Dear investors, analysts, good afternoon. Welcome to ZhongAn Online's 2026 interim results presentation.

I am Jiang Ling. Please allow me to introduce to you the management today: GM and CEO Jiang Xing, and DGM and Chief Investment Officer Gao Feng, and DGM and Secretary Wang Min of the board, and Mr.

Xu Wei. Mr.

Jiang Xing, please.

Dear investors, analysts, good afternoon. I am Jiang Xing, the general manager.

Thank you for join us joining us at ZhongAn Online's 2026 interim results presentation. I also want to express our gratitude for your continued interest and support for ZhongAn.

We remain steadfast in our core mission: technology-driven finance and delivering warm insurance. Our business scale continues to grow.

In '25, our ranking on the Fortune China 500 list improved further to number 400. Our prudent operating performance and solid capital position have earned recognition from reputable agencies, with Moody's upgrading our financial strength rating to A3.

At the same time, we have deeply integrated sustainable development into our corporate strategy, actively putting into practice the principles of inclusive and green insurance to reach more customers and populations in need, achieving synergistic growth across commercial value and social responsibility. On the AI front, we continue to promote the one-AI strategy.

At the foundational level, we leverage massive policyholder data and the insurance-focused multi-modal [corpora?] with the [Zhongyou Lingxi?]

AI Middle AI Platform, providing engineering-level management and control. In the first half of the AI the year, the token consumption exceeded 34 trillion.

Last year it was just 3 trillion. This speed is actually driving the evolution of the product, covering our product, and also the underwriting, the claims, the compliance, and the operational analysis.

Through AI, we can improve our quality, and uh help us deliver better services to users. Next, I will provide an overview of our overall operating performance for the first half of '26.

In the first half of the year, we achieved gross written premiums of uh 16.558 billion, roughly flat compared with the same period. Under new accounting standard, insurance service revenue reached 16.989 billion, representing a year-on-year increase of 12.9%.

Adhering to our strategy of quality-driven growth, our combined operating ratio for the first half stood at 95.5%, improving by a few percent compared to last year. Underwriting profit grew by 70.8% up to 773 million.

Total investment income from insurance assets amounted to uh 1.596 billion, up to 150% year on year. In summary, for the first half of '26, we achieved net profit attributable to owners of the parent of RMB 1.55 billion, representing a year-on-year increase of uh 132.2%.

Our Hong Kong virtual bank, ZA Bank, recorded net revenue of uh 578 million, up to 26.6%, and a net profit of uh 71 million HKD, uh roughly 1.5 times the level of the same period last year, demonstrating the continued release of profitability from our digital banking operations. Then let me introduce to you the channels and brandings.

They are our bridge to users. We maintain an omni-channel approach to user acquisition and work to build brand uh mindshare across all touch points.

In our user operation, we continue to optimize the experience on our proprietary online platforms, providing users with one-stop insurance service. As of the end of June, uh the number of new insured acquired uh through our proprietary channels reached 36 million, with an average of uh 1.7 policies per user and the policy renewal rate remaining at a healthy level of 88%.

Our focus goes beyond customer acquisition. We place greater emphasis on customer retention and deep and engagement, building lasting trust in ZhongAn and communicating our brand promise: protecting every kind of life.

Beyond online operations, we also deeply got involved in scenario-based brand building. In the health and fitness space, we have made significant inroads into the event-based scenarios over the past period.

We provide insurance covering 250 mass participation sporting events, covering 3 million participant and staff exposures, with total brand impressions exceeding 100 million. Through our brand campaign, Love Sports, Choose ZhongAn, we bring insurance protection into live active lifestyle scenarios while helping our users lead healthier lives.

Next, please allow me to introduce to you the progress. First, healthy uh life.

The premium uh increase to 3.406 billion uh, and the average premium reached uh 600 and uh 50. We build multi-layer matrix.

The two core brands realized the accurate coverage of the group. In the Zunxiang Yisheng, we expect uh the revenue of uh 3.406 billion.

The premium continue to grow by 65 uh 60%. With our high-end 2026 uh version of uh product, we got very good feedback.

