AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

China Pacific Insurance Grp Co. Ltd

Interim / Quarterly Report Aug 28, 2025

10453_ir_2025-08-28_5a12194b-a7ff-466a-9ebe-e85526aa448e.pdf

Interim / Quarterly Report

Open in Viewer

Opens in native device viewer

中国太平洋保险(集团)股份有限公司

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

(A joint stock company incorporated in the People's Republic of China with limited liability)

2025 Interim Report

(Trading Symbol:CPIC)

Contents

Important information
3
Corporate information and definitions5
Business overview
8
Chairman's statement
13
Operating results17
Highlights of accounting and operation data17
Review and analysis of operating results19
Embedded value51
Corporate governance62
Report of the Board of Directors and significant events62
Changes in the share capital and shareholders' profiles
72
Directors, supervisors and senior management
74
Corporate governance76
Environmental and social responsibilities83
Other Information
89
Documents available for inspection89

Financial Reports

Cautionary Statements:

Certain statements included in this report, including future plans and development strategies, are not historical facts and are "forward-looking". Forward-looking statements are based upon various assumptions, including, without limitation, the management's examination of historical operating trends, data contained in its records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and which are beyond its control, and the Company may not achieve or accomplish these expectations, beliefs or projections. The occurrence or nonoccurrence of an assumption could cause the Company's actual financial condition and results to differ from or fail to meet expectations expressed or implied by, such forward-looking statements. None of the Company or its management can guarantee or give any assurance to investors regarding the future accuracy of the opinions set forth herein or as to the actual occurrence of any predicted developments. Investors and other related parties are advised to be mindful of the risk, and be aware of the difference between the Company's plans or projections and its commitments.

Such forward-looking statements speak only as at the date on which they are made and are not intended to give any assurances as to future results. You are advised to exercise caution and should not rely on the forward-looking statements in this report.

Important information

I. The Board of Directors, the Board of Supervisors, the directors, the supervisors and the senior management of the Company warrant that the contents of this interim report are true, accurate and complete and that there is no false representation, misleading statement or material omission in this interim report; and they severally and jointly accept responsibility for the contents of this interim report.

II. The Company's 2025 Interim Report was considered and approved at the 16th session of the 10th Board of Directors on 28 August 2025, which 13 Directors were required to attend and all of them attended in person. For the purposes of the United Kingdom's Financial Conduct Authority's Disclosure Guidance and Transparency Rule 4.1.12(3), each of the Directors of the Company named in the section "Directors, supervisors and senior management" of this report, to the best of his or her knowledge, confirm that: (1) the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and (2) the interim report includes a fair view of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that the Company faces.

III. The 2025 Interim Financial Report of the Company has not been audited.

IV. Mr. FU Fan (person in charge of the Company), Mr. SU Gang (principal in charge of accounting) and Ms. XU Zhen (head of the Accounting Department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this interim report.

V. The Company did not propose to distribute any profit, nor did it transfer any capital reserves to share capital for the reporting period.

VI. The Company was exposed to various risks, including insurance risk, market risk, credit risk, liquidity risk, operational risk, reputational risk, strategic risk, capital management risk and other Group specific risks. For details of the risks that the Company may face, please refer to the section "Review and analysis of operating results" of this report.

VII. There were no non-operating funds misappropriated by major shareholders or related parties of the Company.

VIII. The Company did not provide external guarantees in violation of the prescribed decisionmaking procedures.

CHINA PACIFIC INSURANCE (GROUP) CO., LTD. BOARD OF DIRECTORS

Corporate information and definitions

Legal Name in Chinese: 中国太平洋保险(集团)股份有限公司 ("中国太保")

Legal Name in English: CHINA PACIFIC INSURANCE (GROUP) CO., LTD. ("CPIC")

Legal Representative: FU Fan

Board Secretary: SU Shaojun Securities Representative: CHEN Haozhi Contact for Shareholder Enquiries: Investor Relations Dept. of the Company Tel: +86-21-58767282 Fax: +86-21-68870791 Email: [email protected] Address: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Registered Office: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Office Address: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Postal Code: 200010 Website: http://www.cpic.com.cn Email: [email protected]

Selected Newspapers for Disclosure (A Share): China Securities, Shanghai Securities and Securities Times Announcements for A Share Published at: http://www.sse.com.cn Announcements for H Share Published at: http://www.hkexnews.hk Announcements for GDR Published at: http://www.londonstockexchange.com

Report Available at: Investor Relations Dept. of the Company

Stock Exchange for A Share Listing: The Shanghai Stock Exchange

Stock Name for A Share: 中国太保

Stock Code for A Share: 601601

Stock Exchange for H Share Listing: The Stock Exchange of Hong Kong Limited

Stock Name for H Share: 中國太保

Stock Code for H Share: 02601

Stock Exchange for GDR Listing: London Stock Exchange

Stock Name for GDR: China Pacific Insurance (Group) Co., Ltd.

Trading symbol for GDR: CPIC

Accountant (A Share): Ernst & Young Hua Ming LLP

Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China

Signing Certified Public Accountants: GUO Hangxiang, MO Aiqi

Accountant (H Share): Ernst & Young Hua Ming LLP (Recognised PIE Auditor)

Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China

Accountant (GDR): Ernst & Young Hua Ming LLP

Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China

Signing Certified Public Accountants: GUO Hangxiang

Definitions

In this report, unless the context otherwise requires, the following terms shall have the meanings set out below:

"The Company", "the
Group", "CPIC" or "CPIC China Pacific Insurance (Group) Co., Ltd.
Group"
"CPIC Life" China Pacific Life Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd.
"CPIC P/C" China Pacific Property Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group)
Co., Ltd.
"CPIC AMC" Pacific Asset Management Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd.
"CPIC HK" China Pacific Insurance Co., (H.K.) Limited, a subsidiary of China Pacific Insurance (Group)
Co., Ltd.
"Changjiang Pension" Changjiang Pension Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co.,
Ltd.
"CPIC Fund" CPIC Fund Management Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd.
"CPIC Anxin Agricultural" Pacific Anxin Agricultural Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group)
Co., Ltd.
"CPIC Health" Pacific Health Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd.
"CPIC Capital" CPIC Capital Company Limited, a subsidiary of China Pacific Insurance (Group) Co., Ltd.
"CPIC Technology" Pacific Insurance Technology Co., Ltd., a wholly-owned subsidiary of China Pacific Insurance
(Group) Co., Ltd.
"CPIC Life (HK)" China Pacific Life Insurance (H.K.) Company Limited, a subsidiary of China Pacific Insurance
(Group) Co., Ltd.
"CPIC Investment (HK) " CPIC Investment Management (H.K.) Company Limited, a subsidiary of China Pacific
Insurance (Group) Co., Ltd.
"C-ROSS II" China Risk Oriented Solvency System Phase II
"CBIRC" Former China Banking and Insurance Regulatory Commission
"NFRA" National Financial Regulatory Administration
"CSRC" China Securities Regulatory Commission
"SSE" Shanghai Stock Exchange
"SEHK" The Stock Exchange of Hong Kong Limited
"LSE" London Stock Exchange
"PRC GAAP" China Accounting Standards for Business Enterprises issued by Ministry of Finance of the
People's Republic of China, and the application guide, interpretation and other related
regulations issued afterwards
"New Accounting Standards" The Accounting Standard for Business Enterprises Nos. 22, 23, 24, 37 and 25 promulgated
and revised by the Ministry of Finance of the People's Republic of China in 2017 and 2020
sequentially
"Articles of Association" The articles of association of China Pacific Insurance (Group) Co., Ltd.
"Hong Kong Listing Rules" The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
"Model Code for Securities
Transactions"
Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix
C3 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
"Corporate Governance
Code"
"SFO"
Limited
Corporate Governance Code as set out in Appendix C1 to the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited
The Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
"Substantial Shareholder" Has the meaning given to it under the Securities and Futures Ordinance (Chapter 571 of the
Laws of Hong Kong), being a person who has an interest in the relevant share capital of the
Company, the nominal value of which is equal to or more than 5% of the nominal value of
the relevant share capital of the Company
"GDR" Global depositary receipts
"ESG" Environmental, Social and Governance
"RMB" Renminbi
"pt" Percentage point

Business overview

Key indicators

Unit: RMB million

Group operating income
200,496
+3.0%
Group embedded valuenote 1
588,927
+4.7%
NBV margin of life businessnote 1 15.0% +0.4ptnote 2
businessnote
1
NBV
of life
note 2
9,544
+32.3%
Underwriting combined ratio
of P/C businessnote 3
96.4%
-0.7pt
Group total investment yieldnote 4
2.3% -0.4pt
investment yieldnote 4
Group net
1.7%
-0.1pt
Group comprehensive
investment yieldnote
4
2.4%
-0.6pt
Group OPAT
attributable to
shareholders of the parentnote 5
19,909
+7.1%
Group net profit attributable
to shareholders of the parent
27,885
+11.0%
Groupcore
solvency margin
ratio
190%
+8pt
Groupcomprehensive
solvency
margin ratio
264%
+8pt
Group AuM
3,772,961
+6.5%
Number of insurance policies per customer
2.35
Group number of customers
('000)
181,382

Notes:

  1. Consolidated data of CPIC Life and CPIC Life (HK), the comparative period figures were restated on a consistent basis for accurate comparison.

  2. Consolidated data of CPIC P/C, CPIC Anxin Agricultural and CPIC HK.

  3. Net/total investment yield, or comprehensive investment yield was not annualised.

  4. Figures for the same period of the previous year were restated.

2. Figures for the same period of the previous year were restated based on valuation assumptions as at the end of 2024.

Core competitiveness

As a leading integrated insurance group in China, we stay focused on the core business of insurance, with commitment to value and profitability; continuously strengthen our core competencies; deepen the ecosystem of "insurance + healthcare + elderly care", which builds distinctive advantages in high-quality services. With steady growth of overall business results, consolidation of market standings and sustained improvement of comprehensive strength, we have made increased contribution to China's social and economic development and people's well-being, further cemented our market leadership and brand influence.

Focus

We stay focused on insurance, with relatively balanced development of various business segments. We are in a position to leverage the synergy across business segments to meet customers' diverse needs. Our life/health insurance business is committed to boosting people's welfare via diversified products/service offerings centering on "health protection, retirement provision and wealth management"; build competitive advantage in channel diversification, with efforts to foster a career-based, professional sales force and improve customer resources management (CRM) capabilities. The property and casualty insurance business, committed to serving the New Development Pattern, promotes product innovation for technology and China's green transformation, steps up support for the Rural Invigoration and Belt and Road Initiatives, further strengthens climate-related risk management capability and strives to improve the risk reduction system. As for investment, we adhere to value, long-term, prudent and responsible investing, continuously strengthen the long-term mechanism for coordination of assets and liabilities, intensify precise control of cost of liabilities, improve capabilities for Strategic Asset Allocation (SAA), refine the asset allocation framework across market cycles based on profiles of liabilities so as to facilitate steady value growth of the Company.

Prudence

We persist in sustainable development, with sound systems of corporate governance, performance evaluation and risk management. We continuously improve the corporate governance structure with legal entities shouldering the primary responsibility; optimise relevant rules and policies of the Shareholders' Meeting, the Board of Directors and senior management to ensure a clear division of responsibilities and checks and balances, with wellcoordinated operation of relevant governance bodies. We establish and refine the performance evaluation system and incentive & restraint mechanisms balancing the current period and long

term, development and risk management, which cements the foundation of high-quality development and stimulates organisational vitality. We continuously improve the risk management system, adopt a pro-active, "look-through" approach towards risk management and compliance, so as to ensure healthy, sustainable development of the Company.

Innovation

We are customer-oriented and forge ahead with transformation & innovation in a bid to foster new drivers for high-quality development. We put in place an ecosystem of "preventive care, diagnosis, treatment, rehabilitation and elderly care"; boost the integration of insurance products and healthcare services to meet customers' needs across their entire life cycles. We diversify the health insurance product matrix, with an upgrade of capabilities from insuring only those under social medical insurance to out-of-pocket expenses, and from insuring only preexisting conditions to existing illnesses. We advance digitalisation in an all-around way, building the industry's first fully independent and controllable infrastructure which supports optimisation of 100-billion-parameter large models, and training a 65-billion-parameter large model for the insurance sector. We develop an intelligent disaster prevention and loss reduction service system, an end-to-end smart assistance system for CRM, and an intelligent claims settlement solution. The integration of "insurance + service + technology" effectively promotes business model innovation, enhances customer experience and improves operational efficiency.

Responsibility

We uphold the philosophy of "insurance for people", align ourselves with China's social and economic development, and strive to create value for customers, employees, shareholders and the society. We strengthen the system of consumer rights protection to enhance consumer experience, with increased visibility of "Responsible, Smart and Caring" CPIC Service. We optimise the human resources management system, step up training and development of young talent, enhance professional team-building to facilitate employees' career advancement. We provide employees with access to an innovative learning platform in a bid to enhance the sense of fulfillment, belonging and satisfaction among employees. We are committed to protecting shareholder interests, continue to improve transparency in information disclosure, and strive to generate stable, sustainable and predictable returns to shareholders. We push for integration of ESG philosophy into the full process of business management, support green, low-carbon economic and social transition, cement our win-win cooperation with partners both upstream and downstream, so as to fulfill our corporate social responsibilities.

Honours and awards

  • CPIC P/C was honored with two awards at the 2025 Financial Consumer Protection & Service Innovation Outstanding Cases Competition hosted by the China Banking & Insurance News. Its full-process customer self-service Transparent Claims platform was recognized as an Outstanding Case in Online Financial Service Innovation, and its Cang Qiong Financial Consumer Protection Digital Platform was awarded an Outstanding Case in Financial Consumer Protection Mechanism Innovation for leveraging technology to safeguard consumer rights.
  • CPIC Life's Huhuibao project was awarded the 2025 China Insurance Industry Innovation Development Model Case - Inclusive Finance Model Case of the Year at the 2nd Insurance Leaders Symposium and 2025 China Insurance Competitiveness Research Report Release Conference hosted by Tsinghua Financial Review of Tsinghua University PBC School of Finance.
  • CPIC AMC won the Model Insurance Asset Manager Award for Implementing China's Five Financial Priorities, and the Model Insurance Asset Manage Award for Financial Technology at the 2025 China Insurance Asset Management Industry Excellent Model Institutions Competition sponsored by the China Securities Journal.
  • CPIC Health's "Lan Yi Bao Long-term Medical Insurance Package (Good Doctor and Medicine Edition)" won the Health Insurance Product of the Year Award at the 2024-2025 'Jin Kou Bei' Annual Insurance Product Competition sponsored by the China Banking and Insurance News.
  • Changjiang Pension won the "China, Best Pension Manager", "China, Best ESG Manager", and "China, Best Enterprise Annuity Scheme - Golden Sunshine Collective Enterprise Annuity Scheme" of the 2025 Best of the Best Awards sponsored by the Asia Asset Management magazine.
  • CPIC was recognized with three Digital Inclusive Finance Innovation awards by the Organizing Committee of the 7th Digital Inclusive Finance Conference during the 2025 National SME Service Month, an initiative organized by the Ministry of Industry and Information Technology. CPIC Life's Bancassurance 7D Digital Project and CPIC Technology's eHuibao SaaS City-Tailored Inclusive Insurance Solution were both designated as Innovative Application Scenarios in Digital Inclusive Finance, and CPIC P/C's AISC Smart Agricultural E-Chain Project was voted as a Digital Inclusive Financial Technology Innovation.
  • CPIC was awarded the second Shanghai Charity Award by the Shanghai Municipal Government.
  • CPIC was awarded the ESG New Benchmark Enterprise Award at the 2025 STOCKSTAR ESG Annual Forum & 3rd ESG New Benchmark Enterprise Awards hosted by www. STOCKSTAR.com.

Chairman's statement

Dear shareholders,

In the first half of 2025, global economic recovery faltered, with the world economic and trade system facing formidable challenges. In the face of mounting external pressures, China maintained an overall stable economic performance, contributing a valuable degree of certainty to the global economy. Domestically, the Chinese modernisation drive has been proceeded, with integrated development of technological innovation and industrial upgrading and New Quality Productive Forces gaining momentum. In particular, there has been growing demand for diversified financial services and risk solutions amid advancement of technological innovation, progress of industrial upgrade, steady growth of foreign trade and the emergence of the silver and digital economy, which, in turn, creates great opportunities for the insurance industry. At the same time, the industry itself is in a critical stage of transformation. Tightening supervision and risk prevention have featured even more prominently in the landscape of financial regulation. New policy initiatives, such as enforcing "consistency" between filed and actual commissions, accelerating the reform of the life insurance tied-agent system and exploring long-cycle performance evaluation of commercial insurance companies, would further guide insurers towards high-quality development, foster rational market competitions and create an enabling environment for healthy and sustainable development of the industry.

CPIC stayed confident and consistent, and pressed ahead with its transformation. We made steadfast efforts to build long-term capabilities and pursue high-quality development, with steady improvement in business results and sustained increase in overall strength. In the first half of 2025, Group operating income totalled RMB200.496 billion, representing a 3.0% year-on-year growth, of which insurance revenue reached RMB141.824 billion, up by 3.5%, maintaining stable growth momentum. Group net profitnote 1 amounted to RMB27.885 billion, rising 11.0% year on year; Group OPATnotes 1,2 RMB19.909 billion, a growth of 7.1% year on year. Group embedded value note 3 stood at RMB588.927 billion, up by 4.7% from the end of the previous year. Total assets under management rose steadily to RMB 3,772.961 billion, up by 6.5% from the end of the previous year.

We optimised the mix of core businesses, with sustained improvement in operational resilience. In life insurance business, we steadily advanced the "2+N" channel strategy, with more diversified value contribution across channels. In the first half of the year, new business value grew rapidly, with value contribution from the agency channel and bancassurance channel reaching 60% and 37.8% respectively, indicating a more balanced mix; enhanced alignment of market interest rates and product pricing rates, accelerated product change and asset liability

management, with pick-up in development of variable products, evidenced by substantial growth of regular-premium business of new participating policies. In property and casualty insurance, we proactively adapted to shifts of market cycles, optimised cost structures, reduced/eliminated high-risk and high-loss-ratio business, strengthened operational management, with declines in both loss and expense ratios, improvement in the combined ratio and significant growth of underwriting profit; we also enhanced accounts receivables management and achieved record net cash flows from operating activities. In health insurance, we capitalised on the opportunities arising from the integration of social and private insurance, promoted product innovation, diversified product offerings for substandard risks and accelerated online business development. On the investment side, we seized opportunities of the H-share market, made full use of the dividend strategy in a low interest rate environment, which supported stable investment returns.

We embraced market trends and further enhanced service capabilities. In the context of the "5 Financial Priorities," we continuously optimised the supply of products and services. Stepped up innovation in technology insurance and launched the "Kechuang Wuyou" integrated service solution for tech SMEs, serving 75,000 enterprises in the first half of the year. Strengthened funding support for technological innovation, with investment in the area reaching RMB119.7 billion as of the end of the reporting period. Enriched offerings of green financial products, with issuance of over 5.3 million NEV auto insurance policies and sustained growth of green investments. Expanded the coverage of inclusive insurance; issued 460 million insurance policies under terminal illness, long-term care, and Huiminbao programmes across 240 cities; provided RMB400 billion in agricultural insurance protection; provided risk cover to more than 2,700 transactions in domestic and foreign trade by small- and micro-enterprises. We further advanced the integration of "insurance + healthcare & elderly care," with 10 "CPIC Home" retirement communities officially up and running in 9 Chinese cities, admitting more than 2,000 residents. We explored the "Longevity Retreat" home-based elderly care to enhance customer experience; our Xiamen Rehabilitation Hospital recently opened for business, adding impetus to the development of the healthcare ecosystem. We deepened presence in pension finance, with nearly double-digit growth in pension assets under management; successfully participated in the Xiong An Talent Annuity project, accelerated the development of private pension insurance, diversified product offerings and achieved significant growth in new premiums from private annuity insurance.

We deepened technological innovation, with impressive results in core business empowerment. The application of large-scale AI models is growing exponentially, helping to optimise insurance processes, improve production efficiency and reshape the entire insurance

value chain. We rolled out large models under specific scenarios, developing multiple solutions in key areas such as sales, operations and risk control. In customer resources management, technology helped with customer needs identification and precise matching of products/services; instead of reaching out to customers indiscriminately, we can now conduct targeted, data-driven screening, avoiding redundant investments and significantly improving sales conversion and chances of up-sell. In terms of operational efficiency, AI now handles nearly half of all customer service requests; 16% of claims cases of health insurance are now settled automatically, with large models achieving 99% accuracy in liability assessment, and claims costs per case lowered by 47%. As for risk detection, we developed image-recognitionbased tools for risk control of auto insurance claims, which effectively identifying fraudulent risk and allowing regional differences in claims, and cumulatively detected risk totaling tens of millions of yuan.

In the first half of the year, we were pleased to see more positive changes within the Company, as the intrinsic drivers for its high-quality development accumulated rapidly. We further optimised the Group's organisational structure, defined boundaries of responsibilities, streamlined decision-making processes and improved operational efficiency. We strengthened leadership and talent development, completed the succession of senior management of major subsidiaries, formulated medium- and long-term talent development plans to support career advancement of more professionals and young talent, as part of our effort to improve the human resources management system. As for senior executives, we strengthened term-based, contractual management, improved comprehensive performance appraisal and incentive mechanisms, ensured their accountability for operational targets so as to fully stimulate organisational vitality. We continued to enhance our integrated risk management framework, strengthened risk appetite transmission from head-office to front-line business units, and improved risk control in key areas. We proceeded with the building of demonstration zones for consumer rights protection and smart consumer protection initiatives. Both CPIC Life and CPIC P/C maintained a leading position at regulator's consumer protection evaluation, while our health insurance subsidiary also achieved top rankings among major industry peers.

In the first half of the year, we completed the distribution of dividends for 2024, paying out over RMB10.3 billion in cash dividends, maintaining a stable dividend level and sharing the "fruits" of the Company's development with investors. We also announced our medium- to long-term dividend policy, which links dividends with growth of Group OPATnote 1 , while considering other factors such as positive investment contributions, underscoring our commitment to generating stable, sustainable and predictable returns to shareholders.

Today, China's insurance industry is still in a strategic window for high-quality development. It will play an increasingly important part in China's modernisation drive, with a clear mandate to support national strategies, safeguard national rejuvenation and improve people's well-being, while contributing to the healthy and stable development of the economy and society.

Looking ahead, we will stay focused on the core business to live up to our missions and responsibilities; deepen reforms to promote the transition of growth drivers. In particular, we will advance the three Key Strategies of "health service & elderly care", "internationalization" and "AI+" in a bid to foster new core competencies, coordinate between effective improvement in quality and reasonable growth of quantity and achieve high-quality development. The health & elderly care strategy will fully capture opportunities in the sector and build a sustainable ecosystem of premium services, enhancing abilities to meet customer needs across their entire life cycle. The strategy also aims to promote mutual development of healthcare services and core insurance business, such as health insurance and pension finance. The internationalization strategy, in the context of the Belt and Road Initiative and Shanghai's effort to build itself into an international financial center, seeks to leverage Hong Kong as a "strategic stepping stone" and "launch base" for gradual integration into global markets, establish a coordinated model of domestic and overseas development, and enhance capacity for cross-border services and global asset allocation. The "AI+" strategy will build enterprise-level AI capabilities, promote largescale application of AI technology under core business scenarios, and drive efficiency gains, process re-engineering, customer experience enhancement, and service model innovation.

Next, we will adhere to the principle of "pursuing progress while maintaining stable fundamentals", uphold the core values of "integrity, prudence, pursuit of excellence and winwin innovation", and fully leverage the role of insurance as "a cushion of economic shocks" and "a social stabiliser". We will further deepen reforms to unleash vitality, and move firmly towards the vision of "a top-notch insurance and financial services group with market leadership and global competitiveness". We will strive to be a pioneer in serving national strategies, a leader in industry high-quality development and an example of excellence, opening a new chapter for our future development and contributing to the Chinese modernisation.

Notes:

  1. Attributable to shareholders of the parent.

  2. Figures for the same period of the preceding year were restated.

  3. Consolidated data of CPIC Life and CPIC Life (HK), the comparative period figures were restated on a consistent basis for accurate comparison.

FU Fan Chairman of the Board of Directors CPIC Group

Operating results

Highlights of accounting and operation data

I. Key accounting data and financial indicators of the Company as at period ends

Unit: RMB million
Key accounting data January to June 2025 January to June 2024 Changes (%)
Operating income 200,496 194,634 3.0
Profit before tax 32,259 29,395 9.7
Net profitnote 27,885 25,132 11.0
Net profit net of non-recurring profit or
lossnote
26,224 25,142 4.3
Net cash flows from operating activities 120,503 89,925 34.0
30 June 2025 31 December 2024 Changes (%)
Total assets 3,030,100 2,834,907 6.9
Equitynote 281,871 291,417 (3.3)

Note: Attributable to shareholders of the parent.

Key accounting indicators January to June 2025 January to June 2024 Unit: RMB
Changes (%)
Basic earnings per sharenote 1 2.90 2.61 11.0
Basic earnings per share net of non
recurring profit or lossnote 1
2.73 2.61 4.3
Diluted earnings per sharenote 1 2.90 2.61 11.0
Weighted average return on equity
(%)note 1
9.6 9.5 0.1pt
Weighted average return on equity net of
non-recurring profit or loss(%)note 1
9.0 9.5 (0.5pt)
Net cash flows per share from operating
activitiesnote 2
12.53 9.35 34.0
30 June 2025 31 December 2024 Changes (%)
Net assets per sharenote 1 29.30 30.29 (3.3)

Notes:

1.Attributable to shareholders of the parent.

2.Calculated by the weighted average number of ordinary shares in issue.

II. Non-recurring items

Unit: RMB million
Non-recurring items January to June 2025
Gains on disposal of non-current assets 73
Government grants recognised in current profit or loss 66
Other net non-operating income and expenses other than aforesaid items (14)
Other items confirming to the definition of non-recurring profit or lossnote 1,603
Effect of income tax relating to non-recurring profit or loss (38)
Net non-recurring profit or loss attributable to non-controlling interests (29)
Total 1,661

Note: Shanghai Ruiyongjing Real Estate Development Co., Ltd. has become a subsidiary of the Group during the current reporting period. Shanghai Ruiyongjing Real Estate Development Co., Ltd. was included in the scope of the Group's consolidated financial statements, resulting in a one-time profit or loss impact of approximately RMB1,603 million.

III. Other key financial and regulatory indicators

Unit: RMB million
30 June 2025/ 31 December 2024/
Indicators January to June 2025 January to June 2024
The Group
Investment assetsnote 1 2,924,728 2,734,457
Three-year average investment yield (%)note 2 3.9 3.3
Insurance revenue 141,824 137,019
Insurance service expenses 120,169 116,298
Insurance contract assets - 22
Insurance contract liabilities 2,428,583 2,229,514
Liabilities for incurred claims 110,972 105,497
Liabilities for remaining coverage 2,317,611 2,124,017
Reinsurance contract assets 44,068 46,081
Allocation of reinsurance premiums 7,290 7,962
Recoveries of insurance service expenses
from reinsurers
6,245 7,602
Insurance finance expenses for insurance
contracts issued
40,698 44,030
Reinsurance finance income for reinsurance
contracts held
715 1,036
CPIC Lifenote 3
Contractual service margin of insurance contracts issued 346,362 342,149
Contractual service margin of the issued insurance
contracts initially recognised in the period
10,821 8,949
CPIC P/C
Three-year average underwriting combined ratio (%)note 4 97.1 97.4
Three-year average underwriting loss ratio (%)note 5 69.8 69.8

Notes:

  1. Investment assets include cash at bank and on hand, etc.

  2. The Company adopted the new insurance standard and the new financial instruments standards from 1 January 2023. Threeyear average investment yield was calculated according to the data based on the new insurance standard and the new financial instruments standards.

  3. Consolidated data of CPIC Life and CPIC Life (HK), the comparative period figures were restated on a consistent basis for accurate comparison.

  4. Underwriting combined ratio = (insurance service expenses + insurance finance income or expenses + changes in insurance premium reserves + (allocation of reinsurance premiums paid – recoveries of insurance service expenses from reinsurers reinsurance finance income or expenses)) / insurance revenue.

5. Underwriting loss ratio = (incurred claims + changes in liability for incurred claims + gains or losses on the onerous contracts + insurance finance income or expenses + changes in insurance premium reserves + (allocation of reinsurance premiums paid recoveries of insurance service expenses from reinsurers - reinsurance finance income or expenses)) / insurance revenue.

Review and analysis of operating results

Business overview

I. Key businesses

We provide, through our subsidiaries, a broad range of risk protection solutions, wealth management and asset management services. In particular, we provide life/health insurance products & services through CPIC Life, property and casualty insurance products & services through CPIC P/C and CPIC Anxin Agricultural, and health insurance products & health management services through CPIC Health. We manage insurance funds, including third-party assets, through our investment arm, CPIC AMC. We provide retirement financial solutions and other related asset management service via Changjiang Pension, carry out private equity fund management and related consulting services through CPIC Capital, and also engage in mutual fund management business through CPIC Fund. We provide market-oriented technological empowerment service via CPIC Technology.

In the first half of 2025, China's insurance marketnote realised a primary premium income of RMB3.74 trillion, up by 5.3% from the same period of 2024. Of this, premiums from life/health insurance companies amounted to RMB2.77 trillion, a growth of 5.4%, and that from property and casualty insurance companies RMB0.96 trillion, up by 5.1%. Measured by primary premium income, CPIC Life and CPIC P/C are both China's 3rd largest insurers for life and property and casualty insurance, respectively.

Note: Data for insurance industry came from the official website of NFRA.

