[About Us](index=4&type=section&id=About%20Us) This section provides an overview of the company's strategic direction, key performance highlights, and a summary of its operational and financial achievements over the past five years [Five-Year Data Summary](index=4&type=section&id=Five-Year%20Data%20Summary) The report provides key operational and financial indicators for the company over the past five years, showcasing development trends across customer operations, group consolidated performance, life and health insurance, property and casualty insurance, banking, asset management, and technology businesses, with continuous growth in individual customer numbers, total assets, and operating profit attributable to the parent company 2019-2020 Key Performance Indicators | Indicator | 2020 | 2019 | Trend | | :--- | :--- | :--- | :--- | | **Customer Operations** | | | | | Individual Customers (10,000s of people) | 21,843 | 20,048 | Growth | | Contracts per Customer (units) | 2.76 | 2.64 | Growth | | **Group Consolidated** | | | | | Operating Profit Attributable to Parent Company Shareholders (Million RMB) | 139,470 | 132,955 | Growth | | Net Profit Attributable to Parent Company Shareholders (Million RMB) | 143,099 | 149,407 | Decline | | Dividend per Share (RMB) | 2.20 | 2.05 | Growth | | Total Assets (Million RMB) | 9,527,870 | 8,222,929 | Growth | | **Life and Health Insurance** | | | | | New Business Value (Million RMB) | 49,575 | 75,945 | Decline | | **Property and Casualty Insurance** | | | | | Combined Ratio (%) | 99.1 | 96.4 | Increase | | **Banking Business** | | | | | Non-performing Loan Ratio (%) | 1.18 | 1.65 | Decline | [Company Overview](index=5&type=section&id=Company%20Overview) The company aims to be a leading international technology-driven personal financial and lifestyle service group, focusing on 'big financial assets' and 'big healthcare' through an integrated financial model that leverages technology to serve 218 million individual customers and 598 million internet users - The company's strategic core is "**technology empowering finance, technology empowering ecosystem, and ecosystem empowering finance**," aiming to enhance financial service efficiency, customer acquisition, and risk control through deepened data-driven operations[12](index=12&type=chunk) [Performance Overview](index=6&type=section&id=Performance%20Overview) In 2020, the company achieved steady performance growth despite the impact of the pandemic, with operating profit attributable to the parent company increasing by 4.9% year-on-year and cash dividends rising by 7.3%, alongside growth in individual customer numbers, group integrated financial business, and a significant increase in technology patent applications 2020 Group Key Operating Results | Indicator | 2020 | 2019 | YoY Growth | | :--- | :--- | :--- | :--- | | Total Revenue (Million RMB) | 1,321,418 | 1,273,091 | 3.8% | | Operating Profit Attributable to Parent Company Shareholders (Million RMB) | 139,470 | 132,955 | 4.9% | | Basic Operating Earnings per Share (RMB) | 7.89 | 7.48 | 5.5% | | Dividend per Share (RMB) | 2.20 | 2.05 | 7.3% | | Life and Health Insurance New Business Value (Million RMB) | 49,575 | 75,945 | -34.7% | - Individual customer numbers exceeded **218 million**, a **9.0% increase** from the beginning of the year; **37.02 million new customers** were added during the year, with **36.0%** coming from the group's ecosystem internet users[16](index=16&type=chunk) - Technological capabilities continued to deepen, with cumulative technology patent applications reaching **31,412** by the end of 2020, an increase of **10,029** from the beginning of the year, ranking **first globally** in financial technology and digital healthcare patent applications[17](index=17&type=chunk) [Chairman's Statement](index=8&type=section&id=Chairman%27s%20Statement) Chairman Ma Mingzhe's statement reflects on the extraordinary year of 2020, highlighting the company's stable performance growth and increased shareholder returns through technology leadership and digital transformation amidst pandemic challenges, while emphasizing a future strategic focus on healthcare as a core growth engine 2020 Performance Review | Indicator | Value | | :--- | :--- | | Operating Profit Attributable to Parent Company Shareholders | **RMB 139.47 billion** (YoY growth **4.9%**) | | Operating ROE | **19.5%** | | Full-year Dividend | **RMB 2.20 per share** (YoY growth **7.3%**) | - Technological strength continued to increase, with cumulative technology patent applications reaching **31,412** by the end of 2020, an increase of **10,029** from the beginning of the year, ranking **first globally** in financial technology and digital healthcare patent applications[22](index=22&type=chunk) - Clear future strategic direction: finance is Ping An's present, healthcare is Ping An's future, with acceleration in building a closed-loop healthcare ecosystem to support the "Healthy China" initiative[29](index=29&type=chunk) [Discussion and Analysis of Operations](index=8&type=section&id=Discussion%20and%20Analysis%20of%20Operations) This section provides a detailed analysis of the company's customer operations, technological advancements, and the performance of its major business segments, including life and health insurance, property and casualty insurance, banking, asset management, and technology [Customer Operations Analysis](index=12&type=section&id=Customer%20Operations%20Analysis) The company adheres