For the coverage of the two products, including the million-level of uh uh major disease and critical illness policies and mid- to high-end medical insurance, we are meeting the differentiated needs of the users. Alongside with our personal health insurance offerings, our group insurance business achieved a major breakthrough, becoming a new growth engine for the health ecosystem.

Relying on the AI infrastructure, in the first half of the year, our business grew by more than 57.5%, and the growth is worth uh noticing in the future. In terms of the health insurance, on the service end, uh we continue to leverage the AI to continuously refine the integrated insurance plus healthcare service loop.

We have consolidated full-process services, including the health management, uh extending the uh insurance coverage from post-claim compensations to end-to-end health protection while enhancing the user experience through all touchpoints. In the digital life, I would like to emphasize on the key innovative business line: pet insurance.

In the first half of the '26, the GWP reached 691 million, uh representing a growth of 22.7%, maintaining steady growth. During the first half, we served over 1.61 million pet owners, with service penetration continued to rise.

On the product front, we centered around our pet insurance brand, Zhongchongbao. We have built a comprehensive protection matrix covering pet medical care, critical illness, accidental injuries, and cancer protection for senior pets.

We collaborate with more than uh 18,000 pet hospitals offline, supported by a dedicated care concierge service, uh offering appointment scheduling, referral coordination, direct claim settlement, pet health consultation, and guidance. Notably, we have launched the country's first parrot insurance product, expanding our coverage into the exotic pet segment and uncovering new opportunities in the niche market.

On the service capability front, AI has been deeply embedded throughout the entire pet insurance workflow, enabling us to serve millions of pet users at scale while seamlessly integrating insurance and healthcare services into an integrated insurance plus service offering. Within the digital life ecosystem, while maintaining a steady performance of our core user uh with in our core uh e-commerce and travel business, we continued to roll out product and service innovations and capitalized on the growth momentum of low-altitude economy.

Our GWP in this segment achieved uh 27% year-on-year increase. In addition, our operations covering SME protection, home property insurance, personal scenario-based coverage, and accident protection for sports scenarios have been growing across multiple fronts, uh consistently meeting the risk protection needs of our groups.

Next, let's take a look at the auto ecosystem. In our auto ecosystem, we continue to build a strong foundation for the independent growth business growth in the first half.

We reached uh 1.54 billion, uh up by 4.2%. We continue to capture the tailwinds of the booming new uh energy vehicle industry in the first half.

The NEV insurance GWP grew uh by 105.7%. The overall percentage of uh the NEV insurance is up to 36.5%.

Then, the we remain focused on the private passenger car segment, which accounted for 83.5% of the total auto GWP, delivering solid auto insurance margins. We also used AI and other technologies across the entire automotive industry service chain.

Through AI-powered video claims processing, we have re-engineered claims service efficiency and enhanced user experience, further consolidating ZhongAn's competitive edge in the internet auto insurance space. Finally, in our consumer finance ecosystem, in light of a challenging external environment, we have proactively scaled back business volume and outstanding loan balances.

In the first half, GWP in the consumer finance ecosystem decreased to RMB 560 million, down by 79.2% year on year, while outstanding loan balances have been uh consistently reduced from uh uh 22.9 billion at the end of last year to uh 8.5 billion. At the same time, we have managed operational risks effectively, with overall risks having been uh materially mitigated.

The consumer finance ecosystem continued to contribute underwriting profits in the first half. That concludes the key business update for ZhongAn Insurance for the first half of uh '26.

Now, I would like to invite Wayne to share an update on ZA Bank's development in '26.

Thank you, Simon. Let me now walk you through ZA Bank's business landscape.

For ZA Bank, as the first digital bank to uh commence operations in Hong Kong, after six years of development, ZA Bank has integrated six core financial capabilities: deposits, transfers, loans, card spending, investment, and insurance into a single app, delivering a truly one-stop digital banking service uh experience that fully addresses customers' comprehensive financial needs. Built upon this uh full-service foundation, our investment business is the second growth engine that we are strategically building.

Looking back at our product evolution, we started with mutual funds, and gradually expanded into forex, US equities, cryptocurrencies, and Hong Kong stocks. We completed the closed loop of our investment.

