Financial Performance - Total premium for 2022 reached RMB 24,005.33 million, an increase of 16.1% compared to RMB 20,480.12 million in 2021[4] - Net profit attributable to shareholders was a loss of RMB 1,356.10 million, compared to a profit of RMB 1,164.59 million in 2021[4] - The comprehensive cost ratio improved to 98.5% in 2022 from 99.6% in 2021, with a claims ratio of 55.2% and an expense ratio of 43.3%[12] - The total assets of the company as of December 31, 2022, were RMB 54,557.39 million, up from RMB 51,772.33 million in 2021[4] - The solvency adequacy ratio was 299% as of December 31, 2022, reflecting the impact of new regulatory changes[4] - The company achieved a 49.2% increase in per capita premium from self-operated channels, reaching RMB 755 in 2022[5] - In 2022, the total premium achieved by the company was RMB 23.651 billion, representing a year-on-year growth of 16.1%[24] - The underwriting profit reached RMB 329 million, a year-on-year increase of 337.7%[24] - The company recorded a net loss of approximately RMB 1.63 billion for the year ended December 31, 2022, compared to a net profit of approximately RMB 757 million for the year ended December 31, 2021[83] User Engagement and Market Reach - The company issued 9.132 billion insurance policies in 2022, serving over 500 million insured users[12] - As of December 31, 2022, the company has served over 109 million insured users, with approximately 38 million new users added in the year[13] - The average monthly active users of the company's app reached 4.23 million, with a 49.2% year-on-year increase in per capita premium from self-operated channels[17] - The health ecosystem served over 109 million insured users by the end of 2022, with a focus on comprehensive health services[31] - The company provided corporate group insurance services to over 31,000 enterprises, covering more than 1.31 million employees, with total premiums of approximately RMB 475 million, a year-on-year growth of 68.3%[35] Technology and Innovation - Technology output revenue increased by 13.8% to RMB 592 million in 2022[5] - The company aims to leverage technology to enhance user experience and optimize underwriting efficiency in the insurance industry[12] - The company achieved an automation rate of 99% in underwriting processes and a 96% online claims processing rate[18] - The company aims to leverage its technology capabilities to expand into banking and securities sectors, enhancing its digital marketing and operational efficiency[18] - The company signed 112 new insurance industry clients for its technology output business in 2022, a year-on-year increase of 14.3%[46] Product Development and Segmentation - Total premium income from the health insurance segment grew by approximately 29.3% year-on-year, while critical illness insurance premiums surged by about 145.9%[13] - The e-commerce business segment generated total premiums of 5.261 billion RMB, reflecting a year-on-year growth of approximately 25.7%[14] - The annualized premium for pet insurance reached about 200 million RMB, doubling year-on-year, with a market share among the top in the domestic market[14] - Total premiums in the auto insurance segment increased by approximately 33.9% year-on-year, with a claims ratio improvement of 12.2 percentage points to 55.8%[16] - The total premiums for the digital life segment increased to RMB 8.87 billion, with a net premium growth from RMB 7.28 billion in 2021[29] Financial Investments and Returns - The total investment income for the company decreased from RMB 2.08 billion in 2021 to a total investment loss of RMB 377 million in 2022, influenced by market volatility and accounting standard changes[59] - The company's total investment return rate and net investment return rate were approximately -1.0% and 3.2% respectively in 2022, compared to 6.7% and 2.5% in 2021[60] - The company experienced a significant decline in investment income due to a downturn in the capital market and changes in accounting standards[83] Governance and Management - The company has a strong governance structure with independent directors to ensure compliance and strategic oversight[91] - The company emphasizes strict corporate governance and effective internal control measures[103] - The board of directors consists of independent non-executive directors, accounting for at least one-third of the board, ensuring diverse business experience and expertise[106] - The company has established a mechanism for assessing board independence, ensuring strong independent elements for better shareholder protection[106] - The company has made several board changes, including the appointment of Jiang Xing and Li Gaofeng as Executive Directors