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众安在线(06060) - 2025 - 中期财报
2025-09-05 11:00

Management Discussion and Analysis Overview ZhongAn Online, China's first internet insurance tech company, uses an "insurance + technology" dual-engine strategy to innovate services, export tech, and lead digital banking in Hong Kong - ZhongAn Online is China's first internet insurance technology company, with a "Insurance + Technology" dual-engine strategy aiming to redefine the insurance industry8 - The company offers innovative, inclusive, and diverse insurance products and services by entering user internet lifestyle scenarios through proprietary channels and ecosystem partner platforms8 - The company productizes insurance technology systems and functional modules, exporting them to global insurance companies and industry chain clients to facilitate digital transformation8 2025 Interim Performance Review In H1 2025, total gross written premiums grew 9.3% to RMB 16.66 billion, underwriting combined ratio improved to 95.6%, and ZA Bank achieved a net profit of HKD 49 million, turning profitable H1 2025 Key Performance Indicators | Metric | H1 2025 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | | Gross Written Premiums | 16,661,251 | 9.3% | | Insurance Service Revenue | 15,041,419 | -0.3% | | Underwriting Profit | 656,398 | 109.1% | | Underwriting Combined Ratio | 95.6% | Improved by 2.3 percentage points | | Combined Loss Ratio | 54.7% | Improved by 6.0 percentage points | | Combined Expense Ratio | 40.9% | Increased by 3.7 percentage points | | Total Technology Export Revenue | 496,000 | 12.2% | | Net Loss from Technology Export | (55,990) | Loss reduced by 32.2% | | ZA Bank Net Profit (HKD) | 49,000 | Turned profitable | | ZA Bank Net Income (HKD) | 457,000 | 82.1% | - The company was again listed on Fortune's "2025 China 500 Ranking," rising 50 places to 410th9 - ZA Bank has become one of Hong Kong's most feature-rich digital banks, offering 24-hour services including deposits, loans, transfers, card spending, foreign exchange, insurance, investment, and corporate banking10 Segment Financial Overview The Group's segment results show insurance net profit grew 387.7% to RMB 673 million, technology net loss improved by 32.2%, and ZA Bank turned profitable with HKD 49 million net profit H1 2025 Segment Net Profit/(Loss) | Segment | H1 2025 Net Profit/(Loss) (RMB thousands) | H1 2024 Net Profit/(Loss) (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Insurance | 673,045 | 138,371 | 387.7% | | Technology | (55,988) | (82,602) | Improved by 32.2% | | Banking | 18,341 | (46,002) | Turned profitable | | Others | 4,977 | 32,498 | -84.7% | | Total | 667,568 | 55,467 | 1103.5% | - The insurance segment's combined ratio was 95.6%, an improvement of 2.3 percentage points year-on-year, with underwriting profit reaching RMB 627 million, an increase of RMB 346 million year-on-year16 - ZA Bank's net interest margin increased to 2.38%, and its cost-to-income ratio significantly improved to 67% (119% in the same period last year)16 Our Ecosystem Layout The Group's total gross written premiums grew 9.3% in H1 2025, driven by strong growth in health and auto ecosystems, stable consumer finance, and innovative digital lifestyle businesses H1 2025 Gross Written Premiums by Ecosystem | Ecosystem | H1 2025 Gross Written Premiums (RMB thousands) | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Health | 6,274,783 | 37.7% | 38.3% | | Digital Lifestyle | 6,209,428 | 37.3% | -16.3% | | Consumer Finance | 2,698,781 | 16.2% | 23.6% | | Auto | 1,478,259 | 8.8% | 34.2% | | Total | 16,661,251 | 100% | 9.3% | Health Ecosystem Health ecosystem gross written premiums grew 38.3% to RMB 6.27 billion, with insurance service revenue up 17.8%, and combined ratio improved to 92.9% due to AI-driven efficiency H1 2025 Health Ecosystem Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | 6,274,783 thousands | 4,538,314 thousands | +38.3% | | Insurance Service Revenue | 5,733,148 thousands | 4,867,244 thousands | +17.8% | | Combined Ratio | 92.9% | 95.7% | Improved by 2.8 percentage points | | Combined Loss Ratio | 42.5% | 38.1% | Increased by 4.4 percentage points | | Combined Expense Ratio | 50.4% | 57.6% | Decreased by 7.2 percentage points | - The "Zunxiang e-sheng" series generated approximately RMB 4.25 billion in gross written premiums, with an average user age of 39, having undergone 25 iterations19 - The "Zhongminbao" series products achieved approximately RMB 1.03 billion in gross written premiums, a 638.8% year-on-year increase, covering non-standard body user groups19 Digital Lifestyle Ecosystem Digital lifestyle ecosystem gross written premiums were RMB 6.21 billion, with innovative businesses growing 40.0% to RMB 2.49 billion, and pet insurance leading the market with over 51.3% growth H1 2025 Digital Lifestyle Ecosystem Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | 6,209,428 thousands | 7,414,475 thousands | -16.3% | | Insurance Service Revenue | 5,791,048 thousands | 7,078,130 thousands | -18.2% | | Combined Ratio | 99.9% | 99.9% | Flat | | Combined Loss Ratio | 62.9% | 71.7% | Improved by 8.8 percentage points | | Combined Expense Ratio | 37.0% | 28.2% | Increased by 8.8 percentage points | - Gross written premiums from innovative businesses reached RMB 2.49 billion, accounting for 40.1%, a 40.0% year-on-year increase23 - Pet insurance gross written premiums approached RMB 563 million, growing over 51.3% year-on-year, serving over 1.11 million pet owners23 - Gross written premiums for the low-altitude economy grew over 20%, cumulatively serving over one million drone owners25 Consumer Finance Ecosystem Consumer finance ecosystem insurance service revenue rose 6.7% to RMB 2.43 billion, with outstanding loan balance up 14.6% to RMB 27.73 billion, and combined ratio improved to 94.0% H1 2025 Consumer Finance Ecosystem Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | 2,698,781 thousands | 2,183,636 thousands | +23.6% | | Insurance Service Revenue | 2,432,634 thousands | 2,279,677 thousands | +6.7% | | Combined Ratio | 94.0% | 99.1% | Improved by 5.1 percentage points | | Combined Loss Ratio | 59.9% | 73.8% | Improved by 13.9 percentage points | | Combined Expense Ratio | 34.1% | 25.3% | Increased by 8.8 percentage points | - The outstanding loan balance was RMB 27.73 billion, an increase of 14.6% from the end of last year33 - The average term of underlying assets is approximately 10 months, with an average