to a customer-centric approach, deeply cultivating individual customers and nurturing group clients, with individual business operating profit reaching RMB 122.977 billion (88.2% of group operating profit) and group integrated financial financing scale increasing by 69.7% year-on-year, providing crucial support for the group's individual business and insurance fund allocation [Individual Customer Operations](index=13&type=section&id=Individual%20Customer%20Operations) Despite the pandemic, individual business operating profit slightly increased by 0.1% year-on-year to RMB 122.977 billion in 2020, with individual customer numbers growing by 9.0% to 218 million and internet users by 16.0% to 598 million, while customer cross-penetration continued to improve Individual Customers and Internet Users Growth (as of year-end) | Indicator | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Individual Customers (10,000s of people) | 21,843 | 20,048 | 9.0% | | Internet Users (10,000s of people) | 59,804 | 51,550 | 16.0% | | Proportion of New Customers from Internet Users | 36.0% | 40.7% | -4.7pp | - Customer cross-penetration deepened, with contracts per customer increasing from **2.64** at the beginning of the year to **2.76**, and the proportion of customers holding contracts with multiple subsidiaries rising from **36.8%** to **38.0%**[44](index=44&type=chunk)[45](index=45&type=chunk) [Group Customer Operations](index=16&type=section&id=Group%20Customer%20Operations) Group business focuses on strategic and small and micro clients, adopting a "1+N" service model, achieving significant growth in 2020 with integrated financial premium scale increasing by 34.4% and financing scale by 69.7% year-on-year, while providing RMB 519.022 billion in assets for insurance fund allocation Group Integrated Financial Performance (Million RMB) | Indicator | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Integrated Financial Premium Scale | 17,001 | 12,649 | 34.4% | | Of which: Corporate Channel Premium Scale | 4,938 | 2,672 | 84.8% | | Integrated Financial Financing Scale | 503,495 | 296,742 | 69.7% | [Leading Business Transformation with Technology](index=18&type=section&id=Leading%20Business%20Transformation%20with%20Technology) The company continues to deepen its "finance + technology" and "finance + ecosystem" strategies, significantly enhancing its technological strength with cumulative patent applications reaching 31,412 by the end of 2020, while technology fully empowers core financial businesses and four major ecosystems generate substantial synergy - By the end of 2020, the company's cumulative technology patent applications reached **31,412**, an increase of **10,029** from the beginning of the year, with patent applications in financial technology, digital healthcare, artificial intelligence, and blockchain all ranking among the **top globally**[54](index=54&type=chunk)[55](index=55&type=chunk) - AI-driven product sales reached **RMB 410.5 billion**, a **100% year-on-year increase**, and AI customer service volume reached **1.93 billion times**, a **41% year-on-year increase**, covering **82%** of total customer service volume[57](index=57&type=chunk)[58](index=58&type=chunk) - The healthcare ecosystem demonstrated significant synergistic value, with nearly **61%** of financial customers also using healthcare ecosystem services, and their average contracts per customer (**3.2 units**) and AUM (**RMB 39,100**) were significantly higher than customers not using these services[61](index=61&type=chunk) [Analysis of Major Business Operations](index=20&type=section&id=Analysis%20of%20Major%20Business%20Operations) This section details the operating performance of the company's core business segments in 2020, showing overall operating profit growth despite pandemic challenges, with stable life and health insurance core profit, increased property and casualty insurance premiums, improved banking asset quality, and rapid growth in asset management and technology businesses [Performance Summary](index=20&type=section&id=Performance%20Summary) In 2020, the group's operating profit attributable to parent company shareholders increased by 4.9% year-on-year to RMB 139.47 billion, while net profit decreased by 4.2% to RMB 143.099 billion, with operating profit providing a more objective reflection of business performance and growth across most segments Group Consolidated Performance Overview (Million RMB) | Indicator | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Profit Attributable to Parent Company Shareholders | 139,470 | 132,955 | 4.9% | | Net Profit Attributable to Parent Company Shareholders | 143,099 | 149,407 | (4.2%) | | Basic Operating Earnings per Share (RMB) | 7.89 | 7.48 | 5.5% | Operating Profit Attributable to Parent Company Shareholders by Business Segment (Million RMB) | Business Segment | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Life and Health Insurance | 92,672 | 88,054 | 5.2% | | Property and Casualty Insurance | 16,083 | 20,850 | (22.9%) | | Banking Business | 16,766 | 16,342 | 2.6% | | Asset Management Business | 11,172 | 9,594 | 16.4% | | Technology Business | 6,654 | 3,487 | 90.8% | [Life and Health Insurance Business](index=27&type=section&id=Life%20and%20Health%20Insurance%20Business) In 2020, the life and health insurance business achieved an operating profit of RMB 93.666 billion, a 5.3% year-on-year increase, with an operating ROE of 35.0%, despite a 34.7% decline in new business value