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. Chen Yijiang, 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 two parts: presentation and Q&A session.

We will provide simultaneous interpretation. Let's move to the presentation part.

Please welcome Mr. Yang Yucheng to introduce the 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 is also an extraordinary year for NCI. Facing a highly stressful and complex internal and external environment, all employees have worked hard throughout the year.

Our business performance has reached the new heights built on a high base. Multiple core 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 total assets was close to 1.9 trillion yuan, up by 12.2%.

Gross written premium was 195.9 billion yuan, up by 14.9%. EV was 287.8 billion yuan, up by 11.4%.

Net profit was 36.3 billion yuan, up by 38.3%. The company attached great importance to shareholder returns and shared the fruits of its business development with investors.

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

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 200 billion yuan.

In 2025, the company's comprehensive strength has reached a new level and achieved the fruitful results. The operating revenue reached 157.8 billion yuan, up by 19% year-on-year.

Net assets reached 111.5 billion yuan, up by 16%. ROE reached 34.7%, up by 8.8 percentage points.

New business value reached 9.8 billion yuan, up by 57.4%. NBV margin was 16.2%, up by 1.5 percentage points.

The total investment was 104.3 billion yuan, up by 31%. Total investment yield was 6.6%, up by 0.8 percentage points.

Our solvency has remained adequate. We have 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%. NBV and NBV margin and EV have all achieved significant improvements.

From structure perspective, FYRP in FYP exceeded 60%. Renewal premiums continue to play a stable rising role.

We have won the battle of transformation to par insurance. Par insurance proportion in overall regular payment business increased quarter-by-quarter.

In the fourth quarter, it reached 77%. 13-month persistency rate was 97.1%, up by 1.4 percentage points.

25-month persistency rate was 93.3%, increased by 7.1 percentage points. Surrender rate was 1.5%, decreased by 0.4 percentage points.

The company's service to national strategy reached the new heights. We improved our management system for serving national strategies, established special groups, and formulated implementation plan.

The investment in serving the five major areas in finance exceeded 360 billion yuan. For inclusive finance, we improved inclusive finance products, underwrote 46 Huiminbao products.

Investment in the inclusive field has reached 55.6 billion. For pension finance, the second and third pillars of pension have been vigorously developed.

The total premium of the third pillar commercial insurance annuity exceeded 60 billion yuan. For technology finance, we provided over 1.2 trillion yuan in risk protection for 14,000 technology enterprises, with investments reaching 140 billion yuan.

The company has leveraged its patient capital advantage to support technological innovation. Our medium and long-term fund entering the market project was selected as an outstanding case in the 2025 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 75.1 billion yuan. We have been awarded as an outstanding ESG case by the Publicity and Education Center of the Ministry of Ecology and Environment.

For digital finance, we supported the further development of digital industry enterprises, with investment balance exceeding 68 billion yuan. By 2025, we have fulfilled social responsibilities and demonstrated the commitment of a state-owned enterprise.

New achievements were made in rural revitalization with a total investment over 70 million yuan. For 9 consecutive years, a public welfare project to care for sanitation workers had been carried out, benefiting 6.7 million people.

Resources will eventually be exhausted, but the culture endures and thrives. The 2025 was designated as the year for promoting company's corporate culture.

The company practiced the new era of corporate culture. Our corporate value is company first, hard work as the foundation, openness and inclusiveness, and success in action.

Our NCI professional and army spirit was professional and army, pursuit of excellence, benevolence and virtue, inheritance and innovation. Through organizing honor evaluations, speech contests, special lectures, and lectures by renowned teachers, we have widely carried out 150 cultural promotion activities among employees and agents, held the 2026 agent summit, and rewarded outstanding teams and individuals.

Under the inspiration of the corporate culture, enthusiasm of employees is high, morale of sales team is high, and cohesion 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 table tennis tournament, launched the brand IP Xilibao, demonstrating a brand image that is substantial, grand, full of vitality and strength.

With stable operation and outstanding service, the cohesion 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 considerable and gratifying progress in all aspects.

The dividend of 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 at the development in the past year, we have carried out the following key tasks.

We strengthened strategic planning and made systematic and in-depth arrangements, attached great importance to top-level design. In the beginning of last year, we initiated the formulation of the 15th Five-Year Plan on the basis of thoroughly analyzing market changes and industry transformation trends.

After extensive research and three rounds of seminars, we proposed the development vision of building a first-class financial service group in China with insurance business as its core. We formed three strategic main lines: customer-centered, team-based, and employee-partner-oriented.

