I'm Liu Zhiyong, Assistant President, Board Secretary. I'm honored to be today's host.

I'd like to introduce to you the senior management attending today. They are Mr.

Yang Yucheng, Chairman of the Board; Mr. Gong Xingfeng, President and Financial Principal.

We are also honored to have independent directors to join us online. Today's conference consists of business presentation and Q&A session.

Now, let's start the presentation. Let's welcome Mr.

Yang Yucheng.

Dear distinguished investors, analysts, and media friends, welcome to the interim results announcement. We are grateful for your long-standing attention and the support for our company.

In the first of 2026, we carried out solid learning and education on upholding a correct outlook on political performance, bearing in mind the original mission of finance serving the nation and the people. We proactively integrated into the broader national development agenda, followed a path of intensive, high-quality development, coordinated development of insurance, service, and investment, and advanced professional, market-oriented, and systematic reforms.

With concentrated efforts on consolidating development foundation, forging core competitiveness, executing strategic key tasks, we achieved sustained improvement in operations and management. Market competitiveness and comprehensive strength were further enhanced.

Multiple core indicators sustained sound growth on the high base. The company showed multiple progress with more concrete base, consolidated foundation, optimized structure, greater momentum, and increasing efficiency.

The outcome of dual advancement of volume and value and dual optimization of structure and profitability were further highlighted. In the first half of the year, the GWP reached up by 6.9%.

Operating revenue amounted to 83.something billion yuan, up by 18.9%. NBV reached 6.9 billion yuan, up by 11.9%.

Embedded value reached 310.4 billion yuan, growing by 7.8%. Total assets amounted to 1.96 trillion yuan, increasing by 3.1%.

Net assets reached the 123.6 billion yuan, up by 10.8%. Investment withstood the test of capital market volatility and delivered solid results.

Annualized total investment yield stood at the 6.7%, up by 0.8 percentage points. Driven by the dual momentum from core life insurance business and investment, our value creation capacity improved greatly.

The net profit hit a new high of 22.8 billion yuan, surging 54% year-on-year. Committed to sharing operation gains with investors, we proposed to distribute an interim cash dividend at 0.73 yuan per share, representing a 9% year-on-year increase.

In terms of overall performance, we achieved all-fronts growth in business scale and value. FYRP from long-term insurance rose by 27.7%, among which the 10-year and above premium jumped.

In our comprehensive growth, our NBV and EV also increased a lot. For business structure, we concentrated our efforts on regular premium and the long-term business, delivering continuous structure improvement.

The proportion of regular premium business increased substantially. FYRP from long-term insurance accounted for 85.2%, up by 20.8 percentage points.

The share of 10-year and above regular premium rose by 3.9 percentage points. We stepped up transformation for participating insurance, and our product mix has further optimized and has won greater recognition from customers.

We strengthened institutional-based operation, refined closed-loop management, and consolidated the long-term mechanism for quality management. Our 13-month persistency ratio reached 97.5%, 25-month persistency ratio hit 93.6%, the surrender rate standing at 0.7%, down by 0.1 percentage points.

In the first half of the year, we thoroughly upheld the political nature and people-centered stance. We stayed committed to doing difficult but right things and secured new breakthroughs in serving national strategies, institutional reform, and key strategic priorities.

Our work mainly falls into five areas. One, we continued to play the role of two instruments and three nets, practically guaranteed and improved people's livelihood, served the real economy, and delivered solid progress.

Investment balance serving the real economy exceeded 1.4 trillion yuan, up by 15%. Investment balance under the five priorities in finance surpassed 500 billion, rising by 40%.

In technology finance, drawing on the long-term nature of insurance capital, we scaled up long-term investment in sci-tech innovation. Investment in relevant sectors exceeded 220 billion yuan and provided protection of sum assured over a trillion for nearly 12,000 companies.

For green finance, we actively built a service system of green insurance, green investment, and green operation, and participated in green projects covering clean energy, green consumption, and other fields, with an investment balance exceeding 110 billion yuan. We offered protection of sum assured of more than 310 billion yuan to 6,700 green enterprises.

In inclusive finance, focusing on the protected groups and SME development, our investment stood at nearly 46 billion yuan and underwrote 26 welfare projects. Total sum assured exceeded 1 trillion.

In pension finance, we promoted deep integration between healthcare and elderly care services. Investment in old-age care and healthcare industry surpassed 26 billion yuan, and the scale of enterprise and occupational annuities under management further expanded.

FYP from commercial pension, annuity, individual pension, and other business reached nearly 8.7 billion yuan. In digital finance, we stepped up efforts to build infrastructure and accelerated digital transformation.

Investment exceeded 100 billion yuan. We fostered the online the growth of online insurance and provided protection sum assured over 420 billion.

Also, we strengthened digital risk prevention and control. Second, we continued to practice the customer-centric strategy on all fronts, devoted to fulfilling our commitments for customers and provide enduring protection, greater health, and better life.

Enduring protection lies in our commitment to long-termism and endeavor to consolidate the foundation for lifetime protection. We worked to strengthen product innovation, improve product competitiveness, diversify product supply, and build a multi-level and multi-function product product system.

Flexible combination enables us to satisfy customer's whole-life whole-life-cycle needs. Also, we improved the product structure, long-term and health protection products, and established a diversified and balanced mix driven by the synergy of participating annuities, participating incremental life insurance.