on November 28, 2022[101] Strategic Partnerships and Collaborations - The company has established connections with nearly 10,000 offline pet hospitals and service providers across major cities in China[36] - The company partnered with Sumitomo Life Insurance in Japan to launch an innovative heatstroke insurance product through the PayPay mobile payment platform[52] - A strategic collaboration was established with Carro, Southeast Asia's largest used car trading platform, to optimize online insurance distribution and claims processes using the company's insurance financial solutions[53] - The company has established a partnership with WeBank to expand its insurance product offerings and reach a broader customer base, enhancing its service to internet clients[174] Future Outlook and Growth Projections - The company provided a positive outlook for 2023, projecting a revenue growth of 20% driven by new product launches and market expansion initiatives[97] - The company aims to launch three new insurance products in 2023, which are anticipated to contribute an additional 2 billion RMB in revenue[97] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[97] - The company is committed to sustainability, with plans to allocate 1 billion RMB towards eco-friendly initiatives and corporate social responsibility programs[97]

Financial Data and Key Metrics Changes - The company achieved total P&C GWP of RMB 23.65 billion, an increase of 16.1% year-on-year [5] - The combined ratio improved by 1.1 percentage points to 98.5% in 2022 [7] - Underwriting profit reached RMB 330 million, up 337% year-on-year [7] - Total assets increased to RMB 64.6 billion, a rise of 5.4% from the end of 2021 [64] - Net attributable loss was RMB 1.36 billion in 2022, impacted by market fluctuations and new accounting standards [63] Business Line Data and Key Metrics Changes - Health ecosystem premium income grew by 16.8% to RMB 8.98 billion [52] - Digital lifestyle ecosystem premium increased by 21.7% to RMB 8.88 billion [54] - Consumer finance ecosystem GWP reached RMB 45.3 billion, a minor growth of 1.9% year-on-year [54] - Auto insurance GWP grew by 33.9%, higher than the industry average [54] Market Data and Key Metrics Changes - ZA Bank surpassed 650,000 retail customers, achieving a net income of RMB 270 million, up 106% year-on-year [9][47] - Technology export revenue reached RMB 590 million, up 13.8% year-on-year [8] - The health ecosystem serviced a total of 109 million insureds, with nearly 38 million new insureds in 2022 [11] Company Strategy and Development Direction - The company focuses on technology-driven cost reduction and enhancing service capabilities [7][56] - Aiming to empower the finance business with technology and provide comprehensive insurance services [4] - Plans to innovate product offerings, particularly in health insurance and pet insurance, to cater to diverse consumer needs [90][102] Management's Comments on Operating Environment and Future Outlook - Management remains positive about the growth of the health insurance market, citing high out-of-pocket medical expenses in China [69] - The company plans to enhance its user-centric services and innovate product types to meet evolving consumer demands [70] - Despite challenges in the macroeconomic environment, the company aims to maintain robust growth and profitability in its core segments [85][87] Other Important Information - The company has a strong focus on digital transformation and enhancing customer engagement through technology [29][100] - The pet insurance segment saw nearly 100% growth, indicating a strong market opportunity [19][90] Q&A Session Summary Question: Health insurance growth and future expectations - Management attributes health insurance growth to consumer needs and plans to innovate product offerings to maintain momentum [68][70] Question: ZA Bank's development plans - ZA Bank aims to enhance user experience and expand product offerings, including corporate banking services [73][75] Question: Underwriting profit and net profit fluctuations - Management acknowledges profit volatility due to accounting standards and market conditions, focusing on improving asset portfolio structure [79][81] Question: Consumer finance industry challenges - The company emphasizes robust risk control measures and high-quality underlying assets to navigate industry challenges [85][86] Question: Pet insurance profitability and market position - The pet insurance segment is still in early stages but shows significant growth potential, with plans for more product innovations [90][92] Question: Technology export strategy - The company positions itself as an insuretech leader, focusing on empowering the insurance industry through technology [108][110]

