Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (CPIC) and identifies it as an industry favorite [4][8]. Core Insights - CPIC delivered strong performance in the first half of 2024, with net profit increasing by 37.1% year-on-year to RMB 25.1 billion, and second-quarter net profit reaching RMB 13.3 billion, reaffirming its position as an industry leader [1][11]. - The report raises the target price to HKD 28.3 from HKD 24.8, indicating a potential upside of 37.7% from the current price of HKD 20.55 [4][7]. Financial Performance Summary - **Net Profit**: For 1H24, net profit was RMB 25.1 billion, up 37.1% from RMB 18.3 billion in 1H23. In 2Q24, net profit was RMB 13.3 billion, a 99.4% increase from RMB 6.7 billion in 2Q23 [1][11]. - **New Business Value (NBV)**: NBV for 1H24 grew by 22.8% year-on-year to RMB 9 billion, with a 13.5% increase in 2Q24 compared to the previous year [2][14]. - **Investment Income**: Total investment income rose by 46.5% year-on-year, with fair value gains increasing 2.93 times, supported by a shift in asset allocation towards high-yield stocks [1][3]. Business Segments Performance - **Life Insurance**: Life insurance net profit increased by 43.0% to RMB 20 billion, driven by robust underwriting and better-than-expected investment returns [1][11]. - **Property and Casualty (P&C) Insurance**: P&C net profit grew by 18.6% to RMB 4.8 billion, with a combined ratio (CoR) improvement to 97.1% [3][11]. - **Distribution Channels**: The agency channel saw a 21.5% increase in NBV, while the bank channel's NBV rose by 26.6% [2][14]. Valuation Metrics - The report's new target price implies a price-to-earnings (P/E) ratio of 0.4x and a price-to-book (P/B) ratio of 0.9x for FY24 [4][7]. - The expected return on equity (ROE) for FY24 is projected at 12.3% [9]. Market Position - CPIC's market share in the P&C insurance sector reached 12.3% as of June 2024, reflecting a 0.3 percentage point increase year-on-year [3][11].

Financial Performance - In the first half of 2024, the company achieved total revenue of CNY 194.634 billion, a year-on-year increase of 10.9%[1] - Insurance service revenue reached CNY 137.019 billion, growing by 2.2% year-on-year[1] - Net profit attributable to shareholders was CNY 25.132 billion, reflecting a 37.1% year-on-year increase[1] - The company reported a significant increase in fair value gains, amounting to RMB 20,945 million, compared to RMB 5,333 million in the previous year[110] - The total comprehensive income for the period was RMB 28,313 million, up from RMB 22,965 million in the same period of 2023[111] - The net profit for the six months ended June 30, 2024, was RMB 25,132 million, compared to RMB 18,332 million for the same period in 2023, representing a year-over-year increase of approximately 37.5%[116] Business Segments - New business value in life insurance grew by 22.8% year-on-year, with the new business value rate increasing by 5.3 percentage points to 18.7%[1] - The life insurance segment of the company reported original premium income of CNY 2.63 trillion, up 5.1% year-on-year, making it the third-largest life insurance company in China[6] - The health insurance segment reported revenue of RMB 1.25 billion and a net profit of RMB 0.043 billion in the first half of 2024[41] - The company launched several new products, including "Love Insurance" for critical illness and "Xinfu Nian Nian" for retirement, enhancing its service offerings across health, retirement, and wealth management[30] Investment Performance - The investment income for the first half of 2024 was CNY 6,893 million, reflecting a 57.5% increase from CNY 4,376 million in the same period of 2023[7] - The total investment income reached RMB 56.04 billion, representing a year-on-year growth of 46.5%[71] - The company achieved a net investment income of RMB 39.09 billion in the first half of 2024, a year-on-year increase of 1.7%[71] - The fair value change income surged by 292.7% to CNY 20,945 million, driven by fluctuations in the market value of trading financial assets[7] Asset Management - The total assets under management reached CNY 3.26 trillion, an increase of 11.7% from the end of the previous year[1] - The group’s investment assets reached RMB 3,263.010 billion, an increase of 11.7% from the end of the previous year, with a comprehensive investment return rate of 3.0%, up 0.9 percentage points[17] - The company is focusing on enhancing investment management capabilities and exploring innovative investment asset tools and strategies, while also improving risk management levels[62] Risk Management and Compliance - The company is committed to improving its risk management capabilities and optimizing its business structure and quality[4] - The company emphasizes risk management and maintaining a strong foundation for high-quality development amidst complex international environments[89] - The company has established reinsurance agreements with leading global reinsurers, including Swiss Re and Munich Re, to mitigate concentration risk[83] Corporate Strategy and Innovation - The company is focusing on enhancing digital transformation and integrating big data governance to improve operational efficiency[2] - The company plans to deepen the "Long Voyage" transformation in life insurance and enhance the quality of its agent workforce[3] - The company is actively pursuing innovation in health insurance and digital finance, aligning with national strategies for health and aging finance[11] - The company aims to innovate green financial products and services to support the green low-carbon transition of the economy[4] Customer and Market Presence - The number of customers reached 181.31 million, reflecting a 0.8% increase year-on-year, with an average of 2.33 policies per customer[19] - The company is focusing on enhancing the quality of its insurance products and improving policy retention rates, which have shown positive trends[23] - The company is focused on expanding its market presence and enhancing its product offerings through new technology development[107] Dividends and Shareholder Returns - The company has implemented a cash dividend distribution of RMB 1.02 per share for the year 2023, completed in July 2024[98] - The company distributed dividends totaling RMB 9,813 million during the first half of 2024, consistent with the previous year's distribution[121] Regulatory and Governance - The company has adhered to all provisions of the Corporate Governance Code during the reporting period[99] - The board of directors includes a diverse group of executive and independent non-executive members, ensuring robust governance[104] Future Outlook - The insurance industry is expected to benefit from rising household incomes and consumption confidence, leading to improved insurance demand[88] - The company aims to build an internationally influential first-class insurance financial service group, focusing on value-driven growth and enhancing professional capabilities[88]