II. Main items on consolidated financial statements with change of over 30% and reasons
Unit: RMB million
Balance sheet items 30 June 2025 31 December 2024 Changes (%) Main reason for the changes
Cash at bank and on hand 46,404 29,357 58.1 Timing difference
Securities purchased under
agreements to resell
21,349 10,905 95.8 Timing difference
Long-term equity investments 13,148 22,520 (41.6) Change from joint ventures to
subsidiaries
Investment properties 28,396 8,951 217.2 Impact of change from joint
ventures to subsidiaries
Construction in progress 3,357 2,489 34.9 Purchase and construct
properties
Right-of-use assets 1,837 2,921 (37.1) Impact of change from joint
ventures to subsidiaries
Deferred income tax assets 6,919 3,464 99.7 Increase in deductible
temporary differences
Premium received in advance 6,192 18,044 (65.7) Timing difference
Taxes payable 4,283 2,480 72.7 Timing difference
Insurance premium reserves 652 129 405.4 Timing difference and growth
in insurance business
Lease liabilities 1,638 2,722 (39.8) Impact of change from joint
ventures to subsidiaries
Deferred income tax liabilities 2,707 7,362 (63.2) Decrease in taxable temporary
differences
Other liabilities 67,830 47,987 41.4 Increase in dividends payable
and payables related to
asset-backed securities
Other comprehensive income/(loss) (12,390) 14,917 (183.1) Change in fair value of
financial investments at fair
value through other
comprehensive income due
to capital market fluctuation
Income statement items January to June
2025
January to June
2024
Changes (%) Main reason for the changes
Investment income 21,671 6,893 214.4 Increase in gains from
securities trading, etc.
Investment income 21,671 6,893 214.4 Increase in gains from
securities trading, etc.
Gains arising from changes in fair
value
5,856 20,945 (72.0) Fluctuation of market value of
financial assets at fair value
through profit or loss
Reinsurance finance income for
reinsurance contracts held
715 1,036 (31.0) Change in financial assumption
Interest expenses (2,217) (1,192) 86.0 Increase in interest expenses
of securities sold under
agreements to repurchase
Other comprehensive
income/(loss)
(27,500) 2,455 (1,220.2) Change in fair value of
financial investments at fair
value through other
comprehensive income due
to capital market fluctuation

Performance overview

We stayed focused on the core business of insurance, pursued value growth and long-termism, deepened the customer-oriented strategic transformation, and delivered positive overall business results, with sustained growth of comprehensive strength. CPIC Life pressed ahead with the Changhang Transformation, proceeded with channel diversification, optimised product mix, and achieved solid value growth; CPIC P/C continued to improve business mix, pursued highquality development in an all-around way, with marked improvement in underwriting profitability and steady growth of premium income; asset management persisted in asset liability management (ALM) across market cycles, enhanced professional investment expertise and reported sound investment results.

I. Performance highlights

During the reporting period, Group operating income amounted to RMB200.496 billion, up by 3.0% year on year, of which, insurance revenue reached RMB141.824 billion, a growth of 3.5%. Group net profitnote 1 reached RMB27.885 billion, up by 11.0% year on year, with Group OPATnotes 1,2,3 of RMB19.909 billion, a growth of 7.1%. Group EVnote 4 amounted to RMB588.927 billion, an increase of 4.7% from the end of 2024. Of this, Group value of in-force businessnotes 4,5 amounted to RMB223.433 billion, up by 4.9%. Life insurance businessnote 4 delivered RMB9.544 billion in new business value (NBV), up by 5.6% year on year, or 32.3% on a comparable basis, with an NBV margin of 15.0%, up by 0.4pt on a comparable basis. Property and casualty insurance businessnote 6 recorded an underwriting combined ratio of 96.4%, down by 0.7pt from the first half of 2024. Comprehensive investment yieldnote 7 on Group investment assets went down by 0.6pt year on year to 2.4%.

Life insurance businessnote 4 reported rapid NBV growth on a comparable basis, with steady growth of OPAT

  • NBV reached RMB9.544 billion, up by 5.6% year on year, or 32.3% on a comparable basis, with an NBV margin of 15.0%, up by 0.4pt on a comparable basis.
  • Written premiums amounted to RMB193.470 billion, up by 13.1% year on year.
  • OPATnote 2 of life insurance business reached RMB15.000 billion, a year-on-year growth of 5.0%; contractual service margin amounted to RMB346.362 billion, up by 1.2% from the end of 2024.
  • Deepened product mix restructuring and optimisation, with notable increase in the share of variable products; enhanced business quality management, with policy persistency ratio staying at high levels.

Underwriting profitability of property and casualty businessnote 6 continued to improve, with steady top-line growth

  • Underwriting combined ratio was 96.4%, down by 0.7pt from the same period of 2024. Of this, underwriting expense ratio stood at 26.7%, down by 0.7pt, and underwriting loss ratio 69.7%, staying flat.
  • Primary premium income amounted to RMB114.186 billion, a year-on-year increase of 0.9%.
  • Auto insurance deepened presence in NEV business and stepped up precise management to improve its resilience; non-auto business focused on business mix optimisation and enhanced the risk reduction system.

Persisted in strategic asset allocation based on profiles of liabilities, with solid investment performance

  • The share of debt category financial assets stood at 75.0%, down by 0.9pt from the end of 2024; that of equity category financial assets 14.8%, up by 0.3pt from the end of 2024, and of this, core equitynote 8 accounted for 11.8% of total investment assets, an increase of 0.6pt from the end of the preceding year.
  • Comprehensive investment yieldnote 7 of Group investment assets reached 2.4%, down by 0.6pt year on year. Total investment yieldnote 7 was 2.3%, down by 0.4pt, with net investment yieldnote 7 of 1.7%, down by 0.1pt.
  • Group AuM amounted to RMB3,772.961 billion, an increase of 6.5% from the end of 2024. Of this, third-party AuM amounted to RMB848.233 billion, a growth of 5.0%.

Notes:

    1. Attributable to shareholders of the parent.
    1. Figures for the same period of the preceding year were restated.
    1. OPAT is based on net profit on the financial statements, while excluding certain P/L items with short-term volatility and material one-off items which management does not consider to be part of the Company's day-to-day business operation. Of this, short-term investment volatility applies to business of CPIC P/C, CPIC Life and CPIC Health, etc., while excluding business based on VFA; it refers to the difference between actual investment income and long-term investment assumptions, while considering the impact of income tax. Material one-off items include the difference between deductible amounts for pre-tax profit of the current period and the average deductible amounts for pre-tax profit from the preceding years.
    1. Consolidated data of CPIC Life and CPIC Life (HK), the comparative period figures were restated on a consistent basis for accurate comparison.
    1. Based on the Group's share of value of in-force life insurance business after solvency.
    1. Consolidated data of CPIC P/C, CPIC Anxin Agricultural and CPIC HK.
    1. Net/total investment yield, or comprehensive investment yield was not annualised.
    1. Stocks and equity funds included.

II. Key performance indicators

Indicators As at 30 June 2025
/for the period
between January and
June in 2025
As at 31 December
2024/for the period
between January and
June in 2024
Changes
(%)
Key value indicators
Group embedded valuenote 1 588,927 562,250 4.7
Value of in-force business
notes 1,2
223,433 212,957 4.9
Group net assetsnote 3 281,871 291,417 (3.3)
NBV of CPIC Lifenotes 1,4 9,544 7,213 32.3
NBV margin of CPIC Life (%)notes 1,4 15.0 14.7 0.4pt
Underwriting combined ratio of CPIC P/C (%) 96.3 97.1 (0.8pt)
Group comprehensive investment yield (%)note 5 2.4 3.0 (0.6pt)
Key operating indicators
Insurance revenue 141,824 137,019 3.5
CPIC Lifenote 1 42,274 41,863 1.0
CPIC P/C 96,831 93,076 4.0
note 6
Group number of customers ('000)
181,382 183,176 (1.0)
Average number of insurance policies per customer 2.35 2.34 0.4
Monthly average agent number ('000) 183 183 -
Surrender rate of CPIC Life (%)note 1 0.8 0.9 (0.1pt)
Total investment yield (%)note 5 2.3 2.7 (0.4pt)
Net investment yield (%)note 5 1.7 1.8 (0.1pt)
Third-party AuM 848,233 808,203 5.0
Key financial indicators
Net profit attributable to shareholders of the parent 27,885 25,132 11.0
CPIC Lifenote 1 20,699 20,058 3.2
CPIC P/C 5,733 4,792 19.6
Basic earnings per share (RMB)note 3 2.90 2.61 11.0
Net assets per share (RMB)note 3 29.30 30.29 (3.3)
Comprehensive solvency margin ratio (%)
CPIC Group 264 256 8pt
CPIC Life 215 210 5pt
CPIC P/C 241 222 19pt

Unit: RMB million

Notes:

  1. Figures for CPIC Life include CPIC Life (HK), the comparative period figures were restated on a consistent basis for accurate comparison.

  2. Based on the Group's share of life business's value of in-force business after solvency.

  3. Attributable to shareholders of the parent.

  4. Figures for the same period of the previous year were restated based on valuation assumptions as at the end of 2024.

  5. Net/total investment yield, or comprehensive investment yield was not annualised.

  6. The Group number of customers refers to the number of applicants and insureds who hold at least one insurance policy within the insurance period issued by one or any of CPIC subsidiaries as at the end of the reporting period. In the event that the applicants and insureds are the same person, they shall be deemed as one customer.

  7. Numbers of change may not totally add up due to rounding.

Life/health insurance business

CPIC Life forged ahead with the Changhang Transformation, deepened customer segmentation, upgraded the channel diversification model, with rapid NBV growth; continued to optimise product mix and strengthened asset liability matching. CPIC Health further promoted the core strategy of "new products, new channels and new technology", with breakthroughs in proprietary business and improvement in development quality.

I. CPIC Lifenote 1

(I) Business analysis

CPIC Life showed improvement in its key performance indicators, with steady growth of both value and volume, as well as stable business quality. In the first half of 2025, it reported RMB193.470 billion in written premiums, an increase of 13.1% year on year; EV amounted to RMB445.024 billion, up by 5.3% from the end of 2024; NBV reached RMB9.544 billion, a growth of 5.6% from the same period of 2024, or 32.3% on a comparable basis, with an NBV margin of 15.0%, up by 0.4pt on a comparable basis; net profit reached RMB20.699 billion, a growth of 3.2% year on year, with OPATnote 2 of RMB15.000 billion, up by 5.0%.

Overall, under the guidance of the new business philosophy of "creating value for customers with suitable products/services delivered by professional sales teams", the subsidiary deepened the Changhang Transformation and delivered tangible results. First, stepped up customer segmentation to increase the focus on mid-tier and high-net-worth (HNW) customers, which further optimised the customer mix; as a result, the number of mid-tier customersnote 3 and above from the agency channel reached 27.3% as of the end of June 2025, up by 3.8pt year on year; HNW customersnote 3 from bancassurance channel grew by 75.4% and ultra HNW customersnote 3 by 85.4%. Second, upgraded the "2+N" channel diversification strategy so as to build a professional sales force and improve operational quality, with stabilisation of agency force headcount, improvement in core manpower productivity, considerable value growth of and increased value contribution from bancassurance and work-site marketing. Third, built on a differentiated product/service system with multiple measures to optimise business mix, including guiding for an increased share of variable products through the KPI system, with growth of regular-pay FYP from participating products. In the first half of 2025, the share of participating business in regular-pay FYP rose to 42.5% and of this, its share of the agency channel reached 51.0%.

Notes:

    1. Figures for CPIC Life include CPIC Life (HK), the comparative period figures were restated on a consistent basis for accurate comparison.
    1. Figures for the same period of the preceding year were restated.
    1. Mid-tier customers are defined as those with total payable premiums on long-term insurance from RMB300,000 (inclusive) to RMB2.4 million; HNW customers are defined as those from RMB2.4 million (inclusive) to RMB10 million, ultra-HNW customers are defined as those with RMB10 million and above.

1. Analysis by channels

CPIC Life seeks to build a diversified channel mix with agency channel and bancassurance channel at the core, in order to expand avenues of value growth.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Written premiums 193,470 171,050 13.1
Agency channel 137,380 136,211 0.9
New policies 22,622 24,520 (7.7)
Renewed policies 114,758 111,691 2.7
Bancassurance channel 41,660 22,821 82.6
New policies 29,038 14,844 95.6
Renewed policies 12,622 7,977 58.2
Group channel 12,892 11,752 9.7
New policies 11,351 10,520 7.9
Renewed policies 1,541 1,232 25.1
Other channelsnote 1,538 266 478.2

Note: Other channels include telemarketing & internet sales, and brokerage business.

(1) Agency channel

CPIC Life optimised distribution of agents, stepped up systematic capacity-building and digital empowerment to drive high-quality development of the agency channel. It put in place a quantifiable system that measures customer satisfaction and value contribution, pushed for CRM based on customer segmentation; continued to diversify products/service offerings to meet diverse needs of customers; focused on manager-level and high-performing agents in key regional markets, stepped up high-quality recruitment, enhanced basic management and agent training to promote improvement in agency force mix and productivity. In the reporting period, the channel realised RMB137.380 billion in written premiums, a year-on-year growth of 0.9%.

In the first half of 2025, monthly average number of agents reached 183,000, with a headcount of 186,000 as at the end of June, a growth of 1.6%. Of this, the number of newly-recruited agents was 39,000, a growth of 19.8% year on year. The subsidiary faithfully implemented the regulatory requirement for "consistency between filed and actual commissions", with continued effort to optimise expense mix and input-and-output ratios. Core agent headcount stood at 49,000 on a monthly average basis, with monthly average FYC per core agent of RMB7,120, down by 13.4% year on year. It continued to strengthen basic management and foster capabilities for sales of participating products, with year-on-year improvement in core manpower productivity. Monthly average FYP per core agent amounted to RMB72,870, up by 12.7%.

For 6 months ended 30 June 2025 2024 Changes (%)
Monthly average FYP per core agent (RMB) 72,870 64,637 12.7
Monthly average FYC per core agent (RMB) 7,120 8,219 (13.4)

(2) Bancassurance channel

CPIC Life persisted in value-oriented bancassurance and vigourously explored new modes of channel integration. It optimised product/service offerings to meet needs of strategic partners and customers; stepped up channel development, cemented partnerships with joint-stock banks, especially with SOE banks so as to deepen presence in bank outlets and maintain its competitive advantage in productivity; focused on building professionalism of sales teams, persisted in highquality team building, team management and training, and enhanced their digital & AI capabilities. During the reporting period, the channel realised RMB41.660 billion in written premiums, up by 82.6% year on year, and of this, regular premium of new policies amounted to RMB8.840 billion, a growth of 58.6%. A total of 13,000 bank outlets reported sales of regularpremium business, up by 28.9% year on year. The number on a monthly average basis grew by 70.2%, and of this, that of SOE bank outlets by as much as 164.9%.

(3) Group channel

CPIC Life adhered to the business strategy of "fully leveraging strengths and balancing between long-term and short-term business" for group channel. In work-site marketing, it focused on key industries and regions, leveraged Group synergy for access to more potential business opportunities, fostered professional teams, diversified business scenarios so as to improve the overall value contribution from customers. The subsidiary deepened matrix-based precise management and enhanced support for major business programmes. As for inclusive finance, it aligned ourselves with government guidelines, expanded presence in long-term care, optimised service models and improved operational efficiency, covering a total of 220 million people. During the reporting period, the channel recorded RMB12.892 billion in written premiums, a growth of 9.7% from the same period of 2024. Of this, regular premiums of new policies from work-site marketing reached RMB611 million, a growth of 21.8%.

2. Analysis by product types

CPIC Life seeks to build a comprehensive product/service system centering on "health protection, retirement/education and wealth inheritance", in a bid to provide integrated "products + services" solutions to customers across their entire life cycles. In health protection, it improved the product matrix of critical illness insurance and medical insurance, focusing on medical products for mid-tier and HNW customers. In terms of retirement & education, it deepened the supply-side reform of pension finance and strived to meet needs for sound retirement provision of key customer segments. In wealth inheritance, the company launched a suite of whole-life participating products to satisfy diverse needs for death protection, wealth inheritance and management.

At the same time, the subsidiary stepped up sales promotion of variable products, private pension products and health insurance products, as part of its efforts to optimise the business mix. For the reporting period, its participating business recorded RMB10.128 billion in written premiums from new regular-pay business, a strong growth year on year, accounting for 42.5% of total new regular-pay business written premiums; private pension products generated RMB29.030 billion in written premiums from new policies, up by 165.1% year on year; health insurance products delivered RMB10.434 billion in written premiums from new policies, an increase of 5.8%.

CPIC Life seeks to enhance its health & elderly care service system integrating "preventive care, diagnosis, treatment, rehabilitation and elderly care" to meet customers' diverse needs across their entire life cycles. In terms of health services, it continuously upgraded its "signature" service programmes, including the "CPIC Blue Passport", a one-stop medical assistance programme, early screening for nodules and carotid arteries, and health checks both at home and abroad for HNW customers. It also streamlined service processes integrating health services with direct claims payments and hospitalization advance payments, with health services covered 13.58 million customers, a year-on-year increase of 12.6%. The subsidiary explored the integrated model of medical care, health service and elderly care, with Yuanshen Rehabilitation Hospitals up and running in Xiamen, Jinan, and Guangzhou. In particular, the facility in Xiamen officially opened for business in the first half of 2025. Regarding elderly care services, CPIC Life completed the construction of 15 "CPIC Home" retirement communities in 13 cities across China, spanning the gamut from independent living to nursing care. In the first half of 2025, the number of residents, bed capacity, and occupancy rates all showed significant improvement. Besides, the company established over 220 brick-and-mortar smart experience centers for the "Longevity Retreat" home-based care programme, so as to enhance customer experience and empower its

core business development.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Written premiums 193,470 171,050 13.1
Traditional 123,250 107,064 15.1
New regular-pay business 13,725 23,640 (41.9)
Participating 37,299 38,446 (3.0)
New regular-pay business 10,128 684 1,380.7
Universal 23,046 16,399 40.5
Short-term insurance 9,875 9,141 8.0

3. Policy persistency ratio

We intensified business quality control, and as a result, the 13-month policy persistency ratio of individual customers stood at 96.6%, maintaining healthy levels; while the 25-month policy persistency ratio rose by 2.8pt year on year to 94.5%.

For 6 months ended 30 June 2025 2024 Changes
Individual customers 13-month persistency ratio (%)note 1 96.6 96.9 (0.3pt)
Individual customers 25-month persistency ratio (%)note 2 94.5 91.7 2.8pt

Notes:

  1. 13-month persistency ratio: premiums from in-force policies 13 months after their issuance as a percentage of premiums from policies which entered into force during the same period.

  2. 25-month persistency ratio: premiums from in-force policies 25 months after their issuance as a percentage of premiums from policies which entered into force during the same period.

4. Top 10 regions for written premiums

Written premiums of CPIC Life mainly came from economically developed regions or populous areas.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Written premiums 193,470 171,050 13.1
Jiangsu 23,230 20,613 12.7
Zhejiang 19,918 16,052 24.1
Henan 14,430 14,193 1.7
Shandong 14,165 13,464 5.2
Shanghai 12,041 7,813 54.1
Guangdong 11,662 9,687 20.4
Hebei 9,858 9,282 6.2
Beijing 7,585 6,006 26.3
Shanxi 7,302 6,915 5.6
Hubei 7,157 6,616 8.2
Subtotal 127,348 110,641 15.1
Others 66,122 60,409 9.5

(II) Profit analysis

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Insurance service performance and others 15,148 15,570 (2.7)
Insurance revenue 42,274 41,863 1.0
Insurance service expenses (26,337) (25,971) 1.4
Total investment incomenote 1 46,746 47,761 (2.1)
Finance underwriting gains/(losses)note 2 (39,646) (41,324) (4.1)
Investment performance 7,100 6,437 10.3
Pre-tax profit 22,248 22,007 1.1
Income tax (1,549) (1,949) (20.5)
Net profit 20,699 20,058 3.2

Notes:

  1. Total investment income includes investment income, interest income, gains/(losses) arising from change in fair value, rental income from investment properties, interest expenses on securities sold under agreements to repurchase, impairment losses on financial assets, impairment losses on other assets, and taxes and surcharges applicable to investment business, etc.

  2. Finance underwriting gains/(losses) includes insurance finance expenses for insurance contracts issued and reinsurance finance income for reinsurance contracts held.

Insurance revenue for the reporting period was RMB42.274 billion, up by 1.0% from the same period of 2024. Insurance revenue is recognised based on the insurance contract service provided during the current period and strips out investment componentsnote .

Note: Investment components refer to the amounts paid to policyholders irrespective of the occurrence of insurance events.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Insurance revenue 42,274 41,863 1.0
Long-term insurance 36,654 36,541 0.3
Short-term insurance 5,620 5,322 5.6

Insurance service expenses amounted to RMB26.337 billion, up by 1.4%. Insurance service expenses include claims payment and other related expenses incurred during the current period, excluding investment components.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Insurance service expenses 26,337 25,971 1.4
Long-term insurance 20,871 20,527 1.7
Short-term insurance 5,466 5,444 0.4

Investment performance for the reporting period amounted to RMB7.100 billion, up by 10.3% year on year. The metric is defined as the part of investment income in excess of the return required by reserves. It grew as a result of increase in scale of investment assets.

In the first half of 2025, CPIC Life achieved a net profit of RMB20.699 billion, up by 3.2% year on year.

II. CPIC Health

In the first half of 2025, CPIC Health maintained rapid business growth, with breakthroughs in proprietary business, improvement in combined ratios and progress in overall development quality. It delivered RMB1.744 billion in insurance revenue and health management fee income, a year-on-year growth of 39.3%, and a net profit of RMB39 million.

The subsidiary accelerated strategic transformation centering on "new products, new channels and new technology". It upheld the value proposition of "products are service" and strived to provide customers with caring, professional health protection and related services. It continued with product innovation: Diversified the "Lan Yi Bao" product matrix, including upgrading the million-yuan medical insurance to meet needs of sub-standard risks, realigning premium healthcare resources and developing medical insurance products for mid-tier and HNW customers to effectively enhance customer satisfaction. Strengthened coordinated development of "medical + pharmaceutical + insurance", promoted the application of medical data, expanded cooperation with care providers and achieved breakthroughs in gaining access to leading Chinese hospitals by commercial insurance products for people with pre-existing conditions. Promoted "Yi Pei Tong", an on-line, one-stop solution combining "medical treatment" and "claims settlement", as part of the company's effort to enhance customer experience in both health care and claims payment application.

Continued to leverage the middle platform of medical insurance to support CPIC P/C and CPIC Life in product development, operation and customer services. In the first half of the year, the subsidiary teamed up with CPIC Life and upgraded the "Le Xiang Bai Wan 2025", and launched exclusive high-end medical insurance products for bancassurance to drive business growth; in cooperation with CPIC P/C, it launched the family version of "Tai Jian Kang All-Around Insurance" to improve the penetration of health insurance among auto insurance customers.

Property and casualty insurance

CPIC P/C put profitability first and pursued high-quality development in an all-around way, with optimisation of business mix, marked improvement in underwriting profitability and steady growth of premium income. Auto insurance strengthened NEV business operation, stepped up precise cost control to improve operational resilience; non-auto insurance optimised business mix and advanced the risk reduction system to drive business growth. CPIC Anxin Agricultural and CPIC HK realised steady development.

I. CPIC P/C

(I) Business analysis

During the reporting period, CPIC P/C recorded primary premium income of RMB112.760 billion, up by 0.9% from the same period of 2024, with insurance revenue of RMB96.831 billion, a growth of 4.0% year on year. It posted underwriting profits of RMB3.550 billion, a growth of 30.9% year on year, with an underwriting combined ratio of 96.3%, down by 0.8pt year on year. Of this, underwriting loss ratio stood at 69.5%, down by 0.1pt; underwriting expense ratio 26.8%, down by 0.7pt.

1. Analysis by lines of business

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Primary premium income 112,760 111,803 0.9
Automobile insurance 53,606 52,167 2.8
Compulsory automobile insurance 14,300 13,877 3.0
Commercial automobile insurance 39,306 38,290 2.7
Non-automobile insurance 59,154 59,636 (0.8)
Health insurance 15,519 16,132 (3.8)
Agricultural insurance 14,293 13,650 4.7
Liability insurance 12,865 12,459 3.3
Commercial property insurance 5,081 4,542 11.9
Others 11,396 12,853 (11.3)
Personal credit guarantee insurance (612) 2,045 (129.9)
Others 12,008 10,808 11.1

(1) Automobile insurance

Automobile insurance business maintained steady growth. CPIC P/C strengthened professional development of distribution channels, adopted precise management of business quality and advanced operational digitalisation, with optimised business mix, effective cost control and improved profitability. In the first half of 2025, it reported primary premium income of RMB53.606 billion from automobile business, a growth of 2.8% year on year, with the share of household vehicles increasing by 1.4pt. Premiums from NEV business amounted to RMB10.596 billion, accounting for 19.8% of total auto premiums. Underwriting combined ratio of the business stood at 95.3%, down by 1.8pt from the same period of 2024.

(2) Non-automobile insurance

CPIC P/C stepped up efforts to optimise business mix of non-auto insurance, advanced the integrated risk reduction system of "prevention, reduction, relief and compensation" in an allaround way. During the reporting period, it posted RMB59.154 billion in primary premium income from non-auto insurance, down by 0.8% year on year. Due to proactive adjustment of business mix, primary premium income from personal credit guarantee insurance was RMB-612 million, down by 129.9% from the same period of 2024. Underwriting combined ratio of nonautomobile insurance stood at 97.6%, up by 0.4pt year on year. Excluding the impact of personal credit guarantee insurance, overall underwriting combined ratio of non-auto business was 94.8%, down by 2.3pt. Of the major business lines, health insurance achieved a turnaround in profitability, with commercial property insurance seeing further improvement in u/w profitability.

Health insurance continued to cement cooperation with governments, enhanced business quality control, improved risk management and customer service capabilities, so as to consolidate the foundation of government-sponsored business. As for commercial business, it strived to put in place a broad-based system of growth drivers via scenario-based sales model innovation, precise product matching and AI-enabled process re-engineering. During the reporting period, health insurance reported RMB15.519 billion in primary premium income, down by 3.8% year on year, with an underwriting combined ratio of 99.3%, down by 1.5pt.

Agricultural insurance continued to roll out full-cost indemnity insurance of the 3 staple crops and other important agricultural products to safeguard China's agricultural production; focused on livestock and fishery insurance, developed new products for specialty agricultural products in order to build a multi-tiered agricultural insurance system; strengthened the application of new technologies, including the use of AI-enabled insurance application and claims settlement processes, and continuously improved the quality and efficiency of insurance services. During the reporting period, the business line delivered RMB14.293 billion in primary premium income,

up by 4.7% year on year, with an underwriting combined ratio of 98.8%, up by 1.0pt.

Liability insurance centred on needs of China's new development stage, stepped up support for modernisation of state governance, the real economy and society. At the same time, it exercised stringent control of high-risk business, including launching special campaigns to eliminate or improve projects/business with high claims ratios, so as to boost high-quality development of the business. During the reporting period, the business line delivered RMB12.865 billion in primary premium income, up by 3.3% from the same period of 2024, with an underwriting combined ratio of 99.4%, the same as that of the first half of 2024.

Commercial property insurance continued to consolidate its leading position in traditional business, including maintaining competitive edge in sectors of power generation and petrochemicals, as well as in business from blanket insurance policies. On the other hand, CPIC P/C fostered growth drivers from strategic and emerging sectors such as green energy and semiconductors, while boosting business development from high-quality micro- and small-sized businesses, bancassurance and cross-sell. At the same time, it made efforts to establish an integrated risk management system, built capabilities in risk survey, u/w and claims management under the model of "insurance + technology + service". In the first half of 2025, the company generated RMB5.081 billion in primary premium income from the business line, up by 11.9% year on year, with an underwriting combined ratio of 92.8%, down by 1.3pt.

(3) Key financials of major business lines

Unit: RMB million

For 6 months ended 30 June 2025
Name of insurance Primary premium
income
Amounts insured Underwriting
profit
Underwriting
combined ratio (%)
Automobile insurance 53,606 57,083,886 2,512 95.3
Health insurance 15,519 267,834,550 37 99.3
Agricultural insurance 14,293 405,723 97 98.8
Liability insurance 12,865 2,196,639,291 64 99.4
Commercial property insurance 5,081 12,677,481 319 92.8

2. Top 10 regions for premium income

CPIC P/C derived RMB73.785 billion in primary premium income from the top 10 regional markets, up by 3.0% year on year and accounting for 65.4% of total premiums.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Primary premium income 112,760 111,803 0.9
Guangdong 14,415 13,804 4.4
Jiangsu 13,178 12,284 7.3
Zhejiang 10,779 10,497 2.7
Shanghai 8,183 7,667 6.7
Shandong 5,809 6,165 (5.8)
Sichuan 4,699 4,539 3.5
Hunan 4,253 4,110 3.5
Beijing 4,197 3,765 11.5
Hebei 4,159 4,335 (4.1)
Henan 4,113 4,441 (7.4)
Subtotal 73,785 71,607 3.0
Others 38,975 40,196 (3.0)

3.Premium income by channels

The primary premium income by channels during the reporting period is set out below.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Primary premium income 112,760 111,803 0.9
Agency 60,293 58,003 3.9
Direct 35,594 37,974 (6.3)
Brokerage 16,873 15,826 6.6

(II) Profit analysis

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Insurance revenue 96,831 93,076 4.0
Insurance service expenses (91,183) (88,119) 3.5
Net income/(losses) from reinsurance
contracts heldnote 1
(829) (234) 254.3
Underwriting finance losses and othersnote 2 (1,269) (2,011) (36.9)
Underwriting profit 3,550 2,712 30.9
Underwriting combined ratio (%) 96.3 97.1 (0.8pt)
Total investment incomenote 3 4,151 3,742 10.9
Net of other income and expenses (445) (423) 5.2
Pre-tax profit 7,256 6,031 20.3
Income tax (1,523) (1,239) 22.9
Net profit 5,733 4,792 19.6

Notes:

    1. Net income/(losses) from reinsurance contracts held include allocation of reinsurance premiums, recoveries of insurance service expenses from reinsurers, reinsurance finance income for reinsurance contracts held, etc.
    1. Underwriting finance losses and others include insurance finance income or expenses and changes in insurance premium reserves, etc.
    1. Total investment income includes investment income, interest income, gains/(losses) arising from change in fair value, rental income from investment properties, interest expenses on securities sold under agreements to repurchase, interest expense on capital replenishment bonds, taxes and surcharges applicable to investment business and impairment losses on financial assets, etc.

Insurance revenue for the reporting period amounted to RMB96.831 billion, up by 4.0% year on year, higher than the growth rate of premium income. Of this, insurance revenue of automobile insurance reached RMB53.931 billion, up by 3.0%, and that of non-auto insurance RMB42.900 billion, an increase of 5.4%.

For 6 months ended 30 June 2025 2024 Changes (%)
Insurance revenue 96,831 93,076 4.0
Automobile insurance 53,931 52,361 3.0
Non-automobile insurance 42,900 40,715 5.4

Insurance service expenses for the reporting period amounted to RMB91.183 billion, up by 3.5% from the same period of 2024. Of this, insurance service expenses of automobile insurance reached RMB50.836 billion, up by 1.9%, and that of non-auto insurance RMB40.347 billion, an increase of 5.5% year on year.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Insurance service expenses 91,183 88,119 3.5
Automobile insurance 50,836 49,884 1.9
Non-automobile insurance 40,347 38,235 5.5

Net losses from reinsurance contracts held amounted to RMB829 million, an increase by RMB595 million year on year, largely due to impact of scale and mix of business ceded, and loss ratios of related business.