Financial Performance - Total premium for 2022 reached RMB 24,005,331 thousand, an increase of 16.1% compared to RMB 20,480,119 thousand in 2021[3] - Net loss attributable to shareholders for 2022 was RMB (1,356,095) thousand, compared to a profit of RMB 1,164,590 thousand in 2021[3] - The total assets as of December 31, 2022, amounted to RMB 54,557,388 thousand, up from RMB 51,772,329 thousand in 2021[3] - The comprehensive cost ratio improved to 98.5% in 2022 from 99.6% in 2021, reflecting a decrease of 1.1 percentage points[5] - The solvency adequacy ratio was reported at 299% as of December 31, 2022, down from 472% in the previous year[3] - The company achieved an underwriting automation rate of 99% while handling 9.132 billion policies, with the online claims rate for health insurance rising to 96%[17] - The net loss attributable to the parent company was RMB 1.356 billion for the year[25] - The company reported a significant increase in revenue, achieving a total of 40 billion RMB for the fiscal year 2022, representing a year-over-year growth of 15%[96] - The total comprehensive loss amounted to RMB 1.84 billion, a significant decline from a gain of RMB 600 million in 2021[61] Business Growth and Client Acquisition - The number of new clients signed in the insurance industry chain increased by 216.0% from 131 in 2021 to 414 in 2022[6] - In 2022, the total premium for domestic insurance business reached RMB 23.651 billion, a year-on-year increase of 16.1%, with 9.132 billion policies issued, serving over 500 million insured users[11] - The health ecosystem served over 109 million insured users, with new insured users increasing by approximately 38 million, and the total premium for critical illness products grew by about 145.9%[12] - The e-commerce segment generated total premiums of RMB 5.261 billion, reflecting a year-on-year growth of approximately 25.7%[13] - The total premium for auto insurance increased by approximately 33.9%, surpassing the industry average, with a claims ratio improvement of 12.2 percentage points to 55.8%[15] Technology and Innovation - The company aims to leverage technology to enhance underwriting efficiency and user experience, focusing on digital transformation in the insurance sector[10] - Technology output revenue increased by 13.8% from RMB 520 million in 2021 to RMB 592 million in 2022[4] - The company is leveraging AI and data analysis to provide insights and empower licensed financial institutions throughout the loan lifecycle[14] - The company aims to leverage its technology capabilities to drive digital transformation in the insurance industry globally[22] - The company is actively collaborating with leading pet service enterprises to enhance pet health management services[35] Investment and Financial Management - The total investment income for the company decreased from RMB 2.08 billion in 2021 to a total investment loss of RMB 377 million in 2022, influenced by market volatility and accounting standard changes[58] - The company's total investment return rate and net investment return rate were approximately -1.0% and 3.2% respectively in 2022, compared to 6.7% and 2.5% in 2021[59] - The company’s financial summary indicates a focus on maintaining capital for future growth rather than distributing dividends[152] - The company has a significant shareholder structure with multiple entities holding substantial stakes, including Ping An Insurance with 150,000,000 H shares, accounting for approximately 10.56% of the total H shares[156] Governance and Management - The company has a structured governance framework with independent directors to ensure compliance and strategic oversight[90] - The company has a diverse management team with significant experience in finance and technology sectors[93] - The company has established a risk management and related party transaction control committee to enhance oversight[102] - The board of directors held a total of seven meetings and three shareholder meetings during the year ending December 31, 2022[103] - The company has adopted the principles and code provisions of the corporate governance code, ensuring compliance throughout the year[102] Employee and Social Responsibility - The company employed 3,969 full-time employees as of December 31, 2022, with compensation based on industry practices and employee performance[88] - The company has maintained good relationships with employees and has not faced any major disputes with customers or suppliers[148] - The company made total charitable donations amounting to RMB 3.52 million in 2022, contributing to community sustainability[197] - The company emphasizes the importance of gender diversity at all employee levels and aims to ensure a structured recruitment process to attract diverse candidates[125] Future Outlook - The company provided a positive outlook for 2023, projecting a revenue growth of 20% and aiming to reach 48 billion RMB[96] - The company plans to continue optimizing its product structure and enhancing digital operations to drive future growth[68] - The company is committed to sustainability, with plans to implement eco-friendly practices across all operations by 2025[96] - The company aims to enhance customer engagement through improved digital platforms, expecting a 15% increase in customer satisfaction scores[96]