due to the pandemic, as the company implemented a comprehensive reform for long-term sustainable growth Life and Health Insurance Business Key Indicators (Million RMB) | Indicator | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | New Business Value | 49,575 | 75,945 | (34.7%) | | Embedded Value | 824,574 | 757,490 | 8.9% | | Operating Profit | 93,666 | 88,950 | 5.3% | - The agent channel was severely impacted by the pandemic, with new business value decreasing by **37.1%** year-on-year, the agent force declining by **12.3%** to **1.024 million**, and average monthly income per agent falling from **RMB 6,309** to **RMB 5,793**[83](index=83&type=chunk)[85](index=85&type=chunk) - Remaining margin balance, a stable source of future profit, reached **RMB 960.183 billion** by the end of 2020, a **4.5% increase** from the beginning of the year[95](index=95&type=chunk)[96](index=96&type=chunk) [Property and Casualty Insurance Business](index=36&type=section&id=Property%20and%20Casualty%20Insurance%20Business) Ping An P&C achieved gross written premiums of RMB 285.854 billion in 2020, a 5.5% year-on-year increase, despite a 2.7 percentage point rise in the combined ratio to 99.1% due to guarantee insurance claims and auto insurance reform, while maintaining superior business quality and expanding online operations with the "Ping An Good Car Owner" APP Property and Casualty Insurance Business Key Indicators | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums (Million RMB) | 285,854 | 270,930 | Growth **5.5%** | | Combined Ratio (%) | 99.1 | 96.4 | Increase **2.7 percentage points** | | Operating Profit (Million RMB) | 16,159 | 20,952 | Decline **22.9%** | | Operating ROE (%) | 16.4 | 24.6 | Decline **8.2 percentage points** | - Auto insurance gross written premiums increased by **0.9%** year-on-year, with a combined ratio of **98.2%**; guarantee insurance business quality faced short-term pressure, with a full-year combined ratio of **111.0%**, but improved from the first half[114](index=114&type=chunk)[116](index=116&type=chunk) - Technology application continued to deepen, with "**Ping An Good Car Owner**" APP registered users exceeding **126 million**, and monthly active users in December exceeding **30 million**[110](index=110&type=chunk)[117](index=117&type=chunk) [Insurance Fund Investment Portfolio](index=42&type=section&id=Insurance%20Fund%20Investment%20Portfolio) By the end of 2020, the company's insurance fund investment portfolio reached RMB 3.74 trillion, a 16.6% increase from the beginning of the year, achieving a net investment yield of 5.1% and a total investment yield of 6.2% through scientific asset allocation and risk management, exceeding the embedded value long-term investment return assumption Insurance Fund Investment Portfolio Size and Yield | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Total Investment Assets (Trillion RMB) | 3.74 | 3.21 | | Net Investment Yield (%) | 5.1 | 5.2 | | Total Investment Yield (%) | 6.2 | 6.9 | Asset Allocation Structure (as of end of 2020) | Asset Class | Proportion of Total (%) | | :--- | :--- | | Bond Investments | 50.2% | | Stocks | 8.4% | | Equity Funds | 1.8% | | Debt Scheme Investments | 4.3% | | Wealth Management Products | 7.8% | | Long-term Equity Investments | 4.2% | | Cash and Deposits | 8.4% | [Banking Business](index=48&type=section&id=Banking%20Business) Ping An Bank achieved operating revenue of RMB 153.542 billion in 2020, an 11.3% year-on-year increase, and net profit of RMB 28.928 billion, a 2.6% increase, while asset quality improved significantly with a non-performing loan ratio decrease to 1.18% and provision coverage ratio increase to 201.40%, driven by successful retail transformation Ping An Bank Key Performance Indicators | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Million RMB) | 153,542 | 137,958 | Growth **11.3%** | | Net Profit (Million RMB) | 28,928 | 28,195 | Growth **2.6%** | | Non-performing Loan Ratio (%) | 1.18 | 1.65 | Decline **0.47 percentage points** | | Provision Coverage Ratio (%) | 201.40 | 183.12 | Increase **18.28 percentage points** | | Net Interest Margin (%) | 2.53 | 2.62 | Decline **0.09 percentage points** | - Retail business transformation and upgrading resulted in Assets Under Management (AUM) for retail customers reaching **RMB 2.624762 trillion**, a **32.4% increase** from the beginning of the year, and retail customer numbers exceeding **100 million**[150](index=150&type=chunk)[161](index=161&type=chunk) - Corporate business asset and liability structure continued to optimize, with corporate loan balance increasing by **9.9%** from the beginning of the year, and corporate deposit balance increasing by **7.3%**, of which demand deposits grew by **16.6%**[167](index=167&type=chunk) [Asset Management Business](index=58&type=section&id=Asset%20Management%20Business) In 2020, the asset management business achieved a net profit of RMB 12.292 billion, an 18.0% year-on-year increase, driven by a 30.6% growth in securities business net profit and 23.3% growth in other asset management businesses, while trust business actively transformed despite a slight decline Asset Management Business Segment Net Profit (Million RMB) | Business Segment | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Trust Business | 2,479 | 2,598 | (4.6%) | | Securities Business | 3,102 | 2,376 | 30.6% | | Other Asset Management Businesses | 6,711 | 5,441 | 23.3% | | **Total** | **12,292** | **10,415** | **18.0%** | - Ping