New China Life Insurance Company Ltd.

Ladies and gentlemen, good afternoon. NCI 2025 Annual Results announcement will officially start.

Thank you for the investors, analysts and friends from the media for your participation from online and offline platform. I'm the host of the meeting.

First, let me introduce the senior management participating in today's meeting. They are Chairman, Mr.

Yang Yucheng; President, Financial Principal, Mr. Gong Xingfeng; Vice President, Mr.

Qin Hongbo; Vice President, Mr. Wang Lianwen.

We also invited Mr. [indiscernible], NCI AM President and NCI AM Hong Kong Chairman to participate in the meeting.

We also have the honor to invite the independent directors of the company to participate online. This meeting is divided into 2 parts.

The presentation and Q&A session. We will provide simultaneous interpretation.

Let's move to the presentation part. Please welcome Mr.

Yang Yucheng to introduce 2025 business performance of the company.

Dear investors, analysts and media friends, welcome to 2025 annual results announcement of NCI. We thank you for your long-term support to our company.

The year 2025 marks the final year of 14th Five-Year Plan and it is also an extraordinary year for NCI. Facing a highly stressful and complex internal and external environment, our employees have worked hard throughout the year.

Our business performance has reached new heights, building on a high base. Multiple key indicators such as total assets, gross written premium, EV net profit, share values and total market value have all reached record highs, presenting the most outstanding performance since the company's establishment.

The company's operation is characterized by excellent performance, optimal structure, rising value, stable returns, abundant vitality and strong resilience. In 2025, the company's total assets was close to RMB 1.9 trillion, up by 12.2%.

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

Net profit was RMB 36.3 billion, up by 38.3%. The company [indiscernible] promise to shareholder returns and share the fruits of its business development with investors.

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

Relying on excellent performance, our stock price has continued to strengthen through the year with the increase leading the sector in both markets. The total market value surpassed RMB 200 billion.

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

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

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

The total investment (sic) [ total investment income ] was RMB 104.3 billion, up by 31%. Total investment yield was 6.6%, up by 0.8 percentage points.

Core solvency has remained adequate. We have embarked on a high-quality development path of growth in premium and value and optimization of structure and quality.

Both premiums and business value have seen comprehensive strength. FYP from long-term business increased by 48.9%, FYRP rose by 36.7%, and NBV margin and EV have all achieved significant improvements.

From structure perspective, FYRP in FYP exceeded 60%. Renewal premiums continued to play stable, rising low.

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

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

24-month (sic) [ 25-month ] persistency ratio was 93.3%, increased by 7.1 percentage points. Surrender rate was 1.5%, decreased by 0.4 percentage points.

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

The investment in serving the 5 major areas in finance exceeded RMB 360 billion. For inclusive finance, we improved inclusive finance products, underwritten 46 people's welfare projects.

Investment in the inclusive field has reached RMB 55.6 billion, while pension finance, the second and third pillars of pension have been vigorously developed. The total premium on the third pillar commercial insurance annuity exceeded RMB 60 billion.

For technology finance, we provided over RMB 1.2 trillion in risk protection for 14,000 technology enterprises with investments reaching RMB 140 billion. The company has leveraged its patient capital advantage to support technological innovation.

Our medium- and long-term fund entering market project was selected as an outstanding case in the 2025 CCTV Finance. For green Finance, the focus was on investing in areas such as green bonds and public REITs for clean energy with investment reaching RMB 75.1 billion.

we have been awarded as outstanding ESG case by the Publicity of Education Center of the Ministry of Ecology and Environment. For digital finance, we supported for the development of digital industry enterprises with investment balance exceeding RMB 68 billion.

By 2025, we have fulfilled social responsibilities and demonstrated the commitment of state-owned enterprise. New achievements were made in rural revitalization with a total investment over RMB 70 million.

For 9 consecutive years, a public welfare project to care for sanitation workers have been carried out, benefiting 6.7 million people. Resources will eventually be exhausted, but the culture endures and thrives.

The 2025 was designed as the year for promoting the company's corporate structure. The company practiced a new era of corporate structure.

Our corporate value is company first (sic) [ customer first ], hard work as foundation, openness and inclusiveness and success in action. Our NCI professional iron army spirit was professional iron army, pursuit of excellence, benevolence and virtue, inheritance and innovation through organizing honor evaluation, speech contests, special lectures by renowned teachers.

We have widely carried out 150 cultural promotion activities among employees. And agents held the 2026 Agent Summit and rewarded outstanding teams and individuals and the inspiration of the corporate culture.

Enthusiasm of high morale sales team is high and coherent of the company has reached a new high. Our brand awareness and reputation has been improved.

Sponsored high-speed rail over 20 marathon events provided full support for Suzhou Super League and WTT Chinese tournament, launched the brand IP, Xinli Bao, demonstrating a brand image that substantial brand vitality and strength with stable operation and outstanding service. The cohere and influence of the company culture has been enhanced, ranking among the Fortune Global 500 and top 50 global life insurance company.

After more than 2 years of hard work, the company has made a considerable and gradual progress in all aspects. The dividend reform have been released.