Investment Rating - The report maintains a "BUY" rating for the company, with a new target price of HK$24.80, implying a 37.8% upside from the current price of HK$18.00 [4][6]. Core Insights - The company experienced a positive VNB growth of +30.7% YoY in 1Q24, outperforming peers such as China Life and Ping An [2]. - The net profit attributable to shareholders grew by +1.1% YoY to RMB 11.8 billion in 1Q24, marking a turnaround after three consecutive quarters of decline [2][9]. - The insurer's life underwriting focus has shifted back to agency distribution, with agency FYP increasing by +31.3% YoY [2][10]. - The bancassurance channel faced challenges, with FYP declining by -21.8% YoY, although this was an improvement from a -54.6% decline in the previous quarter [2][11]. - The report highlights the potential for margin expansion due to the ongoing Changhang Transformation initiated in 2022 [2][6]. Summary by Sections Financial Performance - The company's net profit for FY23 was RMB 27.9 billion, with an expected increase to RMB 32.2 billion in FY24 [3]. - The EPS is projected to rise from RMB 2.83 in FY23 to RMB 3.30 in FY24 [3][15]. - The company reported a total insurance revenue of RMB 266.2 billion in FY23, with an expected increase to RMB 281.6 billion in FY24 [14]. Valuation Metrics - The stock is currently trading at 0.29x FY24E P/EV and 0.61x FY24E P/BV, with the new target price implying 0.40x FY24E P/EV and 0.84x FY24E P/BV [6][7]. - The report indicates a conglomerate discount of 10% applied to the valuation [5]. Operational Metrics - The company's first-year premiums (FYP) for 1Q24 were RMB 32.8 billion, a slight increase of +0.4% YoY [2][11]. - The agency channel's FYRP and FYSP grew by +25.4% and +44.5% YoY, respectively, indicating a strong recovery in agency productivity [2][10]. - The combined ratio for P&C insurance improved slightly to 98.0% in 1Q24 from 98.4% in 1Q23 [12]. Investment Performance - The net investment results showed a decline of -26.1% YoY, primarily due to a drop in net interest income and a shift from a gain to a loss in investment income [2][9]. - The total investment assets increased by 4.2% YoY to RMB 2,344.8 billion [13]. Solvency Ratios - The core solvency ratio for CPIC Life was reported at 107.9% in 1Q24, down from 117.0% in 4Q23 [11]. - The comprehensive solvency ratio was 195.8% in 1Q24, reflecting a decrease from 209.8% in the previous quarter [11].