loan amount of approximately RMB 7,70032 Auto Ecosystem Auto ecosystem gross written premiums grew 34.2% to RMB 1.48 billion, with insurance service revenue up 25.7%, and combined ratio improved to 91.2% due to better business quality H1 2025 Auto Ecosystem Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | 1,478,259 thousands | 1,101,927 thousands | +34.2% | | Insurance Service Revenue | 1,084,589 thousands | 862,866 thousands | +25.7% | | Combined Ratio | 91.2% | 94.2% | Improved by 3 percentage points | | Combined Loss Ratio | 65.1% | 66.7% | Improved by 1.6 percentage points | | Combined Expense Ratio | 26.1% | 27.5% | Decreased by 1.4 percentage points | - Gross written premiums for new energy vehicle insurance grew approximately 125.4% year-on-year, now accounting for over 18% of the company's total auto insurance premiums29 - The company obtained independent operating qualifications for compulsory traffic accident liability insurance in Shanghai and Zhejiang, and achieved independent operation of commercial auto insurance in Shanghai28 Brand Building and Proprietary Channels In H1 2025, proprietary channels' gross written premiums grew 16.9% to RMB 3.70 billion, increasing their share to 22.2%, with customer renewal rate at 89.7% and average policies per paying user at 1.7 - Proprietary channels achieved RMB 3.70 billion in gross written premiums, increasing their share of total premiums to 22.2%, a 16.9% year-on-year increase35 - Renewal premiums were RMB 1.03 billion, with an average premium per policy of RMB 525, and a customer renewal rate of 89.7%35 - The average number of policies per paying user increased to 1.7, indicating enhanced user loyalty and cross-selling potential35 Artificial Intelligence The company invested RMB 398 million in R&D in H1 2025, integrating AI across the insurance value chain, achieving 99% underwriting automation and over 40% higher AI customer service efficiency - R&D investment reached RMB 398 million in H1 202536 - The cloud-based insurance core system "Wujieshan" issued 6.70 billion policies in H1, achieving an underwriting automation rate of 99%36 - The self-developed AI middleware "Lingxi Platform" accumulated 450 million robot calls in the production environment in H1, with AI customer service efficiency significantly exceeding human customer service by over 40%3638 Technology Export The Group expanded its insurance technology export through ZhongAn Tech, ZhongAn Xinke, and Peak3, focusing on AI product commercialization domestically and international market expansion, with ZA Bank turning profitable - The technology export business segment achieved total technology export revenue of RMB 496 million, a 12.2% year-on-year increase12 - Domestic technology export business is conducted through ZhongAn Tech and ZhongAn Xinke, while international technology export business is conducted through Peak340 Domestic Technology Export Domestic technology export focused on AI product R&D and commercialization, successfully implementing intelligent agent platforms and expanding AI capabilities to cross-industry applications like consumer finance - The company continued to drive AI product R&D in H1 2025, achieving iteration and sales of intelligent agent platforms, smart outbound calling systems, and industry-agnostic solutions41 - Commercial application of AI products successfully landed multiple projects, including core intelligent agents for agent sales assistance and online/tele-sales seat assistance in collaboration with several insurance companies41 - AI capabilities successfully achieved "cross-domain" application, exported to areas including consumer finance, demonstrating cross-industry versatility41 International Business International business, including Peak3 and ZA Bank, saw Peak3 update its Graphene platform and ZA Bank achieve a net profit of HKD 49 million, becoming Asia's first licensed bank for crypto trading - Peak3 completed a major update to its Graphene core platform, expanding its business scope to commercial property & casualty insurance and group medical insurance, and releasing several new AI features43 - Peak3 initiated the construction of a new technology center in Madrid to support its European growth plans and future expansion into Latin America44 - ZA Bank achieved a historic turnaround to profitability in H1 2025, with a net profit of HKD 49 million and net income of approximately HKD 457 million, a 82.1% year-on-year increase46 - ZA Bank became Asia's first licensed bank to offer cryptocurrency trading services to Hong Kong retail investors, with Invest client assets growing 125.3% year-on-year47 Investment Business The Group's domestic insurance fund investment assets totaled RMB 37.07 billion, with fixed-income investments accounting for 72.4%, and total investment income growing 3.1% to RMB 639 million in H1 2025 H1 2025 Investment Performance | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Investment Income | 639 | 620 | 3.1% | | Total Investment Yield (Annualized) | 3.3% | 3.3% | Flat | | Net Investment Yield (Annualized) | 2.1% | 2.3% | -0.2 percentage points | - Total domestic insurance fund investment assets amounted to approximately RMB 37.07 billion50 Domestic Insurance Fund Asset Management As of June 30, 2025, domestic insurance fund investment assets totaled RMB 37.07 billion, with fixed-income investments at 72.4% and stocks/equity funds at 9.7%, reflecting a prudent investment strategy Investment Assets Composition as of June 30, 2025 | Investment Type | Balance as of June 30, 2025 (RMB billions) | Share of Total (%) | | :--- | :--- | :--- | | Cash, deposits with banks and other financial institutions | 0.801 | 2.2% | | Fixed-income investments | 26.830 | 72.4% | | Stocks and equity funds | 3.616 | 9.7% | | Equity in unlisted companies | 5.822 | 15.7% | | Total investment assets | 37.069 | 100.0% | - Among the invested bonds, 98.9% received external credit ratings of AA or above, with 82.1% rated AAA51 - The proportion of secondary market stocks and equity funds increased by 3.7 percentage points to 9.7% as of June 30, 2025, compared to the end of last year52 Insurance Fund Investment Portfolio (by Investment Type) As of June 30, 2025, the insurance fund investment portfolio comprised 72.4% fixed-income and 25.4% equity/equity funds, showing a shift from fixed-income to equity compared to year-end 2024 Insurance Fund Investment Portfolio Comparison | Investment Type | Share as of June 30, 2025 (%) | Share as of Dec 