Agricultural Bank of China Limited

Ladies and gentlemen, good afternoon. I'm the President of ABC.

Welcome to the annual results announcement of ABC. It's a great pleasure to meet with the friends, online, offline investors and analysts and friends from the media.

I'd like to take this opportunity to express my appreciation for your support, trust and interest in the development of ABC. With that, I'd like to present to you the management of ABC.

Mr. Lin Li, [indiscernible] Vice President of ABC and Mr.

[indiscernible] Vice President of ABC and the Board Secretary, Mr. [indiscernible].

And some of the senior management are participating from a meeting online. With that, I'd like to present to you the business performance, business strategies and the outlook for 2026 of ABC.

In terms of the business highlights, which you are interested in, 2025 is the last year of the 14th 5-year plan. It is a year for the new progress for ABC.

In the past year, we guided by the thought on socialism with the Chinese characteristics and strengthen overall leadership of third party and implement the relevant decisions, arrangement of the CPC Central Committee and the State Council, deeply practiced the political and people-oriented nature of financial work and firmly grab main line of preventing risks, promoting high-quality. Development, made overall efforts in our aspects, providing more powerful and effective service to the real economy, achieving steady progress in business, achieving steady progress in business operations with the high effective service, main characteristics of our business, our steady improvement and steady progress in the business operations.

First, stable profits, ABC's net profit and operating income continue to maintain a double-digit growth, reaching RMB 292 billion and RMB 725 billion, respectively, a growth rate of 3.3% and 2.1%, respectively. Compared to first -- 3 quarters, growth rates increased by 2 bps and 0.1 points, respectively.

Net NIM, 1.28% among topping the peers and average return on total assets, 0.63%. Weighted average return on net assets at 10.16% with a capital adequacy ratio of 17.39% with excellence of our business.

Total assets reached RMB 48.8 trillion with a growth rate of 12.8%. New loans and financial investment in local foreign currencies totaled RMB 4.7 trillion.

In sensitive of economy is a leading industry and the loan growth rate was 8.9% liability, business continued to maintain a good development with a deposit growth rate of 7.7%. An average daily increase in RMB deposits ranked first among the comparable peers.

Daily deposits is consistently improving and duration of local foreign currency deposits in the end of last year was 0.58%, best among the comparable peers. We are the only bank to achieve a positive growth in RMB loans for 7 consecutive years with high-quality loans.

NPL ratio of domestic banks declined for 5 consecutive years and further decreased by 3 basis points in 2025, remains a relatively low level of 1.7% -- 1.27% industry. And provision -- the special mention loan ratio, 1.39% and overdue loan ratio 1.25%.

The difference between the NPL and overdue loan ratio was registered a negative growth and which was also the only bank in comparable peers with exhibited a loan ratio lower than the nonperforming loan ratios. ABC loan balance is continued to above RMB 1 trillion, an increase of RMB 39.6 billion over the previous year.

Provision coverage ratio was 292.5% with both indicators of the balance of loan provision and provision coverage ratio ranked among the first among the comparable peers. The fourth return is very high.

Since its listing in 2010, considering the comprehensive return of stock price increase and the dividend, the annualized average returns of investors in A shares and H shares reached 12% and 10%, respectively. In the next 3 years, that is from 2023 to 2025, and it reached to 48% and 41%, respectively.

In terms of dividends, the Board of Directors proposed a distribution in final dividend for 2025 with a rate of RMB 1.3 per share and tax included. Inclusive together with the dividend already distributed in the range the total dividend of the whole year amounts to HKD 2.495 per share and RMB [indiscernible] per share tax included.

Dividend payout ratio was 30%. We'll have a more resilient and more sustainable development.

Last year, we did the work in the last following 5 aspects. First, we stick to our main businesses that is providing service for the agriculture, that is agricultural rural areas and farmers.

We consolidated the foundation for business development and improve the quality and efficiency of providing service rural-related areas and build a differentiated competitive advantages and the loans from the country level regions balance reached RMB 1 trillion for 4 consecutive years and the balance reached RMB 10.9 trillion, and the balance accounted for more than 40% of the total loans. And the balance in the county levels has doubled during the 14th 5-year plan period.

And deposit balance was 14.3 trillion, an increase of RMB 1.23 trillion over the end of the previous year and contributed more than [indiscernible] to the increase of deposits of the whole bank. Specifically, our channels for serving clients have been further improved among the 22,800 branches of the bank, 56% are located in county-level cities and rural towns or townships.

ABC is only a large state-owned bank with a full coverage of county-level outlets. In recent years, we have further shifted the focus of our service to the grassroots levels existing the reach of our services continuously improving, completing them.

And we have [indiscernible] 61 services, namely our physical outlets, self-service machines, mobile banking, rural service stations, mobile service, [indiscernible] and remote banks to form them into one, which continuously enhance our service capabilities to provide service to every villages and household. And last year, we moved another 179 outlets to townships built 1,742 rural service stations enrich our product shelves.

And also, we have also made great efforts to build a product and service system to 10 major financial areas, including green finance and targeted property, alleviation finance, innovated and promoted inclusive products such as agric park loans, technology loans and professional farmer loans specifically serving the differentiated diversified financing needs of agricultural areas and farmers. And we can develop -- we have developed 43 products across all industries and 208 regional characteristic products and dedicated products to cover key areas of rural revitalization.

By leveraging technological means, we have continuously optimized the loan application process for farmers, actively promoting on-site and remote work mode, further enhancing the convenience and accessibility of rural financial services with the balance of the reaching RMB 1.84 trillion. Fourfold increase during the 14th 5-year plan period.

And grain and important agricultural products have been increased. Long industries [indiscernible] road development and related fields grew by 20.3%, 19.5% and 9.6%, respectively, and 832 property stricten counties and 160 key counties for rural revitalization have seen faster loan growth than the average growth rate of the entire bank.

Second, we sticked to the essence of finance and building new advantages in business development by implementing national strategies and serving the rural economy. We insist on serving the real economy as our fundamental purpose sees the trend of new and old driving forces transformation and industrial upgrading, continues to optimize allocation of financial resources while serving the high-quality development of the rural economy also strive to promote our own high-quality development.

In 2025, the loan balance of ABC reached RMB 27.13 trillion, an increase of RMB 2.23 trillion over the end of the previous year. Among them, personal loans, inclusive loans and private enterprise loans took the lead exceeding RMB 9 trillion, RMB 4 trillion and RMB 7 trillion, respectively.

Our financial investment was RMB 16.3 trillion, an increase of RMB 2.47 trillion over the previous year. We made every effort to serve the stable investment and consumption with the supporting of financing were too heavy, that is implementation of national strategy and the key areas in ensuring national strategy projects.

We also are going in the front and the projects are ranked among the best in the comparable industry, increase of growth rate of the consumer loans were also ahead of the peers. Personal consumption loans, including credit cards, have a growth rate of 9% and the balance reached RMB 1.45 trillion.

We continue to strive the Five Priorities of finance, promote more financial resources, invest in the productivity, green development, inclusive finance and provide loans to the SMEs. Other key areas was strength in the key areas and weak claims.

The balance of the technology finance loan, green finance loan, inclusive finance loan reached RMB 4.7 trillion, RMB 5.93 trillion, RMB 4.35 trillion, respectively, growth rate of 20.1%, 18.7% and 20.9%, respectively. A number of inclusive known clients ranked the first among comparable peers.

Total supply of inclusive finance is the largest with the widest service coverage, further consolidating the leading bank's position with the strongest sustainable development capability. In the field of pension finance, the number of physical and electronic social security card users ranked first among peers and the number of clients and the amount of individual pension service are also among the best in the comparable peers.

The loan with the pension industry reached RMB 23.16 billion and were 108.5%. We actively serve higher level of opening up, introduce a work plan to stabilize foreign trade and investment active supports the cross-border use of RMB and helps to diversify the trade markets and integrate domestic and foreign trade.

Third is to focus and put the client first, expand the new space for business development while enhancing client service capabilities. Clients are the foundation of our bank.