Investment Rating - The report maintains a "Buy" rating for the company, China Pacific Insurance (2601 HK), with a target price of HKD 25.00, indicating a potential upside of 45.9% from the current price of HKD 17.14 [1][2]. Core Insights - The company's earnings performance is robust, with a year-on-year growth of 1.1% in net profit for Q1 2024, outperforming peers who generally saw declines. This stability is attributed to consistent investment returns, improved cost ratios in property and casualty insurance, and tax contributions [1]. - The new business value has shown a significant year-on-year increase of 30.7%, surpassing competitors such as China Life and Ping An. The new business value rate has improved by nearly 4 percentage points, primarily due to adjustments in interest rates, product structure optimization, and reduced commission rates in the bancassurance channel [1]. - The comprehensive cost ratio for property and casualty insurance has improved, with a service revenue growth of 5.9% year-on-year in Q1. The underwriting cost ratio stands at 98.0%, a decrease of 0.4 percentage points compared to the previous year, outperforming peers [1]. - Investment returns remain stable, with a net investment yield of 0.8% in Q1, unchanged year-on-year, while total investment returns decreased by 0.1 percentage points to 1.3%, still above industry averages [1]. Financial Overview - The company's total revenue for 2024 is projected to be RMB 342,398 million, reflecting a year-on-year growth of 5.7% [4]. - Net profit is expected to reach RMB 31,745 million in 2024, marking a 16.5% increase compared to 2023 [4]. - The company’s return on equity (ROE) is anticipated to remain around 12% [1]. - The price-to-book ratio is currently at 0.6, with a dividend yield exceeding 6%, indicating attractive valuation metrics [1]. Business Performance Metrics - The new business value is projected to grow by approximately 17% year-on-year in 2024, with a total new business value of RMB 12,890 million [5]. - The comprehensive cost ratio for property and casualty insurance is expected to stabilize around 97.6% in 2024 [5]. - The company’s total assets are forecasted to increase to RMB 2,551,717 million by the end of 2024, reflecting a growth rate of 8.8% [8].

Financial Performance - In Q1 2024, the company achieved operating revenue of RMB 95,428 million, representing a year-on-year increase of 1.1%[4] - The net profit for Q1 2024 was RMB 11,759 million, also reflecting a growth of 1.1% compared to the same period in 2023[4] - The net profit excluding non-recurring gains and losses was RMB 11,752 million, which is an increase of 1.5% year-on-year[4] - Cash flow from operating activities reached RMB 49,887 million, marking a 1.1% increase from the previous year[4] - Total operating revenue for Q1 2024 reached RMB 95,428 million, a slight increase of 1.1% from RMB 94,386 million in Q1 2023[21] - Net profit for Q1 2024 was RMB 12,088 million, compared to RMB 11,888 million in the same period last year, marking an increase of 1.7%[21] - The company’s total expenses for Q1 2024 were RMB 81,356 million, an increase from RMB 79,474 million in Q1 2023, reflecting a rise of 2.4%[21] - Basic earnings per share for Q1 2024 were RMB 1.22, slightly up from RMB 1.21 in the same quarter last year[21] Asset and Equity Management - The total assets as of March 31, 2024, amounted to RMB 2,441,419 million, up 4.2% from December 31, 2023[4] - Shareholder equity increased to RMB 257,885 million, a rise of 3.3% compared to the end of 2023[4] - The total equity increased by RMB 8,567 million, from RMB 267,704 million to RMB 276,271 million, indicating a growth of about 3.2%[20] - The total equity of the company as of March 31, 2024, was RMB 140,988 million, up from RMB 140,279 million at the end of 2023[24] Insurance Revenue and Segments - Insurance service revenue for Q1 2024 was RMB 66,968 million, with a year-on-year growth of 2.4%[9] - The life insurance segment reported a revenue of RMB 20,859 million, down 5.1% year-on-year, while the property insurance segment saw a revenue of RMB 45,556 million, up 5.9%[9] - In Q1 2024, Taibao Life achieved a total premium income of RMB 105.95 billion, with new business value reaching RMB 5.19 billion, a year-on-year increase of 30.7%[11] - The agent channel generated a premium income of RMB 84.86 billion, with new business premium of RMB 16.12 billion, reflecting a year-on-year growth of 31.3%[12] - The bancassurance channel reported a premium income of RMB 12.38 billion, with new business premium declining by 21.8% to RMB 8.72 billion due to policy impacts[12] - Taibao Property Insurance recorded a premium income of RMB 62.49 billion, representing an 8.6% year-on-year growth, with motor vehicle insurance premiums at RMB 26.48 billion, up 2.2%[14] Investment Performance - The total investment assets of the group reached RMB 2,344.79 billion, an increase of 4.2% compared to the end of the previous year[15] - The net investment yield for Q1 2024 was 0.8%, remaining stable year-on-year, while the total investment yield was 1.3%, down by 0.1 percentage points[16] - The financial investments in trading assets amounted to RMB 611,910 million, up from RMB 581,602 million, which is an increase of approximately 5.2%[19] - The company reported a significant increase in repurchase financial assets, which rose to RMB 14,363 million from RMB 2,808 million, representing a growth of approximately 412.5%[19] Cash Flow and Liquidity - The company reported a total cash inflow from operating activities of RMB 138,027 million, slightly higher than RMB 137,315 million in Q1 2023[22] - Cash flow from investing activities showed a net inflow of RMB 617 million, a significant improvement from a net outflow of RMB 12,506 million in the previous year[22] - The net cash increase for the period was RMB 22,792 million, compared to RMB 7,151 million in Q1 2023, indicating a strong liquidity position[22] - The company experienced a foreign exchange impact of RMB 9 million on cash and cash equivalents, contrasting with a loss of RMB 129 million in Q1 2023[22] Comprehensive Income and Other Metrics - The total comprehensive income for Q1 2024 was RMB 8,564 million, down from RMB 18,478 million in the same period last year, primarily due to changes in fair value of financial instruments[21] - Other comprehensive income after tax for Q1 2024 was RMB 325 million, significantly higher than RMB 28 million in Q1 2023[26] - The company recorded a cash inflow from investment activities of RMB 345 million in Q1 2024, down from RMB 6,047 million in Q1 2023[27] Strategic Initiatives - The company is focusing on high-quality development and enhancing customer service experience as part of its strategic transformation initiatives[10] - The group is actively pursuing innovation in financial services, including green finance and inclusive finance, to meet evolving market demands[13] - The underwriting comprehensive cost ratio for Taibao Property Insurance was 98.0%, a decrease of 0.4 percentage points year-on-year, indicating improved cost management[13]