We aim to provide enduring protection, better life, and greater health to customers; create a platform of great love and fulfill the dreams of entrepreneurs for our team; strive for growth, consistently innovate, and surpass, and realize the ideal of serving the country and the people for employees; lead to better products, better services, and better life with NCI. We clearly focus on the coordination of three fronts, promote reform and innovation.

Moving toward the direction set by our strategy, centering on strategic main lines, deepening and solidifying the coordinated development of insurance plus service plus investment, and further promoting professional and market-oriented systematic reform, launched a series of combined measures for reform and development, won the initiative in market competition. Firmly grasp the flagship products, promote 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 the 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 a FYP of 11.9 billion yuan, an increase of nearly 12 times year-on-year.

Substantial and significant progress has been made in product transformation. We will make effort to enhance the competitiveness of our products, establish a diversified product matrix centered on customers and covering the entire life cycle, enrich a variety of wealth management products and pension products, launch innovative products such as Yiyouyou and Kanghuyou, deeply integrate insurance claim settlement with medical service and nursing services, achieve a transformation from traditional claim settlement to products-service ecosystem.

Adhering to the concept of finance for the 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 deepen our efforts in channel and team building, accelerating breakthrough in business transformation.

In individual channel, we have strengthened the system-based management and self-dependent operation. We advanced the build of high-performing team with strong units.

Longteng Feng and WLP entrepreneurship support team with efforts have solidified the foundation for our team. We have built an ecosystem scenario and a benefit system, established one-stop digital marketing platform, deep 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, seized the market opportunity, continued to deepen product transformation and team building.

Based on significant optimization of cost structure, total bank premium reached 72.1 billion yuan, growing by 40%. FYP from long-term business reached 37.9 billion, up by 52%.

NBV reached 5.27 billion, a substantial increase of 111%. The bank channel contribution to new business value has surpassed that of the individual channel, accounting for a significant share.

We improved our service ecosystem and advanced service empowerment system from scratch, from basic to excellent, upgraded our five major service brands that covered 10 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 and service.

It covered over 4 million individuals with increase in 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, leverage technology to empower operation, providing ultra-fast service to agents and clients. The company's 1-minute completion rate for policy service stands at 96%.

We paid out more than 42 billion in maturities and annuities over the year and 14.7 billion in claims. We launched 11 large model intelligent agents and an NCI digital human ambassador, all have empowered service improvement and business growth.

We have enhanced our investment research capabilities, built a comprehensive edge on the investment side, strengthening our ability to deliver enduring protection. In 2025, our total investment income reached 104.3 billion yuan, up by 30.9%.

Total investment yield was 6.6%, up by 0.8 percentage points, ranking among the industry leaders. The company improved investment management and asset-liability coordination.

We continued to improve investment attitude. We expanded our team of investment professionals, cultivated and recruited outstanding talent, establish 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 bond-heavy base but lacking an equity base. On the fixed-income asset income, we invested in convertible bonds, bond funds, REITs, and other diversified assets, reducing negative interest spread and reinvestment risks.

In response to the requirement for long-term capital to enter the market, we established three pilot funds with China Life for a total contribution of 46.25 billion yuan. We strengthened the development of our investment ecosystem, enhanced coordination with various institutions, made good use of financial resources, reinforced investment risk management, controlled credit risk, market risk, optimized multi-layer risk buffer system, built robust investment management capabilities, striving to achieve excess returns on the basis of long-term stability.

Focus on strengthening foundational management to solidify the company's high-quality development, build a powerful headquarters, clarifying the role of head office for design, institutions for execution, took the lead in strengthening strategic guidance, resource allocation, upgraded the strong foundation project, committed to lay a solid foundation for long-term benefit, empower branches across six dimensions, help them upgrade and elevate their overall competitiveness, optimized resource allocation, launched the re-energizing 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, improve risk control system, establish a penetrating full-coverage and integrated risk control framework, refine authorization system, achieve group-level management goal of clear authority and responsibility. The year 2026 marks the beginning of the 15th Five-Year Plan and the company's 30th anniversary.

Demographic shift, technological innovation, and industrial upgrading and transfer of household wealth allocation will accelerate transformation, imposing higher demands for the company's operations. At this starting point, we'll keep in mind original aspiration and mission of finance for the people and for the country, take corporate culture as the soul, take strategic planning as the directional guide, seize market opportunities, improve the synergy across the three fronts, focus on core business, continue to deepen reforms, enhance our development capacity, and persistently build a strong, 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 a profit-centered approach, optimize business mix and revenue structure, drive the optimization of business and 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, leverage the powerful synergy of One NCI. We will transform the company's strength into company market competitiveness, establish a new modern marketing concept and practice the new marketing model, enhance capabilities and standards in serving customers, build a service ecosystem that's more quality-driven and more closely aligned with customer needs, become a comprehensive financial service provider for customers.

