Investment Rating - The report maintains a "Strong Outperform" rating for the industry [1] Core Insights - The insurance companies leverage their comparative advantages to establish benchmarks in the CCRC industry, focusing on high-end customer operations [4] - The report highlights the diverse participants in the elderly care industry, including real estate companies, insurance companies, specialized elderly service operators, and foreign enterprises, each playing distinct roles [7] - Insurance companies are identified as the main investors in elderly care communities, benefiting from policy support, funding, and customer resources [13] Summary by Sections 1. Diverse Participants and CCRC Promotion - The elderly care real estate sector includes four main types of participants: real estate companies, insurance companies, specialized elderly service operators, and other investors [7] - Insurance companies have significant advantages in policy, funding, and customer resources, making them the primary investors in elderly care communities [11][13] - The report emphasizes the importance of collaboration between insurance companies and real estate firms to optimize investment and service delivery [7] 2. Case Study: Taikang Home - Taikang Home operates under a heavy asset model, focusing on building high-quality CCRC communities [18] - As of April 2025, Taikang has established 43 projects across 36 cities, with a total planned area of approximately 4.94 million square meters, accommodating over 86,000 elderly individuals [26] - The occupancy rate of mature communities is notably high, with over 16,000 residents currently living in Taikang's facilities [26][29] 3. Case Study: China Pacific Insurance Home - China Pacific Insurance Home targets different age segments with three types of CCRC communities, investing a total of 17 billion yuan [4] - As of July 2023, it has launched 15 self-operated elderly care projects across 13 cities, with 9 already in operation [4][14] - The expected annualized return rate is projected to exceed 5.5% over 50 years [4] 4. Case Study: Taiping Life Enjoyment - Taiping Life combines heavy and light asset models, with 78 communities covering 27 provinces and 64 cities as of February 2025 [4] - The community model includes both self-owned and third-party cooperative facilities, aiming for nationwide coverage [4][17] - The profitability model involves external leasing, with a focus on comprehensive service offerings [4] 5. Investment Trends - Insurance funds are actively participating in the investment and construction of elderly care communities, with a total planned investment of 900 billion yuan and actual investment of 446 billion yuan as of Q3 2020 [14] - The number of commercial insurance community projects increased from 105 in 2022 to 129 in 2023 [14]

Investment Rating - The report maintains a "Strong Buy" rating for the non-bank financial sector, specifically focusing on the elderly care industry [1]. Core Insights - The elderly care industry is characterized by a diverse range of participants, including government entities, real estate companies, insurance firms, and specialized elderly service operators. Insurance companies are identified as the main investors in elderly communities due to their financial, customer, and resource advantages [3][4]. - The operational models in the elderly care sector primarily consist of heavy asset and light asset approaches, with heavy asset models being suitable for financially robust participants like insurance and real estate companies [3][4]. - The profitability of elderly care institutions revolves around rental and sales strategies, with a predominant focus on external leasing for stable income generation [4]. Summary by Sections 1. Current Status of Institutional Elderly Care Services - The development of institutional elderly care services is steadily progressing, supported by policies that encourage a multi-faceted approach to elderly care [15][32]. - The number of registered elderly care institutions and their bed capacity has been increasing, although the overall bed utilization rate has declined, indicating a faster growth in community care services [33]. 2. Diversity of Participants in Elderly Real Estate - The elderly real estate sector features four main types of social capital participants, each with unique strengths, with insurance companies holding a comprehensive advantage [3]. - The operational models are categorized into heavy asset, light asset, and a combination of both, allowing for flexibility in service coverage [3][4]. 3. Profitability Models - Elderly care institutions primarily generate revenue through direct sales, external leasing, or a combination of both, with external leasing being the most common approach for stable income [4].