For improving claim settlement and fulfilling insurance responsibilities, we provided efficient whole-process operation and the services, upgraded the self-service claim function, enabling immediate claim settlement and instant arrival of compensation. Special services including advance payment medical expense, early compensation for critical illness, and coverage for advanced therapies were provided.

Total compensation reached 7.29 billion with daily average amounting to 40 billion, which manifested the protection function of insurance. We empowered frontline agents with digital tools and tapped into AI and digital technologies to support business expansion.

The digital showcasing pro platform presented our comprehensive service system and increased the customer recognition and the brand credibility. To build a NCI for greater health, we deepened coordination of medical and old-age care resources and built an integrated health security system.

We advanced the innovative integration of health, insurance, and health management. The core of life insurance pension finance lies in the deep integration of long-term capital management with medical care and old-age care service ecosystem.

We offered customers one-stop solution of insurance, old-age care, and medical services. We actively explored the integrated growth model and created a second growth curve, expanded the boundaries of healthcare services, and uh facilitate the front-loading of health management.

We continued to cultivate service brands, including excellent medical care, healthcare, and old-age care. Excellent medical care provide customers with prevention, treatment, and rehabilitation.

The excellent healthcare promotes deep integration of insurance products and services and forms a service system covering treatment, medicine, recovery, and care. To forge a NCI for a better life, we diversified ecosystem supply to meet various demands for high-quality life.

We upgraded the customer service and management system, expanded layouts of the old-age care service ecosystem, enriched full-life cycle service, and established a competitiveness with differentiated customer service. We upgraded the five major service brands.

The service ecosystem covers five major sectors and 16 core services. We have deployed 61 health and old-age care communities and 83 travel-based projects at home and abroad to provide diversified uh choices for our customers.

Third, we prioritize top-level design, deepen system and mechanism reform, remained committed to laying a solid foundation, ensuring long-term benefits, and boosting future momentum, unleashing internal development momentum. Enhanced planning.

Since the beginning of this year, we benchmarked against the national 15th Five-Year Plan and higher-level requirements, considered the reality of the company, accelerating the formulation of our own 15th Five-Year Plan. Through multiple discussions and scientific analysis, we developed and improved a strategic planning system of one overall plan plus multiple sub-plans.

Based on the vision of building a first-class Chinese financial service group centered on insurance and the strategic direction of practicing a big insurance philosophy and building a strong NCI, we implemented a customer-centric, team-based, and employee partnership strategy, advancing high-quality development through through professional and sound planning and a strong execution. Strong headquarters.

Adhere to the strategy of strengthening the HQ, reinforcing the middle tier, and stabilizing the grassroots. Build a strong headquarters, strengthened the middle-tier branch companies, and stabilized and consolidated grassroots of third- and fourth-tier institutions.

Forged a powerful NCI full of vitality. We enhanced headquarters' core for functions in policymaking, technology construction, and talent deployment.

Guided by the position of headquarters for planning, institutions for implementation, we have targeted measures to drive institutional strength strong through strong headquarters. Robust branches.

We upgraded the Strong Foundation project to version 3 with a focus on empowering agents through office by office. Raise grassroots competitive effectiveness.

Through improving incentives, team building, operational financial management, and targeted investments, we branch boosted branch-level growth momentum. Elite talents.

We opt- optimized structure of talents, uh refined incentive mechanisms, gave full and capable staff at all levels. Deepened the talent rejuvenation initiative.

We further sharpened our market awareness, foster corporate culture that embraced competition and strive for excellence, built enduring vitality for the company's growth. Effective synergies.

We established a 1NCI business empowerment mechanism that provides compact company-wide support across all key business milestones. In the past, only channel departments delivered strategy briefings.

Instead, we now have channel, product, training, service, ecosystem, operation, and branding teams act coordinatively and empower the grassroots. This leverages the coordinated strength of 1NCI.

Optimal efficiency. We optimized financial resource allocation mechanism, strengthened the input-output efficiency, refined resource deployment in line with strategic priorities, steered resources toward long-term regular premium products and health insurance.

We introduced a net profit evaluation system centered on profit-based performance to guide branches to improve their efficiency, cut costs, and improve efficiency through refined cost management while leveraging high-quality products, a cost-effective ecosystem service, a competitive basic law, and intelligent, tech-enabled operational tools to boost business growth and keep development. Fourth, we focused on strategic priorities and drove new results in key areas.

Deepen organizational development and quality recruitment. Adhere to the strategic priority of putting the team first, establish a routine organizational development framework anchored on the basic law and supported by a series of targeted programs for quality recruitment, optimize team structure, and solidified team agent base bases.

Formulated a three-year plan for individual channel development and provide guidance for team building and strong units. We launched the 30 Years, Light Up 30 Cities national talent program, provides customized growth environment and dedicated support for talents, helping them build a cause they love and realize entrepreneurship dreams.

We strengthen the organizational talent and capacity building in third- and fourth-tier institutions to enhance their combat effectiveness. Practice the modern marketing philosophy.

Improved uh three-tier ecosystem management at the head office, branch office, and agent level to drive deeper integration of product plus service plus scenario plus technology. Guided agents to transform from single-product sellers to providers of full life-cycle services, achieving dual improvements in customer scale and business value.