Underwriting finance losses and others amounted to RMB1.269 billion, down by 36.9% year on year, mainly because of interest rate movements, which led to a decrease in the time value of liabilities.

Total investment income. CPIC P/C continued with capacity-building for investment outsourcing, optimised dividend strategy of equity investments, and enhanced its ability to capture opportunities on the bond market. Total investment income for the reporting period reached RMB4.151 billion, up by 10.9% year on year, mainly as a result of increased gains from securities trading and dividend income.

As a result, in the first half of 2025, CPIC P/C reported a net profit of RMB5.733 billion, up by 19.6% from the same period of 2024.

II. CPIC Anxin Agricultural

As a specialised agricultural insurance company, CPIC Anxin Agricultural continued to expand government-sponsored business, rolled out full-cost indemnity insurance for the 3 staple crops and accelerated the development of niche commercial agricultural insurance. In the first half of 2025, it recorded RMB1.239 billion in primary premium income, up by 1.1% year on year; and of this, agricultural insurance reported primary premium income of RMB899 million, up by 7.7%. Insurance revenue amounted to RMB1.156 billion, down by 3.3%, with an underwriting combined ratio of 100.9%, staying flat versus the same period of 2024. Net profit amounted to RMB99 million, an increase of 39.4% from the same period of the preceding year.

III. CPIC HK

We conduct overseas P/C business via CPIC HK. As at 30 June 2025, its total assets stood at RMB1.382 billion, with net assets of RMB384 million. Primary premium income for the reporting period amounted to RMB187 million, up by 6.9% year on year, with an underwriting combined ratio of 98.0%, and a net profit of RMB16 million.

Asset management

We persisted in value, long-term, prudent and responsible investing, with long-term commitment to value investing, global awareness of asset allocation, "big picture" mindset for insurance asset management, optimal balance between risk and return, forward-looking approach towards emerging sectors and market-based mechanisms of incentives and constraint, which enabled us to maintain excellence in ALM. To ensure long-term and sustainable ALM, we explored new approaches and further enhanced the ALM system across market cycles, continued to build capabilities in professional investment research, risk control and compliance management. Within the SAA framework, we conducted disciplined and yet flexible Tactical Asset Allocation (TAA), exercised stringent control of credit risk and extended duration of fixed income assets to mitigate the reinvestment risk; made vigourous effort to diversify investment channels and enhanced pro-active management of equity assets, with initial success in overseas investment. As a result, we achieved solid investment performance, with Group AuM on steady increase.

I. Group AuM

As of the end of June 2025, Group AuM totalled RMB3,772.961 billion, rising 6.5% from the end of 2024. Of this, Group in-house investment assets amounted to RMB2,924.728 billion, a growth of 7.0%, and third-party AuM RMB848.233 billion, an increase of 5.0%, with a management fee income of RMB1.138 billion, up by 10.5% from the same period of 2024.

Unit: RMB million
30 June 2025 31 December 2024 Changes (%)
Group AuM 3,772,961 3,542,660 6.5
Group in-house investment assets 2,924,728 2,734,457 7.0
Third-party AuM 848,233 808,203 5.0
CPIC AMC 298,787 294,187 1.6
Changjiang Pension 429,925 406,401 5.8
CPIC Fund 109,636 99,806 9.8
CPIC Capital 951 936 1.6
CPIC Investment (HK) 8,934 6,873 30.0

II. Group in-house investment assets

In the first half of 2025, given increased support from China's macro-economic policies and continued efforts in industrial upgrade, China's economy further unleashed its potential, exhibiting strong resilience and a positive momentum of recovery. On the back of favourable government policies and a pickup in consumption, market demand stabilised and started to recover. New Quality Productive Forces, such as artificial intelligence, the digital economy and the green economy, added impetus to China's economic growth. In the field of equity assets, the A-share market, driven by policy support and improved economic fundamentals, overall showed an upward trend amid fluctuations, which created structural opportunities for investors. In fixed income assets, the market evolved around the themes of fundamental restoration and the intensity of policy intervention, with interest rates fluctuating at low levels and within a narrower band.

In recent years, we have been exploring a new approach towards ALM, i.e., multi-dimensional matching of assets and liabilities, and have initially developed a new ALM method known as "net investment yield plus". Considering a wide range of factors such as product management, investment management, financial and capital management, it seeks to establish a unified platform of systems with standardized terminology and unified management tools to optimise coordination of assets and liabilities.

Based on our outlook for long-term macro-economic trends, we followed and fine-tuned the "dumbbell-shaped" asset allocation strategy, i.e., continuously increasing allocation into long-

term T-bonds to extend duration of fixed income assets, while moderately increasing investments in secondary-market equity assets and alternative assets including private equity to enhance long-term returns. At the same time, to manage credit risk, we continued to control the share of investment in corporate debt securities. We conducted disciplined and yet flexible TAA under the guidance of SAA, pro-actively responded to the dual challenge of equity market volatility and secular decline of interest rates.

Committed to value growth, we continued with capacity-building in professional investment management, maintained a rigorous investment management system and explored a wide range of strategies including overseas investment and innovative investment instruments; coordinated between improving asset allocation capabilities and strengthening capital constraints so as to cement the foundation of capital and investment management in an all-around way; further improved credit risk early-warning and mitigation to enhance overall risk management; continued to strengthen ESG investment management, stepped up green investment, and explored incorporating climate factors into SAA.

In terms of investment concentration, our investments are concentrated in financial services, communications & transport, infrastructure and energy, demonstrating resilience in the face of risks. Our equity investments spread across a wide range of instruments; as for fixed income assets, the debt issuers boasted strong overall strength, and apart from government bonds, our counter-parties mainly include China State Railway Group Co., Ltd., and large SOEs such as major state-owned commercial banks.

(I) Group consolidated investment portfolios

Unit: RMB million
30 June 2025 Share (%) 31 December 2024 Share (%)
Group investment assets (total) 2,924,728 100.0 2,734,457 100.0
By investment category
Cash and cash equivalents 67,753 2.3 40,262 1.5
Term deposits 178,219 6.1 173,818 6.4
Debt category financial assets 2,193,540 75.0 2,074,168 75.9
-Debt securities 1,826,050 62.5 1,642,181 60.1
-Bond funds 5,583 0.2 9,663 0.4
-Preferred shares 47,993 1.6 49,227 1.8
-Debt investment plansnote 1 259,477 8.9 265,403 9.7
-Wealth management productsnote 2 29,684 1.0 71,421 2.6
-Others 24,753 0.8 36,273 1.3
Equity category financial assets 433,533 14.8 398,210 14.5
-Stocks 283,125 9.7 255,065 9.3
-Equity funds 61,166 2.1 52,679 1.9
-Wealth management productsnote 2 16,006 0.5 20,795 0.8
-Others 73,236 2.5 69,671 2.5
Long-term equity investments 13,148 0.4 22,520 0.8
Investment properties 28,396 1.0 8,951 0.3
Other investments note 3 10,139 0.4 16,528 0.6
By accounting measurement
Financial assets at amortised costnote 4 55,357 1.9 64,844 2.4
Financial assets at fair value through other
comprehensive incomenote 5
1,900,545 65.0 1,749,986 64.0
Financial assets at fair value through profit
or lossnote 6
674,412 23.1 667,225 24.4
Long-term equity investments 13,148 0.4 22,520 0.8
Othersnote 7 281,266 9.6 229,882 8.4

Notes:

  1. Debt investment plans mainly include infrastructure and real estate projects.

  2. Wealth management products mainly include wealth management products issued by commercial banks, products by insurance asset management companies, collective trust plans by trust firms, special asset management plans by securities firms and credit assets backed securities by banking institutions, etc.

  3. Other investments mainly include restricted statutory deposits and derivative financial assets, etc.

  4. Financial assets at amortised cost include financial assets at amortised cost on consolidated financial statements.

  5. Financial assets at fair value through other comprehensive income include debt investments at fair value through other comprehensive income and equity investments at fair value through other comprehensive income on consolidated financial statements.

  6. Financial assets at fair value through profit or loss include financial assets at fair value through profit or loss and derivative financial assets on consolidated financial statements.

  7. Others mainly include cash at bank and on hand, securities purchased under agreements to resell, term deposits, restricted statutory deposits and investment properties, etc.

1. By investment category

As of the end of the reporting period, the share of bond securities investments was 62.5%, an increase of 2.4pt from the end of 2024. Of this, treasury bonds, local government bonds and financial bonds issued by government-sponsored banks made up 47.4% of total investment assets. The duration on fixed income assets reached 12.0 years, extended by 0.6 years versus the end of 2024. Moreover, 98.3% of enterprise bonds and financial bonds issued by nongovernment-sponsored banks had an issuer/debt rating of AA or above. Of this, the share of AAA reached 96.3%. We boasted a professional internal credit-rating team and sound credit risk management systems covering the entire bond securities investment process, namely, before, during and after the investment. We continued to improve the Group-wise integrated creditrating management system, evaluated the credit-ratings of both the debt and debt issuers and identified the credit risk based on our internal credit-rating systems, while considering other factors such as macroeconomic conditions and external credit-ratings in order to make wellinformed investment decisions. At the same time, to pro-actively control the credit risk of the stock of bond holdings, we followed a uniform and standardised set of regulations and procedures, combining both regular and unscheduled follow-up tracking post the investment. Our corporate/enterprise bond holdings spread over a wide range of sectors with good diversification effect; we set great store by credit risk management, strictly control the exposure to the real estate sector, and carefully select investment targets to ensure that the risk is manageable. Overall, the debt issuers of our investments all boasted sound financial strength, with credit risk under control.

The share of equity financial assets stood at 14.8%. Of this, stocks and equity funds accounted for 11.8% of total investment assets, up by 0.6pt from the end of 2024. On the back of disciplined and yet flexible TAA processes, we continued to promote resource realignment for investment research and the building of investment research platforms, enhanced tracking and analysis of market conditions; fully considered the impact of the New Accounting Standards, made effective use of accounting classification of assets, conducted pro-active management of equity assets, strengthened the core share-dividend strategy while developing satellite strategies around it, with solid investment results.

As of the end of the reporting period, non-public financing instruments (NPFIs) totalled RMB292.964 billion, accounting for 10.0% of total investment assets. While ensuring full compliance with regulatory requirements and internal risk control policies, we persisted in prudent management as is inherently required of insurance companies, staying highly selective of debt issuers and projects. The underlying projects spread across sectors like infrastructure, communications & transport, non-bank financial institutions and real estate, which were geographically concentrated in China's economically prosperous areas such as Beijing, Sichuan, Hubei, Shandong, Jiangsu, etc.

Overall, the credit risk status of our NPFI holdings is in the comfort zone. 98.3% of NPFIs had external credit-ratings, and of these, the share of AAA reached 98.3%, and that of AA+ and above 98.3%. 73.7% of NPFIs were exempt from debt issuer external credit-ratings, and the rest was secured with credit-enhancing measures such as guarantee or pledge of collateral, with the overall credit risk under control.

Sectors Share of
investments (%)
Nominal
yield (%)
Average
duration (year)
Average remaining
duration (year)
Infrastructure 38.9 4.2 8.8 5.3
Communications & transport 23.1 4.2 9.5 5.6
Non-bank financial institutions 16.0 3.5 5.0 4.4
Real estate 11.2 4.1 9.5 6.3
Energy and manufacturing 4.1 4.4 9.1 4.9
Others 6.7 4.4 9.1 5.0
Total 100.0 4.1 8.4 5.3

Mix and distribution of yields of non-public financing instruments

Note: Non-public financing instruments include wealth management products issued by commercial banks, debt investment plans, collective trust plans by trust firms, special asset management plans by securities firms and credit assets backed securities by banking institutions, etc.

2. By accounting methods

Under the New Accounting Standards, investment assets of the Company are mainly classified into 3 categories: financial assets at fair value through other comprehensive income, financial assets at fair value through profit or loss, and others. The share of financial assets at fair value through other comprehensive income increased by 1.0pt from the end of 2024, mainly because of increased share of bond and stock investments in the category; that of financial assets at fair value through profit or loss fell by 1.3pt from end of the preceding year, mainly due to decrease in the share of bonds, bond funds and wealth management products in the category; the proportion of financial assets at amortised cost fell by 0.5pt, largely because of reduced share of debt investment plans in the category; the share of long-term equity investments fell by 0.4pt from the end of 2024, mainly due to slightly decreased share of assets under joint ventures of the Company; that of others rose by 1.2pt, mainly as a result of increase in the share of cash and cash equivalents in the category.

(II) Group consolidated investment income

For the reporting period, net investment income totalled RMB42.567 billion, up by 8.9% from the same period of 2024. This stemmed mainly from increased dividend income. Net investment yield reached 1.7%, down by 0.1pt year on year.

Total investment income amounted to RMB56.889 billion, up by 1.5% year on year, mainly attributable to net investment income and a sharp increase in securities trading gains, which partially offset declines in other aspects. Total investment yield and comprehensive investment yield stood at 2.3% and 2.4% respectively, down by 0.4pt and 0.6pt respectively year on year, largely due to reduced gains from fair value movement of fixed income assets through profit or loss.

Unit: RMB million
For 6 months ended 30 June 2025 2024 Changes (%)
Interest income 29,061 27,769 4.7
Dividend incomenote 1 13,195 10,974 20.2
Rental income from investment properties 311 346 (10.1)
Net investment income 42,567 39,089 8.9
Gains/(losses) from securities trading 7,018 (3,957) (277.4)
Gains arising from changes in fair value 5,856 20,945 (72.0)
Impairment losses of financial assets (10) 84 (111.9)
Other incomenote 2 1,458 (124) (1,275.8)
Total investment income 56,889 56,037 1.5
Net investment yield (%)note 3 1.7 1.8 (0.1pt)
Total investment yield (%)note 3 2.3 2.7 (0.4pt)
Comprehensive investment yield (%)notes 3,4 2.4 3.0 (0.6pt)

Notes:

  1. Dividend income included dividend income and gains from financial instruments held for trading and other financial instruments at fair value through profit or loss during the holding period, etc.

  2. Other income included share of profit/(loss) of associates and joint ventures, etc.

  3. The impact of securities sold under agreements to repurchase was considered in the calculation of net investment yield. Net/total investment yield and comprehensive investment yield were not annualised. Average investment assets as the denominator in the calculation of net/total investment yield and comprehensive investment yield were computed based on the Modified Dietz method and did not consider the impact of the fair value change of debt investments at fair value through other comprehensive income.

  4. The figure as the numerator in the calculation of comprehensive investment yield included total investment income, the change of equity investments at fair value through other comprehensive income at current period and amounts of transferring to retained profits at current period caused by the impact of equity investments at fair value through other comprehensive income, etc.

III. Third-party AuM

Group third-party AuM amounted to RMB848.233 billion, and of this, that of CPIC AMC totalled RMB298.787 billion, with a share of 35.2%; and that of Changjiang Pension RMB429.925 billion, accounting for 50.7%.

(I) CPIC AMC

In the first half of 2025, amid a complex, fast-changing economic environment, there was rising uncertainty and volatility on the market. As such, CPIC AMC focused on value creation, seized structural opportunities of the market, and strived for steady development of third-party asset management business. As of the end of the reporting period, its third-party AuM amounted to RMB298.787 billion, an increase of 1.6% from the end of 2024.

During the reporting period, though interest rates stayed at low levels, financing needs of businesses were relatively subdued. In alternative investment business, the subsidiary continued to focus on borrowers with high credit-ratings, boosted the development of ABS business to support the real economy. As of the end of the reporting period, the scale of newlyregistered alternative investment products by CPIC AMC amounted to around RMB6 billion. It steadily proceeded with exchange-based ABS and infrastructure REITs, and completed the registration and issuance of 3 ABS products cumulatively, involving a total sum of around RMB2 billion.

In the first half of 2025, CPIC AMC focused on customers' needs in a low interest rate environment. In particular, it strived to satisfy diverse needs for investment of its key customers via a range of strategies, from pure debt to "fixed income +" and "share dividend", which reinforced the competitive edge of its core strategies while diversifying its overall product lineup. As of the end of the reporting period, CPIC AMC reported RMB265.744 billion in AuM under third-party portfolio asset management products and dedicated accounts combined, a growth of 3.1% from the end of 2024.

(II) Changjiang Pension

During the reporting period, Changjiang Pension stayed committed to its core business of pension finance, continued to build long-term capabilities, focusing particularly on enhancing its competitive advantage, with further progress on multiple fronts. As at 30 June 2025, its thirdparty assets under trustee management amounted to RMB522.264 billion, up by 8.5% from the end of 2024; third-party assets under investment management reached RMB429.925 billion, up by 5.8% from the end of 2024.

The subsidiary made steadfast efforts to diversify its pension fund management strategies, with steady increase in scale of corporate debt portfolios under social pension schemes and leading cumulative investment performance in industry. Its corporate annuity business continued to grow. It was among the first batch of service providers of Xiong An New Area after the establishment of "opt-in" mechanisms for corporate annuities. Two corporate annuity schemes were chosen for Xiong An for the first batch, and Changjiang Pension's "Jinse Wanqing (collective) Corporate Annuity Plan" was one of them. According to data on 3-year cumulative investment yields released by the Ministry of Human Resources and Social Security, the company ranked 1st and 2nd place for collective-plan and single-plan fixed income portfolios respectively. It was also among the top 1/3 of the industry for performance of single-plan portfolios with equity assets.

Analysis of specific items

I. Items concerning fair value accounting

The financial instruments measured at fair value are detailed in notes XI and XII of financial statements.

II. Structured entities controlled by the Company

The structured entities controlled by the Company are detailed in note IV-3 of financial statements.

III. Solvency

As per regulatory requirements, we calculate and disclose our core capital, actual capital, minimum required capital and solvency margin ratios. As at 30 June 2025, the solvency margin ratios of the Group, CPIC Life, CPIC P/C, CPIC Health, and CPIC Anxin Agricultural were all above regulatory minimum levels.

30 June 2025 31 December 2024 Reasons of change
CPIC Group
Core capital 385,700 358,078 Change in interest rates, capital
market fluctuations and profit for the
period
Actual capital 534,478 503,745 Change in interest rates, capital
market fluctuations and profit for the
period
Minimum required capital 202,581 197,079 Growth of insurance business and
changes to asset allocation
Core solvency margin ratio (%) 190 182
Comprehensive solvency margin ratio (%) 264 256
CPIC Life
Core capital 232,439 213,418 Change in interest rates, capital
market fluctuations and profit for the
period
Actual capital 366,386 345,510 Change in interest rates, capital
market fluctuations and profit for the
period
Minimum required capital 170,640 164,313 Growth of insurance business and
changes to asset allocation
Core solvency margin ratio (%) 136 130
Comprehensive solvency margin ratio (%) 215 210

Unit: RMB million

CPIC P/C

Core capital 59,987 58,153 Change in interest rates, capital
market fluctuations and profit for the
period
Actual capital 73,696 70,698 Change in interest rates, capital
market fluctuations and profit for the
period
Minimum required capital 30,629 31,852 Growth of insurance business and
changes to asset allocation
Core solvency margin ratio (%) 196 183
Comprehensive solvency margin ratio (%) 241 222
CPIC Health
Core capital 3,658 3,294 Change in interest rates, capital
market fluctuations and profit for the
period
Actual capital 4,468 4,040 Change in interest rates, capital
market fluctuations and profit for the
period
Minimum required capital 2,045 1,716 Growth of insurance business and
changes to asset allocation
Core solvency margin ratio (%) 179 192
Comprehensive solvency margin ratio (%) 218 235
CPIC Anxin Agricultural
Core capital 2,787 2,868 Change in interest rates, capital
market fluctuations and profit for the
period
Actual capital 3,099 3,153 Change in interest rates, capital
market fluctuations and profit for the
period
Minimum required capital 991 940 Growth of insurance business and
changes to asset allocation
Core solvency margin ratio (%) 281 305
Comprehensive solvency margin ratio (%) 313 335

Please refer to the summaries of solvency reports (excerpts) published on the websites of SSE (www.sse.com.cn), SEHK (www.hkexnews.hk), LSE (www.londonstockexchange.com) and the Company (www.cpic.com.cn) for more information about the solvency of CPIC Group and its main insurance subsidiaries.

IV. Insurance contract liabilities

Insurance contract liabilities of the Company consist of liabilities for remaining coverage (LRC) and liabilities for incurred claims (LIC). LRC comprises "excluding loss component" and "loss component".

As at 30 June 2025, the remaining balance of LRC amounted to RMB2,317.611 billion, representing an increase of 9.1% from the end of 2024. The remaining balance of LIC amounted to RMB110.972 billion, up by 5.2% from the end of 2024. The rise in insurance contract liabilities was mainly caused by business growth and accumulation of insurance liabilities.

31 December 2024 Change during the
period
30 June 2025
Total insurance contract liabilities 2,229,514 199,069 2,428,583
Liabilities for remaining coverage 2,124,017 193,594 2,317,611
Excluding loss component 2,109,847 193,730 2,303,577
Loss component 14,170 (136) 14,034
Liabilities for incurred claims 105,497 5,475 110,972
Total insurance contract liabilities 2,229,514 199,069 2,428,583
Component not measured by PAA 2,092,549 193,286 2,285,835
Component measured by PAA 136,965 5,783 142,748

Unit: RMB million

V. Reinsurance business

We determine retained insured amounts and reinsurance ratio according to insurance regulations and our business development and risk management needs. To lower the concentration risk of reinsurance, we also entered into reinsurance agreements with various industry-leading reinsurance companies. The criteria for the selection of reinsurance companies include their financial strength, professional expertise, service level, claims settlement efficiency and price. Generally speaking, we prefer domestic and overseas reinsurance/insurance companies with proven records and in compliance with regulatory regulations, including international reinsurance companies with ratings of A- or above. Our reinsurance partners mainly include China Reinsurance (Group) Corporation and its subsidiaries, i.e., China Property & Casualty Reinsurance Company Ltd. and China Life Reinsurance Company Ltd., Swiss Reinsurance Company Ltd and Munich Reinsurance Company.

VI. Main subsidiaries & associates and equity participation

As of the end of the reporting period, the Company's mains subsidiaries, associates and equity participation are set out as below:

Unit: RMB million
Company Main business scope Registered
capital
Group
shareholdingnote 2
Total assets Net assets Operating
income
Operating
profit
Net
profit
China Pacific
Property
Insurance Co.,
Ltd.
Property indemnity
insurance; liability
insurance; credit and
guarantee insurance;
short-term health and
accident insurance;
reinsurance of the above
said insurance; insurance
funds investment as
approved by relevant laws
and regulations; other
business as approved by
CBIRC.
19,948 98.5% 244,389 65,594 101,370 7,255 5,733
China Pacific Life
Insurance Co.,
Ltd.
Personal lines insurance
including life insurance,
health insurance, accident
insurance, etc.
denominated in RMB or
foreign currencies;
reinsurance of the above
said insurance; statutory
life/health insurance;
agency and business
relationships with
domestic and overseas
insurers and
organisations, loss
adjustment, claims and
other business entrusted
from overseas insurance
organisations; insurance
funds investment as
prescribed by Insurance
Law of the PRC and
relevant laws and
regulations; international
insurance activities as
approved; other business
as approved by CBIRC.
8,628 98.3% 2,654,227 154,684 91,745 22,204 20,658
Changjiang
Pension
Insurance Co.,
Ltd.
Outsourced money
management business
denominated in RMB or
foreign currencies for the
purpose of pension
provisions; asset
management of owner's
equity funds
denominated in RMB or
foreign currencies;
advisory business
pertaining to asset
management; other
business as approved by
NFRA; other business as
approved by other
departments of
the State Council.
3,000 61.1% 6,736 4,209 827 347 263
Pacific Asset
Management Co.,
Ltd.
Asset management of
owner's equity funds and
insurance funds;
outsourcing of fund
management; advisory
services relating to asset
management; other asset
management business as
allowed by the PRC laws
and regulations.
2,100 99.7% 5,847 4,662 789 454 358
Pacific Health
Insurance Co.,
Ltd.
Health and accident
insurance denominated in
RMB or foreign
currencies; health
insurance sponsored by
the government or
supplementary to state
medical insurance
policies; reinsurance of
the above said insurance;
health insurance-related
advisory and agency
business; insurance funds
investment as approved
by PRC laws and
regulations; other
business as approved by
CBIRC.
3,600 99.7% 10,257 3,311 1,933 62 39
Pacific Anxin
Agricultural
Insurance Co.,
Ltd.
Agricultural insurance;
property indemnity
insurance; liability
insurance; statutory
liability insurance; credit
and guarantee insurance;
short-term health
insurance and accident
insurance; property
insurance relating to rural
areas and farmers;
reinsurance of the above
said insurance; insurance
agency business.
1,080 66.8% 6,161 3,009 1,262 101 99
CPIC Fund
Management Co.,
Ltd.
Fund management
business; the launch of
mutual funds and other
business as approved by
competent authorities of
the PRC.
150 50.8% 1,129 874 255 72 57

Notes:

  1. Figures for companies in the table are on an unconsolidated basis. For other information pertaining to the Company's main subsidiaries, associates or invested entities, please refer to "Review and analysis of operating results" of this report, and "Scope of consolidation" and "Long-term equity investments" in Notes of the Financial Report.

  2. Figures for Group shareholding include direct and indirect shareholdings.

VII. Seizure, attachment, and freeze of major assets or their pledge as collateral

The Company's assets are mainly financial assets. The repurchase of bonds forms part of the Company's day-to-day securities investment activities, and as of the end of the reporting period, no abnormality was detected.

VIII. Gearing ratio

30 June 2025 31 December 2024 Changes
Gearing ratio (%)note 90.7 89.7 1.0pt

Note: Gearing ratio = (total liabilities + non-controlling interests)/total assets.

Outlook

I. Market environment and trends

Since the beginning of this year, the world has experienced significant change. Though facing multiple risks and challenges, China's economy remained stable, with New Quality Productive Forces gaining momentum, pointing to strong economic vitality and resilience. The fundamentals and long-term prospects of China's economic growth remain unchanged. The Chinese insurance industry is in a strategic window of opportunity for high-quality development, with insurance playing an increasingly important role as a "cushion of economic shocks" and a "social stabilizer", which will further unlock insurance demand and market potential. Meanwhile, tightening of financial regulation, the priority assigned to risk prevention, and a business philosophy centering on quality and profitability would pave the way for the return to the basics of the industry, which will help with long-term, healthy development of China's insurance market, especially the leading players.

II. Business strategies and plans

We will adhere to high-quality development, advance reforms in an all-around way, focusing particularly on implementing the 3 Key Strategies of "health service & elderly care", "internationalization" and "AI+"; continue to strengthen the "Five Financial Priorities", uphold value creation, coordinate significant bottom-line improvement and reasonable top-line growth, continuously enhance service capabilities and operational efficiency, as part of our efforts to transform ourselves into a top-notch insurance and financial services conglomerate with strong market leadership and international competitiveness.

III. Major risks and mitigating measures

In 2025, the international landscape remains complex and severe, with persistent flaring of geopolitical conflicts. The insurance industry's transformation is in a critical phase, facing arduous tasks such as reform of the life insurance tied-agent system and resolution of risks of small- and medium-sized financial institutions. While a low-interest-rate environment continues to put pressure on asset liability matching, extreme weather events and natural disasters will drive up the combined ratio of P/C insurance business, and pilot programmes of insurance fund investment and use of new technologies require more effective risk management.

In the face of such risks, we will stay prudent in our risk appetite to pursue high-quality development based on effective risk control. We will continue to carefully handle risks and uncertainties in our business operation and leverage insurance as a "cushion of economic shocks" and a "social stabiliser". To this end, first, we shall adhere to value growth, enhance the constraint of risk appetite for business development, continue to strengthen the risk management system and integrated risk management capabilities; second, focus on key risk areas, adopt a "look-through" approach, improve coordination in control of major risks to solidify the "line of defence"; third, enhance digitalisation and use of AI technology, roll out digital, on-line systems for risk identification, risk assessment, risk monitoring and risk early warning, so as to improve the effectiveness of forward-looking risk management in an allaround way.

Embedded value

To: China Pacific Insurance (Group) Co., Ltd.

Board of Directors

Independent Actuarial Review Opinion on Embedded Value

Towers Watson Management Consulting (Shenzhen) Co. Ltd Beijing Branch ("WTW" or "we") has been engaged by China Pacific Insurance (Group) Company Limited ("CPIC Group") to review the embedded value information of CPIC Group as of 30 June 2025.

This review opinion is addressed solely to CPIC Group in accordance with the terms of our engagement letter, and sets out the scope of our work and our conclusions. To the fullest extent permitted by applicable law, we do not accept or assume any responsibility, duty of care or liability to anyone other than CPIC Group for or in connection with our review work, the opinions we have formed, or for any statement set forth in this report.

Scope of work

WTW's scope of work comprised:

  • a review of the methodology used to develop the embedded value of CPIC Group and the value of half year's sales of China Pacific Life Insurance Co. Ltd. ("CPIC Life") and China Pacific Life Insurance (H.K.) Co. Ltd. ("CPIC Life (HK)") as of 30 June 2025. For the business in Mainland China, the methodology is subject to the requirements of the "CAA Standards of Actuarial Practice: Appraisal of Embedded Value" issued by the China Association of Actuaries ("CAA") in November 2016. For the business in Hong Kong, traditional deterministic discounted cash flow approach has been used for embedded value valuation. Capital requirement is determined based on the Hong Kong Risk-Based Capital regulatory regime, and being considered in value of in force business and adjusted net worth;
  • a review of the economic and operating assumptions used to develop CPIC Group's embedded value and the value of half year's sales of CPIC Life and CIPC Life (HK) as of 30 June 2025;

a review of the results of CPIC Group's calculation of the value of in-force business, the value of half year's sales of CPIC Life and CPIC Life (HK), the results of the analysis of movement of embedded value of CPIC Group, and the sensitivity results of the value of in-force business and value of half year's sales of CPIC Life and CPIC Life (HK).

Opinion

As a result of our review of the embedded value of CPIC Group as of 30 June 2025 and the value of half year's sales of CPIC Life and CPIC Life (HK) prepared by CPIC Group, WTW has concluded that:

  • The methodology used is consistent with industry practice in each respective market as regards to a traditional deterministic discounted cash flow approach. For the business in Mainland China, the methodology is also consistent with the requirements of the "Appraisal of Embedded Value" standard issued by the CAA;
  • The operating assumptions have been set with appropriate regard to past, current and expected future experience;
  • The economic assumptions have been set with regard to current market information.

WTW has performed reasonableness checks and analysis of CPIC Group's embedded value and value of half year's sales of CPIC Life and CPIC Life (HK) as of 30 June 2025, and WTW has concluded that these results have been determined in a manner consistent with the methodology and assumptions described in the Embedded Value Section of CPIC Group's 2025 interim report and that the aggregate results are reasonable in this context.

