Good afternoon. Welcome to ZhongAn Insurance interim report. If you wish to ask a question, please press star one, and this meeting will be recorded. Ms. Zhang Lin, please host today's meeting.
Dear investors, analysts, good afternoon. Welcome to ZhongAn Online's 2026 interim results presentation. I am Zhang Lin. Please allow me to introduce to you the management today. GM and CEO, Jiang Xing. DGM and Chief Investment Officer, Li Gaofeng. DGM and Secretary, Wang Min of the board, and Mr. Xu Wayne. Mr. Jiang Xing, please.
Dear investors, analysts, good afternoon. I am Jiang Xing, the General Manager. Thank you for joining us at ZhongAn Online's 2026 interim results presentation. I also want to express our gratitude for your continued interest and support for ZhongAn. We remain steadfast in our core mission, technology-driven finance and delivering warm insurance. Our business scale continues to grow.
In 2025, our ranking on the Fortune China 500 list improved further to number 400. Our prudent operating performance and solid capital position have earned recognition from reputable agencies, with Moody's upgrading our financial strength rating to A3. At the same time, we have deeply integrated sustainable development into our corporate strategy, actively putting into practice the principles of inclusive and green insurance to reach more customers and populations in need, achieving synergetic growth across commercial value and social responsibility. On the AI front, we continue to promote the one AI strategy. At the foundational level, we leverage massive policy holder data and insurance-focused multimodal corpora with the ZhongYou LingXi middle AI platform, providing engineering-level management and control. In the first half of the year, the token consumption exceeded 34 trillion. Last year, it was just 3 trillion.
This speed is actually driving the evolution of the product, covering our product and also the underwriting, the claims to compliance, and operational analysis. Through AI, we can improve our quality and help us deliver better services to users. Next, I will provide an overview of our overall operating performance for the first half of 2026. In the first half of the year, we achieved gross written premiums of RMB 16.558 billion, roughly flat compared with the same period. On the new accounting standard, insurance service revenue reached RMB 16.989 billion, representing a year-on-year increase of 12.9%. Adhering to our strategy of quality-driven growth, our combined operating ratio for the first half stood at 95.5%, improving by a few percent compared to last year, and underwriting profit grew by 17.8%, up to RMB 773 million. Total investment income from insurance assets amounted to RMB 1.596 billion, up to 150% year-on-year.
In summary, for the first half of 2026, we achieved net profit attributable to owners of the parent of RMB 1.55 billion, representing a year-on-year increase of 132.2%. Our Hong Kong virtual bank, ZA Bank, recorded net revenue of HKD 578 million, up to 26.6%, and a net profit of HKD 71 million, roughly 1.5 x the level of the same period last year, demonstrating the continued release of profitability from our digital banking operations. Let me introduce to you the channels and brandings. They are our bridge users. We maintain an omni-channel approach to user acquisition and work to build brand mindshare across all touchpoints. In our user operation, we continue to optimize the experience on our proprietary online platforms, providing users with one-stop insurance service.
As of the end of June, the number of new insured acquired through our proprietary channels reached 36 million, with an average of 1.7 policies per user, and the policy renewal rate remaining at a healthy level of 88%. Our focus goes beyond customer acquisition. We place greater emphasis on customer retention and deep engagement, building lasting trust in ZhongAn and communicating our brand promise, protecting every kind of life. Beyond online operations, we also deeply got involved in scenario-based brand building. In the health and fitness space, we have made significant inroads into the event-based scenarios. Over the past period, we provide insurance covering 250 mass participation sporting events, covering 3 million participants and staff exposures, with total brand impressions exceeding 100 million. Through our brand campaign, "Love Sports, Choose ZhongAn," we bring insurance protection into live active lifestyle scenarios while helping our users lead healthier lives.