An Trust actively transformed in line with regulatory guidance, focusing on four core businesses: "**special asset investment, infrastructure investment, service trusts, and private equity investment**"[184](index=184&type=chunk) - Ping An Asset Management's scale reached **RMB 3.63 trillion**, a **11.0% increase** from the beginning of the year; third-party asset management scale reached **RMB 385.8 billion**, a **32.2% increase** from the beginning of the year[198](index=198&type=chunk) [Technology Business](index=64&type=section&id=Technology%20Business) In 2020, technology business total revenue reached RMB 90.375 billion, a 10.1% year-on-year increase, with Lufax Holding successfully listing on the NYSE, OneConnect revenue growing by 42.3%, Ping An Good Doctor's online medical business revenue growing strongly by 82.4%, and Autohome's online marketing business growing against the trend by 34.4%, demonstrating steady development and continued synergy with core financial businesses - Lufax Holding was listed on the NYSE on October 30, 2020; by year-end, managed loan balance reached **RMB 545.145 billion**, a **17.9% increase**, and client asset scale reached **RMB 426.571 billion**, a **23.0% increase**[201](index=201&type=chunk)[207](index=207&type=chunk) - OneConnect's operating revenue increased by **42.3%** year-on-year to **RMB 3.312 billion**, with the number of premium customers growing to **594**, and gross profit margin increasing by **4.6 percentage points** year-on-year[209](index=209&type=chunk)[212](index=212&type=chunk) - Ping An Good Doctor's operating revenue increased by **35.5%** year-on-year to **RMB 6.866 billion**, with online medical business revenue growing strongly by **82.4%**, and cumulative registered users reaching **373 million**[215](index=215&type=chunk)[217](index=217&type=chunk) - Autohome's operating revenue increased by **2.8%** year-on-year, and net profit increased by **6.2%** year-on-year, with online marketing and other business revenue growing against the trend by **34.4%**[219](index=219&type=chunk) [Embedded Value Analysis](index=72&type=section&id=Embedded%20Value%20Analysis) By the end of 2020, the embedded value (EV) of the life and health insurance business was RMB 824.574 billion, an 8.9% increase from the beginning of the year, despite a 34.7% year-on-year decrease in one-year new business value (NBV) to RMB 49.575 billion, resulting in an operating return on embedded value of 14.5% Embedded Value and New Business Value Key Indicators (Million RMB) | Indicator | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Life and Health Insurance Business Embedded Value | 824,574 | 757,490 | 8.9% | | Life and Health Insurance Business One-Year New Business Value | 49,575 | 75,945 | (34.7%) | | Operating Return on Embedded Value (%) | 14.5 | 25.0 | Decline **10.5 percentage points** | - The main drivers of embedded value growth were the expected return on opening embedded value (**RMB 66.121 billion**) and new business value creation (**RMB 57.571 billion**)[243](index=243&type=chunk) [Liquidity and Capital Resources](index=83&type=section&id=Liquidity%20and%20Capital%20Resources) The group maintained healthy liquidity and sufficient capital, with a comprehensive solvency ratio of 236.4% by the end of 2020, an increase of 6.6 percentage points, and continued to increase cash dividends, with full-year dividends growing by 7.3% year-on-year and a five-year compound annual growth rate of 32.8% Group Solvency Ratios | Indicator (%) | End of 2020 | End of 2019 | Change (percentage points) | | :--- | :--- | :--- | :--- | | Core Solvency Ratio | 231.8 | 225.0 | +6.8 | | Comprehensive Solvency Ratio | 236.4 | 229.8 | +6.6 | - Proposed final dividend for 2020 of **RMB 1.40 per share** in cash, with total full-year dividends of **RMB 2.20 per share**, a **7.3% year-on-year increase**[259](index=259&type=chunk)[265](index=265&type=chunk) Cash Flow Overview (Million RMB) | Activity Type | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 312,075 | 249,445 | | Net Cash Flow from Investing Activities | (447,138) | (380,157) | | Net Cash Flow from Financing Activities | 260,641 | 125,077 | [Risk Management](index=89&type=section&id=Risk%20Management) The company has established a comprehensive risk management system, with the Board of Directors bearing ultimate responsibility, covering general risks such as insurance, market, credit, and operational risks, as well as group-specific risks like contagion and concentration, utilizing a robust organizational structure, risk appetite framework, and quantitative tools to balance risk and return - The company's risk management organizational system holds the **Board of Directors ultimately responsible**, with an Audit and Risk Management Committee, and a Risk Management Executive Committee at the management level, covering all professional companies and business lines[278](index=278&type=chunk)[280](index=280&type=chunk) - Key risk categories include: **insurance risk, market risk** (interest rate, equity, foreign exchange), **credit risk, operational risk, strategic risk, reputational risk, and liquidity risk**[287](index=287&type=chunk)[288](index=288&type=chunk) - The group's solvency management adheres to the C-ROSS system; as of the end of 2020, the group's comprehensive solvency ratio was **236.4%**, and the core solvency ratio was **231.8%**, both significantly exceeding regulatory