Financial Performance - ZhongAn achieved total premium income of RMB 10.515 billion in the first half of 2022, representing a year-on-year growth of 6.8%[19] - The overall total premium for the company in H1 2022 was RMB 10,515,281 thousand, a 7% increase from RMB 9,841,368 thousand in H1 2021[25] - Total revenue for the six months ended June 30, 2022, reached approximately RMB 11.19 billion, representing a year-on-year growth of about 14.7%[46] - The total premium earned net amounted to RMB 10.09 billion, a 23% increase from approximately RMB 8.24 billion for the same period in 2021[56] - The total premium for the insurance segment reached RMB 10,518,489 thousand, an increase from RMB 9,841,704 thousand in the same period last year, reflecting a growth of approximately 6.9%[163] - The net loss for the same period was RMB 679.71 million, compared to a profit of RMB 604.13 million in the previous year[46] - The net loss attributable to shareholders was approximately RMB 622 million, primarily due to a significant decrease in investment income and foreign exchange losses from USD-denominated bonds[24] Premium Growth by Segment - The health ecosystem and digital life ecosystem segments grew by 10.3% and 14.2% year-on-year, respectively[19] - Total premium for the health ecosystem in H1 2022 reached RMB 4,330,152 thousand, a 10% increase from RMB 3,925,738 thousand in H1 2021, representing 42% of total premiums[25] - Digital life ecosystem total premium was RMB 3,819,423 thousand in H1 2022, up 14% from RMB 3,344,807 thousand in H1 2021, accounting for 36% of total premiums[25] - The total premium for the automotive ecosystem increased by 41% to RMB 532,918 thousand in H1 2022 from RMB 377,582 thousand in H1 2021, making up 5% of total premiums[25] - Consumer finance ecosystem total premium decreased by 16% to RMB 1,832,788 thousand in H1 2022 from RMB 2,193,241 thousand in H1 2021, representing 17% of total premiums[25] Claims Ratios - The claims ratio for the health ecosystem rose to 50.3% in H1 2022 from 37.1% in H1 2021[27] - The claims ratio for the digital life ecosystem increased to 66.2% in H1 2022 from 62.1% in H1 2021[27] - The claims ratio for the consumer finance ecosystem was 48.8% in H1 2022, up from 38.9% in H1 2021[27] - The claims ratio for the automotive ecosystem improved to 54.1% in H1 2022 from 71.5% in H1 2021[27] Investment Income and Losses - Investment income for the insurance segment was negatively impacted by a weak equity market, leading to a loss of over RMB 300 million due to foreign exchange losses[24] - The total investment income for the insurance business was approximately RMB 110 million, down from RMB 1.02 billion in the same period last year[42] - The net investment yield was approximately 1.1%, compared to 1.3% in the first half of 2021[41] - Investment income for the first half of 2022 was RMB 731,989 thousand, down from RMB 944,069 thousand in 2021, indicating a decrease of approximately 22.4%[123] Technology and Innovation - The technology segment reported other income of RMB 236 million, with technology output revenue at RMB 234 million, a decline of 12.0% year-on-year[24] - Research and development investment reached RMB 656 million in the first half of 2022, an increase of 35.4% year-on-year, accounting for 6.1% of total premiums[33] - The intelligent marketing platform and advertising operation platform helped clients reach over 100 million users, improving efficiency by 80%[34] - The company has developed a digital insurance solution that integrates data, scenarios, and intelligence to empower business growth in the insurance industry[34] User Engagement and Ecosystem Development - As of June 30, 2022, the number of registered users on the internet hospital platform exceeded 3.7 million, a year-on-year increase of over 400%[29] - The health ecosystem provided health protection and medical services to 10.92 million insured users, achieving total premiums of RMB 4.33 billion, a year-on-year growth of 10.3%[29] - The e-commerce business accounted for approximately 