中国财险(02328) - 2025 - 中期财报

Company Profile Company Profile PICC Property and Casualty Company Limited is the largest P&C insurer in mainland China and was the first to be listed overseas - The company is the largest property and casualty insurer in mainland China, established in 2003 by PICC Group and listed on the Hong Kong Stock Exchange the same year, becoming the first overseas-listed financial enterprise from mainland China[3] Key Shareholding Structure | Indicator | Value | | :--- | :--- | | Total Share Capital | 22,242,765,303 shares | | PICC Group Shareholding | 68.98% | | H-Share Shareholders | 31.02% | Main Business The company engages in various RMB and foreign currency insurance businesses, reinsurance, and state-approved investment activities - The company's business scope is extensive, covering motor vehicle, corporate property, cargo, liability, accident, short-term health, agricultural, credit, guarantee, household property, and marine insurance in both RMB and foreign currencies[4] - The company also engages in related reinsurance businesses, as well as investment and fund utilization activities permitted by national laws and regulations[4] Financial Summary Financial Summary In H1 2025, the company achieved steady growth in premiums and revenue, with significant increases in underwriting and net profit, alongside an improved combined ratio Key Financial Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Original Premium Income | 323,282 | 311,996 | 3.6 | | Insurance Service Revenue | 249,040 | 235,841 | 5.6 | | Underwriting Profit | 13,015 | 8,999 | 44.6 | | Net Profit | 24,455 | 18,491 | 32.3 | | Combined Ratio | 94.8% | 96.2% | Decreased by 1.4 pps | Key Financial Position | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 804,605 | 778,244 | 3.4 | | Total Liabilities | 523,544 | 517,622 | 1.1 | | Total Equity | 281,061 | 260,622 | 7.8 | - A proposed interim dividend of RMB 0.24 per share, representing a year-on-year increase of 15.4%[12] Discussion and Analysis of Operating Results and Financial Condition I. Performance Overview In H1 2025, the company maintained its leading market position with steady premium growth and significant increases in underwriting and net profit - The company actively implemented the decisions of the Party Central Committee and focused on the Group's "Building a First-Class" strategy to promote high-quality development[13] H1 2025 Performance Highlights | Indicator | H1 2025 (RMB in hundred millions) | YoY Growth (%) | Market Share (%) | | :--- | :--- | :--- | :--- | | Original Premium Income | 3,232.82 | 3.6 | 33.5 | | Insurance Service Revenue | 2,490.40 | 5.6 | - | | Underwriting Profit | 130.15 | 44.6 | - | | Combined Ratio | 94.8% | Decreased by 1.4 pps | - | | Total Investment Income | 172.60 | 26.6 | - | | Net Profit | 244.55 | 32.3 | - | - The company enhanced operational management, improved underwriting and claims efficiency, and optimized risk pricing models to drive business quality[14] - The company steadily expanded its overseas business, covering 122 countries and regions and providing RMB 1.28 trillion in risk protection for China's overseas interests in the first half of the year[18] - The company advanced its digital transformation by introducing the full-size DeepSeek large model and establishing a comprehensive AI application framework[19] - The company provided risk protection for 129 million individual customers and 4.55 million group customers, with total insured amounts reaching RMB 1,649.95 trillion in the first half of the year[21] II. Analysis of Main Business Operations This section analyzes the performance of the company's insurance and investment businesses, highlighting growth in revenue and profit alongside shifts in business mix and investment strategy (I) Insurance Business This section details the performance of the insurance business, noting growth in revenue and underwriting profit, though the combined loss ratio increased 1. Business Overview In H1 2025, insurance service revenue and underwriting profit grew significantly, driven by key business lines and improved operational efficiency Insurance Business Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 249,040 | 235,841 | 5.6 | | Insurance Service Result | 16,885 | 13,495 | 25.1 | | Underwriting Profit | 13,015 | 8,999 | 44.6 | | Combined Loss Ratio | 71.8% | 70.1% | Increased by 1.7 pps | | Combined Expense Ratio | 23.0% | 26.1% | Decreased by 3.1 pps | | Combined Ratio | 94.8% | 96.2% | Decreased by 1.4 pps | - The increase in insurance service revenue was primarily driven by business growth in motor vehicle, accident & health, and corporate property insurance[22] Premiums by Insurance Type Motor vehicle insurance remained the largest segment, while accident & health and other insurance lines demonstrated strong growth Original Premium Income by Insurance Type | Insurance Type | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Motor Vehicle Insurance | 144,065 | 139,364 | 3.4 | | Accident & Health Insurance | 82,614 | 76,585 | 7.9 | | Agricultural Insurance | 43,790 | 45,587 | -3.9 | | Liability Insurance | 21,944 | 21,655 | 1.3 | | Corporate Property Insurance | 11,182 | 10,580 | 5.7 | | Other Insurance | 19,687 | 18,225 | 8.0 | | Total | 323,282 | 311,996 | 3.6 | Premiums by Sales Channel The agency channel remained dominant, though its proportion decreased as the direct sales channel experienced significant growth Original Premium Income by Sales Channel | Channel Category | H1 2025 Amount (RMB in millions) | H1 2025 Share (%) | Change (%) | H1 2024 Amount (RMB in millions) | H1 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Agency Sales Channel | 156,624 | 48.4 | -2.5 | 160,558 | 51.4 | | Of which: Individual Agents | 78,473 | 24.3 | -10.3 | 87,494 | 28.0 | | Part-time Agents | 12,439 | 3.8 | -4.7 | 13,048 | 4.2 | | Professional Agents | 65,712 | 20.3 | 9.5 | 60,016 | 19.2 | | Direct Sales Channel | 140,360 | 43.5 | 11.3 | 126,162 | 40.5 | | Insurance Brokerage Channel | 26,298 | 8.1 | 4.0 | 25,276 | 8.1 | | Total | 323,282 | 100.0 | 3.6 | 311,996 | 100.0 | Premiums by Region Guangdong province led premium income with 7.3% growth, followed by Jiangsu and Zhejiang provinces Original Premium Income by Region | Region | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Guangdong Province | 32,884 | 30,659 | 7.3 | | Jiangsu Province | 32,218 | 30,991 | 4.0 | | Zhejiang Province | 24,806 | 23,599 | 5.1 | | Shandong