We always take client development as a fundamental and strategic task. We will press ahead with the project to expand the client base, improve service for corporate clients with a group and tiered management personal loans, improve the service model driven by digital plus model and continuously enhance refined and comprehensive client service.

Client base has been expanding, reaching 896 million for personal clients and remaining the largest in the industry. Nonbanking -- nonbank financial assets on AUM for personal clients amounted to RMB 24.7 trillion, an increase of RMB 2.4 trillion and end of previous year with 13.29 million corporate clients, an increase of 1.16 million clients from the end of previous year and ranked among the top in the peers.

We had 609 million personal mobile banking clients with over 276 million monthly active users and over 292 million monthly active users. Our mobile devices maintained industry-leading growth rates on both metrics.

The quality and efficiency of customer service continue to improve with a focus on better meeting customers' financial needs. We continuously enrich and expand our product offerings and portfolios in areas such as deposit credit, wealth management, strengthen service, synergy between commercial banks and investment banks and domestic foreign currencies, financial and nonfinancial service and advancing rural service project, we have been steadfast in promoting customers' rights and interest, making our customer service more diverse and personalized.

We have strengthened our professional service capabilities. We have improved our employee training system, provided classified professional training to strengthen the team on wealth management and providing solid support for client service.

Our total number of wealth management advisers have reached 119,000 increase of 6,000 from the end of last year. Fourth, we have deepened the reforming and innovation by deeply integrating business technology data.

We have created a new impetus for business development. We have actively embraced the new round of technological revolution, deeply advanced construction and smart banks, intensified data empowerment and AI applications striving to transform technological innovation, a key variable into the greatest increment for high-quality development, making the application base for technological innovation more solid, accelerating the building of AI plus capability systems such as data technology, security, providing strong support for the large-scale and inclusive application of AI, making the approach of digital operations more mature, effective reducing the burden and workload empowering grassroots outlets become more significant.

First, strengthen bottom line thinking and thickening and strengthen the safety cushion and buffer for business development. We also take risk management and control as our longstop task and continuously enhance professional capability in building risk management serve the ballast for maintaining financial stability.

We continue to improve the comprehensive risk management system, strengthen forward-looking risk identification and enhanced risk disposal response in key areas and consolidating foundation of internal control and compliance management. And third, an outlook for 2026.

We have confidence from 2 sources or aspects. First, the economic performance -- macroeconomic performance is stable and growing, creating a favorable macro environment for the development of ABC.

The outline of our 15th Five-Year Plan have provided a guideline for our development. And in China's economy is has a solid foundation with many advantages and a strong resilience and long-term positive support conditions and basic trends with great potential have not changed.

With the implementation of the supporting measures of the 15th Five-Year plan are gradually implemented, the economic growth rate will continue to maintain within a high reasonable rate. And we will continue to have the strong foundation.

This has led a solid foundation for us to make further breakthroughs. Over the past 5 years, we have thoroughly studied and implemented General Secretary Xi Jinping's important expositions on the financial work, and we have actively pursued this path of financial development with Chinese characteristics.

And we have also expanded our product and service quality and also optimized our team building capacities and also cemented our risk control efforts. This has given us a very good starting point.

Dear friends, ABC's defining feature is agriculture. This year marks our 75th anniversary.

During the past 75 years of ups and downs, we have always been resonating with our national strategy and also standing in unity with billions of customers and sharing value with broad investors. 2026 is the first year of the 15th plan.

And the new era calls for new responsibilities and also the new journey requires new actions. ABC will continue to strengthen our party leadership and uphold a correct view of achievements.

We will continue to lay a solid foundation and contribute to the starting chapter of the 15th Five-Year plan and create more value for shareholders, customers and investors in all sectors of society. Next, let's head into the Q&A session.

I would like to invite the Secretary of BOD, Ms. Liu to be the moderator.

Now the first question, please, on site. lady on my left, first row, please.

I'm from Xinhua News Agency. After hearing the introduction, we can see that even though the overall external environment has been quite complicated, but ABC has reaped very good operating outcome and especially in the capital market, I'm just wondering what is the outlook of ABC in next year, such as in NIM and also in the net profit?

What are the main driving forces?

Well, I will take that question. I have just shared with you in 2025, even though we have a very complex business environment, our revenue growth has remained resilient and also operating income has maintained positive growth for 2 years running.

Our net profit has also been maintaining positive growth as well. And also, it is now on an upward trajectory for better growth.

If we look this over the long term, the performance or the financial performance of ABC is quite good and also remarkable. Our net profit growth has been leading the industry for 6 years and operating income has also been leading among our peers, creating new historical highs.

And this has shown the growth and the bonus of the market. And we believe that the 15th Five-Year plan has given us even more confidence.

I have just shared with you that the senior management is quite confident about better operating performance in 2026. So from the performance of the first 2 months of 2026, where operating income or overall operations have maintained stable growth and also positive trend.

Our physical loans increased by RMB 1.1 trillion, achieving a year-on-year growth and NIM has -- or say net interest income has also turned positive year-on-year, which is an inflection point in the first quarter. This has further confirmed that our operating income will continue to be put on an upward trend, laying a solid foundation for the profitability across the entire bank.

In the next phase, we will keep our strategic focus while providing better financial services. We'll continue to coordinate our pricing strategies while deepening our efforts to drive down cost and improve efficiency and continue the current solid momentum, and we will focus on the following 3 aspects.

First of all, we will continue to drive the positive growth of net interest income, and we also strengthen our efforts to make sure that we have a positive growth in net interest income. In terms of scale, we will continue to issue more loans and also contribute to the real economy, and we will also optimize the structure of our assets and also strengthen refined management and improve the marginal returns of the assets.

We will continue to consolidate our customer base and flexibly arrange our next efforts in driving down cost of deposits. And secondly, we'll continue to expand the growth space of net interest income.

We will leverage the consumption policies and try our best to satisfy the diverse demands of our customers and seize the opportunities of the capital market and amplify the service supply for wealth management products. On the other hand, we will also strengthen our analysis of the market and flexibly determine on our trading or transaction strategies as well as the allocation of different categories of assets.

And thirdly, we will better control risks and cost to better coordinate development and security and ensure that we put credit risks under control and try our best to drive down risks and cost. We will also strengthen our intensive and refined management model to reduce nonessential expenses.

Anyway, we will try to achieve higher profits at better cost. So we are fully confident about the performance in 2026.

So much from me.

Thank you so much, President Wang. Next question, please, on the right, please.

Thank you so much senior management members. I would like to ask a question about loans.

In 2025, the credit loans has increased pretty fast. And in retail and country level loans, we have seen very good growth.

Could you walk us through the plans or, say, the growth target for credit loans in 2026? And what are the key areas that you will focus on?

I will continue to take your question. In 2025, we have actively implemented important major strategies at the national level.

We have aligned ourselves with demands of the real economy and the overall volume of loans has shown better structure and also bigger volume. In terms of the total amount, I've shared with you that we have a total of RMB 2.23 trillion newly added loans.

And in terms of structure, we have invested more in agriculture-related loans as well as rural revitalization services. And we have also injected greater momentum into 5 priorities and improving quality and efficiency.

This year is the starting year of the 15th Five-Year plan. And in the government work report, we have a GDP growth target of 4.5% to 5%.

And we also want to build a strong domestic market to achieve technological self-reliance and also [indiscernible]. There are a series of supporting projects as well as measures for rural revitalization.

I believe that these are opportunities for commercial banks in credit placement. We will maintain our current intensity of credit to support the real economy and the average growth rate would be roughly the same as last year in the first 2 months of 2026, where economy is now rebounding.

So we will seize the opportunity to focus on our national major strategies and credit deployment or credit placement has also achieved a very good start. By the end of February, our bank-wide physical loan growth has achieved year-on-year positive growth.

And also, this is a sign of good momentum for sure. Our green technology where agriculture-related loans have registered positive growth, maintaining at average levels for comparable peers.

And -- in the future, we will continue to highlight the agriculture and rural areas and also farmers-related fields. We will focus on improving the large area grain yield improvement and also ensure that we produce new quality productive forces and strengthen financial services for links across the whole [indiscernible] field chain, focus on specialty industry and key sectors and also big customers and important projects.

