competitiveness in technology. Is there a data transformation at the strategic now priority in the 15th of February plan, aligning technology strategy with corporate development continue to increase resource in the technology.

Fill a special group for IT application innovation, accelerate the implementation of innovative IT applications, promote cloud-based center construction advanced AI plus strategy accelerated application I like models across business areas drive the acceleration of digital intent transformation fifth, continues enhanced business resilience and long-term investment momentum, strengthening capabilities and diversified the strategies to solidify robust long-term investment strength. We pay attention to us availability matching pursuing dynamic balance in duration structure cost return on cash flow.

Consolidating the foundation for long-term healthy and sustainable development, strengthen the research and investment capabilities of our team these macro drivers and the industry research to improve accuracy and force market adjustments.

Talent is key to investment. During the first half of the year, we recruited the investor professionals both our core team and explore AI empowerment to inject trade thinking and professional threats into the business making optimized as allocating structure increased allocation to long-duration bonds at holdings and high-quality alternative assets, adjusted ratio of TPL and the gradual mix of dividend and tax sectors based on market conditions.

In diversified investment strategies for the fixed income assets reading allocation to fund from portfolio type asset management products and risk to diversify return sources and improve investment returns. We actively increased investments in high-tech and new product sources in both primary and the sector markets focused on semiconductor new energy and about medicines support real come and grow with enterprises. In the first half of the year, we navigated severe global capital market volatility with solid professional have be a prudent investment strategies.

Our investment yield has ranked among top in the industry for 3 years. 2026 marked the first year with the 15th bioplant anniversary of our company, our stuff has struggled with determination of hard work delivering an outstanding harperformance, achieving a strong start of the 15 strat that we applied or formation and accurate stronger momentum for the company's further growth. Looking ahead, we'll continue to fold our competitiveness in foreign assets. for using the guiding of part building and the parking compete for clean and upright plate ecosystem, keep spare professional IR alliance where we will lead a high-quality development with high-quality part building and go fully to the low or product committee in second direction managing the overall situation and ensure implementation we will continue to improve the -- judgment, put understanding and fleet execution employees at all life wear transform the market, political and organization strength into the advantages for reform and development we will uphold the culture as a sale of the company, foster a corporate culture that values customers had work openings inclusiveness and ability to act and achieve your practice perish professional arm and for the new aero culture into CRA's most indie competitiveness and grading force back at 2 strategic planning deep institutional reform and optimize resource allocation will remain grounded in the presence we plan for future strengthen internal strength and enhance our strategic leadership promoted accumulation of the company's 1 plus [ 16-, 17-year ] plan, had aprotinin the end. it will closely align with strategic has business development and market changes.

Long professional market already anti-systemic reform to the difficult thing break down institutional barriers at a single development, optimize incentive and consuming and performance evaluation system. We'll -- into once NCI and continue to deepen the ordinate development of insurance plus service plus investment to enhance the comprehensive strength, leverage the synergy of NCI driving the company's transformation from individual efforts to coordinated corporates will deepen our customer services and improve this solid new power channel and can dewater or bank and individual insurance consolidated foundational traditional business while expanding insurance and on subsidized insurance and Internet business. We will enhance comprehensive customer service and management capabilities.

On the investment front, we will continue to strengthen investment profitability and diversify investment strategies. Build investment ecosystem in -- coronation creates a long-term stable value for focused on strategic areas, increased investments established and consolidated new advantages and achieve breakthroughs and saving development. We'll continue to deepen the strong high quarter strategy, leveraging a strong high quarter to drive the excellence of our institutions, we cater into a strong foundation project. strengthen organizational talent and capability development acquire investment in glass roots. We will continue to dose serving ecosystem, open up phase for the leap across medium and high asset orders in health and care.

Keep increase in investments in technology and AI accelerating the comprehensive application with AI, big data and other technologies across Thailand products, service investment is there to build a digital intelligence and into I stress organizational capability building and continue to deepen the development of learning-oriented service empowering and research-driven organization.

Faster atmosphere of data and lifelong learning. Persisting empowering customer teams and employee food service, establish a professional standardized refined on comprehensive service empowerment system. In core branches at all levels to see market and completion entrusted their knowledge into policy to method and business results in house the company's innovation capabilities, the dramatic organizational capability and service support capability. As a new starting point of our [indiscernible] I look forward to the future.

After 3 -- development, we have built a stronger foundation enhance our stress and to appoint and achieve small stable operations in this first year [ 15 serial ] and this milestone year marching authorities is energy of our company. We once again delivered outstanding interim results on top of 2 consecutive years of high growth. there's also substantial growth, substantial gift to color progress. Looking ahead, we are full of confidence and the drive that private performance will continue to carry out the spirit of NCI professional and Army. We will impact on a new journey of 15-year plate resolved and hire. We will open a new chapter of more high-quality development and contributes NCI's to serving transfer modernization and the building of financial power. That is the end of the presentation. Thank you.

[Operator Instructions]. Now let's welcome the first question.

Thank you. Thank you for your presentation. I'm with social securities. First of all, congratulations on your performance. And I have 2 questions. The first is about the liabilities and the second is about the investment. The first question against the higher base built in the previous years, you have made a great improvement in your regular premium and NBV. So what do you think are the key drivers behind this performance. the third quarter has passed, and we have a very high base now. What is your outlook for the full year growth rate and the business structure.

And the second question about investments. We see you have made great investment return in the first half of the year, leading industrial peers. Can you elaborate on the investment assessment magnism, especially the regulatory requirements for long-term assessment on investment. How do you secure mid- to long-term return?

Mr. Gong will answer your first question.

Thank you for your question. In the first half of the year, we focused on life insurance, investments and services. improved our customer center corporation and service capacity. In Life Insurance main business. the regular premiums, tenure and above premiums all sustained good growth momentum. These results are a hard one. And at this standing point of our 30th anniversary, we are grateful for our customers and to pay back our customers we will continue to build up on this performance.

I'd like to share with you my views on this we increased through our team building. In the first half of the year, our team building has increased its quality and quantity. No matter in the high-performing team in the individual team or the type of -- or the performing team in the bancassurance channel. Our productivity also improved. So this the team base has contributed to our business performance.

The second is our channels on our growing investment in our individual channel, we also elevated the strategic level of the bancassurance channel and from the dual co-channel and -- driver strategy. This strategy has delivered solid results. The individual and bancassurance channels recorded CNY 17.7 billion and CNY 14.6 billion, up by 24% and 32%, respectively. The third is management empowerment. We strengthened diversified product supply, improve our structure. And based on the strong foundation initiative, 3.0, we improved our capabilities and strengthen both the office team and the agent team to build strong teams with strong units, through this improvement of management, the how time flies. And this -- we have now at the end of the August. We are confident that we can fulfill the full year plan and the tasks for our growth. we will keep following the path of the increase of volume and value and improvement of structure and quality.

And the focus on the key drivers of productivity, follow the product plus service such technology, more than marketing concepts continue to improve our product structure, improve team productivity and focus our efforts more on long-term and high-value business. Through this effort, we are confident that we can sustain this good growth momentum and consolidate our past achievements.