WTW confirms that the results shown in the Embedded Value section of CPIC Group's 2025 interim report are consistent with those reviewed by WTW.

In carrying out our review we have relied on the accuracy of audited and unaudited data and information provided by CPIC Group.

For and on behalf of WTW

Sean Deehan, FFA, FASHK

11th August 2025

2025 Embedded Value Interim Report of CPIC Group

I. Background

In order to provide investors with an additional tool to understand our economic value and business results, we have prepared CPIC Group Embedded Value as at 30 June 2025 in accordance with the disclosure rules set by the China Securities Regulatory Commission ("CSRC") for publicly listed insurer and, for the business in Mainland China only, the "CAA Standard of Actuarial Practice: Appraisal of Embedded Value" issued by the China Association of Actuaries ("CAA") in 2016 (thereafter referred to as "Appraisal of Embedded Value" standard) and have disclosed information relating to our group embedded value in this section. We have engaged Willis Towers Watson, an independent firm of consultants, to review the reasonableness of the valuation methodology, the valuation assumptions as well as the valuation results, and to issue their independent embedded value review report, which is contained in our 2025 interim report.

The Group Embedded Value is defined as the sum of the Group Adjusted Net Worth and the value of in force business of CPIC Life and CPIC Life (HK) attributable to the shareholders of CPIC Group. The value of in force business and the value of half year's sales of CPIC Life and CPIC Life (HK) are defined as the discounted value of the projected stream of future after-tax distributable shareholder profits for existing business in force at the valuation date and for half year's sales in the 6 months immediately preceding the valuation date, where distributable shareholder profits are determined based on policy liability, required capital in excess of policy liability and minimum capital requirement quantification standards prescribed by the regulatory. Embedded value does not allow for any value attributable to future new business sales.

The value of in force business and the value of half year's sales of CPIC Life and CPIC Life (HK) are determined by using a traditional deterministic discounted cash flow methodology. This methodology makes implicit allowance for the risk of investment guarantees and policyholder options, asset/liability mismatch risk, credit risk and the economic cost of capital through the use of a risk-adjusted discount rate.

The embedded value and the value of half year's sales provide valuable information to investors in two aspects. First, the value of in force business of CPIC Life and CPIC Life (HK) represents the total amount of after-tax distributable shareholder profits in present value terms, which can be expected to emerge over time, in accordance with the assumptions used. Second, the value of half year's sales of CPIC Life and CPIC Life (HK) provides an indication of the value created for investors by current new business activity and hence the potential value of the business. However, the information on embedded value and the value of half year's sales should not be viewed as a substitute of other financial measures on the Company. Investors should not make investment decisions based solely on embedded value and the value of half year's sales information.

The embedded value is an estimation of a component of an insurance company's economic value using actuarial techniques, based on a series of assumptions. As there is uncertainty in selecting assumptions, estimates of embedded value could vary materially as key assumptions are changed, and future actual experience would differ from assumed valuation assumption. Therefore, special care is advised when interpreting embedded value results.

II. Summary of Embedded Value and Value of Half Year's Sales

The table below shows the Group Embedded Value of CPIC Group as at 30 June 2025, and the value of half year's sales of CPIC Life and CPIC Life (HK) in the 6 months to 30 June 2025 at a risk discount rate of 8.5%.

Unit: RMB million
Valuation Date 30 June 2025 note 2
31 December 2024
Group Adjusted Net Worth 365,494 349,292
Adjusted Net Worth of Life Business 217,709 205,863
Value of In Force Business Before Cost of Required Capital
Held
238,551 228,037
Cost of Required Capital (11,236) (11,380)
Value of In Force Business After Cost of Required Capital Held 227,315 216,657
CPIC Group's Equity Interest in Life Business 98.29% 98.29%
Value of In Force Business After Cost of Required Capital Held
attributable to the shareholders of CPIC Group
223,433 212,957
Group Embedded Value 588,927 562,250
Life Business Embedded Value 445,024 422,520
Valuation Date 30 June 2025 30 June 2024
(Restatednote 3)
note 4
30 June 2024
Value of Half Year's Sales Before Cost of
Required Capital Held 10,331 10,347
Cost of Required Capital Held (787) (991) (1,306)
Value of Half Year's Sales After Cost of
Required Capital Held
9,544 7,213 9,041

Notes:

  1. Figures may not be additive due to rounding.

  2. Results in column "31 December 2024" are those reported in the 2024 annual report, plus the results of CPIC Life (HK).

  3. Results in column "Restated" are the 2024 value of half year's sales restated for adopting valuation assumptions by the end of 2024.

  4. Results in column "30 June 2024" are those reported in the 2024 interim report, plus the results of CPIC Life (HK).

The Group Adjusted Net Worth represents the shareholder net equity of the Company, inclusive of adjustments of the value of certain assets to market value and adjusted for the relevant differences, such as difference between reserves and policy liabilities valued under "Appraisal of Embedded Value" standard published by the CAA. It should be noted that the Group Adjusted Net Worth incorporates the shareholder net equity of the Company as a whole (including CPIC Life, CPIC Life (HK) and other operations of the Company), and the value of in force business and the value of half year's sales are of CPIC Life and CPIC Life (HK). The Group Embedded Value also does not include the value of in force business that is attributable to minority shareholders of CPIC Life and CPIC Life (HK).

III. Key Valuation Assumptions

In determining the embedded value as at 30 June 2025, we have assumed the Company continues to operate on a going concern basis under the current economic and regulatory environment in Mainland China market and Hong Kong market. For the business in Mainland China, policy liability and required capital have been calculated according to relevant requirements described in "Appraisal of Embedded Value" standard published by the CAA. The various operational assumptions are mainly based on the results of experience analyses, together with reference to the overall experience of the insurance industry in Mainland China market and Hong Kong market, as well as with regard to expected future operating experience. As such, these assumptions represent our best estimate of the future based on information currently available at the valuation date.

The following describes the key assumptions used in determining the value of in force business and the value of half year's sales of CPIC Life and CPIC Life (HK) as at 30 June 2025:

1. Risk Discount Rate

The risk discount rate used to determine the value of in force business and the value of half year's sales of CPIC Life and CPIC Life (HK) is 8.5%.

2. Investment Returns

The investment returns for long term business of CPIC Life are assumed to be 4.0% in 2025 and 4.0% thereafter. The investment return for short term business is based on the recent one-year bank deposit benchmark interest rate as published by the People's Bank of China before the valuation date. The investment return assumptions for long term business of CPIC Life (HK) are derived by the expected return of 10-year local government bond 3.0% and stock 8.5%.

The assumptions of long term business have been derived based on the current capital market environment, our current and expected future asset mix and the assumed investment returns for each major class of assets.

3. Mortality

Mortality assumptions have been developed based on industrial experience table or pricing assumptions, considering mortality experience analysis and expectation of future mortality

trends, and vary by product. For business of CPIC Life, the industrial experience table is China Life Insurance Mortality Table (2010-2013).

4. Morbidity

Morbidity assumptions have been developed based on industrial experience table or pricing assumptions, considering morbidity experience analysis and expectation of future morbidity trends, taking into considering deterioration of morbidity rates in the long term, and vary by product. For business of CPIC Life, the industrial experience table is China Life Insurance Morbidity Table.

5. Lapse and Surrender Rates

Assumptions have been developed based on lapse and surrender experience analysis, and expectation of future trends, and assumptions vary by pricing interest rates, product types, premium payment periods and distribution channels.

6. Expense

Unit cost assumptions have been developed based on the results of an analysis of CPIC Life and CPIC Life (HK)'s past non-commission related expenses and future expectations. Future inflation of 2.5% pa in respect of per policy expenses is also assumed.

7. Policyholder Dividend

Policyholder dividends have been developed by investment return and dividend policy, considering the reasonable expectations from policyholders etc. of the participating business, and vary by product.

8. Tax Rate

For CPIC Life, tax has been assumed to be payable at 25% of profits. The proportion of investment income assumed to be exempt from income tax is 20% for all future years. The tax exemption assumptions are based on our current and expected future asset mix and assumed investment returns for each major class of assets.

In addition, the tax of the accident business is based on related tax regulation.

For CPIC Life (HK), tax rate has been assumed to be 16.5%.

IV. New Business Volumes and Value of Half Year's Sales

The table below shows the volume of new business sold in terms of first year annual premium and value of half year's sales after cost of required capital held based on valuation assumptions by the end of 2024.

Unit: RMB million
First Year Annual Premium (FYAP)
in the First Half of Year
Value of Half Year's Sales After
Cost of Required Capital Held
2025 2024 2025 2024
(Restatednote)
Total 63,448 49,116 9,544 7,213
Of which: Agency channel 21,693 23,608 5,724 5,869
Bancassurance channel 29,039 14,844 3,604 1,408

Note: Results in column "Restated" are the 2024 value of half year's sales restated for adopting valuation assumptions by the end of 2024.

V. Analysis of change in embedded value

The following table shows the change in the Group Embedded Value from 31 December 2024

to 30 June 2025.

Unit: RMB million

No. Item Value Comments
1 Embedded Value of the life
business at 31 December
2024
422,520 Results reported in the 2024 annual
report, plus the results of CPIC Life (HK)
2 Expected Return on
Embedded Value
12,469 Expected returns on the 2024
embedded value and the value of half
year's sales in first half of 2025
3 Value of Half Year's Sales 9,544 Value of half year's sales in respect of
new business written in the 6 months
prior to 30 June 2025
4 Investment Experience
Variance
2,650 Reflects the difference between actual
and assumed investment return in first
half of 2025
5 Operating Experience
Variance
3,760 Reflects the difference between actual
and assumed operating experience
6 Change in methodology,
assumptions and models
4 Reflects assumption and methodology
changes, together with model
enhancements
7 Diversification effects 1,312 Changes in diversification benefits on
cost of required capital from new
business and different business mix
8 Change in market value
adjustment
(10) Reflects the change in value of certain
assets not valued on a market value
basis
9 Shareholder Dividends (6,989) Shareholder dividends distributed to
shareholders of CPIC Life
10 Others (236)
Embedded Value of the life
11 business at 30 June 2025 445,024
12 Adjusted net worth of other
businesses as at
31 December 2024
151,643
13 Change in Adjusted Net
Worth before payment of
shareholder dividends to
shareholders of CPIC Group
18,897
14 Shareholder dividends (10,390) Dividend distributed to shareholders of
CPIC Group
15 Change in market value
adjustment
583 Reflects the change in value of assets
not valued on a market value basis
16 Adjusted net worth of life
businesses as at 30 June
160,734
17 2025
Minority interests relating to
equity and market value
adjustments
(16,831) Minority interests on Embedded Value
as at 30 June 2025
18 Group Embedded Value as at
30 June 2025
588,927

Note: Figures may not be additive due to rounding.

VI. Sensitivity Analysis

In consideration of the uncertainties as to future experience, we have evaluated the sensitivity of the value of in force business and the value of half year's sales as at 30 June 2025 to changes in key assumptions. In determining the sensitivity results, only the relevant cashflow assumption and risk discount rate assumption has been changed, while all other assumptions have been left unchanged.

Alternative sensitivity scenarios are shown for the following:

  • Risk discount rate "+ / 50 basis points"
  • Investment return "+ / 50 basis points"
  • Mortality "+ / 10%"
  • Morbidity "+10%"
  • Lapse and surrender rates "+ / 10%"
  • Expenses "+10%"

The following table shows the sensitivity results of the value of in force business and the value of half year's sales after cost of required capital held.

Unit: RMB million
Value of In Force
Business After Cost of
Required Capital Held
Value of Half Year's Sales
After Cost of Required
Capital Held
Base 227,315 9,544
Risk discount rate "+50 basis points" 218,242 9,095
Risk discount rate "-50 basis points" 237,231 10,032
Investment return "+50 basis points" 290,974 11,682
Investment return "-50 basis points" 163,979 7,410
Mortality "+10%" 226,009 9,478
Mortality "-10%" 228,609 9,612
Morbidity "+10%" 218,793 9,446
Lapse and surrender rates "+10%" 231,203 9,508
Lapse and surrender rates "-10%" 223,271 9,588
Expenses "+10%" 223,636 9,222

Corporate governance

Report of the Board of Directors and significant events

I. Implementation of profit distribution plan

The Company distributed a cash dividend of RMB1.08 per share (tax included) in accordance with the "Resolution on Profit Distribution Plan for the Year of 2024" approved at the 2024 annual general meeting.

II. Shareholders' general meetings

Information of the shareholders' general meetings (SGM) of the Company during the reporting period is set out in the Section "Corporate governance".

III. Proposals for profit distribution and the transfer of capital reserves to share capital for

the reporting period

The Company did not propose to distribute any profit, nor did it transfer any capital reserves to share capital for the reporting period.

IV. Fulfilment of the undertakings

During the reporting period, there were no undertakings the Company was required to disclose.

V. Material litigations and arbitrations

During the reporting period, the Company did not engage in any material litigation or arbitration which was required to be disclosed.

VI. Penalties and subsequent rectification

During the reporting period, there were no penalties or subsequent rectification the Company was required to disclose.

VII. Fulfilment of obligations

During the reporting period, the Company had no outstanding obligations such as unfulfilled obligations under rulings by courts of laws or payment in arrears involving large amounts.

VIII. Capital occupation

During the reporting period, there was no non-operating occupation of capital of the Company by controlling shareholders or other related parties.

IX. Guarantee contracts

During the reporting period, the Company did not enter into any guarantee contract that violated laws, administrative regulations or the external guarantee resolution procedures prescribed by the CSRC.

X. Share option scheme

During the reporting period, the Company did not have any share option scheme, employee stock ownership plan, or other employee incentive measure which required disclosure.

XI. Daily related party transactions

In the ordinary course of business, at fair market price, the Company and its holding subsidiaries conducted daily transactions related to the fund utilization and the sales of financial products such as bond trading, securities investment funds, bond pledge-type repurchase, trust products, asset management products with multiple counterparties as well as daily related party transactions related to reinsurance business with Swiss Reinsurance Company Ltd ("Swiss Reinsurance Company"). The 8th meeting of the 10th board of directors approved daily related party transactions related to fund utilization, financial products sales business and reinsurance business under the 2025 annual estimated cap of the Company and its holding subsidiaries with the related parties, and each single transaction was not required to be submitted separately to the board of directors or the shareholders' general meeting for consideration and approval any more. The categorized summary of the daily related party transactions related to fund utilization, financial products sales business, and reinsurance business as of 30 June 2025 was as follows:

No. Related
Parties
Content of
Transaction
Estimated Cap of
Daily Related
Party
Transactions in
2025
Actual
Amount as
of 30 June
2025
Percentage (%) of the
Amount of
Transactions of the
Same Type
1 Orient
Securities
Company
Limited
Bond trading 6,000 1,066 0.17%
2 Hwabao Trust
Co., Ltd.
Sales of
Financial
Products
500 8 0.00%
3 Swiss
Reinsurance
Company
Reinsurance
Business
8,600 2,109 12.18%

Unit: RMB million

The above-mentioned related party transactions related to daily operations were settled in cash, which were carried out by the Company in the ordinary course of business in accordance with normal commercial terms, and would not affect the independence of the Company. The abovementioned daily related party transactions did not exceed the amount approved by the board of directors or the shareholders' general meeting, and were summarized in categories and disclosed in the interim report of the Company pursuant to the Listing Rules of the SSE and other regulatory provisions.

XII. Material contracts

Entrusted investment management. Investment is one of the main businesses of the Company, and the Company adopts a model of entrusted investment management. At present, a diversified entrusted investment management structure has been developed which is based on the internal managers within CPIC and supplemented by external managers. The internal investment managers mainly include, among others, CPIC AMC and Changjiang Pension; external investment managers include professional investment management agencies such as fund companies and securities firms and asset management companies. The Company selects investment managers based on the investment objectives and risk characteristics of a specific account or asset class, as well as investment manager's capabilities, and appropriately mitigates risks through the diversification and decentralization of asset types, investment strategies, and investment managers. The Company signs an entrusted investment management agreement with the investment managers, and guides their investment behaviour through investment guidelines, dynamic tracking communication, performance evaluation and other measures, and take targeted risk management measures based on the profile of investment assets.

Save as disclosed above, during the reporting period, the Company did not have any material contracts which were required to be disclosed.

XIII. Use of Proceeds Received from Issuance of GDRs

The Company completed the initial offering of its GDRs on 22 June 2020, and partially exercised over-allotment on 9 July 2020. A total of 111,668,291 GDRs were issued through the initial offering and the over-allotment at the price of USD17.60 per GDR, and the total proceeds raised were USD1,965,361,921.60. The differences between the beginning and ending balance of proceeds unused are mainly the interest income generated by the raised funds. As of the end of the reporting period, the use of proceeds was as stated in the prospectus.

As of the end of the reporting period, details of use of the above-said proceeds are as follows:

Total proceeds
raised
Proceeds unused as
at the beginning of
the reporting period
The intended use of
proceeds raised
Proceeds used
during the
reporting
period
Proceeds unused
as at the end of the
reporting period
Plan for use of the
unused funds
USD
1,965,361,921.60
USD622,053,190.19
and RMB
491,342,568.44note
(1) 70% or more of the
net proceeds will be
used for gradually
developing the Group's
businesses overseas, in
the form of equity
investments,
partnerships and
alliances, and mergers
and acquisitions in
both developed and
emerging markets,
supporting core
insurance business
growth.
(2) Up to 30%, or the
remainder of the net
proceeds, will be used
for developing an
overseas investment
platform to invest in
innovative businesses,
such as healthcare,
elderly care, and
technology, leveraging
CPIC's offshore
investment
capabilities.
-
-
USD635,204,647.11
and RMB
491,585,651.71note
(i) Less than USD127.5
million will be used to
subscribe to the fund
interests of HTCP
CAPITAL LPF (泰保新经
济有限合伙基金);(ii)
Approximately RMB0.7
billion will be used for
the establishment of a
new company (上海市
健康养老发展(集团)
有限公司)
conducting
health and retirement
business; (iii) Less than
RMB0.432 billion will be
used to subscribe for
shares in Nanjing CPIC
Phase II Health Care
Industry Fund
Management
Partnership (Limited
Partnership) (南京太保
二期大健康产业基金管
理合伙企业(有限合
伙)) (iv) Less than
RMB0.48 billion will be
used to subscribe for
shares in CPIC Health
Industry Private
If the Company deems
that the plan in any
particular areas
described above to be
unachievable, the
corresponding
intended portion of the
proceeds will be used
to replenish its capital
and for general
corporate purposes.
- Investment Fund
(Shanghai) Partnership
(Limited Partnership) 太
保大健康产业私募投资
基金(上海)合伙企业
(有限合伙)) (v) The
remaining will be used in
line with the Company's
business development
and market situation.

Note: The balance of the raised funds that have been settled and not yet used.

XIV. Interests and short positions of directors, supervisors and senior management in shares,

underlying shares or debentures

So far as the directors of the Company are aware, as at 30 June 2025, the following directors, supervisors or senior management of the Company had an interest or short position in shares, underlying shares or debentures of the Company which was required, pursuant to Section 352 of the SFO, to be entered in the register maintained by the Company or which was required to be notified to the Company and SEHK pursuant to the Model Code for Securities Transactions.

Name Position Capacity Type of
shares
Number of shares Percentage of
shareholdings
in the class of
shares issued
(%)
Percentage
of the total
shares issued
(%)
FU Fan Chairman and an
executive director
Beneficial
owner
H shares 210,400 (L) 0.01 (L) 0.00 (L)
ZHAO Yonggang Executive director
and president
Beneficial
owner
A shares 12,900 (L) 0.00 (L) 0.00 (L)

(L) denotes a long position

The detailed shareholdings of directors, supervisors and senior management are set out in the section "Directors, Supervisors and Senior Management" of this report. Save as disclosed in this report, as at 30 June 2025, the directors of the Company were not aware that there was any directors, supervisors or senior management of the Company who had any interest or short position in shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which was required, pursuant to Section 352 of the SFO, to be entered in the register maintained by the Company or which was required to be notified to the Company and SEHK pursuant to the Model Code for Securities Transactions.

XV. Interests and short positions of substantial shareholders and other persons in the shares

and underlying shares

So far as the directors of the Company are aware, as at 30 June 2025, the following persons (excluding the directors, supervisors or senior management of the Company) had an interest or short position in the shares or underlying shares of the Company which shall be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which, pursuant to Section 336 of the SFO, shall be entered in the register maintained by the Company:

Name of substantial
shareholders
Capacity Type of
shares
Number of shares Percentage of
shareholdings
in the class of
shares issued
(%)note 1
Percentage of
the total
shares issued
(%)note 1
上海国际集团有限
公司 note 2
Beneficial owner H shares 192,068,400 (L) 6.92 (L) 2.00 (L)
Interest of
corporation
controlled by 上海
国际集团有限公司
H shares 6,428,400 (L) 0.23 (L) 0.07(L)
JPMorgan Chase &
Co. note 3
Beneficial owner H shares 29,373,582 (L)
26,434,203 (S)
1.06 (L)
0.95 (S)
0.31 (L)
0.27 (S)
Investment manager H shares 68,245,318 (L) 2.46 (L) 0.71 (L)
Person having a
security interest in
shares
H shares 1,008,899 (L) 0.04 (L) 0.01 (L)
Approved lending
agent
H shares 89,755,930 (L)
89,755,930 (P)
3.23 (L)
3.23 (P)
0.93 (L)
0.93(P)
Schroders PLC note 4 Investment manager H shares 166,017,534 (L) 5.98 (L) 1.73 (L)
BlackRock, Inc. note 5 Interest of
corporation
controlled by
BlackRock, Inc.
H shares 154,714,568 (L)
4,107,800 (S)
5.57 (L)
0.15 (S)
1.61 (L)
0.04 (S)

(L) denotes a long position; (S) denotes a short position; (P) denotes a lending pool

Notes:

  1. As at 30 June 2025, the Company issued a total of 9,620,341,455 shares, including 6,845,041,455 A shares and 2,775,300,000 H shares.

  2. Pursuant to Part XV of the SFO, as at 30 June 2025, 上海国际集团有限公司 is deemed or taken to be interested in a total of 198,496,800 H shares (long position) of the Company. The details of the shareholding interests of the company directly or indirectly controlled by 上海国际集团有限公司 are set out below:

Name of controlled company Number of shares
上海國際集團(香港)有限公司 6,428,400 (L)

(L) denotes a long position

  1. Pursuant to Part XV of the SFO, as at 30 June 2025, JPMorgan Chase & Co. is deemed or taken to be interested in a total of 188,383,729 H shares (long position), 26,434,203 H shares (short position) and 89,755,930 H shares (lending pool) of the Company. The details of the shareholding interests of the companies directly or indirectly controlled by JPMorgan Chase & Co. are set out below:
Name of controlled company Number of shares
JPMorgan Asset Management (China) Company Limited 69,800 (L)
JPMorgan Asset Management (Taiwan) Limited 2,560,800 (L)
J.P. Morgan SE 1,640 (L)
J.P. Morgan Securities LLC 5,297,672 (L)
4,318,773 (S)
JPMORGAN ASSET MANAGEMENT (UK) LIMITED 2,853,759 (L)
J.P. Morgan Investment Management Inc. 12,449,359 (L)
JPMorgan Chase Bank, National Association 93,711,330 (L)
JPMorgan Asset Management (Asia Pacific) Limited 46,354,600 (L)
J.P. MORGAN SECURITIES PLC 25,084,769 (L)
22,115,430 (S)
JPMorgan Asset Management Holdings Inc. 64,288,318 (L)
JPMorgan Chase Holdings LLC 69,585,990 (L)
4,318,773 (S)
JPMorgan Asset Management (Asia) Inc. 48,915,400 (L)
J.P. Morgan International Finance Limited 25,086,409 (L)
22,115,430 (S)
JPMorgan Chase Bank, National Association 25,086,409 (L)
22,115,430 (S)
J.P. Morgan Broker-Dealer Holdings Inc. 5,297,672 (L)
4,318,773 (S)
JPMORGAN ASSET MANAGEMENT INTERNATIONAL LIMITED 2,853,759 (L)
J.P. MORGAN CAPITAL HOLDINGS LIMITED 25,084,769 (L)
22,115,430 (S)

(L) denotes a long position; (S) denotes a short position

  1. Pursuant to Part XV of the SFO, as at 30 June 2025, Schroders PLC is deemed or taken to be interested in a total of 166,017,534 H shares (long position) of the Company. The details of the shareholding interests of the companies directly or indirectly controlled by Schroders PLC are set out below:
Name of controlled company Number of shares
Schroder Administration Limited 166,017,534 (L)
Schroder International Holdings Limited 166,017,534 (L)
Schroder Investment Management (Hong Kong) Limited 12,695,600 (L)
Schroder Investment Management (Singapore) Ltd. 61,968,800 (L)
Schroder Investment Management Limited 59,105,800 (L)
Schroder Investment Management Limited 32,247,334 (L)
Schroder Investment Management North America Limited 32,247,334 (L)

(L) denotes a long position

  1. Pursuant to Part XV of the SFO, as at 30 June 2025, BlackRock, Inc. is deemed or taken to be interested in a total of 154,714,568 H shares (long position) and 4,107,800 H shares (short position) of the Company. The details of the shareholding interests of the companies directly or indirectly controlled by BlackRock, Inc. are set out below:
Name of controlled company Number of shares
---------------------------- ------------------
154,714,568 (L)
BlackRock Finance, Inc. 4,107,800 (S)
Trident Merger, LLC 1,087,400 (L)
BlackRock Investment Management, LLC 646,600 (L)
BlackRock Investment Management, LLC 440,800 (L)
BlackRock Holdco 2, Inc. 153,627,168 (L)
4,107,800 (S)
BlackRock Financial Management, Inc. 150,965,368 (L)
2,161,600 (S)
BlackRock Financial Management, Inc. 2,661,800 (L)
1,946,200 (S)
BlackRock Holdco 4, LLC 90,766,605 (L)
1,645,400 (S)
BlackRock Holdco 6, LLC 90,766,605 (L)
1,645,400 (S)
BlackRock Delaware Holdings Inc. 90,766,605 (L)
1,645,400 (S)
BlackRock Institutional Trust Company, National Association 30,458,605 (L)
1,645,400 (S)
BlackRock Fund Advisors 60,308,000 (L)
BlackRock Capital Holdings, Inc. 96,200 (L)
BlackRock Advisors, LLC 96,200 (L)
BlackRock International Holdings, Inc. 60,102,563 (L)
516,200 (S)
BR Jersey International Holdings L.P. 58,055,563 (L)
516,200 (S)
BlackRock Lux Finco S.à r.l. 2,997,483 (L)
BlackRock Japan Holdings GK 2,997,483 (L)
BlackRock Japan Co., Ltd. 2,997,483 (L)
BlackRock Holdco 3, LLC 47,554,990 (L)
516,200 (S)
BlackRock Canada Holdings ULC 2,047,000 (L)
BlackRock Asset Management Canada Limited 2,047,000 (L)
BlackRock Australia Holdco Pty. Ltd. 1,655,000 (L)
BlackRock Investment Management (Australia) Limited 1,655,000 (L)
BlackRock (Singapore) Holdco Pte. Ltd. 8,845,573 (L)
BlackRock HK Holdco Limited 7,607,893 (L)
BlackRock Asset Management North Asia Limited 4,610,410 (L)
BlackRock Cayman 1 LP 47,554,990 (L)
516,200 (S)
BlackRock Cayman West Bay Finco Limited 47,554,990 (L)
516,200 (S)
BlackRock Cayman West Bay IV Limitied 47,554,990 (L)
516,200 (S)
BlackRock Group Limited 47,554,990 (L)
516,200 (S)
BlackRock Finance Europe Limited 15,356,277 (L)
BlackRock (Netherlands) B.V. 115,600 (L)
BlackRock (Netherlands) B.V. 6,048,675 (L)
BlackRock Advisors (UK) Limited 49,000 (L)
BlackRock International Limited 161,800 (L)
BlackRock Group Limited-Luxembourg Branch 32,036,913 (L)
516,200 (S)
BlackRock Luxembourg Holdco S.à r.l. 32,036,913 (L)
516,200 (S)
BlackRock Investment Management Ireland Holdings Unlimited
Company
31,886,713 (L)
BlackRock Asset Management Ireland Limited 31,886,713 (L)
BLACKROCK (Luxembourg) S.A. 111,800 (L)
516,200 (S)
BlackRock Investment Management (UK) Limited 4,484,468 (L)
BlackRock Investment Management (UK) Limited 4,658,534 (L)
BlackRock (Netherlands) B.V. – German Branch – Frankfurt
BlackRock
115,600 (L)
BlackRock Asset Management Deutschland AG 115,600 (L)
BlackRock Fund Managers Limited 4,484,468 (L)
BlackRock Life Limited 161,800 (L)
BlackRock (Singapore) Limited 1,237,680 (L)
BlackRock UK Holdco Limited 38,400 (L)
BlackRock Asset Management Schweiz AG 38,400 (L)
EG Holdings Blocker, LLC 646,600 (L)
Amethyst Intermediate, LLC 646,600 (L)
Aperio Holdings, LLC 646,600 (L)
Aperio Holdings, LLC 646,600 (L)
Aperio Group, LLC 646,600 (L)

(L) denotes a long position; (S) denotes a short position

Save as disclosed above, as at 30 June 2025, the directors of the Company were not aware that there was any other person (other than the directors, supervisors or senior management of the Company) who had interests or short positions in the shares or underlying shares of the Company which were required, pursuant to Section 336 of the SFO, to be entered in the register maintained by the Company.

Specifics on the shareholdings by the Company's top 10 shareholders are set out in the section "Changes in the Share Capital and Shareholders' Profile" of this report.

XVI. Purchase, redemption or sale of the Company's listed securities

During the reporting period, neither the Company nor its subsidiaries purchased, sold or redeemed any listed securities of the Company (including any treasury shares). As at the end of the reporting period, the Company did not hold any treasury shares.

Changes in the share capital and shareholders' profiles

I. Changes in share capital

The table below shows the Company's share capital as at the end of the reporting period:

Unit: share
Before change Increase or decrease (+ or -) After change
Amount Percent
age (%)
New shares
issued
Bonus
shares
Transfer
from
reserves
Others Sub-total Amount Percen
tage
(%)
1. Shares with selling restrictions
(1) State-owned shares
(2) State-owned
enterprises shares
(3) Other domestic
shares
held by
legal entities
natural persons
(4) Foreign shares
held by
legal entities
natural persons
Total
2. Shares without selling restrictions
(1) Ordinary shares
denominated in RMB
6,845,041,455 71.15 6,845,041,455 71.15
(2) Domestically listed
foreign shares
(3) Overseas listed
foreign shares (H share)
2,775,300,000 28.85 2,775,300,000 28.85
(4) Others
Total 9,620,341,455 100.00 9,620,341,455 100.00
3. Total number of
shares
9,620,341,455 100.00 9,620,341,455 100.00

II. Shareholders

(I) Number of shareholders and their shareholdings

As at the end of the reporting period, the Company had no shares with selling restrictions.