Province | 20,193 | 20,054 | 0.7 | | Hebei Province | 17,291 | 16,838 | 2.7 | | Hubei Province | 16,199 | 15,327 | 5.7 | | Sichuan Province | 14,680 | 14,185 | 3.5 | | Anhui Province | 14,124 | 13,460 | 4.9 | | Hunan Province | 14,020 | 14,546 | -3.6 | | Fujian Province | 12,088 | 12,076 | 0.1 | | Other Regions | 124,779 | 120,261 | 3.8 | | Total | 323,282 | 311,996 | 3.6 | 2. Operating Segment Data This section analyzes the operating data and financial indicators for each major insurance line (1) Motor Vehicle Insurance Underwriting profit for motor vehicle insurance grew substantially due to a lower combined ratio, despite a higher loss ratio from new energy vehicles and rising claims costs Motor Vehicle Insurance Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 150,276 | 145,157 | 3.5 | | Underwriting Profit | 8,726 | 5,202 | 67.7 | | Combined Loss Ratio | 73.1% | 71.2% | Increased by 1.9 pps | | Combined Expense Ratio | 21.1% | 25.2% | Decreased by 4.1 pps | | Combined Ratio | 94.2% | 96.4% | Decreased by 2.2 pps | - The proportion of private passenger vehicle business increased by 1.0 percentage point to 73.4%, as the company enhanced its channel capabilities and renewal management[29] - The rise in the combined loss ratio was mainly influenced by the increasing proportion of new energy vehicles, a significant rise in personal injury claims, and higher compensation standards[29] (2) Accident & Health Insurance This segment saw strong revenue growth but incurred an underwriting loss due to a higher combined loss ratio from business structure changes Accident & Health Insurance Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 30,975 | 24,751 | 25.1 | | Underwriting (Loss)/Profit | (569) | 13 | N/A | | Combined Loss Ratio | 71.1% | 64.8% | Increased by 6.3 pps | | Combined Expense Ratio | 30.7% | 35.1% | Decreased by 4.4 pps | | Combined Ratio | 101.8% | 99.9% | Increased by 1.9 pps | - The company consolidated its leading position in policy-based health insurance and actively expanded into new sectors like sports, tourism, education, and healthcare[30] - The underwriting loss was primarily due to a higher combined loss ratio resulting from changes in business structure, despite enhanced risk control measures[31] (3) Agricultural Insurance Agricultural insurance underwriting profit grew, supported by a lower combined ratio achieved through enhanced risk management and claims operations Agricultural Insurance Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 23,179 | 23,292 | -0.5 | | Underwriting Profit | 2,697 | 2,572 | 4.9 | | Combined Loss Ratio | 74.5% | 75.3% | Decreased by 0.8 pps | | Combined Expense Ratio | 13.9% | 13.7% | Increased by 0.2 pps | | Combined Ratio | 88.4% | 89.0% | Decreased by 0.6 pps | - The company expanded its "Greater Agricultural Insurance" layout, capitalizing on policy opportunities for major grain crops[32] - The company strengthened agricultural insurance underwriting risk management and optimized its claims operating system to actively respond to natural disasters[33] (4) Liability Insurance Liability insurance reduced its underwriting loss, as a significant drop in the expense ratio offset an increase in the loss ratio Liability Insurance Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 18,575 | 18,339 | 1.3 | | Underwriting Loss | (674) | (747) | N/A | | Combined Loss Ratio | 75.0% | 73.5% | Increased by 1.5 pps | | Combined Expense Ratio | 28.6% | 30.6% | Decreased by 2.0 pps | | Combined Ratio | 103.6% | 104.1% | Decreased by 0.5 pps | - The company optimized its underwriting policies and upgraded its exclusive product system for new urban residents, increasing its market share in internet-based business[34] - Despite a higher combined loss ratio, the company reduced its underwriting loss by RMB 73 million year-on-year through optimized strategies and enhanced risk control[35] (5) Corporate Property Insurance Corporate property insurance achieved a substantial increase in underwriting profit, driven by a significant reduction in both loss and expense ratios Corporate Property Insurance Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 9,243 | 8,862 | 4.3 | | Underwriting Profit | 918 | 38 | 2315.8 | | Combined Loss Ratio | 64.3% | 71.6% | Decreased by 7.3 pps | | Combined Expense Ratio | 25.8% | 28.0% | Decreased by 2.2 pps | | Combined Ratio | 90.1% | 99.6% | Decreased by 9.5 pps | - The company capitalized on the domestic economic recovery to serve the real economy and specialized, innovative enterprises, focusing on increasing coverage for SMEs[36] - The significant decrease in the combined loss and combined ratios was mainly due to improved risk mitigation services, enhanced risk surveys in key industries, and a lower impact from major catastrophes compared to the same period last year[37] (6) Other Insurance Other insurance lines maintained stable underwriting profit, as a lower expense ratio largely offset the impact of a higher loss ratio Other Insurance Performance | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 16,792 | 15,440 | 8.8 | | Underwriting Profit | 1,917 | 1,921 | -0.2 | | Combined Loss Ratio | 58.3% | 55.2% | Increased by 3.1 pps | | Combined Expense Ratio | 30.3% | 32.4% | Decreased by 2.1 pps | | Combined Ratio | 88.6% | 87.6% | Increased by 1.0 pps | - The company supported technological self-reliance, the low-altitude economy, and high-level foreign trade, actively insuring key "Belt and Road" projects[38] - Despite a higher combined loss ratio, underwriting profit remained stable due to continuous operational improvements, differentiated product strategies, and enhanced claims system controls[39] (II) Insurance Funds Investment Business The company's investment business achieved significant growth in total investment income, driven by an optimized asset allocation with an increased proportion of equity investments 1. Investment Performance Total investment income grew by 26.6%, with the total investment yield rising to 2.6%, reflecting successful portfolio optimization and active trading Investment Performance Summary | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from financial assets not at FVTPL | 6,080 | 5,713 | 6.4 | | Other investment income | 7,901 | 4,773 | 65.5 | | Share of profits and losses of associates and joint ventures | 3,617 | 3,241 | 11.6 | | Total Investment Income | 17,260 | 13,638 | 26.6 | | Total Investment Yield (not annualized) | 2.6% | 