PING AN OF CHINA(SH:601318) 2 1 Shi Ji Jing Ji Bao Dao·2025-08-27 11:58Core Viewpoint - China Ping An's interim performance report for 2025 reveals a divergence in profit indicators, with operating profit increasing by 3.7% year-on-year, while net profit attributable to shareholders decreased by 8.8% [2][4]. Financial Performance - Operating profit for the first half of the year grew by 3.7%, but net profit attributable to shareholders fell by 8.8% [2][4]. - The decline in net profit is attributed to three main factors: a one-time impact from the consolidation of Ping An Good Doctor resulting in a 3.4 billion yuan impairment, a non-operating impact from the revaluation of convertible bonds, and 600 billion yuan in unrealized gains classified under OCI that do not appear on the profit statement [4][6]. Business Strategy and Growth - The non-agent channel's contribution to new business value in life and health insurance has increased to over 35%, significantly boosting new business value by nearly 40% year-on-year, reaching 22.335 billion yuan [8]. - The bank insurance channel saw a remarkable growth of 168.6%, attributed to exclusive partnerships with various banks [8]. Asset Allocation - As of June 30, 2025, Ping An's investment portfolio exceeded 6.2 trillion yuan, with 79% allocated to fixed income assets and 13% to equity assets, of which 65% is classified under OCI [9]. - The company aims to increase equity allocation focusing on new productivity and high dividend strategies [12]. Technology Strategy - Ping An unveiled its "AI IN ALL" strategy, emphasizing the integration of AI across its operations, including marketing, service, and management [13]. - The company has developed 67 proprietary vertical models in various fields, with significant applications in insurance operations, resulting in a 1% reduction in costs over three years [13].