Good morning, ladies and gentlemen. Welcome to China Life's 2024 interim results briefing. My name is Tang Juan, Culture and Brand Development Department General Manager of the company. The Beijing and Hong Kong venues for this briefing are connected by a live video conference. We invite those who are not able to attend this briefing in person to use the dialing facility to join and access through the live webcast. Now, let me introduce the management attending today's briefing in Beijing and Hong Kong venues respectively. With us in Beijing are our President, Li Mingguang, Vice President Liu Hui. Mr. Ruan Qi, Vice President. Ms. Hou Jin, Chief Actuary. With us in Hong Kong via live video conference are Mr. Bai Kai, Vice President. Ms. Yuan Ying, Person in Charge of Finance. Today's briefing will start with a presentation by our management team on the company's 2024 interim results, followed by a Q&A session, during which our management will take questions from both Beijing and the Hong Kong venues, and Ms. Liu Hui, securities representative of company, will co-host Q&A session in Hong Kong. Your questions are welcome. Let me now hand over to our president, Mr. Li Mingguang, to introduce the company's 2024 interim results. Ladies and gentlemen, good morning. Welcome to China Life's 2024 interim results announcement. This briefing comprises four parts. First, I will give you an overview about the company's performance, as well as the business and operations in H1 2024. Then, Ms. Liu Hui will update you about our financials and investments, as well as embedded value. In H1 2024, the external environment was increasingly uncertain, and the market environment complex and volatile. China Life actively coped with challenges of all sorts, achieved new heights on a high base in many core indicators. The company's gross written premium reached CNY 489.57 billion, and its total assets exceeded CNY 6.2 trillion. In the first half of the year, new business value and the embedded value grew rapidly while remaining the champion of the industry. Net profit attributable to shareholders of the company hit CNY 38.28 billion, showing clearly improved profitability. Both core and comprehensive solvency ratios remained high, and the company ranks first among life insurers in 2023 Insurance Service Quality Index. In general, the company balanced scale, value, quality, structure, efficiency, and security, and consolidated its leading position in overall strength. Moreover, the company continued to function as a shock absorber for the economy and a stabilizer for the society, integrated itself into the country's overall development, improved the people's livelihood, and enhanced the effectiveness of social governance. First, the protection function of insurance was fully leveraged. In H1, we continuously expanded pension and health insurance, the areas of most concern for the public, accumulated nearly four trillion RMB in pension-related insurance reserves, and health insurance premium increased by 6% year on year. The increasingly diverse inclusive products served groups such as migrants, farmers, and seniors. Second, precise and efficient services we were provided to the real economy. Tapping the advantage of patient capital, we accumulatively invested over 4.2 trillion RMB to serve the real economy. Invested over seven hundred and twenty billion RMB in technology innovation, advanced manufacturing, and a green development for new quality productive forces. We underwrote 99.2% more customers in emerging strategic industries and 64.3% more customers in green insurance. Third, risks were proactively and solidly managed. The company was rated A class for 24 consecutive quarters in the Integrated Risk Rating, and maintained industry-leading regulatory ratings for consumer protection. While maintaining steady development, the company, as ever, paid attention to the interests of all shareholders and created long-term and stable value returns for investors. Since its listing, the company has distributed over CNY 200 billion in dividends, with an average dividend payout ratio around 39%. To share more value with investors arising from the company's growth, the company decided to introduce interim dividends and pay RMB 0.20 per share. Let me move on to introduce business and operations. In H1 2024, the company deepened its reforms to cope with profound industrial changes, became even more people-centric, matched asset and liability closer, and achieved high-quality development in three aspects. First, better quality. On the liability side, we diversified our products and business, and improved the balance among endowment, annuity, health, and whole life. We achieved effective management of new business costs and duration, with the percentage of FYRP with a ten-year-plus payment duration up by 3.8% and growth sustainability further enhanced. On the asset side, we allocated among asset classes across the cycles and increased gross investment yield by 26 basis points. Second, greater momentum. The company made the sales force even more professional, specialized, and comprehensive. While keeping its size stable, the agent force saw its per capita productivity rising by double digits and its performing members growing in both absolute and relative terms. The development of a new type marketing force made a solid start. Upholding the new product, product plus service model, we further diversified our health management services. Our elderly care communities have been rolled out to fourteen cities, covering the Beijing-Tianjin-Hebei area, Yangtze River Delta, and the city cluster of Chengdu and Chongqing, as well as other city clusters. Our digitalization gained momentum and yielded results. AI and big data mining were widely used in product pricing, sales support, operational services, and other scenarios. Over 130 PB of data was stored, and data was yielding more and more value. Third, higher efficiency. We continuously advanced cost reduction and efficiency enhancement, and precisely managed expenses. While sustaining steady growth of gross premium, we significantly reduced fees and commissions and improved the return on inputs by various channels. In H1, the individual agent channel adhered to high quality