2.4% | Increased by 0.2 pps | | Total Investment Assets | 711,480 | 676,512 | 5.2 | - The company adhered to a principle of seeking progress while maintaining stability, optimizing its equity asset structure and capitalizing on market opportunities through tactical trading[40] - The company enhanced proactive operations to increase income from bond price differentials[40] 2. Investment Asset Composition Total investment assets grew by 5.2%, with the proportion of equity investments increasing while fixed-income investments slightly decreased Investment Assets by Type | Investment Asset Category | Balance at June 30, 2025 (RMB in millions) | Share at June 30, 2025 (%) | Balance at Dec 31, 2024 (RMB in millions) | Share at Dec 31, 2024 (%) | Change in Balance (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 16,963 | 2.4 | 19,370 | 2.9 | -12.4 | | Term deposits | 66,998 | 9.4 | 77,156 | 11.4 | -13.2 | | Financial investments at amortized cost | 146,103 | 20.5 | 136,060 | 20.1 | 7.4 | | Financial assets at FVOCI | 270,848 | 38.1 | 243,771 | 36.0 | 11.1 | | Financial assets at FVTPL | 127,906 | 18.0 | 120,066 | 17.7 | 6.5 | | Investment properties | 7,929 | 1.1 | 7,234 | 1.1 | 9.6 | | Investments in associates and joint ventures | 68,906 | 9.7 | 67,129 | 9.9 | 2.6 | | Other investment assets | 5,827 | 0.8 | 5,726 | 0.9 | 1.8 | | Total Investment Assets | 711,480 | 100.0 | 676,512 | 100.0 | 5.2 | Investment Assets by Object | Investment Object Category | Balance at June 30, 2025 (RMB in millions) | Share at June 30, 2025 (%) | Balance at Dec 31, 2024 (RMB in millions) | Share at Dec 31, 2024 (%) | Change in Balance (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Fixed-income investments | 425,506 | 59.8 | 407,026 | 60.2 | 4.5 | | Equity investments | 186,046 | 26.1 | 170,027 | 25.1 | 9.4 | - The increase in the proportion of equity investments was mainly due to increased stock allocation and a rise in the market value of equity assets[44] 3. Investments in Associates and Joint Ventures As of June 30, 2025, the company's investments in associates and joint ventures increased by 2.6% from the beginning of the year Investments in Associates and Joint Ventures | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Investments in associates and joint ventures | 68,906 | 67,129 | 2.6 | 4. Major Investments During the reporting period, there were no significant changes to the major investments of the company and its subsidiaries compared to the 2024 annual report - There were no material changes in the major investment information of the company and its subsidiaries during the reporting period[46] 5. Asset Pledge The company pledged certain securities as collateral for securities sold under repurchase agreements for liquidity management purposes - Securities held by the company were used as collateral in securities sold under repurchase agreements to meet liquidity management needs[47] (III) Overall Performance In H1 2025, the company's profit before tax and net profit grew significantly, accompanied by steady growth in total assets and net assets Profit Before Tax In H1 2025, the company's profit before tax was RMB 28.904 billion, an increase of RMB 7.255 billion or 33.5% year-on-year Profit Before Tax | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Before Tax | 28,904 | 21,649 | 33.5 | Income Tax Expense In H1 2025, income tax expense was RMB 4.449 billion, an increase of 40.9%, primarily due to higher taxable income Income Tax Expense | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | (4,449) | (3,158) | 40.9 | - The increase in income tax expense was mainly attributable to the rise in taxable income[50] Net Profit In H1 2025, net profit increased by 32.3% to RMB 24.455 billion, with basic earnings per share at RMB 1.099 Net Profit | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit | 24,455 | 18,491 | 32.3 | | Basic Earnings Per Share | RMB 1.099 | RMB 0.831 | - | III. Special Analysis This section analyzes the company's liquidity, capital adequacy, risk management, and other specific matters (I) Liquidity and Capital Adequacy Analysis The company maintained strong operating cash flow and high solvency adequacy ratios, though financing activities resulted in a net cash outflow due to bond redemption Cash Flow Analysis In H1 2025, net cash inflow from operating activities grew by 26.6%, while financing activities saw a significant net outflow due to the redemption of capital supplementary bonds Cash Flow Summary | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | Change (RMB in millions) | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 26,891 | 21,246 | 5,645 | | Net cash outflow from investing activities | (11,657) | (16,501) | 4,844 | | Net cash (outflow)/inflow from financing activities | (17,633) | 287 | -17,920 | | Net (decrease)/increase in cash and cash equivalents | (2,403) | 5,039 | -7,442 | - The increase in net cash outflow from financing activities was mainly due to the redemption of RMB 8 billion in capital supplementary bonds and a reduction in the scale of securities sold under repurchase agreements[53] - As of June 30, 2025, the company's cash and cash equivalents (excluding accrued interest) amounted to RMB 16.96 billion[54] Gearing Ratio As of June 30, 2025, the company's gearing ratio was 63.6%, a decrease of 0.3 percentage points from the beginning of the year Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | Change (pps) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 63.6% | 63.9% | Decreased by 0.3 | Working Capital Sources The company's working capital is primarily sourced from cash flows generated by operating activities, mainly collected premiums - The company's main source of liquidity is cash flow from operating activities, primarily collected premiums[58] - The company expects to meet its future working capital needs through operating cash flows and has sufficient working capital[58] Capital Expenditure In H1 2025, the company's capital expenditure amounted to RMB 0.73 billion, mainly for property under construction, vehicle purchases, and IT system development Capital Expenditure | Indicator | H1 2025 (RMB in billions) | | :--- | :--- | | Capital Expenditure | 0.73 | - Capital expenditure primarily included spending on operating properties under construction, purchases of operating motor vehicles, and development of information systems[59] Solvency As of June 30, 2025, the company's comprehensive and core