Next, please allow me to introduce to you the progress. First, healthy life. The premium increased to RMB 3.406 billion, and the average premium reached RMB 650. We built a multi-layer matrix. The two core brands realized the accurate coverage of the group. In the Zunxiang e-Sheng , we expect the revenue of RMB 3.406 billion, and the premium continued to grow by 60%. With our high-end 2026 version of product, we got very good feedback. For the coverage of the two products, including the million level of major disease and critical illness policies and mid to high-end medical insurance, we are meeting the differentiated needs of the users. Alongside with our personal health insurance offerings, our group insurance business achieved a major breakthrough, becoming a new growth engine for the health ecosystem.
Relying on the AI infrastructure, in the first half of the year, our business grew by more than 57.5%, and the growth is worth noticing in the future. In terms of the health insurance, on the service end, we continue to leverage the AI to continuously refine the integrated insurance plus healthcare service loop. We have consolidated full process services, including the health management, extending the insurance coverage from post-claim compensations to end-to-end health protection while enhancing the user experience through all touch points. In the digital life, I would like to emphasize on the key innovative business line, pet insurance. In the first half of 2026, the GWP reached RMB 691 million, representing a growth of 22.7%, maintaining steady growth. During the first half, we served over 1.61 million pet owners, with service penetration continuing to rise.
On the product front, we centered around our pet insurance brand, Zhong Zhong Bao. We have built a comprehensive protection matrix covering pet medical care, critical illness, accidental injuries, and cancer protection for senior pets. We collaborate with more than 18,000 pet hospitals offline, supported by a dedicated care concierge service, offering appointment scheduling, referral coordination, direct claim settlement, pet health consultation, and guidance. Notably, we have launched the country's first parrot insurance product, expanding our coverage into the exotic pet segment and uncovering new opportunities in the niche market. On the service capability front, AI has been deeply embedded throughout the entire pet insurance workflow, enabling us to serve millions of pet users at scale while seamlessly integrating the insurance and healthcare services into an integrated insurance plus service offering.
Within the digital life ecosystem, while maintaining a steady performance of our core user in our core e-commerce and travel business, we continue to roll out product and service innovations and capitalized on the growth momentum on low altitude economy. Our GWP in this segment achieved a 27% year-on-year increase. In addition, our operations covering SME protection, home property insurance, personal scenario-based coverage, and accident protection for sports scenarios have been growing across multiple fronts, consistently meeting the risk protection needs of our groups. Next, let's take a look at the auto ecosystem. In our auto ecosystem, we continue to build a strong foundation for an independent business growth in the first half. We reached RMB 1.54 billion, up by 4.2%. We continue to capture the tailwinds of the booming new energy vehicle industry. In the first half, the NEV insurance GWP grew by 105.7%.
The overall percentage of the NEV insurance is up to 36.5%. We remain focused on the private passenger car segment, which accounted for 83.5% of the total auto GWP, delivering solid auto insurance margins. We also used AI and other technologies across the entire automotive industry service chain. Through AI-powered video claims processing, we have re-engineered claims service efficiency and enhanced user experience, further consolidating ZhongAn's competitive edge in the internet auto insurance space. Finally, in our consumer finance ecosystem, in light of a challenging external environment, we have proactively scaled back business volume and outstanding loan balances. In the first half, GWP in the consumer finance ecosystem decreased to RMB 560 million, down by 79.2% year-on-year, while outstanding loan balances have been consistently reduced from RMB 22.9 billion at the end of last year to RMB 8.5 billion.
At the same time, we have managed operational risks effectively, with overall risks having been materially mitigated. The consumer finance ecosystem continued to contribute underwriting profits in the first half. That concludes the key business update for ZhongAn Insurance for the first half of 2026. Now I would like to invite Wayne to share an update on ZA Bank's development in 2026.
Thank you, Simon. Let me now walk you through ZA Bank's business landscape. For ZA Bank, as the first digital bank to commence operations in Hong Kong, after six years of development, ZA Bank has integrated six core financial capabilities, deposits, transfers, loans, card spending, investment, and insurance into a single app. Delivering a truly one-stop digital banking service experience that fully addresses customers' comprehensive financial needs.