We will make it bigger and better, especially in financial services, such as the issuance of farmer loans to ensure that we have stable growth in loans in 2026. And secondly, we will focus on 2 different areas such as domestic demand.

We will continue to lend more support to major projects on transportation and energy, ensure that we have supporting financing services for a new round of policy, financial tools or instruments. We will also align our efforts with traditional consumption models and also emerging new consumption models such as green consumption.

And we will implement the physical policies to maintain a leading growth momentum for consumer loans. And thirdly, we will support the construction of a modern industrial system such as we will sort out the customer list and then cultivate new quality productive forces, step up or speed up our technological innovation to support or contribute to emerging industries development.

We will also focus on industry green transformation, green development, low carbon and green transition of energy and other key sectors. This will mean that we will improve the credit placement in green sectors and also the proportion of green loans.

And fourthly, we will focus on inclusive SME loans and establish a work coordination mechanism. We'll continue to increase the support for SMEs and coordinate development and security, consolidate our leading advantages in inclusive finance and make sure that we cater to the demands of our residents in education, health care and so many others.

Thank you so much, President Wang. Next, I would like to ask for the gentleman on the right, the lady on the right for a question.

I know that commercial banks are under pressure, but ABC has maintained very stable asset quality. What measures have you taken in order to manage and prevent risks?

And I would like to know about the NPL formation rate as well as your key focus in both retail and also corporate sectors.

So Vice President Lin, please take the question.

Thank you for that question. From the perspective of a commercial bank, in the future 2 to 3 years, I think that the watershed should lie in the ability of risk management because the products can be very homogeneous and also the services can also be quite similar.

And even AI models can be pretty much the same in the future, but there will be definitely differences between commercial banks in risk management and provision efforts. So that's why we think that we should do a good job in risk provision and management.

For ABC, what did we do in that regard? Well, I think that it can be summarized in the following points.

Generally speaking, it can be summarized as really doing hard work and getting our feet on the ground. ABC has placed risk prevention and management as an internal theme of our financial work.

And we have been building our strong foundation and also cementing the current base for risk management. We have been quite prudent in our operations.

We think that we can't say that the commercial banks are too careful or too much careful in their operations. And also, firstly, we have highlighted the role of quality and efficiency.

And fourthly, we have to be problem oriented. And fifthly, we have to uphold our bottom lines.

By integrated risk management and control and also with a forward-looking reflection capabilities, we can proactively control our risks and ensure good asset quality overall. And just now President Wang has shared with us the overall business or the overall situation at ABC.

In 2025, our NPL ratio stood at 1.27%, down by 0.03% compared with the end of last year. The NPL ratio for 5 years running has been on a downward trend.

Well, the special mention loan ratio was 1.39%, down by 1 bp from the beginning of the year. Overdue loan ratio, 1.25%, maintained the lowest among the comparable peers.

And the difference between the NPL and overdue loan was always at negative. And also, we our credit balance of RMB 1.057 trillion, and we believe ABC is the only bank with a credit balance exceeding RMB 1 trillion.

And from a prudent perspective, our credit provision increased by RMB 39.6 billion. The provision for loan loss ratio reached 292.55%, maintaining ABC at a strong risk resilient position.

And in terms of the nonperforming loan formation, the formation ratio of corporate loans decreased compared to last year and the NPL ratio of inclusive retail loans has increased, compared to last year. NPL ratio of the whole bank for the whole year was 0.89%.

We do believe the asset quality is well under control and similar of last year. And also the formation ratio of NPL has been maintained below 1%, which is relatively quite low.

For the loans for the SMEs balance reached RMB 3.93 trillion, an increase of RMB 700 billion from the year beginning and NPL formation ratio, 1.54%. For the inclusive finance or the credit cards, including rural households, which is at the key of our risk control.

So if we also incorporate them, our -- the balance of our retail loan balance loan was RMB 9.26 trillion, an increase of RMB 448.5 billion from the year beginning with NPL ratio of [indiscernible]. The main indicators of inclusive retail loans maintain leading position among the peers.

It is worth notable that credit card business in terms of serving consumption, boosting development and advancing quality and quantity has performed quite well. And also our credit card loan incremental increase and asset quality are the best among our peers.

And also, we apply the innovation and also the systematic thinking and relative philosophies to build a new management measures for the credit businesses and also further build a comprehensive risk management system for the inclusive retail business, we have done in the following 6 aspects for inclusive retail business. The first one is to build a stratified marketing system and also to promote or roll out the new business models and also have the top-level design of the head office from the provincial branch, and we have the sandbox operation at the city level branches, and we have the template of marketing for our outlets and branches focus on local conditions, industrial clusters and professional markets and also have a county-specific system.

And also we draw a financial ecosystem map or road map adapting to the needs of different areas, adapting to the local conditions and also the formulating credit plans. We screen high-quality customers, and we have SOP so as to change the [indiscernible] , inefficient and a passive customer acquisition model.

And we built an active batch based and a source customer acquisition business development model. And second, we adhere to the idea of minimization or focus on the [indiscernible] long accounts and also match the credit line with the customers' demands and also expand our business while also have system control so as to enhance our serviceability or quality to the small- and medium-sized customers to enhance the accessibility and coverage of our financial service.

While at the same time, we give up using a simple model to measure or calculate the credit line so as to put our risk within our risk tolerance. And we take the households at our center or as a priority and also build a new vision of management.

We have a unified credit approval and also credit management -- to be more specific, for the same family business for the SME legal persons and business owners and the relatives or friends or in the personal or individual business, consumption and credit card businesses are putting under the same umbrella of management. We have a cross-line and cross-product coordination so as to effectively prevent the under-standard eligibility of the customers for certain products because for some of the products, we have the differentiated threshold for the eligibility of the customers.

So we also prevent the overlap of the credit granting, but also prevent the risk of excessive credit granting. Fourth, we integrated online and offline businesses.

We leverage on the models or the digital tools, but we are not over relying on the digital tools. We insist on the principle of enhancing people's awareness, understanding and also have on the spot investigations for due diligence, while at the same time, we enhance businesses, tax, credit history, private fund as well as other third-party data to do the customer or KYC business.

We have a cross check of the authenticity of our customers, so as to ensure that the fund they use is for the real purpose for business. And we are not just following the trend.

We also used open cloud to process and analyze the data in an automized way and to generate the KYC report so as to make our credit approval and more efficient and also have a process and procedure constraints and build a business mechanism. What is key here is to separate the approval from the credit granting.

And also we separate the roles because impressive for some of the inclusive retail loan granting, the approval and the lending are put together. But in our practice, we insist for the online SME inclusive loan, we separate the amount of the business and also we separate the roles in the -- between the approval and the loan or disbursement, so as to form checks and balances in the process of credit granting and we also make up for the shortcomings of the decisions for the models.

And also, we prevent the one people have to save for everything. And we say no to any form of intermediary person participating in the marketing or doing the -- handling the business.

If some of the illegal or inappropriate intermediaries or agencies participate in that they will bring a lot of shock to the business of the bank. Sixth, we empower on the technology and also to enhance our risk management capabilities empowered by technologies, meaning on the model process identification and system real-time early warning, we use UCR recognition and GPS positioning and also cash flow clearing and AI intelligence and other technologies to do the improved ability of anti-fraud and -- and also rely on the big data or large language model, we focus on new loans, professional debtors or the intermediary loan companions and other risk characteristics, consistently optimizing the risk control model and during -- before, during and after the lending to improve the accuracy of our early alerting, so as to ensure the stability of our asset quality, and we will further enhance our risk management and mitigation in a more systematic way in inclusive retail business.

Moving forward, we firmly establish appropriate attitude to our performance and do our own job well for the right purpose. We will stick to a prudent and steady risk appetite and also put the risk prevention and management as a priority.

It is very promising that asset quality will be -- continue to be stable and maintain a relatively leading position among our peers. Why we are so confident?

First, we have a more profound and comprehensive full-fledged risk management control system, to be more specific, we'll have credit management. We have online/offline coordination and separate the credit approval and credit branding business.