solvency adequacy ratios both increased, indicating a robust capital position Solvency Adequacy | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | Change (pps) | | :--- | :--- | :--- | :--- | | Actual Capital | 284,513 | 265,560 | 7.1 | | Core Capital | 257,672 | 240,863 | 7.0 | | Minimum Capital | 120,879 | 114,171 | 5.9 | | Comprehensive Solvency Adequacy Ratio | 235.4% | 232.6% | Increased by 2.8 | | Core Solvency Adequacy Ratio | 213.2% | 211.0% | Increased by 2.2 | (II) Risk Management The company effectively manages credit, exchange rate, and interest rate risks through rigorous assessments, diversification, and optimized investment strategies Credit Risk The company effectively controls credit risk through a diversified customer base, regular credit assessments of reinsurers, and adherence to strict investment rating requirements - The company's credit risk exposure is mainly concentrated in premiums receivable, reinsurance assets, debt investments, and bank deposits[62] - The company effectively controls credit risk through a diversified customer base, regular credit assessments of reinsurers, strict adherence to corporate bond investment rating regulations (over 99% of bonds are rated AAA or are exempt from rating), and placing most deposits with state-owned banks[62][63] Exchange Rate Risk The company's primary operations are in RMB, but it faces exchange rate risk from foreign currency-denominated business and assets, with capital account transactions subject to foreign exchange controls - The company mainly operates in RMB but faces exchange rate risk from some foreign currency-denominated businesses (such as corporate property, international cargo, and aviation insurance) and foreign currency assets and liabilities[64] - The company's capital account foreign exchange transactions are subject to foreign exchange controls, and the Chinese government's policies may lead to exchange rate fluctuations[64] Interest Rate Risk The company manages interest rate risk by maintaining a balanced portfolio of fixed and floating rate instruments and using interest rate swaps for hedging - The company manages interest rate risk by maintaining an appropriate mix of fixed and floating rate instruments and managing the maturity profiles of interest-bearing financial assets and liabilities[65] - The company uses interest rate swap contracts for hedging to manage floating interest rate risk[66] (III) Other Special Analysis This section covers contingent events, post-balance sheet date events, new product development, and employee information Contingent Events The company is involved in routine legal proceedings and arbitrations, which are not expected to have a material adverse impact on its financial condition or operating results - The company is involved in legal proceedings and arbitrations in its ordinary course of business, mainly related to policy claims[67] - Management believes that any resulting liabilities will not have a material adverse effect on the company's financial condition or operating results[67] Post-Balance Sheet Date Events The Board of Directors proposed an interim dividend of RMB 0.24 per ordinary share for 2025, subject to approval at the general meeting - The Board of Directors proposed the distribution of an interim dividend for 2025 of RMB 0.24 per ordinary share, totaling RMB 5.338 billion, which is subject to approval at the general meeting[68][189] New Product Development In H1 2025, the company developed or revised 1,227 insurance clauses to support structural reforms in product and service supply - In the first half of 2025, the company developed or revised a total of 1,227 insurance clauses, including 234 national and 993 local clauses[69] - The company deepened the supply-side structural reform of insurance products and services, continuously enriching its product and service system[69] Employees As of June 30, 2025, the company had 161,963 employees, with total remuneration paid in H1 2025 amounting to RMB 21.314 billion Employee Information | Indicator | Value | | :--- | :--- | | Number of Employees (June 30, 2025) | 161,963 | | Employee Remuneration (H1 2025) | RMB 21.314 billion | - The company enhances employee performance and efficiency through multiple career development paths, strengthened training, and performance assessments[70] IV. Outlook The company will focus on serving China's modernization, deepening reforms, and optimizing asset allocation to achieve high-quality development and value creation - The company will focus on serving China's modernization, advancing the "five major areas" of finance, deepening supply-side structural reform in insurance, and enhancing operational management and risk control[71] - Serving National Strategies: Vigorously promote technology finance, green finance, inclusive finance, pension finance, and digital finance to enhance insurance coverage and service capabilities[71] - Deepening Reform and Innovation: Strengthen standardization, refined operations, differentiated management, and digital empowerment to build core competitiveness towards becoming a world-leading P&C insurer[72] - Strengthening Professional Operations: Promote quality and efficiency in business development, optimize resource allocation, build a "greater consumer protection" framework, and deepen digital transformation[72] - Adhering to Compliant Operations: Improve internal control, compliance, and comprehensive risk management systems, and strictly implement the "filing and execution integration" for auto insurance[74] - Continuously Optimizing Asset Allocation: For fixed-income investments, strengthen market analysis and steadily expand scale; for equity investments, seize opportunities for long-term capital entry, actively allocate to high-dividend stocks, and diversify investment strategies[74] Corporate Governance and Other Information Interests of Directors, Supervisors and President in Shares As of June 30, 2025, no directors, supervisors, or the president held any disclosable interests or short positions in the company's shares - As of June 30, 2025, no directors, supervisors, or the president of the company held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations that required disclosure[76] - In H1 2025, the company did not grant any rights to subscribe for shares of the company or its associated corporations to any director, supervisor, president (including their spouses or children under 18)[76] Changes