60% of the overall digital life ecosystem premiums, with premiums from live e-commerce return shipping insurance increasing 18.6 times to RMB 1.158 billion[30] - The company aims to enhance user retention and long-term competitive barriers by continuously enriching its ecosystem-oriented product matrix[29] Corporate Governance and Management - The company is committed to maintaining strict corporate governance and has adopted the new corporate governance code effective from January 1, 2022[94] - The audit and consumer rights protection committee has reviewed the company's unaudited interim results for the six months ended June 30, 2022[96] - The company has established various committees, including the nomination and remuneration committee, strategic and investment decision committee, and risk management and related party transaction control committee[97] Shareholder Information - Major shareholder Ant Group holds 152,462,937 H shares, representing approximately 10.74% of the total issued share capital[89] - Ping An Insurance owns 150,000,000 H shares, accounting for approximately 10.56% of the total issued share capital[89] - Tencent holds 114,921,812 H shares, which is about 8.09% of the total issued share capital[89] - The company has a total of 1,419,812,900 H shares issued as of June 30, 2022[90] Cash Flow and Financial Position - Cash and cash equivalents decreased from approximately RMB 4.301 billion as of December 31, 2021, to approximately RMB 3.293 billion as of June 30, 2022, primarily due to net cash outflows from operating activities[63] - The net cash outflow from operating activities for the six months ended June 30, 2022, was approximately RMB 77.59 million, compared to a net inflow of RMB 478.28 million for the same period in 2021[74] - The total liabilities to total assets ratio as of June 30, 2022, was approximately 67.5%, an increase of 4.8 percentage points from approximately 62.7% as of June 30, 2021[82] - The comprehensive solvency ratio as of June 30, 2022, was 314%, down from 472% as of December 31, 2021[78] Future Outlook and Strategic Initiatives - The company plans to continue expanding its fintech services and internet insurance offerings to enhance market presence[133] - The company aims to optimize asset allocation and balance long-term stable returns with short-term capital market opportunities[42] - The company is exploring potential acquisitions to bolster its technology capabilities, with a budget allocation of RMB 200 million for this initiative[200] - Overall, the company remains optimistic about future growth, citing a robust pipeline of new products and services[200]

Financial Performance - Total premium income for 2021 reached RMB 20,480,119, an increase of 22% from RMB 16,708,504 in 2020[20] - Net profit for the year was RMB 757,099, compared to RMB 254,380 in 2020, marking a significant increase of 197%[20] - The company achieved a basic earnings per share of RMB 0.79, up from RMB 0.38 in the previous year, reflecting a growth of 107%[20] - The total assets increased to RMB 51,772,329, a rise of 13% from RMB 45,673,436 in 2020[20] - The comprehensive cost ratio improved to 99.6%, down from 102.5% in 2020, indicating enhanced operational efficiency[20] - ZhongAn reported a net profit attributable to shareholders of RMB 1.165 billion in 2021, a year-on-year increase of 110.3%[41] - The insurance segment achieved a net profit of approximately RMB 1.786 billion, up about 79.9% year-on-year[41] - The technology segment generated other income of approximately RMB 530 million, with technology output revenue growing by about 42.5%[41] - The company’s total revenue for the year ended December 31, 2021, was approximately RMB 21.940 billion, a year-on-year growth of about 18.6%[71] - Net profit for the year ended December 31, 2021, was approximately RMB 757 million, compared to RMB 254 million for the year ended December 31, 2020, indicating significant improvement in performance[100] Business Growth and Strategy - The company is focusing on integrating healthcare, pharmaceuticals, and insurance to provide a one-stop medical health service throughout the life cycle[30] - Significant expansion in international client base and technology output revenue, validating the company's technological capabilities[31] - The company aims to focus on "quality growth" by enhancing user service and expanding innovative product offerings to improve user retention and competitive barriers[47] - The company plans to continue its "insurance + technology" dual-engine strategy, focusing on sustainable quality growth and enhancing brand building[70] - The company aims to enhance its asset allocation and risk management capabilities