We made full efforts to strengthen the bancassurance channel, positioning it as it as one of our two core channels and two core drivers. Strengthened top-level design, improve institutional mechanism, enhance empowerment of the bank channel across products, training, operation, and technology to form a full-chain support system, deepen cooperation with banks, and focus on improving both the quality and scale of the team.

In the first half of this year, regular premium from the bancassurance channel reached a record high, contributing nearly half of the total value, with sound growth in both team size and productivity. Accelerated the development of core competitiveness in technology.

Established digital transformation as a strategic and foundational priority during the 15th Five-Year Plan, aligning technology strategy with corporate development. Continue to increase resource in the technology.

Build a special work group for IT application innovation, accelerate the implementation of innovative IT applications, promote cloud-based center construction, advance the AI plus strategy, accelerated application of AI large models across business areas, drive acceleration of digital intelligence transformation. Fifth, continuously enhance business resilience and long-term investment momentum, strengthen investment capabilities, and diversified strategies to solidify robust, long-term investment strength.

We pay attention to asset-liability matching, pursuing pursuing dynamic balance in duration, structure, cost return, and cash flow. Consolidate the foundation for long-term, healthy, and sustainable development.

Strengthened the research and investment capabilities of our team, deepen macro strategy and industry research to improve accuracy and foresight of market judgments. Talent is key to investment.

During the first half of the year, we recruited investment research professionals, strengthen our core team, and explore AI empowerment to inject fresh thinking and professional strength into the decision-making. Optimize asset allocation structure, increase allocation to long-duration bonds, OCI holdings, and high-quality alternative assets.

Adjust the ratio of TPL and the relative mix of dividend and tax sectors based on market conditions. Enrich diversified investment strategies for the fixed income assets, raising allocation to bond funds, portfolio-type asset management products, and REITs to diversify return sources and improve investment returns.

We actively increase investment in high-tech and new productive forces forces in both primary and secondary markets, focused on semiconductor, new energy, and biomedicine to support the real economy and grow with the enterprises. In the first half of the year, we navigated severe global capital market volatility with solid professional capability and prudent investment strategies.

Our investment yield has ranked among the top in the industry for three years. 2026 marks the first year of the 15th Five-Year Plan and the 30th anniversary of our company.

All staff have strived with determination and hard work, delivering an outstanding and hard-won performance, achieving a strong start for the 15th Five-Year Plan and laying a solid foundation and accumulating stronger momentum for the company's further growth. Looking ahead, we will continue to forge our competitiveness in the following aspects.

First, strengthen the guiding role of party building and the party in prompt, foster a clean and upright political ecosystem, keep the spirit of NCI professional iron army alive and thriving. We'll lead high-quality development with high-quality party party building and give full play to the role of party committee in setting directions, managing the overall situation, and ensuring implementation.

We will continue to improve the political judgment, political understanding, and political execution employees at all levels, transform the party's political and organizational strength into the advantages for reform and development. We will uphold culture as the soul of the company, foster a corporate culture that values customer, hard work, openness, inclusiveness, and ability to act and achieve.

We will practice the spirit of NCI professional iron army and forge the new-era corporate culture into NCI's deepest and most enduring competitiveness and driving force. Second, adhere to strategic planning, deepen institutional reform, and optimize resource allocation.

We'll remain grounded in the present while planning for future, strengthen internal strength, and enhance our strategic leadership. Promote formulation of the company's 1 plus N 15th Five-Year Plan, carry the blueprint to the end.

We'll closely align with strategic tasks, business develop needs, and market changes. We'll advance professional, market-oriented, and systematic reform, do the difficult but right things, break down institutional barriers that hinder development, optimize incentive and constraint mechanism, and performance evaluation system.

We will leverage the strong synergy of 1NCI and continue to deepen the coordinated development of insurance plus service plus investment to enhance the company's comprehensive strength. Leverage the synergy of N 1NCI, driving the company's transformation from individual efforts to coordinated operations.

We'll deepen our customer service and improve solidify the dual-core channel and dual-core drivers of bank and individual insurance. Consolidate the foundation of traditional business while expanding insurance, ecommerce subsidiaries insurance, and internet business.

We will enhance comprehensive customer service and management capabilities. On the investment front, we'll continue to strengthen investment research capabilities and diversify investment strategies.

Build an investment ecosystem, enhance asset-liability coordination, create long-term, stable value. Fourth, focus on strategic key areas, increase investment, establish and consolidate new advantages, and achieve breakthroughs and leading development.

We'll continue to deepen the strong headquarters strategy, leveraging a strong headquarters to drive the excellence of institutions. We'll keep advancing the Strong Foundation project, strengthen organizational talent and capacity development, as well as resource invest- investment in grassroots.

We'll continue to deepen service ecosystem, open up space for the layout across light, medium, and heavy assets models in health and elderly care. Keep increasing investment in technology and AI, accelerating the comprehensive ap- application of AI, big data, and other technologies across hiring, products, service, investment, etc., to build a digital, intelligent, and innovative NCI.

Fifth, strengthen organizational capability building and continue to deepen the development of a learning-oriented, service-empowering, and research-driven organization. Foster an atmosphere of deep and lifelong learning.