requirements[316](index=316&type=chunk)[318](index=318&type=chunk) [Sustainable Development](index=104&type=section&id=Sustainable%20Development) The company fully integrates ESG principles into its corporate management and business practices, establishing a scientific sustainable development management system, achieving significant results in poverty alleviation, epidemic response, responsible investment, and green operations in 2020, with its MSCI ESG rating improving to A and responsible investment exceeding RMB 1.03 trillion by year-end - The "**Three Rural Development Support Program**" cumulatively provided over **RMB 29.834 billion** in industrial poverty alleviation funds, benefiting **730,000 impoverished individuals**[322](index=322&type=chunk)[333](index=333&type=chunk) - By the end of 2020, responsible investment exceeded **RMB 1.03 trillion**, inclusive loan balance reached **RMB 871.461 billion**, and green credit loan balance reached **RMB 35.897 billion**[322](index=322&type=chunk)[348](index=348&type=chunk) - The company, in collaboration with China Economic Information Service, launched the "**Xinhua CN-ESG Evaluation System**" to promote the establishment of Chinese-specific ESG evaluation standards[322](index=322&type=chunk)[343](index=343&type=chunk) [Future Outlook](index=117&type=section&id=Future%20Outlook) Looking ahead, despite the complex global economic situation, the pandemic has also created new opportunities, such as increased public health awareness and the penetration of online consumption habits, prompting the company to adhere to its "technology empowering finance, technology empowering ecosystem, and ecosystem empowering finance" strategy, deepen life insurance reform, advance banking transformation, strengthen asset management capabilities, and vigorously develop the healthcare ecosystem to achieve steady growth across all businesses - In 2021, the company will continue to promote **intelligent and data-driven operational transformation**, maintaining steady growth across all businesses[365](index=365&type=chunk) - Key business segment focus includes: life insurance business to deepen reform; banking business to advance strategic transformation; asset management business to enhance active management capabilities; and technology business to increase investment, focusing on building a healthcare ecosystem[365](index=365&type=chunk)[366](index=366&type=chunk) [Corporate Governance](index=116&type=section&id=Corporate%20Governance) This section details the company's corporate governance structure, including the roles of the Board of Directors, Supervisory Committee, and senior management, along with information on share capital, shareholders, and important corporate matters [Corporate Governance Report](index=116&type=section&id=Corporate%20Governance%20Report) The company has established an international standard corporate governance structure, strictly complying with relevant laws and regulations, with a sound governance framework where the Shareholders' Meeting, Board of Directors, Supervisory Committee, and Executive Committee each perform their duties, supported by six specialized Board committees, and maintaining complete independence with a dispersed equity structure - The Board of Directors has six specialized committees: **Strategy and Investment Decision Committee, Audit and Risk Management Committee, Nomination Committee, Remuneration Committee, Connected Transactions Control Committee, and Consumer Rights Protection Committee**[384](index=384&type=chunk) - Effective July 1, 2020, Chairman Ma Mingzhe no longer concurrently serves as Chief Executive Officer, complying with the "**Corporate Governance Code**" requirements regarding separation of roles[398](index=398&type=chunk)[399](index=399&type=chunk) [Changes in Share Capital and Shareholder Information](index=135&type=section&id=Changes%20in%20Share%20Capital%20and%20Shareholder%20Information) During the reporting period, the company's total share capital and structure remained unchanged at 18,280,241,410 shares, with 700,502 shareholders by the end of 2020, and HKSCC Nominees Limited as the largest nominal holder among the top ten shareholders Top Three Shareholders' Shareholding (as of end of 2020) | Shareholder Name | Shareholding Ratio (%) | Share Type | | :--- | :--- | :--- | | HKSCC Nominees Limited | 35.51 | H-shares | | Shenzhen Investment Holdings Co., Ltd. | 5.27 | A-shares | | HKSCC (Shanghai Connect) | 4.37 | A-shares | [Directors, Supervisors, Senior Management, and Employees](index=138&type=section&id=Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section provides detailed resumes, work experiences, and concurrent positions of the company's directors, supervisors, senior management, and key personnel, along with disclosures on their remuneration, shareholding changes, and the company's total employee count, professional composition, educational structure, and training programs - As of the end of 2020, the company had **362,035 employees**, with insurance business personnel accounting for **55.4%**, banking business for **10.5%**, and technology business for **30.8%**[461](index=461&type=chunk)[462](index=462&type=chunk) [Board of Directors' Report and Important Matters](index=152&type=section&id=Board%20of%20Directors%27%20Report%20and%20Important%20Matters) The Board of Directors' report reviews major business activities in 2020, reiterates the cash dividend policy and its implementation, and details the completion of the A-share