And we also have a unified credit management and also to enhance accountability, we use the smart tools and to have a unified monitoring and supervising. In Chongqing, ACB set up a head office level digital risk management center for the purpose of enhance our monitoring of the early warning identification and also early check and dispose of the credit risk of inclusive retail business and also to enhance our management overdue loans and enhance the disposal of NPAs and also enhance the notification of the overdue or when the loans come due.

Here, we enhanced the smart disposal platform 2.0 version and also to enhance the dispatched transfer or disposal of NPA, enhance the efficiency of the diversified NPA disposal channels. Please rest assured, the inclusive retail loan are small, scattered or there are a lot of amount of them, but we will further make a health check so as to clarify and also have an order well-organized management of this type of business.

And also for the risk management of the key areas that has been further improved in terms of efficiency. In terms of the real estate loan by the end of -- as at the end of 2025, NPL ratio in the industry remain unchanged from the previous year.

And newly NPL has been decreased year-on-year. We'll continue to adhere to a household-specific policy and approach, project-specific plan and step up risk control for large clients focus on key links such as funds, assets, equity strictly managing the account presale funds and separating the operation from project funds.

And we'll use the 16 financial policies for rules and whitelist loan continuation. And also, we will enhance or we will provide our credit support for the high-quality or better housing projects and also will enhance the credit measures.

We will not expand our business or lendings in this area in a blend way and also use the policies to replace the implicit debts. And also we have to optimize the structure of the existing debt to lower down our risk exposure and also have a market-oriented rule-based and appropriate finance approach to increase our financing in these areas so as to safeguard the bottom line of not increasing the implicit debt.

And also, we will enhance our structures in a preventive way that is very important. And also, we will reduce the low-quality or inefficient customers, but at the same time, support the building of the modernized industrial system.

We'll focus on the structural risks, and we will take preemptive measures for the overcapacity. We will not do the evolution so as to ensure the credit quality.

The next question, please.

From Economic Daily. My question about wealth management, the personal customer is around RMB 896 million, which is leading among the peers and over the several -- past several years, customers have high demands on wealth management with the fluctuations in the capital fluctuation and also people have a demand of the capital allocation.

As Mr. Wang said, ABC rolled out a lot of innovative measures in wealth management.

Could you please elaborate more on the innovative measures on wealth management? And what are the plans moving forward.

Thank you for the question. Mr.

Lin, please.

Thank you for the question. So as an entity or a bond in connecting people's saving or household savings to the circulation of economy, there is a lot of room for us to -- or potential for us to tap into in wealth management.

This is an important measure to serve to boost China's strength in finance. Wealth management is an important part for the modern financial system.

By developing strengthen wealth management will help to cultivate potential capital increase the direct financing and also to enhance the efficiency and quality of the financial service to the real economy and the high-quality development. It also projected for people's well-being.

Next, it can also improve the residence income. Wealth management can expand their income generation channels and it can also get the public to participate more broadly in the capital market and then share in the fruits of economic development.

And thirdly, it is an intrinsic requirement for high quality development of commercial banks, wealth management features light capital, stable returns, and sustainability. It is an important path for commercial banks to transition from scale expansion to value creation.

ABC has been people oriented in recent years, and we placed wealth management business development as a very important priority, and we have deepened our strategy for integrated and 2-wing approach of retail development. And basically, it's all about customer development.

So the 2-wing refers to wealth management and digital transformation or transition. And with our forward-looking layout, we have a driven financial development system to cement the development for operating income.

First of all, we have upheld value-driven approach and also a people-oriented model. The nature of our management approach is to have an asset allocation with customer at the center.

We want to create value and also provide allocation service strategies. We hope that we want to strive to become a reliable planner or say, family, financial adviser for our clients.

And another one is comprehensive service capability. By the end of 2025, the personal financial assets across the entire bank has reached RMB 24.7 trillion.

During the 14th Five-Year plan period, the number has increased by nearly RMB 10 trillion, ranking ourselves at the forefront of the industry. If we look at the latest figures, we can see that is now exceeding RMB 25.4 trillion.

In terms of assets and liabilities, ABC's personal asset, deposits and also personal loan scale, all ranked first in the industry. So we have the most deposits, loans and also the largest number of customers.

So we should be a very big and preferred bank for a large number of customers. And secondly, we have optimized the asset allocation of customers and integrate that with advancing 5 priorities.

In that regard, we have created an agricultural pension financial service platform. And in ESG, we have made comprehensive breakthroughs crossing the RMB 100 billion threshold across different product lines.

And thirdly, we have achieved the breakthroughs on multiple fronts. In the past 5 years, we have seen that our LBM has currently reached RMB 3.65 trillion.

And also during the 14th Five-Year period, the total customer volume has increased by nearly 2 trillion. So all of this has put us also at the forefront of the entire banking industry.

The wealth management products in agriculture sector has also exceeded RMB 2.2 trillion, leading comparable peers. And more importantly, we have created over RMB 340 billion for investors.

We are also doing very best to satisfy our consumer demands and also insurance demands. In terms of premiums under agency, we have ranked the first among our peers.

ABC Life Insurance and also other institutions under ABC, have all maintained a leading position among comparable peers. We have also adhered to a reform-driven progress approach.

Wealth management and resource integration and innovation have all followed a similar path. So we have 896 million individual customers and also 22,800 outlets, and we also have very big advantages in channels and customers.

All of these have turned into the driving forces for ABC. First, we are dedicated to create a full spectrum of product portfolios to leverage the advantages of integrated operations.

We need to build a multifunctional portfolio or is a matrix that covers different diversified strategies, wealth management products such as trust funds, precious metal investments and more. Secondly, we have upgraded the market open platform.

We have to keep ourselves open to work with third-party institutions and improve our coordination and step-up management in scientific evaluation mechanisms, introduce quality resources from the market and satisfy diversified and customized demands of the customers. Thirdly, we have to provide full life cycle customer companionship at different stages.

We can ensure that we provide the right services such as wealth management and also family protection. Throughout the life cycle, we have to focus on developing comprehensive services for private businesses and in this way, we can also have cross-border wealth management and also so many other options to satisfy our customers diversified demands at multiple levels and also improve the accessibility and inclusiveness of our financial management services.

And thirdly, we have been persisting in organizational-driven efforts to forge wealth management service capabilities. We ensure that professionals under professional matters.

A professional team can improve our efficiency and core competitiveness, which is in investment research and customer service. First of all, we have created an open integrated professional research system.

We have also strengthened the group's investments source integration mechanism built a multidisciplinary expert team and gained market insights. With the forward-looking and culture of study progress forward, we have implemented a very sound strategy for research, product introduction, marketing support and asset allocation, evaluation and final review.

And we have also been insisting in reasonable expectations and qualified interactions. We know that for our wealth management subsidiaries, we require them to have a realistic pricing expectations.

We also worked with these joint venture financial companies, I would check their figures to ensure that we have the best delivery with our customers. This can help us to ensure that we have a sound interaction between customer and the market.

And on the other hand, we also need to ensure that our team is also customer oriented. There are many things involved in ABC's business and our unique advantage is, of course, Sannong or agriculture-related services, but internally, we want to really interpret this service brand as improving results every day.

It's not that we want to just do easy work or just shut out [indiscernible], but it is that we want to see improvements every day. And next, we insist on precision management and strengthen our structural optimization and capacity development.

We have -- already have professional compromising 119,000 customer manager and 6,000 wealth advisers. We have also focused on the Yangtze River Delta, Pearl River Delta and emerging potential areas.

We have implemented differentiated strategies according to local conditions, build benchmark. And also in a total of 500 branches, we have done so in private banks.

And also in some wealth management centers, we have definitely ensure that there is a tiered system for training to empower their training system and also service or professional service capabilities on the ground. Sometimes we can go at bottom up.

But other times, we think that top-down approach is also a very effective channel. Now we have 120,000 customer managers and 6,000 financial advisers.

They should be working like seeds and they are providing services across the bank and serving our customers with their expertise. And fourthly, we have to uphold a digitalization-driven approach and let wealth management be one of our growth engines.

