Bank of Chongqing Co., Ltd. (1963) Earnings Call Transcript & Summary

So our shareholders, online, offline investors, analysts and media friends, good morning to all. Warmly welcome to everyone to come to our Bank of Chongqing Annual Results Release Meeting. My name is [ Hong Simon ]. I'm the moderator. So with the new spring come and also with refreshing wind, we believe this is the best timing to carry out such a gathering online is such a best opportunity and explain to everyone about Bank of Chongqing 2024 operating results and also annual results release. This time, through SSE Roadshow, Bank of Chongqing, WeChat channel and also the Chongqing website and other platforms, we are going to synchronize information. At the same time, we also get the interactive channel in a written way in SSE Roadshow Center. I warmly welcome everyone to ask the questions and also for the questions that are going to need extra attention, we're going to answer your concern very timely. Now please allow me to introduce to you about our leadership team participating in today's meeting. Mr. Yang Xiuming, our Chairman; Mr. Zhu Yanjian, our Independent Director; and also Proposed Vice President, Mr. Zhang Peizong, Mr. Zhang Song, Vice President; Mr. Li Cong, Vice President; and also Mr. Wang Weilie, Vice President and also Chief Risk Officer. So to start with, I'd like to pass the floor to Mr. Yang Xiuming, our Chairman, for the opening remarks.