Thank you, Mr. Gong. First, I'd like to thank you for your question. Thank you for your recognition call, NCIM, in the first half of the year, we delivered a strong performance set long-term investment philosophy and upgrade our evaluation mechanism from 3 points view. First, we align our evaluation with long tense cycles from multiple evaluation indicators. Make our investment different more forward-looking. We have multiple indicators with 1 year to a year and 5-year metrics. Second, we saw some value when designing the evaluation in the -- we finance the absolute insurance relative performance and risk control with strong anion sustainable profitability and stable operations.

So we keep our remote dynamic metric positive shifts and the market changes that will assess the criteria needed for markets for strategy investment. We make the evaluation dynamic. This is very important for us to achieve the annual and long-term goal to sum it up the evaluation system on CI is in line with the national strategies and our high-quality development goals.

Thank you. Thank you. Now let's welcome the next question.

I'm with China Banking Insurance renews. Since the implementation of the report conduct alignment on in 2024, we have seen that the NBV of the channel has been growing, but industrial competition has also been getting more fierce. And the regulators issued the new roles to strengthen refined cost management of the channel. What impacts do you think will the new roles bring to your company? And what are the development strategies of your bank insurance channel against this background?

Mr. Wan, why don't you answer this question.

The document #65 focuses on refined fee management. And post every link accountable emphasizes on the authenticity and the compliance of fee utilization and it drives more standard and organized bancassurance competition. Renewables set higher standards and for the cost of control, professional service and compliant operation for insurance companies. The new rules specified the regulatory bottom line. It will be an important measure to advance high-quality developments of the China's bancassurance market.

The impact on our company are as follows: the first is it will create a key opportunity for us to improve quality and efficiency. To comply with the rules, we need to strengthen refined fee management and which will increase the value contribution of the channel and further promote cross departmental synergy. And the guide towards customer needs in terms of our product innovation and build a differentiated competitiveness, so as to provide a better service and greater value for our customers.

The second is -- the rules will promote comprehensive upgrade of our operational model. The rules encourage us to give us an important opportunity to deepen our development of this channel. The refined cost management will help us to improve our competitiveness, but we are also reap more competition added by the new rules. We will deepen the coordinated development of insurance service and investments. And this will bring us bring conference channel great growth potential and towards a higher level and higher quality development. In recent years, our bancassurance channel has maintained robust growth momentum and has become a major engine driving our scale and value growth.

In the first half of the year, our company's product committee prioritize the long-term investment, long-term development and established dual-call channel and the decoder strategy. which elevated a strategic role of the bancassurance channel. And the journey speak to a core channel. The bancassurance channel will follow the strategy of making progress while maintaining stability so as to achieve stable operation with progress.

First, the strategic positioning has become more clarified. We conducted strategic research on the new roles and have multiple rounds of special sessions. After elevating the channel to a strategic level last year, we further. In the first half of this year, reinforced this position as a core channel. In May, we established bancassurance channel leading group for the strategic development and also established leadership from other peers. We have formed top-down synergies, which demonstrated our clear strategic resources.

The second is our economic environment will be more concrete. We will continue to advance technology, operation and ecosystem empowerment. We will continue to improve the service quality, efficiency and the capacity of the channel. Based on the 10 ecosystems, company medical care, health care, et cetera, this will satisfy our customers' needs for diversified protection and wealth management across their life cycles, we will continue to forge differentiated competitive advantages to better facilitate the development after bancassurance channel.

The third is the responsibilities will be informed more effectively. We will strengthen assessment-driven guidance to make sure the provincial branches. The central branches and the fourth key outlets will share their responsibilities. We will advance the strong foundation initiative and extend services to lower-tier markets through business review process supervision and cost of management. we will make sure the strategic arrangements are implemented and operational tasks for view.

On this basis, we will leverage our advantages in investments, deepen strategic partnership, accelerate deployment in high net worth on the private banking improve our product supply, sales skills and the service capability to inject more growth momentum. In summary, we will -- these opportunities amid market turbulence for the NCI brands stabilized scale, improve structure, upgrade value and strengthen compliance to make concerted efforts to celebrate the 30th anniversary with outstanding business performance.

Thank you for the opportunity I'm from Citi Securities. I have 2 questions. The first on asset level, we see an impressive investment performance in Q2. I'd like to know how would you see the active market trend in the future? In the car loan interest environment, what are the allocation expenses for fixed income assets and equity with a more strategy for alternative investments.

My second question is about the liability side. I'd like to know what are your team building structure for individual channel. How would you plan to import the team and achieve sustainable growth?

Please have [indiscernible]. Welcome Ms. Tina answer the first question.

Thank you for your interest in NCI. market, we believe the short-term avoratility won't change the long-term positive trend, we are fully optimistic about China's capital markets. on the fundamental side, our economy in the face of transformation operating our growth rate still leads among major economies. Corporate earnings are stabilized and picking up of which have been -- have provided a solid base for active investment in China.

In terms of liquidity and front flows our market policy remains moderately account and the low interest rate environment has selecting reallocation demand and medium- to long-term capital represented by -- capital, stable long-term incremental money to the market.

On the one hand, we believe now there are a number of quality dividend NIMs attractive for insurance allocation. On the other hand, we are ripe attention to the opportunities brought by new productive forces, especially the new lead by AI will target follows second, our allocation strategy, mistake to free principles as a bit mentioned our allocation and absolute term focus. We build a portfolio for fixed income. We increased long duration with enough cash flow quarter and fixed income assets. build a solid turn foundation.

On the other hand, we guided by the general direction, increased our flexibility of the portfolios. You just mentioned the alternative We made certain efforts in this regard. We are making progress and increase our exposure to alternative capture quality assets and being excessive returns. In the future, we will improve our risk investment research capabilities and risk control capabilities improved returns, reward investors and shareholders with reference.

[indiscernible] will answer the second question.

To summarize our individual channel feature, I would say it is the team is the foundation. It is not only a slogan. It is our practical implementation, showing our development concept and where our competitiveness life. Specifically, we guided by the corporate culture to build specialized professional and our Iran teams. These are the orientation of our team building. we have established organizational system to establish a strong team with good service quality and competence.

In the first half of the year, in our individual team building, we have made a run breakthroughs. In regular recruitment, high-performing team development and high-performing team with strong units. These are the 3 priorities of the channel. The channel recorded 20,000 new recruits with Mount new recruits steadily staying above 3,000. High-performing team development delivered notable results with an increase of 16% and the average productivity increased by 18%. The standard units doubled the number. This shows how we see the team at our foundation to promote our development of the separate LP team.

This year marks the 30th anniversary of our company. undertaking this opportunity, we have started an important campaign in lighting 30 cities for the 30th anniversary. To date, we have 30 branches that have held their recruitment events which are widely attracted many talents to join our team in the future. We will switch focus and extend the events to lower outlets to host this conference in more cities and attract more talent to join our company.

You may ask -- how will we cultivate this talent and retain them. This is also what we need to answer for the TIM Foundation. And for this, we build comprehensive empowerment via 4 platforms for them to grow and to stay. The first is the workplace platform. We have the best workplace for the agent team, and they established the [ Shinhan ] meeting place and a series of workplaces. To provide our agent team and customers with a good place to top face-to-face.