Unit: share
Total number of shareholders as at the end of the reporting period: 87,564 (including 83,784 A share holders and 3,780 H
shareholders)
Shares held by top 10 shareholders as at the end of the reporting period
Name of shareholders Nature of
shareholders
Percentage
of the
shareholding
Total number
of shares held
Increase or
decrease (+ or
-) of
shareholding
during the
reporting
period
Number
of shares
held with
selling
restriction
Number
of shares
subject to
pledge or
lock-up
period
Type
of
shares
HKSCC Nominees Limited Overseas
legal entity
28.82% 2,772,670,817 +54,460 - - H Share
Shenergy (Group) Co., Ltd. State-owned
legal person
14.05% 1,352,129,014 - - - A Share
Hwabao Investment Co., Ltd. State-owned
legal person
13.35% 1,284,277,846 - - - A Share
Shanghai State-Owned Assets
Operation Co., Ltd.
State-owned
legal person
6.34% 609,929,956 - - - A Share
Shanghai Haiyan Investment
Management Company Limited
State-owned
legal person
4.87% 468,828,104 - - - A Share
China Securities Finance Co., Ltd. Others 2.82% 271,089,843 - - - A Share
HKSCC Others 2.27% 218,698,985 -53,321,375 - - A Share
Shanghai International Group State-owned
legal person
1.69% 162,718,700 +2,718,700 - - A Share
Yunnan Hehe (Group) Co., Ltd. State-owned
legal person
0.95% 91,868,387 - - - A Share
Shanghai Jiushi (Group) Co., Ltd. State-owned
legal person
0.95% 90,949,460 - - - A Share
Description
of
the
stock
repurchase accounts of the top
10 shareholders
None.
Description of the aforesaid
shareholders' proxy voting
rights, entrusted voting rights,
and waiver of voting rights
Entrusted by its parent company, China Baowu Steel Group, Hwabao Investment Co., Ltd.
exercises the voting rights corresponding to 68,818,407 ordinary shares (A share) of China
Baowu Steel Group. Apart from this, the Company is not aware of any other proxy voting
rights, entrusted voting rights, and waiver of voting rights of the aforesaid shareholders.
Description of related relations
or concerted actions among the
aforesaid shareholders
HKSCC Nominees Limited and HKSCC are related, as the former is a wholly-owned subsidiary
of the latter. Shanghai State-Owned Assets Operation Co., Ltd. is a wholly-owned subsidiary
of Shanghai International Group, they act in concert. As is confirmed by relevant shareholders
regarding the Company's inquiry, the Company is not aware of any other related relations or
concerted actions among the above-mentioned shareholders.
Description of securities margin
trading and refinancing business
by top 10 shareholders and top
10 shareholders without selling
restrictions.
None.

Notes:

  1. As at the end of the reporting period, the Company did not issue any preferred shares.

  2. The shareholding of the top 10 shareholders is based on the lists of registered shareholders provided by China Securities Depository and Clearing Corporation Limited Shanghai Branch (A share) and Computershare Hong Kong Investor Services Limited (H share) respectively. The nature of A shareholders is the same as the nature of their accounts registered with China Securities Depository and Clearing Corporation Limited Shanghai Branch.

  3. The shares held by HKSCC Nominees Limited are held on behalf of its clients. As SEHK does not require such shareholders to disclose to HKSCC Nominees Limited whether the shares held by them are subject to pledge or lock-up period, HKSCC Nominees Limited is unable to calculate, or make available such data. Pursuant to Part XV of the SFO, a Substantial Shareholder is required to give notice to SEHK and the Company on the occurrence of certain events including a change in the nature of its interest in shares such as the pledging of its shares. As at the end of the reporting period, the Company is not aware of any such notices from Substantial Shareholders under Part XV of the SFO.

  4. HKSCC is the nominal holder of shares traded through Shanghai-Hong Kong Connect Programme.

(II) Controlling shareholders or de facto controllers

The ownership structure of the Company is diversified. The ultimate controllers of the Company's major shareholders do not exercise control over the Company and the Company has no controlling shareholder, nor de facto controllers.

Unit: share
Name Position Type of
shares
Shareholding at
the beginning
of the reporting
period
Increase in
shareholding
during the
reporting
period
Decrease in
shareholding
during the
reporting
period
Shareholding at
the end of the
reporting
period
Reason for the
change
FU Fan Chairman,
executive director
H share 210,400 - - 210,400 -
ZHAO
Yonggang
Executive director,
president
A share 12,900 - - 12,900 -
YU Bin
Vice president
A share 5,900 - - 5,900 -
H share 169,800 - - 169,800 -
MA Xin A share 15,000 - - 15,000 -
Vice president H share 142,000 - - 142,000 -

(III) Shareholdings of the Company's directors, supervisors and senior management

Directors, supervisors and senior management

I. Directors

As of the end of the reporting period, the Company had 13 Directors. Among them, there were 2 Executive Directors, i.e., Mr. FU Fan and Mr. ZHAO Yonggang; 6 Non-executive Directors, namely, Mr. HUANG Dinan, Mr. WANG Tayu, Mr. CHEN Ran, Mr. ZHOU Donghui, Ms. LU Qiaoling, and Mr. John Robert DACEY; 5 Independent Non-executive Directors, Ms. CHEN Xin, Ms. LAM Tyng Yih, Elizabeth, Ms. LO Yuen Man, Elaine, Mr. CHIN Hung I, David, and Mr. JIANG Xuping. Relevant changes during the reporting period were as follows:

Name New Position
assumed
Notes
CHEN Xin Independent Non
executive Director
In October 2024, Ms. CHEN Xin was elected as Independent Non
executive Director
of the 10th Board of Directors
of the Company at the
Company's second extraordinary general meeting of 2024.
In April
2025,
the appointment qualification
of Ms. CHEN Xin to serve as Independent
Non-executive Director
of the Company was approved by the NFRA.
Name Positions
vacated
Notes
LIU Xiaodan Independent Non
executive Director
In August 2024, Ms. LIU
Xiaodan submitted her resignation to the Board
of Directors of the Company, proposing to step down
as Independent
Non-executive Director of the Company due to work-related reasons.
Ms. LIU
Xiaodan continued
to perform her duties
until the appointment
qualification
of the new independent non-executive director was
approved by the NFRA.
In April 2025, Ms. CHEN Xin's appointment
qualification as Independent Non-executive Director of the Company
was
approved by the NFRA. Ms. CHEN Xin formally succeeded Ms. LIU
Xiaodan as Independent Non-executive Director of the 10th Board of
Directors
of the Company, while Ms. LIU Xiaodan ceased to serve
as
Independent Non-executive Director of the Company.
CAI Qiang
(John)
Non-executive
Director
In April 2025, Mr. CAI Qiang
(John)
submitted his resignation to the
Board of Directors of the Company
and resigned
as Non-executive
Director of the Company due to work changes.
XIE Weiqing Non-executive
Director
In June 2025, Mr. XIE Weiqing submitted his resignation to the Board of
Directors of the Company
and stepped
down as Non-executive Director
of the Company due to work-related reasons.

II. Supervisors

As of the end of the reporting period, the Company had 4 Supervisors. Among them, there were 2 Shareholder Representative Supervisors, Mr. ZHU Yonghong and Mr. DONG Zhiqiang; and 2 Employee Representative Supervisors, Ms. ZHOU Liyun and Mr. GU Qiang.

III. Senior management

As of the end of the reporting period, the Company had 12 members of senior management. They were Mr. FU Fan, Chairman; Mr. ZHAO Yonggang, President; Mr. YU Bin and Mr. MA Xin, Vice Presidents; Mr. SU Gang, Vice President, Chief Investment Officer and Finance Responsible Person; Mr. ZHANG Weidong, Chief Internal Auditor, Internal Audit Responsible Person and General Counsel; Mr. WANG Mingchao, HR Director; Mr. ZHANG Yuanhan, Chief Actuary; Mr. CHEN Wei, Compliance Responsible Person and Chief Risk Officer; Mr. SU Shaojun, Board Secretary; Mr. ZHANG Yuhua, Market Development Director; and Mr. WANG Lei, Chief Information Officer. Relevant changes during the reporting period were as follows:

Name New Position
assumed
Notes
SU Gang Vice President
Finance
Responsible
Person
In October 2024, Mr. SU Gang was appointed as Vice President and
Finance Responsible Person of the Company at the 6th session of the
Company's 10th Board of Directors.
In January 2025, Mr. SU Gang's appointment qualification was
approved by the NFRA.
ZHANG
Weidong
Internal Audit
Responsible
Person
In August 2024, Mr. ZHANG Weidong was appointed as Internal Audit
Responsible Person of the Company at the 5th session of the
Company's 10th Board of Directors.
In January 2025, Mr. ZHANG Weidong's appointment qualification was
approved by the NFRA.
WANG
Mingchao
HR Director In March 2025, Mr. WANG Mingchao was appointed as HR Director of
the Company at the 10th session of the Company's 10th Board of
Directors.
In May 2025, Mr. WANG Mingchao's appointment
qualification was
approved by the NFRA.
WANG Lei Chief Information
Officer
In March 2025, Mr. WANG Lei was appointed as Chief Information
officer of the Company at the 10th session of the Company's 10th Board
of Directors.
In June 2025, Mr. WANG Lei's appointment qualification was approved
by the NFRA.

IV. Changes in the information about the Company's Directors, Supervisors and Senior Management

In March 2025, Mr. John Robert Dacey, the Company's Non-executive Director, ceased to serve as Chief Financial Officer and Member of the Executive Committee at Swiss Reinsurance Company Ltd. In April 2025, Mr. John Robert Dacey was appointed as Senior Advisor to Swiss Reinsurance Company Ltd; Ms. LO Yuen Man, Elaine, the Company's Independent Nonexecutive Director, ceased to serve as Non-executive Director of Urban Renewal Authority in Hong Kong and Chairman of its Land, Rehousing and Compensation Committee. In May 2025, Mr. ZHOU Donghui, Non-executive Director of the Company, ceased to serve as Supervisor of China Aviation Development Commercial Aviation Engine Co., Ltd.; Ms. LU Qiaoling, Nonexecutive Director of the Company, ceased to serve as General Manager of the Industry and Finance Development Centre and the Capital Operation Department of China Baowu Steel Group Corporation Limited. In March 2025, Mr. ZHU Yonghong, Chairman of the Board of Supervisors of the Company, ceased to serve as Chief Accountant and Board Secretary of China Baowu Steel Group Corporation Limited, and was appointed as Chief Accountant of China State Shipbuilding Corporation Limited. In March 2025, Mr. CHEN Wei, the Company's Compliance Officer and Chief Risk Officer, was appointed as Director of CPIC P/C. In June 2025, Mr. YU Bin, the Company's Vice President, was appointed as Chairman of CPIC P/C.

Corporate governance

I. Corporate governance

The Company has established a corporate governance system comprising the SGM, the Board of Directors, the Board of Supervisors and the senior management in accordance with the provisions of relevant laws and regulations such as the Company Law of the PRC, the Securities Law of the PRC and the Insurance Law of the PRC, and has formed operational mechanisms with coordination and checks and balances among the governing body, the decision-making body, the supervisory body and the executive body. The Company improves its corporate governance structure by constant optimisation of its Group management structure, realignment of internal resources and increased interaction with the capital market.

Under the Articles of Association, the main responsibilities of the SGM are: to formulate the Company's strategic direction and investment plans; elect and replace directors and supervisors other than those who are employees of the Company and decide their remuneration; consider and approve annual financial budgets and financial accounts; consider and approve profit distribution plans and loss compensation plans of the Company; adopt proposals regarding increase or decrease in the registered capital of the Company and any merger, separation, dissolution or liquidation or change of corporate form of the Company; consider and approve the listing of all or any part of the shares on stock exchanges as well as any proposed issuance of bonds or other securities of the Company; adopt proposals regarding engagement and dismissal of the accountant of the Company which conducts statutory audits of the Company on a regular basis; amend the Articles of Association.

Under the Articles of Association, the Board of Directors is accountable to the SGM and exercises, among others, the following powers: to convene annual general meetings and implement their resolutions; determine the business and operation plans and investment plans of the Company; formulate annual financial budgets and financial accounts; formulate profit distribution and loss compensation plans; formulate proposals on increase or decrease in the registered share capital, issuance of bonds, or listing of other securities of the Company; appointment or dismissal of President, appointment or dismissal of Board Secretary based on Chairman's nomination, appointment or dismissal of Chief Internal Auditor and Internal Audit Responsible Person based on nomination of Chairman or the Audit and Related Party Transactions Control Committee, appointment or dismissal of Vice President, Chief Actuary, General Counsel, Finance Responsible Person, Compliance Responsible Person and other senior executives based on President's nomination and determine their remuneration and rewards; and develop the basic policies and systems of the Company.

As of the end of the reporting period, the Company had 13 Directors, including 2 Executive Directors, 6 Non-executive Directors, and 5 Independent Non-executive Directors. The number of directors and composition of the Board of Directors are in compliance with regulatory rules and requirements.

Under the Articles of Association, the Board of Supervisors is vested by law to exercise the following rights and powers: examine the finances of the Company; supervise behaviours of directors, president, vice presidents and other senior management during their performance of duties; review financial information including financial reports, operation reports and profit distribution plans to be submitted to the SGM; propose to convene extraordinary sessions of the SGM and propose resolutions to it; conduct investigation when detecting any major abnormality in the Company's operation.

As of the end of the reporting period, the Company had 4 Supervisors, including 2 Shareholder Representative Supervisors and 2 Employee Representative Supervisors. The number of supervisors and composition of the Board of Supervisors comply with regulatory rules and requirements.

During the reporting period, the Company held 1 shareholder general meeting, 6 Board meetings, and 3 meetings of the Board of Supervisors. Relevant resolutions were announced on the websites of the SSE and SEHK, and relevant information disclosure media in accordance with regulatory requirements.

On 11 June 2025, the Company held its 2024 Annual General Meeting, at which resolutions including the Resolution on the Report of Board of Directors for 2024 of China Pacific Insurance (Group) Co., Ltd., the Resolution on the 2024 Annual Report of China Pacific Insurance (Group) Co., Ltd., and the Resolution on the 2024 Annual Financial Report of China Pacific Insurance (Group) Co., Ltd. were considered and approved. The shareholders attending the meeting held a total of 5,987,492,610 voting shares, accounting for 62.24% of the Company's total voting shares. All the resolutions of this meeting were passed (for details, please refer to the announcements published on the websites of SSE, SEHK, LSE and the Company).

At present, there are 5 special committees under the Board of Directors of the Company, namely, the Strategic and Investment Decision-Making & ESG Committee, the Audit and Related Party Transactions Control Committee, the Nomination and Remuneration Committee, the Risk Management Committee, and the Technological Innovation and Consumer Rights Protection Committee. These special committees conduct in-depth research on professional topics and put forward recommendations to the Board of Directors.

During the reporting period, the Strategic and Investment Decision-Making & ESG Committee held 3 meetings, at which directors expressed views and made recommendations on important matters such as profit distribution and the Sustainable Development Report for 2024.

During the reporting period, the Audit and Related Party Transactions Control Committee held 5 meetings and reviewed resolutions including the 2024 Annual Report, the First Quarter Report of 2025, and the 2025 Internal Audit Work Plan of the Company. The Committee discussed and agreed with the external auditors on the schedule for audit of the financial report of the Company for the year 2024, based on overall requirements for the preparation of the annual report of the Company. It held a meeting to review the financial statements prepared by the Company and issued a written opinion on it before the external auditors commenced their work on-site. While maintaining adequate and timely communication with the external auditors, it held a meeting to conduct a second review of the financial report of the Company after issuance of preliminary audit opinions by the external auditors. The Audit and Related Party Transactions Control Committee then issued its written opinion on the report and agreed to submit it to the Board of Directors for consideration.

During the reporting period, the Nomination and Remuneration Committee convened 3 meetings and reviewed such matters as the Resolution on Performance Appraisal Results for 2024, and the Resolution on the 2025 Annual Performance Appraisal Plan of the Company.

During the reporting period, the Risk Management Committee convened 2 meetings and reviewed resolutions on the 2024 Annual Solvency Report, the 2024 Annual Compliance Report, and the 2024 Annual Risk Assessment Report of the Company, etc.

During the reporting period, the Technological Innovation and Consumer Rights Protection Committee held 2 meetings and reviewed resolutions including the Resolution on the 2024 Consumer Rights Protection Work Report and Priorities for Consumer Rights Protection for 2025, and the Resolution on the Information Technology Outsourcing Strategy and Major Outsourcing Items of the Company.

The 10th Board of Directors of the Company has 5 Independent Non-executive Directors, which consist of professionals in accounting, finance, auditing and legal affairs. The proportion of Independent Non-executive Directors exceeded one-third of all board members, in compliance with applicable regulatory requirements and the provisions of the Articles of Association.

The Company's Independent Non-executive Directors possess the required expertise and work experience and are able to perform their duties strictly in accordance with the requirements of applicable laws and regulations, regulatory documents, the Articles of Association and Provisions on Performance of Duties by Independent Non-executive Directors. They have made comments and suggestions on a wide range of aspects such as corporate governance, business operation, risk management and internal control. They have faithfully performed their duties, played a meaningful role and offered an independent and impartial perspective in the Company's decision making process, and safeguarded the interests of the Company and all shareholders, particularly minority shareholders.

Under the Articles of Association, the Company's senior management exercises the following powers: organise the implementation of Board resolutions and reports to the Board of Directors; be responsible for the Company's business management, organise the implementation of the Company's annual business plan and investment plan; draft the organisational plan and develop the basic management systems of the Company; formulate the Company's basic rules; appoint or dismiss managers other than those that fall within the remit of the Board of Directors; other powers granted by the Articles of Association and Board of Directors; and other duties prescribed by insurance regulators or the law.

As of the end of the reporting period, the Company had 12 members of senior management. According to the Articles of Association, the Company's senior management includes Executive Director, President, Vice President, Chief Actuary, Chief Internal Auditor, General Counsel, Chief Risk Officer, Board Secretary, Finance Responsible Person, Compliance Responsible Person, Internal Audit Responsible Person, as well as other management personnel as determined by the Board of Directors. Please refer to the "Directors, supervisors and senior management" section of this report for details.

II. Investor relations

During the reporting period, the Company adhered to rules and policies such as the Investor Relations Management Measures and its implementing rules, and Regulations on Shareholder Communication to improve the reach, effectiveness and efficiency of two-way investor communication. After reviewing the current status of implementation of the above rules and regulations, and in view of measures taken to optimise channels of communication and investor feedback, the Company concluded that its policies on shareholder communication have been effectively enforced during the reporting period.

The Company is committed to building a diversified, investor-centered platform of communication. During the reporting period, it held a wide range of investor relations events including online/offline results announcements, NDRs for 2024 annual results, and joint results presentations. These efforts improved connection with the global capital market while maximising direct engagement opportunities between investors and company management; it hosted about 70 IR events including strategy meetings, investor meetings, and visits from investors, over half of which were conducted face to face, with continued efforts to enhance investor communication. During the reporting period, we communicated with investors on topics concerning the foundation for the Company's high-quality development and the logic behind its long-term value creation, such as our strategic initiatives and their implementation

progress, strengthened management of market expectations, and helped investors better assess the value of the Company.

The Company adheres to fair treatment of all types of investors, ensures easy communication channels for retail investors, and enhances the protection of their rights and interests. During the reporting period, it solicited questions from investors in advance before holding results announcements, which would then be answered by management during the events. Meanwhile, retail investors could access such events via video streaming, or may choose to post their questions online, and would receive replies to all their questions on the same day. Moreover, to handle investors' inquiries, collect their comments and suggestions, the Company assigned personnel for IR hotline, fax, email, and the IR column on its official website. In the first half of 2025, it prepared and published 6 issues of Investor's Newsletters in both Chinese and English, and responded to 14 investor questions on the E-communication platform of the SSE, released briefing documents on IR events, which ensured fair access to latest information/developments of the Company by the entire investor community regardless of investor types, geographic locations or time zones.

Moreover, the Company continually refines its market value management framework and mechanisms, diversifies its market value management tools, strengthens the relay of capital market voices to management, and leverages IR as a two-way communication conduit to support company management in decision-making.

III. Information disclosure

The Company strictly abides by the regulatory rules of its listing venues, continues to enhance its transparency via efficient, compliant, well-organised information disclosure. During the reporting period, it prepared and released regular reports and interim announcements based on principles of truthfulness, accuracy, completeness, timeliness and fairness. In response to investors' needs, it continued to expand the scope of voluntary information disclosure, adopted new modes for disclosure and dissemination of non-financial information, and maintained continuity and consistency in information disclosure so that the results of its business development and its efforts in corporate social responsibility, particularly sustainable development can be communicated to investors and other stakeholders in a clear, concise, complete, effective and easy-to-understand manner, and in a way that reflects industry characteristics. That helped to improve the overall relevance and effectiveness of information disclosure. The Company continued to exercise control over insider information to ensure fair

treatment of all securities markets and types of investors. During the reporting period, it closely followed latest regulatory developments, enriched the content of information disclosure in view of its own corporate governance as an insurance group and latest information disclosure requirements for the insurance industry. In the first half of 2025, the Company received no penalties from the securities regulator and committed no major errors or omissions in information disclosure.

In addition, the Company has complied with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and the Regulation (EU) 596/2014 on market abuse in connection with its issuance of GDRs on the LSE.

IV. Risk management

Risk management is a core element of the Company's operation and management. The Company has established an overarching risk management framework that covers all organizations and positions in which the Board of Directors bears the ultimate responsibility, management provides direct leadership, risk management departments execute and coordinate, and relevant functional departments closely work together. The board of directors of the subsidiaries shoulder the ultimate responsibility for their respective risk management systems and status of operation.

The Company coordinated efforts and put in place unified risk management objectives, risk management policies, key risk measurement tools, risk management planning and information systems, and provided guidance and oversight over subsidiaries in their risk management work. While maintaining their independence in risk governance and setting up necessary firewalls, each subsidiary adheres to the risk management objectives and policies, systems and processes, methods and tools of the Group and at the same time is responsible for managing their own business risks.

Environmental and social responsibilities

In response to China's "dual-carbon" strategy, we continuously improve our green financial management system and leverage our strengths in investment, underwriting and operations to facilitate the green transformation of China's economy and society.

I. Promoting green development with green finance

We provide multiple insurance products in green energy, green transport, pollution and carbon emissions reduction, and ecological environment, with total sum assured (SA) on green insurance exceeding RMB97 trillion in the first half of 2025. We pioneered in the development of green insurance products, including carbon income loss insurance, carbon information disclosure liability insurance, and guarantee insurance for water rights pledged loans.

1. Clean energy insurance

We provide cover against various types of natural disasters and accidents during the construction and operation of green energy projects. During the reporting period, SA on clean energy insurance totalled over RMB18 trillion, including over RMB350 billion for wind power projects, over RMB400 billion for photovoltaic power projects, above RMB140 billion for hydropower projects, and over RMB100 billion for nuclear power projects.

2. New energy vehicle auto insurance

We continuously innovate business models and enhance service capabilities to support the global expansion of Chinese automakers. In the first half of 2025, we insured over 5.36 million new energy vehicles.

3. Catastrophe insurance

As one of the major catastrophe insurers in China, we developed multiple types of locally customised catastrophe insurance solutions including those for relief assistance, those driven by innovation and those linked to indexes. In the first half of 2025, SA on our catastrophe insurance was over RMB600 billion, protecting society against catastrophe risks.

4. Environmental pollution liability insurance

During the reporting period, we offered environmental pollution liability insurance with more than RMB5 billion in SA to over 2,000 chemical and electric power businesses.

5. Ecological carbon sink insurance

The Company developed a suite of ecological carbon sink insurance products to enhance carbon sequestration capacity, providing timely financial compensation for ecosystem management

and accelerating ecological restoration, thereby unlocking the value of ecological products. We launched multiple industry-first carbon sink insurance solutions covering forests, grassland, wetland, oceans, and bamboo forests, fully aligned with the needs of China's ecological civilization. In June 2025, we signed the agreement on Jiangkou County Afforestation Carbon Sink CCER (China Certified Emission Reduction) Insurance Project in Guizhou Province.

II. Empowering industry upgrade with green investment

The Company adopted international ESG investment principles and built a green investment management system, with sustained efforts in clean transport, clean energy, resource conservation, recycling and reuse, pollution prevention and control, ecological environment and infrastructure through debt investment schemes, equity investment schemes, asset-backed plans and industry funds.

1. Implementing green investment management system

CPIC formulated the Responsible Investing Policy and Regulations on ESG Investment Management for investment activities in various asset classes, industries and markets. It also formulated the Guidelines for Investment Stewardship to ensure that the Group and its subsidiaries fulfil their duty of due diligence as active shareholders, and promote the ESG performance of investees. Our subsidiaries formulated relevant rules and policies such as the Regulations on Green Finance Investment Management, Policies on ESG Bond Investment, and Regulations on Sustainable Development Risk Management to incorporate ESG factors into the whole process of investment and risk management.

The Company established and continued to improve its ESG Ratings Analytics System. In 2025, it launched ESG assessment of third-party asset managers and PRI reporting, optimised asset identification tagging to improve the smartness and standardization of ESG investment management.

2. Enhancing support for green development

(1) Infrastructure debt investment plans

As of the end of June 2025, we invested RMB2.5 billion in the CPIC-Wuhan Metro Infrastructure Debt Investment Plan (Phase II) for the construction of the Wuhan Metro Line 7 (Phase I) and Caidian Line projects. The plan obtained (the highest) G1 green certification from Lianhe Equator Environmental Assessment Co., Ltd.

A sum of RMB1.85 billion was invested in the CPIC-Wuhan Metro Infrastructure Debt Investment Plan (Phase III) for the construction of the Wuhan Metro Line 9 project. The plan obtained (the highest) G1 green certification from Lianhe Equator Environmental Assessment Co., Ltd.

An amount of RMB1.3 billion was invested in the CPIC-Chengdu Rail Transit Infrastructure Debt Investment Plan (Phase II) for the construction of the Chengdu Metro Line 6 Phase I & II projects. The plan obtained (the highest) G1 green certification from Lianhe Equator Environmental Assessment Co., Ltd.

The Changjiang Pension-Hunan Rail Transit Infrastructure Green Debt Investment Plan received RMB400 million in contribution, bringing the total fundraising scale to RMB1.2 billion, and the proceeds was to used for debt restructuring of the Changsha-Zhuzhou-Xiangtan Intercity Railway Project. The plan obtained (the highest) G1 green certification from Lianhe Equator Environmental Assessment Co., Ltd.

(2) ESG-themed products

We completed the filing and issuance of the Changjiang Pension ESG Asset Management Product, with a size of RMB467 million.

III. Promoting low-carbon environmental protection through green operation

1. Operational carbon emissions management

More target-driven. The Company emulated domestic and international best practices, systematically reviewed historical patterns and characteristics of carbon emissions, explored possibilities of decarbonisation across all emission sources, and evaluated various reduction pathways based on its actual conditions. The effort resulted in a clear quantitative target: a 20% reduction in the Group's total operational carbon emissions (excluding CPIC Home retirement communities and rehabilitation hospitals) by 2028 compared with 2023 levels.

Accelerating the development of a carbon-emission-centric management system. The Company formulated the Carbon Accounting Management Rules for Operations, which clearly defined carbon data statistics and management requirements; continuously optimised the operational carbon footprint management platform to support standardized carbon data management; and conducted regular carbon data statistical analysis to ensure orderly implementation of carbon emissions targets.

2. Green low-carbon park

We completed a low-carbon and energy-efficient renovation project for the CPIC 929 Low-Carbon Operation Demonstration Park to effectively reduce and control energy consumption of the workplace. CPIC Home retirement communities in Chengdu, Nanjing, Hangzhou, Shanghai Putuo, Shanghai Chongming all obtained the 3-star green building design labelling. In the first half of 2025, the Beijing Pacific Insurance Tower and Chengdu Pacific Insurance Financial Plaza achieved LEED Platinum certification.

3. Green office

In compliance with relevant laws and regulations such as the Environmental Protection Law of the People's Republic of China, the Energy Conservation Law of the People's Republic of China and Guidelines on Green Operation of Self-Use Headquarters Properties of CPIC Group, we incorporated "green development, energy conservation and emissionsreduction" into our daily operation, with development of relevant KPIs. We focused on smart building construction, energy efficiency management, resource conservation, energy-saving technology application, green travel and low-carbon office/life, so as to boost sustainable development.

The Company is not in a high-pollution industry and its main business activities do not have any material negative impact on the ecological environment or natural resources. In the first half of 2025, CPIC strictly complied with environmental laws and regulations and incurred no penalties due to environmental violations, nor did it receive any complaints about environmental issues.

4. Inclusive carbon management

We continued to promote the CPIC Tan Pu Hui platform for inclusive carbon management, which enabled the measurement and incentivization of low-carbon behaviours and encouraged users to embrace green and low-carbon philosophies. By the end of June 2025, the system had covered over 300 Chinese cities, with more than 600,000 users.

IV. Protecting biodiversity to boost harmon-ious co-existence

The Company contributes to biodiversity and ecological well-being in an all-around way.

We underwrote public liability insurance against damage caused by wild Asian elephants in Xishuangbanna and Pu'er, Yunnan Province for over 10 consecutive years, paying out a total of over RMB460 million in claims to over 280,000 farmers.

With the support of local forestry authorities in Zhejiang and Jiangsu, we rolled out the mechanism of "Forest Chiefs + Ancient & Rare Trees Insurance", which indemnifies costs incurred as a result of rescue / treatment of trees whose normal growth is stunted by accidents, weather disasters, geological hazards, diseases and insect pests, etc.

We jointly released the "Belt and Road" Biodiversity Conservation White Paper with CAS StarTech (Beijing) Co., Ltd. We used the advanced remote-sensing satellite technology to collect accurate data for environmental monitoring, as part of our effort to build a "Belt and Road" biodiversity analytics framework.

We collaborated with the Sichuan Ruoergai Wetland National Nature Reserve Administration to explore insurance mechanisms addressing risks such as local grassland degradation.

We continued to preserve the Sanjiangyuan Ecological Park to protect local environment. Over 90% of the nearly 120,000 trees we planted across an area of 134 hectares have survived, reducing 1,600 tons of carbon emissions each year.

V. Rural revitalization: supporting agriculture, rural areas, and farmers

1. Assistance to rural areas

Medical assistance. To contribute to the Healthy China Initiative, we rolled out terminal illness and long-term care insurance programmes in remote rural areas to help prevent local farmers from falling into poverty or returning to poverty due to illnesses. We also promoted Huiminbao, an affordable medical insurance programme, in rural areas.