Respected shareholders, investors, analysts, media friends and also the friends who are concerned with the Bank of Chongqing, a very good morning to you all. So in such a breezing spring, we always press ahead for the brighter future. It's my huge honor to meet everyone at 2024 annual result presentation of the Bank of Chongqing to introduce to the market and investors about in the past 1 year, our operating results and also development achievements. On behalf of the Bank of Chongqing, I would like to express our sincere welcome and heartfelt gratitude to all the friends from a work of Life. 2024 is important year for us to accelerate development and also to press for the better development. Over the past year, we continuously implemented the spirit of the 20th CPC National Congress and the second and third plenary session of 20th CPC Committee and also earnestly implemented spirit of President Xi Jinping pay a visit to Chongqing and also implemented decision and deployment from the CPC Central Committee and Municipal Party Committee. We focus on the role played for the 2 major orientations, 3 roads and 6 districts and also the main construction. We focus on the high efficiency, high-quality service, high-quality development and also the other high positioning we have for ourselves. At the same time, we also focus on the 5 3 major initiatives that stabilized the quality of asset financial management safe operation to consolidate the 3 fundamentals and also make sure for our asset liability scale, revenue profit enhancement and our service should also be improved. We also focus on not only the prediction extension, et cetera, but also focus on some technology enablement and also the mechanism empowerment, et cetera. At the same time, we focus on better service to clients and also talent building and also comprehensive operationability listing. We not only have seen the new breakthrough in our business indicator and also reexpansion in our service and the release of those kinetic energy. To start with, you can see our performance indicator has seen new breakthrough, such as you can see there are synergy between scale efficiency structure and quality. First, in the structure, we have made steady progress. The main scale indicator has enjoyed double-digit growth, such as our total assets stand at CNY 850 billion, reaching CNY 856.6 billion, increase of 12.7% and total deposit of CNY 474.1 billion, increase of 14.3% with increment -- increase reaching historical high and new record. Total loans stand at CNY 440.6 billion, increase of 12.1%. Second, efficiency is stable and also quality improving while continuously improving the spread management capacity, focus on intermediary business and also promote top line, bottom line to maintain the double positive growth. In 2024, we achieved operating income of CNY 13.68 billion, increase of Y-o-Y 3.5%. Net profit is surpassed CNY 5.52 billion, an increase of 5.6% Y-o-Y and net income from fee and commission increased by 116%, accounting for the 3.3% revenue ratio. And also as a percentage of revenue and also the other indicator, we have maintained definitely at a very good level compared with other peers. The third thing is about the structure. We also improved it in a very good way. And also, you can see our ratio and also document accounts for this kind of [indiscernible] by 5.4% and also for the deposits improved by 60%. And also for the savings, deposits enjoyed 24% increase. And also, you can see the ratio increased by 4.2%. We're also driving the core liability increased by 3.2% and also interest payment rate on deposit and savings had dropped by 20 and 30 bps, respectively. Besides for the quality is not only stable but also improved. Thanks to the science and technology empowerment, we also improved our risk management and control the liability, et cetera, and also has a better disposal of the nonperforming risk assets. We also treat this 3 increase and 1 -- 3 decrease and 1 increase in the nonperforming and attention rate, overdue rate and the provision conversion, such as you can see that for nonperforming dropped by 0.09% and attention rate dropped by 0.72%, overdue rate dropping by 0.22% and also provision coverage ratio improved by 10.9%. And also, we have seen the type of decrease, which is 14.4%, up by 1.09%. Second part is focused on the overall structure, focus on major strategies such as the economy, people's well-being, et cetera, focus on the accurate connection with the national regional development demand in depth implementation such as [indiscernible] project, we focus on the major implementation of the strategy with the financial strength to support Chengdu-Chongqing Twin-City economic Circle and also construction of the New Land and Sea Corridor and helping this Western region to have the new financial center. In 2024, for the 2 economic circles, we have put forward CNY 150 billion of credit. We also have of CNY 400 billion in total in the past 3 years. Now you can see they are at least CNY 715 billion for this kind of the economy. We also got some digital system for the picking up the goods, et cetera, and also want to support it central enterprises with local enterprises collaboration. And all this work has surpassed [ RMB 70 billion ] as a total value. The other things we are going to support the real economy and also industry upgrading and green development. We closely link Chongqing to the 33618 model manufacturing cluster system and which means the 3 provinces such as Sichuan, Shaanxi and Guizhou, the 3 provinces are going to join hands together for their productive layout and do a very good financial work. We want to release more vitality to the market and also focus on the low end to the size of the technology base, the enterprises, green inclusive manufacturing industry grew by 32%, 40%, 22%, 14%, respectively. We also want to create a new model for the enterprises development and especially serving the high-tech enterprises. You can see that we not only got some R&D and also the legal entity and also carry out their own ESG ratings. And for more than 1 million enterprises, we have carried out a comprehensive ESG. And also we have issued the industry first, industry green efficiency loans et cetera. And also at the same time, we're using some -- the industry green efficiency code and issued a CNY 5 billion green financial bond. Said we focus on people's livelihood and also build a full scenario of financial service ecology. We want to practice the concept that is finance for the people, focus on the key area of the people's livelihood and further to improve the sense of the happiness and gain, et cetera. We also iterately launched the mobile banking version 7.0, continue to enhance people's application scenario with a better increase of the consumer in the mobile banking. Now you can see an increase of 600,000. We also want to respond to people's new demand for the consumer credit, and we also came up with the new loans. You can see it's a 100% balance increasing and also we accelerated the transformation for the service channel, especially for elderly friendly, et cetera. We have offered 2.5 million middle age and older age people with caring and convenient financial service. You can see the balance of loan for the elder industry has increased 20% increase. And at the same time, we have conducted more