By using digital means and intelligent approaches, we can ensure that we have online and offline wealth management coordination efforts and a multidimensional service network. On one hand, we can improve our online and off-line service efficiency and these digital means can also empower our business, and we will continue to advance this all channel convenient and intelligent platform building.

And we will also make sure that we improve our capacity for all whether around the clock responsiveness. We are also actively using AI.

We're applying in different scenarios. We have an employee, who is an AI model, and we will strengthen customer insights and intelligent layout as well as post investment companionship throughout the entire life cycle.

From the performance in 2025, we can see the great wealth management income has reached RMB 35.7 billion and financial management fee income reaches RMB 251 billion, and we should say that this is a very big resilience market. Basically, we have shown strong resilience in our business and also high market recognition and also, our business has maintained very stable growth with little fluctuations.

And many of our joint venture wealth management companies have proper expectations for their products. So we have talked so much about what work we have done and data and statistics.

At the end of the day, high-quality development should be an all-hands-on-deck effort, which involves not only counter managers and also customer managers and wealth management managers and consultants and advisers and even sci-tech personnel. Here, I would like to take this opportunity to -- on behalf of the senior management, express our heartfelt gratitude to our staff, who have weathered through many hardships and difficulties.

And with their expertise and hard work, you have been fighting right at the forefront. Thank you so much for your diligence and hard work.

Okay. Thank you so much, Mr.

Lin, for that very encouraging words. And next, I would like to invite next question.

[indiscernible], a financial analysist. I'm wondering about the situation in international business.

We are now paying attention to business going global and also foreign trade, especially the growth structure and also the overall layout with a new market environment and also new customer demand, ABC -- how will ABC support key foreign trade enterprises to go global? And how will this contribute to your operating revenue and also your efforts for high-level opening up?

Thank you so much for that question. I would like to invite President Dr.

Wang for a response.

Thank you so much for your interest in international business. ABC has been earnestly implementing the decisions and arrangements of the [ Party Central Committee].

And with that, we have been cementing the interplay between domestic and overseas market and optimize our cross-border financial comprehensive service system, the international settlement business volume has reached about USD 16,400, an increase of 8% year-on-year. And the international trade financing business volume has increased by 30% year-on-year.

The growth rate is still very impressive. So I think that, first of all, we have been helping or supporting businesses to go global.

In ABC, we have a presence in 18 countries and 21 overseas institutions, and we also have 1 joint venture bank. More than half of them are in building road countries and regions.

So this has aligned with our efforts to help businesses to go global. In 2025, we have continued to ensure that the interplay between domestic and overseas institutions is well underway.

Our interplay business has reached USD 118 billion, an increase of 13%, and we have seen the financing business of BRI countries has reached USD 340 billion. We will continue to focus on Sannong areas and ensure that this leading business in this area can go global, and we will also lend support to international corporation projects.

Across the year, the agricultural-related financing business has been handled for RMB 69 billion. And second, we strengthened our product innovation to support the development of our new forms and new models of trade.

It is safe to say that in recent years, the scale of the main players in the new forms and models for trade has been accelerated, becoming an important support for foreign trade. And in response to the new characteristics of many players in new forms and new models of trade, ABC has empowered with technology to innovate cross-border payment products and many branches have completed the registration with SAFE and obtained the qualification for direct cross-border e-commerce collection.

Scale of our direct cross-border e-commerce collection business ranks among the top in the -- among the peers. And third, we have strengthened implementation of our regulation or regulatory policies, and we have enhanced the level of cross-border financial service, the reform of foreign exchange business development is an important measure for the institutional opening up of financial sector of China.

ABCs continuously promoted the reform and foreign exchange business development, expanded its scope business volume and a customer base accounted for a large proportion of the whole bank approaching to 40%. The ability of promoting facilities and prevent risks has been further enhanced -- and also, we have supported the international use of RMB.

Cross-border RMB settlement volume reached RMB 3.82 trillion, an increase of 8.7% year-on-year. ABC will combine the relevant arrangements for expanding high-level in the 15th Five-Year plan period continue to enhance our support for the real economy on foreign trade and build a closed loop for cross-border financial service.

And to serve the high-quality joint development of the Belt and Road Initiative, and we will optimize the linkage mechanism at home and abroad, enhanced supply of cross-border linked products and strengthen financial support for key overseas investment projects and introduce a special work plan to support the development of the new land and sea passage in the West. We will also strengthen the service capability for settlement and exchange of small currencies with neighboring countries and we'll optimize the cross-border financial system service system, and support stable skill and optimal structure of foreign trade, improve the service mechanism for our customers' high-end certified enterprises and strengthen support for cross-border financial business and high-quality agricultural and rural entities continue to support foreign trade enterprise under the financing coordination mechanism for SMEs and carry out innovation and application cross-border e-commerce financing products, building diversified payment channels.

And third, strengthen the supply of cross-border financial services enhance the level of cross-border trade investment and financing. And we will further enrich the system of exchange rate risk management, products support SMEs expanding foreign trade market, and we will support the cross-border use of RMB in the rural economy will play a more active role.

So we will also provide a strong support for high-quality development of the entire bank.

And from [indiscernible] Asset Management, I'm [indiscernible]. My question is about inclusive finance.

In the presentation, you mentioned inclusive finance, inclusive finance as one of the Five Priorities of finance about China. It is also a highlight of the business performance of ABC.

Looking forward to 2026, how ABC will maintain the good momentum in inclusive finance for sustainable development .

Thank you very much for the question. I'd like to invite Mr.

Wang Dajun, Vice President of ABC to take this question.

Thank you very much for the question. Inclusive finance covering a lot of industries, covering a lot of households.

One of the Five Priorities of finance of China is also an important aspect of practicing or maintaining the political nature and people oriented nature of the financial work. By 2025, ABC has thoroughly implemented decisions, arrangements of the CPC Central Committee and the central government, deepened coordination mechanisms for supporting the financing of SMEs and also enhance the ability of our inclusive financial service in a comprehensive way.

We have promoted the increase of expansion and improvement of our inclusive finance. And we also achieved high-quality development and the quality and efficiency of providing inclusive financial service, mainly reflected on 3 aspects.

First, we are -- we have the largest supply of inclusive credit supply. As at the end of 2025, the balance of inclusive finance loan registered RMB 4.35 trillion increase.

And also, we have -- compared with the beginning of this year, the inclusive finance loan to SME RMB 3.93 trillion. And also this year, we reached or exceeded RMB 4 trillion.

The balance of -- the balance and also increase of inclusive finance loan are the first among the peers. And also, we have the widest customer service coverage -- as at the end of 2025, ABC's inclusive SME customer with the loan from the bank, we have RMB 5.24 million, an increase of [indiscernible] from the year beginning.

The total number and increase of the customers has been the first among the peers for 3 consecutive years. So we are providing the truly inclusive finance service.

Third, we excel in sustainable development capabilities, and we shifted from the digitalization. We are leading among the peers to do so.

The asset quality of inclusive finance loans are also leading among the peers. The evaluation from the regulators leading among the peers.

For 2026, as in the first year of the 15th Five-Year plan period, we will work on the following 3 fronts so as to ensure the inclusive finance business to maintain our good business momentum. To be more specific, first, we will make a good use of the policy tools of the country.

In the beginning of this year, relevant ministries of China rolled out the one package policy to support the coordination between fiscal and monetary finance, in particular, the fiscal subsidy for the SMEs and also the private investment guarantee plan that has brought new opportunities for the inclusive finance development. We will enhance the cooperation between the banks and governments, between the banks and the guarantee agencies, focus on new policy tools, optimize our business process and rolled out featured products and offers so as to lower down the cost of financing our SMEs and increase the convenience, so as to transform the policy benefits into the growth drivers for inclusive finance.

Second, we'll make a good use of the institutions and mechanisms. ABC will continue to give our role of the 3 Sannong or the rural business departments and inclusive finance department and taking advantage of the dual-wheel drive organized structure.