2023 年度報告前導 時代為金融業賦予了新的使命。人民對美好生活的嚮 往和經濟社會的發展進步，使得保險企業參與社會 治理的場景不斷豐富與延展。中國太保發揮保險業 風險保障、資金運用的專業優勢，用“責任、智慧、 溫度”的太保服務，為經濟社會發展提供高質量保障， 全力書寫科技金融、綠色金融、普惠金融、養老金融、 數字金融五篇大文章。 服務國之大者，守護美好生活，2023年，中國太保 用行動踐行“責任”： 我們全場景全週期護“杭”亞運，不斷提升服務國家 重大戰略能級；我們擴大養老服務供給，做大做強養 老金融；我們聚焦城市治理等重點領域，做深做實普 惠金融；我們積極參與健康中國建設，關注青少年健 康成長；我們貫徹綠色發展理念，從負債端到資產端 全方位參與綠色金融體系建設…… ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 中國太平洋保險（集團）股份有限公司 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. (於中華人民共和國註冊成立的股份有限公司) (股份代號：02601) 截至二零二三年十二月三十一日止年度 已審核之全年業績公告 董事長致辭 尊敬的中國太保股東朋友們： 2023 年，國際政治經濟形勢複雜嚴峻，全球經濟增長動能不足，國內經濟發展雖然 短期面臨有效需求不足、社會預期偏弱等問題，但中國經濟發展潛力大、韌性強、活力 足，長期向好的趨勢沒有改變。國家金融監管體制機制改革全面深化落地，全覆蓋、嚴 監管態勢正在進一步加強。保險行業變革不斷深化，發展機遇與挑戰並存，潛力巨大。 面對內外部環境各種不確定性，我們始終牢牢把握高質量發展理念不動搖，堅定不移深 ...

Core Viewpoint - China Pacific Insurance (Group) Co., Ltd. announced the resignation of its president, Fu Fan, due to work adjustments, effective from January 26, 2024 [1] Group 1: Leadership Changes - Fu Fan will continue to serve as an executive director and a member of the board's risk management and related party transaction control committee, as well as the technology innovation and consumer rights protection committee after resigning as president [1] - The board approved Fu Fan's appointment as chairman during the board meeting on December 11, 2023, with the effective date contingent upon regulatory approval [1] - The China Financial Supervisory Administration has approved Fu Fan's qualifications to serve as chairman, with his term starting on January 26, 2024, until the current board's term ends [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致之任何損失承擔任何責任。 1 中國太平洋保險（集團）股份有限公司 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. （於中華人民共和國註冊成立的股份有限公司） （股份代號：02601） 2023 年第三季度報告 本公告由中國太平洋保險（集團）股份有限公司（「本公司」）根據《證券及期貨條例》 第 XIVA 部及香港聯合交易所有限公司證券上市規則第 13.09 條及第 13.10B 條而作出。 本公司 2023 年第三季度報告所載財務資料根據中國企業會計準則編制，且未經審計。 §1 重要提示 1.1 本公司董事會、監事會及董事、監事、高級管理人員保證季度報告內容的真實、準確、 完整，不存在虛假記載、誤導性陳述或者重大遺漏，並承擔個別和連帶的法律責任。 1.2 本公司第九屆董事會第二十八次會議於 2023 年 10 月 27 日審議通過了本公司《2023 年第三季度報告》。應出席會議的董事 14 人， ...

目錄 CONTENTS 重要提示 P02 公司簡介及釋義 P03 經營概覽 P05 致股東的一封信 P09 14 經營業績 會計數據和業務數據摘要 P15 經營業績回顧與分析 P17 內含價值 P39 46 公司治理 董事會報告和重要事項 P47 股份變動及股東情況 P57 董事、監事和高級管理人員情況 P61 企業管治情況 P63 環境和社會責任 P67 70 其他信息 備查文件目錄 P71 74 ...