China Securities Journal:

The outline of the 15th Five-Year Plan proposes to let new demand drive new supply, and in turn create new demand through new supply. Recently, the MIIT has introduced a series of policy documents on consumer goods. Could you elaborate on the overall plan for promoting the upgrading of the consumer goods industry and deepening the implementation of the Three Products strategy to increase product varieties, improve product quality, and build product brands? Thank you.

Zhang Yunming:

Thank you for your question. I will invite Mr. Tao to take this question.

Tao Qing:

Thank you for your question. The consumer goods industry is one of China's traditionally strong sectors and is essential to people's livelihoods. From food to clothing, it is closely linked to people's daily lives and well-being. Recently, the MIIT has deepened the implementation of the strategy to increase product variety, improve quality and strengthen brand-building in the consumer goods industry. The ministry issued and implemented the implementation plan on enhancing supply-demand alignment for consumer goods to further stimulate consumption, along with several policy documents to promote high-quality development in traditional Chinese medicine, tea and liquor brewing. It also strengthened standardization management in key sectors, including electric bicycles, lead-acid batteries and printing and dyeing, and improved the quality and safety traceability system for infant formula. By accelerating industrial upgrading and steadily expanding the supply of quality consumer goods, it delivered a coordinated policy package that is closely tied to people's lives and serves consumption. In the first quarter, the value added of consumer goods enterprises above designated size grew by 5.1% year on year, accounting for 27.9% of the total value added of industrial enterprises above designated size. Exports of consumer goods in yuan-denominated terms accounted for 17.7% of total exports. From January to February, revenue reached 5.1 trillion yuan, representing 24.3% of total revenue among industrial enterprises above designated size, while profit reached 310.6 billion yuan, accounting for 30.3% of the total.

The 15th Five-Year Plan clearly states that we should work toward improving living standards while increasing consumer spending and coordinating investment in physical assets and investment in people, so that new demand leads new supply and new supply creates new demand. The MIIT will resolutely implement the requirements of the 15th Five-Year Plan and the government work report, focusing on three priorities. First, drawing up a new development blueprint. The MIIT will issue and implement policy documents to promote high-quality development in light textiles, bio-manufacturing and pharmaceuticals during the 15th Five-Year Plan period. It will formulate action plans to elevate standards and guide the upgrading of the textile and other light industries, and vigorously cultivate new growth drivers, including renowned traditional industries, elderly and child care, local specialty foods and innovative ethnic medicines. The aim is to solidify the foundation for industrial development from the ground up, ensuring policies move from page to factory floor and deliver on what people actually need. Second, addressing the supply-demand challenge. The MIIT will accelerate the implementation of the plan to improve the alignment of the supply and demand of consumer goods, systematically advance the development of a matrix of renowned Chinese consumer brands and expand the supply of distinctive, quality and niche products in areas such as health, China chic, elderly care, maternal and child care, and cultural and creative products, thereby building a diversified, personalized and high-quality product system. Third, focusing on enriching the consumer experience. We will deepen the implementation of the "AI plus" special initiative to enhance product variety, improve quality and build brands. Moreover, we will study and release AI application guidelines for key industries and accelerate the development of around 20 dedicated large AI models and high-quality datasets in the consumer goods sector. We will vigorously develop new models such as flexible manufacturing, intelligent supply, and personalized customization and create immersive, participatory and interactive consumption scenarios. By harnessing AI to elevate the consumer experience, we can make technology more accessible, consumption more appealing and daily life higher in quality. Thank you.

Jia Huili:

Thank you. We have time for one last question.