The momentum of value growth has been strong. Business structure has been optimized.

Quality of development has been enhanced. Looking back to development in the past year, we have carried out the following key tasks.

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

After extensive research and 3 rounds of seminars, we proposed the development vision of building a first-class financial service group in China with insurance business at its core. We formed 3 strategic lines, customer-centered, team-based, and employee partner-oriented.

We aim to provide enduring protection, better life and greater health customers, create a culture of love and fulfill the dreams of entrepreneurs for our team, strive for growth, consistently innovate and support and realize the idea of serving the country and people of our employees, like better products, better services and better life with NCI. We clearly focus on the coordination of fronts, promote reform and innovation, moving towards the direction set by our strategy centering on strategic main lines, deepening and solidifying the coordinated development of insurance plus service plus investment and further promoting professional market-oriented systematic reform, launched a series of combined measures for reform and development one initiative in market competition.

From a grasp of flagship products, promoted transportation (sic) [ transformation ] to par products, we made efforts to optimize our business structure. We have established a dedicated team with highly competitive products as the driving force.

We provided this systematic support for the transformation in terms of team training, ecological collaboration and assessment guidance. Over the past year, the company's par insurance has been gradually made breakthrough and reached a favorable state, achieving FYP of RMB 11.9 billion, an increase of nearly 12x year-on-year.

Substantial and significant progress has been made in product transformation. We'll be making efforts to enhance the competitiveness of our products, establish diversified product matrix centered on customers, and covering the entire life cycle in which a variety of wealth management products and pension products.

Launch innovative products such as [indiscernible], deeply integrate insurance claim settlement with medical service and nursing services, achieve a transformation from traditional claim settlement to product service ecosystem. Adhering to the concept of finance for people, we improved the inclusive product system, launched over 20 inclusive products and rural revitalization products covering multiple groups, built a comprehensive high-quality and refined diversified product system.

We deepened our efforts in China and team building accelerating breakthrough in business transformation. In individual training, we have strengthened the system base management by self-dependent operation.

We advanced build a high-performing team with strong units, Longteng Fengwu and WLP Entrepreneurship Support Team. These efforts have solidified the foundation for our team.

We have built an ecosystem scenario and benefit system, established one-stop digital marketing platform, development of the new modern marketing concept of product plus service plus scenario plus technology. The company's FYP from long-term insurance in the individual channel grew by 43.8%.

NBV grew by 19.4%. The workforce size stabilized.

Average monthly comprehensive productivity per capita rose by 43%. We have elevated the bancassurance channel to a strategic level seizing the opportunity.

We continue to deepen product transformation and team building based on significant optimization of cost structure. Total bank premium reached RMB 72.1 billion, growing by 40%.

FYP from long-term business reached RMB 37.9 billion, up by 52%. NBV reached RMB 5.27 billion, a substantial increase of 111%.

The bank channel contribution to new business value has surpassed that of the individual channel, accounting for a significant share. We improved our service ecosystem and advanced service empowerment system from scratch from basic to excellent, upgraded our major service brands that cover the areas.

This ecosystem is designed to deliver excellence in medical care, health management, senior living and cultural tourism, providing diversified personalized service to clients and families, enhance service capabilities and improving client engagement service. It covered over 4 million individuals with increasing awareness and usage.

Through the development of this service ecosystem, we aim to upgrade the empowerment experience, guiding the team to transition from traditional marketing to the modern marketing concept of products plus service plus scenario plus technology, help agents enhance their self-dependent operational capability and realize their entrepreneurial dreams, increase our investment in AI and technology to enhance customer service capabilities, levering technology to empower operation, providing ultrafast service to agents and clients. The company's one-minute completion rate for policy service stands at 96%.

We paid out more than RMB 42 billion in maturities and annuities over the year and RMB 14.7 billion in claims. We launched 11 large model intelligent agents and NCI Digital Human Ambassadors.

All have empowered service and improved business growth. We have enhanced our investment research capabilities, built a comprehensive edge on the investment side, strengthening our ability to deliver enduring protection.

In 2025, our total investment income reached RMB 104.3 billion, up by 30.9%. Total investment yield was 6.6%, up by 0.8 percentage points, ranking among the industry leaders.

The company improved investment management and asset liability correlation. We continue to improve investment attitude.

We expanded our team of investment professionals cultivated and recruited outstanding talent, established investment research and asset allocation system capable of capturing policy market and industry opportunities. We increased allocation to OCI, long-term equity investment and PE, addressing the past shortcoming of having a base by lacking an active base on the fixed income asset income.

We invested in convertible bonds, bond funds and other diversified assets, reducing negative interest spread and reinvestment risks. In response to the requirement for long-term capital to the market, we established 3 pilot funds with China Life for a total contribution of RMB 46.25 billion.

We strengthened the development of our investment ecosystem, enhanced coordination with various institutions, good use of financial resources, reinforced investment risk management, controlled credit risk, managed market risk, optimized multilayer risk buffer system, built robust investment management capabilities, striving to achieve excess returns on the basis of long-term stability, focused on strengthening foundational management to solidify the company's high-quality development, build powerful quarters, clearing the role of head of office for design institution for execution. Took the lead in strengthening strategic guidance, resource allocation, upgraded strong foundation project committed to lay a solid foundation for long-term benefit.

