New China Life Insurance Company Ltd.

Good afternoon. Welcome to our company's annual results conference for 2023. I'm the company's VIP chief actuary and board secretary, Gong Xinfeng, and I'm the host of this meeting. First of all, I'd like to introduce to you the management members of our company who are attending today's meeting. They are Chairman Mr. Yang Yucheng, President Mr. Zhang Hong, VP Mr. Qin Hongbo, VP Mr. Wang Lianwen. In addition, we have the honor to invite the company's independent director to attend the meeting online. The conference will be divided into two parts. Introduction and the Q&A session will provide the translation. Ms. Yang will introduce our company's annual results. And later, we will start a Q&A session. If you want to ask questions, please Press star key and number 1 to enter the queue. Now let's move on to the introduction session. Please welcome Mr. Yang Yucheng to introduce the company's annual performance. Respect the investors, friends from the press and analysts. First aisle. Welcome to attend our company's annual performance. Thank you for your support to our company in the long term. Next, I will introduce the company's reform and development in 2023. The company formally implemented the requirements of the Central Economic Work Conference and the Central Financial Work Conference, intensified top-level design, initiated professional and market-oriented reform. First, development position. Clarify positioning as a financial service group with life insurance at its core. On the main responsibility and the main business development, initiated wealth management system building, strengthen asset management capacity, explore innovative development model, accelerate old age care business. and realize one-stop financial product supply, improve system mechanisms, explore market-oriented personnel selection mechanisms, strengthen staffing at all levels, enhance cost-effective management, elevate the refined management level, attach green products on systematic operations, Strengthen risk control and compliance system. Upgrade management system. Improve marketing system. Introduce a new basic law for agents and clarify high-performance orientation. Improve product system. Center on customer interest. Filter full circle product mechanism covering demand research development. Upgrade service system, offer more financial, tax, and legal services. Integrate health care and older care resources. Optimize support system, enhance coordination and operational support. Optimize development layout. Prioritize development markets, consolidate complex regions, build strong local offices. Initiate regional development layout. Improve supporting policies in respect of signals and products. Adopt differentiated operations and improve the closed-loop mechanisms for supervision implementation. As a state-controlled financial institution, we serve national development strategies with focus on technology finance, growing inclusive pension and digital finance. By the end of last year, the company supported real economy, invested 920 billion RMB up 7.5% a year. So national strategy invested 240 billion RMB up by 19.7%. Support strategic emerging industries invested 25.8 billion RMB up 43%. Support green development invested 17.4 billion RMB up by 19%. Support construction of solar pillar pension system invested 4 billion RMB. Support financing SME invested 10.6 billion RMB up by 253%. So National Strategy on Regional Development invested 163.3 billion RMB, up by 11%. We fulfill social responsibilities as a responsible state-owned company. For rural revitalization, we provided funds of $20.66 million to support 20 assistance projects. Engaging in charitable donations, we donated $18 million worth of cash and supplies. And we donated to 940,000 sanitation workers worth of insurance amount. We stay committed to people-oriented finance and fulfill insurance responsibilities. We serve for 31.986 million individual customers and 3,000 institutional customers. And since technology empowers customer service, the smart cluster provides Cluster served a total of 22.53 million visitors. Continue to improve product supply. Stick to diversify the product strategy. Encourage product innovation and improve competitiveness. By the end of last year, there are 169 products on sale. For insurance responsibilities, we settled 4.4 million cases and compensated 15.9 billion RMB. and build a brand of fast settlement excellent service. Upgrade service capabilities. We set 1,500 service contours and 630 elderly service stations which benefited more than 100,000 customers. We stay committed to high quality development and and build brand power and manifest brand value in last year. We was rated A2 by Moody's and was rated A by Fitch and listed among Fortune 500 for three years and was top 500 public companies by Forbes in 10 years. Next, I will introduce company value growth. In last year, the company adhered to high-quality development. The new business value grew rapidly. On a comparable basis, the MBV was 4 billion RMB up 65.1%. APE-based and first-year premium-based MBV Margin increased by 3.7 percentage points and 3.4 percentage points. See the development opportunities of the industry. The gross return