31, 2024 (%) | | :--- | :--- | :--- | | Cash, deposits with banks and other financial institutions | 2.2% | 2.7% | | Fixed-income investments | 72.4% | 76.6% | | Equity and equity funds | 25.4% | 20.7% | | Total investment assets | 37,068,745 thousands | 39,775,659 thousands | Investment Income Total investment income in H1 2025 was RMB 639 million, a 3.1% year-on-year increase, with RMB 470 million from cash and fixed-income, and RMB 169 million from equity and equity funds H1 2025 Investment Income Breakdown | Source of Investment Income | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | From cash and fixed-income investments | 470 | 721 | | From equity and equity funds | 169 | (101) | | Total Investment Income | 639 | 620 | | Total Investment Yield (Annualized) | 3.3% | 3.3% | | Net Investment Yield (Annualized) | 2.1% | 2.3% | Outlook The company will continue its 'insurance + technology' dual-engine strategy, focusing on quality growth, enhancing brand, applying tech to insurance processes, and exporting fintech capabilities domestically and internationally - Continue to adhere to the "Insurance + Technology" dual-engine strategy, pursuing "quality and sustainable growth"55 - Apply technological development and innovation across the entire insurance process, continuously optimizing underwriting efficiency and user experience55 - Continue to export insurance technology capabilities to domestic and international markets, deeply cultivate the Hong Kong financial market, and drive fintech innovation with technology55 Financial Review In H1 2025, the company's net profit surged 1,103.5% to RMB 668 million, driven by improved underwriting, stable investment income, banking turnaround, and reduced tech losses, enhancing asset and equity returns H1 2025 Key Financial Performance | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 16,183,150 | 16,035,401 | 0.9% | | Net Profit | 667,568 | 55,467 | 1103.5% | | Total Comprehensive Income | 623,473 | 163,231 | 281.3% | | Basic Earnings Per Share (RMB) | 0.45 | 0.04 | 1025.0% | | Diluted Earnings Per Share (RMB) | 0.45 | 0.04 | 1025.0% | H1 2025 Financial Ratios | Financial Ratios | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Return on Assets | 1.5% | 0.1% | | Return on Equity | 3.1% | 0.3% | | Gearing Ratio | 50.4% | 53.0% | | Net Investment Yield (Annualized) | 2.0% | 1.8% | | Total Investment Yield (Annualized) | 3.4% | 2.8% | Domestic P&C Underwriting Business In H1 2025, domestic P&C underwriting profit grew 109.1% to RMB 656 million, with combined ratio improving to 95.6%, despite a slight decrease in insurance service revenue, driven by growth in health and auto insurance H1 2025 Domestic P&C Underwriting Performance | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 15,041,419 | 15,087,916 | -0.3% | | Insurance Service Expenses | (14,362,546) | (14,767,552) | -2.7% | | Net Income from Reinsurance Contracts Held | 2,575 | 26,122 | -90.1% | | Underwriting Profit | 656,398 | 313,865 | 109.1% | | Underwriting Combined Ratio | 95.6% | 97.9% | Improved by 2.3 percentage points | Insurance Service Revenue The company's insurance service revenue in H1 2025 was RMB 15.04 billion, a 0.3% decrease, with health, auto, home property, and credit insurance showing significant growth, while return freight insurance declined H1 2025 Insurance Service Revenue by Product Category | Insurance Product Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Health Insurance | 5,998,100 | 5,002,211 | 19.9% | | Guarantee Insurance | 1,846,936 | 2,016,139 | -8.4% | | Auto Insurance | 1,084,589 | 862,866 | 25.7% | | Accident Insurance | 908,199 | 1,022,186 | -11.2% | | Home Property Insurance | 736,959 | 429,481 | 71.6% | | Credit Insurance | 682,607 | 423,729 | 61.1% | | Liability Insurance | 578,414 | 511,969 | 13.0% | | Cargo Insurance | 77,056 | 51,957 | 48.3% | | Others (mainly Return Freight Insurance) | 3,128,559 | 4,767,378 | -34.4% | | Return Freight Insurance | 2,420,191 | 3,994,967 | -39.4% | | Total | 15,041,419 | 15,087,916 | -0.3% | Insurance Service Expenses The company's insurance service expenses decreased by 2.7% to RMB 14.36 billion in H1 2025, primarily due to changes in incurred claims and other directly attributable costs - Insurance service expenses decreased by approximately 2.7% from approximately RMB 14.77 billion in H1 2024 to approximately RMB 14.36 billion in H1 202562 Net Income/Loss from Reinsurance Contracts Held Net income from reinsurance contracts held decreased by 90.1% to RMB 2.58 million in H1 2025, reflecting a reduction in ceded premiums less recovered insurance service expenses - Net income from reinsurance contracts held decreased by approximately 90.1% from approximately RMB 26.12 million in H1 2024 to approximately RMB 2.58 million in H1 202563 Insurance Finance Income/Loss Underwriting finance loss decreased from RMB 33 million in H1 2024 to RMB 25 million in H1 2025, while ceded reinsurance finance income also saw a significant reduction - Underwriting finance loss decreased from approximately RMB 33 million in H1 2024 to approximately RMB 25 million in H1 202564 - Ceded reinsurance finance income decreased from approximately RMB 0.45 million in H1 2024 to approximately RMB 0.01 million in H1 202564 Investment Business Details The Group's investment assets totaled RMB 38.36 billion as of June 30, 2025, with cash, bank deposits, and fixed-income investments comprising 74.3%, and net investment income significantly improving to RMB 698 million - As of June 30, 2025, total investment assets amounted to approximately RMB 38.36 billion, representing approximately 88.3% of total assets67 - As of June 30, 2025, cash, deposits with banks and other financial institutions, and fixed-income investments collectively accounted for approximately 74.3% of total investment assets67 Composition of Investment Assets As of June 30, 2025, fixed-income investments constituted 71.4% of total investment assets, while equity and equity funds accounted for 25.7%, indicating a shift from fixed-income to equity compared to year-end 2024 Investment Assets Composition | Investment Type | Balance as of June 30, 2025 (RMB thousands) | Share of Total (%) | Balance as of Dec 31, 2024 (RMB thousands) | Share of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Cash, deposits with banks and other financial institutions | 1,120,689 | 2.9% | 1,466,741 | 3.6% | | Fixed-income investments | 27,381,090 | 71.4% | 30,945,296 | 75.4% | | Equity and equity