Empowered branches across 6 dimensions, helped them upgrade and elevated their overall competitiveness. Optimized resource allocation, launched reenergizing talent initiative, improved talent allocation with a focus on efficiency.

Established a profit assessment evaluation system for branches and worked diligently to enhance return on investment, improved risk control system, established penetrating full coverage and integrated risk control framework, refined authorization system, achieved group level management goal of clear authority and responsibility. The year 2026 marks the beginning of the 15th Five-Year Plan and the company's 30th anniversary.

Demographic shift, technological innovation, industrial upgrading and transfer of household wealth allocation will accelerate transformation, imposing higher demand for the company's operations. At this starting point, we will keep in mind our original aspiration and mission of finance for the people and for the country, take corporate culture at the soul, take strategic planning as the directional guide, seize market opportunities, improve the synergy across the 3 fronts, focus on core business, continue to deepen reforms, enhance our development capacity and persistently build a powerful New China Life.

First, integrate and serve the broader national agenda. We will practice the big insurance philosophy committed to the vision of becoming a first-class financial service group in China with insurance at its core, fulfill our social functions, inject more patient capital into the strategy of achieving technological self-reliance and self-strengthening, expand the supply of pension finance, inclusive finance, accelerate digital transformation, focus on core business and strengthen our life insurance business, adhere to a value and profit centered approach, optimize business mix and revenue structure, drive optimization of business profit sources, develop par insurance and other floating return products, enrich the supply of long-term and health products, create a closed loop of health insurance and health management, accelerate channel transformation and team development, enhance the core competitiveness of life insurance business, elevate organizational development to a strategic level, enhance the value of bancassurance channel, build an integrated online/offline Internet ecosystem, upgrade the profit model of group insurance business, leveraging the powerful synergy of One NCI.

We will transform the company's strength into market competitiveness, establish a new model marketing concept and practice new marketing model, enhance capabilities and standards in serving customers, build a service ecosystem that's more quality-driven and more closely aligned with customer needs, become a comprehensive financial service provider for customers. We will use our concrete action, put in practice the value proposition of finance for the people, delivering enduring protection, better life and great health.

We will be a modern insurance company that's professional, warm, mission-driven and worthy of long-term trust. Fifth, leverage the advantages of patient capital and long-term capital.

We will optimize the asset allocation structure, improve the investment research system, build a multilateral investment portfolio, high-value asset allocation, enhance investment management, asset liability coordination, with long-term value creation, become true patient capital and capital. Sixth, we remain committed to laying a solid foundation for long-term benefit.

We will build a stronger culture, which will lead the branch office to become stronger. We will balance development and security, strengthen implementation and improvement of risk control system.

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

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

Thank you, Mr. Yang.

Next, we move to the Q&A session. [Operator Instructions]

I'm [indiscernible] from Soochow Securities. First, I'd like to congratulate on your star performance in last year.

I have 2 questions. First is about liabilities.

We can see you have reached a record high last year. And I want to ask on a high base last year, how do you comment on the growth expectation in 2026?

And what is your product strategy? And also, I want to ask about the participating insurance.

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

In the past 3 years, we are in a low rate environment and the net investment yield of the peer company is going down. And I want to -- and we can see the total and comprehensive investment yield lead industry in 2025.

And I want to ask the management team, how do you view the interest rate and equity market? And what is your strategy in your asset allocation?

Thank you for your question. First, let's invite Mr.

Gong to answer your first question.

For 2025, we have yielded remarkable results. The GWP increased by 15%, FYRP grew by 15%.

And 2024 and 2025 has realized a very fast growth and laid a high base for our future growth, but we are confident on a high base, we can maintain a steady growth. In 2026, we will further serve the national strategy and to embark on the road of high-quality growth road featured both value and volume growth and structure and quality improved, and we will focus on the key areas that drive the value growth, speed up the channel development transition and to consolidate our business capabilities.

And in 2026, we will provide the best business performance to celebrate our 30-year anniversary and reward the trust of our customers and the support of the investors and all walks of the society. In 2026, we will stick to the customer-centered development strategy.

For the individual insurance channel and the Bancassurance channel group channel as well as the Internet channel, we will make full efforts to strengthen the combo sales of products to meet the diversified demand of the customers. In the past, we have done a good job in the sales of whole life insurance, and we are confident to make efforts on the sales of the participating and health insurance, and we will return to the assets of insurance to consolidate our business quality and to realize sound growth of both NBV and premium income.

And more specifically about the product definition as well as the competition strategy, I want to emphasize the following. First, we will implement the new marketing concept of integrating the scenario product service and technology by virtue of the high-quality medical resources, we will focus on the treatment, medical care and nursing at the center and provide multi tiered and diversified products, combining the insurance products and health service, and we will combine the wealth management products with the aged care community and the tourism resources to build our insurance plus aged care community and also strengthen asset management, strengthen the coordination to empower the floating benefit products.