We will use our concrete action, put in practice the value proposition of finance for the people, delivering enduring protection, better life, and greater health. We will be a modern insurance company that's professional, warm, mission-driven, and worthy of long-term trust.

Fifth, leverage the advantages of patient capital and long-term capital. We will optimize the asset allocation structure, improve the investment research system, build a multi-level investment portfolio, high-value asset allocation, enhance investment management, asset-liability coordination, cultivate long-term value creation, become true patient capital and high anchor-level capital.

Sixth, remain committed to laying a solid foundation for long-term benefit. We will build a stronger headquarters which will lead the branch office to become stronger.

We will balance development and security, strengthen the implementation and improvement of risk control system, increase technology investment, and reinforce full-scenario AI empowerment. Going forward, we will adopt a courageous competitive stance and a spirit of striving for excellence, pursue breakthrough through innovation, enhance long-term competitiveness, achieve a solid start to the 15th Five-Year Plan.

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

Thank you, Mr. Yang.

Next, we move to the Q&A session. Due to time limit, each person is limited to two questions.

Please let us know your name and the institution you work for.

Thank you for the presentation. I'm Zhong Xin from Soochow Securities.

First, I'd like to congratulate on your sound performance in last year. I have two 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?

What is your product strategy? Also I want to ask about the participating insurance.

What is your goal and plan for the transition to participating business? The second question, I want to ask about the asset.

In the past few years, we are in a low-rate environment and the net investment yield of the peer company has going down. We can see the total and comprehensive investment yield lead the 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.

Thank you. For 2025, we have yielded remarkable results.

The GWP increased by 15%, FYRP grew by 50%. In 2024 and 2025 has realized a very fast growth and laid a high base for our future growth.

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.

We will focus on the key areas that drive the value growth, speed up the channel development transition, and to consolidate our business capabilities. In 2026, we will provide the best business performance to celebrate our 30-year anniversary and reward the trust of our customers and 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 bank insurance channel, group channel, as well as the internet channel, we will make full efforts, strengthen the combo sales of products to meet the diversified demand of the customers.

In the past, we have done a good job in the sales of whole life insurance, and we are confident to make efforts in the sales of the participating and health insurance, and we will return to the essence of insurance to consolidate our business quality and to realize a sound growth of both NBV and premium income. More specifically about the product definition, as well as the competition strategy, I want to emphasize the followings.

First, we will implement the new marketing concept of integrating the scenario, product, service, and technology. By virtue of the high-quality medical resources, we will focus on the treatment, medical care, and nursing as the center and provide a multi-tiered and diversified products combining the insurance products and health service.

We will combine the wealth management products with the aged-care community and tourism resources to build our insurance plus aged-care community, and also strengthen the asset-liability matching management, strengthen the coordination to empower the floating-benefit products. In 2026, we will emphasize the sales of participating whole life insurance, but this is not the sole product we will provide.

We will also introduce measures to promote other wealth management products including the annuity insurance and health insurance, and also we will fully leverage on the tax-benefit policies and pension policies of the country and to introduce products. We will include the important products including the whole life annuity and aged-care pension products to include in individual pension products.

We will provide the whole life circle health solutions to customer including the prevention beforehand, in-process control, and rehabilitation afterwards, and will provide diversified product pipeline. 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, etc.

About the transition to participating business, I want to emphasize that in 2025 we are determined in this transition and have a good start. For example, in the sales, we have made breakthroughs.

In last year, the sales of participating business is 12 billion. Given that we haven't sold the participating business for many years, and this is a hard-won result, and especially in the third and fourth quarter last year, we have strengthened our efforts and yielded expected results.

On the other hand, in terms of our management system, we have effectively coordinated resources of the front and 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. In 2025 is just a beginning.

2026, we will continue our participating business transition, focusing on the product portfolio expansion. For example, we will strengthen the sales of annuity insurance products, strengthen the product innovation, and seek the policy opportunities of participating health insurance.

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 matching 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.

Thank you for your recognition for our business performance in 2025. Our total investment yield reached 6.6%.

After considering some other indicators, we could make it to 6.9%. This is due to the fact that we have continued to uphold long-term and value investment.

Your question regarding two 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 conditions will be loose and have more certainties, but ultra-long-term bonds will more fluctuate.