repurchase plan and the ongoing core personnel shareholding and long-term service plans, alongside other significant contracts, related party transactions, and tax policies - The company repurchased **12,412,196 A-shares** in March 2020, with a total payment of approximately **RMB 994 million**, completing the nearly **RMB 6 billion** repurchase plan by April 28, 2020[476](index=476&type=chunk) - Core personnel shareholding plan and long-term service plan continued to be implemented, holding **0.110%** and **0.569%** of the company's total share capital, respectively, as of the end of the reporting period[492](index=492&type=chunk)[493](index=493&type=chunk) [Supervisory Committee Report](index=170&type=section&id=Supervisory%20Committee%20Report) The Supervisory Committee's report summarizes its oversight work for 2020, concluding that the company operated legally, decision-making procedures were compliant, financial reports were true and accurate, internal control systems were effective, related party transactions were fair and reasonable, and directors and senior management performed their duties diligently, with no actions found to harm shareholders' interests - The Supervisory Committee issued independent opinions on the company's legal operations, truthfulness of financial reports, related party transactions, internal control systems, implementation of shareholders' meeting resolutions, and performance of directors' duties, all without objection[529](index=529&type=chunk)[530](index=530&type=chunk)[532](index=532&type=chunk)[535](index=535&type=chunk) [Financial Statements](index=172&type=section&id=Financial%20Statements) This section presents the company's audited consolidated financial statements for the year, including the independent auditor's report, income statement, balance sheet, cash flow statement, and comprehensive notes [Independent Auditor's Report](index=172&type=section&id=Independent%20Auditor%27s%20Report) PricewaterhouseCoopers (PwC) issued an unqualified audit opinion on the company's 2020 consolidated financial statements, affirming that they truly and fairly reflect the group's financial position and operating results, while highlighting key audit matters such as financial asset classification, impairment assessment, and valuation of insurance liabilities - The auditor's opinion was **unqualified**, stating that the financial statements truly and fairly reflect the group's financial position in accordance with International Financial Reporting Standards[540](index=540&type=chunk) - Key audit matters include: 1) Classification of financial assets measured at amortized cost; 2) Impairment assessment of loans and advances and financial assets measured at amortized cost; 3) Valuation of long-term life insurance contract liabilities and outstanding claims reserves[542](index=542&type=chunk) [Consolidated Financial Statements and Notes](index=179&type=section&id=Consolidated%20Financial%20Statements%20and%20Notes) This section includes the group's 2020 consolidated income statement, comprehensive income statement, financial position statement, changes in equity statement, cash flow statement, and detailed notes, showing total assets grew to RMB 9.53 trillion and equity attributable to parent company shareholders increased to RMB 762.56 billion Consolidated Income Statement Summary (Million RMB) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Total Revenue | 1,321,418 | 1,273,091 | | Profit Before Tax | 187,764 | 184,739 | | Net Profit | 159,359 | 164,365 | | Net Profit Attributable to Parent Company Shareholders | 143,099 | 149,407 | Consolidated Statement of Financial Position Summary (Million RMB) | Item | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 9,527,870 | 8,222,929 | | Total Liabilities | 8,539,965 | 7,370,559 | | Equity Attributable to Parent Company Shareholders | 762,560 | 673,161 | | Total Shareholders' Equity | 987,905 | 852,370 | [Other Information](index=327&type=section&id=Other%20Information) This section includes a compilation of the company's significant milestones, awards and honors received, a glossary of terms, and essential corporate contact information [Ping An Milestones, Honors and Awards, Definitions, Company Information](index=327&type=section&id=Ping%20An%20Milestones%2C%20Honors%20and%20Awards%2C%20Definitions%2C%20Company%20Information) This section provides the company's development milestones, major awards received in 2020, such as ranking 21st in Fortune Global 500, explanations of professional terms used in the report, and basic registration and contact information for the company - In 2020, the company ranked **21st in the Fortune Global 500**, second among global financial enterprises; and **7th in the Forbes Global 2000** list[995](index=995&type=chunk) - Ranked **38th in the BrandZ™ Top 100 Most Valuable Global Brands** list, and retained its position as the **world's most valuable insurance brand**[995](index=995&type=chunk)

平安 PINGAN 2020 Annual Results February 2021 Cautionary Statements Regarding Forward-Looking Statements To the extent any statements made in this Report contain information that is not historical, these statements are essentially forward- looking. These forward-looking statements include but are not limited to projections, targets, estimates and business plans that the Company expects or anticipates may or may not occur in the future. Words such as "potential", "estimates", "expects", "anticipates", "objecti ...

