New China Life Insurance Company Ltd.

I'm Liu Zhiyong, Assistant President and Secretary. I'm honored to be today's host. First of all, I'd like to introduce to you the senior management attending today. They are Mr. Yang Yicheng, Chairman of the... Mr. Gong Xinfeng, President and Financial Principal. We are also honored to have independent directors to join us online. Today's conference consists of business presentation and Q&A. Now let's start the presentation. Let's welcome Mr. Yang Yucheng. Your distinguished investors, analysts, and media friends.

Welcome to the 26th interview.

We are grateful for your longstanding attention and support for our company. In the first of 2026, we carried out a solid earning and education on upholding a correct outlook on political performance. Bearing in mind the original mission of finance serving the nation and the people, we proactively integrated into the broader national development agenda, followed a path of intensive high-quality development, different coordinate development, reinsurance service and investment, and advanced professional market-oriented and systematic reforms. With concentrated efforts on consolidating development foundation, forging core competencies, executing strategic key tasks, We achieved sustained improvement in operations and maintenance. Market competitiveness and comprehensive strengths were further enhanced. Multiple core indicators sustained sound growth on high base. The company showed multiple progress with more concrete base. Consolidated foundation, optimized structure, greater momentum, and increasing efficiency. The outcome of dual advancement of volume and value and the dual optimization of structure and profitability were further highlighted. In the first half of the year, the GWT reached up by 6.9%. Operating revenue amounted to up by 18.9%. MBV reached up by 11.9%. Embedded value reached 310.4 billion yuan, growing by 7.8%. Total assets amounted to 1.96 trillion yuan, increasing by 3.1%. Net assets reached 123.6 billion yuan, up by 10.8%. Investment withstood the test of capital market volatility and delivered solid results. Annualized total investment yield stood at 6.7%, up by 0.8 percentage points. Driven by the dual momentum from core life insurance business and investment, our value creation capacity improved greatly. The net profit hit a new high of 22.8 billion yuan, surging 54% year-on-year. Committed to sharing operation gains with investors, we propose to distribute an interim cash dividend at 0.73 yuan per share, representing a 9% year-on-year increase. In terms of overall performance, we achieved all funds' growth in business scale and value. FYIP for long-term insurance rose by 27.7%, among which the 10-year and above premium jumped. In our comprehensive growth, our MBV and EV also increased a lot. For business structure, we concentrated our efforts on regular premium and long-term business, delivering continuous structure improvements. The proportion of regular premium business increased substantially. FYRP for long-term insurance accounted for 85.2%, up by 20.8 percentage points. The share of 10-year and above regular premium rose by 3.9 percentage points. We step up transformation for participating insurance. and our product mix has further optimized and has won greater recognition from customers. We strengthened institutional-based operation, refined closed-loop management, and consolidated the long-term mechanism for quality management. Our 13-month persistency ratio reached 97.5%. 25-month persistency ratio hit 93.6%. The surrender rate came in at 0.7%, down by 0.1 percentage point. In the first half of the year, we thoroughly upheld the political nature and people-centered... We stayed committed to during difficulties rising and secured new breakthroughs in serving national strategies, institutional reform, and key strategic priorities. Our work mainly falls into five areas. One, we continue to play the role of two instruments and three nets. Practically guaranteed and improved people's livelihoods serve the real economy and deliver solid progress. Investment balance serving the real economy exceeded 1.4 trillion yuan, up by 15%. Investment balance under the five priorities in finance surpassed 500 billion, rising by 40%. In technology finance, drawing on the long-term natures of insurance capital, we scaled up long-term investment in startup innovation. Investment in relevant sectors exceeded 220 billion yuan and provided protection of some assured over a trillion for nearly 12,000 companies. For green finance, we actively built a service system of green insurance, green investment, and green operation, and participated in green projects covering clean energy, green consumption, and other fields. With an investment balance exceeding 110 billion yuan, we offered protection of some issuers of more than 310 billion yuan to 6,700 green enterprises. In inclusive finance, Focusing on the protected groups and SME development, our investments stood at nearly 46 billion yuan. On the road to 26 welfare projects, total sum assured exceeded 1 trillion. In pension finance, we promoted deep integration between healthcare and elderly care services. Investment in old-age care and healthcare industry surpassed 26 billion yuan. and the scale of enterprise and occupational annuities under management further expanded. FYP from commercial pension annuity into individual pension and other business reached nearly 8.7 billion yuan. In digital finance, we stepped up efforts to build infrastructure and accelerate digital transformation. Investment exceeded 100 billion yuan. We fostered the growth of online insurance. and provided protection sum assured over 420 billion. Also, we strengthen digital risk prevention and control. Second, we continue to practice the customer-centric strategy on all fronts devoted to fulfilling our commitments for customers and provide enduring protection, greater health, and better life. Enduring protection lies in our commitment to long-term and endeavor to consolidate the foundation for lifetime protection. We worked to strengthen product innovation, improve product competitiveness, diversify product supply, and build a multi-level and multi-function product system. Flexible combination enables us to satisfy customers' full life cycle needs. Also, we improved the product structure, long-term and health protection products, and established a diversified and balanced mix driven by the synergy of participating annuities disciplining incremental life insurance. For improving claim settlement and fulfilling insurance responsibilities, we provided efficient whole process operational services, upgraded the self-service claim function, enabling immediate claim settlement and instant arrival of compensation, special services including advanced payments, medical expense, early compensation for critical units and coverage for advanced therapies were provided. Total compensation reached $7.29 billion with daily average amounting to $40 billion, which manifested the protection function of insurance. We empowered the frontline agents with digital tools and tap into AI and digital technologies to support business expansion. The digital showcasing platform presented our comprehensive service system and increased customer recognition and brand credibility. To build NCI for greater health, we deepened the coordination of medical and old age care resources and built an integrated health security system. We advanced the innovative integration of health insurance and health management. The core of life insurance pension financial is in the deep integration of long-term capital management with medical care and old age care service ecosystem. We offered customers one-stop solution of insurance, old age care, and medical services. We actively explored the integrated growth model and created a second growth curve, expanded the boundaries of healthcare services, and facilitated the front-loading of health management. We continue to cultivate service brands including excellent medical care, healthcare and old age care. Excellent medical care provides customers with prevention, treatment and rehabilitation. The excellent healthcare promotes deep integration of insurance products and services and forms a service system covering treatment, medicine, recovery and care. To forge NCI for a better life, we diversify the ecosystem supply to meet various demands for high-quality life. We upgraded the customer service and the management system, expanded layout of the old aged care service ecosystem, enriched full-life cycle service, and established competitiveness with differentiated customer service. We upgraded the five major service brands. The service ecosystem covers five major sectors and 16 core services. We have deployed 61 health and old age care communities and 83 travel-based projects at home and abroad to provide diversified choices for our customers.