Long-term and short-term interest rates will diverge. In low interest rate environment, how to get a favorable returns, we need to consider the interest rate trend rightly.

About equity market, we have confidence for the medium and long-term development of China's capital market. We pay attention to three themes.

First, outperforming sectors in up-cycle. Second, those relevant to the national strategies, especially new productive forces.

Third, high-dividend strategy in low-interest-rate environment. Based on the above judgment about the capital market, for the SAA, we will carry out the following principles.

First, 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 rational structure, enhance the profitability elasticity.

Second, return orientation. In market fluctuations, we will pay attention to margin of safety, grasp phased opportunities, and bring sound investment returns to customer and customers.

The uncertainty in macro environment and financial market will pose both challenges and opportunities to the company. We'll follow the macroeconomic changes and the policy changes.

We will keen to bring stable return to the market.

I'm from Shanghai Securities. I have two questions.

NCI has established three pilot funds with peers. What's the actual result?

Will you further increase your diversification asset allocation? Second question is how would you view AI's impact on the company?

What's your future plan for AI empowerment?

Thank you for your question. Regarding three pilot funds, we started from March 2024 to now.

In the past 2 years, we have achieved both social result and economic result. We have been fully carry out the central government decision.

Under guidance of NFRA, we responded to the requirement to enter the market. With peers, we established three pilot funds.

Our total investment reached 46.25 billion yuan. The pilot fund is conductive to the asset-liability management.

About your second question about diversification investment, this is our key strategy. We will based on the following three considerations.

First, in the low interest rate environment, we must make diversified investments to increase our long-term returns. Second, in the 15th Five-Year Plan, our company is undergoing a transformation.

With the improvement of capital market, we have been presented with opportunities to participate in 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 thinking about the AI.

For 2025, from the top-level to the grass-root operations, we all embraced AI. AI is not a vision in the future, but fundamentally reshaping the industry.

The key in the transformation, that's not only because can make tailor-made pricing, but also enables to provide customized service and real-time responding, also enabled real-time warning and monitoring. In the past year, we have been impacted fundamentally by AI.

In customers, AI makes us know customers really. Second, in operation, AI makes us reshape the service process.

Third, for risk management, AI lets us guard our risk bottom lines. We have awarded 12 authoritative awards from authorities about such as PBOC, China Academy of Information and Communications Technology.

We have got ISO business continuity management system certification and passed the DCMM [fourth tier?] recognition.

AI make our service better. As for the illustration system, AI proposed 258,000 proposals.

About AI makes for improvement in qualification inspection. We put online 11 AI agents with 97% solvency ratio, accuracy ratio hit 100%, covering 3,500 counter staff and over 100,000 agents.

Those matters improved our digital customer engagement abilities. For 2026, we will make matters in the four areas.

First, we will implement the 15th Five-Year Plan in technology. Second, in expansion of AI applications, we will build seven virtual employees covering seven areas.

Through the large-small model synergy, we would like to have digital productivity equivalent to 3,000 people. Make machine do their own stuff and make people do more valuable stuff.

Dig data value deeper. We would empower data from visibility to true value, make data core assets to drive business performance.

This year, our focus is on the development of corporate cloud. We aim to establish one cloud, multi-chip infrastructure resource framework.

Technology empowerment has been through every corner of corporate operation. We will maintain our strategic resolve, aim to make AI more productive for the 15th Five-Year Plan.

Thank you for the opportunity. I'm an analyst from Guotai Junan Securities.

Congratulations on your remarkable results in the asset and liability side. For the asset, you have a evident mark of sound performance.

I have two questions about liability. In the past two years, just now Chairman Yang and Mr.

Gong have mentioned, you have realized faster growth and high-quality growth of NBV. I want to know what are the main drivers behind this?

In 2026, you have speed up your transition to participating business. In this process, how can you realized growth of both NBV and NBV margin?

The second question about bancassurance channel, which has been a hot topic since last year. I want to know your distinguished competitiveness and advantages.

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 three consecutive years faster growth. For numbers, we can see in 2023 is 3 billion, 2024 over 6 billion, this year is over 9 billion.

The growth rate is 25%, 107%, and 57%. Those growth rates is hard-won.

We can see in this process, we have constantly implement the internal-driven high-quality growth philosophy and introduced a series of reform measures that can lay a solid foundation for long-term growth. The growth of NBV is a result of those reform measures.

The second is we improved the product competitiveness, which is a top priority for us. We believe and we also want better products stay with NCI.

We want to introduce comprehensive and exquisite product portfolio for customers and to truly help the customers and the agents be more confident about NCI and our products. Thirdly is we improve the sales capabilities of our agent force.