For example, we started uh the HK IPO subscription services, providing one-stop support for the Hong Kong stock IPO applications. In April, we enabled direct HKD subscription of USD uh denominated funds, lowering the barrier of customers to allocate USD assets.

In June, we launched the Cross-boundary Wealth Management Connect, becoming the first digital bank in Hong Kong to offer the Southbound Connect services. In the first half, in our investment customer assets under management grew by 155.4% year on year, demonstrating very strong momentum.

Going forward, we will continue to enrich our investment product suite and and expand customer AUM, drive sustained growth in non-interest income such as brokerage commissions and fees, build a long-term sustainable growth engine. In terms of the finance, ZA Bank also remained strong.

At the end of June '26, the total asset reached of 2. 26.819 billion HKD, uh up by 7.9%.

For the net margin net revenue, it reached 578 million, up by 26.6%. As for the net fee and commission income reached uh 375 million, up by 25.9%.

Net uh service and fees it was 123 million, up by 75.7%, representing fast growth. Then in terms of uh net interest margin, uh we improved from 2.38% to 2.99%, with an increase of uh 61 bp, demonstrating continued optimization of pricing capability in the current interest rate environment.

In terms of profitability, we realized a net profit of uh 71 million HKD, roughly 1.5 times that of last year. The net margin improved from 10.8% to 12.2%, continuously releasing the profitability.

Since its launch in 2020, ZA Bank has completed the full cycle from zero to one and from losses to profitability. Today's results validate the sustainability of the digital banking profit model in the Hong Kong market.

Now, I would like to invite Gao Feng to walk us through the financial review.

Thank you both for the detailed business reviews and summaries. Now, let me walk you through the company's overall financial performance for the first half of '26.

In the first half, we proactively adjusted our product mix. Domestic P&C GWP remained stable at uh uh 16.558 billion, down by 0.6%.

The active adjustment didn't impact our uh overall business scale, laying a solid foundation for the high-quality growth uh going forward. Then in terms of ecosystem, starting with health, driven by both individual insurance including the personal clinic policy and Zhongminbao.

Uh actually, the GWP reached uh 6.7 billion, up by 7%. For digital life ecosystem, GWP grew significantly uh by 24.7%, uh mainly due to the pet insurance and other innovative products uh up to 7.743 billion.

In auto ecosystem, uh the GWP reached 1.541 billion, up by 4.2%. In the first half of the year, we also actively uh pressed down, scaled back our GWP to uh of the consumer finance ecosystem down to uh 51 560 million, down by 79%.

With the new uh principle of HKFRS 17, uh the GW the service income went from uh 15.041 billion up by 12.9% to uh 16.989 billion. Then, for the uh health uh ecosystem, uh premium went up by 16.6%.

Digital life uh went up by 31.7%. Auto uh up by 26.7%, and uh consumer uh finance down by 46.5%.

Benefiting from the uh consistent strategy of quality-driven, sustainable growth, our combined operating ratio under the HKFRS 17 further improved by 0.1 percentage uh up uh to seven 95.5%. The uh overall uh loss ratio was uh 56.9%.

The COR was 38.6%. Then if we take a look at the uh health ecosystem, uh the loss ratio was 43.9%, up by 1.4 compared to '25.

Then for the digital life, the uh comprehensive cost ratio uh optimized by 0.7% to 99.2%. The uh loss ratio and also the expense ratios change was uh uh due to the structural change.

Then for the auto ecosystem, the COR was 93.3%. Uh the uh primarily it was uh reflecting the normal structural changes and uh such as the NEV insurance and compulsory third-party motor insurance uh account for the growing share.

Finally, the consumer finance ecosystem COR uh was uh 95.6% with the loss ratio trending upward a bit uh due to the external environmental factors affecting the underlying asset quality. We have still maintained robust risk control, and the consumer finance ecosystem continued to contribute underwriting profits.

Then let's take a look at investment. Uh the first half of uh '26, the company's domestic insurance investment income achieved substantial growth, with total investment reaching the uh RMB of 1.569 billion compared to the 639 million in '25, up by 150%.