in the Board of Directors and Supervisory Committee There were no changes in the composition of the Board of Directors or the Supervisory Committee during the reporting period - From January 1, 2025, to the date of this interim report, there were no changes in the members of the Board of Directors[77] - From January 1, 2025, to the date of this interim report, there were no changes in the members of the Supervisory Committee[78] - The report lists the members of the Board of Directors (Ms. Ding Xiangqun, Mr. Yu Ze, etc.) and the Supervisory Committee (Mr. Dong Qingxiu, Mr. Wang Yadong, etc.) as of the interim report date[78][79] Changes in Information of Directors and Supervisors During the reporting period, there were several changes in the roles of directors, while supervisors' information remained unchanged - Ms. Ding Xiangqun also serves as the Chairman and a non-executive director of The People's Insurance Company of China (Hong Kong), Limited[80] - Mr. Jiang Caishi ceased to be a supervisor of Shanghai Insurance Exchange Co., Ltd[81] - Mr. Zhang Daoming now also serves as the Chairman and a non-executive director of PICC Financial Services Company Limited, and ceased to be an executive director and president[81] - Ms. Xue Shuang ceased to be an independent director of Jiangsu Financial Leasing Co., Ltd[82] - There were no changes in the information of the supervisors[84] Model Code for Securities Transactions by Directors of Listed Issuers The company has adopted guidelines for employee securities trading, and all directors and supervisors have confirmed compliance during H1 2025 - The company has adopted the "Guidelines on Securities Dealings by Employees," and all directors and supervisors have confirmed their compliance with the "Model Code" and the "Guidelines on Securities Dealings" throughout H1 2025[85] Shareholders' Interests and Short Positions to be Disclosed under the Securities and Futures Ordinance As of June 30, 2025, PICC Group held 68.98% of the company's total issued shares, with several major institutional investors holding significant positions in H-shares Major Shareholdings | Shareholder Name | Capacity | Number of Shares (Long Position) | Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | PICC Group | Beneficial owner | 15,343,471,470 (Domestic Shares) | 68.98% | | JPMorgan Chase & Co. | Beneficial owner, investment manager, etc. | 562,543,191 (H Shares) | 2.53% | | Citigroup Inc. | Interest of controlled corporation, etc. | 544,562,211 (H Shares) | 2.45% | | The Capital Group Companies, Inc. | Interest of controlled corporation | 486,470,923 (H Shares) | 2.19% | | BlackRock, Inc. | Interest of controlled corporation | 401,898,644 (H Shares) | 1.81 | - Institutional investors including JPMorgan Chase & Co., Citigroup Inc., and BlackRock, Inc. held short positions in the company's H-shares[86] Proposed Interim Dividend and Closure of H-Share Register The Board proposed an interim dividend of RMB 0.24 per share, subject to shareholder approval, with payment details to be announced later - The Board of Directors proposed an interim dividend of RMB 0.24 per share (inclusive of tax) for the first half of 2025, totaling RMB 5.338 billion[88] - The dividend proposal is subject to approval at an extraordinary general meeting, with specific arrangements and the H-share register closure period to be disclosed separately[88] Withholding and Payment of Dividend Income Tax The company will withhold income tax on dividends distributed to H-shareholders in accordance with Chinese tax regulations - The company is required to withhold and pay dividend income tax for H-shareholders, including corporate income tax for non-resident enterprise shareholders and individual income tax for overseas individual shareholders and mainland individual shareholders via the Stock Connect program[89] - Information regarding tax relief will be disclosed separately[89] Purchase, Sale or Redemption of the Company's Listed Securities In H1 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - In the first half of 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and there were no treasury shares[91] Corporate Governance The company complied with all code provisions of the Corporate Governance Code during the reporting period - The company has complied with all code provisions of the Corporate Governance Code during the reporting period[92] Review of Interim Results The company's auditor and Audit Committee have reviewed the unaudited interim condensed consolidated financial information - The company's auditor, Ernst & Young, and the company's Audit Committee have reviewed the interim condensed consolidated financial information[93] Review Report on the Interim Condensed Consolidated Financial Information Review Report on the Interim Condensed Consolidated Financial Information The auditor's review concluded that nothing has come to their attention that causes them to believe the interim financial information is not prepared in accordance with HKAS 34 - Ernst & Young conducted a review of the company's interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[95] - The review concluded that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[96] Unaudited Interim Condensed Consolidated Financial Information Interim Condensed Consolidated Income Statement In H1 2025, the company achieved insurance service revenue of RMB 249.04 billion and a net profit of RMB 24.455 billion Income Statement Summary | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Insurance service revenue | 249,040 | 235,841 | | Insurance service expenses | (227,806) | (217,380) | | Insurance service result | 16,885 | 13,495 | | Underwriting finance losses | (4,415) | (5,106) | | Net profit | 24,455 | 18,491 | | Attributable to equity holders of the parent | 24,454 | 18,490 | | Basic earnings per share | RMB 1.099 | RMB 0.831 | Interim Condensed Consolidated Statement of Comprehensive Income In H1 2025, the company's total comprehensive income reached RMB 27.812 billion, including net profit and other comprehensive income Comprehensive Income Summary | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Net profit | 24,455 | 18,491 | | Other comprehensive income, net of tax | 3,357 | 3,786 | | Total comprehensive income | 27,812 | 22,277 | | Attributable to equity holders of the parent | 27,785 | 22,275 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were RMB 804.605 billion and total equity was