The second is the scenario platform. As the insurance business are becoming more complicated, how can we better explain our business to our customers. We have established a set of scenario system to help customers to better understand how were insurance companies will provide them with better services in old edge care and other services.

The third is the training platform. We expanded our classes to our talent and the focus on the new crudes, high-performing teams to provide them with a series of growth system. We formalized the standards and enforce the strict requirements we built a standardized training platform with full coverage so that our customers and the agent team can share our resources in this ecosystem.

The third is -- the fourth is the ecosystem platform. which combines the ecosystem of the company and the personal ecosystem, mainly ecosystem after agent teams -- this is my answer. Thank you. question. We know adheres to a diversified investment strategy. In the first half of the year, what have you do -- what progress have you made in response to the core for medium and long-term capital to enter the market.

Mr. Yucheng Yang will answer your question.

Thank you for your question. The diversified investment is our firm investment orientation. The strategic emerging industries development created a broad space for our diversified deployment of insurance capital. Taking for the Honghu fund, we have contributed a total of CNY 46 billion. We also it holds the high dividend leading enterprises, including China Telecom. The dividend income has become the cornerstone of this portfolio. It has become an industrial benchmark of medium and long-term capital entry in the market.

Second, we continue to increase allocation to long-term holdings such as high dividend assets. amid recent market corrections, we proactively added exposure to equity assets oriented towards dividend strategies and new quality productive votes.

The third is we kept leveraging the role of long-term capital in the alternative market. We led investments in rates of JD and China resources. We also participated in the strategic placement of appeals of HPC and the China Resources New Energy.

At the same time, we have deployed quality resources of long-term development. About the investment in site innovation, we advanced efforts on investment research, investment layout and ecosystem collaboration in the investment research system we set a research team for the strategic emerging industries and built an expert pool to cover the emerging industries, putting research ahead of investment to support investment in the technology sector.

On our investment layout, we pursue parallel deployment in the primary and secondary markets. In the secondary market, we maintained firm exposure to tap growth opportunities. Our capital back to large model cheap R&D bringing us still gains from valuation rebound and the company growth. In the primary markets, we joined the strategic RPO placement. And we acquired stakes from the Shanghai Integrated Circuit Industry investment.

For ecosystem collaboration, we leveraged the ecosystem resources and explore the insurance capital plus industry leaders in the specialized asset management model and broaden our investment footprint in state innovation. Thank you.

I'm from -- online. The NCI Masters company anniversary and for with new product committee despite the deep industry adjustments and market volatility. The company has maintained steady growth. performing peers. How would you plan to consolidate your montages and sustain strong momentum going forward.

Please welcome Mr. Yang Yucheng to answer your question.

Thank you for question. This year, it's quite an exception of NCI masters anniversary and the full year of the new product meeting over the past 3 years through the hard work of our staff and support and the support of media friend investors and shareholders and all sectors we have delivered our best -- performance for 3 consecutive years, we have achieved double-digit growth in FRP and MBE star improvement in business quality in treating investment returns running light profit growth, higher shareholder dividends impact on intensive high-quality development path that enhance both scale and well optimized structure and efficiency. The reason of meaning to hold.

On one hand, we have strengthened proper leadership to fill our mission of serving country and the people who finance and unite our people to party building and the new era corporate culture and driving initiative for active and creative few staff creating a positive environment for reform and development. This is the most important reason on the other hand, we prioritize strategic and top level takes meters for reform. In-house mechanism in one our competitiveness -- our competitor is from investment service and investment we carry out the quantity development, make our insurance stronger, provide a whole life cycle services for customers unveiled and strengthened service ecosystem.

We strengthened our investment present research capabilities, our strategy is not really an details. increased companies for those 3 pillars and unleash from dividend and strong momentum. At the same time, we pay attention to action efficiency, allocate or sale for execution. The detailed oriented efforts and resilience we translated our strategies and reform measures into concrete actions, strong execution and synergy we are capable of tackling the market trends, understanding the initiative for the development today, SI stands on a stable and growing part of consolidated growth foundation and have more growth momentum after 3 years development we have accumulated development edition and cost strength, including strong asset strength and adequate porci nationwide China and institutional networks, robust investment management and also liability coordination, a first-class Thailand pool, an excellent brand and culture.

You are confident on table of opening a new chapter of high-level development. You just asked how we can sustain strong growth momentum. In my view, the successful experience of reform and transformation of the tough years. So the other with the proforma cumulation of the past [ 15 ] years, is the greatest source of content for NCI to win the next 30 years. Looking ahead, we will maintain strategic focus up on the long-term is that course and prioritize the following strategic long term initiatives.

First, [ upheld ] leadership and contract the whole take the company on the right cost will remain our position at state-owned financial price practice people central nature of financial work, so national strategy and delivered on the self priority in finance, guided by a hard-working open inclusive in on a pragmatic corporate culture. We will focus on work that builds the foundation benefit future and strengthen momentum carry out professional and make arising teams. Make our professional IM -- part that to lead carefree drive our corporate culture becomes the deepest competition and soft power second regarded by the strategic planning process on market or a systematic reform, unlimited company development capability.

After multiple discussions, we have formulated the million that build a first-class financial group and the strategy that participating for silos still stronger NCI will issue the plant later. Next tap will implement the 15th -- stable plan, practice 3 major pillars that is customer-centric team-based employee partnership, gross market opportunities and strengthen our new China driver strategy, enhance the traditional advantage of individual channels, strengthen back our growth business and emphasize our strong adequate lowest mid-level branches and stabilized grass roots operations for stabilizing the mid-tier branches to improve their completion stabilized grassroots has improved comprehensive stress for the [ 700 ] institutions next questions have a solid foundation in year by year and moving by ranks.

We will focus on execution on operations. We will strengthen the core development and practice marketing philosophy enhance the synergy between high quarter subsidiaries and branches and build a system organizational system that connects talk about standardized we will have more ecosystem and partnerships transform our strength in asset service investment and brand into the comp invesment capabilities and moderation capabilities into our market competitiveness build on NCI that empowers and provide long-lasting protection, water health and bolt to the customers. We'll increase targeted investment in key strategic errors formation -- in filter the case of competition in the life insurance industry who invest more precisely and produce more efficiency. We'll put attention to optimizing resource allocation. the increased investment in strategic areas such as product compressing, sales force development, AI and branding will consolidate our competitiveness and have core contribute overall drive innovation-driven development as a core engine plantation so as the innovation will innovation in practical factors will fail deep learning empowerment, learning-oriented organization and service empowerment organization build risk treatment organization that grow with the time.

Last, I'd like to say that the company will be priority in doing mentality and forward-looking reason we stand on 30 years of solid capability and profound spirit or this new starting point all of us LCI are highly motivated and got a confident we will stay the execute our strategy. The -- acute transform our years our community spend into market-driven future NCI to a greater stability and fortes high-quality development. living the next years overall. Thank you.

Next question, please.

I'm from [Foreign Language] securities. Congratulations again for your achievements. I have 2 questions. The first is about the asset liability management and new rules, we have seen the regulatory organs have issued new rules. Could you elaborate on the impacts of these new rules on your company? And what is your ability cost profile? How will you comply with the new requirements and strengthen your asset liability matching?

The second question is about the Sitech forces represented by AI driving operational transformation across all sectors. How do you look at the impact of site development on the industry. And what is the main focus of your site application in the environment.