development, vigorously created value, deepened channel transformation, and steadily improved the indicators and the value of new business on top of high base. FYRP reached RMB 84.61 billion, up 5.6%. FYRP for ten plus years stood at RMB 42.6 billion, up 9.4%. It took up 50.3% of the total FYRP, up 1.7% year on year. In H1, the individual agent channel contributed a new value, new business value of RMB 29.29 billion, up 14.6%.... Moreover, the individual agent force deepened is a market system reform, accelerated the transformation of its existing team, and advanced its new sales model. The existing team continued to implement its team-building philosophy, accelerated the construction of a customer-centric individual insurance management system, and expedited the transformation of the individual insurance team into a professional, specialized, and a comprehensive one. By the end of June, the individual agent and the channel sales force had maintained its team size stable at 629,000 people, comfortably the largest in the industry. Among them, 401,000 worked in general sales and 228,000 in upsell. The per capita productivity of agent force grew by 12.4%, going up for four years in a row. The number of high-quality new agents went up by 20.1%. Percentage of high-performance agents increased by 1.9% year-on-year. We also expanded the Seed Program to 24 cities as planned to pilot on new agent model. The bancassurance channel strictly complied with the reform of unified application and execution, better controlled commissions, and reduced the cost while increasing efficiency. This channel also diversified its products and built diverse product system, upgraded its Basic Law, professionalized the team management, expanded its coverage, and covered more partner banks. In H1, bancassurance earned a GWP of CNY 49.73 billion, and renewal premium of CNY 32.74 billion, up 27.7%, representing 65.8% of GWP. By the end of June, this channel involved 21,000 customer managers. Thanks to expense reduction and the business structure optimization, the NBV margin improved by 13.4%. The company actively practiced the consumer-centric business philosophy, accelerated the upgrading and integration of service resources, strengthened the protection of consumer rights and interests, and endeavored to create a better customer experience with high-quality operation services. First, operation efficiency was improved by digital intelligence. The average time to settle claims was 0.34 days, a significant 13% increase year-on-year, ranking among the top in the industry. Claims can be settled in seconds at the earliest through the Claims Direct Payment program. The intelligent review rate of underwriting and policy administration reached 96.2% and 99%, respectively. The intelligent and intensive sharing model has led to a continuous improvement in the approval efficiency of underwriting, policy administration, and other operational areas. Second, the service quality at points of reach is better. The company continues to build a service system of one click for direct online access and close proximity offline. The number of registered users of China Life Insurance App exceeded 150 million. The customer contact service experience continued to improve, and more than 500 traditional counters were transformed into four-in-one customer experience centers of service, experience, sales, assistance, and consumer protection. Third, service supply was expanded and upgraded. We built a diversified multi-level and comprehensive service matrix, providing services to a total of 1.56 billion people in the first half of the year. The heartwarming senior-friendly services were selected as an excellent case of inclusive insurance services by the Insurance Association of China. Fourth, the consumer protection system remained sound. We further deepened the comprehensive consumer protection paradigm of full participation, comprehensive coverage, and full chain management. We deepened the construction of the digital intelligence consumer protection platform and maintained the industry's top ranking in regulator assessment on consumer protection and insurance service quality index. In the second half of the year, the company will continue to practice the business ideas of three commits: to strengthen party building, promote reform, and prevent risks. Three enhances:... of development, value, and the team, and three breakthroughs in optimizing services, promoting integration, and lowering costs and continue to consolidate the stable and positive development trend. We will promote development, change model, adjust structure, and increase efficiency by reform, and strive to achieve a high level of multi-objective dynamic balance. We will focus on the following tasks. First, we'll assess the overall situation and promote the steady development of the company. We'll firmly grasp the opportunities in the era of Healthy China and aging economy, and promote the steady growth of health and pension insurance, comply with the development trend of regional coordination, continue to maintain the upward trend of key cities, and further consolidate the traditional advantages of the county market. Second, we'll insist on high-quality development and continue to improve the quality and efficiency of our operations. We will proactively respond to changes in the interest rate environment and customer demand, adhere to the asset liability alignment, and continue to promote the diversification of business maturities, forms, and costs. We will further optimize the investment strategy that matches the characteristics of liabilities and stabilize investment returns. Third, we will deepen reform and innovation, and make further breakthroughs in optimizing services, promoting integration, and lowering costs. We will firmly implement the guiding principles of the third plenary session of the twentieth CPC Central Committee and continue to deepen reform and innovation. We will insist on optimizing basic services, strengthening value-added services, refining the layout of recreational and ecosystem services, and continuously improving customer service. We'll deepen the integration of resources and effectively utilize the company's customer channel and