Financial Performance - The operating profit attributable to the parent company's shareholders for the first half of 2020 reached CNY 74.31 billion, a year-on-year increase of 1.2%, with an annualized operating ROE of 21.6%[7]. - The bank's operating income for the first half of 2020 was CNY 78.33 billion, reflecting a year-on-year growth of 15.5%[7]. - Total revenue for the first half of 2020 was RMB 683,280 million, slightly down from RMB 690,246 million in the same period of 2019[8]. - The net profit attributable to the parent company's shareholders for the same period was RMB 68.68 billion, a year-on-year decrease of 29.7%[22]. - The company’s basic earnings per share for the first half of 2020 was RMB 4.20, an increase of 1.9% year-on-year[58]. - The total net profit for the group was RMB 75.968 billion, with a basic earnings per share of RMB 4.20, reflecting a year-on-year growth of 29.7%[60]. - The company reported a total of 20.962 million customers across various insurance and financial products, reflecting a 4.6% increase from the end of 2019[30]. Insurance Business Performance - The life and health insurance business generated an operating profit of CNY 51.54 billion in the first half of 2020, reflecting a growth of 6.4%[7]. - The operating profit attributable to the parent company's shareholders for the life and health insurance business was RMB 51.127 billion, representing a year-on-year increase of 6.6%[60]. - The new business value of life and health insurance for the first half of 2020 was RMB 41,052 million, compared to RMB 4.12 million in the same period of 2019[9]. - The new business value for the life and health insurance segment was RMB 31.031 billion, down 24.4% year-on-year, with a new business value rate decrease of 8.0 percentage points[69]. - Total premium income for life and health insurance decreased to RMB 301,127 million, down 4.6% from RMB 315,774 million[88]. Customer Growth and Engagement - As of June 30, 2020, the number of individual customers reached 210 million, an increase of 4.6% from the beginning of the year, with 18.09 million new customers added in the first half, 35.4% of whom came from the group's five major ecosystems[7]. - The registered user count for the "Ping An Good Driver" app exceeded 109 million, marking a growth of 17.8% since the beginning of the year[7]. - The number of internet users reached 560 million, an increase of 8.7% from the beginning of the year, with 510 million app users, up 8.5%[32]. - The number of individual customers who are also internet users reached 185 million, a growth of 6.2% from the beginning of the year[32]. Technology and Innovation - The company has filed a total of 26,008 technology patents as of June 30, 2020, an increase of 4,625 patents since the beginning of the year[8]. - The company continues to enhance its technology investments to support its "Finance + Ecosystem" strategy, aiming to optimize customer acquisition channels and service efficiency[5]. - The company’s technology patent applications totaled 26,008 by June 30, 2020, an increase of 4,625 from the beginning of the year, ranking first globally in fintech patent applications for two consecutive years[15]. - The company’s AI technology enabled an average daily productivity of 131.3 times per person for human agents, up 15% from 114.5 times per person in the same period last year[48]. COVID-19 Response - The company provided a total of over RMB 1.75 billion in cash and material donations in response to the COVID-19 pandemic[8]. - The company implemented online transformation measures to mitigate the impact of the pandemic on operations[60]. - During the pandemic, the company provided free employee insurance coverage for approximately 500,000 small and micro enterprises, with a total coverage amount of RMB 100 million per enterprise[103]. Investment and Asset Management - The company’s investment return rate for life and health insurance business was locked at 5% after excluding short-term investment fluctuations[60]. - The total investment income for the first half of 2020 was RMB 85,899 million, a decrease of 16.3% year-on-year[136]. - The company's bond investment scale reached RMB 116,432 million, accounting for 3.4% of total investment assets, down 0.6 percentage points from the beginning of 2020[138]. - The average investment assets increased to RMB 298,591 million, reflecting an 11.5% growth from RMB 267,877 million in the previous year[104]. Banking Performance - Ping An Bank achieved an operating income of CNY 78.33 billion in the first half of 2020, reflecting a year-on-year growth of 15.5%[145]. - Net profit for the first half of 2020 was RMB 13.678 billion, representing a year-on-year decline of 11.2%[149]. - The non-performing loan ratio for Ping An Bank remained stable at 1.65% as of June 30, 2020, with a significant increase in provision coverage ratios[145]. - The retail business revenue for Ping An Bank reached CNY 43.35 billion, growing by 12.3% year-on-year, with retail customer assets under management increasing by 17.1%[145]. Challenges and Strategic Focus - The company faced challenges due to the COVID-19 pandemic, including disruptions to offline business and increased credit risk, which impacted new business growth rates[60]. - The company is focusing on value-driven management and reducing short-term savings products with high continuation rates[78]. - The company is implementing differentiated risk management strategies to enhance customer quality and risk identification[165].

