PING AN OF CHINA(HK:02318)2020-03-18 09:26Strategic 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].