The annualized uh return of investment was up from 3.3 to 7.8%, and actually, uh the net investment yield increased from 2.1% to 4%. Then in terms of the asset allocation as of June, uh the domestic insurance investment assets stood at RMB 41.487 billion.

We we maintained the fixed income plus allocation strategy, and the uh equity and uh equity funds right uh rose from uh 9% uh at the end of '25 to 13% in June in '26. We realized the simultaneous growth in investment income and asset appreciation.

In the first half of '26, uh our insurance business continued in steady development, with insurance uh service revenue achieving steady growth in both underwriting and overall insurance segment profit, continuing to improve. For the technology segment returned to profitability, ZA Bank's profits were further unlocked.

As a result, the net profit attributable uh went from 668 million to uh 1.55 billion, up by 132.2%. In terms of the capital, uh as of June, the company's comprehensive solvency margin ratio stood at 287.7%, and its core solvency margin ratio at uh 279.3%, which realized quarter-on-quarter growth in both.

Uh mainly, it's from uh the change of the registered capital. Uh we further consolidated our capital.

Looking ahead, we will remain true to our original aspiration of technology-driven insurance. We'll continue to deepen technology empowerment, refine our products and services, and precisely match the evolving evolving and increasing uh diverse protection needs of our users.

Going forward, we'll continue to pursue the operation and high-quality development. Finally, on uh behalf of the management team, I would like to express our uh sincere gratitude to users as well as our appreciation to the investors and analysts.

Then we will start the Q&A.

Please provide your name and affiliation before asking question. Please ask no more than two questions at the same time.

Thank you for the opportunity. I'm from uh Zhongjin.

Uh congratulations on the outstanding performance, from the underwriting to the investment, from insurance to banking. Uh the performance has been great overall.

I have two questions. One is for the health insurance.

We saw that in health insurance, ZhongAn had been making uh proactive explorations. Mr.

Jiang talked about the service infrastructure. I think that's an important uh method to build the edge.

Please share a bit more on the service infrastructure of health insurance. Second question is for the Hong Kong bank.

Uh I'm very happy to see that uh ZA Bank has went has gone from zero to one. I would like to know a bit more about the planning and the target for uh the next step forward.

Thank you.

Let me answer the health insurance. For health insurance, we always think that the insurance doesn't stay at the claims.

It needs to cover the whole recovery process. For our uh health insurance investment, it's about building the insurance plus plus healthcare plus the uh health management.

I would like to further share a bit more. First, for the demography uh coverage breakthrough, we extended from health to the chronic patients.

From traditional health insurance, what for the traditional uh insurance, it didn't include the chronic patients. Then for our new product, it's designed for that gap.

The overall premium continued to grow, and that validated the direction of the rigid demand. For the chronic disease patients covered, uh it's not just about uh that single innovation, and actually, it's about the support of the pressing power as well on ZhongAn.

That is thanks to our core insights and know-hows that we accumulated throughout the years. Second, it's about our value-added, the added value provided by our service.

For our Zhongminbao, and in that product, we included the recovery cost of more than 16 different illness in our coverage. At the same time, we broke through the line of uh the diagnosis and outpatient, and now we're also promoting the other products covering the pre-diagnosis and the post-treatment.

Finally, we want to talk a bit about our 2B product, which is making a lot of progress. We saw that the healthcare need is reflected on the 2B side, with employers employers covering their employees.

We actually accumulated a lot of scenarios and service network and AI capabilities, and we actually migrated that to the uh enterprise uh healthcare insurances. Uh we mentioned that in the first half of the year, we increased by 57.5% uh, and that becomes our fastest-growing segment.

I think it not only reflected uh our progress, it is actually an important carrier of the scenario, because for enterprises, people tend to congregate there, and it actually has the advantage of uh having more data. It's better for intervention and it's better for risk management on the crowd.

In the future, we will continue to promote the product innovation and continue our infrastructure building. On the service end, we want to improve our capability to cover the recovery phase, so that in healthcare, health management, and recovery, we can evolve towards a comprehensive platform covering all that.

Thank you.

Thank you, Simon. Thank you for your attention on ZA Bank.