Strategic Transformation and Ecosystems - Ping An continues to push forward with its "Finance + Technology" and "Finance + Ecology" strategic transformation, focusing on five major ecosystems: financial services, healthcare, automotive services, real estate services, and smart cities[6]. - The company emphasizes high-quality asset management and stable investment strategies, aiming for deep transformation in financial services and achieving "four modernizations"[7]. - Ping An is committed to social responsibility initiatives, including the "Three Villages Poverty Alleviation Project" and other public welfare efforts[7]. - The company aims to leverage its financial strength and technological intelligence to serve customers, reward shareholders, and contribute to society and the nation[7]. - Ping An's future outlook includes a commitment to sustainable development and continuous innovation in its service offerings[6]. Financial Performance - The total revenue for 2019 reached RMB 1,273,091 million, representing a growth of 17.6% compared to 2018[14]. - The operating profit attributable to shareholders was RMB 132,955 million in 2019, an increase of 18.1% from RMB 112,573 million in 2018[14]. - The basic earnings per share rose to RMB 7.48 in 2019, reflecting an 18.5% increase from RMB 6.31 in 2018[14]. - The intrinsic value increased to RMB 1,200,533 million in 2019, a growth of 19.8% from RMB 1,002,456 million in 2018[14]. - The net profit attributable to shareholders was RMB 149,407 million in 2019, up from RMB 107,404 million in 2018[8]. Customer Growth and Engagement - The number of individual customers increased by 11.2% year-on-year, reaching 200 million, with 36.57 million new customers added, 40.7% of whom came from the group's five major ecological circles[15]. - The number of internet users reached 515.5 million in 2019, up from 443.59 million in 2018[8]. - The average number of contracts per customer rose to 2.64, reflecting a 3.9% increase compared to the beginning of the year[36]. - The number of APP users grew to 470 million, a 17.8% increase from the beginning of the year[32]. - The number of active users reached 282 million, indicating a strong engagement with the internet services offered[32]. Technology and Innovation - The company’s technology patent applications totaled 21,383, an increase of 9,112 from the beginning of the year, ranking among the top international financial institutions[19]. - The group aims to enhance its technological capabilities and expand application scenarios, focusing on financial technology and medical technology advancements[23]. - The company continues to focus on a "one-stop service" model to enhance user experience and service scenarios[32]. - The intelligent underwriting platform achieved a risk interception accuracy rate of 90.8%, with 96% of insurance applicants experiencing rapid underwriting without disturbance, reducing processing time from 3.8 days to 10 minutes[76]. - The company plans to continue leveraging technology to drive business transformation and improve customer experience[45]. Investment and Asset Management - The total investment income for 2019 was RMB 174.682 billion, compared to RMB 79.384 billion in 2018, indicating a substantial increase[85]. - The total investment return rate for the property insurance business was 6.6% in 2019, up by 2.2 percentage points year-on-year, with total investment income increasing by 63.2%[117]. - The investment asset total reached RMB 3,208,836 million in 2019, compared to RMB 2,794,620 million in 2018[124]. - The net investment income for 2019 was RMB 144,050 million, a 13.7% increase from RMB 126,707 million in 2018[128]. - The company actively adjusted its equity asset allocation to mitigate the impact of market volatility[122]. Corporate Governance and Accountability - Ping An's governance structure includes a comprehensive report on board members, supervisors, and senior management personnel, ensuring transparency and accountability[4]. - The company has implemented a share buyback program amounting to RMB 5 billion for the first time[56]. - The company recognized a one-time impact on income tax expenses due to a reduction in tax payable from a policy announcement in May 2019, which affected the 2018 tax settlement[61]. - The company’s effective tax rate decreased significantly due to new tax policies, impacting the income tax expense for 2019 positively[96]. - The solvency ratio for the group was 229.8% in 2019, compared to 216.4% in 2018[8]. Retail Banking and Financial Services - Ping An Bank achieved operating revenue of RMB 137.96 billion, a year-on-year increase of 18.2%, and net profit of RMB 28.20 billion, up 13.6% year-on-year[137]. - Retail business operating revenue rose to RMB 79.97 billion, a 29.2% increase, accounting for 58.0% of total revenue, while retail net profit increased by 13.8% to RMB 19.49 billion, representing 69.1% of total net profit[144]. - The non-performing loan ratio improved to 1.65%, down 0.10 percentage points from the beginning of the year, with a provision coverage ratio of 183.12%, up 27.88 percentage points[139]. - The bank's strategy focuses on becoming a leading intelligent retail bank in China, emphasizing technology, retail breakthroughs, and precision in corporate services[136]. - The transaction amount of Ping An Bank's internet payment and settlement services reached CNY 4.18 trillion, a year-on-year growth of 64.5%[151]. Insurance Business Performance - The total premium income for life and health insurance business reached RMB 611.637 billion in 2019, an increase from RMB 570.523 billion in 2018, representing a growth of 7.2%[85]. - Claims and policyholder benefits totaled RMB 445.775 billion in 2019, up from RMB 323.494 billion in 2018, marking a significant increase of 37.9%[89]. - The total premium income from property insurance business reached RMB 270.93 billion in 2019, a growth from RMB 247.44 billion in 2018[110]. - The operating profit from life and health insurance business was CNY 88.950 billion, reflecting a year-on-year growth of 24.7%[67]. - The original insurance premium income for property insurance was RMB 270.930 billion in 2019, representing a growth of 9.5% compared to the previous year[99].

Ping An Insurance (Group) Company of China, Ltd. (OTCPK:PNGAY) Q4 2019 Earnings Conference Call February 21, 2020 7:00 PM ET Company Participants Sheng Ruisheng - Joint Company Secretary Jason Yao - EVP & CFO Lu Min - Chairman & CEO, Autohome, Inc. Xie Yonglin - Co-CEO & President Jessica Tan - Co-CEO, EVP & COO Ma Mingzhe - Founder, Chairman & CEO Conference Call Participants Charles Zhou - Crédit Suisse Kailesh Mistry - HSBC Sheng Ruisheng Okay. We will get started. Good morning. Dear investors, welcome t ...