Mr. Gong will answer your first question.

On FRA released the new measures for asset liability management. on governance structure, management and mechanisms and indicators constraints, the new rules have come up with higher and more strict requirements compared with the new rules, we have much to do. And from a macro level, I think there are 3 main impacts.

The first is we will strengthen our governance foundation the new rules push us to hold the board and senior management more accountable and raise requirements for the coordination and professionalism between assets and the liability side which rate is more in the requirements for our 2 sites.

The second is we need to deepen refine management. The new rules play out detailed standards for our structures, indicators, risk control they have issued the guidelines. And for this orientation we will integrate this in our product pricing, business planning and asset allocation to build a close-loop framework and to underpin our resilience against the interest rate and market volatility.

The third is technical empowerment in decision-making. We deepen stress testing and the back testing improve operational standards. This will give us a better foundation to make decisions to improve our strategy setting and the risk evaluation. Asset liability management has always been a top priority in our operations in the past years. In the as liability management, we have achieved good results. And across our accounts and the strategy and also asset management level, we have come up with specific requirements.

So in the past few years, the results of our ALM management are positive. As of the end of June, our annualized comprehensive investment yield of 1-year, 3-year and 5-year windows or cover our average liability cost. Also, as the lowering of the assumed interest rates for new policies. Our liability cost is on a downward track. This will help us to better prevent risks. Our asset duration and liability duration, coordination has also been improved.

Next step, we will continue to analyze our weaknesses in ALM management and improved our system to make more detailed policies and upgrade the ALM matching. Thank you.

Mr. Yucheng will answer your second question.

The question is quite sensing. This represents our competes in the future. We purchased a modern marketing concepts. Technology is an important part in this contract in the first half of the year from 3 pillars, all driven by the growth of AI and technologies. We believe the tax impact on the industry is reflecting average version on customer engagement.

About the insight to the customers and the marketing campaigns. I would like to share event for important customer event, we use big data to select a very important factor. We act accordingly and event a huge success. We believe technology we represented by AI is quite potent for customer engagement.

Second, revolutionize operational process, the efficiency and customized ratio especially on the Internet business is very important. For example, we're working with Internet companies if we can become partners of those big companies, our efficiency for claims underwriting came up quite important. AI is important for the operation. revise the paradigm risk management through the data modeling and machine learning pricing becomes more accurate and risk identification happened earlier. The industry is moving from paint names times for prevention risk for an open up new states for improving long-term competitiveness of -- business from service technology and the risk management is very important. If you can provide better services, it's important to reduce claim statement in the future. for the we will allocate our digital enhancement in the PTC in the future. and make work through in 5 mega areas, accelerated the buildup of digital workflows, we are growing update inborn are key functions like customer service underwriting claims creating our digital workforce metrics coming from middle and back office. Machine will handle the standardized work, people will focus on higher votes we improve both efficiency and the human part.

Second, unlock value of data as a core production factor. We believe this is very important for production factor for forward full dominating injection and the trusted us rent for business asset system. So this is a controlling empowered precision marketing, smart risk control and product innovation or operation service motor roll out intelligent and writing smart plane processing and AI empowered customer service, but I take overlooking repetitive tasks. So we can improve customer service and res costs for steep and tech enable ecosystem building. We will use technology with our connector ecosystem with market here makes our customers feel more safe to strengthen our digital foundation. We'll focus on building asset cloud acceleration on cloud multiple architecture infrastructure provide a flexible stable unsecured to bacon for business continuity I'd like to walk you through our applications. I asked one of our young employees, what's your support and now for the forges need while on side, I need more focus from the company.

Due to time limit, let's welcome the last question.

I have, 2 questions what are the achievements for the ecosystem mobility and what value that the service cost bring to customer demand.

Thank you for your question. Let's have -- to answer your question.

Thank you for the question from [Foreign Language] agency. As a said in the past year, we have the growth in ecosystem mobility is the customer centric for upgrade our first ores brands. We find more service ecosystem current areas I think the achievements are reflecting in 3 areas for some product innovation. We execute -- we roll out to service some marine pop products to market. We have first -- product to substandard population and in collaboration some external partners, we have rolled out comment wheel product Second on customer benefits. We rolled out new consonant office penetrate to provide a comprehensive on-top whole life solutions for key family clients.

We accelerated our hotline and provide customer service to the clients, we accelerate our layup. Benchmark get peers at home and abroad, we collected to hospitals and nursing agency is and follow the lead of those advanced payers. We will provide a comprehensive system that is in line with LP just we mentioned as Chairman mentioned, we have rolled out a retired ecosystem empowerment mechanism. We focus on a number of sectors on the high office bid office agent level, we'll provide agents this technology impairment and the ecosystem empowerment.

To summarize all, we will provide a close lots to empower the LPs and make them professional. And make them provide a one-stop solution to clients, solidify the foundation. For our customer-centric team based and employee partners strategy. Thank you.

Last but not least, we have selected several questions for retail and the minority investors. The first is about the dividend distribution policy. We place a high priority on shareholder returns in we will formulate our dividend proposal by analyzing regulatory guidance, financial sector conditions, financing and the capital needs, investor expectations also our business plans, our office investment, funding and sovereignty. Balancing our business expansion and shareholder returns.

For the interim dividend, we propose tax-inclusive cash payout of CNY 0.73 per share, up by 9%. As for the final dividend, we will draw on full year results, capital and risk metrics. And the interim dividend distribution and the PM benchmarks, solicit shareholder feedback and workout the final cash dividend plan.

The second question is about our outlook for solvency in the coming years and how to maintain adequate solvency -- our solvency position is solid and far above regulatory thresholds. It has set on face-to-face, many dragged down by the falling 750-day moving average treasury yield curve. Amid volatile markets, we prioritize solvency management with targeted multifront actions.

First, strengthen internal capital accumulation advanced product structure transformation focused on value creation, refined cost control and lift overall profitability to consolidate capital base; secondly, expand external capital resources we issued CNY 10 billion perpetual [ AT1 ] bond to strengthen capital base. Third, optimize asset allocation to balance returns, risk and capital needs. We have full confidence to keep the solvency metrics some in the long term.

Now comes to the end of this announcement. Thank you all for your attention and support for the company. For further questions, feel free to contact them. Thank you again for joining us. Thank you.

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 platform. I'm the host of the meeting. First, let me introduce the senior management participating in today's meeting. They are Chairman, Mr. Yang Yucheng; President, Financial Principal, Mr. Gong Xingfeng; Vice President, Mr. Qin Hongbo; Vice President, Mr. Wang Lianwen. We also invited Mr. [indiscernible], NCI AM President and NCI AM Hong Kong Chairman to participate in the meeting. We also have the honor to invite the independent directors of the company to participate online. This meeting is divided into 2 parts. The presentation and Q&A session. We will provide simultaneous interpretation.

Let's move to the presentation part. Please welcome Mr. 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 14th Five-Year Plan and it is also an extraordinary year for NCI. Facing a highly stressful and complex internal and external environment, our employees have worked hard throughout the year. Our business performance has reached new heights, building on a high base. Multiple key indicators such as total assets, gross written 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 RMB 1.9 trillion, up by 12.2%. Gross written premium was RMB 195.9 billion, up by 14.9%. EV was RMB 287.8 billion, up by 11.4%. Net profit was RMB 36.3 billion, up by 38.3%. The company [indiscernible] promise to shareholder returns and share the fruits of its business development with investors.