Built upon this full service foundation, our investment business is the second growth engine that we're strategically building. Looking back at our product evolution, we started with mutual funds and gradually expanded into forex, U.S. equities, cryptocurrencies, and Hong Kong stocks. We completed the closed loop of our investment. For example, we started the H.K. IPO subscription services, providing one-stop support for the Hong Kong stock IPO applications. In April, we enabled direct HKD subscription of USD-denominated funds, lowering the barrier of customers to allocate USD assets. In June, we launched the Cross-boundary Wealth Management Connect, becoming the first digital bank in Hong Kong to offer the Southbound Connect services. In the first half, our investment customer assets under management grew by 155.4% year-on-year, demonstrating very strong momentum.
Going forward, we will continue to enrich our investment product suite and expand customer AUM, drive sustained growth in non-interest income such as brokerage, commissions, and fees to build a long-term sustainable growth engine. In terms of the finance, ZA Bank also remained strong. At the end of June 26, the total asset reached HKD 26.819 billion , up by 7.9%. For the net revenue, it reached HKD 578 million, up by 26.6%. As for the net fee and commission income, it reached HKD 375 million, up by 25.9%. Net service and fees, it was HKD 123 million, up by 75.7%, representing fast growth. In terms of net interest margin, we improved from 2.38% to 2.99%, with an increase of 61 basis points, demonstrating continued optimization of pricing capability in the current interest rate environment.
In terms of profitability, we realized a net profit of HKD 71 million , roughly 1.5 x that of last year. Net margin improved from 10.8% to 12.2%, continuously releasing the profitability. Since its launch in 2020, ZA Bank has completed a full circle from zero to one and from losses to profitability. Today's results validate the sustainability of the digital banking profit model in the Hong Kong market. Now, I would like to invite Gaofeng to walk us through the financial review.
Thank you both for the detailed business reviews and summaries. Now, let me walk you through the company's overall financial performance for the first half of 2026. In the first half, we proactively adjusted our product mix. Domestic P&C GWP remained stable at RMB 16.558 billion, down by 0.6%.
The active adjustment didn't impact our overall business scale, laying a solid foundation for the high-quality growth going forward. In terms of the ecosystem, starting with health, driven by both individual insurance including the personal clinic policy and Zhongminbao. The GWP reached RMB 6.7 billion, up by 7%. For digital life ecosystem, GWP grew significantly by 24.7%, mainly due to the pet insurance and other innovative products, up to RMB 7.743 billion. In auto ecosystem, the GWP reached RMB 1.541 billion, up by 4.2%. In the first half of the year, we also actively pressed down, scale back our GWP of the consumer finance ecosystem down to RMB 560 million, down by 79%. With the new principle of HKFRS 17, the service income went from RMB 15.041 billion, up by 12.9% to RMB 16.989 billion.
For the health ecosystem, premium went up by 16.6%, digital life went up by 31.7%. Auto, up by 26.7%, and consumer finance down by 46.5%. Benefiting from the consistent strategy of quality-driven sustainable growth, our combined operating ratio under the HKFRS 17 further improved by 0.1 percentage up to 95.5%. The overall loss ratio was 56.9%, the COR was 38.6%. If we take a look at the health ecosystem, the loss ratio was 43.9%, up by 1.4% compared to 2025. For the digital life, the comprehensive cost ratio optimized by 0.7% to 99.2%. The loss ratio and also the expense ratios change was due to the structural change.
For the auto ecosystem, the COR was 93.3%, and primarily it was reflecting the normal structural changes, such as the NEV insurance and compulsory third-party motor insurance account for the growing share. Finally, the consumer finance ecosystem COR was 95.6%, with the loss ratio trending upward a bit due to the external environmental factors affecting the underlying asset quality. We have still maintained robust risk control, and the consumer finance ecosystem continue to contribute underwriting profits. Now let's take a look at the investment. The first half of 2026, company's domestic insurance investment income achieved substantial growth, with total investment reaching RMB 1.569 billion compared to RMB 639 million in 2025, up by 150%. The annualized return of investment was up from 3.3% to 7.8%, and actually, the net investment yield increased from 2.1% to 4%.