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 let the agents to grow with our company.

The third is we introduced combo measures. In the past two years, focusing on the mass customers, the high-individual customer, we have introduced a series of service ecosystem and services.

We introduced the Chun, An, Rui, Yue, Kang, five service brands to serving different kinds of customers. Those combined and combo service and products can make our customers gain more sense of gain and to make the sales easier.

Lastly is we emphasized the management of the business quality, and we focus on the management of persistency ratio. 13-month persistency ratio rose to 97%, and 25-month persistency ratio surpassed 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.

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. This is also in line with the regulations' advocacy of promoting the floating-benefit products.

Also, we hope that the customers can share the development result and performance of our company. For the NBV margin, it will have certain impact on the NBV margin.

The NBV margin for participating is lower than the traditional product and pose certain challenges to the growth of NBV and NBV margin. We have 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 a high business income last year.

We will further stimulate the enthusiasm and morale for our team and the staff to increase their capabilities and the confidence to sell. Hope that we can have a higher growth of the volume.

Second is we will further optimize the business structure, grow the essence business of insurance. We will further diversify our product mix and to diversify the profitability drivers.

We will make up for the weaknesses in terms of the health insurance and long-term annuity insurance, etc. For those efforts, hopefully we can have a higher leverage effect to promote the NBV growth.

Third is we want to reshape the channel competition. Now we are facing a fast-changing environment.

There's a higher requirement from the regulators as well. 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.

Also, we will grow the internet channel and establish a new driving force for NBV growth. Last is to reduce the cost and to optimize the cost efficiency and the efficiency of the resources.

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 of NCI. In recent years, our bank insurance business has posed a strong growth.

It has become an important engine to drive the company's growth in size and value, especially for 2025. We elevated the bancassurance to a strategic level and live up to expectations.

It made good achievement in 2025. FYP reached 37.93 billion yuan, up by 52.3%.

FYRP almost 18.18 billion yuan, 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, enhance its important role. Our bank insurance channel is rich in heritage and constantly evolving.

We pay attention to both premium and value. We have accumulated advantages and moved stably in market competition in 2025.

Our differentiated competitiveness relies on stable progress. First, we made stable progress in customer management.

We know, for life insurance, our key competitiveness lies in customer management. We build a comprehensive, refined, diversified product system meeting customers' diverse needs for service end.

Based on the whole life cycle's ecosystem, we collaborate with banks, upgrade experience for customers. For investment, we give full 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 use of advantages and synergy, make 1+1>2. It's glad to see our ranking with large banks had been improved.

Active outlets up by 40%. We have seen a good result between asset and liability synergy.

Third, we have made a stable progress in team development. We based on Strong Foundation Initiative 2.0, initiate reform of building high-performing agent team with strong units, three-third principle.

Workforce growth rate exceeded 20%. On the basis of that, our average per capita productivity rose by 17%.

Our professional and army for the bancassurance channel grow with their bank partners and toward the win-win results, which all win recognition from our bank partners. Looking to 2026, the bancassurance market will have new features.

We have reached consensus on the following three areas. First, premium will continue to grow.

Customers' 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, NFRA made further requirements and detailed requirements for the consistency policy, improved consumer protection mechanism. Customers' expectation for product and service will be stronger.

I believe bank will impose more higher requirements for the life insurance. All those new requirements will pose challenges and opportunities for the company's comprehensive strength.

Third, market landscape is accelerating divergence. The market will rapidly evolve toward market concentration.

Matthew effect will become significant. For those with more professionalism and a higher capability in asset-liability management will grasp market opportunities and move toward high-quality development.

We believe 2026 China's bancassurance market will mark un-stable growth. For next year, we will grasp opportunities in the market, give full play to the synergy of One NCI, promote the insurance plus service plus investment model.

We hope to promote stability through progress. Faced by the 2026 market, we aim to promote stability through progress.

We need to do more in the following three areas. First, further deepen cooperation with banks.

Together with banks, we will together carry out five articles in finance and win for win-win results. Second, strengthen technology empowerment, enhance team professionalism and comprehensive service abilities.

Third, expand ecosystem, meet customer diversified whole life cycle protection needs. 2026 marks the 30th anniversary of NCI.

We will keep up with the time and make our bancassurance brand more brilliant, pay attention to the premium growth and value, contribute more to the high-quality development of our company. Thank you.

Next, let's welcome the questions from Xinhua News Agency.