In 2025, the combined cash dividends of the company reached RMB 2.73 per share, totaling RMB 8.5 billion, up by RMB 600 million compared with last year, up by 7.9%. Since its listing 15 years ago, the company has distributed dividends to shareholders totaling RMB 44.5 billion. Relying 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 RMB 200 billion.

In 2025, the company's comprehensive strength reached to a new level and achieved fruitful results. The operating revenue reached RMB 157.8 billion, up by 19% year-on-year. Net assets reached RMB 111.5 billion, up by 16%. ROE reached 34.7%, up by 8.8 percentage points. New business value reached RMB 9.8 billion, up by 57.4%. NBV margin was 16.2%, up by 1.5 percentage points. The total investment (sic) [ total investment income ] was RMB 104.3 billion, up by 31%. Total investment yield was 6.6%, up by 0.8 percentage points. Core solvency has remained adequate. We have embarked on a high-quality development path of growth in premium and value and optimization of structure and quality. Both premiums and business value have seen comprehensive strength.

FYP from long-term business increased by 48.9%, FYRP rose by 36.7%, and NBV margin and EV have all achieved significant improvements. From structure perspective, FYRP in FYP exceeded 60%. Renewal premiums continued to play stable, rising low. We have won the battle of transformation to par insurance. Par insurance proportion over our regular payment business increased quarter-by-quarter. In the fourth quarter, it reached 77%. 13-month persistency ratio was 97.1%, up by 1.4 percentage points. 24-month (sic) [ 25-month ] persistency ratio 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 strategies reached new highs. We improved our management system for serving national strategies, established special groups and formulated implementation plan. The investment in serving the 5 major areas in finance exceeded RMB 360 billion. For inclusive finance, we improved inclusive finance products, underwritten 46 people's welfare projects. Investment in the inclusive field has reached RMB 55.6 billion, while pension finance, the second and third pillars of pension have been vigorously developed. The total premium on the third pillar commercial insurance annuity exceeded RMB 60 billion.

For technology finance, we provided over RMB 1.2 trillion in risk protection for 14,000 technology enterprises with investments reaching RMB 140 billion. The company has leveraged its patient capital advantage to support technological innovation. Our medium- and long-term fund entering market project was selected as an outstanding case in the 2025 CCTV Finance. For green Finance, the focus was on investing in areas such as green bonds and public REITs for clean energy with investment reaching RMB 75.1 billion. we have been awarded as outstanding ESG case by the Publicity of Education Center of the Ministry of Ecology and Environment.

For digital finance, we supported for the development of digital industry enterprises with investment balance exceeding RMB 68 billion. By 2025, we have fulfilled social responsibilities and demonstrated the commitment of state-owned enterprise. New achievements were made in rural revitalization with a total investment over RMB 70 million. For 9 consecutive years, a public welfare project to care for sanitation workers have 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 company first (sic) [ customer first ], hard work as foundation, openness and inclusiveness and success in action. Our NCI professional iron army spirit was professional iron army, pursuit of excellence, benevolence and virtue, inheritance and innovation through organizing honor evaluation, speech contests, special lectures by renowned teachers. We have widely carried out 150 cultural promotion activities among employees. And agents held the 2026 Agent Summit and rewarded outstanding teams and individuals and the inspiration of the corporate culture.

Enthusiasm of high morale sales team is high and coherent of the company has reached a new high. Our brand awareness and reputation has been improved. Sponsored high-speed rail over 20 marathon events provided full support for Suzhou Super League and WTT Chinese tournament, launched the brand IP, Xinli Bao, demonstrating a brand image that substantial brand vitality and strength with stable operation and outstanding service. The cohere and influence of the company culture has been enhanced, ranking among the Fortune Global 500 and top 50 global life insurance company. After more than 2 years of hard work, the company has made a considerable and gradual progress in all aspects. The dividend reform have been released. The momentum of value growth has been strong. Business structure has been optimized. Quality of development has been enhanced.

Looking back to development in the past year, we have carried out the following key tasks. We strengthened strategic planning and made systematic in-depth arrangements, attached 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 3 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 3 strategic lines, customer-centered, team-based, and employee partner-oriented.

We aim to provide enduring protection, better life and greater health customers, create a culture of love and fulfill the dreams of entrepreneurs for our team, strive for growth, consistently innovate and support and realize the idea of serving the country and people of our employees, like better products, better services and better life with NCI. We clearly focus on the coordination of 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 market-oriented systematic reform, launched a series of combined measures for reform and development one initiative in market competition.

From a grasp of flagship products, promoted transportation (sic) [ transformation ] to par products, we made efforts to optimize our business structure. We have established a dedicated team with highly competitive products as the driving force. We provided this systematic support for the transformation in terms of team training, ecological collaboration and assessment guidance. Over the past year, the company's par insurance has been gradually made breakthrough and reached a favorable state, achieving FYP of RMB 11.9 billion, an increase of nearly 12x year-on-year.

Substantial and significant progress has been made in product transformation. We'll be making efforts to enhance the competitiveness of our products, establish diversified product matrix centered on customers, and covering the entire life cycle in which a variety of wealth management products and pension products. Launch innovative products such as [indiscernible], deeply integrate 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 finance for 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 deepened our efforts in China and team building accelerating breakthrough in business transformation. In individual training, we have strengthened the system base management by self-dependent operation. We advanced build a high-performing team with strong units, Longteng Fengwu and WLP Entrepreneurship Support Team. These efforts have solidified the foundation for our team. We have built an ecosystem scenario and benefit system, established one-stop digital marketing platform, 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%. NBV grew by 19.4%. The workforce size stabilized. Average monthly comprehensive productivity per capita rose by 43%. We have elevated the bancassurance channel to a strategic level seizing the opportunity.

We continue to deepen product transformation and team building based on significant optimization of cost structure. Total bank premium reached RMB 72.1 billion, growing by 40%. FYP from long-term business reached RMB 37.9 billion, up by 52%. NBV reached RMB 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 service empowerment system from scratch from basic to excellent, upgraded our major service brands that cover the 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 covered 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, levering technology to empower operation, providing ultrafast service to agents and clients.

The company's one-minute completion rate for policy service stands at 96%. We paid out more than RMB 42 billion in maturities and annuities over the year and RMB 14.7 billion in claims. We launched 11 large model intelligent agents and NCI Digital Human Ambassadors. All have empowered service and improved 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 RMB 104.3 billion, up by 30.9%. Total investment yield was 6.6%, up by 0.8 percentage points, ranking among the industry leaders. The company improved investment management and asset liability correlation. We continue to improve investment attitude. We expanded our team of investment professionals cultivated and recruited outstanding talent, established investment research and asset 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 base by lacking an active base on the fixed income asset income. We invested in convertible bonds, bond funds and other diversified assets, reducing negative interest spread and reinvestment risks.