Persist in empowering customer teams and employees through service. Establish a professional, standardized, refined, and comprehensive service empowerment system.

Encourage branches at all levels to study market and competition, and translate their knowledge into policies, tools, methods, and business results. Enhance the company's innovation capabilities, systematic organizational capability, and service support capability.

At the new starting point of our 30th anniversary, pay tribute to history and look forward to the future. After three decades of development, we have built a stronger foundation, enhance our strength, improve our quality, and achieve more stable operations.

In this first year of the 15th Five-Year Plan and this milestone year marking the 30th anniversary of our company, we once again delivered outstanding interim results on top of two consecutive years of high growth. This is both a substantial growth, a substantial gift, but a call for progress.

Looking ahead, we are full of confidence and drive. Guided by our prevailing performance, we'll continue to carry out the spirit of NCI professional iron army.

We will embark on a new journey of 15th Five- 15th Five-Year Plan with resolve and courage. We'll open a new chapter for high-quality development and contribute NCI's strength to serving Chinese-style modernization and the building of financial power.

That is the end of the presentation. Thank you.

Thank you, Mr. Yang.

Now, let's begin the Q&A session. Due to time limit, everyone should ask no more than two questions.

Please identify yourself before raising questions. Now, let's welcome the first question.

Thank you. Thank you for your presentation.

I'm with Soochow Securities. Congratulations on your performance.

I have two questions. The first is about the liabilities, and the second is about investment.

The first question: in the on against the high base built in the previous years, you have made a great improvement in your regular premium and NBV. What do you think are the key drivers behind this performance?

The third quarter has passed, and we ha- we have a very high base now. What is your outlook for the full-year growth rate and the business structure?

The second question about investment: we see you have made great investment return in the first half of the year, leading industrial peers. Can you elaborate on the investment assessment mechanism, especially uh the regulatory requirements for long-term assessment on investment?

How do you secure mid- to long-term return?

Mr. Gong will answer your first question.

Thank you for your question. In the first half of the year, we focused on life insurance, investment, and services.

Improved our customer-centric operation and service capacity. In life insurance main business, the regular premiums, 10-year and above premiums, all sustained good growth momentum.

This results are hard-won. At this standing point of our 30th anniversary, we are grateful for our customers.

To pay back our customers, uh we will continue to build up on this performance. I'd like to share with you my views on this.

One, uh we increased through our team building. In the first of half of the year, our team building has increased its quality and uh quantity.

No matter in the high-performing team in the individual team or the uh hyper- or the performing team in the bancassurance channel, our productivity also improved. This the team base has contributed to our business performance.

The second is our channels. Uh on our growing investment in our individual channel, we also elevated the strategic level of the bancassurance channel and formed a dual-core channel and dual-core driver strategy.

This strategy has delivered so- solid results. The individual and the banker- banking insurance channels recorded 17.7 billion and 14.6 billion yuan, up by 24% and 32%, respectively.

The third is management empowerment. We strengthened diversified product supply, improved our structure.

Based on the Strong Foundation initiative 3.0, we improved our capabilities and uh uh strengthened both the office team and the agent team to build strong teams with strong units. Through this improvement of management, the time, how time flies, and this we have uh now at the end of the August in we are confident that we can fulfill the full-year plan and tasks for our growth.

We will keep following the path of dual increase of volume and value and uh in- improvement of structure and quality. Focus on the key drivers of productivity.

Follow the product plus service plus technology modern marketing concept. Continue to improve our product structure, improve team productivity, and focus our efforts more on long-term and high-value business.

Through this efforts, we are confident that we can sustain this good growth momentum and consolidate our past achievements.

Thank you, Mr. Gong.

First, I'd like to thank you for your question. Thank you for your recognition for NCIAM.

In the first half of the year, we delivered a strong performance. We stick to long-term investment philosophy and upgraded our evaluation mechanism from three points of view.

First, we align our evaluation with longer term cycles. From from multiple evaluation indicators make our investment decisions more forward-looking.

We have multiple indicators. We use 1-year, 3-year, and 5-year metrics.

Second, we focus on value. When designing the evaluation indicators, we balance absolute returns, relative performance, and risk control.

We with strong emphasis on sustainable profitability profitability and stable operations. Third, we keep our framework dynamic.

We track policy shifts and market changes, better evaluate the criteria as needed. For market for strategy investment, we make the evaluation dynamic.

This is very important for us to achieve the annual dual and long- mid- to long-term goal. To sum it up, the evaluation system of NCI is in line with the national strategies and our high-quality development goals.

Thank you.

Thank you. Now, let's welcome the next questions.

Thank you. I'm with China Banking and Insurance News.

Since the implementation of the report-contact-alignment policy in 2024, we have seen that the NBV of the channel has been growing, but the industrial competition has also been getting more fierce. The regulators issued new rules to strengthen, refine the cost management of the channel.

Uh what impacts do you think will the new rules bring to your company? What are the development strategies of your bancassurance channel against this background?

Mr. Wang Lianwen will answer this question.

The Document No. 65 focuses on refined fee management and holds every link accountable.

Uh emphasizes on the authenticity and compliance of fee utilization and drives more standard and organized bancassurance competition. The new rules set uh higher standards and uh for the cost control, professional service, and compliant operation for insurance companies.