ecosystem advantages. We will strengthen refined management and digital empowerment, accelerate the deep integration of new quality productive forces with the life insurance value chain, and comprehensively enhance input and output efficiency. Next, I would like to ask Ms. Liu Hui to introduce the company's financials and investments and embedded value. Thank you, Mr. Li. Next, let me brief you on China Life's financials and investments in the first half of the year. First of all, let's look at the main financial indicators for the first half of the year. As of the end of June, the company's total assets amounted to CNY 6.22 trillion, up 7.2%. Total liabilities amounted to CNY 5.72 trillion, up 7.6%. In the first half of the year, the company continued to strengthen the linkage of assets and liabilities, continuously strengthened underwriting management, and enhanced investment income, realizing a net profit attributable to shareholders of the company of CNY 38.28 billion, an increase of 5.9% year-on-year. As of the end of June, the company's core solvency adequacy ratio was 151.9%, and the comprehensive solvency adequacy ratio was 205.23%, which stayed at a high level. Next, let me present to you the company's investment performance in the first half of the year. In the first half of 2024, the domestic interest rate level went down faster and quality assets were scarce. The stock market oscillated broadly at a low level with obvious structural differentiation. The company proactively responded to the challenges of the complex market environment, maintained strategic certainty, adhered to asset liability matching and flexibly carried out investment operations. First, fixed income bottom position continued to consolidate. In the first half of the year, the allocation of ultra-long-term interest rate bonds and high-grade credit bonds exceeded CNY 400 billion, and the proportion of bond allocation continued to increase. Second, equity investment was more balanced. We seized the market low in the first quarter to increase the position moderately and continued to promote structural optimization. Equity assets investment returns improved year on year. Third, alternative investment allocation is steady. Focusing on high-quality themes and core assets, the company innovated its investment model and stabilized its allocation scale and return level. The company's net investment yield for the first half of 2024 was 3.03%, and its gross investment yield was 3.59%, up 26 basis points from the same period in 2023. In terms of credit risk management, the company always adheres to a prudent investment philosophy and maintains a prudent credit risk appetite. As of the end of June 2024, over 98% of the company's credit bonds were externally rated AA A, and over 99% of its non-standard fixed income was externally rated AA A. The company's asset allocation remains sound and asset quality is excellent overall. I'll continue with the embedded value part. In the first half of twenty twenty-four, the company sought progress while maintaining stability, continued to focus on value creation, enhanced the contribution of new business value by strengthening its diversified business strategy, strengthened expense management, promoted cost reduction and efficiency, proactively enhanced the effectiveness of risk reduction management, actively consolidated the effectiveness of asset liability linkage, and endeavored to stabilize investment returns. As of June the thirtieth, 2024, the company's embedded value amounted to 1.4 trillion RMB, an increase of 11.4% from 1.26 trillion RMB at the beginning of the year. Among them, in the first half of 2024, the value of new business achieved rapid growth of 18.6%, totaling 32.26 billion RMB, continuing to lead the industry. The individual agent channel grew 14.6% year-on-year, while bancassurance and other channels grew 80.6% year-on-year. Of the value of new business in the first half of the year, 90.8% came from the individual agent channel. Under the guidance of Unified Reporting and Practice, the bancassurance and other channels achieved more significant results in cost reduction and efficiency enhancement, and their contribution increased compared to the same period last year. The company's active management of interest rate risk and proactive control of liability duration were highly effective, with the sensitivity value of new business to investment yield declining significantly in the first half of 2024. Meanwhile, the sensitivity of value of new business to expenses in the first half of the year was also reduced, reflecting the results of the company's active pursuit of cost reduction and efficiency. This concludes management's presentation of the interim results. Thank you. Thank you, members of the management. Now, I would like to invite questions from analysts and investors at Beijing, Hong Kong venues, and those who are joining us through a teleconference facility. Due to time constraints, please ask no more than two questions at each time, and let me know your name and institution. Let's first take a question from Beijing. First row, the lady. Thank you. I would like to thank the management for the presentation. I'm Sun Ting from Haitong Securities. I would like to first congratulate the company on excellent performance. According to our calculation, under the new standards for Q2 profitability, you have already doubled your year's performance. That is superb, especially for NBV investment, the yield of 3.59%, which is much better than the industry average of 2.8%. I've got two questions for you. First, about investment. In recent years, there have been general concern about the interest and margin loss, and in H1, the interest rate has been falling significantly. So I would like to know your observation about the interest rate trend and the equity market trends. What is your judgment and planning, as well as the intended application among asset classes? Second, also about investment. Your allocation to OCI equity investment has been low, but you have moved up this ratio in H1. Will you place more shares in OCI account? Second, about the life insurance. September the first, the target interest rate will be lowered, and with that, in terms of product