than a lot of the comprehensive education, the total activity, and we also have reached 3.5 million financial consumer and help them to enhance their ability to protect the rising interest. So third part vigor and momentum has been further released for talent mechanism figures. All the things has been continuously empowered to increase efficiency. First, we want to focus on the talent building, make sure the capacity are going to be further bolstered. We also completed new policy committee teams and also the turnover of the Board of Directors, the team member has become more professional and younger. And now you can see the management experience have covered the SOEs that own large banks and the cities, room, commercial banks, security company, financial leasing company, enterprise, et cetera. They have become a locomotive in the local economy, and we not only [indiscernible], but a focus on management plus professional industry. And through the dual channel, you can see the marketing staff has also been incorporated. And we also have appointed those more than 100 people as a middle and senior account manager. We want to stimulate the growth for the leader and talent at the same time. Second, we focus on the optimism of the mechanism and process and to have more organic growth. We have the 12 key programs for reforms and focus on the cost down efficiency boosting and the in-depth implementation of the reform has also started and at the same time, for the secondary of the Tier 2 outlets, the very beginning, they focus on the settlement type, but now it has become the comprehensive type, focus not only marketing, but the other different functions. And at the same time, we also want to build the function integration, et cetera, to make sure the HR are going to be expanded into Tier 1 frontline and other key positions. We also strengthened the volume and price synergy, get a comprehensive revenue evaluation and also business image of connection mechanism to improve our comprehensive operation and revenue gaining capacity. We also optimize authorization and also credit granting mechanism make sure they are going to subject to the flexible adjustment so that we can strike a balance with the risk control. The other things we have some DD, due diligence, and also the other intelligent review for the personal loan, et cetera. And through this way, we are going to got certified intelligent authorization scenario. We have reduced authorization time by 75%. And also at the same time, you can talk about support. We have making more effort to empower digital transformation, strengthen the support of the marketing and also the other well control for the risk. And also, we get the 456 system focused on digital transformation such as digital marketing, risk control, operation, products and also the management, et cetera, the other direction for the digital technology to unfold. We also focus on the other different management. The total number is 65 and focus on the digital business. We also get the other different channels to make sure the resource and traffic will be guided in the red part. The total level has reached 97%. At the same time, we also build the integration and structure for the data exchange, et cetera, more than 100 systems and also the 200,000 data sheet has been combined in overall platforms. And data infrastructure has become ever more solid. Data management has become more standardized and stream and also streamlined and also the unified data service workflow and window has also been taking share day by day. Over the past year, we have accelerated the development with our comprehensive strength be realized at a better level. Now for ninth consecutive year, we have been the top 300 global bank. In 2024, we rose by 8 places to 209 places. This is the best record for us. And for 3 consecutive years, we have been selected by SASAC and by the Double Hundred Enterprises and also for the fourth consecutive year, we have got excellent ratings. And also in the past 1 year, we have been innovative, continuous to push the envelope. We have set up the 16 new outlets for the bank and the total number has exceeded 200. We also get some local legal pass bank, entity bank be granted a special membership at the Shanghai Gold Exchange. We also get the self-operated gold listing business and also the independent underwriting business of the debt financing instrument for the nonfinancial enterprise expanded 1 city and 3 province. First time ever, we acted domestic coordinator for the overseas bonds and also completing the issuance of U.S. dollar bonds. We also guided credit risk mitigation certificate for the first time, we also expanded about the license qualification, et cetera, and also for sustainability has also been boosted. Over the past 1 year, we built the brand and also elevate the corporate value and images. And we also launched Chongqing Bank Wealth for 8 years in a row, we have also been awarded by the S&P AAA rating and also the A+A stock value have also been growing by over 40%. And for 5 years in a row, we have also been listed among the local corporate banks for the advanced fintech regulatory application. 2025 has been pivotal because it is a key year for us to complete the 14th 5-year plan and also the start of the 15th 5-year plan, and we continue to forge ahead and aim high. And on behalf of these goals, I would like to say that we would like to focus on the specific development of the 15th 5-year plan and also improve the strategy as well as measures, and we would like to aim high and deepen the development as well as the transition, focusing on the high positioning. And we'll also continue to enhance the market competitiveness as well as sustainability. We deepen the transformation and even structuring. We would also like to go deeper to seek greater market share and also improve the high-quality services. And we would also like to give a play to our advantages as the corporate banks in the locality, and we would also like to have a differentiated development strategy and have our specialized business so that we can have more market share and also have a better reputation. We will also unleash the development momentum and improve the efficiency of the operation and also cast our attention to the key reform tasks as well as the 60 digital transformation project. And we would like to address the pain point and also have the mechanism to help us to optimize the procedures and also trigger the intrinsic momentum for the development. We would like to navigate the high-quality development and also focus on the coordination between development and safety so that we will go further and more solid. We believe that we can just forge ahead with steady progress. Shareholders, investors, clients as well as the friends who have been caring for our bank, with your support, we can have a very good performance. So you have been the strong supporter of our development. Bank of Chongqing will continue to stay committed to our mission and also improve the professionalism as well as the effectiveness and efficiency of financial services so that we'll continue to contribute to the socioeconomic development and also create more values for the shareholders, clients as well as investors and also generate more values to the society so that we will just live up to your expectation. Thank you.