The new rules specified the uh regulatory bottom line. It will be an important measure to advance high-quality development of the China's bancassurance market.

The impacts on our company are as follows. The first is it will create a key opportunity for us to improve quality and efficiency.

To comply with the rules, we need to strengthen a refined fee management and which will increase the value contribution of the channel and further promote cross-departmental synergy and guide towards customer needs in terms of our product innovation and build up differentiated competitiveness so as to provide better service and greater value for our customers. The second is the rules will promote comprehensive upgrade of our operational model.

The rules encourage us to uh gives us an important opportunity to deepen our development of this channel. The refined cost management will help us to improve our competitiveness, but will also uh bring up more competition.

Guided by the new rules, we will deepen the coordinated development of insurance, service, and investment. This will uh bring us bring the bancassurance channel greater growth potential and uh uh towards a higher level and uh higher quality development.

In recent years, our bancassurance channel has maintained robust growth momentum and has become a major engine drive- driving our scale and value growth. In the first half of the year, our company's party committee prioritized the long-term investment, long-term development, and established a dual-core channel and dual-core driver strategy, which elevated a strategic role of the bancassurance channel and turn it be- to a core channel.

The bancassurance channel will follow the strategy of making progress while maintaining stability, so as to achieve stable operation with progress. First, the strategic positioning has become more clarified.

We conducted strategic research on the new rules and held multiple rounds of uh special sessions. After elevating the channel to a strategic level last year, we further, in the first half of this year, reinforced this position as a core channel.

In May, we established a bancassurance channel leading group for the strategic development and also established the leadership on other tiers. We have formed a top-down synergy, which demonstrated our clear strategic resolve.

The second is our economic empowerment will be more concrete. We will continue to advance technology, operation, and ecosystem empowerment, continue to improve the service quality, efficiency, and capacity of the channel based on the 10 ecosystems covering medical care, healthcare, et cetera.

This will satisfy our customers' needs for diversified protection and wealth management across their life cycles. We will continue to forge differentiated competitive advantages to better facilitate the development of the bancassurance channel.

The third is the responsibilities will be enforced more effectively. We will strengthen assessment-driven guidance to make sure the provincial branches, central branches, and fourth-tier outlets will shoulder their responsibilities.

We will advance the Strong Foundation initiative and extend services to lower-tier markets. Through business review, process supervision, and closed-loop management, we will make sure the strategic arrangements are implemented and operational tasks fulfilled.

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

Thank you. Thank you for the opportunity.

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

The first on the asset level: we see an im- impressive investment performance in Q2. I'd like to know how would you see the equity market trend in the future?

In the current low interest rate environment, what are the allocation strategy for fixed income assets and equity? What are the strategy for alternative investments?

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

Thank you.

Please, let have let us welcome Mr. Qin Xianjin to answer the first question.

Um

thank you. Thank you for your interest in NCI.

As to the equity market, we believe the short-term volatility won't change the long-term positive trend. We are firmly optimistic about China's capital market.

On the fundamental side, our economy is in a phase of transformation, upgrading. Our growth rate still leads among major economies.

Corporate earnings are stabilizing and picking up, all of which have been uh have provided a solid base for active investment in China. In terms of liquidity and fund flows, our monetary policy remains moderately accommodative.

In a low interest rate environment, household wealth is facing re-allocation demand. Medium- to long-term capital represented by life insurance capital are adding stable, long-term incremental money to the market.

To be to be specific, on the on one hand, we believe now there are a number of quality, high-dividend names are attractive for insurance allocation. On the other hand, we are we pay attention to the opportunities brought by new productive forces, especially the new wave led by AI, biotech.

For the second, our allocation strategy: we stick to three principles: asset-liability matching, diversified allocation, and absolute return focus. We build a portfolio for fixed income.

We increase their long duration with enough cash cash flow and and quality and fixed income assets, build a solid turn foundation. On the other hand, we guided by the general direction increase our flexibility of the portfolios.

You just mentioned the alternative. We made concerted efforts in this regard.

We are making progress and increase our exposure to alternative, capture quality assets, and gain excessive returns. In the future, we will improve our risk investment research capabilities and risk control capabilities.

Improve returns, um reward investors and shareholders with returns.

Mr. Gong will answer the second question.

To summarize our individual channel feature, I would say it is the the team is the foundation. It is not only a slogan.

It is our practical implementation, showing our development concept and where our competitiveness lies. Specifically, we guided by the corporate culture to build specialized, professional, and all-round teams.

These are the orientation of our team building. We have established an organizational system to establish a strong team with good service, quality, and competence.

In the first half of the year, in our individual team building, we have made all-round breakthroughs. In regular recruitment, high-performing team development, and high-performing team with strong units, these are the three priorities of the channel.

The channel recorded 20,000 new recruits, with monthly new recruits steadily staying above 3,000. High-performing team development delivered notable results with an increase of 16%, and their average uh uh productivity increased by 18%.

The standard units doubled the number. This shows how we see the team as our foundation to promote our development of the WLP team.

This year marks the 30th anniversary of our company. Taking this opportunity, we have started an important campaign themed Lighting 30 Cities for the 30th Anniversary.

To date, we have 30 branches that have held their recruitment events, which are widely um uh attracted many talents to join our team. In the future, we will switch focus and extend the events to lower outlets to host this conference in more cities and attract more talents to join our company.