In response to the requirement for long-term capital to the market, we established 3 pilot funds with China Life for a total contribution of RMB 46.25 billion. We strengthened the development of our investment ecosystem, enhanced coordination with various institutions, good use of financial resources, reinforced investment risk management, controlled credit risk, managed market risk, optimized multilayer risk buffer system, built robust investment management capabilities, striving to achieve excess returns on the basis of long-term stability, focused on strengthening foundational management to solidify the company's high-quality development, build powerful quarters, clearing the role of head of 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. Empowered branches across 6 dimensions, helped them upgrade and elevated their overall competitiveness. Optimized resource allocation, launched reenergizing talent initiative, improved talent allocation with a focus on efficiency. Established a profit assessment evaluation system for branches and worked diligently to enhance return on investment, improved risk control system, established penetrating full coverage and integrated risk control framework, refined authorization system, achieved group level management goal of clear authority and responsibility.

The year 2026 marks the beginning of the 15th Five-Year 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 our original aspiration and mission of finance for the people and for the country, take corporate culture at the soul, take strategic planning as the directional guide, seize market opportunities, improve the synergy across the 3 fronts, focus on core business, continue to deepen reforms, enhance our development capacity and persistently build a powerful New China 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, inject 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 core 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 profit sources, develop par insurance and other floating return products, enrich the supply of long-term and health products, create a closed loop of health insurance and health management, accelerate channel transformation and team development, enhance the core competitiveness of life insurance business, elevate organizational development to a strategic level, enhance the value of bancassurance channel, build an integrated online/offline Internet ecosystem, upgrade the profit model of group insurance business, leveraging the powerful synergy of One NCI.

We will transform the company's strength into market competitiveness, establish a new model marketing concept and practice 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 the people, delivering enduring protection, better life and great 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 multilateral investment portfolio, high-value asset allocation, enhance investment management, asset liability coordination, with long-term value creation, become true patient capital and capital.

Sixth, we remain committed to laying a solid foundation for long-term benefit. We will build a stronger culture, which will lead the branch office to become stronger. We will balance development and security, strengthen implementation and improvement of risk control system. We will increase technology investment and reinforce product scenario AI empowerment.

Going forward, we will adopt operators' competitive stance and a spirit of striving for excellence, pursue through innovation, enhance long-term competitiveness, achieve a solid start to the 15th Five-Year Plan.

The above is my presentation about the company's business performance.

Thank you, Mr. Yang. Next, we move to the Q&A session. [Operator Instructions]

I'm [indiscernible] from Soochow Securities. First, I'd like to congratulate on your star performance in last year. I have 2 questions. First is about liabilities. We can see you have reached a 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 3 years, we are in a low rate environment and the net investment yield of the peer company is going down. And I want to -- and we can see the total and comprehensive investment yield 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 invite Mr. Gong to answer your first question.

For 2025, we have yielded remarkable results. The GWP increased by 15%, FYRP grew by 15%. And 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 Bancassurance channel group channel as well as the Internet channel, we will make full efforts to 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 on 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 NBV and premium income. And more specifically about the product 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 at the center and provide multi tiered and diversified products, combining the insurance products and 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 strengthen asset 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 the 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 aged care pension products to include in the individual pension products. And we will provide whole life cycle health solutions to customers, including the prevention beforehand in process control and rehabilitation afterwards, and we will provide diversified product pipeline, and we will seek the policy opportunities and sales and provide and explore the products, including the participating health insurance, the consumption and medical care insurance, the specific medicines, the disability and unit-linked products, et cetera.

And about the transition to participating business, I want to emphasize in 2025, we are determined in this transition and have a good start. For example, in the sales, we have made breakthroughs. And last year, the sales of participating business is RMB 12 billion. And given that we haven't sold the participating business for many years, and this is a hard 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 system for the future participating business. But in 2025, it's just beginning.

2026, 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 as 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 asset liability management, 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.

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 the long-term value investment.

Your question regarding 2 areas. First, on the interest rate trend and second on the equity 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 condition 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 equity market, we are confident for the medium and long-term development of China's capital market. We pay attention to 3 themes. First, outperforming sectors in up cycle. Second, those to the national strategies, especially new productive forces. Third, high dividend strategy in low interest rate environment. Based on our judgment about the capital market. For the [ SAA, ] we will carry out the following principles. First, asset 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 rationale structure, enhance the profitability elasticity. Second, return orientation. In the market fluctuations, we will pay attention to margin safety, grasp seize opportunities and bring sound investment returns to customers and customers. The uncertain 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 be keen to bring stable return to the market.

I'm from Shanghai Securities. I have 2 questions. NCI has established 3 pilot funds with peers. What's the actual result? Will you further increase your diversification asset allocation? How -- second question is how do you view AI's impact on the company? What's your future plan for AI empowerment?

Thank you for your question. Regarding 3 pilot funds, we started from March 2024, to now, in the past 2 years, we have achieved both social result and economic results. We have been fully carried out the central government decision under guidance of [ IRA, ] we responded to the requirement to enter the market. With peers, we established 3 pilot funds. Our total investment reached RMB [ 46.25 ] billion. The pilot fund is conductive to the asset liability management. About your second question about diversification of investment. This is our key strategy. We will based on the following 3 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 grassroot operations, we are confident, we all embrace AI. AI is not a vision of the future, but fundamentally reshaping the industry. The key in the transformation does not only make can -- make tailor-made pricing but also enable us to provide customized service and real-time responding, also enable the real-time warning and monitoring. In the past year, we have been impacted fundamentally by AI. In customers, AI make us know customers really.

Second, in operation, AI makes us reshape the service process. Third, for risk management, AI let us grow our risk bottom lines. We have awarded 12 authoritative roles from authorities about such as [ PBOC, ] China Academy of Information and Communication Technology. We have got business continuity management system certification and passed the DCMM [indiscernible] recognition. AI makes our service better, better the illustration system. AI proposed 258,000 proposals 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 improved our digital customer engagement capabilities.

For 2026, we will make measures in 4 areas. First, we will implement the 15th Five-Year Plan in technology. Second, in expansion of AI applications, we will build 7 virtual employees covering 7 areas through the large small model synergy, we would like to have digital productivity equivalent to 3,000 people, make machines do their own stuff and make people do more valuable stuff, 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 a cloud multi-chip infrastructure resource framework. Technology empowerment has been through every corner of corporate operation. We will maintain our strategic results aim to make AI more productive for the 15th Five-Year Plan.

I'm analyst from [indiscernible] Securities. Congratulations on your remarkable results in the asset and liability side. And for the asset, you have evident mark of sound performance. And I have 2 questions about liability in the past 2 years. Just now Mr. Chairman Yang and Mr. Gong have mentioned you have realized fast growth and high-quality growth of NBV. 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 NBV and NBV margin?

And the second question about Bancassurance 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 Bancassurance channel.

First, let's welcome Mr. Gong to answer the first question.

You've asked about the NBV growth and the drivers behind this. The main driver is to implement the high-quality growth philosophy in 2023 to 2025, we have realized 3 consecutive years faster growth. And for numbers, we can see 2026 is RMB 3 billion; 2024, over RMB 6 billion. This year is over RMB 9 billion. The growth rate is 25%, 107% and 57%. Those growth rates is hard one. 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 lay a solid foundation for long-term growth. And the growth of NBV 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 products.