funds | 9,855,272 | 25.7% | 8,595,112 | 21.0% | | Total investment assets | 38,357,051 | 100.0% | 41,007,150 | 100.0% | Cash, Deposits with Banks and Other Financial Institutions As of June 30, 2025, cash, deposits with banks, and other financial institutions amounted to RMB 1.12 billion, a decrease from RMB 1.47 billion at year-end 2024 - As of June 30, 2025, cash, deposits with banks and other financial institutions amounted to approximately RMB 1.12 billion, a decrease from approximately RMB 1.47 billion as of December 31, 202468 Bonds As of June 30, 2025, bond investments decreased to RMB 19.04 billion from RMB 21.60 billion at year-end 2024, with 98.9% of bonds rated AA or above externally - As of June 30, 2025, bond investments amounted to approximately RMB 19.04 billion, a decrease from approximately RMB 21.60 billion as of December 31, 202469 - 98.9% of the company's bond holdings received external ratings of AA (domestic) or above, or BBB- (international) or above69 Stocks and Equity Funds As of June 30, 2025, investments in stocks and equity funds increased to RMB 3.63 billion from RMB 2.41 billion at year-end 2024, reflecting a prudent and dynamic adjustment strategy - As of June 30, 2025, investments in stocks and equity funds amounted to approximately RMB 3.63 billion, an increase from approximately RMB 2.41 billion as of December 31, 202470 Net Investment Income Net investment income significantly improved to RMB 698 million in H1 2025 from a loss of RMB 171 million in H1 2024, primarily due to a turnaround from realized losses to gains H1 2025 Net Investment Income | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income | 323,777 | 334,860 | -3.3% | | Dividend income | 84,968 | 103,518 | -17.9% | | Net realized (losses)/gains | 288,775 | (608,894) | -147.4% | | Net investment income | 697,520 | (170,516) | -509.1% | Net Fair Value Changes in Profit or Loss In H1 2025, a net loss of RMB 28 million from fair value changes was recorded, a significant shift from a net gain of RMB 789 million in H1 2024, mainly due to debt investment fair value changes - In H1 2025, a net loss from fair value changes of RMB 28 million was recorded, compared to a net gain of approximately RMB 789 million in H1 202473 Overall Performance In H1 2025, the Group's total revenue increased 0.9% to RMB 16.18 billion, with net profit surging 1,103.5% to RMB 668 million, reflecting significant overall performance improvement H1 2025 Overall Financial Performance | Metric | H1 2025 (RMB billions) | H1 2024 (RMB billions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 16.183 | 16.035 | 0.9% | | Profit Before Tax | 0.740 | 0.039 | 1797.4% | | Net Profit | 0.668 | 0.055 | 1103.5% | - Income tax expense was approximately RMB 73 million, compared to an income tax credit of approximately RMB 16 million in the same period last year76 Cash Flow In H1 2025, net cash from operating activities was RMB 2.14 billion, from investing activities RMB 1.95 billion, while financing activities used RMB 4.47 billion, primarily due to bond repayments H1 2025 Cash Flow Summary | Cash Flow Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 2,143,410 | 850,742 | | Net cash generated from investing activities | 1,952,310 | 948,532 | | Net cash used in financing activities | (4,468,767) | (1,453,127) | | Net increase/(decrease) in cash and cash equivalents | (327,838) | 346,577 | - Net cash used in financing activities was primarily due to cash outflow of approximately RMB 4.28 billion from bond repayments79 Debts As of June 30, 2025, the company's outstanding bonds totaled USD 360.1 million, with ZhongAn Tech holding RMB 60 million and RMB 8 million in liquid loans, and no other significant debts - As of June 30, 2025, the company's outstanding bonds payable principal balance was USD 360.1 million80 - As of June 30, 2025, ZhongAn Tech had outstanding loan principal balances of RMB 60 million from China Merchants Bank and RMB 8 million from China CITIC Bank80 Material Investments For the six months ended June 30, 2025, the Group held no material investments valued at 5% or more of its total assets - For the six months ended June 30, 2025, the Group held no material investments81 Material Acquisitions and Disposals For the six months ended June 30, 2025, the Group made no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group made no material acquisitions or disposals of subsidiaries, associates, or joint ventures82 Future Plans for Material Investments and Capital Assets As of June 30, 2025, the Group had no future plans for material investments or capital assets - As of June 30, 2025, the Group had no future plans for material investments and capital assets83 Asset Pledges As of June 30, 2025, the Group had not pledged any assets, except as disclosed in this interim report - As of June 30, 2025, the Group had not pledged any assets84 Gearing Ratio As of June 30, 2025, the Group's gearing ratio was approximately 50.4%, a 3.4 percentage point decrease from approximately 53.8% as of December 31, 2024 - As of June 30, 2025, the gearing ratio was approximately 50.4%, a 3.4 percentage point decrease from approximately 53.8% as of December 31, 202485 Foreign Exchange Risk Operating primarily in China with RMB as its functional currency, the Group faces foreign exchange risk from foreign currency-denominated assets and liabilities of certain joint ventures - The Group primarily operates in China, with RMB as its functional and financial reporting currency86 - The business of some subsidiaries of the Group's joint ventures is denominated in foreign currencies (including HKD, USD, JPY, SGD, EUR, etc.), exposing the Group to foreign exchange risk86 Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities87 Off-Balance Sheet Commitments and Arrangements As of June 30, 2025, the Group had not entered into any off-balance sheet arrangements - As of June 30, 2025, the Group had not entered into any off-balance sheet arrangements88 Events After Reporting Period After the reporting period, the company completed a placement of 215 million new H shares on July 4, 2025, raising approximately HKD 3.896 billion for capital and business development - On July 4, 2025, the company completed the placement of 215 million new H shares at a price of HKD 18.25 per H share89 - The net proceeds from the placement totaled approximately HKD 3,895.8 million89 - The net proceeds are intended to supplement the Group's capital to support business development (60% for