Village-based assistance teams. As of the end of June 2025, CPIC had deployed 279 on-site rural assistance volunteers across more than 20 provinces and autonomous regions in China, including 65 "first secretaries" assigned to villages.

Assistance through purchase. To increase farmers' income, we helped with the sales of farm produce by various means - purchase by the Company for employee benefits, purchase by CPIC employee cafeteria or directly by CPIC employees, live-stream selling, exclusive sales and so on.

2. Agricultural insurance

We strived to improve the coverage and efficiency of agricultural insurance and cumulatively developed a total of about 5,000 agricultural insurance products, spanning agriculture, forestry, animal husbandry and fishery. In the first half of 2025, we developed 771 new agricultural insurance products and provided RMB442.93 billion in agricultural risk cover via issuance of 11.103 million insurance policies, and made payments on 1.23 million insurance claims.

Safeguarding national food security. We continued to expand risk coverage for rice, wheat, corn, and other strategic agricultural products vital to the national economy and people's livelihoods as part of our efforts to build a multi-tiered agricultural insurance system. In the first half of 2025, CPIC provided RMB113.8 billion in SA for the three core staple crops.

Serving local niche agribusiness. We rolled out local specialty insurance programmes under the target of "one county, one specialty product", and "one county, multiple specialty products", providing insurance services for emerging industries under new scenarios to meet demand of modern agricultural businesses across their full life-cycles. In the first half of 2025, we provided risk protection to over 100 specialty agricultural products across 31 provinces, autonomous regions, and municipalities directly under the central government.

Digitally-enabled agricultural insurance: CPIC continuously refined its disaster response mechanisms which integrated "insurance, prevention, reduction, relief, and compensation" as well as the organisational support system for agricultural insurance. The Company developed the "CPIC e-Agricultural Insurance" digital intelligent operational system, and built multiple risk management technology platforms, including the Crop Insurance Risk Management Platform ("Huiyan·Zhiyuan"), Livestock Insurance Risk Management Platform ("Jiebian"), Fisheries Risk Management Platform ("Yu Zhi Yuan"), and Meteorological Risk Early Warning Platform ("Zhi Tian Hui Nong"), which leveraged big data, AI, and IoT technologies to enhance risk reduction. In the first half of 2025, our risk reduction platforms handled a total of 206,000 visits or service requests from farming households, and of this, the wheat growth monitoring service covered 459,533 hectares of land across 409 townships in 16 provinces.

The Company led the industry in digitalisation of agricultural insurance archives, which significantly enhanced the efficiency of product development and risk protection capabilities. In July 2025, oursingle-set digital archive management pilot project for agricultural insurance won the first prize at the 5th Information Technology Service Application Skills Competition organised by the China Information Association.

Other Information

Documents available for inspection

I. Sealed financial statements signed by the legal representative, principal in charge of accounting and head of accounting department

II. Original copies of all publicly disclosed announcements and documents of the Company during the reporting period

III. Interim reports disclosed in other security markets

CHINA PACIFIC INSURANCE (GROUP) CO., LTD. INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025

Contents

Pages
I REVIEW REPORT 1
II INTERIM FINANCIAL STATEMENTS
Interim Consolidated Balance Sheet 2 - 3
Interim Consolidated Income Statement 4 - 5
Interim Consolidated Statement of Changes in Equity 6 - 7
Interim Consolidated Cash Flow Statement 8 - 9
Interim Company Balance Sheet 10
Interim Company Income Statement 11
Interim Company Statement of Changes in Equity 12
Interim Company Cash Flow Statement 13
Notes to the Interim Financial Statements 14 - 88

APPENDIX SUPPLEMENTARY INFORMATION TO THE INTERIM FINANCIAL STATEMENTS

Net Asset Return and Earnings per Share A1
----------------------------------------- ----

Independent review report

To the shareholders of China Pacific Insurance (Group) Co., Ltd.

(A joint stock company incorporated in the People's Republic of China with limited liability)

Introduction

We have reviewed the interim financial information set out on pages 2 to 88, which comprises the interim consolidated and company balance sheets of China Pacific Insurance (Group) Co., Ltd. (hereinafter "CPIC") as at 30 June 2025, and the related interim consolidated and company income statements, the interim consolidated and company statements of changes in equity and the interim consolidated and company cash flow statements for the six-month period then ended, and the explanatory notes. Management of CPIC is responsible for the preparation of the interim financial information in accordance with the requirements of Accounting Standards for Business Enterprises 32 Interim Financial Reporting ("CAS 32"). Our responsibility is to express a conclusion on this interim financial information based on our review. Our report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with CAS 32.

Ernst & Young Hua Ming LLP

Certified Public Accountants Beijing, the People's Republic of China 28 August 2025

INTERIM CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

ASSETS Note V 30 June 2025 31 December 2024
(Unaudited) (Audited)
Cash at bank and on hand 1 46,404 29,357
Derivative financial assets 11 26
Securities purchased under agreements to resell 2 21,349 10,905
Term deposits 3 178,219 173,818
Financial investments: 2,630,303 2,482,029
Financial assets at fair value through profit or loss 4 674,401 667,199
Financial assets at amortised cost 5 55,357 64,844
Debt investments at fair value through other
comprehensive income 6 1,746,373 1,607,972
Equity investments at fair value through other
comprehensive income 7 154,172 142,014
Insurance contract assets 15 - 22
Reinsurance contract assets 16 44,068 46,081
Long-term equity investments 8 13,148 22,520
Restricted statutory deposits 9 6,898 6,851
Investment properties 28,396 8,951
Fixed assets 22,715 20,255
Construction in progress 3,357 2,489
Right-of-use assets 1,837 2,921
Intangible assets 6,993 7,347
Goodwill 1,357 1,357
Deferred income tax assets 10 6,919 3,464
Other assets 11 18,126 16,514
TOTAL ASSETS 3,030,100 2,834,907

INTERIM CONSOLIDATED BALANCE SHEET (continued)

AS AT 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

LIABILITIES AND EQUITY Note V 30 June 2025 31 December 2024
(Unaudited) (Audited)
Derivative financial liabilities 60 96
Securities sold under agreements to repurchase 12 180,205 181,695
Premium received in advance 6,192 18,044
Employee benefits payable 7,810 10,169
Taxes payable 13 4,283 2,480
Bonds payable 14 10,103 10,286
Insurance contract liabilities 15 2,428,583 2,229,514
Commission and brokerage payable 6,674 5,942
Insurance premium reserves 652 129
Lease liabilities 1,638 2,722
Deferred income tax liabilities 10 2,707 7,362
Long-term borrowings 157 -
Other liabilities 67,830 47,987
Total liabilities 2,716,894 2,516,426
Issued capital 17 9,620 9,620
Capital reserves 18 79,939 79,948
Other comprehensive income/(loss) 34 (12,390) 14,917
Surplus reserves 19 5,114 5,114
General reserves 20 30,008 29,928
Retained profits 21 169,580 151,890
Equity attributable to shareholders of the parent 281,871 291,417
Non-controlling interests 31,335 27,064
Total equity 313,206 318,481
TOTAL LIABILITIES AND EQUITY 3,030,100 2,834,907

The financial statements are signed by the persons below:

FU Fan SU Gang XU Zhen
Legal representative Principal in charge of accounting Head of accounting department

INTERIM CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

Note V For the six
months ended
30 June 2025
For the six
months ended
30 June 2024
(Unaudited) (Unaudited)
Operating income 200,496 194,634
Insurance revenue 22 141,824 137,019
Interest income 23 29,061 27,769
Investment income 24 21,671 6,893
Including: Share of losses of associates and joint
ventures (145) (124)
Gains on derecognition of financial
assets measured at amortised cost - 4
Other income 106 86
Gains arising from changes in fair value 25 5,856 20,945
Exchange (losses)/gains (13) 32
Other operating income 26 1,918 1,889
Gains on disposal of assets 73 1
Operating expenses (168,224) (165,187)
Insurance service expenses 27 (120,169) (116,298)
Allocation of reinsurance premiums (7,290) (7,962)
Less: Recoveries of insurance service expenses
from reinsurers 6,245 7,602
Insurance finance expenses for insurance
contracts issued (40,698) (44,030)
Less: Reinsurance finance income for reinsurance
contracts held 715 1,036
Changes in insurance premium reserves (523) (449)
Interest expenses 28 (2,217) (1,192)
Commission and brokerage expenses
Taxes and surcharges
29 (3)
(216)
(15)
(178)
Operating and administrative expenses 30 (3,462) (3,065)
Impairment losses on financial assets 31 (14) 52
Other operating expenses 32 (592) (688)
Operating profit 32,272 29,447
Add: Non-operating income 36 24
Less: Non-operating expenses (49) (76)
Profit before tax 32,259 29,395
Less: Income tax 33 (3,453) (3,537)
Net profit 28,806 25,858
Classified by continuity of operations:
Net profit from continuing operations 28,806 25,858
Net profit from discontinued operations - -
Classified by ownership of the equity:
Attributable to shareholders of the parent 27,885 25,132
Non-controlling interests 921 726

INTERIM CONSOLIDATED INCOME STATEMENT (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

Note V For the six
months ended
30 June 2025
For the six
months ended
30 June 2024
(Unaudited) (Unaudited)
Other comprehensive income/(loss) 34
Other comprehensive income/(loss) that will not be
reclassified to profit or loss:
1,478 5,083
Changes in the fair value of equity investments at
fair value through other comprehensive income
Insurance finance income/(expenses) for insurance
1,889 5,831
contracts issued that will not be reclassified to
profit or loss
(411) (748)
Other comprehensive income/(loss) that will be
reclassified to profit or loss:
Share of other comprehensive income/(loss) that
(28,978) (2,628)
will be reclassified to profit or loss of investees
accounted for using the equity method
Changes in the fair value of debt instruments at
- 4
fair value through other comprehensive income
Changes in provisions for credit risks of debt
5,388 50,673
instruments at fair value through other
comprehensive income
102 (98)
Exchange differences on translation of foreign
operations
Insurance finance income/(expenses) for insurance
(17) 7
contracts issued that will be reclassified to
profit or loss
Insurance finance income/(expenses) for
(34,484) (53,195)
reinsurance contracts held that will be
reclassified to profit or loss
33 (19)
Other comprehensive income/(loss) (27,500) 2,455
Total comprehensive income 1,306 28,313
Attributable to shareholders of the parent 853 27,541
Attributable to non-controlling interests 453 772
Earnings per share 35
Basic earnings per share (RMB per share) 2.90 2.61
Diluted earnings per share (RMB per share) 2.90 2.61

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

For the six months ended 30 June 2025 (Unaudited)
Attributable to shareholders of the parent
Issued
capital
Capital
reserves
Other
comprehensive
income/(loss)
Surplus
reserves
General
reserves
Retained
profits
Sub-total Non
controlling
interests
Total equity
Balance at the beginning of the period 9,620 79,948 14,917 5,114 29,928 151,890 291,417 27,064 318,481
Movements in the current period
Net profit
Other comprehensive income/(loss)
-
-
(9)
-
(27,307)
-
-
-
80
-
17,690
27,885
(9,546)
27,885
4,271
921
(5,275)
28,806
(Note V 34) - - (27,032) - - - (27,032) (468) (27,500)
Total
comprehensive
income
Acquisition
of subsidiaries
Other equity changes caused by
-
-
-
-
(27,032)
-
-
-
-
-
27,885
-
853
-
453
4,670
1,306
4,670
equity method accounting
Profit distribution
-
-
(9)
-
-
-
-
-
-
80
-
(10,470)
(9)
(10,390)
-
(852)
(9)
(11,242)
Appropriations to general reserves
Profit distribution to
shareholders
-
-
-
-
-
-
-
-
80
-
(80)
(10,390)
-
(10,390)
-
(347)
-
(10,737)
Profit distribution to other equity
instrument holders
Transfer of other comprehensive
- - - - - - - (505) (505)
income/(loss)
to retained profits
Balance at the end of the period
-
9,620
-
79,939
(275)
(12,390)
-
5,114
-
30,008
275
169,580
-
281,871
-
31,335
-
313,206

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

For the six months ended 30 June 2024 (Unaudited)
Attributable to shareholders of the parent
Issued
capital
Capital
reserves
Other
comprehensive
income/(loss)
Surplus
reserves
General
reserves
Retained
profits
Sub-total Non
controlling
interests
Total equity
Balance at the beginning of the period 9,620 79,950 7,992 5,114 25,462 121,448 249,586 18,118 267,704
Movements in the current period - (4) 2,490 - 74 15,164 17,724 8,228 25,952
Net profit
Other comprehensive income/(loss)
- - - - - 25,132 25,132 726 25,858
(Note V 34) - - 2,409 - - - 2,409 46 2,455
Total
comprehensive
income
Other equity changes caused by
- - 2,409 - - 25,132 27,541 772 28,313
equity method accounting
Capital invested and reduced by
- (2) - - - - (2) - (2)
holders - (2) - - - - (2) 8,002 8,000
Capital invested by other equity
instrument holders
- (2) - - - - (2) 8,002 8,000
Profit distribution - - - - 74 (9,887) (9,813) (546) (10,359)
Appropriations to general reserves
Profit distribution to shareholders
Profit distribution to other equity
-
-
-
-
-
-
-
-
74
-
(74)
(9,813)
-
(9,813)
-
(231)
-
(10,044)
instrument holders
Transfer of other comprehensive
- - - - - - - (315) (315)
income/(loss)
to retained profits
- - 81 - - (81) - - -
Balance at the end of the period 9,620 79,946 10,482 5,114 25,536 136,612 267,310 26,346 293,656

INTERIM CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

Note V For the six
months ended
30 June 2025
For the six
months ended
30 June 2024
(Unaudited) (Unaudited)
Cash flows from operating activities
Cash received from premium of insurance contracts
issued 277,867 253,730
Net cash received from reinsurance contracts held 2,142 -
Net decrease in policy loans 2,201 1,498
Refund of taxes and surcharges 228 57
Cash received relating to other operating activities 2,712 2,887
Sub-total of cash inflows 285,150 258,172
Cash paid for claims under insurance contracts issued (93,624) (92,514)
Net cash paid under reinsurance contracts issued (985) (740)
Net cash paid under reinsurance contracts held - (586)
Cash paid for commission and brokerage expenses (16,647) (17,669)
Cash paid to and on behalf of employees (14,600) (14,930)
Payments of taxes and surcharges (5,076) (5,667)
Cash paid relating to other operating activities (33,715) (36,141)
Sub-total of cash outflows (164,647) (168,247)
Net cash flows from operating activities 120,503 89,925
Cash flows from investing activities
Cash received from disposal of investments 369,732 372,772
Cash received from returns on investments and
interest income 34,954 35,093
Net cash received from disposal of subsidiaries and
other business entities 133 48
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 52 14
Cash received relating to other investing activities 112 -
Sub-total of cash inflows 404,983 407,927
Cash paid to acquire investments (496,360) (448,159)
Net cash paid to acquire subsidiaries and other
business entities (278) (161)
Cash paid to acquire fixed assets, intangible assets
and other long-term assets (2,061) (1,380)
Cash paid relating to other investing activities (1,673) (13)
Sub-total of cash outflows (500,372) (449,713)
Net cash flows used in investing activities (95,389) (41,786)

INTERIM CONSOLIDATED CASH FLOW STATEMENT (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

Note V For the six
months ended
30 June 2025
(Unaudited)
For the six
months ended
30 June 2024
(Unaudited)
Cash flows from financing activities
Cash received from capital contributions
- 8,000
Cash received relating to other financing activities 8,700 3,667
Sub-total of cash inflows 8,700 11,667
Cash repayments of borrowings (1,070) (8,218)
Cash payments for distribution of dividends, profits
or interest expenses
(2,522) (1,416)
Decrease in securities sold under agreements to
repurchase, net
(1,437) (19,201)
Cash paid relating to other financing activities (1,223) (803)
Sub-total of cash outflows (6,252) (29,638)
Net cash flows from/(used in) financing activities 2,448 (17,971)
Effects of exchange rate changes on cash and cash
equivalents (43) 39
Net increase in cash and cash equivalents 27,519 30,207
Add: Cash and cash equivalents at the beginning of
the period
39,673 33,740
Cash and cash equivalents at the end of the period 36 67,192 63,947

INTERIM COMPANY BALANCE SHEET

AS AT 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

ASSETS 30 June
2025
31 December
2024
(Unaudited) (Audited)
Cash at bank and on hand 5,516 5,163
Securities purchased under agreements to resell 600 -
Term deposits 8,370 6,997
Financial investments: 56,056 57,394
Financial assets at fair value through profit or loss 22,517 22,725
Financial assets at amortised cost 6,595 8,301
Debt investments at fair value through other
comprehensive income 22,261 21,729
Equity investments at fair value through other
comprehensive income 4,683 4,639
Long-term equity investments 69,972 70,213
Investment properties 1,999 2,131
Fixed assets 1,843 1,840
Construction in progress 3 3
Right-of-use assets 259 288
Intangible assets 238 267
Other assets 10,952 561
Total assets 155,808 144,857
LIABILITIES AND EQUITY
Securities sold under agreements to repurchase 950 910
Employee benefits payable 155 244
Taxes payable 95 13
Lease liabilities 296 329
Deferred income tax liabilities 466 475
Other liabilities 11,077 780
Total liabilities 13,039 2,751
Issued capital 9,620 9,620
Capital reserves 79,312 79,312
Other comprehensive income/(loss) 1,231 1,260
Surplus reserves 4,810 4,810
Retained profits 47,796 47,104
Total equity 142,769 142,106
TOTAL LIABILITIES AND EQUITY 155,808 144,857

INTERIM COMPANY INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

For the six
months ended
30 June 2025
(Unaudited)
For the six
months ended
30 June 2024
(Unaudited)
Operating income 12,049 11,070
Interest income
Investment income
736
11,010
895
9,482
Including: Share of gains/(losses) of associates and
joint ventures 1 (7)
Other income 2 6
Gains arising from changes in fair value 30 334
Exchange (losses)/gains (36) 27
Other operating income 307 326
Operating expenses (835) (885)
Interest expenses (18) (19)
Taxes and surcharges (35) (39)
Operating and administrative expenses (697) (718)
Impairment losses on financial assets 26 10
Other operating expenses (111) (119)
Operating profit 11,214 10,185
Add: Non-operating income 3 6
Less: Non-operating expenses (5) (16)
Profit before tax 11,212 10,175
Less: Income tax (127) (148)
Net profit 11,085 10,027
Classified by continuity of operations:
Net profit from continuing operations
11,085 10,027
Net profit from discontinued operations - -
Other comprehensive income/(loss)
Other comprehensive income/(loss) that will not be
reclassified to profit or loss: 41 275
Changes in the fair value of equity investments at
fair value through other comprehensive income 41 275
Other comprehensive income/(loss) that will be
reclassified to profit or loss: (73) 346
Share of other comprehensive income/(loss) that will
be reclassified to profit or loss of investees
accounted for using the equity method - 1
Changes in the fair value of debt instruments at fair
value through other comprehensive income (73) 348
Changes in provisions for credit risks of debt
instruments at fair value through other
comprehensive income - (3)
Other comprehensive income/(loss) (32) 621
Total comprehensive income 11,053 10,648

INTERIM COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

For the six months ended 30 June 2025 (Unaudited)
Issued
capital
Capital
reserves
Other
comprehensive
income/(loss)
Surplus
reserves
Retained
profits
Total
equity
Balance at the beginning of the period 9,620 79,312 1,260 4,810 47,104 142,106
Movements in the current period
Net profit
-
-
-
-
-
-
(29)
-
(32)
-
-
-
692
11,085
-
663
11,085
(32)
Other comprehensive income/(loss)
Total comprehensive income
Profit distribution
-
-
-
-
(32)
-
-
-
11,085
(10,390)
11,053
(10,390)
Profit distribution to shareholders
Transfer of other comprehensive
income/(loss) to retained profits
-
-
-
-
-
3
-
-
(10,390)
(3)
(10,390)
-
Balance at the end of the period 9,620 79,312 1,231 4,810 47,796 142,769
For the six months ended 30 June 2024 (Unaudited)
Issued
capital
Capital
reserves
Other
comprehensive
income/(loss)
Surplus
reserves
Retained
profits
Total
equity
Balance at the beginning of the period 9,620 79,312 423 4,810 46,114 140,279
Movements in the current period
Net profit
-
-
-
-
619
-
-
-
216
10,027
835
10,027
Other comprehensive income/(loss) - - 621 - - 621
Total comprehensive income
Profit distribution
-
-
-
-
621
-
-
-
10,027
(9,813)
10,648
(9,813)
Profit distribution to shareholders
Transfer of other comprehensive
- - - - (9,813) (9,813)
income/(loss) to retained profits - - (2) - 2 -
Balance at the end of the period 9,620 79,312 1,042 4,810 46,330 141,114

INTERIM COMPANY CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

For the six
months ended
30 June 2025
For the six
months ended
30 June 2024
(Unaudited) (Unaudited)
Cash flows from operating activities
Refund of taxes and surcharges
Cash received relating to other operating activities
195
242
-
335
Sub-total of cash inflows 437 335
Cash paid to and on behalf of employees
Payments of taxes and surcharges
Cash paid relating to other operating activities
(390)
(135)
(283)
(406)
(164)
(418)
Sub-total of cash outflows (808) (988)
Net cash flows used in operating activities (371) (653)
Cash flows from investing activities
Cash received from disposal of investments
Cash received from returns on investments and
interest income
8,920
1,051
11,984
1,261
Net cash received from disposal of subsidiaries and
other business entities
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
391
1
-
-
Sub-total of cash inflows 10,363 13,245
Cash paid to acquire investments
Cash paid to acquire fixed assets, intangible assets and
(8,943) (8,528)
other long-term assets (85) (67)
Sub-total of cash outflows (9,028) (8,595)
Net cash flows from investing activities
Cash flows from financing activities
Increase in securities sold under agreements to
repurchase, net
1,335
40
4,650
-
Sub-total of cash inflows 40 -
Cash payments for distribution of dividends, profits or
interest expenses
Decrease in securities sold under agreements to
repurchase, net
Cash paid relating to other financing activities
(13)
-
(19)
(14)
(2,025)
(33)
Sub-total of cash outflows (32) (2,072)
Net cash flows from/(used in) financing activities 8 (2,072)
Effects of exchange rate changes on cash and cash
equivalents
(19) 27
Net increase in cash and cash equivalents
Add: Cash and cash equivalents at the beginning of
953 1,952
the period 5,163 6,286
Cash and cash equivalents at the end of the period 6,116 8,238

NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

I. GENERAL INFORMATION

China Pacific Insurance (Group) Co., Ltd. (the "Company") was restructured from China Pacific Insurance Co., Ltd. in October 2001 pursuant to the approval of the State Council of the People's Republic of China (the PRC) and Circular [2001] No. 239 issued by the former China Insurance Regulatory Commission (the "CIRC"). After the restructuring, the Company obtained a business licence (No. 1000001001110) on 24 October 2001 newly issued by the former State Administration for Industry and Commerce of the PRC, and had an original issued capital of RMB 2,006.39 million, with its registered address and headquarters in Shanghai. The Company increased its issued capital to RMB 6,700 million through issuance of new shares to its then existing shareholders and new shareholders in 2002 and from February to April 2007.

In December 2007, the Company conducted a public offering of 1,000 million A shares on the Shanghai Stock Exchange to increase its issued capital to RMB 7,700 million. On 25 December 2007, the Company's A shares were listed and traded on the Shanghai Stock Exchange.

In December 2009, the Company conducted a global offering of overseas listed foreign shares ("H shares"). Upon the completion of the H share offering, the issued capital was increased to RMB 8,600 million. On 23 December 2009, the Company's H shares were listed and traded on the Hong Kong Stock Exchange.

In November 2012, the Company conducted a non-public offering of 462 million H shares. Upon completion of the H share offering, the issued capital was increased to RMB 9,062 million, and the Company received the approval from the former CIRC in December 2012 for the change of its registered capital. The Company obtained the business licence (registration No. 100000000011107) on 5 February 2013. The Company renewed its business licence on 15 December 2015, and its unified social credit code is No. 91310000132211707B.

In June 2020, the Company issued 102,873,300 Global Depositary Receipts ("GDRs") on the London Stock Exchange (the "LSE") and became listed on the LSE. In July 2020, the Company further issued 8,794,991 GDRs. Each GDR represents five A shares of the Company. After the GDR issuance, the issued capital of the Company was increased to approximately RMB 9,620 million.

The authorised business scope of the Company includes investing in insurance enterprises; supervising and managing the domestic and overseas reinsurance businesses of subsidiaries and their utilisation of funds; and participating in approved international insurance activities. The principal activities of the Company and its subsidiaries (the "Group" or "CPIC Group") are property and casualty insurance businesses, life and health insurance businesses, pension and annuity insurance businesses, as well as investments with insurance funds, etc.

Major subsidiaries included in the consolidation scope in the current period are detailed in Note IV.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

II. BASIS OF PREPARATION

The interim financial statements have been prepared in accordance with Accounting Standards for Business Enterprises - Basic Standards, the specific accounting standards promulgated and revised subsequently, the Guidelines for the Application of Accounting Standards for Business Enterprises, the Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafter collectively referred to as "CASs") promulgated by the Ministry of Finance of the People's Republic of China. These interim financial statements are presented and disclosed in accordance with the requirements of CAS No. 32 - Interim Financial Reporting promulgated by the Ministry of Finance of the People's Republic of China, Standard on the Content and Format of Information Disclosure by Companies Offering Securities to the Public No. 3 - Content and Format of Interim Reports (revised in 2025) promulgated by the China Securities Regulatory Commission ("CSRC") and Appendix XVI of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Therefore, they do not include all information and disclosures in the annual financial statements.

The financial statements have been prepared on a going concern basis.

They have been prepared under the historical cost convention, other than financial instruments that have been measured at fair value, insurance contracts and reinsurance contracts held that have been measured primarily based on actuarial methods. If the assets are impaired, corresponding provisions for impairment shall be made according to relevant regulations.

The accounting policies applied in the preparation of the interim financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2024. These financial statements should be read in conjunction with the Group's financial statements for 2024.

III. TAXES

The main types of taxes and tax rates applicable to the Group in China are set out below:

Corporate income tax - 25% on its taxable income under current tax laws and relevant
regulations
Value-added tax
("VAT")
- The taxable value-added amount (Tax payable is calculated using the
taxable sales amount multiplied by the applicable tax rate less
deductible VAT input of the current period) determined under current
tax laws and relevant regulations, applicable tax rates: 3%, 5%, 6%,
9% or 13%
City maintenance and
construction tax
- 1%, 5% or 7% of the VAT actually paid
Educational
supplementary tax
- 3% of the VAT actually paid
Local educational
supplementary tax
- 2% of the VAT actually paid

The main types of taxes and tax rates of payable by the Group with regard to its overseas businesses are paid in accordance with relevant regulations of local tax laws.