First, congratulations on your sound performance in 2025. First is, now we can see the macroeconomy and environment as well as life insurance is experienced profound changes, and what are the opportunities and challenges facing NCI?

This year is the beginning of 15th Five-Year Plan as well as your 30th anniversary, and what are your key strategy 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 NCI.

This is a meaningful question. Just now in the presentation, I've mentioned 2025 is an is a remarkable year for NCI.

In this year, we have fully planned our strategy, improved coordinated development model of insurance plus service plus investment, and introduced the strategic main lines of customer-centered, team as the foundation, and employee as the partner. We have emphasized the reform and focus on top-level design mechanism, business transformation, product, service, investment management, talents, resources allocation, the operation, technology, and brand culture, etc., and to promote the systematic, market-oriented, and professional reform to release the constant dividend for us.

Just now you've mentioned, we we've seen that in 2025 the total assets, premium income, EV, the net profit, shareholder reward has reached a record high since we've established in the past 30 years. We can see now NCI is a country with rich heritage, strong strength, and sense of responsibility and mission.

Also we are vibrant and full of cohesion and execution. First, I want to answer the question about opportunity and challenges in the 15th Five-Year period.

There's a huge change of domestic and international macroeconomy, and there's a huge changes for the life insurance sector for its position, business model. We believe there both exist, but the opportunities is greater.

For the opportunities, the first opportunities that we are embarked on a new journey for the Chinese modernization. The 15th Five-Year Plan has put forward a great blueprint for the high-quality growth and 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 five targeted areas of finance. Now the aging population has posed systematic changes of the risk protection demand, especially together with the transition 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 five targeted area of finance. We are we will provide the coordinated service from the risk protection, wealth management, eldercare, the tourism, and commercial insurance, etc., and also this provide greater growth potential.

Who grasp the opportunity in the patient finance will seek the golden 10 years, next 10 golden years. The third opportunity is from the wealth management.

The new 10 guidelines of the insurance sector is where was included in has set forth that the wealth management will be included into the main business of insurance, which is extended the meaning of insurance. There's a diversified demand for the wealth preservation and preservation and which was 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 preservation, and succession.

For the challenges, first is how can we respond to the low-rate environment and the risk spread losses. Now the rate yield is in a low level, and the financial exposure to the NSA, the real estate is decreased, and a lot of premiums come to insurance company.

How can we transform those premium into the long-term return to customers that can rest through the cycles and the fluctuations is a challenge and pose higher requirements for the operation and investment of insurance. It's that our company have 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. This means we need to promote the virtuous circle between the insurance plus service plus invest and provide the whole life circle service covering the product, medical care, health care, etc.

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. This is my answer to your first question.

About the the question about the opportunities and challenges facing NCI, and next I would like to answer your question about our strategic priorities in the 15th Five-Year Plan. The board and management team of NCI emphasized the strategic planning.

Since March last year, we started the formulation of the 15th Five-Year Plan, established a leading group and 10 working group, and we have hold three 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 coordinated development model of insurance plus service plus investment, practice the strategic direction of practice large insurance philosophy and build a strong NCI, and we will strive to build the leading insurance sector with life insurance with insurance as the core. 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.

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. Our general sub- a master plan has formulated, and the sub-plan has also covering a lot of areas of our business as well as the plans for the branches and the subsidiaries.

In the next 5 years, the blueprint is clear and specific. As a company who has rich heritage and aspirational about our future, we have accumulated many development foundations and premises.

For example, we have a strong asset and adequate solvency. Also we have nationwide distribution channel and institutions.

We have a strong investment capability and asset matching liability matching management. We have the talents and excellent brand and culture.

Next we will fully give full play our advantage and to bring the blueprint into a reality. In the next and realize a splendid development in the next 30 years.

We will focus on the four areas. First is to practice the strategy of customer-centered to improve the competitiveness of life insurance business.

This is also important direction I've experienced in the past 3 years. In the future, we will integrate those philosophy into all areas of our product.

In terms of product, team, service, operation, technology, we will take efforts and increase our capabilities to create competitive products to enrich our scenario-based, ecosystem-driven, and high-retention services. We will stick to high-quality and cost-efficient service and bring more friendly and scenario-based operation experience to customers.

Also we will, based on our strong investment capability and performance, to build our brand credit and to lead the market and improve their sense of gain. We will try to lead the market and improve their sense of gain.

We will be committed to the main business of insurance and grow the business. 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.

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 the interest reliance to value-driven, and to return the policy to the essence of business, to return the customers to return the service to customer, return the team to profession professional development. 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. We will implement the team as the foundation strategic main line to take efforts to increase the organizational development.