insurance underwriting and asset management, 30% for fintech innovation, and 10% for general corporate purposes)89 Disclosure of Interests Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations As of June 30, 2025, directors, supervisors, and chief executives held interests in the company's shares, with Mr. Ou Yaping holding 81 million H shares through controlled corporations, representing 5.51% of total issued share capital Interests of Directors in Shares as of June 30, 2025 | Name of Director | Share Class | Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | | Ou Yaping | H Shares | Interest in controlled corporation | 81,000,000 (Long Position) | 5.51% | Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares of the Company As of June 30, 2025, substantial shareholders held significant interests in the company's shares, including Ping An Insurance (10.21%), Shenzhen Jiadexin Investment (9.09%), Tencent (7.72%), and Ant Group (7.37%) Interests of Substantial Shareholders as of June 30, 2025 | Name of Shareholder/Entity | Share Class | Nature of Interest | Number of Shares (L/S) | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | | Ping An Insurance | H Shares | Beneficial Interest | 150,000,000 (L) | 10.21% | | Shenzhen Jiadexin Investment Co., Ltd. | H Shares | Beneficial Interest | 133,615,251 (L) | 9.09% | | Tencent Computer System | H Shares | Beneficial Interest | 113,443,012 (L) | 7.72% | | Ant Group | H Shares | Beneficial Interest | 108,368,552 (L) | 7.37% | | Shenzhen Rixun Network Technology Co., Ltd. | H Shares | Beneficial Interest | 81,000,000 (L) | 5.51% | | UBS Group AG | H Shares | Interest in controlled corporation | 106,918,423 (L) / 51,786,628 (S) | 7.27% (L) / 3.52% (S) | | Morgan Stanley | H Shares | Interest in controlled corporation | 80,452,089 (L) / 35,167,972 (S) | 5.47% (L) / 2.39% (S) | | Shanghai Yuanqiang Investment Co., Ltd. | Domestic Shares | Beneficial Interest | 50,000,000 (L) | 3.40% | Other Information Employees and Remuneration Policy As of June 30, 2025, the Group had 2,193 full-time employees, with total employee benefit costs of RMB 738 million in H1 2025, based on industry practices and performance - As of June 30, 2025, the Group had 2,193 full-time employees96 - Total employee benefit costs (including directors' and supervisors' remuneration) incurred by the Group for the six months ended June 30, 2025, amounted to approximately RMB 738 million96 Corporate Governance The company is committed to maintaining strict corporate governance, adhering to listing rules and its articles of association, and complying with the Corporate Governance Code principles and code provisions - The company is committed to maintaining and implementing strict corporate governance, having adopted the principles and code provisions of the Corporate Governance Code as the benchmark for its corporate governance practices97 Compliance with the Model Code for Securities Transactions by Directors The company adopted the Model Code for Securities Transactions by Directors, and all directors confirmed compliance throughout the reporting period Review by Audit and Consumer Rights Protection Committee The Audit and Consumer Rights Protection Committee reviewed the Group's H1 2025 interim report and unaudited interim results, discussing accounting policies and internal controls with management and external auditors - The Audit and Consumer Rights Protection Committee has reviewed the Group's interim report and unaudited interim results for the six months ended June 30, 202599 - The committee's main responsibilities include overseeing risk management, strengthening internal control and compliance management, reviewing financial reports, supervising financial reporting procedures, and protecting consumer rights99 Other Board Committees In addition to the Audit and Consumer Rights Protection Committee, the company has established the Nomination and Remuneration Management Committee, Strategy and Investment Decision Committee, and Risk Management and Connected Transactions Control Committee - The company has established the Nomination and Remuneration Management Committee, the Strategy and Investment Decision Committee, and the Risk Management and Connected Transactions Control Committee100 Changes in Directors, Supervisors and Chief Executive Ms. Zheng Hui'en was re-designated as Chairperson of the Audit Committee of the Council of The Hong Kong Polytechnic University on March 1, 2025, with no other material changes during the reporting period - Ms. Zheng Hui'en was re-designated from a member to the Chairperson of the Audit Committee of the Council of The Hong Kong Polytechnic University on March 1, 2025101 Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period, and no treasury shares were held as of June 30, 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period102 Use of Proceeds The company issued USD 1 billion in notes in 2020, with approximately RMB 6.79 billion (USD 989 million) used for working capital and general corporate purposes as of June 30, 2025, and USD 360.1 million in outstanding bonds - The company issued 2025 notes, 2026 notes, and additional notes, with a total principal amount of USD 1 billion103104 - As of June 30, 2025, approximately RMB 6.79 billion (equivalent to approximately USD 989 million) had been used for working capital and general corporate purposes104 - The outstanding principal balance of bonds payable was USD 360.1 million104 Litigation As of June 30, 2025, the company was not involved in any material litigation or arbitration, and directors were unaware of any pending or potential material claims - As of June 30, 2025, the company was not involved in any material litigation or arbitration105 Interim Dividend To retain resources for business development, the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (H1 2024: nil) - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025106 Review Report on Interim Financial Information PricewaterhouseCoopers reviewed ZhongAn Online's H1 2025 interim financial information, concluding no material issues in preparation according to HKAS 34, without expressing an audit opinion - PricewaterhouseCoopers has reviewed the Group's interim financial information for the six months ended June 30, 2025108 - The scope of the review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and therefore no audit opinion is expressed109 - Review conclusion: Nothing has come to the auditor's 