And in 2026, we will emphasize the sales of participating whole life insurance, but this is not the sole product we will provide. We will also introduce measures to promote the other wealth management products, including the annuity insurance and health insurance.

And also, we will fully leverage on the tax benefit policies and pension policies of the country and to introduce products, and we will include the important products, including the whole life annuity and aged care pension products to include in the individual pension products. And we will provide whole life cycle health solutions to customers, including the prevention beforehand in process control and rehabilitation afterwards, and we will provide diversified product pipeline, and we will seek the policy opportunities and sales and provide and explore the products, including the participating health insurance, the consumption and medical care insurance, the specific medicines, the disability and unit-linked products, et cetera.

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

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

And on the other hand, in terms of our management system, we have effectively coordinated resources of the front and the back office and introduced incentive policies, trainings, products, publicity, compliance support and asset liability matching measures to establish a sound management portfolio and system for the future participating business. But in 2025, it's just beginning.

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

And we will try to sell the right products to the right customers, avoid the misleading sales. And also, we will try to coordinate the asset liability management, and we will try to reward the customers with sound business performance and let the customers have a higher sense of gain and satisfaction.

Thank you. This is my answer.

Recognition for our business performance in 2025. Our total investment yield reached 6.6%.

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

Your question regarding 2 areas. First, on the interest rate trend and second on the equity market.

First, about the trend in interest rate, we believe in short term, it will experience fluctuations. The credit spread will tighten -- term spread will widen.

Short-term funding condition will be loose and have more certainties, but actual long-term bonds will more fluctuate. Long-term and short-term interest rates will diverge in low interest rate environment.

How to get favorable returns? We need to consider the interest rate trend rightly.

About equity market, we are confident for the medium and long-term development of China's capital market. We pay attention to 3 themes.

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

Third, high dividend strategy in low interest rate environment. Based on our judgment about the capital market.

For the [ SAA, ] we will carry out the following principles. First, asset liability matching principle.

We will think about the future of liabilities, make sure the investment return can cover the liability cost. Second, we will continue to uphold diversified allocation philosophy.

In fixed income equity and alternative assets, we will make a rationale structure, enhance the profitability elasticity. Second, return orientation.

In the market fluctuations, we will pay attention to margin safety, grasp seize opportunities and bring sound investment returns to customers and customers. The uncertain macro environment and financial market will pose both challenges and opportunities to the company.

We will follow the macroeconomic changes and policy changes. We will be keen to bring stable return to the market.

I'm from Shanghai Securities. I have 2 questions.

NCI has established 3 pilot funds with peers. What's the actual result?

Will you further increase your diversification asset allocation? How -- second question is how do you view AI's impact on the company?

What's your future plan for AI empowerment?

Thank you for your question. Regarding 3 pilot funds, we started from March 2024, to now, in the past 2 years, we have achieved both social result and economic results.

We have been fully carried out the central government decision under guidance of [ IRA, ] we responded to the requirement to enter the market. With peers, we established 3 pilot funds.

Our total investment reached RMB [ 46.25 ] billion. The pilot fund is conductive to the asset liability management.

About your second question about diversification of investment. This is our key strategy.

We will based on the following 3 considerations. First, in the low interest rate environment, we must make diversified investments to increase our long-term returns.

Second, in the 15th Five-Year Plan, our company is undergoing a transformation with the improvement of capital market. We have been presented with opportunities to participate in the capital market.

We have improved our professionalism, including our improvement in the front office and back office, which all lay good foundation for us to engage in diversified investment. We are confident we can provide sustainable returns to shareholders and customers.

Thank you for your question. This is a very fancy question about AI.

I'd love to share with you our view about our thinking about AI. For 2025, from the top level to the grassroot operations, we are confident, we all embrace AI.

AI is not a vision of the future, but fundamentally reshaping the industry. The key in the transformation does not only make can -- make tailor-made pricing but also enable us to provide customized service and real-time responding, also enable the real-time warning and monitoring.

In the past year, we have been impacted fundamentally by AI. In customers, AI make us know customers really.

Second, in operation, AI makes us reshape the service process. Third, for risk management, AI let us grow our risk bottom lines.

We have awarded 12 authoritative roles from authorities about such as [ PBOC, ] China Academy of Information and Communication Technology. We have got business continuity management system certification and passed the DCMM [indiscernible] recognition.

AI makes our service better, better the illustration system. AI proposed 258,000 proposals for improvement in qualification inspection.

We put on [ 111 ] AI agents with 97% solvency ratio. Accuracy ratio hit 100%, covering 3,500 counter staff and over 100,000 agents.

Those measures improved our digital customer engagement capabilities. For 2026, we will make measures in 4 areas.

First, we will implement the 15th Five-Year Plan in technology. Second, in expansion of AI applications, we will build 7 virtual employees covering 7 areas through the large small model synergy, we would like to have digital productivity equivalent to 3,000 people, make machines do their own stuff and make people do more valuable stuff, data value deeper.

We would empower data from visibility to true value, make data core assets to drive business performance. This year, our focus is on the development of corporate cloud.

We aim to establish a cloud multi-chip infrastructure resource framework. Technology empowerment has been through every corner of corporate operation.