Thank you, Chairman Yang. And just now, Chairman Yang has already detailed us the reform development operation, business indicators in 2024. Now let's open for questions. [Operator Instructions]

My name is [indiscernible], analyst at Shenwan Hongyuan Securities. First of all, I would like to congratulate on Bank of Chongqing for the progress and achievement that you have made despite the challenges facing us because of the volatile external environment. We can see that you have the growth of both operating revenue as well as profits. The asset scale has also surpassed CNY 850 billion. And as for the strategic issue, I have to say that you have got a lot of advantages from the policies like the development of the Western China as well as the Chengdu-Chongqing Economic Circle as well as the international land-sea trade corridor. And now you are also building the Western Financial Center. So in terms of the implementation of the major strategies, what kind of arrangements have the bank made? So would you please give us more details?

Thank you for your question. Bank of Chongqing has been the important bank in Chongqing, which is located in the only municipality in the Western China. And moreover, we have also got a lot of geographical advantages because we have been located in the Chengdu-Chongqing Economic Circle as well as the international new land-sea trade corridor. And moreover, last year, we have also implemented the instruction from the 20th NBC as well as the second and the third plenary session of the 20th CPC Central Committee as well as the instruction delivered by President Xi Jinping when he inspected Chongqing that is we continue to stay committed to the 2 positionings and also the 3 roles that we need to play. So we just boost the high-quality development with the implementation of the major strategies like the smart and inclusive finance. And last year, we provided the loan to Chengdu and Chongqing of over CNY 150 billion with a growth of 30% and also the corridor business volume, CNY 57.7 billion, up by 67% and also the excess scale surpassed CNY 850 billion. We have the positive growth of the operating revenue as well as net profit. And we just seized the opportunities from the strategies. First of all, we continue to integrate the functions and also improve the efficiency as the corporate bank. We just give full play to our headquarter of the bank and also make full use of the geographical advantages in 1 city, 3 provinces. We continue to integrate the functions and also unleash the growth momentum. So as for this issue last year, I also elaborated the development strategy, the advantages from the business environment, et cetera. So we continue to stay committed to the strategy and also target the development as well as the market. And moreover, we also have the task forces to forge ahead the relevant strategies, focusing on innovation as well as the projects. And moreover, we also have the interaction between the headquarter, the branches and subsidiary companies. So we have the flying geese pattern to advance the system to implement the major strategies. And secondly, we also enhance our synergy like we integrate the capital, human resources as well as the investment and research resources, et cetera. So you can see we just made good use of more than 30 licenses and qualifications such as financial leasing, independent underwriter for interbank nonfinancial corporate debt financing, member of interbank market dealers and special member of Shanghai Gold Exchange. So you can see we have the interaction of the headquarter, their branches and subsidiaries. We can just have the biggest synergy with the big projects as well as the clients. And moreover, we have also been empowered by the technologies. We just navigate through the digitalization transition, and we just focus on the efficiency, connectivity as well as the open and sharing data management as well as application system. So we have launched the first ESG digital rating system in the Central and Western Bank. And moreover, we also delivered the full digital scenario products for inclusive loans for the sci-tech companies. So we just empower the enterprises towards this end. And moreover, we also improved the safety net, and we have the typical cases for the application of the cybersecurity technology application with the validation system, et cetera. We also deepened the dual integration as well as the transformation of the outlets. We just incentive our employees to have the qualification and also enhance the service capabilities for the private companies and also MSME, et cetera. And we provide 220 sessions training for over 50,000 employees to help them to upskill themselves. And moreover, we expand the channel to attract talent. So this is the first area. And the second, we also have the stratification of the client so that we can have the precise marketing service system, like we have the philosophy of the customer-centric development. We focus on different types of clients and also have the