policy, what changes will you introduce? And, in terms of product mix, what differences do you anticipate? Also, I would like to know a number from the company in terms of liability cost. How is that, and how it will be in the future trend? I would like to invite Ms. Liu Hui to address the first question, and Hou Jin, the second one. Thank you very much for your question. In H2, we expect the economy to continue its steady growth for the better, and the equity market valuation in general is in historical low, and there are structural opportunities and also long-term value for allocation. In the fixed income market, the downside of interest rate is limited, and there's also a scarcity of high-quality assets. So in H2, we will stick to the matching between asset and liability, and focus on the return on equity, and also tap the advantage of long-term fund of the insurance, so focus on long-duration products, and also allocate more to the high-quality alternative assets with a stable return and capture business opportunities from transactions. We'll also be the critical majority and also allocate more to the high dividend shares, and also make our equity allocation more balanced and structurally more optimized. We'll stick to the long-term intention and also the prudent investment style, so as to achieve a stable long-term return on investment in relative terms. Also, you mentioned about the high dividend shares. Indeed, those shares have outperformed the market by a big deal and also attracted broad attention. We believe that a high dividend strategy has long-term investment value, and we pay close attention to investment in those shares, and so far in this field, the company has already made some allocation, and in terms of OCI, OCI is only a small part, and so far, our dividend ratio has exceeded 6%. At this moment, we believe that the overall valuation of such shares remain reasonable. And down the road, we will appropriately allocate more our investment to the high dividend shares. Well pace our investments and manage the security margin. So we are pay attention to the companies with a sound operation and a governance, as well as a low market value and also high in dividend. So for those industry leaders, we will diversify our strategy and intensify our active management so as to improve the return on our equity investment. Okay. I would like to address the about the falling target rate and the liability risk. On September the 1st and October the 1st, the industry will lower the target interest rate and the guaranteed risk. For the ordinary insurance September 1st, and also the universal insurance and participating insurance on October the 1st. We have made ourselves fully ready, and we have also the strategy of diversification in terms of term, cost, and form. For these three diversities, as guiding principles for products, we enable our products then to meet the changes of asset liability matches and evolving customer demand. This is the overall guiding principle. Facing the new market rate, interest rates, guided by the principle of three diversities, we will dynamically adjust our product mix. For example, in terms of cost diversification, it is possible that over the past period, and mostly it is the ordinary policies that are the mainstream or the main part. In the future, we will better balance the guaranteed risk versus the floating interest rate. The products covering the latter will be increased, especially the dividend-paying comp products. In H1, we have launched some more of the products with a floating rate, and also the participating insurance is also rapidly growing. In the future, across the company, we will make further improvements on our product strategy. For the future market launches of new products, we will also further emphasize our concept on the management of term and the duration. For the duration management, for years, China Life has been committed. In H1, through our results announcements, you will be able to see that due to the management of our new product duration, the NBV sensitivity to investment yield has been significantly lowered. That is one part. As another part, we will stay customer-centric and launch health and also mortality based insurance so as to diversify also the company's source of profitability from the product side. This is about the future product strategy. On the liability cost, the average guaranteed interest return rate is about 2.9% for China Life. Since the beginning of this year, according to the actual investment and the market performance, we have lowered the dividend payout of our participating insurance and the settlement ratio of universal insurance in an orderly manner. By the end of July, the overall liability cost of the company has dropped below 3% on average. For the whole six months of the first half of the year, it is slightly above 3%, but the cost structure is coming down gradually. Because of the target and guaranteed interest rates were reduced on August the 1st and September the 1st, so the guaranteed return of new products will be effectively reduced, so in the next two to three years, you can expect to see that the overall target and guaranteed interest rate of the company as a general will come down. For the floating return, in the light of the actual investment performance, we will make sure that our products meet the principle of stability and affordability in terms of the management of the floating return. I would like to invite the next question from Hong Kong. Michelle from Citi, please. I would like to thank the company for the opportunity to raise question. I'm Michelle, analyst from Citibank. I would like to congratulate the company on its performance. But also, in terms of our team and profitability, we have seen a clear reversal in H2 in Q2. In terms of the team or sales force, you discussed the Seed Program for your new sales force that has been rolled out to 24 cities and also earned certain results. I would like to ask why, since Q2, we have been able to see the expansion of team and sales force? Well, are we going to see a moderate continued expansion of your sales force? What have you done in terms of rolling out a Seed Program? What results do you anticipate? Do you have a