We will maintain our strategic results aim to make AI more productive for the 15th Five-Year Plan.

I'm analyst from [indiscernible] Securities. Congratulations on your remarkable results in the asset and liability side.

And for the asset, you have evident mark of sound performance. And I have 2 questions about liability in the past 2 years.

Just now Mr. Chairman Yang and Mr.

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

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

And the second question about Bancassurance channel, which has been a hot topic since last year, and I want to know your distinguished competitiveness and advantages, and I want to know your strategy in 2026 to realize further high-quality growth of the Bancassurance channel.

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

You've asked about the NBV growth and the drivers behind this. The main driver is to implement the high-quality growth philosophy in 2023 to 2025, we have realized 3 consecutive years faster growth.

And for numbers, we can see 2026 is RMB 3 billion; 2024, over RMB 6 billion. This year is over RMB 9 billion.

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

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

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

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

And from the recruitment, we emphasized the targeted recruitment, especially recruiting those high-performing agents and to increase the quality and quantity of the team. Since the team nurture, we can see we have more efforts to improve the productivity of our agents and improve the retention rate of the agents and help the agents to grow with our company.

And the third is we introduced combo measures. And in the past 2 years focusing on the mass customers, the high video customer, we have introduced a series of service ecosystem and services.

And we introduced 5 service brands to serving different kinds of customers. And those combined and the combo service and products can make our customers gain more sense of gain and to make the sales easier.

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

And for the influence of transition to participating business and its impact on the NBV, I want to say that we will continue to put forward the transition to participating business, and we are determined to promote the transition. And this is also in line with the regulations adequacy of promoting the floating benefit products.

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

The NBV margin [indiscernible] is lower than the traditional product and pose certain challenges to the growth of NBV and NBV margin. And we are fully aware of that and are prepared of that.

We have introduced a series of measures to improve the NBV and realize steady growth. First is we will further grow our business based on high business income last year, we will further stimulate the enthusiasm and morale of our team and the staff to increase their capabilities and the confidence to sell and hope that we can have a higher growth of the volume.

Second is we will further optimize the business structure, grow the assets business of insurance. We will further diversify our product mix and to diversify the profitability drivers, and we will make up for the weaknesses in terms of the health insurance and long-term annuity insurance, et cetera.

For those efforts, hopefully, we can have a higher leverage effect to promote the NBV growth. Through this, we want to reshape the channel competition.

And now we are facing a fast-changing environment. There's a higher requirement from the regulators as well, and the company will strengthen the growth of the team quality and quantity and improve the core competitiveness of the Bancassurance channel in their channel distribution and productivity and to contribute higher to the NBV growth.

And also, we will grow the Internet channel and establish a new driving force for NBV growth. And last is to reduce the cost and to optimize the cost efficiency and the efficiency of the resources.

And we believe with all those efforts, we can further promote the growth of NBV in 2026.

Thank you for your attention to the Bancassurance channel in NCI. In recent years, our bank insurance business has posted strong growth.

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

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

FYRP almost RMB 18 billion, up by almost 30%. NBV up by 110%.

Compared with our peers, our premium and regular premium moved up in the rankings and improved our market share. Take a look at the internal structure, Bancassurance channel FYP and NBV contribution has already made half contribution, enhanced its important role.

Our bank insurance channel is rich in heritage and constantly revolving. We pay attention to both premium and value.

We have accumulated advantages and move stable in market competition in 2025. Our differentiated competitiveness relies on stable progress.

First, we made stable progress in customer management. We know for life insurers, our key competitiveness lies in customer management.

We built a comprehensive refined diversified product system, meeting customers' diverse needs for service and based on the whole life cycle ecosystem. We collaborate with banks upgrade experience for customers.

For investment, we do play to professionalism, which laid a solid foundation for the transformation of the Bancassurance channel. For customers engagement, our insurance plus service plus investment model has built a foundation for long-term development.

Second, we made progress for channel cooperation. We have 56 bank partners include SOE local commercial banks.

On the basis of broad coverage, we pay more attention to deep cultivation. We join hands with banks to make better user advantages and synergy, make 1 plus 1 more than 2.

I was glad to see our ranking with large banks have been improved, active uplets up by 40%. We have seen the good result between asset and liability synergy.

Third, we have made stable progress in team development. Based on strong foundation initiative 2.0 initiative reform of building high-performing agent team with strong units third principle, workforce growth rate exceeded 20%.

On the basis of that, our average per capita productivity rose by 17%. Our professional arm for the channel with the bank partners and toward winning results, which all win recognition from our bank partners.

Looking to 2026, the bank market will have new features. We have reached consensus on the following 3 areas.

First, premium will continue to grow. Customer needs will become more diversified.

Bank demand for fee income become increasingly rigid. Life insurer pay more attention to Bancassurance channel and all those indicators for next year, FYP is expected to grow.

We have already seen it in the first quarter of this year. Second, market requirements will significantly improve for the consistency policy.

Last week, [ IRA ] made further requirements and detailed requirements for the consistency policy, improved consumer protection mechanism, customers' expectation for product and service will be stronger. I believe bank will impose more higher requirements for the life insurance.