stratification of the clients before we can deliver the precise marketing service to them. First of all, we strengthened the marketing for the key group like the SOE-listed companies or the top companies. So they are the key target groups. We have the specific service mechanism for them. And moreover, we deepened the cooperation in terms of the width as well as the depth. Like we have implemented the major project of the high-speed rail to connect Chongqing and Chengdu as well as the 15 Line. And moreover, we also optimize the stratification system, like we have the 4-dimensional evaluation model, including the scale contribution, the evaluation as well as growth potential and also the quality management. So through the multidimensional assessment, we can have the precise profile of the customers, and we can also have the precise stratification as well as marketing. And we can also have the dynamic mobilization of the resources to better serve the clients by providing them with differentiated services. And moreover, we continue to innovate our products so that we can also differentiate ourselves from other banks and also illustrate our competitiveness. First of all, we just focus on the differentiation of the 1 city and the 3 provinces. We continue to develop the product metrics with our specialty of the products. First of all, we just target the demand specifically like in terms of the financial service promotion, it can just help us to have the better targeting of our services. We can just paid visits to over 8,000 units like the industrial park, the key enterprises and also the management committee, et cetera. So we can just communicate with them before we can deliver the specific services or solutions to them. And secondly, we build feature products, which is center on the modern manufacturing cluster and also provide them with the specific services. We also have the specific loan project to support the [indiscernible] companies. And then moreover, we have also contributed to the development of the green finance pilot projects. Like we have also launched the industrial green efficiency loan as well as the GEP pledge loan, et cetera. And we have also launched China's first letter of credit business of multimodal transport using a single digital view of lading. So we have also ranked #1 in terms of the independent principal underwriting of that financing instrument for nonfinancial corporations. Thirdly, we have also deepened our services like we have the synergy of different units to cover the services in different districts and counties. And moreover, we have also have the exchanges with executives from the companies or from the authorities, et cetera. And we also signed 18 agreements with the intent of credit of over CNY 40 billion. We upgrade the cooperation model and also boost the business growth. And you can see that we have a lot of cases of the financial services, which can give reference to other counterparts. Moreover, we also continue to strengthen our risk control. We have the mechanism to have the control of the risks so that we can have a steady progress. First of all, we just have the integration of the information for us to have the risk control. We just have the connection of the business data so that we can just share the information and try to avert the risk. And we also ensure the authenticity of the information before we give the loan. Second part is to focus on intelligent risk management. We have not only got the risk identification, monitoring, processing and also even [indiscernible]. It's the overall digital system. We have deepened the internal ratings for the client. So that's why they are going to help us to get a better understanding of the client even before we get the business. It's also close management, not only for the risk evaluation and also post-loan monitoring, et cetera. Certain things about how to derisk and also mitigate risk. We are going to implement the responsibility in front line and also to make sure the key risk will be dealt in a proper way and also to strengthen the nonperforming loan management and optimize all the strategy. And we're also going to use other comprehensive moves to make sure we're going to deal with those non risk, such as lawsuit, et cetera. So 2025 is not only closing year for the 14th 5 years plan and also starting year for the 15th 5 years plan. This will be a crucial year for us to write new chapter for the Bank of Chongqing. So we will always bear in mind with Mr. Xi Jinping's requirements when he pay a visit to Chongqing. We're also going to closely follow the decision-making deployment of the CPC Central Committee and the Mutual Party Committee and always focus on the solid work, concrete moves. And we always believe the financial governance are going to help us to serve not only regional economic development of national strategy and also with a better development performance, we trust to our investors. Thank you so much.

Thank you. Thank you so much, Mr. Yang. Okay continue. Next question?