Actually, ZA Bank is positioned as the one-stop service provider for the uh finance management. In looking into the future, we will continue to improve that platform and provide more comprehensive, professional, and robust banking and investment services to our customers and provide long-term values.

If you look at the first half of '26, you can see that in terms of the user scale growing, at the same time, we're promoting the new products and new functions. We have launched the HK IPO uh subscription service, and also the HKD directly to the US equities.

We used our matrixes uh and we are improving the engagement of the users to improve our profitability. Actually, we also started the cross-border uh investment connect, well which is the first digital bank in in Hong Kong for us.

That's that reflected our continuous effort. Then in the wealth management part, uh with the Hong Kong equity and US equity and cryptocurrency, based on that, we want to expand to more portfolios uh categories and try to build the closed loop for the funding of the users.

Then we can increase our AUM and also the revenue and contribute even more for that. Thank you.

Thank you for your question. Please wait for the next one.

Thank you for the question opportunity. Uh I have two questions.

On the investment, and we saw that in the first half of the year, uh the growth had been very good, 1.3 times. For the uh return of investment, it's 1.5 times.

Can you have a breakdown for us on investment, especially on the uh percentage of uh the um equity assets, and so on? Then I want to ask about the autos, because in the last four years, it has been our growth driver.

We saw that the premium uh growth rate was slowing down to 4% in the first half of this year. Can you give us an outlook for the next half of the year or next three two to three years uh in terms of growth rate, and is there any uh other things to look forward to in terms of the expansion of that business?

Let me answer the investment. The investment was performing quite healthily.

Our total asset was uh 41 billion, and our return was uh uh 1.5 billion, up by 150%. The annualized uh return was 7% so it's a better than average.

Then for our uh equities actually is uh higher than the average of the industry by 1%. We are relatively high in terms of the proportion of equities and uh uh equity funds.

We will keep that to uh 8 to 8.5%. We won't further enlarge.

In Q3 for the equity and equity funds investment, we will try to tighten a bit. In the future, we will try to take into account the macro environment and try to actively change our position.

When the market is in correction phase, we want to allocate high-quality asset. When the valuation is too high, we will try to tighten up our exposure.

We will focus more on the lower-yield fixed uh income uh. Then, in terms of matching the debt with our asset, and then we want to seek robust strategy.

Thank you for the uh question, Rick. In the first half, for the auto premium, we were under a bit pressure, and the growth was uh 4.2%.

Uh on one hand, the EV market actually slowed down, and the growth rate was actually lower than expected. It's not just about the auto insurance.

We still want to focus on the quality. We want to screen the high-quality customers.

I think this slowdown is just temporary, and uh well, the logic is that we want to improve the quality. In the future, we're still uh bullish on the penetration of uh NEV.

Looking into the second half of the year, I think there will be some quarter-on-quarter recovery of the business. With the car ownership uh increasing, we still see that there are a lot of new opportunities.

We want to enlarge the percentage of NEV, and also we want to use the AI capability to improve the uh quality of the insurance, and want to we want to expand the percentage of auto insurance in our portfolio. License is an important thing.

In Zhejiang, Shanghai, we already are independently running the auto insurance. Uh we hope that we can expand uh to other regions so that we can build a foundation for the future growth.

We hope that there will be good news in that front. Thank you.

Thank you for the question. Let's wait for the next one.

Thank you for the opportunity. I'm Michelle from CitiBank.

I have two questions. First, we saw that Mr.

Jiang mentioned about the pet insurance uh looking strong in the first half of the year, uh 23%, uh 691 million. We saw that in this segment, there are more and more listed companies.

We realize that uh things are communicated a lot in this front. I want to ask that does ZhongAn have any tactics or strategies in this segment?

I saw that you have a new parrot insurance. For this, uh I just want to ask your uh thoughts behind it.

Uh we saw this big uh downfall of uh more than 80% of a specific segment, right? Do we want to exit or do we want to just manage it well and wait for the change?

Thank you, Michelle. Let me as- answer the uh about the parrot insurance.

The other is about the consumer, right? Later uh uh my colleague will answer.