timetable for that? That is about individual insurance. About net profitability, Q2 also exhibited a clear reversal. In terms of pre-tax profit, the growth has been as much as almost 30%. How about the tax rate? And this year, we have seen that the management actively raising return to the shareholders and planning the payment of the interim dividends. What is the logic of such distribution, and what is your anticipated whole year distribution? Okay. There were three questions, right? The HR question goes to Mr. Bai Kai. Net profit goes to Ms. Yuan Ying, and the final distribution, I will take it. I will invite Bai Kai first. Thank you for your question. You paid attention to our sales force and the reversal in Q2. I didn't feel it. My overall feeling is just a stable size of the team. Since Q4, 2022, when China Life was conceiving and planning the sales force reform of individual insurance and took some actions. In the open day in Tianjin, Q4 last year, we systematically introduced our sales force reform plan for individual insurance. Mainly three parts. One is the upgrade of the existing team, and the second is the newer terms of the new type of sales model, and the third is the product plus the service capability enhancement. Since Q2 last year, we have been following our existing plan and executed in a step-by-step manner. So we actually stick to our core concepts of moderate team expansion, and then conducted a six plus one program as our priorities. I think I already covered those priorities last year at our briefing. So in H1 this year, we have been moving forward the sales force reform in general, but we highlighted the four directions. One is the assessment for high-performance individuals, and that is what we call the high performance or the star talents. The second is the team development. Last year, we were guiding it, and this year we have been intensifying our assessment for the high-performance recruits. The third is the further enhanced assessment of team retention, and the fourth is the work on the management team in terms of assessing their effectiveness of execution. That is to say, that the plan of our reform must be executed and reviewed and assessed, so that at all levels, in province, city, and the county, as well as our outlets and workplace, all the five levels need to speak one language, and all the reform initiatives can be implemented at the grassroots. By all these efforts, the sales force has already made a clear improvement. There are several parts of the manifestation. First, in terms of the high-performance talents, last year, in the first half, because of the fall of the interest rate from 3.5%- 3%, the market responded to the strong anticipation. We, you know, prohibited a hyping, but still the market demand drove the fast growth of our premium and impressive numbers. This year, in the first half, we went through a stable development. In terms of high-performance sales people grew year on year in both absolute and relative terms. So that is remarkable and not easy to achieve. A second, about the high-performance new recruits, namely the recruits with college degree and aged between 25 and 45 years old. The share of such a high-performance recruits and their absolute performance both improved significantly. These numbers showcase the markedly improved quality of recruiting. The third is about the ever-improving team retention. In April and July last year, we launched the new review system in two batches, 236 units nationwide. The result is clear, and retention has been markedly improved. The fourth is the quality and the performance of the new recruits within one year of service. You have seen the numbers in our interim announcements. In H1, the per capita FYRP improved by 12.4% because of the high performance of the new recruits. Within one year of service, the per capita FYRP for ten plus years have outperformed the average level of the entire sales force. That show us the high potential of these people. Because of this move, it is my feeling that year-to-date, there was a dip in January, and in all the other months, there have been stable performance. In Q2, there was a slight uptick, and as long as we resolutely and unswervingly stick to our team transformation strategy and professionalize, specialize our team for more comprehensive improvement, I'm confident in the future performance of our team. For the seed program, which kicked off last December, in Q1, we announced a deployment to thirteen cities. So we announced a rollout to twenty-four cities in interim results. So from the end of 2022 to early 2023, our seed program is expected to be piloted to five or six cities. So you can review the reporting. At that time, we expected it to take two years to make the model work. Then in 2026, it was expected to be rolled out, but we moved this up in terms of accelerating the rollout to pilot cities. Because after our iterative consultation and assessment, the direction, basic system, recruiting, and our review and also training and sales models under the Seed Program were highly, you know, recognized. A lot of the priority cities applied to be included into the rollout. Then it was the management decision that the rollout could be expanded. We are still groping our way forward at this stage, but with the large scope of piloting, so we are embracing a team all with college degree and a flat organization. Upholding a new sales model. The team is already on the way. It has also amassed a certain size with the efforts of all, and we hope that appropriate time, there will be interim results, and then we will update the announcements to the media and analysts. Thank you. Now, let me take your question on tax. Thank you for your interest in our profits. Like you said, in this year's results, the pre-tax profits grew higher on than taxed revenues. This is largely due to the confirmation of income tax. This year, the income tax was CNY 8.8 billion, an increase year on year. The confirmation of income tax is affected by deferred tax as well as other tax factors. Like we introduced earlier, this year's results are better. This will increase revenues and will also affect income tax. Besides, in A stock market and H stock market, we implemented the new