RMB 281.061 billion Financial Position Summary | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Total Assets | 804,605 | 778,244 | | Total Liabilities | 523,544 | 517,622 | | Total Equity | 281,061 | 260,622 | - Financial investments (including those at amortized cost, FVOCI, and FVTPL) totaled RMB 544,857 million, representing the company's largest asset class[101] - Insurance contract liabilities amounted to RMB 417,025 million, constituting the company's largest liability class[101] Interim Condensed Consolidated Statement of Changes in Equity In H1 2025, equity attributable to parent company shareholders increased, driven by net profit and other comprehensive income, partially offset by dividend payments Changes in Equity Summary | Indicator | January 1, 2025 (RMB in millions) | June 30, 2025 (RMB in millions) | | :--- | :--- | :--- | | Equity attributable to equity holders of the parent | 257,924 | 278,324 | | Net profit | - | 24,454 | | Other comprehensive income | - | 3,331 | | Dividends declared | - | (7,385) | Interim Condensed Consolidated Statement of Cash Flows In H1 2025, the company generated a net cash inflow from operating activities, while investing and financing activities resulted in net cash outflows Cash Flow Summary | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Net cash generated from operating activities | 26,891 | 21,246 | | Net cash used in investing activities | (11,657) | (16,501) | | Net cash (used in)/generated from financing activities | (17,633) | 287 | | Net (decrease)/increase in cash and cash equivalents | (2,403) | 5,039 | | Cash and cash equivalents at end of period | 16,960 | 21,527 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes essential for understanding the interim condensed consolidated financial information 1. Corporate Information PICC P&C is a joint stock company incorporated in China, listed in Hong Kong, and primarily engages in property and casualty insurance - The company is a joint stock company incorporated in China, listed on the Hong Kong Stock Exchange, with PICC Group as its parent and ultimate holding company[112] - The company is principally engaged in providing property and casualty insurance products and services[112] 2. Basis of Preparation The interim financial information is prepared in accordance with HKAS 34 and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules - This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[113] - The adoption of amended Hong Kong Financial Reporting Standards did not have a material impact on the Group's interim condensed consolidated financial information[115] 3. Operating Segment Report The company is organized into six main operating segments based on products and services, with its primary operations concentrated in mainland China - The company's operating segments include Motor Vehicle, Accident & Health, Agricultural, Liability, Corporate Property, Other Insurance, and a Head Office segment[119][120] - As the company's main operations are concentrated in mainland China, no geographical segment information is presented[119] Profit/(Loss) Before Tax by Segment | Segment | H1 2025 Profit/(Loss) Before Tax (RMB in millions) | H1 2024 Profit/(Loss) Before Tax (RMB in millions) | | :--- | :--- | :--- | | Motor Vehicle Insurance | 8,926 | 5,544 | | Accident & Health Insurance | (626) | 208 | | Agricultural Insurance | 3,428 | 3,054 | | Liability Insurance | (288) | (511) | | Corporate Property Insurance | 1,993 | 906 | | Other Insurance | 3,619 | 4,137 | | Head Office and Others | 11,852 | 8,311 | | Total | 28,904 | 21,649 | 4. Insurance Service Revenue and Expenses In H1 2025, total insurance service revenue was RMB 249.04 billion, with incurred claims being the largest component of insurance service expenses Insurance Service Revenue and Expenses | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Total insurance service revenue | 249,040 | 235,841 | | Of which: Contracts measured under the premium allocation approach | 246,620 | 233,066 | | Total insurance service expenses | (227,806) | (217,380) | | Of which: Incurred claims | (183,435) | (170,856) | 5. Net Investment Income In H1 2025, net investment income totaled RMB 14.00 billion, primarily from other investment income and interest from financial assets not at FVTPL Net Investment Income | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Other investment income | 7,901 | 4,773 | | Interest income from financial assets not at FVTPL | 6,080 | 5,713 | | Reversal of impairment losses | 19 | 265 | | Total | 14,000 | 10,751 | - Other investment income included RMB 3.341 billion in dividend income, RMB 1.008 billion in unrealized gains, and RMB 2.766 billion in realized gains[128] 6. Other Finance Costs In H1 2025, other finance costs totaled RMB 0.46 billion, mainly comprising interest on securities sold under repurchase agreements Other Finance Costs | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Interest on securities sold under repurchase agreements | 394 | 333 | | Interest on bonds payable | 39 | 168 | | Interest on lease liabilities | 20 | 24 | | Interest on investment contract settlements | 7 | 63 | | Total | 460 | 588 | 7. Other Operating Expenses In H1 2025, employee costs and commission expenses were the largest components of operating expenses Other Operating Expenses | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Employee costs | 21,062 | 21,057 | | Commission expenses | 18,719 | 19,734 | | Service fees | 6,332 | 5,620 | | Business promotion expenses | 5,555 | 5,926 | | Total other operating expenses | 1,386 | 1,038 | 8. Income Tax Expense In H1 2025, income tax expense was RMB 4.449 billion, with the company subject to a statutory tax rate of 25% and preferential rates in certain regions Income Tax Expense | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Current tax | 8,772 | 7,444 | | Deferred tax | (4,323) | (4,286) | | Total | 4,449 | 3,158 | - The company is subject to the statutory corporate income tax rate of 25% in China, with some branches in western provinces and Hainan enjoying a preferential rate of 15%[134] 9. Earnings Per Share In H1 2025, the company's basic earnings per share was RMB 1.099, which is the same as the diluted earnings per share Earnings Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net profit attributable to equity holders of the parent (RMB in millions) | 24,454 | 18,490 | | Weighted average number of ordinary shares in issue (in millions) | 22,242 | 22,242 | | Basic earnings per share (RMB) | 1.099 | 0.831 | - The company had no dilutive potential ordinary shares, so diluted earnings per share is the same as basic earnings per share[137] 10. Dividends In H1 2025, the company recognized the distribution of the 2024 final dividend amounting to RMB 7.385 billion Dividends | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | 2024 final dividend | 7,385 | - | | 2023 final dividend | - | 10,877 | - Following approval at the annual general meeting on June 27, 2025, the company declared a final dividend of RMB 0.332 per ordinary share for the year 2024[139] 11. Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents totaled RMB 16.963 billion, mainly comprising demand deposits and securities purchased under resale agreements Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Demand deposits and cash | 9,463 | 8,550 | | Securities purchased under resale agreements with original maturity of not more than 3 months | 7,497 | 10,813 | | Total | 16,963 | 19,370 | - The fair value of cash and cash equivalents approximates their carrying amounts[141] 12. Financial Investments at Amortized Cost As of June 30, 2025, financial investments at amortized cost totaled RMB 146.103 billion, primarily consisting of government and corporate bonds Financial Investments at Amortized Cost | Investment Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Government bonds | 58,928 | 44,893 | | Corporate bonds | 16,181 | 16,552 | | Financial bonds | 9,040 | 6,953 | | Long-term debt investment plans | 29,613 | 31,388 | | Trust schemes | 24,425 | 29,454 | | Net amount | 146,103 | 136,060 | 13. Financial Assets at Fair Value Through Other Comprehensive Income As of June 30, 2025, financial assets at FVOCI totaled RMB 270.848 billion, comprising both debt and equity instruments Financial Assets at FVOCI | Investment Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Debt instruments | 162,938 | 141,378 | | Equity instruments | 107,910 | 102,393 | | Total | 270,848 | 243,771 | - Equity instruments mainly include listed stocks (RMB 48.563 billion), perpetual bonds (RMB 34.704 billion), perpetual trust and debt plans (RMB 17.266 billion), and preferred stocks (RMB 7.377 billion)[143] - In H1 2025, the company disposed of FVOCI equity instruments totaling RMB 4.80 billion, with a cumulative gain of RMB 2.067 billion (net of tax) transferred to retained earnings[144] 14. Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, financial assets at FVTPL totaled RMB 127.906 billion, mainly consisting of financial bonds, mutual funds, and listed stocks Financial Assets at FVTPL | Investment Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Financial bonds | 41,943 | 46,883 | | Mutual funds | 32,612 | 33,790 | | Listed stocks | 16,753 | 9,551 | | Equity investment funds and plans | 15,396 | 14,687 | | Total | 127,906 | 120,066 | 15. Insurance Contracts As of June 30, 2025, the company's net insurance contract liabilities stood at RMB 416.368 billion Insurance and Reinsurance Contracts | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Net insurance contract liabilities | 416,368 | 400,124 | | Liability for remaining coverage | 174,246 | 175,594 | | Liability for incurred claims | 242,122 | 224,530 | | Net assets of reinsurance contracts held | 34,097 | 40,447 | 16. Term Deposits As of June 30, 2025, term deposits totaled RMB 66.998 billion, with deposits over 3 years forming the largest portion Term Deposits | Maturity | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Over 3 months to 1 year (inclusive) | 535 | 485 | | 1 to 2 years (inclusive) | 200 | 200 | | 2 to 3 years (inclusive) | 23,429 | 13,585 | | Over 3 years | 41,790 | 61,261 | | Total | 66,998 | 77,156 | 17. Investments in Associates and Joint Ventures As of June 30, 2025, the net amount of investments in associates and joint ventures was RMB 68.906 billion, with no impairment recognized for the investment in Huaxia Bank Investments in Associates and Joint Ventures | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Net investment in associates | 68,871 | 67,095 | | Net investment in joint ventures | 42 | 41 | | Total | 68,906 | 67,129 | - The investment in Huaxia Bank had a carrying amount of RMB 49.52 billion and a market value of RMB 20.275 billion; despite the market value being lower, no impairment was recognized after testing[148] 18. Investment Properties As of June 30, 2025, the carrying amount of investment properties was RMB 7.929 billion, with fair value determined by independent external valuers Investment Properties | Indicator | H1 2025 (RMB in millions) | H1 2024 (RMB in millions) | | :--- | :--- | :--- | | Balance at beginning of period | 7,234 | 7,576 | | Transfers from property and equipment and right-of-use assets | 777 | 120 | | Fair value revaluation gains | 69 | 17 | | Decrease in fair value | (151) | (86) | | Balance at end of period | 7,929 | 7,627 | - The fair value of investment properties is determined by independent external valuers using the income approach or market comparison approach and is classified as Level 3[150][151] 19. Property and Equipment In H1 2025, the company added new property and equipment assets and transferred certain assets to investment properties Property and Equipment | Indicator | H1 2025 (RMB in billions) | | :--- | :--- | | Cost of new assets | 3.91 | | Cost of new construction in progress | 0.54 | | Carrying amount of disposed assets | 1.31 | | Net gain on disposal | 0.11 | | Carrying amount transferred to investment properties | 7.77 | 20. Right-of-use Assets As of June 30, 2025, right-of-use assets included RMB 3.869 billion in prepaid land lease payments Right-of-use Assets | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Prepaid land lease payments | 3,869 | 4,085 | - In H1 2025, the company entered into new lease contracts for properties and vehicles with terms of 1 to 10 years, recognizing right-of-use assets and lease liabilities of RMB 288 million each[154] 21. Prepayments and Other Assets As of June 30, 2025, net prepayments and other assets totaled RMB 24.056 billion, mainly comprising deductible VAT and capital deposits Prepayments and Other Assets | Asset Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Deductible VAT input tax | 4,610 | 4,828 | | Capital deposits | 4,570 | 4,633 | | Co-insurance receivables | 3,738 | 4,138 | | Prepaid output tax borne by policyholders | 2,592 | 