New China Life Insurance Company Ltd.

They are CEO, President Mr. Li Quan, Vice President Zhang Hong, Vice President CFO Yang Zhen, Vice President Yu Zhigang, Assistant President Wang Liwen. We also invite three independent directors to attend online. They are Mr. Zheng Wei, Mr. Geng Jianxin, and Mr. Ma Yuting. Today we have two talks. The first is The second is Q&A session. We will offer simultaneous interpreting for friends. For investors, analysts, and mediums from France, if you want to raise questions, please press star and 1 to queue in line. Next is the results announcement. CEO Mr. Li Quan will introduce the overview and the insurance business. Mr. Yang Jun introduced financials and investments. I will introduce embedded value. Now, let's welcome Mr. Li Quan. Thank you. Ladies and gentlemen, good afternoon. Welcome to NCI 2022 Interim Results Announcement. I will... Study Group. Renewable premiums. As for environmental and social responsibility, New China Life always adheres to low carbon and environmental friendly operation modes, applies mobile platform and mobile terminals for customer and order management, reducing proper consumption in traditional marketing model. The company actively shoulders social responsibilities, serves the people's livelihoods, in the first half of 2022, rising by 228.8% in our year. The company allocated 10.4 million IMB and supported 11 assistance projects. The company purchased agricultural goods and products worth 3.28 million to support rural revitalization. As at June 2020, In 2013, New China Life has carried out public welfare activity for sanitation workers in 158 cities, donated somewhere short of $333 billion, settled claims with a total payment of $27.6 million. At present, the life insurance business The development environment is complicated and severe. In the second half of 2022, in accordance with the business orientation of stabilizing volume and highlighting value, the company focuses on core business, innovative products, improve team quality, and take multiple measures to promote high-quality developments. First, launch diversified products focusing on customers' needs. The company will strengthen product innovation in key areas, The company will integrate internal and external resources in health care and old age care to expand the coverage of products and services. Second, improved quality. The company will offer more support for high-performing teams to The company will push forward run SBI activity, create more activities to accumulate customers, carry out classified customer management. The company will upgrade those In terms of insurance business, that's the GWP. In the first half of 2022, under the guidance of stable growth by regulators with spread of COVID-19 and severe and complex markets, life insurance industry went through adjustments. Business was stable. Renewable premiums reached 70.2%. GWP breakdown by channels. Individual insurance channel realized premiums of 69.5 billion, down by 0.5% young year, accounting for 67.8% of GWP. Bank insurance channel realized premiums of 31.1 billion, up by 7.8% young year, accounting for 30.4% of GWP. Group insurance channel realized premiums Long-term insurance amounting The company actively explored the transformation of self-steam and continued to create agent headcount to build high-quality self-steam. As of June 30, agent headcount reached 318,000. down by 27.9% year-on-year. The monthly average number of qualified agents was 61,000, reduced by 41.9%. The monthly average qualified rate was 17.5%, decreased by 1 percentage point. The monthly average qualified productivity was over 3,000. In terms of bank assurance, in the first half of 2022, bank assurance channel deepened For premiums for major products, FYP from Party Station Insurance was 16.8 billion out by 12.2%. FYP from Health Insurance reached 2.8 billion, down by 38.2%. FYP from Traditional Insurance amounted to 9.7 billion, down by 5.8% young year.

Thank you, Mr. Lichuan. Next, I will introduce the financials and investments of the company. First, I'd like to introduce the major financial indicators. The total revenues of the company has a slight decrease, down by 4.8%. There are four parts. First is the insurance business. Just now, Mr. Lichuan has elaborated. And in the difficult environment, The company has about 2% increase of the net return premiums and policy fees by the investment income, decreased about 26.8%. Those two indicators contribute to the 4.8% decrease of federal revenues and for the expenses, The commission and brokerage expenses has an obvious decrease, about 30% decrease, and the administrative expenses has a slight decrease of 3.3%, which shows that the company has conducted effective measures to control the cost, especially in the difficult environment, and to take It has decreased by 50.8% and basic earnings and weighted average hourly attributable shareholders of the company also see a decrease. Next, we introduce the investment performance. For the investment assets, we can see that the investment assets of the company has decreased surpassed 1 trillion yuan to 1.14 trillion, up by 5.3% compared with the end of last year. And annualized total investment yield was 4.2%, down by 2.3 pt. And annualized net investment yield reached 4.7%, up by 0.2 pt. Go to the investment portfolios. As the insurance company has over 1 trillion assets in half of a year, the changes are slight. And we have increased allocation to determine deposits and equity investments. Cash and cash equivalents was increased. And other classes... remains flat, which shows the company's allocation in the first half of the year. And for the next standard asset, the company will elaborate those investment categories for the past several years. Analysts who are familiar with the company will know that the investment assets has a higher percentage in our total investment assets and we have been telling the market that with the growth of the capital market and our allocation of assets in the investment assets, we'll have a decreasing proportion in total investment assets. In the first half of the year, we can see the investment assets of the company The major changes are that the national debt investment come to maturity and there are not a lot national debt investment in the market, so we have a higher percentage of national equity investment. The company has good credit and the credit ratings is high and the assets are secure and with high quality. Last I'd like to introduce the sovereignty. You might know that in the first half of the year, the company has applied the ACROS-2, which have a major impact on the core sums in margin ratio, which decreased by 97.1 PT to 146%. And the comprehensive sums in margin ratio was relatively flat. It's decreased by 11 PT to 240%. And those changes are mainly because of the increase of our business and the change of regulation policies. Next, let's introduce the value of the company. Thank you, Mr. Yang. June 30, they embedded the value of the company's $258 billion, which is flat compared with the end of last year. The value of the first business is $97 billion at about 1.7%, and adjusted net worth decreased 1% to $161 billion. And for the analysis of change for invested value, the major contributor is the expected return and value of new business, which contributed 0.8% and 3.9% to EV growth. And for the negative factors, we can say it's evident we have the... shareholder dividend payment and because of the economic external barriers we have an active impact on the EV. This is closely related to the capital market in the first half of the year and I believe that you can understand this and for the value of new business the MVV of the company reached 2.1 billion down by 48.4% and the VNB margin based on the FYP was 6.6% and the VNB margin based on the APU was 2.8%. This is all for the impact value. Thank you. And this is the end of the presentation. Let's go to the Q&A session to answer the questions of the analysts, media, friends, and investors. Thank you.

And in the Q&A session, because of time limit, everyone has two questions. Please tell us your name and the company before raising questions. Now, let's welcome the first question. Ladies and gentlemen, if you want to raise questions, please press star and 1 to queue in line. If you want to cancel your question, please press star. Now let's welcome Ms. Li Xin to raise first question. Thank you for this opportunity. I'm Li Xin. I have two questions. As you can see, New China Life has some competition advantages in Bank Assurance Channel. In terms of business growth, we ranked forefront in the industries in the first half of 2022. And the Bank Assurance Channel grew rapidly, especially regular premiums. How to obtain business value is our concern, and we also put much effort to improve value. To decrease our cost, we also We emphasize on single premium and regular premium, new customers and old customers, as well as business volume and business value. And this is my answer for bank insurance channel. The second question is asked by Mr. Yang Zhen. Thank you for your question. In fact, if you follow our results, you may know that the newly added A little part in our investment portfolio. We control the proportion of the real estate projects. So the indirect real estate is little. It won't shake our investment returns. In terms of investment portfolio, we have very little risk. Thank you. Let's welcome the next question.