So I come from the [indiscernible] Securities. So my name is [indiscernible]. So this question is we noted recently. There's one question -- there's one document from national government that the guiding opinions are doing a good job of the 5 financial pillars. And I would like to know for the Bank of Chongqing, based on the digital technology already done and also the green banks, the green bonds and also the inclusive finance, they are flying color results. That's why my question to you is as a very important regional key listed City Merchant Bank, how Chongqing are going to do more work in the digital finance and also they have a synergy with the other 5 or 4 pillars.

Thank you so much for your concern. Okay. So speaking about how digital finance and technology are going to be combined, this is a buzzword and hot discussed topic. I'm going to answer this question. 2024, Chongqing Bank accelerated international digital economy development and also digital Chongqing construction deployment. Combined with our own resources environment, we have constructed a new system of digital transformation and also the development, we have formed a new pattern of the overall development and the total coverage. We not only combine the front end and back end and also the new patent has covered every link and also help the digital finance into the new development phase with the full potential to be released. And also for all our work has received a thumb up and full recognition from industry authority and such as in the 2024, financial, digital transformation power enforcement project and also intermediary evaluation, Bank of Chongqing has also been awarded about excellent unit for the enhancement project and also excellent unit for the special task. We are definitely outperforming others. We always believe digital finance is not only an important part of the 5 pillars of the financial industry, it's also the key engines to drive forward integrated development of the science and technology, green inclusive and also the pension, et cetera, is also important engine to boost the comprehensive development. That's why for the Bank of Chongqing not only focus on those independent control, security, reliability of information technology, but we also have won the first prize in Chongqing Financial Industry Cybersecurity Competition. And this has helped us to become the first City Commercial Bank in China to obtain the TMMi5 level certification at a higher level in China and at the same time, focus on the standardized, effective and [indiscernible] mechanism for managing the using data. And for 5 years in a row, we have won the Data Governance Innovation prizes that has been issued by the China Chapter of the National Data Management Association. And also our cases of data excellent management has also been selected as one of the outstanding achievements of the China Banking Industry Development Research by the China Banking Association. So relying on this complete digital finance capacity, we're not only helping to consolidate the 5 pillars, and we believe based on the [indiscernible] characteristic, we were rooted in the key area, identify a small cutting point in the large area and pursue a really precise and also really effective ways. First, we have built the first green ESG rating for the legal entity bank in the Central and Western China, we carry out the rapid identification, evaluation of green enterprises from environmental and societal and corporate governance aspect and by introducing the dynamic monitoring indicator. This will also help us to focus on not only the financial product innovation, customer marketing, risk control, et cetera, as I cover, Shaanxi, Sichuan, Guizhou -- Guizhou and also the Shaanxi, et cetera. We have also carried out a green identification for more than 60,000 business, which has contributed to average annual growth rate of the green loan more than 30%. Second, we have carried out the out-of-the-box or the ready-to-use intelligent decision-making base for the inclusive digital credit and also among the Central and Western China, we are the earliest batch of the forerunner to explore the financial finance, we have supported the research and the development of more than 40 digital credit scenario products and also more than 159 models to be implemented. Last year, the First Industry Integration Data Model and Algorithm Competition (sic) [ First Industry-Finance Cooperation Data Model Algorithm Competition ] organized by China Academy of Information Communication Research, our product has won the excellent award. And the other thing I want to emphasize a little bit is about the human touch and tailor-made products for the niche market and specific market segments. So we offer the personalized and differentiated service facing -- considering the customers who are in the urban and rural residents and especially they are all the different one-stop or the one key tailor-made service. I mean we also give them some of the voice explanations and also some direct recognition to that in this way, they are going to get a lower threshold to get -- get access to convenient financial service. And also, you can see we have still at least 2.5 million consumers age 50 years old. This is a 16% increase compared with Y-o-Y. And also for the mobile bank customer increased by 28%. This is the highest growth rate in the past 3 years for our bank -- mobile bank, and we have also improved elder-friendly transformation. This also belongs to the top excellent cases. The other thing is we focus on the win-win financial technology cooperation [indiscernible], we have always reached a close -- communication close linked collaboration tie with the domestic financial technology enterprises, improve our digitalization and also make sure always stay sharp and sensitive to the cutting-edge technology. At the same time, we actively research all the different products, specifically for science and technology enterprises to make sure they will be the mutual beneficial for everyone during this active communication. Last year, Bank of Chongqing also has won really good rewards in the differentiation for our innovative new loans for the science and technology enterprise specifically. And also in this year government report, we also mentioned the AI+ initiative should be further intensified and implemented and have LLM to be widely applicated. This is the first time ever to be written into a formal report. Now you can say DeepSeek has been localized this year for the Bank of Chongqing, we also have explored more application scenario and the possibility. We will always focus on integrating innovation technology for good, vigorously promote the construction of AI+ scenario and also to bring more connected energy and dynamics to this kind of digital finance, we are going to contribute even further to the 5 pillars in the financial industry and also added our own footnote and interpretation. And we also are going to gather new strengths for new rising of the advantage and also help to better serve the real economy and the people's livelihood. That's all. Thank you so much.