accounting standards. Especially in A-share market, we implemented the IFRS 9 and 17. The shift will also affect the income tax. And also deferred income tax confirmation is another factor. I think you all know that in life insurance, the tax exempted on income is high. So for the whole year, it's likely to be negative, which will be a tax loss. The companies, according to income tax, as well as the accounting standards, will estimate the future income tax to determine the amount that can be included in the deductible amount this year. Tax-free income will continue to be high for the company moving forward, so we have adopted a cautious approach to identify the tax losses, which will affect the confirmation of the deferred income tax of the year. Due to the triple factor, our deferred income tax amount has increased this year. Thank you. Now, let me take the last question about the dividend payout. Since our listing, China Life pays high attention to shareholder interests. This time, we have gone out of our way to summarize our dividend payout since our listing. As was shown in the presentation, since our listing, China Life has accumulatively paid more than CNY 200 billion in dividends since listing. In terms of share, the highest is 65. In 2023 last year, taking into account the profits difference under two accounting standards, we increased the share to 58%. This year, to allow investors to share more development outcomes. We've also specially paid out dividends. This trajectory speaks to our philosophy of returning to shareholders. This year and moving forward, our dividend payout will continue on this path. More specifically, while meeting regulatory requirements, we will give full consideration to our performance, shareholder returns, as well as business development requirements, and work out the dividend payout for the whole year. So much for my answer. Thank you. Now, let's get back to Beijing. Gentlemen in the second row, please. Thank you. Thank you for the opportunity. I'm from Dongwu Securities. This question on bancassurance. On the slide 12 of the PPT, we can see that the annual sales of bancassurance dropped, but value ratio increased. The management mentioned some details in the presentation. Could you shed more light on the reasoning behind the increase in the value ratio? And after limiting the restriction of 1+3 of network deployment, as the industry champion, how can we further leverage our advantages? And also, we've noted the increase in embedded value. There's a very important one figure. The EV returned to double-digit growth in the past three years. Our valuation system faced a big test during COVID. So there is one point, the investment return deviation has returned to positive territory, so investment return has exceeded 4.5%, which is the supposed level. So could you elaborate on that? You actually asked three questions. The first question regarding value ratio, an increase in the bancassurance value, this question will be taken by Madam Hou Jin. Regarding the network cooperation question will go to Mr. Bai Kai. So Madam Hou Jin, please. Thank you. Thank you for your interest in the increase in value ratio and embedded value. Bancassurance new business ratio increase actually comes from multiple sources. In our slides, we introduced the sources of cost reduction, efficiency improvement, as well as business structural improvement, which contributed to 13.4 percentage points. This is the result of our reduced cost at bancassurance due to the principle of unified reporting and practice. Moving forward, in the bancassurance channel, we will continue to refine cost management, including the sales cost management and back office cost management. In terms of cost allocation, we will introduce more diversified products, including the matching of different durations, the matching of different cost structures. From product end and post-launch management, we will enhance our fee spread as well as asset liability management results. We hope that bancassurance channel value ratio, with our efforts, will continue to improve, and second, the increase of embedded value. You've also noticed that this year's investment return deviation is positive, like you said. Although the overall return rate disclosed is 3.59%, the comprehensive figure, including embedded value, investment return deviation is slightly above 5%. So as you can tell, the investment return deviation is positive. Thank you. Now let me take the question on one point, 1+3 channel network cooperation deregulation. Well, actually, this is not an isolated move. It should be considered under the perspective of the implementation of Unified Reporting and Practice. After the full implementation of Unified Reporting and Practice at bancassurance, the ratio of fees payment by the banks are converging, all with very slight differences. Banks, before the deregulation and after the deregulation, when they pick insurers, they pay more attention to branding the operations as well as the expertise, customer service capability, and also, more importantly, risk management capability. As the fees are not that different, they will pick insurers with the better capabilities, strengths, and services, and China Life ticks all the boxes in the industry. So the deregulation of 1+3 favors insurers that can provide richer services and products to customers. Due to these advantages, in the first half of the year, China Life's implementation of unified reporting and practice, as well as with the deregulation of network cooperation, aside from our state-owned banks, where we have maintained existing strengths and operations, we have also strengthened cooperation with the local commercial banks and joint stock commercial banks. So in the first half of the year, the number of our cooperation points increased steadily. And in the first half of the year, our bank insurance business scale and market share, as well as market ranking, stayed stable. And moving forward, we have full confidence in bank insurance business, where we can strengthen network building and increase incentive of network cooperation. We will stay committed to our scale and value creation. Externally, we will strengthen communication and liaison with bank insurance