All those new requirements will pose challenges and opportunities for the company's comprehensive strength. Third, market landscape is accelerating divergence.

The market will rapidly evolve to market concentration, massive effect will become significant. For those with more professionalism and higher capability manage asset liability management, we will grasp market opportunities and move towards high-quality development.

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

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

We need to do more in the following 3 areas. First, further deepen cooperation with banks.

Together with banks, we will together carry out fair articles in finance and for winning results. Second, strengthen technology empowerment, enhance team professionalism and comprehensive service; third, expand ecosystem, customer diversified whole life cycle protection needs.

2026 marks the 30th anniversary of NCI. We will keep up with the time and make our bank brand more brilliant, pay attention to the premium growth and value, contribute more to the high-quality development of our company.

Thank you.

Let's welcome the questions from Xinhua News Agents.

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

And this year is the beginning of 15th Five-Year Plan as well as your 30th anniversary and what are your key strategic measures?

Thank you for your question. Next, let's welcome Mr.

Yang to answer this question.

Thank you for your question. This year marks the beginning of the 15th Five-Year Plan as well as the 30th anniversary of the NCI.

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

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

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

And first, I'd like to answer the question about opportunity and challenges in the [5 ]-year period. There's a huge change of domestic and international macro economy, and there's huge changes for the life insurance sector for its position and business model.

We believe there are both exists, but the opportunities is greater for the first opportunities that we are embarked on a new journey for the Chinese modernization. The [ 5-year ] plan has put forward a great point for the high-quality growth and the plan for the modern industrial system and the independent technology growth and greater protection and better livelihood, those major tasks, which is in line with the function of insurance sectors and explore great potential for the value growth of the sector, which is the biggest opportunity for the insurance industry.

The second is we will see the opportunity from the greater targeted areas of finance. Now the aging population has posted systematic changes of the risk protection demand, especially together with the transmission of the economy and the structure, we can see there's a greater potential and importance for life insurance to serve the economy and serve the targeted area of finance.

We will provide the coordinated service from the risk protection, wealth management, medical care, the tourism and commercial insurance, et cetera. And also this provides great growth potential who grasp the opportunity in the pension finance will seek the next 10 golden years.

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

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

How can we transform those premium into the long-term return to customers that can rise through the cycles and fluctuations is a challenge and post higher requirement for the operation and investment of insurers. And instead of company, I've always emphasized that we should have the responsibility of respect every premium and deliver sound service and secure every investment to deliver our commitment to customers of bringing the enduring protection.

The second challenge is that how can we serve the customer with our professional meticulous and efficient service and to bring the long-term value to our company. And this means we need to promote the virtuous circle between the insurance plus service plus investment and provide the whole life cycle service covering the product, medical care, health care, et cetera.

And we should also apply the technology and operation to improve their customer experience to further grow the development energy and EV embedded value of our company. And this is my answer to your first question.

And about -- the question about the opportunities and challenges facing NCI. And next, I would like to answer your question about our strategic priorities in the 15th Five-Year Plan.

The Board and management team of NCI emphasized the strategic planning. Since March last year, we started the formulation of the 15th Five-Year Plan, established a leading group and working group.

And we have hold 3 large-scale seminars to discuss the strategy and conduct a series of research and seek opinions and suggestions from our whole system and introduced the coordinate development model of insurance plus service plus investment practice of -- practice large insurance philosophy and build a strong and we will strive to build the leading insurance sector with life -- with insurance as the core. And we have formulated our general master plan and over 10 key sub plans, including the marketing, training product, service investment, operating and technology as well as several plans for the subordinate entities as well as the subsidiaries.

And through the thorough and extensive research and discussion, we have established our development model and focusing on our vision of building the leading financial service sector with life insurance at its core. And our general master plan has formulated and the sub plan has also covering a lot of areas of our business as well as the plans for the branches and subsidiaries.

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

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

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

And next, we will fully give full play our advantage and to bring the blueprint into a reality. And in the next -- and realize a blended development in the next several years, and we will focus on the 4 areas.

First is to practice the strategy of customer-centered to improve the competitiveness of life insurance business. And this is also important direction of experience in the past 3 years.

And in the future, we will integrate those philosophy into all areas of our product. And in terms of product team service, operation and technology, we will take efforts and increase our capabilities to create competitive products to enrich our scenario-based ecosystem-driven and high retention services, and we'll stick to high-quality and cost-efficient service and bring more friendly scenario-based operation experience to customers.

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

We will be committed to the main business of insurance and grow the business. And this is an important criteria in a low rate environment to test the capability of the operation for insurance and also important assets for the company to serve the national strategy, and we will improve the proportion of health and long-term traditional insurance and to optimize the product structure, business structure and income structure and to shift from the interest lines to value-driven and to return the policy to the assets of business to return the service to customer, return the team to professional development, and we will strive to improve the core competitiveness of our life business.

Secondly, we'll focus on the strategic priorities and to increase our competitive barrier, and we will implement the team as the foundation strategic main line to take effort to increase the organizational development. We have upgraded our fundamental law, our system-based operation to build a WLC training system and increase the volume and productivity of our agent team.