Thank you. Okay. So next question.

So I'm an analyst from the China Merchant Securities. My name is [indiscernible]. My question goes to our Independent Director, Mr. Zhu Yanjian. We also noticed that last year, we got some turnover and Mr. Zhu is the only one that has been selected for the second term. So my question to you is Mr. Zhu, would you mind to explain to you about your understanding to continue to work as Independent Director of Bank of Chongqing and also understanding of the culture of compliance.

Thank you so much for your concern of the independent director. Well, actually, I started this work in 2003. And last year, it's the first year. Well, for a really long time, I have always participated in an independent director to not only focus on the consulting, but also the monitoring, et cetera. I always want to be not only diligent, high efficiency to honor my responsibility and also to safeguarding the interest of the depositor and also SME shareholder, I participated in all the relevant meetings and make independent impartial decision and deliberation on all the topics that come to my table. And I review and supervise those matters that have the potential major conflict of interest such as the major connected transactions and all the related transactions and appointment assessment of the senior manager. And we also effectively give full play to our professional strengths and put forward constructive opinions, et cetera, to make sure the legitimate rights and interests will be protected. But of course, as independent director of the Bank of Chongqing, we can perform a better duty, but this cannot happen without the company's standardized and sound governance system and perfect effective internal control. So as A+H listed company, Bank of Chongqing continue to improve the modern enterprises system and also to consolidating the Board of Directors and performing the duty to protect the system. At the same time, you can see for our regulatory assessment, the corporate governance has also received the highest level and the Board of Directors has also been honored as 2024 outstanding practice cases of Board of Director of the listing company, listed companies association in China. And speaking about the compliance culture, Bank of Chongqing always focus on the requirements and carry out frequent self-reflections and focus on closed loop management, not only have some conducive reflections, but also focus on diligent implementation. We want to make sure people are going to get active awareness about this part. And besides starting from awareness, consciousness and actions and also the rectification, the link and also continue to improve this close-loop management. We also want to make sure we are also going to maintain a healthy and conducive development and also in a sound way. Last year, we know that DR, the change of our Board of Directors and thanks to everyone's trust has been reelected as independent director for the seventh session of the Board of Directors. In the future, I'm going to continue to perform my duty as an independent director in a diligent and responsible way together with other independent directors to perform my duty and also to safeguard legitimate rights and the interest of all shareholders, especially the small and mid-sized shareholder and also to promote a steady forward development of the Bank of Chongqing. That's all. Thank you so much.

Thank you. Thank you so much Mr. Zhu Yanjian for your answer. Okay. Moving on for the next questions.

I'm analyst [indiscernible] Securities. I got one question about the retail business. So I would like to ask when the whole industry retail business is slowing down, in the Bank of Chongqing, any specific success you have reached and also for the next -- of the future, any moves you are going to operate for the key customer group?