Third is we improve the sales capabilities of our agent force. And from the recruitment, we emphasized the targeted recruitment, especially recruiting those high-performing agents and to increase the quality and quantity of the team. Since the team nurture, we can see we have more efforts to improve the productivity of our agents and improve the retention rate of the agents and help the agents to grow with our company. And the third is we introduced combo measures. And in the past 2 years focusing on the mass customers, the high video customer, we have introduced a series of service ecosystem and services.

And we introduced 5 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 emphasized the management of the business quality, and we focus on the management of persistent ratio. 13 months persist ratio rose to 97% and 25 persist ratio passed 93%, the highest level in the past 5 years, which has enabled the long-term and sustainability of our business and bring higher margin and NBV value to us.

And for the influence of transition to participating business and its impact on the NBV, 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 adequacy of promoting the floating benefit products. And also, we hope that the customers can share the development results and performance of our company.

For the NBV margin, it will have certain impact on the NBV margin. The NBV margin [indiscernible] is lower than the traditional product and pose certain challenges to the growth of NBV and NBV margin. And we are fully aware of that and are prepared of that. We have introduced a series of measures to improve the NBV and realize steady growth. First is we will further grow our business based on high business income last year, we 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 NBV growth. Through this, we want to reshape 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 and improve the core competitiveness of the Bancassurance channel in their channel distribution and productivity and to contribute higher to the NBV growth. And also, we will grow the Internet channel and establish a new driving force for NBV 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 NBV in 2026.

Thank you for your attention to the Bancassurance channel in NCI. In recent years, our bank insurance business has posted strong growth. It has become an important engine to drive the company's growth in size and value, especially for 2025. We elevated the Bancassurance to a strategic level and live up to expectations. It made good achievement in 2025. FYP reached RMB 37.93 billion, up by 52.3%. FYRP almost RMB 18 billion, up by almost 30%. NBV up by 110%. 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, Bancassurance channel FYP and NBV contribution has already made half contribution, enhanced its important role. Our bank insurance channel is rich in heritage and constantly revolving. We pay attention to both premium and value. We have accumulated advantages and move stable in market competition in 2025. Our differentiated competitiveness relies on stable progress. First, we made stable progress in customer management. We know for life insurers, our key competitiveness lies in customer management.

We built a comprehensive refined diversified product system, meeting customers' diverse needs for service and based on the whole life cycle ecosystem. We collaborate with banks upgrade experience for customers. For investment, we do play to professionalism, which laid a solid foundation for the transformation of the Bancassurance channel. For customers engagement, our insurance plus service plus investment model has built a foundation for long-term development.

Second, we made progress for channel cooperation. We have 56 bank partners include 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 user advantages and synergy, make 1 plus 1 more than 2. I was glad to see our ranking with large banks have been improved, active uplets up by 40%. We have seen the good result between asset and liability synergy.

Third, we have made stable progress in team development. Based on strong foundation initiative 2.0 initiative reform of building high-performing agent team with strong units third principle, workforce growth rate exceeded 20%. On the basis of that, our average per capita productivity rose by 17%. Our professional arm for the channel with the bank partners and toward winning results, which all win recognition from our bank partners.

Looking to 2026, the bank market will have new features. We have reached consensus on the following 3 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 Bancassurance channel and 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, [ IRA ] 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 to market concentration, massive effect will become significant. For those with more professionalism and higher capability manage asset liability management, we will grasp market opportunities and move towards high-quality development.

We believe 2026, China's Bancassurance market will mark on stable growth. For next year, we will grab opportunities in the market, give full play to the synergy of NCI, promote the insurance plus service plus investment model. We hope to promote stability through progress by the 2026 market. We aim to promote stability through progress. We need to do more in the following 3 areas. First, further deepen cooperation with banks.

Together with banks, we will together carry out fair articles in finance and for winning results. Second, strengthen technology empowerment, enhance team professionalism and comprehensive service; third, expand ecosystem, customer diversified whole life cycle protection needs. 2026 marks the 30th anniversary of NCI. We will keep up with the time and make our bank brand more brilliant, pay attention to the premium growth and value, contribute more to the high-quality development of our company. Thank you.

Let's welcome the questions from Xinhua News Agents.

First, congratulations on your sound performance in 2025. First is now we can see the macro economy and environment as well as life insurance experience profound changes and what are the opportunities and challenges facing NCI. And this year is the beginning of 15th Five-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. 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 remarkable year for NCI. In this year, we have fully our strategy improved the coordinated development model of insurance plus service investment and introduced the strategic main lines of customer center team as the foundation and the employee as the partner.

We have emphasized the reform and focus on the top-level design mechanism, business transformation, product service, investment management, talent, resources allocation, the operation technology and branding culture, et cetera, and to promote the systematic market-oriented and professional reform to release the constant dividend for us. And just now you mentioned, we've seen that in 2025, the total assets, premium income, EV, the net profit, shareholder reward has reached record high since we 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 have vibrant and full of cohesion and execution. And first, I'd like to answer the question about opportunity and challenges in the [5 ]-year period.

There's a huge change of domestic and international macro economy, and there's huge changes for the life insurance sector for its position and business model. We believe there are both exists, but the opportunities is greater for the first opportunities that we are embarked on a new journey for the Chinese modernization. The [ 5-year ] plan has put forward a great point for the high-quality growth and the plan for the modern industrial system and the independent technology growth and greater protection and better livelihood, those major tasks, 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 targeted areas of finance. Now the aging population has posted systematic changes of the risk protection demand, especially together with the transmission of the economy and the structure, we can see there's a greater potential and importance for life insurance to serve the economy and serve the targeted area of finance. We will provide the coordinated service from the risk protection, wealth management, medical care, the tourism and commercial insurance, et cetera. And also this provides great growth potential who grasp the opportunity in the pension finance will seek the next 10 golden years.

And the third opportunity is from the wealth management. The new guidelines of the insurance sector was included has set forth that the wealth management will be included into the main business of insurance, which is extended the meaning of insurance and there is a diversity demand for the wealth preservation and preservation and -- which was regarded as the deposit migration, and we are experiencing the golden opportunities and the period which will show greater advantage of life insurance, which can provide stable yield the reservation and succession.

And for the challenges, first is how can we respond to the low rate environment and the risk spread losses. And now the rate yield is in a low level and the financial exposure to the NSA 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 higher requirement for the operation and investment of insurers. And instead of company, I've always emphasized that we should have the responsibility of respect every premium and deliver sound service and secure every investment to deliver our commitment to customers of bringing the enduring protection.

The second 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 and provide the whole life cycle service covering the product, medical care, health care, et cetera. And we should also apply the technology and operation to improve their customer experience to further grow the development energy and EV embedded value of our company. And this is my answer to your first question. And about -- 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 emphasized 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 hold 3 large-scale seminars to discuss the strategy and conduct a series of research and seek opinions and suggestions from our whole system and introduced the coordinate development model of insurance plus service plus investment practice of -- practice large insurance philosophy and build a strong and we will strive to build the leading insurance sector with life -- with insurance as the core.