For the pet insurance, this is a segment that we are bullish for the long term. It's not really about how big the market is, but it's actually about we established our ecosystem uh moat already.

The second thing is about the potential of the market. We saw that there are already 100 and uh 26 million pets in China and the pet economy has been booming.

Pet insurance is only 4% in penetration. From different kinds of statistics.

In the first half of the year, the premium was already 691% uh 91 million, up by 22%. We are serving more than uh 1 million pet owners.

You see that the penetration is still very low. We still have a lot of potential.

In terms of product innovation, we still need to strengthen cat and dog category. We want to differentiate in the already established segments.

At the same time, we are actively deploying the segments outside of cat and dog: exotic pets, because we discovered that the exotic pet is on the rise, for example, the birds and bugs, and reptiles, and so on. Things are enlarging there.

Recently, we have launched the pet insurance, and uh that is one of our attempts recently. For the exotic pets, uh considering the attributes and considering the scenario, they're totally different from uh uh cat cats and dogs.

We need to have the new pricing and the new service network. That is the that reflects the value of the AI capability that we accumulated.

We can just try to copy and paste the methodology that we accumulated in cats and dogs to more segments. I think for the pet insurance, that's definitely a a great partner for the pet owners.

For ZhongAn, we've been uh a veteran in this field, we definitely have the uh early starter advantage. We want to continue to go deeper uh in this market.

Thank you. Then for the consumer financing, uh Gao Feng, please.

Consumer finance ecosystem, uh we actively changed the segment in 2026, in the first half. We are actually pressing down the scale.

The premium went down by 79%. The total balance was only 105 million, uh down by uh more than 50% compared to '25.

The industry was facing the correction uh risk, but due to our robust principle, we still maintain very good quality in our asset. The uh combined uh ratio was uh 95%, further improved compared to last year.

In the second half of the year, we will actively further shrink our business. Uh the latest result is that the balance was within 8 billion and our asset still remained robust.

Thank you.

Thank you for the question. Please wait for the next question.

Thank you for the opportunity. Uh my name is Wang Dan.

I have two questions. First, about the underwriting side.

In the first half, the premium growth rate was slowing down. Actually the underreading underwriting profit uh was up by more than 10%.

I think that's a good improvement. Now the company is shifting from scale-oriented to profit-oriented.

Can you give us an outlook on the future in terms of the uh growth points of uh underwriting profit, where are they? In the next three years, uh do you have like a CAGR target of the underwriting profit?

That was the first question. Second question, for the health insurance.

For the health insurance, uh the COR was maintained very healthily. I think the expense ratio was uh controlled very well, and it compensated the uh worsening loss ratio.

What is your view on the uh stability of the COR of the comprehensive health insurance, and is there any more room for the uh improvement of fees and expenses? Then in terms of the loss ratio, uh do you have any methods to control that to be stable?

Thank you.

Okay. Uh very detailed question.

First question, for the underwriting profit. Right now for the consumer finance, we are shrinking actively, uh because we are making the strategic choice, and so things are better than our expectation.

We are actively avoiding the risk of the volatility in that front. In the future, we will not just seek fast expansion of uh the premium.

Uh we will really look at the actual need of the consumers and actually uh focus on the innovation and optimize our business uh structure. First, we want to go deep on our core uh consumers, and we want to uh try to take advantage of their diverse need.

Second, we want to further enhance our digital capability to improve their uh experience and improve the renewal. Then for the auto and pet insurance, we want to have differentiated innovations, we want to have refined uh pricing, and then expand into newer segments, and continue to improve the overall portfolio to guarantee the underwriting quality.

Then for the health insurance, for ZhongAn, we've been running that business for more than 13 years. We have gone through multiple cycles, and from our previous finance performance, you can always see the resilience of our profitability.

You can see that in the first half of the year, health insurance COR was very stable, and for the loss loss ratio was up it was because of the structural change. Then for AI in every segment in every link of the health insurance, uh in the long term, if we use the historic data to iterate our risk control, we can always uh maintain a controllable risk in risk level in this segment.

Thank you.

Thank you for the question. Let's wait for the next one.

Thank you for the opportunity. I'm from Bank of America, Michael.