channels. Internally, we will strengthen capacity building. We believe our bank insurance channel will continue to grow steadily and healthily. Thank you. Thank you. Let's invite the next question from Hong Kong. This gentleman, please. Thank you. Thank you to management. I'm from Morgan Stanley. I have two questions. First, regarding our products, especially on the dividend insurance. In the first half of the year, the insurance grew very well. What is the percentage of the insurance, and what is the market demand for such products? For example, from first-tier sales force or the promotion from bank insurance, are there challenges? And moving forward, it might increase above 50%. So what is your outlook on the percentage in the midterm and long term? And second question is related to bank insurance. We can see that on this year's one-off payments contracted dramatically. Is this because of the principle of Unified Reporting and Practice? Is this because of maneuver in terms of accounting? In terms of bank insurance, VNB percentage remains low. Do you have any considerations for its long-term value consideration? Yeah, we invite Ms. Hou Jin to address the first question and Bai Kai, the second. Thank you. For the participating insurance, for this round of the rate cut and also the clear requirements and encouragement of the development for participating insurance and the supporting requirements, the market had a you know great interest and expectation for the development of participating insurance. Before the issuance of the circular, the company had already reconsider and plan the deployment and planning of participating insurance. The growth rate of participating insurance has been fast, but due to the history, over the years, there were very few new policies, and after rapid growth, by the end of June, the share of participating insurance in new business premium remains low. That is just the objective reality. And in China, in China Life, the share of participating insurance and other floating insurance accounted for 40% of our reserve. So almost half of the business of the company can be managed in a floating way, in accordance with the market performance. Facing the market demand for participating insurance, we see the necessity of developing participating insurance. For a life insurer, such development is a systematic work. It is not the case that after the product is launched, healthy development will be automatically achieved. So in terms of developing participating insurance, the company has introduced a set of plans, including joining the rest of the industry to educate the customers, so that the customers will more rationally realize the relationship between the floating and guaranteed benefits, and also the demonstrated and realized interest rate, so that the consumer awareness will be improved for the development of participating insurance.... We will also manage better our sales force by a categorized and a hierarchical level, so that our salespeople can be better trained in terms of selling the floating products, so that they can develop our participating insurance in a more scientific manner. As we expect, as of September, the share of participating insurance in new business will markedly enlarge, and in terms of the specific share or proportion, I can say that we will try to enlarge it and also do a good job in managing assets and liabilities, so as to cope with the challenges of a new interest rate environment jointly. Thank you. Okay, I would like to take your question about the single payment of bancassurance, and also the share of bancassurance value. In terms of single pay premium payment in bancassurance, we didn't do much last year. By strategy, we have not conceived a shift. Since the beginning of the year, we have designed quite a diverse spectrum of single premium payment bancassurance products. Because of the reform of unified reporting and practice, the reduction of the commission and the fees have been steeper than the regular premium payment products. In terms of the reward to banks, banks have their own consideration in terms of how to balance their source of benefit. We did not initiate the restructuring. Second, the big downturn of the single premium payment did not affect our growth of GWP. For years, the regular premium payment products, especially the ten-year and plus products in China Life, have been leading the industry by a big margin. So we have a lot of potential of future growth. Despite the downturn of the single premium payment to bancassurance products in the first half of the year, our momentum remains strong, so we made the adjustment in a reactive way, and that is not bad. We will not intentionally, you know, downsize any business. What we want to achieve is a balanced and a stable growth, so that is our overall consideration of bancassurance. Specifically, you also asked about the share of bancassurance in the overall business. It was about 6% last year in our new business, and this year, in the first half, it has been enlarged to 9%. The main reason is the reform of Unified Reporting and Practice. We will step up bancassurance in the future, and we wish to see steady increase of the value from bancassurance. But in terms of the share, that is a consideration involving multiple dimensions. We hope to see also steadily the growing value of individual agent channel. But if the overall value goes down, but the bancassurance value goes up, of course, bancassurance will take a bigger share, but that is not what we hope to see. So we hope both the value of bancassurance and the overall business growing at the same time steadily. Thank you. Any question from the teleconference? So is there any analyst using teleconference facility who would like to ask a question? Hello, everyone. If you would like to raise a question, please press star to hold. So press star and then number one, please. Hello, everyone. If you'd like to take a question, so please press star and number one. Anyway, let's come back to Beijing. The lady in the front row, please. Thank you for this opportunity. This is Liu Qi, analyst of the insurance sector from Guohai Securities. A follow-up to Mr. Hou Jin. You said your liability cost is below 3%. Did you