In terms of the asset allocation as of June, the domestic insurance investment assets stood at RMB 41.487 billion. We would maintain a fixed income plus allocation strategy. The equity and equity funds rose from 9% at the end of 2025 to 13% in June 2026. We realized the simultaneous growth in investment income and asset appreciation. In the first half of 2026, our insurance business continued in steady development with insurance service revenue achieving steady growth in both underwriting and overall insurance segment profit continuing to improve. For the technology segment, a return to profitability, ZA Bank's profits were further unlocked. As a result, the net profit attributable went from RMB 668 million to RMB 1.55 billion, up by 132.2%.
In terms of the capital, as of June, the company's comprehensive solvency margin ratio stood at 287.7%, and its core solvency margin ratio at 279.3%. We realized quarter-on-quarter growth in both. Mainly it's from the change of the registered capital. We further consolidated our capital. Looking ahead, we will remain true to our original aspiration of technology-driven insurance. We'll continue to deepen technology empowerment, refine our products and services, and precisely match the evolving and increasing diverse production needs of our users. Going forward, we'll continue to pursue the operation and high-quality development. Finally, on behalf of the management team, I would like to express our sincere gratitude to users as well as our appreciation to the investors and analysts. We will start the Q&A.
Please provide your name and affiliation before asking a question, and please ask no more than two questions at the same time.
Thank you. Host. If you want to ask a question, please press star one. If you want to cancel, please also press star one. From CICC, please, Mao Qingqing, please.
Thank you for the opportunity. I'm from CICC. Congratulations on the outstanding performance from the underwriting to the investment, from insurance to banking. The performance has been great overall. I have two questions. One is for the health insurance. We saw that in health insurance, ZhongAn had been making proactive explorations. Mr. Jiang talked about the service infrastructure. I think that's an important method to build the edge. Please share a bit more on the service infrastructure of health insurance. The second question is for the Hong Kong Bank. I'm very happy to see that ZA Bank has gone from zero to one. I would like to know a bit more about the planning and the target for the next step forward. Thank you.
Let me answer the health insurance. For health insurance, we always think that the insurance doesn't stay at the claims. It needs to cover the whole recovery process. For our health insurance investment, it's about building the insurance plus healthcare, plus the health management. I would like to further share a bit more. First, for the demography coverage breakthrough, we extended from health to the chronic patients from traditional health insurance. For the traditional insurance, it didn't include the chronic patients, but for our new product, it's designed for that gap. The overall premium continued to grow, and that validated the direction of the rigid demand.
For the chronic disease patients covered, it's not just about that single innovation, and actually it's about the support of the pricing power as well on ZhongAn. That is thanks to our core insights and know-hows that we accumulated throughout the years. Second, it's about our value added, the added value provided by our service. For our Zhongminbao, in that product, we included the recovery cost of more than 16 different illnesses in our coverage. At the same time, we broke through the line of the diagnosis and outpatient, and now we're also promoting the other products covering the pre-diagnosis and the post-treatment. Finally, we want to talk a bit about our B2B product, which is making a lot of progress. We saw that the healthcare need is reflected on the B2B side with employers covering their employees.
We actually accumulated a lot of scenarios and service networks and AI capabilities, and we actually migrated that to the enterprise healthcare insurances. We mentioned that in the first half of the year, we increased by 57.5%, and that becomes our fastest-growing segment. I think it not only reflected our progress, it is actually an important carrier of the scenario. Because for enterprises, people tend to congregate there, and it actually has the advantage of having more data. It's better for intervention, and it's better for risk management on the crowd. In the future, we will continue to promote the product innovation and continue our infrastructure building. On the service end, we want to improve our capability to cover the recovery phase, so that in healthcare, health management, and recovery, we can evolve towards a comprehensive platform covering all that. Thank you.