And we have formulated our general master plan and over 10 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 and 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 subsidiaries. And in the next 5 years, the blueprint is clear and specific. And as a company who has a rich heritage and are aspirational about our future, we have accumulated many development foundations and premises. For example, we have a strong asset and adequate solvency. And also, we have a nationwide distribution channel and institutions. We have a strong investment capability and asset matching liability management. We have the talent and excellent brand and culture. And next, we will fully give full play our advantage and to bring the blueprint into a reality.

And in the next -- and realize a blended development in the next several years, and we will focus on the 4 areas. First is to practice the strategy of customer-centered to improve the competitiveness of life insurance business. And this is also important direction of experience in the past 3 years. And in the future, we will integrate those philosophy into all areas of our product. And in terms of product team service, operation and 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'll stick to high-quality and cost-efficient service and bring more friendly 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 game. We will try to lead the market and improve their sense of game. 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 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 life 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 main line to take effort to increase the organizational development. We have upgraded our fundamental law, our system-based operation to build a WLC training system and increase the volume and productivity of our agent team.

And also, we have nurtured a series of star agent and to create a specialized large-scale and high-quality entrepreneurial agents, and we will build individual insurance and dual engine growth model for channels, and we have a strong foundation and we will further seek the opportunity from the policy of aligning fee experience with assumptions and migration and accumulation of people's wealth, and we will improve the cooperation with banks and build stronger Bancassurance outlets and team to improve its volume and value contribution and to be a top performer at all aspects, and we will strengthen the investment in technology, including AI and big data and to promote its integration with the team product service investment and compliance, and we will upgrade this strong foundation project to 3.0 version and to grow 1,700 subordinate entities of our company. And through our sustained and persistent efforts, hopefully, with another 3 years, we can build a stronger foundation with vibrant and strong competitiveness. We have 1,700 subordinate entities. These are the foundation for our company.

And the third is we will follow the coordinated development of insurance plus service plus investment to provide comprehensive financial service covering whole life cycle of our company. And this is key to our comprehensive development, but also critical to deliver our commitment of bring 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 for the service and we will optimize and improve our service ecosystem covering 10 areas, including medical care, health care, financial, entertainment, culture, et cetera, and to create excellent medical care, health care engine, travel and we should 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 wealth management to meet diversified needs of them and to create a new curve for our growth. And for the investment, we 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 of providing enduring protection.

It's easy for insurers to provide service for 1 or 2 years. But providing enduring protection is in essence and key to the life insurance and the life insurance needs to have enough capability, strength fund to cash out and to deliver the commitment to the customers. So we are determined to deliver this commitment. It's easy to give protection for 1 or 2 years, but it's not easy to deliver enduring protection for decades. So we need to accumulate strength in terms of our fund. And comprehensive strength and to have strong investment capability, the management team of the company in the past 3 years emphasized a lot about the investment capabilities. We can see the investment yield and return has increased a lot in the past 3 years.

We believe our asset is the asset of the time. And now the investment of insurance is shifting its priority from the traditional bank real estate and asset to the investment in the equity and technologies as well as the new productive forces, we will seek the opportunities in the 15th Five-Year Plan basis of the investment in the fixed income assets, we will impress the investment in the equity asset, 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 the 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 life cycle of the customers. And first, we will stick to inform innovation to build innovative NCI. We will bring the reform to the end and to follow this medical professional and market-oriented reform and to promote the innovation in terms of our philosophy, system management pattern, the operation model, product service, talent, data and technology as well, et cetera, to the barriers to that finding our development to play the full advantage of coordinated and NCI to further release the dividend of reform, and we will create a 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 product committee of NCI and with the joint efforts of our whole system in the past 3 years and with 3 years reform, we are more proactive in serving the real -- the general picture of national development and the comprehensive strength of our company has realized breakthroughs after 3-year effort and the reform, we are more proactive in our effort serving the national development strategy.

We have a stronger foundation for a better environment for our future development and especially a series of development and reform measures and results has bring us greater [indiscernible] 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 subordinate entities from -- even 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. And we will try to deliver the corporate culture of customer first, striving as foundation open and inclusive and excelling excellence and try to seek excellence and be innovative and to build enterprises with our pursuit of care and excellence, and we hope to build a century old enterprises with strong condition and trustworthy to customers.

And this question is an excellent question. This year, we will -- this year is the 30th anniversary of our company. And in the past 3 years, we have hardworking and dedicated efforts to seek growth for our company. And we will implement and practice our corporate culture in the 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 and serving the Chinese monetization. This is my answer. Thank you.

My question is regarding investment. Mr. Yang just mentioned that NCI has attached great importance to investment that regulator has encouraged insurance company to enter the capital market. We noticed NCI has increased 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 strategy in our active asset in overall portfolio. We are confident of the China's overall capital market development. We will further 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 capital market investment participation.

Second, for your question, we have the 3 following considerations. First, we will make diversified asset allocation, including industry diversification, the allocation between A and H share market. Through portfolio, we reduced portfolio's overall sensitivity to any single market. Second, we need to focus on our own investment abilities in the past 3 years under the new leadership, we have great importance to the investment research abilities. From top to bottom, we enhanced 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 asset combined with our transformation in liability side, we will make better asset 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 the individual insurance channel, and I want to know will you change your position of the 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 insurance channel as the core channel of our company has not changed and will not change in the future. Individual insurance 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 the 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 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, we hope to provide -- we hope to transition 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 to build our economic mode.

And for the scenario means we can show the service ecosystem 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 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 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 solely sale of policies into the model of providing comprehensive solution to our customers. And hopefully, we can build a professional arm 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 service in services, establish 5 service brands. I would like to ask what are the actual contribution 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 conductive to the business performance and the 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 [indiscernible] and some very competitive service benefit products, which embodied the product service philosophy. This helps build a better brand, achieve better results for empowerment.

Second, regarding customer benefits, we have 5 service brands. All of them achieved upgrade in 2025, which make us more competitive with peers. In order to have better customer experience, we accelerate layout in a number of areas, be it education of the care communities, which make us more attractive to customers and a strong tool for the agents to sell policies. Our President just mentioned for innovative channel agent empowerment, we believe our service empowerment has achieved some results. Services have been quite welcomed by agents. More agents have become more skilled in comprehensive development.

Those agents benefit from the improvement of service trend. In the past year, under guidance of the new modern marketing philosophy, our product and service innovation have brought actual contribution and 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, company has maintained adequate solvency. Comprehensive solvency margin ratio was above 200% and the objective pressure from the sustained downward shift from 750-day moving average treasury 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, strengthen external replenishment. Third, optimize asset allocation structure, maintain a balance between asset return and risk and capital need. We are confident to maintain the solvency 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 tools. We deepen professional market-oriented systematic reform and strengthen to deepen our core business, achieved solid progress in high-quality development. Gross written premium, net profit to total assets have hit historic highs. [indiscernible] investment value has been enhanced. We improved our information disclosure mechanism, making more quality and high transparent, do a good job with investor relations, interacted with capital markets and retail investors smoothly through annual results announcement, roadshows, et cetera.

We disclosed our operational information. We attach shareholder returns. In 2025, we again issued interim cash dividend. Combined with final dividend, our total dividend amounted to RMB 8.4 billion, up by 7.9%, hit historical highs, investors share company's business performance. Our share stock price rose by 46% and 150%, respectively. Our total capitalization surpassed RMB 200 billion 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.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]