I have two questions. First question about AI, because among all the companies that we cover, uh ZhongAn is the most scientific or high-tech.

You said that you also burned a lot of token. In AI, we are actually uh at the upper hand, right?

For AI, uh what kind of uh help are we seeing exactly? Like for example, cost downs and efficiency improvement?

Second, uh people are worried that yeah, you are burning a lot of token. On the expenditure side, will numbers go up?

Can you give us an introduction? Second, uh I saw that in the slides, you mentioned that for your uh self-operated uh channel, things are going very well.

What is your like direct business, uh what is the outlook there and what is the distribution of resource of uh self-owned business and the distributed?

Thank you for the question. This year, we consumed uh a lot of tokens.

It grew by a lot, but there's good news, because you know to consume that much token, you need the scenario, you need certain levels and capabilities, right? The good news is the uh cost of LLM is getting lower.

The cost is still within the uh in-control scope. Apart from the LLM, uh we are actively deploying and developing our own small model uh to improve the ROI and balance it out with the big model.

I want to talk about our uh AI strategy, and AI is not just a standalone thing. It's a tool.

It's the dual engine of uh insurance and tech. Uh AI is an important carrier of that.

We cover the tech, uh the uh user operation, and the overall uh loop. We have the confidence and capability to merge AI into insurance and the whole value chain.

From several aspects, in terms of the business efficiency, we penetrated AI uh into the whole loop of uh the verification and uh the claims, and so on. With the automation, we can improve our operation efficiency and optimize our cost structure.

On the other hand, uh we have risk-based pricing uh system enabled by AI to make our profit model more robust, and we can be more robust and resilient against the pet cycle. Then, on the user operation side, AI can help us uh and to run the users in a more refined way to have better insights on the demand of the users.

We can use AI to drive the smart services and uh lean uh operation to improve our scenarios and services and expand our new scenarios, and they are the reflections of how we use AI. For example, uh for our customer service, for customer services, they have a limited memory, right?

They don't remember a lot of things on the consumers, but AI can help them remember a lot of things. Throughout the lifecycle, the data would be labeled.

When it comes to the future, we will further improve our AI capability to deepen uh the closed loop of uh all the chains and improve the risk control. Also, we want to improve the AI agent enforcement or implementation or digital employee, and we want to use AI to continue to improve the product and to improve the user operation to mine the newer product to use the tech to drive our company's uh high-quality and stable stable growth.

With the AI new innovations, it brings new risks, we would spend more time to build up our infrastructure to uh take care of the compliance issue and the risk issues brought by the AI. Then, for our uh self-owned business and distributor, as you mentioned about the strategy and uh the thoughts that we can share.

In ZhongAn, for our direct business or own business, that is the core strategy for our future sustained sustainable growth. In terms of the growth, we adhere to the dual-engine drive of uh self-owned business and uh partners.

We always uh want to adhere to the high-quality service and allocate our resource uh according to that. Self-owned business is always our core brand and our core battlefield, and that is also the core uh like testing ground for the new innovations.

For the direct business, we can uh directly outreach to our customers. Aside from that, we also have more than 300 uh ecosystem partners that continue to bring customers to us.

In the future, we will uh put in more stakes on the direct business or self-owned business, and we will rely on our product strategy uh like ZhongAn Sports to uh embrace the sports products uh so that we can reach the younger uh user base that love sports, and also we can improve the quality of our user base. At the same time, we can use our short video short-form video and other platforms uh apart from uh precisely reaching our customers, we can still output our image of ZhongAn.

On the other hand, we'll continue to rely on the AI refined uh user operation to improve our renewal and also value per customer. Because, the best branding activity is the word of mouth by our users.

That is something we need to continuously work on. For the ecosystem partners, since there are more than 300 uh from online to uh offline brokers and agents, we are launching uh higher efficiency innovations in the product, and we have gained very good results.

Today, we are maintaining very good health in self- direct business and distributors. Okay.

Thank you. Please

Since time is limited, that is the end for today. On behalf of ZhongAn Online, on behalf of the management, I want to thank you for participating.

Thank you for your participation. You can leave now.

Thank you.