Thank you, Simon.
Thank you for your attention on ZA Bank. Actually, ZA Bank is positioned as the one-stop service provider for finance management. Looking into the future, we will continue to improve that platform and provide more comprehensive, professional, and robust banking and investment services to our customers and provide long-term values. If you look at the first half of 2026, you can see that in terms of the user scale growing. At the same time, we're promoting the new products and new functions, and we have launched the H.K. IPO subscription service and also the HKD directly to the U.S. equities. We used our matrixes, and we are improving the engagement of the users to improve our profitability. Actually, we also started the Cross-border Wealth Management Connect, which is the first digital bank in Hong Kong for us. That reflected our continuous effort.
In the wealth management part, with the Hong Kong equity and U.S. equity and cryptocurrency, based on that, we want to expand to more portfolios, categories, and try to build the closed loop for the funding of the users. So that we can increase our AUM and also the revenue and contribute even more for that. Thank you.
Thank you for your question. Please wait for the next one.
Next from Morgan Stanley, Rick Zhao. Please.
Thank you for the question opportunity. I have two questions. On the investment end, we saw that in the first half of the year, the growth had been very good, 1.3 x. For the return of investment, it's 1.5 x. Can you have a breakdown for us on the investment, especially on the percentage of the equity assets and so on? I want to ask about the auto, because in the last four years, it has been our growth driver, and we saw that the premium growth rate was slowing down to 4% in the first half of this year. Can you give us an outlook for the next half of the year or next two to three years in terms of growth rate? Is there any other things to look forward to in terms of the expansion of the business?
Okay. Let me answer the investment. The investment was performing quite healthily, and our total asset was RMB 41 billion, and our return was RMB 1.5 billion, up by 150%. The analyzed return was 7%, so it's better than average. For our equities, actually is higher than the average of the industry by 1%, and we are relatively high in terms of the proportion of equities and equity funds. We will keep that to 8%-8.5%. We won't further enlarge. In Q3, for the equity and equity funds investment, we will try to tighten a bit.
In the future, we will try to take into account the macro environment and try to actively change our position. But when the market is in correction phase, we want to allocate high-quality asset, and when the valuation is too high, we will try to tighten up our exposure. We will focus more on the lower yield fixed income. In terms of matching the debt with our asset, we want to seek robust strategy.
Okay. Thank you. For the question, Rick.
In the first half, for the auto premium, we were under a bit pressure, and the growth was 4.2%. On one hand, the EV market actually slowed down, and the growth rate was actually lower than expected, and it's not just about the auto insurance. We still want to focus on the quality. We want to screen the high-quality customers. I think this slowdown is just temporary, and the logic is that we want to improve the quality. In the future, we're still bullish on the penetration of NEV. Looking into the second half of the year, I think there will be some quarter-on-quarter recovery of the business. With the car ownership increasing, we still see that there are a lot of new opportunities.
We want to enlarge the percentage of NEV. Also, we want to use the AI capability to improve the quality of the insurance, and we want to expand the percentage of auto insurance in our portfolio. License is an important thing. In Zhejiang and Shanghai, we already are independently running the auto insurance. We hope that we can expand to other regions so that we can build the foundation for the future growth. We hope that there will be good news on that front. Thank you.
Thank you for the question. Let's wait for the next one.
Next question will be from Citibank. Michelle Ma, please.
Thank you for the opportunity. I'm Michelle from Citibank. I have two questions. First, we saw that Mr. Jiang mentioned about the pet insurance looking strong in the first half of the year, 23%, RMB 691 million. We saw that in this segment, there are more and more listed companies, and we realized that things are communicated a lot on this front. I want to ask, does ZhongAn have any tactics or strategies in this segment? I saw that you have a new parrot insurance. For this, I just want to ask your thoughts on it. We saw this big downfall of more than 80% of a specific segment. Do we want to exit, or do we want to just manage it well and wait for the change?