to capture investment opportunities in the capital market[26] - The company is exploring potential mergers and acquisitions to enhance its service offerings and customer base[108] - The company is considering strategic acquisitions to enhance its market position, targeting firms with complementary technologies[110] Product and Service Development - The launch of the "Zunxiang eLife 2022" version in December 2021, introducing a million medical insurance policy that can be utilized even without illness[33] - The company launched over 42 chronic disease products, including a health insurance plan specifically for hepatitis B patients, enhancing health management for this demographic[46] - The "Zunxiang e-Sheng" product series was upgraded to cater to chronic disease patients, providing tailored medical plans for conditions such as diabetes and hypertension[46] - The company introduced two new insurance products in 2021, which are expected to contribute an additional 5% to overall revenue in 2022[109] Market Expansion - The health ecosystem accounted for 38% of total premiums in 2021, with a year-on-year growth of 16%[42] - The consumer finance ecosystem saw a significant increase, with total premiums growing by 106% year-on-year, reaching RMB 4.45 billion[42] - The company plans to expand its market presence by entering three new regions in 2022, aiming for a 15% increase in market share[108] - Market expansion plans include entering three new international markets by the end of 2022[110] Technology and Innovation - Research and development investment reached RMB 1.127 billion in 2021, a year-on-year increase of 24.5%, accounting for 5.5% of total premiums[56] - The company aims to support the insurance industry in digital transformation through advanced technology and business models, enhancing revenue growth sustainability[58] - The company is investing heavily in new technology development, with a budget allocation of 200 million RMB for R&D in 2022[108] - Investment in new technology development increased by 30% in 2021, focusing on enhancing digital insurance solutions[109] Risk Management and Compliance - The company emphasizes a strong risk management framework, addressing insurance, market, credit, operational, strategic, reputation, and liquidity risks[160][162] - The company has implemented a comprehensive risk management system to enhance monitoring and early warning capabilities in light of the upcoming implementation of the second phase of the solvency regime in 2022[160] - The management emphasized the importance of risk management and compliance in their future strategies[110] Corporate Governance - The company adopted corporate governance principles and complied with all applicable code provisions for the year ending December 31, 2021[114] - The board of directors has a commitment to transparency and effective internal control measures[114] - The company has established a Strategic and Investment Decision Committee to oversee investment decision-making and asset management strategies[136] - The company has implemented a mechanism for assessing the independence of its board members to ensure independent viewpoints[120] Employee and Social Responsibility - The company reported a total of 3,791 employees as of December 31, 2021, an increase from 3,033 employees in 2020, representing a growth of approximately 25%[164] - The company has a strong emphasis on training and development, providing both internal and external training opportunities for employees[164] - The company participates in local social security programs, contributing to housing, pension, medical, work injury, and unemployment benefits as mandated by Chinese regulations[164] Shareholder Information - The company did not recommend a final dividend for the year ending December 31, 2021, similar to 2020, to retain resources for business development[170] - As of December 31, 2021, the largest shareholder, Ant Group, held 199 million H shares, representing 14.02% of the class shares and 13.54% of the total issued share capital[175] - The company’s shareholder structure indicates a significant concentration of ownership, with several entities holding substantial stakes[176]

Call Start: 05:00 January 1, 0000 6:16 AM ET ZhongAn Online P & C Insurance Co., Ltd. (OTCPK:ZZHGF) Q2 2021 Earnings Conference Call August 26, 2021 05:00 ET Company Participants Jiang Xing - Chief Executive Officer Yuping Wen - Executive Deputy Chairman Li Gaofeng - Chief Financial Officer Wang Xiaoming - Director Conference Call Participants Operator Hello, everyone. Welcome to this con-call. So this is the 2021 Joint Financial and Results Earning Call. So I have to remind everybody that this is the Engli ...