You may ask how will we cultivate these talents and retain them? This is also what we need to answer for the team foundation.

For this, we uh build comprehensive empowerment via four platforms for them to grow and stay. The first is the workplace platform.

We have the best workplace for the agent team, and established the Xinhua Zhun meeting place and a series of workplaces to provide our agent team and customers with a good place to talk face-to-face. The second is the scenario platform.

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

The third is the training platform. We expanded our uh classes to our talents, and focused on the new recruits, high-performing teams to provide them with a series of growth system.

We formalized the standards and uh enforced strict requirements. We built a standardized training platform with full coverage, so that our customers and agent team can share our resources in this ecosystem.

The third is the fourth is the ecosystem platform, which combines the ecosystem of the company and the personal ecosystem, mini ecosystem of the agent teams. This is my answer.

Thank you.

Next question, please.

Thank you. We know NCI adheres to a diversified investment strategy.

In the first half of the year, what uh what have you do uh what progress has you made in response to the call for medium- and long-term capital to enter the market?

Mr. Qin Xianjin will answer your question.

Thank you for your question. The diversified investment is our firm investment orientation.

The strategic emerging industries development uh created a broad space for our diversified deployment of insurance capital. Taking for the Honghu Fund, we have uh contributed a total of 46 billion yuan.

We also um it uh it holds the uh high-dividend, leading enterprises including China Telecom. The uh dividend income has become the cornerstone of this portfolio.

It has become an industrial benchmark of medium- and long-term capital entering the market. Second, we continued to increase allocation to long-term core holdings such as high-dividend assets.

Amid recent market corrections, we proactively added exposure to equity assets oriented towards dividend strategies and new-quality productive forces. The third is we kept leveraging the role of long-term capital in the alternative market.

We led investments in REITs of JD and China Resources. We also participated in the strategic placement of IPOs of HKC and China Resources New Energy.

At the same time, we have deployed quality resources of long-term development. About the investment in sci-tech innovation, we advance efforts on investment research, investment layout, and ecosystem collaboration.

In the investment research system, we set a research team for the strategic emerging industries and built an expert pool to cover the emerging industries, putting research ahead of investment to support investment in the technology sector. On our investment layout, we pursue parallel deployment in the primary and secondary markets.

In the secondary market, we maintain a firm exposure to tech growth opportunities. Our capital backed large model chip R&D, bringing us dual gains from valuation rebound and company growth.

In the primary market, we joined the strategic IPO placement. Uh uh we acquired stakes from the Shanghai Integrated Circuit Industry Investment.

For ecosystem collaboration, we leveraged the ecosystem resources and explored the insurance capital plus industry leaders plus specialized asset managers model, and broaden our investment footprint in sci-tech innovation. Thank you.

I'm from People's Daily Online. This year marks the company's 30th anniversary and the third year of its new party committee.

Despite deep industry adjustments and market volatility, the company has maintained steady growth, outperforming peers. How would you plan to consolidate your advantages and sustain strong momentum going forward?

Thank you.

Please welcome Mr. Yang Yucheng to answer your question.

Thank you for your question. This year is quite exceptional for NCI.

It marks the 30th anniversary and the third year of the new party committee. Over the past 3 years, through the hard work of our staff and support and the support of media friends, investors, and shareholders, and all sectors, we have delivered our best-ever performance.

For three consecutive years, we have achieved double-digit growth in FYRP and NBV, steady improvement in business quality, industry-leading investment returns, rapid net profit growth, higher shareholder dividends. We've embarked on an intensive, high-quality development path that enhances both scale and value, while optimizing structure and efficiency.

The reason are mainly twofold. On the one hand, we have strengthened party leadership, fulfilled our mission of serving the country and the people through finance, and united our people through party building and a new-era corporate culture, energizing initiative, proactiveness, and creativity of staff, creating a positive environment for reform and development.

This is the most important reason. On the other hand, we prioritized strategic planning and top-level design, take measures for reform, enhance mechanism, enhance our competitiveness.

The key of our competitiveness is from investment, service, and and investment. We carry out coordinated development, make our insurance stronger, provide whole-life-cycle services for customers, build and strengthen service ecosystem.

We strengthen our investment, strengthen investment research capabilities. Our strategy is more vivid and detailed.

Increase companies for the three pillars and unleash reform dividend and have stronger momentum. At the same time, we pay attention to execution efficiency.

Advocate a work style for execution with detail-oriented efforts and resilience. We've translated our strategies and reform measures into concrete actions with strong execution and synergy.

We are capable of tackling the market changes and gaining the initiative for the development. Today, NCI stands on a stable and growing path, consolidates gross foundations, and have more gross momentum.

After 30 years of development, we have accumulated development conditions and core strength, including strong asset strength and adequate solvency, a nationwide channel and institutional network, robust investment management and asset-liability coordination, a first-class talent pool, and an excellent brand and culture. We are confident and able of opening a new chapter of high-level development.

You just asked how we can sustain strong gross momentum? In my view, the successful experience of reform and transformation over the past 3 years, together with the profound accumulation over the past 30 years, is the greatest source of confidence for NCI to win the next 30 years.