Okay. Thank you, Michelle. Let me answer about the parrot insurance. The other is about the consumer, right? Later, my colleague will answer. For the pet insurance, this is a segment that we are bullish for the long term.
It's not really about how big the market is, but it's actually about how we established our ecosystem moat already. The second thing is about the potential of the market. We saw that there are already 126 million pets in China, and the pet economy has been booming. Pet insurance is only 4% in penetration from different kinds of statistics. In the first half of the year, the premium was already RMB 691 million, up by 22%. We are serving more than 1 million pet owners. You see that the penetration is still very low. We still have a lot of potential. In terms of product innovation, we still need to strengthen the cat and dog category. We want to differentiate in the already established segments. At the same time, we are actively deploying the segments outside of cat and dog, exotic pets.
Because we discovered that the exotic pet is on the rise. For example, the birds and bugs and reptiles and so on. Things are enlarging there. Recently we have launched the pet insurance, and that is one of our attempts recently. For the exotic pets, considering the attributes and considering the scenario, they are totally different from cats and dogs. We need to have new pricing and a new service network. That reflects the value of the AI capability that we accumulated. We can just try to copy and paste the methodology that we accumulated in cats and dogs to more segments. I think for the pet insurance, that's definitely a great partner for the pet owners and for ZhongAn. We've been a veteran in this field, so we definitely have the early starter advantage.
So we want to continue to go deeper in this market. Thank you. For the consumer financing, Gaofeng, please.
Consumer finance ecosystem, we actively changed the segment in 2026. In the first half, we are actually pressing down the scale. The premium went down by 79%. The total balance was only RMB 105 million, down by more than 50% compared to 2025. The industry was facing the correction risk, but due to our robust principle, we still maintain very good quality in our asset. The combined ratio was 95%, so further improved compared to last year. In the second half of the year, we will actively further shrink our business. The latest result is that the balance was within RMB 8 billion and our asset still remained robust. Thank you.
Thank you for the question. Please wait for the next question.
Next question will be from JPMorgan, Wang Dan, please.
Thank you for the opportunity. My name is Wang Dan. I have two questions. First, about the underwriting side. In the first half, the premium growth rate was slowing down, and actually, the underwriting profit was up by more than 10%, so I think that's a good improvement. The company is shifting from scale-oriented to profit-oriented. Can you give us an outlook on the future in terms of the growth points of underwriting profit? Where are they? In the next three years, do you have a CAGR target of the underwriting profit? That was the first question. Second question for the health insurance. For the health insurance, the COR was maintained very healthily. I think the expense ratio was controlled very well, and it compensated the worsening loss ratio.
What is your view on the stability of the COR of the comprehensive health insurance, and is there any more room for the improvement of fees and expenses? In terms of the loss ratio, do you have any methods to control that to be stable? Thank you.
Okay. Very detailed question. First question for the underwriting profit. Right now for the consumer finance, we're shrinking actively because we are making the strategic choice, and things are better than our expectation. We are actively avoiding the risk of the volatility in that front. In the future, we will not just seek fast expansion of the premium. We will really look at the actual need of the consumers and actually focus on the innovation and optimize our business structure.
First, we want to go deep on our core consumers, and we want to try to take advantage of their diverse need. Second, we want to further enhance our digital capability to improve their experience and improve their renewal. For the auto and pet insurance, we want to have differentiated innovations. We want to have refined pricing and then expand into newer segments and continue to improve the overall portfolio to guarantee the underwriting quality. For the health insurance for ZhongAn, we have been running that business for more than 13 years. We have gone through multiple cycles, and from our previous finance performance, you can always see the resilience of our profitability. You can see that in the first half of the year, health insurance COR was very stable, and for the loss ratio, it was because of the structural change.
Then for AI, in every segment, in every link of the health insurance, in the long term, if we use historic data to iterate our risk control, we can always maintain a controllable risk and risk level in this segment. Thank you.