It is -- we are the only bank that has such kind of dual-wheel drive that is the cooperation between the inclusive finance department and the rural business department. And we will continue to leverage our advantages across urban rural areas with a large number of branches, outlets and extensive outlets coverages at the county level cities.

And also, that is also the uniqueness or the feature of ABC. We will continue to demonstrate or the mechanism advantage that provide us with the willingness, ability and also expertise and also the courage of provide credit service to rural areas or related businesses.

And also, we will promote digitalization in our inclusive finance. We have the iteration upgrading and further enrich and improve our -- the Huinong or agricultural bank E-Loan platform and also build [indiscernible] outlets and the inclusive finance E-Loan to build an ecosystem on inclusive finance and also roll out AI intelligent credit-related business and also consistently improve the digital risk control system.

And ABC on [indiscernible] is for this purpose. And also, we will solve with the problems of the asymmetric information in inclusive finance and also for the -- further enhance our risk control and management, provide a high-quality service with a lower cost.

And in 2026, ABC will continue to adhere to the general key of seeking progress for maintaining stability and coordinate risk prevention development and to serve people's well-being focused on major strategies, key areas, weakness, so as to ensure the high-quality development of inclusive finance business. I'll stop here.

Next question, please.

I'm [indiscernible] from the The 21st Century Business News, serving the rural revitalization is the positioning of ABC and also that is what ABC is good at, how ABC will enhance your competitive edge in providing service to the county level areas.

Thank you very much for the question. Yes, provide rural revitalization is our main business, and it is also our highlights.

And by the same time, it is a key focus area in our strategic development. In the past year, we stick to our main business and also to seize opportunity of the integrated development of the urban and rural areas provide financial supply or credit supply and also enhance our the quality and efficiency of providing service to the agricultural areas and country economy.

And also in the several aspects, first, with the contribution of county level for our average daily deposit and loan increment has been exceeded RMB 1 trillion. Proportion of increase increased by the 10.5% and 1.4 percentage points, respectively, compared with the previously with this better structure, balance of household loan exceeded RMB 1.8 trillion with an increase of RMB 337.7 billion or 22.4% and loans for key areas, green production rural industries, the growth rate of loans in these key areas is higher than the growth rate of all loans.

Third, better quality and better efficiency. NPL ratio in county level regions was very low with stable asset quality moving forward.

We will have the document from the 15th Five-Year plan and there are systematic arrangement for the rural revitalization by aligning our development to the national strategy. We rolled out 2026, 2 consolidations and 2 insurance of providing service to rural-related businesses.

One is to consolidate the proportion of the county level loan in our overall loan portfolio and also consolidate our advantage of providing service to the county levels. And also we ensure that we'll maintain the same intensity and also the over stable asset quality.

In the new year, our 2026 will continue to enhance the policy resource investment, enhance our ability of providing financial service. To be more specific, we'll do a good job well in the following 5 aspects.

The first, we will provide service to the major projects and county levels. The net growth of the country level loan growth will continue to exceed RMB 1 trillion.

In our businesses, in the agricultural-related business, we'll work with the improve the agriculture-related projects and national water networks and also comprehensive agricultural production capability and also taking the counties as a major vertical, we will provide service to the major projects and also have list-based service and supporting financing. In terms of the agricultural enterprises, we'll focus on the leading agricultural industries and also leading agricultural technology companies, providing full cycle financial service.

In terms of the farmers or farming households, we thoroughly carry out information finding or information collection for the farmers to expand the toolbox of farmers loans, try to have more than RMB 2 trillion of farmer -- RMB 2 trillion of balance of loans providing to farmers this year. And second, we'll further enhance our financial service capabilities, and we'll have 6-in-1 service systems, and we will also further promote relocation of inefficient outlets to townships, accelerating sinking financial service to more rural areas.

And this year, we'll strive to relocate 180 outlets to townships and also further increasing the development of agricultural assistance service stations throughout the combination of service stations, mobile service, further enhance our base financial service. And this year, we will build around 3,000 -- last year, we have already built around 1,700.

This year, we hope to have around 3,000 agricultural assistance service stations. And we'll innovate the innovative financial products and models for agricultural businesses, and we will roll out some new and diversified products and also use the smart bank tools in providing service to the rural areas for rural businesses and build have promoted the application of smart bank tools in the field of agricultural areas, farmers promote on-site plus remote investigations and build a system covering satellite, UAV and ground IoT and other agricultural data, enhance our support data supply capabilities for agricultural businesses.

And fourthly, we will ensure that this normalized financial assistance will be put at a prominent position, and we have already formulated a package of differentiated policies, and we will try to ensure that we lend targeted support or especially policy support to people who have just been lifted out of poverty and to ensure they will not return to their previous state. We will focus on national and provincial level rural revitalization strategies and projects support underdeveloped areas in carrying out initiatives and form internal motivation for these assistance projects.

And fifthly, we will ensure the compliance and risk management work of the country-level regions and ensure that we manage or prevent risks at the source and ensure that the loans will have a very strict risk identification and monitoring process and also a series of risk monitoring models.

Next question please. You may ask your question.

I'm from JPMorgan Chase and banking analysis. My question is about the bond market.

We have noticed that last year, the contribution of bond investment is actually pretty prominent. So what is your plans for this year's bond investment?

And also what is your judgment on the bond interest rate for 2026?

President Lin, please.

Thank you for the question. From the perspective of the overall operation and management, we attach great importance to the financial market.

And with our understanding about inherent loss of the financial market, basically 3 positioning. First of all, the level of the market and the level of the professionalism and also the level of talent that's 3 positioning.

And if we want to summarize this or the characteristics of ABC's financial market business, I think that it can be summarized in 3 key words. First, big; second, stable; and thirdly, good.

So first, large or big, it means that we are big in scale and stable means that we have been upholding prudent operations. So we are also very unwavering on that.

And the third point is good or good quality. That means that we have a pretty good outcomes.

And it is also sustainable in the long term. You are interested in bond investment business.

Here at ABC, we have been committed to serving the real economy. We focus on improving our capabilities and optimizing asset allocations and better promoting and controlling risks to achieve high-quality development.

You have mentioned bond investment has contributed a lot to the performance of ABC last year. I think that's inseparable from the external environment and also at the head office, the investment decision-making committee as well as the overall investment team have made a very good analysis on the market, and they have a very targeted and precise investment strategy.

Looking back in 2025. At ABC, we have done 3 things right.

First of all, with our strategic focus, we have cemented our investment foundation. While serving the real economy, we have improved our ability to make evaluations of the entire market as a core participator of the bond market.

The financial market managers of ABC has over RMB 10 trillion in bond assets. Therefore, we really value our ability to make macro assessment of the financial market.

And we have been adhering to national policies as the guiding principle and also the economic loss as our guidance. And we have been making proper evaluations of the macro policy curves as well as the dynamics of the economic environment, so that in the ups and downs or fluctuations of the market, we can identify opportunities and effectively address up to the place to manage and prevent risks.

We have to seize the opportunity of interest rate fluctuations and to really understand its reference. And this ups and downs and range fluctuations.

Take, for example, before the interest rate rebound window, we proactively compressed or duration and to cushion against the risk of rising interest rates. With our professional capabilities in practice, we can effectively stabilize market expectations.

And secondly, in our work, we have been serving strategic situation with more precise allocation. In dynamic balance, we have achieved a new increase in scale and efficiency, facing international economic and trade landscape adjustment in 2025, the global financial market has been facing increasingly complex environment.

So we have to focus our strategic focus and the strive to proactively or more proactively use a sophisticated and refined management strategies and approaches to prevent and control risks. In particular, with our comprehensive income target as the goal, the RMB bond scale has increased by RMB 2.4 trillion, compared with the beginning of last year, and we have achieved a due growth in revenue and profit and also we have a better revenue structure or duration allocation has been more balanced.

This has given us an edge and cushion against the cyclical fluctuations of the market. Here, I think that it is important to highlight flexible or dynamic management and optimization of duration as well as the duration structure.

We have to constantly strengthen the monitoring of potential risks coming from interest rate and exchange rates, so as to improve the forward-looking analysis and prevention of bond investment or credit risks. Thirdly, as a major bank in China, we have been acting on national strategies and serving the real economy, we have advanced the Five Priorities.