Looking ahead, we will maintain strategic focus, uphold long-termism, stay the course, and prioritize the following strategic, long-term initiatives. First, uphold party leadership and corporate culture as the soul of NCI, keep the company on the right course.

We'll remain keep our position as a state-owned financial enterprise, practice the political, people-centered nature of financial work, serve national strategies, and deliver on the five priorities in finance. Guided by a hardworking, open, inclusive, benevolent, and pragmatic corporate culture, we will focus on work that builds foundation, benefits the future, and strengthen momentum.

Carry out professional and market-oriented genes, make our professional iron army spirit that dare to lead and strive for excellence thrive. Make our corporate culture become the deepest, compassion, and soft power.

Second, we'll guided by the strategic planning, carry out professional, market-oriented, systematic reform, elevate company's development capability. After multiple discussions, we have formulated the vision that build a first-class financial services group, and strategic that practice big insurance philosophy and build a stronger NCI.

We'll issue the plan later. Next steps, we'll implement the 15th Five-Year Plan, practice the three major pillars that is customer-centric, team-based, and employee partnership, grasp market opportunities, and strengthen our dual-channel, dual-driver strategy.

Enhance the traditional advantage of individual channel, strengthen bancassurance business, and emphasize our strong headquarters, robust mid-level branches, and stabilize grassroots operations. For stabilizing the mid-tier branches is to ensure their compe- competition.

Stabilize the grassroots is improve the comprehensive strength for the seven 1,700 institutions. Make grassroots institutions have a solid foundation, improve year by year and moving by ranks.

We will focus on execution and coordinated operations. We will strengthen the coordinated development and practice a marketing philosophy of enhance the synergy between headquarters, subsidiaries, and branches, and build a system, organizational system that connects top to the bottom, standardized.

We will have more ecosystem and partnerships, transform our strength in asset, service, investment, and brand into the customer engagement capabilities and value creation capabilities into our market competitiveness. Build a 1NCI that's empowers and provide long-lasting protection, greater health, and beautiful life to the customers.

We'll increase targeted investment in key strategic areas, build a strong foundation. In the future, the key for competition in the life insurance industry will be who invests more precisely and produces more efficiently.

We'll pay attention to optimizing resource allocation and increase investment in strategic areas such as product competitiveness, sales force development, AI, and branding. We will consolidate our competitiveness and have core compa- compatibility.

We will drive innovation-driven development as a core engine. Competition never ends, so as the innovation.

We will have innovation in multiple factors. We'll build a deep learning deep empowerment, learning-oriented organization and service empowerment organization, and build a risk-driven organization that grow with the time.

Lastly, I'd like to say that the company with deep heritage, enduring vitality, and forward-looking vision, we stand on 30 years of solid capability and profound spirit. At this new starting point, all of us at NCI are highly motivated, energetic, and confident.

We'll stay the course, execute our strategy, a down-to-earth attitude, trans- transform our 30 years of accumulated strength into a mighty force for the future. Drive NCI to greater stability and further on its path for high-quality development, writing the next 30 years of brilliance.

Thank you.

Thank you, Mr. Yang.

Next question, please.

I'm from Shenwan Hongyuan Securities. Thank you for giving me this opportunity.

Congratulations again for your achievements. I have two questions.

The first is about the asset-liability management and new rules. We have seen the regulatory organs have issued a new rules.

Could you elaborate on the impacts of this new rules on your company, and what is your liability cost profile? How will you comply with the new requirements and strengthen your asset-liability matching?

The second question is about the sci-tech forces represented by AI driving operation transformation across all sectors. How do you look at the impacts of sci-tech development on the industry, and what is the main focus of your sci-tech application and empowerment?

Mr. Gong will answer your first question.

NFRA released the new measures for asset-liability management. On governance structure, management mechanisms, and indicators constraints, the new rules have come up with higher and more strict requirements.

Compared with the new rules, we have much to do. From the macro level, I think there are three main impacts.

The first is we will strengthen our governance foundation. The new rules push us to hold the board and the senior management more accountable and raise requirements for the coordination and professionalism between asset and the liability sides.

It uh raises more in- requirements for our the two sides. The second is we need to deepen refined management.

The new rules lay out detailed standards for our structures, indicators, risk control. Uh they have issued the guidelines.

For this orientations, we will integrate this in our product pricing, business planning, and asset allocation to build a closed-loop framework and uh to underpin our resilience against the interest rate and market volatility. The third is technical empowerment in decision-making.

We deepen stress testing and back testing, im- improve operational standards. This will give us a better foundation to make decisions, to improve our uh our strat- strategy setting and risk evaluation.

Asset-liability management has always been an a top priority in our operations. In the past years, in the asset-liability management, we have re- achieved the good results.

Uh across our accounts and strategy, and also asset management level, we have come up with specific requirements. In the past few years, the results of our ALM management are positive.

The As of the end of June, our annualized comprehensive investment yields of 1-year, 3-year, and the 5-year windows all cover our average liability cost. Also, as the lowering of the assumed interest rates for new policies, uh our liability cost is on a downward track.

This will help uh help us to better pre- prevent risks. Our asset duration and liability duration coordination has also been improved.

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

Thank you.

Thank you for your question. Your question is quite fancy.

This is represents our how company is how NCI in the future. We practice our modern marketing concept.