Thank you for the question. Let's wait for the next one.
From Bank of America, Michael Lee.
Thank you for the opportunity. I'm from Bank of America, Michael. I have two questions. First question about AI, because among all the companies that we cover, ZhongAn is the most scientific or high-tech. You said that you also burned a lot of tokens. In AI, we are actually at the upper hand, right? For AI, what kind of help are we seeing exactly? Like for example, cost downs and efficiency improvement.
Second, people are worried that, yes, you are burning a lot of tokens, so on the expenditure side, will numbers go up? Can you give us an introduction? Second, I saw that in the slides you mentioned that for your self-operated channel, things are going very well. What is your direct business? What is the outlook there, and what is the distribution of resource of self-owned business and the distributor?
Okay, thank you for the question. This year we consumed a lot of tokens. It grew by a lot, but there is good news. Because to consume that much token, you need a scenario, you need certain levels and capabilities, right? The good news is the cost of LLM is getting lower, so the cost is still within the in-control scope.
Apart from the LLM, we are actively deploying and developing our own small model, to improve the ROI and balance it out with the big model. I want to talk about our AI strategy. AI is not just a standalone thing. It's a tool. It's the dual engine of insurance and tech. AI is an important carrier of that. We cover the tech, the user operation, and the overall loop. We have the confidence and capability to merge AI into insurance and the whole value chain. From several aspects, in terms of the business efficiency, we penetrated AI into the whole loop of the verification and the claims and so on. With the automation, we can improve our operation efficiency and optimize our cost structure.
On the other hand, we have risk-based pricing system enabled by AI to make our profit model more robust, and we can be more robust and resilient against the bet cycle. Then on the user operation side, AI can help us to run the user in a more refined way to have better insights on the demand of the users. We can use AI to drive the smart services and lean operation to improve our scenarios and services and expand our new scenarios. They are the reflections of how we use AI. For example, for our customer service. For customer services, they have a limited memory, right? They don't remember a lot of things on the consumers, but AI can help them remember a lot of things. Throughout the life cycle, the data would be labeled.
So when it comes to the future, we will further improve our AI capability to deepen the closed loop of all the change and improve the risk control. We also want to improve the AI agent enforcement or implementation or digital employee. We want to use AI to continue to improve the product and to improve the user operation, to mine the newer product, to use the tech to drive our company's high quality and stable growth. With AI, new innovations, it brings new risks. So we would spend more time to build up our infrastructure to take care of the compliance issue and the risk issues brought by the AI. Then for our self-owned business and distributor, as you mentioned about the strategy and the thoughts that we can share.
In ZhongAn, for our direct business or own business, that is the core strategy for future sustainable growth. In terms of the growth, we adhere to the dual engine drive of self-owned business and partners. We always want to adhere to the high-quality service and allocate our resource according to that. Self-owned business is always our core brand and our core battlefield, and that is also the core testing ground for the new innovations. For the direct business, we can directly outreach to our customers. Aside from that, we also have more than 300 ecosystem partners that continue to bring customers to us.
In the future, we will put in more stakes on the direct business or self-owned business, and we will rely on our product strategy, like ZhongAn Sports, to embrace the sports product so that we can reach the younger user base that loves sports. We also can improve the quality of our user base. At the same time, we can use our short-form video and other platforms. Apart from precisely reaching our customers, we can still output our image of ZhongAn. On the other hand, we will continue to rely on the AI refined user operation to improve our renewal and also value per customer. Because the best branding activity is the word of mouth by our users. That is something we need to continuously work on.
For the ecosystem partners, since there are more than 300, from online to offline brokers and agents, we are launching higher efficiency innovations in the product, and we have gained very good results. Today, we are maintaining very good health in self direct business and distributors. Okay. Thank you. Please.
Since time is limited, that is the end for today. On behalf of ZhongAn Online, on behalf of the management, I want to thank you for participating. Thank you for your participation. You can leave now. Thank you.