In the year 2025, ABC has taken a lead in underwriting national bonds and local government bonds and credit bonds and altogether, more than RMB 3.7 trillion, a year-on-year increase of 20 percentage points roughly. So it is fair to say that we have supported implementation of active physical policy and the real economy.

We have also been focusing on 5 major priorities. We have been continuing increasing our investment in industrial bond in green and low-carbon areas and technology innovation.

These directions represent our top priorities. And by the end of last year, the green financing [indiscernible] balance has maintained a leading position, and we have also anchored our efforts in rural revitalization strategy.

Our investment in that regard has increased by 300% and/or underwriting share ranked first in the market for this year. And especially in the Sannong, where agriculture-related sectors, we have precisely allocated or investment portfolios.

And you're also interested in the bond strategy for 2026. We deeply feel that 2026 because it is the starting year for the 15th Five-Year plan, it is a pivotal year for us to build momentum and step into high-quality development as China's economy transforms itself.

Here at ABC, we have served the real economy and we have coordinated development and security and ensure we have a better coordination at a macro level. We have been maintaining stability while seeking progress in our financial market operations.

But all at the same time, we emphasize that we have to really delve into structural opportunities in these cycles. First of all, we have to improve our ability to assess different situations and support proper investment decision-making.

So I think that you are also an expert in that regard. So I will not go into any details here.

I believe that logic of global asset pricing has been undergoing profound changes. I should say that all of you might feel it to some extent.

And internally, we say domestically, our economy is now building momentum and the pricing signals are expected to recover and the monetory policy remains not really accommodative. The government bonds has increased and supply has increased, and the issuance has been also significantly front loaded.

And since the beginning of this year, the curve of the bond market yield has been more steeper. So we estimate that the bond market will take on a volatile trend.

Credit bond as well as green and sci-tech bond will be even more active. The fluctuations were volatile or transaction or trading opportunities will coexist with those low volatility assets.

And also in foreign markets, there will be increasing interplay between exchange rates, bond stock and commodity markets, so we have to have the overall picture in mind. One important part of our work is to integrate all platforms at ABC and pull together the research power to conduct research across different markets, cycles, sectors and asset categories so that even in complex fluctuating scenarios, we can really lend ourselves our certainty.

And secondly, we focus on national strategies to accurately empower the real economy. First of all, we have used -- or adopted a proactive physical policy.

We have been deeply integrated into modern industrial system. So here, we're focused on some of the modern and strategic emerging industries and also, we will intensify efforts to allocate more resources to high-quality industries.

And thirdly, we will advance Five Priorities, especially in pension finance, inclusive finance and green finance and so on. And next, we will continue to optimize our investment portfolio while controlling and preventing risks will ensure prudent growth.

Thirdly, we will give full play to our advantage as a major bank in China. We will deepen services for domestic and overseas investors, and we will continue to cement our core commercial functions, piggybacked on a full range of bond varities and pricing capabilities.

We will continue to improve bond market liquidity and stability and improve our cross-market allocation capabilities. On the other hand, piggybacked on the Bond Connect, Swap Connect and so many others or other mechanisms, we will ensure we provide better services for cross-border investors and leverage the advantages of domestic and international linkage and supports high-quality Chinese businesses to go global and expand their development channels.

And fourthly, we will empower or digital transformation with science and technologies. So we have to uphold the leading role of science and technology and digital means and risk control and prevention, bond and research and also so many other areas we have to have whole chain integration, and we ensure that AI is applied in different application scenarios, such as position management and pricing and trading so that we can improve for quantitative analysis and also intelligent investment decision-making and empower development or high quality development of ABC.

Thank you so much, Mr. [indiscernible].

Next question, please.

I am a financial analysist from [ CICC ]. What ABC has done in supporting the development of sci-tech businesses what are your best practices?

And how will better develop the sci-tech finance business or the fintech business?

I think that I would like to take this question. We know that the technological finance is a very important part of our self-reliance and also the construction of a technological strong nation, and it also involves the construction of a modern industrial system and new quality predictive forces here at ABC.

As of the end of 2025, we have already provided services to over 350,000 technology-based businesses and the balance for loans is RMB 47,000. The annual growth rate is more than 20%.

The coverage and overall loan volume has been at the forefront at this industry. To be more specific, enhanceability of technology and financial service at ABC continued to carry the special actions to enhance the capability of technology and financial service in the whole bank, focus on Beijing-Tianjin-Hebei area, Yangtze River Delta area, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing other high lines of technological innovation establishing 25 provincial and municipal level technology and financial service centers and building more than 300 specialized technology and financial branches established professional talent pool for technology and finance.

We have allocated professional equity investment personnel to each subsidiary and build a large number of financial technological and industrial professionals in the ABC Group. Second, we expanded the coverage of products and the services we have taken the lead, introducing guidelines for our technology and finance credit policies, promote the 5 [indiscernible] capabilities and 7 abilities on credit evaluation model inclusive to technology and enterprise -- technology enterprises in a build of full life cycle credit service system covering the institutes and the sci-tech parks and also the technology workers in total around 50 specific products and customers.

For example, in providing service to the agricultural technologies, we rolled out in the agricultural park science enterprise loan, especially also have the agricultural or machinery loan, effectively providing service to the leading agricultural technology enterprises. And also, we provide the seed industry revitalization and also make good use of various policy tools.

We know that in 2025, digital bank and other 7 departments issued a series of policy tools to support technology finance. And ABC actively connected and implemented those policies.

We support the creation of a technology innovation on board in the bond market. The first batch of RMB 20 billion of commercial banking technology innovation bonds were issued while we increased the underwriting and investment in various market entities in science and technology, innovation bonds also underwrite an investment are at the forefront of the industry.

And also we implemented the policy -- monetary policy tools. And also, we signed a contract amount of loans and technology innovation, technological transformation has been achieved.

And also, we participate in the policy and pilot projects -- we were the first to sign a RMB 50 billion of Social Security Science and Technology Innovation Fund in Zhejiang and Yangtze River Delta and also established 30 various types of science and technology innovation funds, including establishment of 18 AIC equity investment policy, city funds, and we have a full coverage of investment. The cumulative lending [indiscernible] technology-based enterprise exceeded RMB 25 billion.

Those measures have supported the development of technology innovation. 2026 is the first year of the 15th Five-Year plan period while fully focus and will get [indiscernible] in terms of the technology finance and to empower the new productive forces and provide service for the economy so as to contribute to accelerate the strength of China -- China's strength in science and technology.

First, we will provide service to the modernized industrial system, promote innovation technology to combine what were integrated with the industrial innovation, focus on the upgrading of traditional industries, focused on the new and future industries, focused on the modernized infrastructure, focused on the major national scien-tech projects to seize our targeted industries and customers, enhance our policy and resource support and enhance our professional service capabilities so as to accelerate the formation of new product forces. And second, we have a full chain, full life cycle comprehensive or one-stop service by adapting to the laws and patterns of the innovation and also the growth pattern of the enterprises.

We will invest early, invest in small and investing in the long term and invest in the hard technologies and also continue to enhance our policy and support system. And also, we upgrade entire chain and entire cycle, the technology finance or financial service solution of ABC.

We have the -- based on the advantage of ABC full license investment, lending bonds and leasing, consulting, [indiscernible] play to the role of AIC in serving technological innovation and equity investment. We work with government agencies and also to research institutes and VC firms and other financial institutions to meet the comprehensive financial service demands of the enterprise to our customers.

We accelerated the promotion and application of our data tools to adapt to the trend of digital and intelligent development, we deepened the AI+ empowerment of technology and financial service. We coordinated the deployment of our large language models and development of intelligent agents, optimize the service platform for industrial finance, which has registered now 5 million high-quality technology enterprises, enabling precise service capabilities and also make in-depth use of innovation, external data, such as innovation points, intellectual property and investment and loan linkages optimizing the precise evaluation model for technology enterprises and also use AI agent system that enhance our quality in providing service.

Thank you Mr. Wang.