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

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

And the third is we will follow the coordinated development of insurance plus service plus investment to provide comprehensive financial service covering whole life cycle of our company. And this is key to our comprehensive development, but also critical to deliver our commitment of bring enduring protection, better health and life to customers, and we will strive to practice the new marketing philosophy of integrating product service plus scenario plus technology to establish a coordinated customer management system with a closed loop.

And for the service and we will optimize and improve our service ecosystem covering 10 areas, including medical care, health care, financial, entertainment, culture, et cetera, and to create excellent medical care, health care engine, travel and we should with the spirit of the servant to provide comprehensive and professional risk management and service to our customers since the policy taking effect. And we will provide a comprehensive and active service as well, including the health management and wealth management to meet diversified needs of them and to create a new curve for our growth.

And for the investment, we will increase our investment capability and diversified the investment strategy, and we will be a major force in serving the real economy and serving the wealth of the people, and we will be committed to our promise of providing enduring protection. It's easy for insurers to provide service for 1 or 2 years.

But providing enduring protection is in essence and key to the life insurance and the life insurance needs to have enough capability, strength fund to cash out and to deliver the commitment to the customers. So we are determined to deliver this commitment.

It's easy to give protection for 1 or 2 years, but it's not easy to deliver enduring protection for decades. So we need to accumulate strength in terms of our fund.

And comprehensive strength and to have strong investment capability, the management team of the company in the past 3 years emphasized a lot about the investment capabilities. We can see the investment yield and return has increased a lot in the past 3 years.

We believe our asset is the asset of the time. And now the investment of insurance is shifting its priority from the traditional bank real estate and asset to the investment in the equity and technologies as well as the new productive forces, we will seek the opportunities in the 15th Five-Year Plan basis of the investment in the fixed income assets, we will impress the investment in the equity asset, technology asset to improve our professional and stable investment portfolio and structure and to shift our investment advantage into the market competitiveness of our company and to shift the long-term capital and patient capital into the high energy strategic capital.

And this is the third aspect about our strategic priority. We will strengthen the quality development of insurance plus service plus investment and will be the comprehensive insurance and financial service provider covering the whole life cycle of the customers.

And first, we will stick to inform innovation to build innovative NCI. We will bring the reform to the end and to follow this medical professional and market-oriented reform and to promote the innovation in terms of our philosophy, system management pattern, the operation model, product service, talent, data and technology as well, et cetera, to the barriers to that finding our development to play the full advantage of coordinated and NCI to further release the dividend of reform, and we will create a learning-oriented and service empowered organization to establish our long-term competitiveness and strength for the future growth.

And lastly, I want to say under the leadership of the product committee of NCI and with the joint efforts of our whole system in the past 3 years and with 3 years reform, we are more proactive in serving the real -- the general picture of national development and the comprehensive strength of our company has realized breakthroughs after 3-year effort and the reform, we are more proactive in our effort serving the national development strategy. We have a stronger foundation for a better environment for our future development and especially a series of development and reform measures and results has bring us greater [indiscernible] and solidarity for our company and our corporate culture and have stimulated the enthusiasm of all the NCI employees and staff and from the headquarters to subordinate entities from -- even to the sales outlets, we are confident and determined to seek further growth.

This year marks the 30th anniversary of our company and also 30 years hard working of NCI. And we will try to deliver the corporate culture of customer first, striving as foundation open and inclusive and excelling excellence and try to seek excellence and be innovative and to build enterprises with our pursuit of care and excellence, and we hope to build a century old enterprises with strong condition and trustworthy to customers.

And this question is an excellent question. This year, we will -- this year is the 30th anniversary of our company.

And in the past 3 years, we have hardworking and dedicated efforts to seek growth for our company. And we will implement and practice our corporate culture in the new time and we will seek excellence and try to pursue the excellence and excel ourselves in the future, and we will try to build our company trustworthy to our customers.

And hopefully, we can contribute our strength to build a strong financial China and serving the Chinese monetization. This is my answer.

Thank you.

My question is regarding investment. Mr.

Yang just mentioned that NCI has attached great importance to investment that regulator has encouraged insurance company to enter the capital market. We noticed NCI has increased equity investment share.

My question is whether the company will still further increase equity investment share on the basis of relatively high equity investment share, what's your view regarding the impact of the equity market volatility to investment return and net profit?

Thank you for your question. Regarding equity investment.

the company has placed great importance on the value and strategy in our active asset in overall portfolio. We are confident of the China's overall capital market development.

We will further continue to respond to the regulators' requirements for long-term assets to enter the market. We will consider our own asset liability management needs and make an overall judgment for the pace and the size of the capital market investment participation.

Second, for your question, we have the 3 following considerations. First, we will make diversified asset allocation, including industry diversification, the allocation between A and H share market.

Through portfolio, we reduced portfolio's overall sensitivity to any single market. Second, we need to focus on our own investment abilities in the past 3 years under the new leadership, we have great importance to the investment research abilities.

From top to bottom, we enhanced our coordinated efforts in investment. Judging by the practice, our investment team can dig those targets with high dividend and low valuation.