premium reached 165.9 billion RMB, including FYP reached 40.9 billion RMB, up by 5.4 percentage points. Renewal premiums reached 121.3 billion RMB, up by 1.3 percentage points, accounting for 73.1% of the GMP. In 2023, the company focused on regular business and continued to improve structure. The first-year regular premium from long-term insurance business reached 23.5 billion RMB, up by 31.8% Its ratio to first-year premium increased by 11.6% plus regular premiums with payment periods of 10 years or more totaled $2.9 billion. Individual insurance channels formally pursue the philosophy of focusing on value and maintain regular premium growth. The FYRP from long-term insurance business reached 11.1 billion RMB up by 9.8% year-on-year. The regular basis went enhanced. The individual insurance channel placed high-performing agents at the core, striving to further specialize the professional and elite sales team. We have seen factor on the high-performing insurance team building. The monthly average comprehensive productivity per capita was 6,294 yuan. The bank assurance channel focused on regular business. The key business indicators have grown rapidly. The FYRP from long-term insurance business reached 12.4 billion, up by 68.5 percentage points. The Bank Assurance Channel was committed to transformation and a customer-oriented concept. It has professional capabilities and a formally built new business ecosystem. Optimized channel layout. Stabilize cooperation, strengthen key breakthroughs, and achieve rapid growth in important partners. Focus on regular premium business. FYRP's business share was up 15.2 percentage points. Enhance team building, strengthen capability improvement. Business development, a high number of customers in progress. Insurance trust was executed. The business quality has been improved rapidly. The 30-month persistence ratio of individual life insurance business was 89.8% up by 7.2 percentage points. will do a better job in 2024. The persistence ratio is a key indicator. The company's investment assets have increased rapidly and stably. Our investment assets reached 1.3 trillion RMB, up 15.4 percentage points. The capital market fluctuates greatly. The main broad-based index and the profit of the company was under pressure accordingly. In the new accounting rule, the total investment yield was 1.8% and the net profit yield was 3.4%. The company's investment assets are mainly fixed income investments. By the end of last year, financial investment bonds accounted for 50.4%. We adhere to value-oriented investments Adopts flexible tactics, control positions, grasp structural opportunities. We combine medium and short duration products with long duration interest rate bonds and extend asset durations. We are actively seeking high quality products and taking measures to prevent credit risk. The company continued to reduce non-standard investment by the end of last year. The non-standard investment totaled 156.9 billion yuan, a decrease of 64.2 billion RMB, decreasing 6.7 percentage points compared with the end of last previous year. Most of the non-standard risk investment underlying assets are loans. We have implemented subject credit and have good credit enhancement measures. The existing non-standard assets with AAA ratings accounted for 98.6%. The overall credit risk was limited. By the end of last year, the company's cost-efficiency margin ratio was 157%. up 16 percentage points. Comprehensive work-sufficiency margin ratio was 278% up 40 percentage points. They are a solid foundation for the sound development of the company. Next, I will introduce the company's outlook for the future in 2024. The We will try to build an international world-class modern insurance company.

We will thoroughly grasp the principles of the Central Work Conference.

Stress and strategic leadership and try to build a professional market-oriented modern international insurance company. Stress and strategic leadership and advance reform and transformation. Cultivate our internal strength. Transform towards a learning organization and a service power organization. We will build a training system that covers all internal staff and external agents. Build a customer service support system with efficient collaboration and effective empowerment. Enhance our development capabilities and consolidate the foundation, focusing on structural optimization and vital growth. Improve asset and liability management. Combine the requirements of the liability side with the requirements from the asset side. We will strengthen sustainable development, upgrade the service system, and create a service ecosystem, serve the construction of multi-level and build models such as insurance, homestay, elderly care, home insurance, plus high-quality health, and implement the Highline Works brand, Xinhua Zun, and provide the people with a wide range of products, shape the brand's future culture, and enrich the spiritual heritage. We try to combine the financial culture with Chinese characteristics, combine our 27-year history, and refresh the cultural value, advocate completion and openness. and institutionalized culture and highlight cultures with actions and build NCI a trustworthy brand. That's the end of the presentation. Thank you.