The taxes to be paid by the Group will be verified by relevant tax authorities.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

IV. SCOPE OF CONSOLIDATION

Name Type of legal
entity
Business scope and
principal activities
Place of
incorporation/
registration
Place of
operations
Registered
capital
(RMB
thousand,
unless otherwise
specified)
Issued capital
/Paid-up capital
(RMB thousand,
unless otherwise
specified)
equity attributable Percentage of
to the Company
(%)
Percentage
of voting
rights
attributable
to the
Company
(%)
Note
Direct Indirect
China Pacific Property Insurance Co.,
Ltd. ("CPIC Property")
China Pacific Life Insurance Co., Ltd.
Joint stock limited
company
Joint stock limited
Property and casualty
insurance
Shanghai The PRC 19,948,088 19,948,088 98.50 - 98.50
("CPIC
Life")
company Life and health insurance Shanghai The PRC 8,628,200 8,628,200 98.29 - 98.29
Pacific Asset Management Co., Ltd.
("CPIC Asset Management")
Limited liability
company
Investment management Shanghai Shanghai 2,100,000 2,100,000 80.00 19.67 100.00
China Pacific Insurance Co., (H.K.) Ltd.
("CPIC H.K.")
Shanghai Pacific Insurance Real Estate
Limited liability
company
Property and casualty
insurance
Hong Kong Hong Kong HKD 250,000
thousand
HKD 250,000
thousand
- 98.50 100.00 (1)
Management Co., Ltd. ("CPIC Real
Estate")
Changjiang Pension Insurance Co., Ltd.
Limited liability
company
Joint stock
limited
Real estate management
Pension fund and insurance
Shanghai Shanghai 115,000 115,000 100.00 - 100.00
("Changjiang Pension")
CPIC Investment Management (H.K.)
company asset management Shanghai Shanghai 3,000,000 3,000,000 - 61.10 62.16
Company Limited ("CPIC Limited liability HKD 200,000 HKD 200,000
Investment (H.K.)") company Investment management Hong Kong Hong Kong thousand thousand 12.25 87.46 100.00
City Island Developments Limited Limited liability The British Virgin The British Virgin
("City Island") company
Limited liability
Investment holding Islands
The British Virgin
Islands
The British Virgin
USD
50,000
USD
1,000
- 98.29 100.00
Great Winwick Limited* company
Limited liability
Investment holding Islands Islands USD
50,000
USD
100
- 98.29 100.00
Great Winwick (Hong Kong) Limited * company
Limited liability
Investment holding Hong
Kong
The British Virgin
Hong Kong
The British Virgin
HKD
10,000
HKD
1
- 98.29 100.00
Newscott Investments Limited *
Newscott (Hong Kong) Investments
company
Limited liability
Investment holding Islands Islands USD
50,000
USD
100
- 98.29 100.00
Limited * company Investment holding Hong Kong Hong Kong HKD
10,000
HKD
1
- 98.29 100.00

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts in RMB million unless otherwise stated)

IV. SCOPE OF CONSOLIDATION (continued)

Name Type of legal
entity
Business scope and
principal activities
Place of
incorporation/
registration
Place of
operations
Registered
capital
(RMB thousand,
unless otherwise
specified)
Issued capital
/Paid-up capital
(RMB thousand,
unless otherwise
specified)
equity attributable Percentage of
to the Company
(%)
Percentage
of voting
rights
attributable
to the
Company
(%)
Note
Direct Indirect
Shanghai Xin Hui Property
Development Co., Ltd. * ("Xin Hui Limited liability USD 15,600 USD 15,600
Property") company Real estate Shanghai Shanghai thousand thousand - 98.29 100.00
Shanghai He Hui Property
Development Co., Ltd. * ("He Hui Limited liability USD 46,330 USD 46,330
Property") company Real estate Shanghai Shanghai thousand thousand - 98.29 100.00
Pacific Insurance Online Services
Technology Co., Ltd. ("CPIC Limited liability
Online Services") company Consulting services, etc. Shandong The PRC 200,000 200,000 100.00 - 100.00
Tianjin Trophy Real Estate Co., Ltd. Limited liability
("Tianjin Trophy") company Real estate Tianjin Tianjin 353,690 353,690 - 98.29 100.00
Pacific Insurance Senior Living Senior living property
Investment Management Co., Ltd. Limited liability investment and
("CPIC Senior Living
Investment")
company management, etc. Shanghai Shanghai 5,000,000 5,000,000 - 98.29 100.00
Pacific Health Insurance Co., Ltd. Joint stock limited
("CPIC
Health")
company Health insurance Shanghai The PRC 3,600,000 3,600,000 85.05 14.69 100.00
Pacific Anxin Agricultural Insurance Joint stock limited Property and casualty
Co., Ltd. ("PAAIC") company insurance Shanghai The PRC 1,080,000 1,080,000 - 66.76 67.78
Pacific Medical & Healthcare
Management Co., Ltd. ("Pacific Limited liability Medical consulting
Medical & Healthcare") company services, etc. Shanghai Shanghai 1,000,000 1,000,000 - 98.29 100.00
Pacific Insurance Agency Co., Ltd. Limited liability
("Pacific Insurance Agency") company Insurance agency Shanghai Shanghai 50,000 50,000 - 100.00 100.00
CPIC Fund Management Co., Ltd. Limited liability
("CPIC Funds") company Fund management Shanghai Shanghai 150,000 150,000 - 50.83 51.00
CPIC Senior Living Development Senior living property
(Chengdu) Co., Ltd. ("Chengdu Limited liability investment and
Project Company") company construction, etc. Chengdu Chengdu 1,083,475 1,035,000 - 98.29 100.00
(2)
CPIC Senior Living Development Senior living property
(Hangzhou) Co., Ltd. ("Hangzhou Limited liability investment and
Project Company") company construction, etc. Hangzhou Hangzhou 1,200,000 1,056,000 - 98.29 (3)
100.00

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts in RMB million unless otherwise stated)

IV. SCOPE OF CONSOLIDATION (continued)

Percentage of
Registered Issued capital voting rights
capital /Paid-up capital Percentage of attributable
Place of (RMB thousand, (RMB thousand, equity attributable to the
Type of legal Business scope and incorporation/ Place of unless otherwise unless otherwise to the Company Company
Name entity principal activities registration operations specified) specified) (%)
Direct
Indirect
(%)
Note
CPIC Senior Living Development Senior living property
(Xiamen) Co., Ltd. ("Xiamen Limited liability investment and
Project Company") company construction, etc. Xiamen Xiamen 900,000 900,000 -
98.29
100.00
Pacific Care Home (Chengdu) Senior
Living Service Co., Ltd. ("Pacific Limited liability Seniors care and health
Care Home at Chengdu") company consultation, etc. Chengdu Chengdu 60,000 43,000 -
98.29
100.00
CPIC Senior Living Development Senior living property
(Nanjing) Co., Ltd. ("Nanjing Limited liability investment and
Project Company") company construction, etc. Nanjing Nanjing 702,000 508,556 -
98.29
(4)
100.00
Pacific Care Home (Dali) Co., Ltd. Limited liability "Migrant-style" senior
("Pacific Care Home at
Dali")
company living, etc. Dali Dali 608,000 608,000 -
74.70
76.00
CPIC (Shanghai) Senior Care Senior living property
Development Co., Ltd. ("Shanghai Limited liability investment and
(Putuo) Project Company") company construction, etc. Shanghai Shanghai 250,000 250,000 -
98.29
100.00
Pacific Care Home (Hangzhou) Senior
Living Service Co., Ltd. ("Pacific Limited liability Seniors care and health
Care Home at Hangzhou") company consultation, etc. Hangzhou Hangzhou 60,000 42,200 -
98.29
100.00
CPIC Senior Living Development Senior living property
(Wuhan) Co., Ltd. ("Wuhan Project Limited liability investment and
Company") company construction, etc. Wuhan Wuhan 980,000 980,000 -
98.29
100.00
Private equity
CPIC Capital Company Limited. Limited liability investment fund
("CPIC Capital") company management services Shanghai Shanghai 100,000 100,000 -
99.67
100.00
Shanghai Chongming Pacific Care
Home Senior Living Service Co.,
Ltd. ("Pacific Care Home at Limited liability "Migrant-style" senior
Shanghai (Chongming)") company living, etc. Shanghai Shanghai 1,253,000 1,070,000 -
98.29
100.00

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts in RMB million unless otherwise stated)

IV. SCOPE OF CONSOLIDATION (continued)

Name Type of legal
entity
Business scope and
principal activities
Place of
incorporation/
registration
Place of
operations
Registered capital
(RMB thousand,
unless otherwise
specified)
Issued capital
/Paid-up capital
(RMB thousand,
unless otherwise
specified)
equity attributable
to the Company
Percentage of
(%)
Percentage of
voting rights
attributable to
the Company
(%)
Note
Direct Indirect
Shanghai (Putuo) Pacific Care Home
Senior Living Service Co., Ltd. Seniors care, nursing
("Pacific Care Home at Shanghai Limited liability service and health
(Putuo)") company consultation, etc. Shanghai Shanghai 30,000 23,000 - 98.29 100.00
Beijing Borui Heming Insurance Limited liability
Agency Co., Ltd. ("Borui Heming") company Insurance agency Beijing The PRC 52,000 52,000 - 98.29 100.00
China Pacific Life Insurance (H.K.)
Company Limited ("CPIC Life Limited liability HKD 1,000,000 HKD 1,000,000
(H.K.)") company Life and health insurance Hong Kong Hong Kong thousand thousand - 98.29 100.00
CPIC Senior Living Development Elderly
service, real estate
(Qingdao) Co., Ltd. ("Qingdao Limited liability development and operation,
Project Company") company etc. Qingdao Qingdao 227,000 193,000 - 98.29 100.00
Pacific Care Home (Xiamen) Senior
Living Service Co., Ltd. ("Pacific Limited liability Seniors care and health
Care Home at Xiamen") company consultation, etc. Xiamen Xiamen 40,000 30,000 - 98.29 100.00
CPIC Senior Living Development Elderly service, real estate
(Zhengzhou) Co., Ltd. ("Zhengzhou Limited liability development and operation,
Project Company") company etc. Zhengzhou Zhengzhou 650,000 650,000 - 98.29 100.00
CPIC Senior Living Development Elderly service, real estate
(Beijing) Co., Ltd. ("Beijing Project Limited liability development and operation,
Company") company etc. Beijing Beijing 800,000 800,000 - 98.29 100.00
Technical services, cloud
Pacific Insurance Technology Co., Ltd. Limited liability computing services, big
("CPIC Technology") company data services Shanghai Shanghai 700,000 700,000 100.00 - 100.00
Business service, property
Xinbaoyu (Guangzhou) Co., Ltd. Limited liability management, and lease of
("Xinbaoyu") company non-residential real estate Guangzhou Guangzhou 3,650,000 3,649,990 - 98.46 100.00
Pacific Insurance Technology Services Technical services,
(Wuhan) Co., Ltd. ("CPIC Limited liability technical consulting
Technology Wuhan") company services Wuhan Wuhan 100,000 100,000 - 100.00 100.00

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts in RMB million unless otherwise stated)

IV. SCOPE OF CONSOLIDATION (continued)

Issued capital Percentage of
Registered capital /Paid-up capital Percentage of voting rights
Place of (RMB thousand, (RMB thousand, equity attributable attributable to
Type of legal Business scope and incorporation/ Place of unless otherwise unless otherwise to the Company the Company
Name entity principal activities registration operations specified) specified) (%) (%)
Note
Direct
Indirect
Pacific Health Management (Sanya) Elderly service, real estate
Co., Ltd. ("Sanya Project Limited liability development and operation,
Company") company etc. Sanya Sanya 490,000 490,000 -
98.29
100.00
Pacific Care Home (Nanjing) Senior
Living Service Co., Ltd.
("Pacific
Limited liability Elderly services, health
Care Home at Nanjing") company consulting services, etc. Nanjing Nanjing 30,000 7,000 -
98.29
100.00
Shanghai (Jing'an) Pacific Care Home
Senior Living Service Co., Ltd.
("Pacific Care Home at Shanghai Limited liability "Migrant-style" senior
(Jing'an)") company living, etc. Shanghai Shanghai 426,367 426,367 -
98.29
100.00
Pacific Care Home (Wuhan) Senior Seniors care, nursing
Living Service Co., Ltd. ("Pacific Limited liability service and health
Care Home at Wuhan") company consultation, etc. Wuhan Wuhan 30,000 16,500 -
98.29
(5)
100.00
Xiamen Yuanshen Rehabilitation
Hospital Co., Ltd. ("Xiamen Limited liability Medical service, hospital
Rehabilitation
Hospital")
company management, etc. Xiamen Xiamen 160,000 160,000 -
98.29
100.00
Pacific Care Home (Suzhou) Senior Seniors care, nursing
Living Service Co., Ltd. ("Pacific Limited liability service and health
Care Home at
Suzhou")
company consultation, etc. Suzhou Suzhou 30,000 6,000 -
98.29
100.00
Pacific Care Home (Beijing) Senior
Living Service Co., Ltd. ("Pacific Limited liability Seniors and disability
Care Home at
Beijing")
company care Beijing Beijing 30,000 3,000 -
98.29
(6)
100.00

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts in RMB million unless otherwise stated)

IV. SCOPE OF CONSOLIDATION (continued)

Issued capital Percentage of
Registered capital /Paid-up capital Percentage of voting rights
Place of (RMB thousand, (RMB thousand, equity attributable attributable to
Type of legal Business
scope and
incorporation/ Place of unless otherwise unless otherwise to the Company the Company
Name entity principal activities registration operations specified) specified) (%) (%)
Note
Direct
Indirect
Pacific Care Home (Zhengzhou) Senior
Living Service Co., Ltd ("Pacific Limited liability
Care Home at Zhengzhou") company Seniors and
disability care
Zhengzhou Zhengzhou 45,000 5,000 -
98.29
(7)
100.00
CPIC Senior Living Development Elderly services, lease of
(Guangzhou) Co., Ltd. ("Guangzhou Limited liability non-residential
Project Company") company real estate, etc. Guangzhou Guangzhou 830,000 443,000 -
98.29
(8)
100.00
CPIC Senior Living Development
(Suzhou) Co., Ltd. ("Suzhou Project Limited liability Elderly services, lease of
Company") company real estate, etc. Suzhou Suzhou 300,000 250,000 -
98.29
(9)
100.00
Jinan Yuanshen Rehabilitation Hospital
Co., Ltd. ("Jinan Rehabilitation Limited liability Medical service, hospital
Hospital") company management, etc. Jinan Jinan 260,000 86,000 -
98.29
(10)
100.00
Shanghai Ruiyongjing Real Estate Real estate development
Development Co., Ltd. Limited liability and operation, property
("Ruiyongjing Real Estate") company management, etc. Shanghai Shanghai 14,050,000 14,050,000 -
68.80
(11)
70.00
Pacific NanShanJu (Shanghai) Senior
Care Service Co., Ltd. ("Pacific Limited liability Seniors care, nursing
Nanshanju") company service, etc. Shanghai Shanghai 5,600 5,600 -
98.29
(12)
100.00
Pacific Care Home (Sanya) Senior Elderly services,
Living Service Co., Ltd ("Pacific Limited liability lease of real estate, - (13)
Care Home at
Sanya")
company etc. Sanya Sanya 30,000 2,000 98.29 100.00
CPIC Zhiyuan (Shanghai) Private Private securities
Equity Fund Management Co., Ltd
("CPIC Zhiyuan")
Limited liability
company
investment fund
management
service
Shanghai Shanghai 10,000 10,000 -
99.67
(14)
100.00
* Subsidiaries of City Island

(All amounts expressed in RMB million unless otherwise specified)

IV. SCOPE OF CONSOLIDATION (continued)

    1. Particulars of the Company's incorporated subsidiaries as at 30 June 2025 are as follows: (continued)
    2. (1) CPIC H.K

In December 2023, the Company signed a share transfer agreement with CPIC Property, agreeing to transfer all the share of CPIC H.K held by the Company to CPIC Property for a consideration of HKD 430 million. As of 30 June 2025, the share transfer has completed all trading procedures, and CPIC Property holds 100% of the equity of CPIC H.K.

(2) Chengdu Project Company

Chengdu Project Company, a wholly-owned subsidiary funded by CPIC Life, with registered capital of approximately RMB 1,083 million. As of 30 June 2025, the paid-up investment amount of CPIC Life had increased to RMB 1,035 million.

(3) Hangzhou Project Company

Hangzhou Project Company, a wholly-owned subsidiary funded by CPIC Life, with registered capital of RMB 1,200 million. As of 30 June 2025, the paid-up investment amount of CPIC Life had increased to RMB 1,056 million.

(4) Nanjing Project Company

Nanjing Project Company, a wholly-owned subsidiary funded by CPIC Life, with registered capital of RMB 702 million. As of 30 June 2025, the paid-up investment amount of CPIC Life had increased to approximately RMB 509 million.

(5) Pacific Care Home at Wuhan

Pacific Care Home at Wuhan, a wholly-owned subsidiary funded by CPIC Senior Living Investment, with registered capital of RMB 30 million. As of 30 June 2025, the paid-up investment amount of CPIC Senior Living Investment had increased to approximately RMB 17 million.

(6) Pacific Care Home at Beijing

Pacific Care Home at Beijing, a wholly-owned subsidiary funded by CPIC Senior Living Investment, with registered capital of RMB 30 million. As of 30 June 2025, the paid-up investment amount of CPIC Senior Living Investment had increased to RMB 3 million.

(7) Pacific Care Home at Zhengzhou

Pacific Care Home at Zhengzhou, a wholly-owned subsidiary funded by CPIC Senior Living Investment, with registered capital of RMB 45 million. As of 30 June 2025, the paid-up investment amount of CPIC Senior Living Investment had increased to RMB 5 million.

(8) Guangzhou Project Company

Guangzhou Project Company, a wholly-owned subsidiary funded by CPIC Life, with registered capital of RMB 830 million. As of 30 June 2025, the paid-up investment amount of CPIC Life had increased to RMB 443 million.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

IV. SCOPE OF CONSOLIDATION (continued)

    1. Particulars of the Company's incorporated subsidiaries as at 30 June 2025 are as follows (continued):
    2. (9) Suzhou Project Company

Suzhou Project Company, a wholly-owned subsidiary funded by CPIC Life, with registered capital of RMB 300 million. As of 30 June 2025, the paid-up investment amount of CPIC Life had increased to RMB 250 million.

(10)Jinan Rehabilitation Hospital

Jinan Rehabilitation Hospital, a wholly-owned subsidiary funded by Pacific Medical & Healthcare, with registered capital of RMB 260 million. As of 30 June 2025, the paid-up investment amount of Pacific Medical & Healthcare had increased to RMB 86 million.

(11)Ruiyongjing Real Estate

CPIC Life and two third-party companies jointly invested in the establishment of Ruiyongjing Real Estate, with a registered capital of RMB 14,050 million. Among them, the shareholding ratio of CPIC Life is 70.00%. As of 30 June 2025, CPIC Life has paid up the investment amount of RMB 9,835 million. CPIC Life obtained the control of Ruiyongjing Real Estate in the current period and included it in the scope of consolidation. For details, please refer to Note IV. 2.

(12)Pacific Nanshanju

CPIC Senior Living Investment and Orpea (Shanghai) Investment Co., Ltd. found the Pacific NanShanJu (Shanghai) Senior Care Service Co., Ltd.(originally named as Pacific Orpea (Shanghai) Senior Care Management Co., Ltd.) in together, holding the percentage of equity with 56.00% and 44.00% respectively, registered capital is RMB 10 million. In January 2025, Orpea (Shanghai) Investment Co., Ltd. withdrew its investment and exited. After the equity change, CPIC Senior Living Investment holds 100.00% of the shares. As of 30 June 2025, CPIC Senior Living Investment has paid up all the investment.

(13)Pacific Care Home at Sanya

Pacific Care Home at Sanya, a wholly-owned subsidiary funded by CPIC Senior Living Investment, obtained the business license for the legal entity with unified social credit code 91460000MAEB4AFU2U in January 2025, with registered capital of RMB 30 million. As of 30 June 2025, CPIC Senior Living has paid up the investment amount of RMB 2 million.

(14)CPIC Zhiyuan

CPIC Zhiyuan, a wholly-owned subsidiary funded by CPIC Asset Management, obtained the business license for the legal entity with unified social credit code 91310000MAEL1A7M9J in May 2025, with registered capital of RMB 10 million. As of 30 June 2025, CPIC Asset Management has paid up all the investment amount.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

IV. SCOPE OF CONSOLIDATION (continued)

2. Business combination not under common control

The main business combination not under common control occurred in the current period is as follows,

Equity Equity Percentage Purchase Acquisition Acquisition Acquiree's Acquiree's Acquiree's
transaction purchase of equity method date date basis operating net profit net cashflow
date cost purchased income from from from
(%) acquisition acquisition acquisition
date to the date to the date to the
end of the end of the end of the
period period period
Ruiyongjing 24 July Cash Actual
30 June transfer date
Real Estate 2018 9,835 70.00 contribution 2025 of control - - -

(1) Acquisition cost and goodwill:

Fair value Carrying amount
Fair value of equity interest held before acquisition
date
10,897 9,294
Total acquisition cost 10,897 9,294
Less: Fair value of net assets acquired 10,897
Goodwill/acquisition cost less than fair value of
net assets acquired
-

(2) The fair value and carrying amount of the identifiable assets and liabilities of the acquiree as at the acquisition date are as below:

Fair value Carrying amount
Cash at bank and on hand 112 112
Investment properties and long-term deferred
and prepaid expenses 22,501 19,448
Other assets 235 235
Long-term borrowings (5,627) (5,627)
Deferred tax liabilities (763) -
Other liabilities (891) (891)
Net assets 15,567 13,277
Less: Non-controlling interests 4,670 3,983
Net assets acquired 10,897 9,294

When determining the fair value of the assets and liabilities of Ruiyongjing Real Estate on acquisition date, the buildings under investment properties are evaluated using the cost method and the income method. In addition to the above-mentioned separately assessed assets, the fair value of the remaining identifiable assets and liabilities of Ruiyongjing Real Estate is close to its carrying amount.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

IV. SCOPE OF CONSOLIDATION (continued)

    1. Business combination not under common control (continued)
    2. (3) Profit or loss resulting from remeasurement of equity interest held before acquisition date at fair value:
Initial
transaction date
Percentage of equity
interest held(%)
Purchase
cost
Purchase
method
Ruiyongjing
Real Estate
24 July 2018 70.00 9,835 Cash
Carrying
amount as at
the acquisition
date
Fair value as at
the acquisition
date
Profit or loss
resulting from
remeasurement
Method and key
assumptions of the
fair value
remeasurement
The amount of other
comprehensive
income/(loss) transferred
to investment income
Ruiyongjing
Real Estate
9,294 10,897 1,603 Net asset
adjustment method
-

(4) Net cash paid to acquire subsidiaries and other business entities:

For the six months
ended 30 June 2025
Cash and cash equivalents held by subsidiaries and other operating
entities as at the acquisition date
Less: Cash and cash equivalents paid to acquire subsidiaries and other
business entities
112
-
Cash received relating to other investing activities 112

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

IV. SCOPE OF CONSOLIDATION (continued)

3. As at 30 June 2025, material consolidated structured entities of the Group are as follows:

Collective Product scale
holding by the (units in RMB
Name Group (%) thousand) Nature of business
China Pacific Changhang Equity
Investment Fund (Wuhan)
Partnership (Limited Partnership)
Investing in equity investments, investment management and asset management activities with private funds (yet subject to related
regulations of the Asset Management
Association of China ("AMAC")) (except for projects subject to approval according to law,
("China Pacific Changhang") 99.98 10,424,462 independently carry out business activities that are not prohibited or restricted by laws and regulations with business license).
CPIC Zengfu Annually Open Pure
Debt Type Launching Securities
Investment Fund
100.00 8,062,610 Investing in financial instruments with high liquidity including national bonds, government bonds, local treasury bonds, financial
bonds, enterprise bonds, corporate bonds, Central Bank bills, medium term notes, short-term commercial paper, super short-term
commercial paper, SME private debt, asset-backed security, subordinated debt, the debt part of the convertible bonds, bonds repo,
bank deposits (including agreement deposits, notice deposits and term deposits), NCDs, money market instrument, treasury bond
futures and other financial instruments that laws and regulations or the CSRC allow funds to invest (yet subject to related regulations
of the CSRC).
CPIC Zengyu Annually Open Pure Investing in financial instruments with high liquidity including national bonds, government bonds, local treasury bonds, financial
bonds, enterprise bonds, corporate bonds, Central Bank bills, medium term notes, short-term commercial paper, super short-term
commercial paper, SME private debt, asset-backed security, subordinated debt, the debt part of the convertible bonds, bonds repo,
bank deposits (including agreement deposits, notice deposits and term deposits), NCDs, money market instrument, treasury bond
Debt Type Launching Securities
Investment Fund
87.47 7,635,690 futures and other financial instruments that laws and regulations or the CSRC allow funds to invest (yet subject to related regulations
of the CSRC).

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

IV. SCOPE OF CONSOLIDATION (continued)

3. As at 30 June 2025, material consolidated structured entities of the Group are as follows (continued):

Name Collective
holding by the
Group (%)
Product scale
(units in RMB
thousand)
Nature of business
CPIC
Health
Industry
Private
Investment
Fund
(Shanghai)
Partnership (Limited Partnership)
("CPIC Health Fund")
90.90 6,624,080 Investing in equity investments, investment management and asset management activities with private funds (yet subject to
related
regulations of the Asset Management Association of China ("AMAC")).
Pacific-Ningbo Rail Transit
Infrastructure Debt Investment
Plan
100.00 5,000,000 Investing in the second phase of Ningbo Rail Transit Line 3 project operated by Ningbo Rail
Transit Group Co., Ltd. in the form of
debt.

CPIC Asset Management, CPIC Funds and CPIC Capital, etc. are the asset managers of these consolidated structured entities included in the scope of the Group.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. Cash at bank and on hand

30 June 2025
Original
Currency currency Exchange rate RMB
Bank deposits RMB 37,754 1.00000 37,754
USD 873 7.15860 6,247
HKD 1,062 0.91195 969
Others 21
Subtotal 44,991
Other cash balances RMB 1,413 1.00000 1,413
Subtotal 1,413
Total 46,404
31 December 2024
Original
Currency currency Exchange rate RMB
Bank deposits RMB 22,045 1.00000 22,045
USD 810 7.18840 5,820
HKD 295 0.92604 274
Others 2
Subtotal 28,141
Other cash balances RMB 1,214 1.00000 1,214
USD - 7.18840 2
Subtotal 1,216
Total 29,357

As at 30 June 2025, the Group's cash at bank and on hand deposited overseas amounted equivalent to RMB 2,045 million (31 December 2024: amounted equivalent to RMB 1,357 million). Under PRC's foreign exchange regulations, the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange business after obtaining approval from foreign exchange regulatory authorities.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

  1. Cash at bank and on hand (continued)

As at 30 June 2025, RMB 229 million were time deposits with original maturity of no more than three months (31 December 2024: RMB 221 million).

As at 30 June 2025, RMB 547 million in the Group's cash at bank and on hand balance were restricted for special-purpose use (31 December 2024: RMB 579 million).

Bank deposits comprise current deposits and short-term time deposits. Current deposits earn interest at rates based on daily bank deposit rates. Short-term time deposits are made for varying periods between one day and three months depending on the immediate cash requirements of the Group, and earn interest at respective short-term time deposit rates. The bank balances and deposits are deposited with creditworthy banks with no recent history of default. The carrying amount of the cash at bank and on hand approximate its fair value.

  1. Securities purchased under agreements to resell
30 June 2025 31 December 2024
Securities - bonds
Inter-bank market 17,960 10,380
Stock exchange 3,389 525
Subtotal 21,349 10,905
Less: Impairment provisions - -
Total 21,349 10,905

The Group does not sell or re-pledge the collateral underlying the securities purchased under agreements to resell.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

  1. Term deposits
Term to maturity 30 June 2025 31 December 2024
At amortised cost
Within 3 months (inclusive) 204 3,452
3 months to 1 year (inclusive) 3,313 5,386
1 to 2 years (inclusive) 13,367 7,934
2 to 3 years (inclusive) 4,314 9,744
3 to 4 years (inclusive) 12,322 2,523
4 to 5 years (inclusive) 8,861 11,910
Less: Impairment provisions (21) (24)
Fair value through other comprehensive
income
Within 3 months (inclusive) - 8,852
3 months to 1 year (inclusive) 16,062 7,716
1 to 2 years (inclusive) 33,193 29,026
2 to 3 years (inclusive) 26,796 27,980
3 to 4 years (inclusive) 39,282 20,781
4 to 5 years (inclusive) 20,526 38,538
Including:
Amortised cost 133,435 129,338
Accumulated changes in fair value 2,424 3,555
Total 178,219 173,818

As at 30 June 2025, the impairment provision recognised for term deposits at fair value through other comprehensive income was RMB 82 million (31 December 2024: RMB 58 million).

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

4. Financial assets at fair value through profit or loss

30 June 2025 31 December 2024
Listed 226,149 216,255
Unlisted 448,252 450,944
Total 674,401 667,199
Bonds 276,167 274,335
Government bonds 7,563 6,907
Finance bonds 242,388 241,069
Enterprise bonds 26,216 26,359
Stocks 187,406 179,013
Funds 69,839 70,472
Unlisted equity shares investments 70,257 66,707
Debt investment plans 42,362 42,150
Investment in asset management products 19,583 28,238
Others 8,787 6,284
Total 674,401 667,199
5. Financial assets at amortised cost
30 June 2025 31 December 2024
Listed 3,230 3,236
Unlisted 53,595 63,205
Subtotal 56,825 66,441
Less: Impairment provisions (1,468) (1,597)
Net value 55,357 64,844
Bonds 19,723 21,852
Government bonds 16,848 16,435
Enterprise bonds 2,875 5,417
Debt investment plans 32,051 35,482
Investment trust 1,119 5,065

Others 3,932 4,042

Subtotal 56,825 66,441 Less: Impairment provisions (1,468) (1,597) Net value 55,357 64,844

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

6. Debt investments at fair value through other comprehensive income

30 June 2025 31 December 2024
67,909
1,672,289 1,540,063
1,746,373 1,607,972
1,530,160 1,345,995
1,309,303 1,139,037
77,957 68,666
142,900 138,292
163,085
50,715
34,478
7,291 13,699
1,746,373 1,607,972
1,496,449 1,366,390
249,924 241,582
74,084
161,643
13,943
33,336

As at 30 June 2025, the impairment provision for the Group's debt investment at fair value through other comprehensive income was RMB 4,332 million (31 December 2024: RMB 4,220 million).

7. Equity investments at fair value through other comprehensive income

30 June 2025 31 December 2024
Stocks 95,719 76,052
Preferred shares 12,604 12,642
Perpetual bonds 12,554 18,878
Others 33,295 34,442
Total 154,172 142,014
Including:
Cost 142,159 131,934
Accumulated changes in fair value 12,013 10,080

The equity investments at fair value through other comprehensive income, designated by the Group, are non-trading equity investments with the primary objective of being held for a long time or obtaining dividends during the holding period.

For the six months ended 30 June 2025, the Group disposed equity investments at fair value through other comprehensive income of RMB 9.926 billion (For the six months ended 30 June 2024: RMB 2.158 billion) because of the optimisation of asset allocation and asset and liability management. The amount transferred from other comprehensive income/(loss) to retained profits was RMB 425 million (For the six months ended 30 June 2024: RMB -68 million) due to the disposals, etc.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

8. Long-term equity investments

30 June 2025 31 December 2024
Joint ventures
Ruiyongjing Real Estate - 9,543
Pacific Euler Hermes Insurance Sales
Co., Ltd. ("Euler Hermes") 30 28
Others 14 18
Subtotal 44 9,589
Associates
Taijiashan Health Industry Equity
Investment Fund (Shanghai) LLP.
("Taijiashan") 3,003 3,016
Yangtze River Delta Synergy Industry
Investment Fund 2,160 2,353
Shanghai Hi-Tech Park United
Development Co., Ltd.
1,869 1,818
Shanghai Sci-Tech Innovation Centre
Capital II LLP. 1,606 1,454
Shanghai Biomedical Industry Equity
Investment Fund LLP. 954 952
Shanghai Lingang GLP International
Logistics Development Co., Ltd. 924 987
Others 2,588 2,351
Subtotal 13,104 12,931
Total 13,148 22,520
9. Restricted statutory deposits
30 June 2025 31 December 2024
CPIC Property 3,989 3,989
CPIC Property 3,989 3,989
CPIC Life 1,726 1,726
CPIC Health 720 720
PAAIC 260 260
Subtotal 6,695 6,695
Add: Interest receivables 204 158
Less: Impairment provisions (1) (2)
Total 6,898 6,851

In accordance with relevant provision of Insurance Law of the PRC, CPIC Property, CPIC Life, CPIC Health and PAAIC should place 20% of their issued capital as restricted statutory deposits, respectively.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

10. Deferred income tax assets and liabilities

30 June 2025 31 December 2024
Deferred Temporary Deferred Temporary
Deferred income tax assets income tax differences income tax differences
Insurance contract liabilities /assets 58,081 232,318 50,712 202,848
Changes in fair value of financial instruments 171 685 169 676
Commission and brokerage expenses 833 3,334 853 3,412
Provision for asset impairment 599 2,394 624 2,496
Deductible losses 16,145 64,580 10,469 41,876
Lease liabilities 410 1,638 681 2,722
Others 2,231 8,927 2,578 10,312
Total 78,470 313,876 66,086 264,342
Deferred Temporary Deferred Temporary
Deferred income tax liabilities income tax differences income tax differences
Changes in fair value of financial instruments
Adjustment in fair value arising from acquisition of
(72,104) (288,415) (68,364) (273,456)
subsidiaries (1,485) (5,940) (737) (2,948)
Right-of-use assets (459) (1,837) (730) (2,921)
Others (210) (838) (153) (612)
Total (74,258) (297,030) (69,984) (279,937)

Deferred income tax assets and liabilities of the Group set out as the net amount after offsetting:

30 June 2025 31 December 2024
Offsetting
amount
Balance after
offsetting
Offsetting
amount
Balance after
offsetting
Deferred income tax assets (71,551) 6,919 (62,622) 3,464
Deferred income tax liabilities 71,551 (2,707) 62,622 (7,362)

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

10. Deferred income tax assets and liabilities (continued)

Details of movements in deferred income tax assets and liabilities are as follows:

Insurance
contract
liabilities
/assets
Changes
in fair value
of financial
instruments
Commission
and brokerage
expenses
Provision
for asset
impairment
Deductible
losses
Adjustment in
fair value
arising from
acquisition of
subsidiaries
Others Total
Balance of
31 December 2023 22,300 (21,942) 790 611 3,198 (797) 1,797 5,957
Recognised in profit
or loss (6,183) (9,275) 63 86 7,271 60 580 (7,398)
Recognised in equity 34,716 (37,019) - (73) - - (1) (2,377)
Other changes of the
year
(121) 41 - - - - - (80)
Balance of
31 December 2024 50,712 (68,195) 853 624 10,469 (737) 2,376 (3,898)
Acquisition of
subsidiaries - - - - - (763) - (763)
Recognised in profit
or loss (4,092) (1,455) (20) 9 5,676 15 (404) (271)
Recognised in equity 11,511 (2,425) - (34) - - - 9,052
Other changes (50) 142 - - - - - 92
Balance of
30 June 2025 58,081 (71,933) 833 599 16,145 (1,485) 1,972 4,212

As at 30 June 2025, the deductible temporary differences and deductible losses not recognised as deferred income tax assets by the Group amounted to RMB 35.2 billion (31 December 2024: RMB 31.1 billion).