Technology is an important part in this concept. In the first half of the year, flow uh three pillars all driven by the growth of AI and technologies.

We believe AI's the tech's impact on the industry is reflecting three areas. First, on customer engagement.

Uh about the insights to the customers and marketing campaigns, I'd like to share a event with you. In an important customer event, we use big data to select a very important lecturer.

We act accordingly, and this event is a huge success. We believe technology-driven, represented by AI, is quite important for our customer engagement.

Second, revolutionizes operational process. The efficiency and customized service especially on the internet business is very important.

For example, when working with internet companies, if we can become partners of those big internet companies, our efficiency for claims underwriting and claims settling quite important. AI is important for the operation.

We re-adjust the paradigm of risk management through the data modeling and machine learning. Pricing becomes more accurate, and risk identification happens earlier.

The industry is moving from paying claims after events to preventing risk beforehand. Open up new space for improving long-term competitiveness of life insurance business.

From service, technology, and risk management is very important. If you can provide better services, it's important for to reduce claims settlement in the future.

For the we will elevate our digital, intelligent, innovative NCI in the future and make breakthroughs in five major areas. Accelerate to build up a digital workforce, we're rolling up digital employees and key functions like customer service, underwriting, and claims, creating a digital workforce matrix covering front, middle, and back office.

Machine will handle the standardized work, people will focus on higher value tasks. We improve both efficiency and human touch.

Second, unlock value of data as a core production factor. We believe data is very important, a core production factor.

Push forward the full-domain data injection and build a trusted, usable, and manageable data asset system. Data can truly empower precision marketing, smart risk control, and product innovation.

Third, make operations service smarter. Roll out intelligent underwriting, smart claim processing, and AI-empowered customer service.

Let AI take over routine repetitive tasks, we can improve customer service and cut costs. Fourth, deepen tech-enabled ecosystem building.

We'll use technology bring our connector. Ecosystem with marketing make our customer feel more satisfied.

Fifth, strengthen our digital foundation. We'll focus on building the cloud, accelerating one-cloud, multiple-architectures infrastructure, provide a flexible, stable, and secure digital backbone for business continuity.

I'd like to walk you through our AI applications. I asked one of our young employees, "What's your support and now for the urgent need?"

One of them said, "I need more tokens from the company." Thank you.

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

I have two questions. What are the achievements for the ecosystem building, and what value that this service ecosystem bring to customer engagement?

Thank you for your question. Let's have Mr.

Qin to answer your question.

Thank you for question from Xinhua News Agency. As Mr.

Yang said, in the past year, we have been growth in ecosystem building. We stay customer-centric, fully upgrade our five service brands, refine our service ecosystem covering 10 areas.

I think the achievements are reflected in three areas. First, on product innovation, we execute the We roll out service-related some very popular products to market.

We have pushed forward the illness insurance product to sub-standard population, and collaboration with some external partners. We have rolled out a kind of real product.

Second, on customer benefits, we rolled out Yunyou Changqing Xinhua insurance NCI family office, dedicated to provide a comprehensive, one-stop, whole-life solutions for key family clients. We accelerate our Xinhua Zun, Xinhua Rui, and provide customized service to the clients.

We accelerate our layout, benchmarked against peers at home and abroad. We connected to hospitals and nursing agencies, and followed the lead of the those advanced peers.

We will provide a comprehensive system that in line with WLP. As just we mentioned, as Chairman Chairman mentioned, we have rolled out a three-tiered ecosystem empowerment mechanism.

We focused on a number of sectors on the head office, branch office, agent level. We'll provide agents with technology empowerment and the ecosystem empowerment.

To summarize it all, we will provide a closed-loop system to empower the WLP and make them professional, and make them can provide one-stop solution to his clients, solidify the foundation for our customer-centric, team-based, and employee partner strategy. Thank you.

Thank you. Last but not least, we have selected several questions from retail and minority investors.

The first is about the dividend distribution policy. We place high priority on shareholder returns.

In 2026, we will formulate our dividend proposal by analyzing regulatory guidance, financial sector conditions, financing and capital needs, investor expectations, as well as our business plans, profits, investment, funding, and solvency, balancing our business expansion and shareholder returns. For the interim dividend, we propose a tax-inclusive cash payout of 0.73 per share, up by 9%.

As for the final dividend, we will draw on full-year results, capital, and risk metrics, and the interim dividend distribution, and peer benchmarks, solicit shareholder feedback, and work out the final cash dividend plan. The second question about our outlook for solvency in the coming years and how to maintain adequate solvency.

Our solvency position is solid and far above regulatory thresholds. It has dipped on a phase-to-phase, mainly dragged down by the falling 750-day moving average treasury yield curve.

Amid volatile markets, we prioritize solvency management with targeted, multi-pronged actions. First, strengthen internal capital accumulation, advance product structure transformation, focus on value creation, refine cost control, and lift overall profitability to consolidate capital base.

Second, expand external capital resources. We issued 10 billion perpetual AT1 bond to strengthen capital base.

Third, optimize asset allocation to balance return, risk, and capital needs. We have full confidence to keep the solvency metrics sound in the long term.

Now comes to the end of this announcement. Thank you all for your attention and support for the company.

For further questions, feel free to contact us. Thank you again for joining us.

Thank you.