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 "Interim Financial Reporting"110 Condensed Consolidated Interim Statement of Profit or Loss In H1 2025, the Group's net profit surged to RMB 668 million from RMB 55 million year-on-year, driven by improved insurance service results and a turnaround in net investment income, despite a loss from fair value changes H1 2025 Condensed Consolidated Interim Statement of Profit or Loss | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Insurance Service Revenue | 15,041,419 | 15,087,916 | | Insurance Service Results | 681,448 | 346,486 | | Net Investment Income | 697,520 | (170,516) | | Net Fair Value Changes in Profit or Loss | (28,056) | 789,161 | | Profit Before Tax | 740,244 | 39,145 | | Net Profit | 667,568 | 55,467 | | Basic Earnings Per Share (RMB) | 0.45 | 0.04 | Condensed Consolidated Interim Statement of Comprehensive Income In H1 2025, total comprehensive income significantly increased to RMB 623 million from RMB 163 million year-on-year, driven by higher net profit, despite a shift to loss in fair value changes of debt instruments in other comprehensive income H1 2025 Condensed Consolidated Interim Statement of Comprehensive Income | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Profit | 667,568 | 55,467 | | Other Comprehensive Income (after tax) | (44,095) | 107,764 | | Total Comprehensive Income | 623,473 | 163,231 | - Fair value changes of debt instruments at fair value through other comprehensive income shifted from a gain of RMB 81.02 million in H1 2024 to a loss of RMB 38.33 million in H1 2025114 Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, total assets decreased to RMB 43.45 billion from RMB 45.28 billion at year-end 2024, while total equity increased to RMB 21.56 billion and total liabilities decreased to RMB 21.89 billion, optimizing the capital structure Condensed Consolidated Interim Statement of Financial Position | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 43,448,479 | 45,284,579 | | Total Equity | 21,559,177 | 20,926,401 | | Total Liabilities | 21,889,302 | 24,358,178 | | Financial assets at fair value through profit or loss | 19,947,600 | 20,706,284 | | Debt instruments at fair value through other comprehensive income | 8,920,381 | 10,528,854 | | Bonds payable | 2,604,974 | 6,912,317 | - Bonds payable significantly decreased from approximately RMB 6.91 billion at year-end 2024 to approximately RMB 2.61 billion as of June 30, 2025115 Condensed Consolidated Interim Statement of Changes in Equity As of June 30, 2025, total equity increased to RMB 21.56 billion, driven by a net profit of RMB 668 million, partially offset by a RMB 47.55 million decrease in financial asset revaluation reserve within other comprehensive income Condensed Consolidated Interim Statement of Changes in Equity | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Equity | 21,559,177 | 20,926,401 | | Retained Earnings | 3,014,749 | 2,460,726 | | Total Comprehensive Income | 623,473 | 163,231 (H1 2024) | - In H1 2025, total comprehensive income was RMB 623 million, attributable to equity holders of the parent company116 Condensed Consolidated Interim Statement of Cash Flows In H1 2025, net cash from operating activities was RMB 2.14 billion, from investing activities RMB 1.95 billion, while financing activities used RMB 4.47 billion, resulting in a net decrease of RMB 373 million in cash and cash equivalents H1 2025 Condensed Consolidated Interim Statement of Cash Flows | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 2,143,410 | 850,742 | | Net cash generated from investing activities | 1,952,310 | 948,532 | | Net cash used in financing activities | (4,468,767) | (1,453,127) | | Net (decrease)/increase in cash and cash equivalents | (372,838) | 346,577 | | Cash and cash equivalents at end of period | 1,634,696 | 2,022,907 | - Net cash used in financing activities was primarily due to bond payments of approximately RMB 4.28 billion117 Notes to the Condensed Consolidated Interim Financial Information General Information ZhongAn Online Property and Casualty Insurance Co., Ltd., established on October 9, 2013, focuses on fintech, internet insurance, and IT services, and was listed on the HKEX Main Board on September 28, 2017 - The company was established on October 9, 2013, primarily engaged in fintech business, providing internet insurance services and insurance information technology services118119 - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on September 28, 2017, with stock code 6060120 Basis of Preparation This condensed consolidated interim financial information is prepared in accordance with HKAS 34 and HKEX Listing Rules, with accounting policies consistent with the 2024 annual financial statements, except for new amendments and interpretations - This condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited121 Significant Accounting Policies The Group applied HKFRS 21 amendments in this interim period without material impact and is currently assessing the effects of adopting HKFRS 18 and amendments to HKFRS 9 and HKFRS 7 - In this interim period, the Group has applied the amendments to HKFRS 21 "Lack of Exchangeability," which did not have a material impact on this condensed consolidated interim financial information122 - The Group is currently assessing the impact of adopting HKFRS 18 and amendments to HKFRS 9 and HKFRS 7123 Segment Information The Group's operating segments include insurance, technology, banking, and others, with insurance net profit at RMB 673 million, technology net loss at RMB 56 million, and banking net profit at RMB 18 million in H1 2025 - The Group's operating segments include insurance, technology, banking, and others125 H1 2025 Segment Net Profit/(Loss) | Segment | H1 2025 Net Profit/(Loss) (RMB thousands) | H1 2024 Net Profit/(Loss) (RMB thousands) | | :--- | :--- | :--- | | Insurance | 673,045 | 138,371 | | Technology | (55,988) | (82,602) | | Banking | 18,341 | (46,002) | | Others | 4,977 | 32,498 | | Total | 667,568 | 55,467 | Segment Assets | Segment | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Insurance | 41,749,113 | 43,726,537 | | Technology | 1,783,352 | 1,822,043 | | Banking | 9,756,757 | 8,982,043 | | Others | 4,549,711 | 4,655,248 | | Total | 43,448,479 | 45,284,579 | Subsidiaries As of June 30, 2025, the company owned 13 wholly-owned subsidiaries, including ZhongAn Tech and ZhongAn Insurance Brokerage, engaged in tech development, insurance brokerage, and healthcare services, and