We have upgraded our fundamental law, our system system-based operation to build the WLP training system and increase the volume and productivity of our agent team. Also we have nurtured a series of of star agent and to create a specialized, large-scale, and high-quality entrepreneurial agents.

We will build a individual insurance and bancassurance dual-engine growth model for channels. We have a strong foundation and will further seek the opportunity aroused from the policy of align fee expense with assumptions and migration and accumulation of people's wealth.

We will improve the cooperation with banks and build a stronger bancassurance outlets and team to improve its volume and value contribution and to be a top performer at all respects aspects. 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.

We will upgrade this strong foundation project and to 3.0 version and to grow 1,700 subordinate entities of our company. Through our sustained and persistent efforts, hopefully with another 3 years we can build stronger foundation with vibrant vitality and a strong competitiveness.

We have 1,700 subordinate entities. These are the foundation for our company.

Thirdly, we will follow the coordinated development of insurance plus service plus investment to provide comprehensive financial service covering the whole life circle of our company. This is key to our comprehensive development, but also a critical to to deliver our commitment of bringing enduring protection, better health, and life to customers.

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 full of service. We will optimize and improve our service ecosystem covering 10 areas including the medical care, healthcare, financial, entertainment, culture, etc., and to create excellent medical care, healthcare, 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.

We will provide a comprehensive and active service as well including the health management and wealth management to meet a diversified needs of them and to create a new curve for our growth. For the investment, we'll increase our investment capability and diversify the investment strategy.

We will be a a major force in serving the real economy and serving the wealth of the people, and we will we will be commitment committed to our promise of providing enduring protection. It's easy for insurance to provide service for 1-2 years, but providing enduring protection is an essence and a key to the life insurance.

The life insurance needs to have enough capability, strength, fund to cash out and to deliver the commitment to the customers. We are determined to deliver this commitment.

It's easy to give protection for 1 or 2 year, but it's not easy to deliver enduring protection for decades. We need to accumulate strength in term of our our fund and comprehensive strength and to have strong investment capability.

The management team of our company in the past 3 years emphasize a lot about the investment capability. We can see the investment yield and return has increased a lot in the past 3 years.

We believe our asset is the time asset of the time, and now the investment of insurance is shifting from shifting its priority from the traditional bank, real estate, and nested asset to the investment in the equity and technology as well as the new productive forces. We will seek the opportunities in the 15th Five-Year Plan on the basis of the investment in the fixed-income assets.

We will embrace the investment in the equity asset, the technology asset to improve our professional and stable investment portfolio and structure and to shift our investment advantage into the market competitiveness of our company and to shift the long-term capital and patient capital into the high-energy strategic capital. This is the third aspect about our strategic priority.

We will strengthen the coordinated development of insurance plus service plus investment. We will be the comprehensive insurance and financial service provider covering the whole life circle of the customers.

Fourthly, we will stick to inform and innovation to build an innovative NCI. We will bring the reform of to the end and to follow the systematic, professional, and market-oriented reform and to promote the innovation in terms of our philosophy, system, management, pattern, the operation model, product, service, talent, data, and technology as well, etc., to un-shackle the barriers to that binding our development to play the full advantage of of a coordinate 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.

Lastly, I want to say, under the leadership of the Party committee of NCI and with the joint efforts of our whole system in the past 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 reform, we are more proactive in our effort of serving the national development strategy.

We are we have stronger foundation for the and better environment for our future development, and especially a series of development and reform measures and results has bring us greater cohesion and solidarity for our company and our corporate culture and have stimulate the enthusiasm of all the NCI employees and staff, and from the headquarters to subordinate entities, from event to the sales outlets, we are confident and determined to to seek further growth. This year marks the the 30th anniversary of our company and also 30 years hard working of NCI.

We will try to deliver the corporate culture of customer first, striving as foundation, open and inclusive, and excel in excellence, and try to seek excellence and be innovative and to build an enterprises with our with our pursuit of care and excellence, and we hope to build a century-old enterprises with strong foundation and trustworthy to customers. This question is excellent question.

This year, we will this year is the 30th anniversary of our company, and in the past 3 years we have a hard-working and dedicated dedicated work efforts to seek growth for our company. We will implement and practice our corporate culture in a new time.

We will seek excellence and try to pursue the excellence and excel of ourselves in the future. We will try to build our company trustworthy to our customers.

Hopefully we can contribute our strength to build a strong financial China and serving the Chinese modernization. This is my answer.

Thank you.

My question is regarding investment. Mr.

Yang just mentioned NCI has attached great importance to investment. Last year, regulator has encouraged insurance company to enter the capital market.