1,825 | | Intangible assets | 2,267 | 2,706 | | Deposits paid | 2,070 | 1,246 | | Net amount | 24,056 | 27,022 | - Capital deposits, equivalent to 20% of the registered capital, are required by Chinese insurance law to be placed in a bank designated by the National Financial Regulatory Administration[155] 22. Investment Contract Liabilities As of June 30, 2025, investment contract liabilities totaled RMB 1.728 billion, primarily consisting of policyholder deposits Investment Contract Liabilities | Liability Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Policyholder deposits | 1,668 | 1,671 | | Policy dividends payable | 60 | 60 | | Total | 1,728 | 1,731 | 23. Bonds Payable As of June 30, 2025, the carrying amount of bonds payable was RMB 12.188 billion, all of which are capital supplementary bonds with maturities over 5 years Bonds Payable | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Carrying amount repayable in more than 5 years | 12,188 | 20,433 | - On March 24, 2025, the company exercised its early redemption option and fully redeemed the RMB 8 billion capital supplementary bonds issued in 2020[158] 24. Accrued Expenses and Other Liabilities As of June 30, 2025, accrued expenses and other liabilities totaled RMB 57.902 billion, mainly comprising employee benefits and dividends payable Accrued Expenses and Other Liabilities | Liability Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Salaries and employee benefits payable | 22,799 | 23,051 | | Dividends payable | 7,385 | - | | Other taxes payable | 7,325 | 7,857 | | Premiums received in advance | 4,408 | 6,696 | | Co-insurance payables | 4,005 | 3,257 | | Total | 57,902 | 52,619 | 25. Issued Share Capital As of June 30, 2025, the company's total issued and fully paid share capital was RMB 22.242 billion Issued Share Capital | Share Capital Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Domestic shares | 15,343 | 15,343 | | H shares | 6,899 | 6,899 | | Total | 22,242 | 22,242 | 26. Risk Management The company faces insurance and various financial risks, with no significant changes in its risk management processes and policies compared to year-end 2024 - The company is exposed to insurance risk and various financial risks, with the main financial risks being credit risk, liquidity risk, and market risk[161] - The company's risk management processes and policies have not changed significantly compared to December 31, 2024[162] 27. Classification and Fair Value of Financial Instruments This section provides fair value information for the company's main financial assets and liabilities, categorized into three levels based on input observability - The company's financial assets mainly include cash and cash equivalents, financial investments at amortized cost, financial assets at fair value, and term deposits[163] - The company's financial liabilities mainly include securities sold under repurchase agreements, investment contract liabilities, and bonds payable[165] - Fair value measurement inputs are categorized into Level 1 (unadjusted quoted prices in active markets), Level 2 (other directly or indirectly observable inputs), and Level 3 (unobservable inputs)[166] Financial Instruments Measured at Fair Value | Item | Fair Value at June 30, 2025 (RMB in millions) | Fair Value Hierarchy | | :--- | :--- | :--- | | Financial assets at FVTPL | 127,906 | Level 1, 2, 3 | | Debt instruments at FVOCI | 162,938 | Level 1, 2 | | Equity instruments at FVOCI | 107,910 | Level 1, 2, 3 | | Total | 398,754 | - | 28. Contingent Events and Commitments The company faces routine legal proceedings and has capital and investment commitments totaling RMB 8.239 billion as of June 30, 2025 - The company is involved in legal proceedings and arbitrations in its ordinary course of business, but management believes the resulting liabilities will not have a material adverse effect on its financial condition or operating results[180] Commitments | Commitment Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Property and equipment: Contracted but not provided for | 1,178 | 835 | | Investment projects: Contracted but not provided for | 6,991 | 7,572 | | Total | 8,239 | 8,484 | 29. Related Party Transactions This section discloses significant transactions and balances with PICC Group, fellow subsidiaries, associates, and joint ventures - The company has various significant transactions with PICC Group, fellow subsidiaries, associates, and joint ventures, including dividend distributions, service fees, financial product subscriptions, and ceded premiums[182][183] - The company believes that transactions with state-owned enterprises are conducted in the ordinary course of business and that pricing policies are not affected by their state-owned status[186] Balances with Related Parties | Related Party Balance Category | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | | :--- | :--- | :--- | | Cash and cash equivalents: Associates of PICC Group | 3,015 | 2,399 | | Term deposits: Associates of PICC Group | 4,201 | 6,280 | | Amounts due from reinsurers: Associates | 1,021 | 1,056 | | Amounts due to reinsurers: Associates | 2,484 | 2,700 | 30. Post-Balance Sheet Date Events The Board of Directors approved a 2025 interim profit distribution plan to pay a cash dividend of RMB 0.24 per share, subject to shareholder approval - The Board of Directors proposes to distribute a cash dividend of RMB 0.24 per share (inclusive of tax) to all shareholders based on the total share capital of 22,242,765,303 shares as of June 30, 2025, totaling RMB 5.338 billion[189] - This profit distribution plan is subject to approval at the general meeting[189] Definitions Definitions This section provides definitions for key terms used throughout the interim report to ensure clear understanding - This section lists and defines key terms used in the interim report, such as "Board of Directors," "CBIRC," "the Company," and "Listing Rules"[190] Corporate Information Corporate Information This section provides basic information about the company, including its registered name, address, stock code, and key personnel - The company's registered name is "中国人民财产保险股份有限公司" and its English abbreviation is "PICC P&C"[193] - The company's stock code is 2328, and its H-shares are listed on The Stock Exchange of Hong Kong Limited[193] - The company's legal representative is Yu Ze, and its auditors are Ernst & Young (international) and Ernst & Young Hua Ming LLP (domestic)[193]