consolidated 5 structured entities - As of June 30, 2025, the company owned 13 wholly-owned subsidiaries, including ZhongAn Tech, ZhongAn Insurance Brokerage, and Shanghai Lianmo130 - Consolidated structured entities include 5 asset management products or equity investment entities such as ZhongAn Taikang Asset Management Plan and ZhongAn Lexiang No. 1 Asset Management Plan131 Insurance Service Results In H1 2025, insurance service revenue was RMB 15.04 billion, with expenses at RMB 14.36 billion, resulting in insurance service results of RMB 681 million, a significant increase from RMB 346 million year-on-year H1 2025 Insurance Service Results | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Total insurance service revenue | 15,041,419 | 15,087,916 | | Total insurance service expenses | (14,362,546) | (14,767,552) | | Total net income from reinsurance contracts held | 2,575 | 26,122 | | Insurance service results | 681,448 | 346,486 | Net Investment Income Net investment income significantly improved to RMB 698 million in H1 2025 from a loss of RMB 171 million in H1 2024, primarily due to a shift from realized losses to gains, despite lower interest and dividend income H1 2025 Net Investment Income | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income | 323,777 | 334,860 | | Dividend income | 84,968 | 103,518 | | Net realized gains/(losses) | 288,775 | (608,894) | | Net investment income | 697,520 | (170,516) | - Net realized gains shifted from a loss of RMB 609 million in H1 2024 to a gain of RMB 289 million in H1 2025136 Net Fair Value Changes in Profit or Loss In H1 2025, a net loss of RMB 28 million from fair value changes was recorded, a significant shift from a net gain of RMB 789 million in H1 2024, mainly due to debt investment fair value changes H1 2025 Net Fair Value Changes in Profit or Loss | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | (28,056) | 789,161 | Other Income Other income increased to RMB 479 million in H1 2025 from RMB 407 million in H1 2024, primarily driven by a significant increase in government grants H1 2025 Other Income | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Service income | 333,443 | 399,558 | | Government grants | 144,183 | 3,685 | | Others | 1,264 | 3,781 | | Total | 478,890 | 407,024 | - Government grants significantly increased from RMB 3.69 million in H1 2024 to RMB 144.18 million in H1 2025138139 Other Operating Expenses Other operating expenses slightly decreased to RMB 512 million in H1 2025 from RMB 520 million in H1 2024, despite increases in promotion, marketing, handling fees, commissions, consulting, and technology fees H1 2025 Other Operating Expenses | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Promotion and marketing expenses | 2,305,438 | 1,879,834 | | Handling fees and commissions | 2,172,805 | 1,601,203 | | Consulting and technology fees | 1,570,692 | 1,357,914 | | Employee benefit expenses | 601,776 | 621,202 | | Depreciation and amortization | 150,554 | 141,403 | | Others | 457,048 | 412,468 | | Less: Expenses attributable to insurance acquisition cash flows and other directly attributable costs | (6,746,660) | (5,494,192) | | Total | 511,653 | 519,832 | Other Expenses Other expenses decreased to RMB 316 million in H1 2025 from RMB 421 million in H1 2024, primarily due to lower costs and expenses for providing services H1 2025 Other Expenses | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of providing services | 270,232 | 343,302 | | Expenses of providing services | 31,904 | 59,719 | | Others | 14,236 | 17,557 | | Total | 316,372 | 420,578 | Income Tax Income tax expense was RMB 73 million in H1 2025, a shift from an income tax credit of RMB 16 million in H1 2024, influenced by current and deferred tax impacts H1 2025 Income Tax | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | 249,652 | (10,682) | | Deferred income tax | (176,976) | (5,640) | | Total | 72,676 | (16,322) | - The income tax reconciliation table shows that tax calculated at the applicable rate was RMB 178 million, but due to factors such as non-taxable income and R&D expense super deduction, the actual income tax was RMB 73 million143 Earnings Per Share Basic and diluted earnings per share both significantly increased to RMB 0.45 in H1 2025 from RMB 0.04 in H1 2024, with no dilutive potential shares during the period H1 2025 Earnings Per Share | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net profit attributable to equity holders of the parent company for the period (RMB thousands) | 667,568 | 55,467 | | Weighted average number of ordinary shares in issue (thousands of shares) | 1,469,813 | 1,469,813 | | Basic earnings per share (RMB) | 0.45 | 0.04 | | Diluted earnings per share (RMB) | 0.45 | 0.04 | Other Comprehensive Income Other comprehensive income was a tax-effected loss of RMB 44.10 million in H1 2025, a shift from a gain of RMB 108 million in H1 2024, primarily due to fair value changes in debt instruments H1 2025 Other Comprehensive Income | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value changes of debt instruments at fair value through other comprehensive income | (38,332) | 81,016 | | Fair value changes of equity instruments at fair value through other comprehensive income | (5,501) | (6,228) | | Share of other comprehensive income of associates and joint ventures accounted for using the equity method | 3,456 | 34,691 | | Other comprehensive income after tax | (44,095) | 107,764 | Cash, Deposits with Banks and Other Financial Institutions As of June 30, 2025, cash, deposits with banks, and other financial institutions decreased to RMB 1.12 billion from RMB 1.47 billion at year-end 2024, mainly comprising short-term deposits and other monetary funds Cash, Deposits with Banks and Other Financial Institutions | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deposits with original maturity not exceeding three months | 758,526 | 760,365 | | Other monetary funds | 362,154 | 706,337 | | Total | 1,120,689 | 1,466,741 | Financial Assets Held Under Resale Agreements As of June 30, 2025, financial assets held under resale agreements slightly decreased to RMB 514 million from RMB 541 million at year-end 2024, primarily consisting of bonds in interbank and stock exchange markets Financial Assets Held Under Resale Agreements | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Securities - bonds (interbank market) | 344,000 | 288,250 | | Securities - bonds (stock exchange) | 170,016 | 252,582 | | Total | 514,047 | 540,883 | Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, financial assets at fair value through profit or loss decreased to RMB 19.95 billion from RMB 20.71 billion at year-end 2024, comprising debt, fund, equity investments, and wealth management products Financial Assets at Fair Value Through Profit or Loss | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Debt investments | 9,669,879 | 10,540,326 | | Fund investments | 5,696,548 | 6,512,880 | | Equity investments | 2,426,422 | 1,521,556 | | Wealth management products | 2,134,137 | 2,111,237 | | Total | 19,947,600 | 20,706,284 | - Of these, listed financial assets amounted to RMB 3.92 billion, and unlisted financial assets amounted to RMB 16.02 billion149 Financial Assets Measured at Amortized Cost As of June 30, 2025, financial assets measured at amortized cost were RMB 1.05 billion, largely stable compared to RMB 1.05 billion at year-end 2024, primarily including trust investment plans and debt investments Financial Assets Measured at Amortized Cost | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trust investment plans | 619,247 | 524,310 | | Debt investments | 430,374 | 527,120 | | Total | 1,049,110 | 1,051,049 | Debt Instruments at Fair Value Through Other Comprehensive Income As of June 30, 2025, debt instruments at fair value through other comprehensive income decreased to RMB 8.92 billion from RMB 10.53 billion at year-end 2024, comprising corporate, financial, and government bonds Debt Instruments at Fair Value Through Other Comprehensive Income | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Corporate bonds | 5,273,325 | 6,326,093 | | Financial bonds | 2,549,975 | 2,823,182 | | Government bonds | 1,066,422 | 1,348,979 | | Total | 8,920,381 | 10,528,854 | - Of these, listed debt instruments amounted to RMB 639 million, and unlisted debt instruments amounted to RMB 8.28 billion151 Equity Instruments at Fair Value Through Other Comprehensive Income As of June 30, 2025, equity instruments at fair value through other comprehensive income increased to RMB 846 million from RMB 790 million at year-end 2024, primarily equity investments with a larger proportion of listed ones Equity Instruments at Fair Value Through Other Comprehensive Income | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity investments | 845,692 | 789,783 | | Of which: listed | 810,006 | 754,097 | | Of which: unlisted | 35,686 | 35,686 | - In H1 2025, dividend income recognized from these equity investments was RMB 20.59 million153 Investments in Associates and Joint Ventures As of June 30, 2025, total investments in associates and joint ventures slightly increased to RMB 5.62 billion from RMB 5.59 billion at year-end 2024, including investments in ZhongAn Microfinance, ZhongAn Xinke, ZhongAn International, and Nova Technology Investments in Associates and Joint Ventures | Associates and Joint Ventures | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Chongqing ZhongAn Microfinance Co., Ltd. | 446,899 | 440,585 | | ZhongAn Xinke (Shenzhen) Co., Ltd. | 240,515 | 218,824 | | ZhongAn Technology (International) Group Co., Ltd. | 4,861,698 | 4,870,675 | | Nova Technology Ltd. | 73,832 | 61,332 | | Total | 5,622,944 | 5,591,416 | - In H1 2025, the share of net loss from associates and joint ventures was RMB 6.62 million154 Time Deposits As of June 30, 2025, time deposits slightly increased to RMB 31.17 million from RMB 30.83 million at year-end 2024, primarily comprising deposits with maturities of less than three months and three months to one year Time Deposits by Maturity | Maturity Period | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Less than 3 months | 10,000 | — | | 3 months to 1 year (inclusive) | 20,000 | 30,000 | | Total | 31,169 | 30,827 | Capital Deposit As of June 30, 2025, capital deposit slightly increased to RMB 305 million from RMB 301 million at year-end 2024, representing 20% of the company's share capital as required by the PRC Insurance Law Capital Deposit | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Capital deposit | 295,000 | 295,000 | | Total | 305,419 | 301,313 | - In accordance with relevant provisions of the "Insurance Law of the People's Republic of China," the company is required to set aside 20% of its share capital as a capital deposit156 Property and Equipment As of June 30, 2025, the net book value of property and equipment decreased to RMB 632 million from RMB 654 million on January 1, 2025, with depreciation expenses of RMB 28.37 million in H1 2025 Property and Equipment Net Book Value | Item | As of June 30, 2025 (RMB thousands) | As of Jan 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 571,660 | 580,104 | | Motor vehicles | 1,385 | 1,686 | | Electrical equipment | 21,231 | 21,109 | | Office furniture and equipment | 2,588 | 2,901 | | Leasehold improvements | 35,029 | 47,977 | | Total | 631,893 | 653,777 | - Depreciation expenses for H1 2025 amounted to RMB 28.37 million158 Leases As of June 30, 2025, right-of-use assets (buildings) were RMB 116 million and lease liabilities were RMB 94 million, with depreciation expenses of RMB 63.51 million and total cash outflows of RMB 67.88 million in H1 2025 Right-of-Use Assets and Lease Liabilities | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Right-of-use assets (buildings) | 115,879 | 143,774 | | Lease liabilities | 93,987 | 122,896 | H1 2025 Lease-Related Expenses and Cash Flow | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation expense for right-of-use assets | (63,506) | (79,908) | | Interest expense | 2,518 | 7,650 | | Total cash outflow relating to leases | 67,883 | 77,740 | Intangible Assets As of June 30, 2025, the net book value of intangible assets slightly increased to RMB 626 million from RMB 619 million on January 1, 2025, with amortization expenses of RMB 58.40 million and impairment of RMB 24.40 million in H1 2025 Intangible Assets Net Book Value | Item | As of June 30, 2025 (RMB thousands) | As of Jan 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Software | 625,122 | 618,180 | | Others | 449 | 539 | | Total | 625,571 | 618,719 | - Amortization expenses for H1 2025 were RMB 58.40 million, and impairment was RMB 24.40 million161 Deferred Tax Assets and Liabilities As of June 30, 2025, net deferred tax liabilities significantly decreased to RMB 77.31 million from RMB 270.14 million at year-end 2024, influenced by insurance contract liabilities, impairment provisions, and financial asset fair value changes Deferred Tax