A question online, please take a common question that we haven't touched upon. Well, this year is the first year for mandatory sustainability information disclosure.

And the investors in the capital market are very interested in the sustainability of listed companies. Also, ABC is performing very well in ESG work.

So what is progress of the sustainable development -- sustainable development and what are the next steps?

Thank you for the question. Well, we will disclose 2025 sustainability development in line with our annual report, in line with the new regulators and benchmarking to the international initiatives, demonstrating the performance of ABC in our sustainable development.

We actively implement a national strategy in sustainable development and incorporate the targets in responding to climate change in our day-to-day work management and business operations, enhance resilience through sustainable development, enabling the benefits to all stakeholders. To be more specific, first, we focus on improving our governance and implement Chinese characterized financial governance.

We incorporate the party leadership into our work and also enhance our sustainable topics, scope of the disclosure of sustainable development. And the BOD is supervising, senior management is implementing and also the executive level effectively implementing the policies forming a connected governance chain and enabling the concept of sustainable development into the top-level design of business operations in the 15th Five-Year plan and further stimulating the quality and momentum of high-quality development.

Second, we'll fully implement the green finance strategy. We steadily promote our own energy conservation and carbon emission reduction, actively practice the concept and take carbon peaking and carbon neutrality as our guide and actively guide capital to towards key areas such as carbon reduction, pollution reduction, green expansion and growth in terms of green finance, balance of green loan is nearly RMB 6 trillion and equivalent to an annual reduction of RMB [indiscernible] million tons of CO2 and RMB 66 billion of green financial bonds have been issued in China ranking first in the industry.

The balance of green bond investment has increased by 37%. In terms of ESG risk management, we have built ESG evaluation indicator, matrix system for our clients, launched ESG evaluation function for corporate clients.

We also explored and conducted climate, risk stress test for agricultural, personal housing and wind power enterprise loans, applying the result of climate risk analysis investment and financing management. And also in terms of our operations, we actively practiced green office green procurement and in green travel and the total carbon emission per capita of the whole group in 2025 have decreased compared with the previous year.

We always put people at the first place, enhance our -- to improve our people, employees well being. ABC will have a wide range of stakeholders.

We take customer satisfaction, employee satisfaction at our core or at our priority, strive to give back to our shareholders, give back to the society, contribute to the society, continuously expand the accessibility of financial service mentioned and ABC will provide service outlets to cover all more than 2,800 country-level areas and making it the only bank to achieve a full coverage of country-level institutions or outlets. In 2025, ABC has relocated and built 179 new outlets in rural areas or towns, further fulfilling the rural areas with insufficient financial service.

And also in regular provision for mobile financial service has cumulative served 120,000 rural households. Agricultural service projects significantly enhanced service capabilities.

We built 3,308 elderly friendly service outlets with remote banking hotline providing service to senior customers throughout the year. We have 22,000 warm-hearted union service stations providing considerate service for outdoor workers and new citizens.

More than 9,900 public welfare activities were held -- were launched. ABC has also thoroughly implemented the talent empowerment strategy for professionals and frontline young employees.

We have implemented major talent projects for key groups, selecting over 2,200 young talents and adding 47,000 talents to talent pools of different levels and types, building 6,115 facilities for workers strive to create -- realize greater value for our shareholders. We also enhanced a 2-way interaction in the capital market for 3 consecutive years, ABC has led its peers in terms of total market capitalization growth.

We have maintained a high dividend payout ratio. We continue to shine the brand ABC philanthropy with full employment -- incremental 4 major actions of rural revitalization, protection care fulfillment and through donation volunteer service, mutual assistance and other means to provide a generation or benefit to the general public.

And also, we have volunteer service hours exceeding 850,000 hours, and that has also given a recognition and a branding for ABC. Moving forward, we'll continue to follow [indiscernible] strategy of national system of development, deepening the development of the management system and provide a better service to our customers and to our employees as well as respond to the concerns of stakeholders to ensure high-quality development through the sustainability practices to create a better value to our shareholders through the good sustainable practices.

We have a very thorough discussion today. For the sake of time, we will have one last question from the Beijing venue.

And from [indiscernible], I have a question on AI. Now AI is applied widely in banking sector in the management and business expansions and a lot of results have been achieved.

And Mr. Wang also said ABC will vigorously promote application of smart AI in smart banks.

So what achievements has been made and what measures have been taken?

Thank you for the question. My colleagues just now in their presentation also touched upon a little bit on the application of AI in smart banking development.

AI is buzz for now, ABC also seized the opportunities of AI development. We set up the specific office for smart banking development and also in [indiscernible] coordination.

Also, we will focus on the AI agent application, focused on the project and also, we will build AI+ capability system to ensure the smart inclusive or wide-range use of AI. Past year achievements are reflecting the following aspects.

First, the accelerated our service, innovation and product innovation, we keep the accelerating the research and development of digital products. We have launched a fly handbag in way to provide the loans for drone operators, we also have a farmer e-loan.

Also at the same time, we innovated technology finance credit products. We call that tech loan.

And also scale of online credit business has increased. As at the end of last year, the balance of agriculture e-loan was RMB 6.8 trillion, an increase of 18.7% over the end of previous year, also improve the quality of efficiency of online service.

The monthly active users of personal mobile banking have been leading among their peers. We also rolled out the new version -- 5.0 version of the inclusive finance [indiscernible] build an online inclusive business covering multiple channels.

And also, we have increased in the efficiency and effectiveness of smart risk control. In terms of credit risk management, we have the on-site and off-site prelending due diligence, also deepened automatic identification and comparison of GPS positioning, image information, applied advanced technologies such as generative AI, strengthening multidimensional verification of real people, real events and real scenarios.

We also continue to strengthen a centralized monitoring for the 5 group of customers in terms of the group customers and large medium-sized customers, small SME customer, personal loans and agricultural loans and also enhance our smart disposal platforms. We have also achieved batch handlement or disposal of these cases so that we have promoted NPL disposal.

AI can also empower anti-fraud efforts as well as anti-money laundering. The quality and efficiency have both been improved.

And -- this can also help us to reduce our business burdens. For example, in terms of intelligent customer service, we can deepen application of AI models to fill in the forms, for example, and effectively reduce the burdens of frontline agents.

The average time required has been shortened to 176 seconds from more than 200 seconds. We have also speed up the construction or the development of intelligent investigation review report templates.

The automatic generation ratio of this report data exceeds over 70% for small enterprises, credit recipients and group credit. This has reduced the manual workload of credit personnel in drafting -- and just now our AI model mentioned by our senior management can also fulfill the smart or intelligent Q&A session.

And this function can also empower the consumer protection or compliance and other processes. And this AI model, [indiscernible] has also won many awards, for example, in the recent Consumer Protection Day, the 15th of March has also announced that it has won the Financial Consumer Protection Golden Award for 10 outstanding cases in financial technology innovation services.

So it is quite popular within our bank. And fourthly, AI is a systematic work.

especially in terms of application in ABC, we have been systematically promoting the application of AI. We already painted we mapped out a blueprint for AI application and compelled the AI capability map.

And with a platform dedicated to AI application, we can promote it capacity building of computer power to successfully deploy multi-industry leading-edge models. And this will also help us to develop even more model metrics regarding AI.

Next step, with intelligent platform building, we will continue to improve the accuracy and convenience of financial services and also its inclusiveness.

Thank you so much, ladies and gentlemen, very big thanks from my bottom of heart for all of you in participating in this 2025 annual result announcement of ABC. We have implemented regulatory requirements and implemented an investor-oriented management approach and also clarified our mechanisms, targets and approaches for market capitalization management.

We have appealed high-quality development and highlighted our features as well as serve the real economy as one of the major banks in China and strive to create more value for investors and shareholders and disclose the information in a timely manner. Our stock prices and also valuation have all achieved improvement.

Thank you again, all investors, analysts and friends from the media for your continued interest and support in ABC. And I would also like to thank the senior management for your sincere sharing of the operating performance of ABC today.

If you have any questions in the future, you are the most welcome to contact ABC's team. So that's all for today's result announcement conference.

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