We noticed NCI has increased the equity investment share. My question is whether the company will still further increase equity investment share?

On the basis of relatively high equity investment share, what's your view regarding the impact of the equity market volatility to investment return and net profit?

Thank you for your question. Regarding equity investment, the company has placed great importance on the value and strategy of our equity assets in overall portfolio.

We are confident of the China's overall capital market development. We will continue to respond to the regulators' requirements for long-term assets to enter the market.

We'll consider our own asset-liability management needs and make an overall judgment for the pace and the size of the equity capital market participation. Second for your question, we have the three following considerations.

First, we will make a diversified asset allocation including industry diversification, the allocation between A and H-share market. Through portfolio, we reduce 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 attach 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 very important part for the 15th Five-Year Plan, for equity 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 individual insurance channel, and I want to know will you change your position of the individual insurance channel? 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.

They have a proud proprietary advantage in serving the customers. 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 ride through middle and long-term economic cycle.

Life insurance channel is an important channel for us, and we will further promote the channel and invest resources to realize sustained growth. 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 integrating the insurance plus service, benefits, plus scenarios, plus ecosystem, plus technology.

Through the integration of insurance products with those multiple factors, we hope to transit as a comprehensive supplier for customers. 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, etc. We can provide the core service including the medical care, healthcare, aged care, business, taxation, legal, entertainment, education, culture, covering the whole life circle of the customers and to build our economic moat.

For the scenario means we can show the service ecosystem and become a major carrier to meet the demand of the customers. We will shift from a hard occasions featuring strong conversion and weak engagement into the softer scenario featuring lighter conversion and strong engagement through a more specific and lifestyle-oriented scenario.

We can improve the engagement and experience of our customers. For the technology, we hope that through the AI and big data, we can have a more precise portrait of customers and have tailored benefits to our customers and make the sales more efficient and targeted.

Team is an important carrier to implement our new marketing philosophy and realize our core strategy. Hopefully we can give the confidence to our agents to engage with the customers, and we can further improve our ecosystem of service.

The new marketing model has shifted a sale of policies into the model of providing comprehensive solution to our customers. Hopefully we can build a professional iron army with strong and professional sales capability, the ecosystem service capability, and technology application capability.

This is my answer. Thank you.

Due to time limit, our last question.

I'm from Financial Times. The company has delivered strong services, established five service brands.

I would like to ask, what are the actual contributions and changes for the product and service innovation?

Thank you for your question. Just as Chairman and President mentioned, we have provide provided a software service to customers.

We have delivered good results from a field perspectives which are conductive to the business performance and the company management and management. I would like to mention a few changes from the following areas.

First, from scenario creation, we have 10 areas covering services. We have made some efforts.

For 10 scenarios, each scenario could directly contribute to the policy sales from the top to the bottom. Regarding product plus service, in the past year, we proposed the Yiyouyou, Kanghuyou, and Jiankang Anxin, and some very competitive service-benefit products, which embodied the product-service philosophy.

This helps build a better brand brand, achieve better results for empowerment. Second, regarding customer benefits, we have five service brands.

All of them achieved upgrade in 2025, which give make us market-competitive with peers. In order to have better customer experience, we accelerate the layout in a number of areas, be it education, eldercare communities, which make us more attractive to customers and a strong tool for the agents to sell policies.

Our President just mentioned, for individual channel agent empowerment, we believe our service empowerment has achieved sound results. The services have been quite welcomed by agents.

More agents have become have become more skilled in comprehensive development. Those agents benefit from the improvement of service brand.

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 promote 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%. Under 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 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 returns. We deepen professional and market-oriented systematic reform and strengthen to deepen our core business, achieved sound progress in high-quality development.

GW gross written premium, net profit, total asset had hit historical highs. Company's investment value has been enhanced.

We improve our information disclosure mechanism, make it more quality and high-transparent, do a good job with investor relations, interacted with capital market and retail investors smoothly through annual results announcement, roadshows, etc. We disclose our operation information.

We attach shareholder returns. In 2025, we again issued interim cash dividend.

Combined with final dividend, our total dividend amounted to 8.4 billion yuan, up by 7. 7.9%, hit historical highs, make investor share shared company's business performance.

Our A-share and H-share stock price rose by 46% and 150% respectively. Our total capital capitalization surpassed 200 billion yuan in 2025.

Thank you for your attention for our company. Due to time limit, this is the end of our annual results announcement.

If you have further questions, welcome to welcome contact us our IR team. Thank you for your participation.

Thank you.