Third, which is also a very important part for the 15th Five-Year Plan for active asset combined with our transformation in liability side, we will make better asset liability synergy centering on key indicators, we aim to lower the impact of short-term capital market fluctuation to the overall performance of the company. Our long-term judgment will not be impacted.

As patient and long-term capital, we are capable to navigate through cycles and preserve and appreciate in asset value.

I want to ask about the management team about the individual insurance channel, and I want to know will you change your position of the individual insurance channel. And I want to know your measures to promote high-quality growth of individual insurance channel.

Mr. Gong will answer this question.

We are certain that the position of individual insurance channel as the core channel of our company has not changed and will not change in the future. Individual insurance channel is the partner and entrepreneur of our company, and it is the most important partner and family of NCI.

And they have proprietary advantage in serving the customers. And also, they have irreplaceable advantage in selling the long-term regular business and protection type products and also a core pillar of the company to rise through mid- and long-term economic cycle.

And the life insurance channel is an important channel for us, and we will further invest -- promote the channel and invest resources to realize sustained growth and for the transition of the new marketing models just now we have talked a lot, and I want to further add that the essence of the new model of the modern marketing is that we're integrating the insurance plus benefits plus scenarios plus ecosystem plus technology. And through the integration of insurance products with those multiple factors, we hope to provide -- we hope to transition as a comprehensive supplier for customers.

And next, I'd like to emphasize in terms of the service scenario and benefits. First is services means we hope to build a whole life cycle service ecosystem through the integrating of resources, including the legal trust education, et cetera, we can provide the core service, including the medical care, health care, aged care business, taxation, legal, entertainment, education, culture, covering the whole life cycle of the customers to build our economic mode.

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

And for the technology, we hope that through the AI and big data, we can have a more precise portrait of customers and have a more targeted introduction of benefits and tailored benefits to our customers and make the sales more efficient and targeted. And the team is an important carrier to implement our new marketing philosophy and realize our core strategy.

And hopefully, we can give the confidence to our agents to engage with the customers, and we can further improve our ecosystem of service and the new marketing model has shifted the solely sale of policies into the model of providing comprehensive solution to our customers. And hopefully, we can build a professional arm with strong and professional sales capability, the ecosystem service capability and the technology application capability.

And this is my answer. Thank you.

Due to time limit, our last question.

I'm from Financial Times. The company has delivered strong service in services, establish 5 service brands.

I would like to ask what are the actual contribution and changes for the product and service innovation.

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

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

First, from the scenario creation, we have 10 areas covering services. We have made some efforts for 10 scenarios, each scenario could directly contribute to the policy sales from the top to the bottom regarding product plus service.

In the past year, we proposed [indiscernible] and some very competitive service benefit products, which embodied the product service philosophy. This helps build a better brand, achieve better results for empowerment.

Second, regarding customer benefits, we have 5 service brands. All of them achieved upgrade in 2025, which make us more competitive with peers.

In order to have better customer experience, we accelerate layout in a number of areas, be it education of the care communities, which make us more attractive to customers and a strong tool for the agents to sell policies. Our President just mentioned for innovative channel agent empowerment, we believe our service empowerment has achieved some results.

Services have been quite welcomed by agents. More agents have become more skilled in comprehensive development.

Those agents benefit from the improvement of service trend. In the past year, under guidance of the new modern marketing philosophy, our product and service innovation have brought actual contribution and changes to business performance.

We are confident to believe in the 2026, we have a lot of potential to dig, no matter benefits or services, we have joined a large number of competitive partners. We are sure to provide more services to customers.

Next, I will answer questions from retail investors. First question is how would you see the solvency pressure, how to maintain adequate solvency.

Currently, company has maintained adequate solvency. Comprehensive solvency margin ratio was above 200% and the objective pressure from the sustained downward shift from 750-day moving average treasury bond yield, the company's solvency adequacy ratio has become periodic pressure.

We will take active measures. First, enhance internal capital generation.

Improve our returns and lay a solid foundation for endogenous capital accumulation. Second, strengthen external replenishment.

Third, optimize asset allocation structure, maintain a balance between asset return and risk and capital need. We are confident to maintain the solvency at an adequate level.

Second question is, I'd like to know your market capitalization management situation. We attach great importance to market capital value management.

We have formulated relevant rules. We constantly improve our investment tools.

We deepen professional market-oriented systematic reform and strengthen to deepen our core business, achieved solid progress in high-quality development. Gross written premium, net profit to total assets have hit historic highs.

[indiscernible] investment value has been enhanced. We improved our information disclosure mechanism, making more quality and high transparent, do a good job with investor relations, interacted with capital markets and retail investors smoothly through annual results announcement, roadshows, et cetera.

We disclosed our operational information. We attach shareholder returns.

In 2025, we again issued interim cash dividend. Combined with final dividend, our total dividend amounted to RMB 8.4 billion, up by 7.9%, hit historical highs, investors share company's business performance.

Our share stock price rose by 46% and 150%, respectively. Our total capitalization surpassed RMB 200 billion in 2025.

Thank you for your attention for our company due to time limit. This is the end of our annual results announcement.

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

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