consider the premium variance and the mortality variance for that? So, because of the rate cuts, have you calculated your trajectory of the liability cost in the next three or five years is going up or down? Second, the NBV growth rate has been high over the past two years. What is your projection for next year in terms of premium and the value of new business? These two questions. Thank you. Miss Liu. So you already mentioned Miss Liu, so I would like to divert your question to Miss Liu, our Chief Actuary, since you mentioned her. The operating cost up to last month was no more than 3%. We didn't consider the variances you mentioned. For life insurance, as you know, typically, we work on three variances or multiple variances management: the mortality, morbidity have been considered in premium, so there are certain sources. And for the premium or expense variance, it is not covered by investment yield as a whole. But if we consider the other variances, the break-even rate will be low, and for new business, the break-even level will be even lower than the existing or overall business. Second, over the past two years, with two rate cuts for the guaranteed minimum and target rates, so considering the development of new business in the future, our overall guaranteed return cost in the next two to three years will trend down. This is what we hope to see as a healthy direction of development. This is about your first question. About the second one, about our new business and its value next year. Next year is gonna be the whole, first whole year with a lowered rate. Then we will actively restructure our products and business in H2. In the various respects, the company will get itself ready for the restructuring. And next year, we will arrange a pretty proactive budget for new business. In terms of value, the company will vigorously reduce cost. That is what the trend calls for, and what the company's high-quality development requires. We'll also do a good job in striking a balance. The volume and risk of new business development. For participating insurance, typically, people believe the value rate to be lower than the ordinary or general insurance products. But actually, participating insurance bring down the overall operating risk of the company, so the value rate is not only about earning, it is also implying the constant risk. So in terms of balancing risk and earnings, the value rate of participating insurance will not be much lower than the ordinary ones. Due to time limit, let's come to the final question from Hong Kong. Thomas, please. From Goldman. I'd like to thank the management. This is Thomas Wang from Goldman. Can I have a follow-up question about the participating insurance? So for the dividend payout, so what is the basis of your interim distribution? Some colleagues have mentioned it is because of the interim profit. Someone said it is benchmarked to last year, whole year distribution. So what is your consideration or rationale for that? You know, as shown by the PBT slide, can we anticipate a whole year distribution rate similar with the historical average? Second, about the expense variance. You mentioned repeatedly the cost reduction and efficiency improvement. What is your anticipation about the expense variance, and how that will help to lower the liability cost? I will address the question like before, and invite Ms. Hou Jin to address your second one. You asked about the interim distribution rationale. Our main consideration is to reward investors. That is the first and foremost consideration. In terms of how much, you are, you know, analyzing the higher or lower distribution ratio of different companies. In China Life, we mostly base our decision on the operating performance. I know there has been good profit in the first half of the year. Second, we consider the solvency ratio. The core and the comprehensive solvency ratio, both are very important. Even after the distribution, our distribution ratio remains quite stable. If we look ahead to the whole year profitability, the interim distribution ratio, of course, must be based on the whole year performance. With a total analysis of all these factors, the recommended interim distribution ratio is around 50% of the distribution last year. So we have taken active stance. You asked about the whole year distribution this year. What we anticipate to be the whole year distribution ratio, as I said. The history shows us the basic concept of distribution. When we decide the whole year distribution, as I said, we will first comply with the regulatory requirement. That is the basic requirement. Then we will consider the operating performance, return to shareholders, and the interim distribution and the year-end solvency, and make a comprehensive consideration. Let me answer this question regarding the fee difference. Fee difference management is a cumbersome management system for life insurance. We can see in the first half of the year, bancassurance channel value ratio increased significantly. To put it simply, it came from bancassurance on business cost reduction. But actually, fee difference management is much more than the reduction of sales cost. It also comes from technology empowerment, improvement of operational efficiency, and back office cost savings, and it also came from the reasonable distribution of cost resources, which can go to the most effective departments. All kinds of management on aim, means, are contributors to increased efficiency. So our fee management, and also moves to boost the fee difference, are ongoing process, and the results of the process are gradually unleashed. In this year's notice, we can see that the Unified Reporting and Practice is not only applicable to bancassurance. Actually, this is aligned with our approach to cost. This helps us on better refine our cost management by providing a conducive context. In this environment, we will gradually improve our fee spread. Thank you. Now, due to the time limit, we will not be able to take all your questions. If you have further questions, please do not hesitate to get in touch with our investor relations team at any time. This brings us to the end of our twenty-twenty four interim results briefing. Thank you for your time. Goodbye.