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

11. Other assets

30 June 2025 31 December 2024
Other receivables (1) 11,946 12,694
Improvements of right-of-use assets 870 1,017
Others 5,310 2,803
Total 18,126 16,514

(1) Other receivables

30 June 2025 31 December 2024
Due from external undertakings 4,571 3,344
Due from related parties* 1,772 1,772
Receivable from securities sold but not settled 1,250 4,323
Due from agents 857 314
Deposits 147 267
Co-insurance premium receivables 57 63
Prepaid tax 6 155
Others 3,616 2,787
Subtotal 12,276 13,025
Less: Provision for bad debts (330) (331)
Net value 11,946 12,694

* As at 30 June 2025, the payments made by the Group on behalf of Shanghai Binjiang-Xiangrui Investment and Construction Co., Ltd. ("Binjiang-Xiangrui") for the purchase of land and related taxes and expenses amounted to approximately RMB 1,772 million (31 December 2024: RMB 1,772 million), which accounting for 14% (31 December 2024: 14%) of the total other receivables.

The category of provision for bad debts of other receivables is analysed as below:

30 June 2025
Ending
balance
% of total
balance
Provision for
bad debts
Provision
percentage
Considered on the grouping basis 12,276 100% (330) 3%
31 December 2024
Ending
balance
% of total
balance
Provision for
bad debts
Provision
percentage
Considered on the grouping basis 13,025 100% (331) 3%

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

11. Other assets (continued)

(1) Other receivables (continued)

The aging of other receivables and related provisions for bad debts are analysed as follows:

Aging 30 June 2025 Ending balance % of total balance Provision for bad debts Net value Within 3 months (inclusive) 6,535 53% (20) 6,515 3 months to 1 year (inclusive) 2,547 21% (27) 2,520 1 to 3 years (inclusive) 1,075 9% (75) 1,000 Over 3 years 2,119 17% (208) 1,911 Total 12,276 100% (330) 11,946 Aging 31 December 2024 Ending balance % of total balance Provision for bad debts Net value Within 3 months (inclusive) 8,381 64% (17) 8,364 3 months to 1 year (inclusive) 1,828 14% (22) 1,806 1 to 3 years (inclusive) 649 5% (91) 558 Over 3 years 2,167 17% (201) 1,966 Total 13,025 100% (331) 12,694

The top five other receivables of the Group are as follows:

30 June 2025 31 December 2024
Total amount of the top five other receivables 2,842 2,499
Total provision for bad debts (8) (13)
% of total other receivables 23% 19%

The account balance does not include any amount attributable to shareholders holding 5% or more of the voting rights of the Company.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

12. Securities sold under agreements to repurchase

30 June 2025 31 December 2024
Securities - bonds
Inter-bank market 157,147 158,860
Stock exchange 23,058 22,835
Total 180,205 181,695

As at 30 June 2025, the Group's bonds with par value of approximately RMB 168,351 million (31 December 2024: approximately RMB 169,426 million) were pledged for the inter-bank securities sold under agreements to repurchase.

As at 30 June 2025, the Group's bonds with par value of approximately RMB 23,051 million (31 December 2024: approximately RMB 22,826 million) were pledged for the stock exchange securities sold under agreements to repurchase.

Securities sold under agreements to repurchase are generally repurchased within 12 months from the date the securities are sold.

13. Taxes payable

30 June 2025 31 December 2024
Corporate income tax 2,585 663
Unpaid VAT 586 562
Withholding individual income tax 162 155
Others 950 1,100
Total 4,283 2,480

14. Bonds payable

On 9 March 2023, CPIC Property issued a 10-year capital replenishment bond with a total face value of RMB 7 billion in the interbank market. CPIC Property has a conditional option to redeem the bond at the end of the fifth interest-bearing year. The capital replenishment bond pays interest at an initial coupon rate of 3.72% per annum. If CPIC Property does not exercise the early redemption option, the annual coupon rate for the next five years would increase to 4.72% from the sixth interest-bearing year to the maturity of the debt.

On 3 April 2023, CPIC Property issued a 10-year capital replenishment bond with a total face value of RMB 3 billion in the interbank market. CPIC Property has a conditional option to redeem the bond at the end of the fifth interest-bearing year. The capital replenishment bond pays interest at an initial coupon rate of 3.55% per annum. If CPIC Property does not exercise the early redemption option, the annual coupon rate for the next five years would increase to 4.55% from the sixth interest-bearing year to the maturity of the debt.

Issuer 31 December 2024 Issuance Amortisation of
bond premium or
discount
Interest
accrued
in the period
Interest payment/
Reimbursement in
the period
30 June 2025
CPIC Property 10,286 - - 184 (367) 10,103

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

15. Insurance contract liabilities/(assets)

The analysis of liabilities for remaining coverage and liabilities for incurred claims is as follows:

30 June 2025 31 December 2024
Insurance contract liabilities
Liabilities for remaining coverage 2,317,611 2,124,017
Including: Excluding loss component 2,303,577 2,109,847
Loss component 14,034 14,170
Liabilities for incurred claims 110,972 105,497
Total insurance contract liabilities 2,428,583 2,229,514
Insurance contract assets
Liabilities for remaining coverage - (1)
Including: Excluding loss component - (1)
Loss component - -
Liabilities for incurred claims - (21)
Total insurance contract assets - (22)
Net liabilities of insurance contracts 2,428,583 2,229,492

The analysis by measurement component of contracts not measured under the premium allocation approach is as follows:

30 June 2025 31 December 2024
Insurance contract liabilities
Present value of future cash flows 1,912,366 1,725,632
Risk adjustment for non-financial risk 23,251 21,551
Contractual service margin 350,218 345,366
Net liabilities of insurance contracts 2,285,835 2,092,549

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

15. Insurance contract liabilities/(assets) (continued)

The impact on the balance sheet of insurance contracts not measured under the premium allocation approach that were initially recognised in the period is as follows:

For the six months ended 30 June 2025
Group of onerous
contracts initially
recognised in the
period Others Total
Insurance acquisition cash flows 1,529 8,977 10,506
Others 39,426 79,572 118,998
Present value of future cash outflows 40,955 88,549 129,504
Present value of future cash inflows (40,262) (101,186) (141,448)
Risk adjustment for non-financial risk 341 874 1,215
Contractual service margin - 11,763 11,763
Impact of insurance contracts initially
recognised in the current period 1,034 - 1,034
For the six months ended 30 June 2024
Group of onerous
contracts initially
recognised in the
period Others Total
Insurance acquisition cash flows 2,767 11,589 14,356
Others 24,075 73,736 97,811
Present value of future cash outflows 26,842 85,325 112,167
Present value of future cash inflows (26,504) (96,202) (122,706)
Risk adjustment for non-financial risk 255 1,332 1,587
Contractual service margin - 9,545 9,545
Impact of insurance contracts initially
recognised in the current period 593 - 593

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

16. Reinsurance contract assets/(liabilities)

The analysis of reinsurance contract assets for remaining coverage and for incurred claims is as follows:

30 June 2025 31 December 2024
Reinsurance contract assets
Assets for remaining coverage 16,637 18,823
Including:
Excluding loss-recovery component
15,364 17,497
Loss-recovery component 1,273 1,326
Assets for incurred claims 27,431 27,258
Total reinsurance contract assets 44,068 46,081
Net assets of reinsurance contract 44,068 46,081

The analysis by measurement component of contracts not measured under premium allocation approach is as follows:

30 June 2025 31 December 2024
Reinsurance contract assets
Present value of future cash flows 12,834 12,407
Risk adjustment for non-financial risk 188 186
Contractual service margin 2,666 2,654
Total reinsurance contract assets 15,688 15,247
Net assets of reinsurance contract 15,688 15,247

17. Issued capital

Shares of the Company as well as the percentages of shareholding are shown below:

As at 1 January 2025 Increase/(Decrease)
of number of shares
As at 30 June 2025
Number of
shares
Percentage of
shareholding
Newly
issued
Others Number of
shares
Percentage of
shareholding
I. Shares with trading restrictions
Shares held by domestic non-state
owned legal persons - 0% - - - 0%
Subtotal - 0% - - - 0%
II. Shares without trading restrictions
Ordinary shares denominated in RMB 6,844 71% - - 6,844 71%
Foreign shares listed overseas 2,776 29% - - 2,776 29%
Subtotal 9,620 100% - - 9,620 100%
III. Total 9,620 100% - - 9,620 100%

As at 30 June 2025, the number of shares which the Company issued and fully paid at RMB 1 each is 9,620 million. As at 31 December 2024, the number of shares which the Company issued and fully paid at RMB 1 each is 9,620 million.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

18. Capital reserves

30 June 2025 31 December 2024
Capital premium 79,008 79,008
Impact of capital injection to subsidiaries, etc. 2,105 2,105
Impact of equity transactions with non-controlling
interests (131) (131)
Impact of other changes in the equity of investees
accounted for using the equity method 343 352
Redistribution of cumulative changes in fair value of
available-for-sale financial assets when purchasing
equity from non-controlling interests (1,413) (1,413)
Impact of phased business combinations 28 28
Impact of capital invested by other equity instrument
holders (3) (3)
Others 2 2
Total 79,939 79,948

Capital reserves mainly represent share premiums from issuance of shares and the deemed disposal of an equity interest in CPIC Life to certain foreign investors in December 2005, and the subsequent repurchase of the shares mentioned above in the same subsidiary by the Company in April 2007. In addition, the Company issued GDRs and listed them on the LSE in 2020 which also increased the capital reserves.

19. Surplus reserves

Statutory surplus
reserve (the "SSR")
As at 1 January 2024 5,114
Appropriations -
As at 31 December 2024 and 30 June 2025 5,114

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

  1. General reserves

In accordance with relevant regulations, general risk provisions should be made to cover catastrophic risks or losses as incurred by companies engaged in the insurance, banking, trust, securities, futures, fund management, leasing and financial guarantee businesses. Companies undertaking insurance activities are required to set aside 10% of their net profit to general reserves, while companies undertaking asset management activities are required to set aside 10% of their management fee income to the risk reserves until the balance reaches 1% of the balance of products under management.

In accordance with relevant regulations, as part of the profit distribution and as presented in their annual financial statements, the Group's subsidiaries engaged in the above-mentioned businesses make appropriations to their general reserves on the basis of their annual net profit, year-end risk assets or management fee income from products under management where appropriate. Such general reserves cannot be used for dividends distribution or conversion to capital.

21. Profit distribution and retained profits

According to the Articles of Association of the Company, the amount of retained profits available for distribution of the Company should be the amount determined under CASs, or determined under CASs if permissible by local rules where the Company is listed. According to the Articles of Association of the Company and applicable laws and regulations, the Company's profit distribution is made the following order:

  • (1) Making up for losses brought forward from prior years;
  • (2) Appropriating to SSR at 10% of the net profit;
  • (3) Making appropriation to the discretionary surplus reserve ("DSR") in accordance with the resolution of the general shareholders' meeting; and
  • (4) Paying dividends to shareholders.

The Company can cease the appropriation to SSR when SSR accumulates to more than 50% of the registered capital. The SSR may be used to make up for losses, if any, and, subject to the approval of the general shareholders' meeting, may also be converted into capital to make to fund an issue of new shares to shareholders on a proportionate basis. However, the conversion of SSR to capital should not bring the retained SSR to below 25% of the registered capital.

The balance of SSR reached 50% of the respective registered capital. The Company did not set aside SSR for the six months ended 30 June 2025.

After making necessary appropriations to the SSR, the Company and its subsidiaries in the PRC may also appropriate a portion of their net profit to the DSR upon the approval of the shareholders in general meetings. Subject to the approval of the shareholders, the DSR may be used to offset accumulated losses, if any, and may be converted into capital. The Company did not set aside DSR for the six months ended 30 June 2025.

Pursuant to the resolution of the 10th meeting of the 10th Board of Directors of the Company held on 26 March 2025, a final dividend of approximately RMB 10,390 million (equivalent to annual cash dividend of RMB 1.08 per share (including tax)) was proposed. The profit distribution plan was approved by the shareholders of the Company at the general meeting on 11 June 2025.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

22. Insurance revenue

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Insurance contracts not measured under the
premium allocation approach
Amounts relating to the changes in the
liability for remaining coverage:
30,296 30,867
Amortisation of contractual service
margin 13,105 13,091
Changes in the risk adjustment for non
financial risk
Insurance service expenses expected to
544 674
be incurred in the period
Experience adjustments for premium
15,739 16,026
receipts that relate to current or past
services
Amortisation of insurance acquisition cash
908 1,076
flows 10,885 10,901
Subtotal of insurance contracts not measured
under the premium allocation approach
Insurance contracts measured under the
41,181 41,768
premium allocation approach 100,643 95,251
Total of insurance revenue 141,824 137,019
23. Interest income
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Interest income of debt investments at fair
value through other comprehensive income
24,446 22,719
Interest income of term deposits 3,021 2,932
Interest income of financial assets at amortised
cost 1,179 1,714
Interest income of restricted statutory deposits 101 122
Interest income of securities purchased under
agreements to resell 95 66
Others 219 216
Total 29,061 27,769

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

24. Investment income

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Realised gains/(losses)
Financial instruments held for trading and
other financial instruments at fair value
through profit or loss
4,739 (4,979)
Debt investments at fair value through other
comprehensive income 2,327 1,009
Long-term equity investments 1,603 -
Derivatives (48) 9
Financial assets at amortised cost - 4
Gains during the holding period
Financial instruments held for trading and
other financial instruments at fair value
through profit or loss 9,746 8,480
Dividend income from equity investments
at fair value through other comprehensive
income
3,449 2,494
Share of losses of associates and joint ventures (145) (124)
Total 21,671 6,893

As at the balance sheet date, there was no significant restriction on the repatriation of the Group's investment income.

25. Gains arising from changes in fair value

For the six months For the six months
ended 30 June 2025 ended 30 June 2024
Stock investments 2,588 8,945
Bond investments (1,368) 8,687
Fund investments 3,915 2,149
Derivatives 21 (23)
Others 700 1,187
Total 5,856 20,945

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

26. Other operating income

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Income from management fee
Rental income from investment properties
Others
1,258
311
349
1,237
346
306
Total 1,918 1,889
27. Insurance service expenses
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Insurance contracts not measured under the
premium allocation approach
Incurred claims and other expenses in the
period
Amortisation of insurance acquisition cash
14,502 15,157
flows 10,885 10,901
Recognition and reversals of loss component
Changes in fulfilment cash flows related to
1,769 71
liabilities for incurred claims (965) (937)
Subtotal 26,191 25,192
Insurance contracts measured under the
premium allocation approach
Incurred claims and other expenses in the
period
Amortisation of insurance acquisition cash
73,502 74,319
flows 23,652 23,385
Recognition and reversals of loss component
Changes in fulfilment cash flows related to
(868) (1,983)
liabilities for incurred claims (2,308) (4,615)
Subtotal 93,978 91,106
Total 120,169 116,298

28. Interest expenses

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Securities sold under agreements to repurchase 1,815 903
Debt 187 187
Interest expenses on lease liabilities 37 46
Others 178 56
Total 2,217 1,192

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

29. Taxes and surcharges

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
City maintenance and construction tax 216 189
Educational surcharge 158 139
Others 226 221
Less: Insurance acquisition cash flows incurred
in the period
(362) (347)
Other insurance fulfilment cash flows
incurred in the period
(22) (24)
Total 216 178

30. Operating and administrative expenses

The Group's operating and administrative fee details by item are as follows:

For the six months For the six months
ended 30 June 2025 ended 30 June 2024
Payroll and welfare benefits 10,707 10,805
Professional service fees 3,256 2,771
Advertising expenses (including business
publicity expenses) 3,007 2,668
Outsourcing service fees 1,568 1,509
Insurance security funds withdrawal 1,432 1,318
General office and travel expenses 988 1,033
Depreciation of fixed assets 595 600
Amortisation of intangible assets 578 554
Depreciation of right-of-use assets 516 585
Property management fees 359 365
Labour costs 281 294
Consulting fees 251 322
Amortisation of other long-term assets 196 210
Compulsory automobile rescue fund 81 65
Financial report and internal control audit fees 14 12
Short-term and low-value assets leasing fees 11 30
Other audit service fees 2 3
Others 2,038 1,956
Subtotal 25,880 25,100
Less: Insurance acquisition cash flows incurred
in the period
Other insurance fulfilment cash flows
(17,047) (15,721)
incurred in the period (5,371) (6,314)
Total 3,462 3,065

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025 (All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

31. Impairment losses on financial assets

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
117 (122)
(129) 33
22 5
4 32
14 (52)

32. Other operating expenses

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Depreciation of investment properties
Interest expenses for policyholders' investment
194 217
contract liabilities 56 45
Others 342 426
Total 592 688
33. Income tax
For the six months For the six months
ended 30 June 2025 ended 30 June 2024
Current income tax 3,182 2,345
Deferred income tax 271 1,192
Total 3,453 3,537

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

33. Income tax (continued)

The relationship between income tax expenses and total profit is shown below:

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Total profit 32,259 29,395
Taxes calculated at the statutory tax rate of 25% 8,065 7,349
Income tax adjustment for prior years 109 (375)
Non-taxable income (5,232) (4,189)
Non-deductible expenses 287 208
Others 224 544
Income tax calculated at applicable tax rates 3,453 3,537

The income tax of the Group is provided at applicable tax rate in accordance with the estimated taxable income obtained in Mainland China. Taxes on profits assessable elsewhere have been calculated at the rates of tax prevailing in the countries or jurisdictions in which the Group operates, based on existing legislation, interpretations and practices in respect thereof.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

34. Other comprehensive income/(loss)

Other comprehensive income/(loss)
in balance
sheet
Other comprehensive income/(loss) in income statement
1 January
2025
Attributable to
the Company
-
net of tax
30 June
2025
Amount
incurred
before income
tax
Less:
Recognised in
other
comprehensive
income/(loss)
in previous
period but
transferred to
profit or loss
in current
period
Less:
Recognised in
other
comprehensive
income/(loss)
in previous
period but
transferred to
retained profits
in current
period
Less: Income
tax
Attributable to
the Company -
net of tax
Attributable to
non-controlling
interests -
net
of tax
Other comprehensive income/(loss) that will not be reclassified
to profit or loss
Changes in the fair value of equity investments at fair
value through other comprehensive income
Insurance finance income/(expenses) for insurance contracts
issued that will not be reclassified to profit or loss
7,457
(2,266)
1,428
(255)
8,885
(2,521)
2,518
(548)
-
-
(425)
150
(629)
137
1,428
(255)
36
(6)
Other comprehensive income/(loss) that will be
reclassified to profit or loss
Share of other comprehensive income/(loss) that will be
reclassified to profit or loss of investees accounted for
using the equity method
Changes in the fair value of debt instruments at fair value
(97) - (97) - - - - - -
through other
comprehensive income
Changes in provisions for credit risks of debt instruments at
181,397 5,298 186,695 9,686 (2,502) - (1,796) 5,298 90
fair value through other comprehensive income 3,260 101 3,361 138 (2) - (34) 101 1
Exchange differences on translation of foreign operations 83 (17) 66 (17) - - - (17) -
Insurance finance income/(expenses) for insurance contracts
issued that will be reclassified to profit or loss
Insurance finance income/(expenses) for reinsurance
(174,881) (33,895) (208,776) (46,019) 149 - 11,386 (33,895) (589)
contracts held that will be reclassified to profit or loss (36) 33 (3) 45 - - (12) 33 -
Total 14,917 (27,307) (12,390) (34,197) (2,355) (275) 9,052 (27,307) (468)

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

34. Other comprehensive income/(loss) (continued)

Other comprehensive income/(loss)
in balance
sheet
Other comprehensive income/(loss) in income statement
1 January
2024
Attributable to
the Company
-
net of tax
30 June
2024
Amount
incurred
before income
tax
Less:
Recognised in
other
comprehensive
income/(loss)
in previous
period but
transferred to
profit or loss
in current
period
Less:
Recognised in
other
comprehensive
income/(loss)
in previous
period but
transferred to
retained profits
in current
period
Less: Income
tax
Attributable to
the Company
-
net of tax
Attributable to
non-controlling
interests -
net
of tax
Other comprehensive income/(loss) that will not be reclassified
to profit or loss
Changes in the fair value of equity investments at fair
value through other comprehensive income
Insurance finance income/(expenses) for insurance contracts
issued that will not be reclassified to profit or loss
1,653
(1,390)
5,791
(723)
7,444
(2,113)
7,775
(997)
-
-
68
13
(1,944)
249
5,791
(723)
108
(12)
Other comprehensive income/(loss) that will be reclassified
to profit or loss
Share of other comprehensive income/(loss) that will be
reclassified to profit or loss of investees accounted for
using the equity method
(100) 4 (96) 5 - - (1) 4 -
Changes in the fair value of debt instruments at fair value
through other comprehensive income
Changes in provisions for credit risks of debt instruments at
78,160 49,813 127,973 68,733 (950) - (17,110) 49,813 860
fair value through other comprehensive income 3,045 (96) 2,949 (126) (5) - 33 (96) (2)
Exchange differences on translation of foreign operations 60 7 67 7 - - - 7 -
Insurance finance income/(expenses) for insurance contracts
issued that will be reclassified to profit or loss
Insurance finance income/(expenses) for reinsurance
(73,431) (52,287) (125,718) (71,510) 579 - 17,736 (52,287) (908)
contracts
held
that will be reclassified to profit or loss
(5) (19) (24) (25) - - 6 (19) -
Total 7,992 2,490 10,482 3,862 (376) 81 (1,031) 2,490 46

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

V. NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

35. Earnings per share

(1) Basic earnings per share

Basic earnings per share was calculated by dividing the net profit of the current period attributable to the shareholders of the parent by the weighted average number of ordinary shares issued by the Company.

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Consolidated net profit for the period attributable to
shareholders of the parent
27,885 25,132
Weighted average number of ordinary shares in issue
(million shares)
9,620 9,620
Basic earnings per share (RMB per share) 2.90 2.61

(2) Diluted earnings per share

The Company had no dilutive potential ordinary shares during the six-month periods ended 30 June 2025 and 2024.

  1. Cash and cash equivalents
30 June 2025 31 December 2024
Cash:
Cash at bank readily available for payments 44,436 27,556
Other cash balances readily available for payments 1,413 1,215
Cash equivalents:
Investments with an initial term within 3 months 21,343 10,902
Total 67,192 39,673

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VI. SEGMENT INFORMATION

The Group presents segment information based on its major operating segments.

For management purpose, the Group is organised into business units based on their products and services. Different operating segments provide products and services with different risks and rewards.

The Group's operating segments are listed as follows:

  • The life and health insurance segment (mainly including CPIC Life, CPIC Health and CPIC Life (H.K.)) offers a wide range of life and health insurance in RMB and foreign currencies;
  • The property and casualty insurance segment (including CPIC Property, PAAIC and CPIC H.K.) provides a wide range of property and casualty insurance in RMB and foreign currencies;
  • The asset management segment (including CPIC Asset Management, Changjiang Pension, CPIC Investment (H.K.), CPIC Funds, CPIC Capital and CPIC Zhiyuan) provides assetmanagement services;
  • Except for the above business segments, other business segments have no material impact on the Group's operating results and are therefore not presented separately.

Intersegment sales and transfers are measured based on the actual transaction price.

More than 99% of the Group's revenue is derived from its operations in Mainland China. More than 99% of the Group's assets are located in Mainland China.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VI. SEGMENT INFORMATION (continued)

For the six months ended 30 June 2025
Property and casualty
Items Life and health insurance insurance Asset management Others and eliminations Total
Insurance revenue 43,882 98,193 - (251) 141,824
Interest income 25,882 2,222 111 846 29,061
Investment income 18,515 1,326 28 1,802 21,671
Including: Share of profits/(losses) of associates
and joint ventures 88 15 1 (249) (145)
Other income 27 41 15 23 106
Gains arising from changes in fair value 4,859 816 37 144 5,856
Exchange gains/(losses) 7 (1) - (19) (13)
Other operating income 560 136 1,761 (539) 1,918
Gains on disposal of assets 55 18 - - 73
Operating income 93,787 102,751 1,952 2,006 200,496
Insurance service expenses (27,978) (92,413) - 222 (120,169)
Allocation of reinsurance premiums (317) (7,251) - 278 (7,290)
Less: Recoveries of insurance service expenses from
reinsurers 232 6,184 - (171) 6,245
Insurance finance expenses for insurance contracts
issued (40,208) (812) - 322 (40,698)
Less: Reinsurance finance income for reinsurance
contracts held 532 189 - (6) 715
Others (3,419) (1,376) (1,051) (1,181) (7,027)
Operating expenses (71,158) (95,479) (1,051) (536) (168,224)
Operating profit 22,629 7,272 901 1,470 32,272
Add: Non-operating income 4 26 - 6 36
Less: Non-operating expenses (14) (26) (4) (5) (49)
Profit before tax 22,619 7,272 897 1,471 32,259
Less: Income tax (1,648) (1,553) (203) (49) (3,453)
Net profit for the period 20,971 5,719 694 1,422 28,806

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VI. SEGMENT INFORMATION (continued)

For the six months ended 30 June 2025
Property and casualty
Items Life and health insurance insurance Asset management Others and eliminations Total
Supplementary information:
Capital expenditure 51 719 41 829 1,640
Depreciation and amortisation 910 728 107 410 2,155
Impairment losses on financial assets 81 (40) - (27) 14
As at 30 June 2025
Long-term equity investments 120,802 252 10 (107,916) 13,148
Financial assets* 2,326,745 154,203 9,107 140,259 2,630,314
Reinsurance contract assets 15,699 29,456 - (1,087) 44,068
Term deposits 137,938 31,112 260 8,909 178,219
Others 66,505 34,904 4,586 58,356 164,351
Segment assets 2,667,689 249,927 13,963 98,521 3,030,100
Insurance contract liabilities 2,284,385 145,228 - (1,030) 2,428,583
Bonds payable - 10,103 - - 10,103
Securities sold under agreements to repurchase 173,388 2,360 813 3,644 180,205
Others 51,812 25,291 3,454 17,446 98,003
Segment liabilities 2,509,585 182,982 4,267 20,060 2,716,894

*Financial assets include financial assets at fair value through profit or loss, derivative financial assets, financial assets at amortised cost, debt investments at fair value through other comprehensive income and equity investments at fair value through other comprehensive income.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VI. SEGMENT INFORMATION (continued)

For the six months ended 30 June 2024
Property and casualty
Items Life and health insurance insurance Asset management Others and eliminations Total
Insurance revenue 42,985 94,298 - (264) 137,019
Interest income 24,195 2,420 118 1,036 27,769
Investment income 7,156 611 (13) (861) 6,893
Including: Share of profits/(losses) of associates
and joint ventures 120 14 1 (259) (124)
Gains arising from the derecognition
of financial assets measured at - 4 - - 4
amortized cost.
Other income 22 31 5 28 86
Gains arising from changes in fair value 17,782 1,035 31 2,097 20,945
Exchange (losses)/gains (8) 13 - 27 32
Other operating income 686 131 1,599 (527) 1,889
Gains on disposal of assets 1 - - - 1
Operating income 92,819 98,539 1,740 1,536 194,634
Insurance service expenses (27,224) (89,263) - 189 (116,298)
Allocation of reinsurance premiums (370) (7,878) - 286 (7,962)
Less: Recoveries of insurance service expenses from
reinsurers 515 7,201 - (114) 7,602
Insurance finance expenses for insurance contracts
issued (41,996) (1,585) - (449) (44,030)
Less: Reinsurance finance income for reinsurance
contracts held 646 404 - (14) 1,036
Others (2,190) (1,332) (1,057) (956) (5,535)
Operating expenses (70,619) (92,453) (1,057) (1,058) (165,187)
Operating profit 22,200 6,086 683 478 29,447
Add: Non-operating income 3 15 - 6 24
Less: Non-operating expenses (17) (42) - (17) (76)
Profit before tax 22,186
(1,950)
6,059
(1,228)
683
(158)
467
(201)
29,395
(3,537)
Less: Income tax
Net profit for the period 20,236 4,831 525 266 25,858

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VI. SEGMENT INFORMATION (continued)

For the six months ended 30 June 2024
Property and casualty
Items Life and health insurance insurance Asset management Others and eliminations Total
Supplementary information:
Capital expenditure 165 174 42 999 1,380
Depreciation and amortisation 984 758 122 359 2,223
Impairment losses on financial assets (79) 37 - (10) (52)
As at 31 December 2024
Long-term equity investments 115,822 236 9 (93,547) 22,520
Financial assets* 2,180,866 146,875 8,697 145,617 2,482,055
Insurance contract assets - 22 - - 22
Reinsurance contract assets 15,573 31,677 - (1,169) 46,081
Term deposits 134,818 30,286 254 8,460 173,818
Others 45,150 27,867 4,406 32,988 110,411
Segment assets 2,492,229 236,963 13,366 92,349 2,834,907
Insurance contract liabilities 2,092,386 138,275 - (1,147) 2,229,514
Bonds payable - 10,286 - - 10,286
Securities sold under agreements to repurchase 175,850 3,112 834 1,899 181,695
Others 52,558 20,536 2,748 19,089 94,931
Segment liabilities 2,320,794 172,209 3,582 19,841 2,516,426

*Financial assets include financial assets at fair value through profit or loss, derivative financial assets, financial assets at amortised cost, debt investments at fair value through other comprehensive income and equity investments at fair value through other comprehensive income.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS

1. Major related parties

As at 30 June 2025, the Company's major related parties comprise:

  • (1) Subsidiaries of the Company;
  • (2) Investors who exert significant influence on the Company;
  • (3) Joint ventures and associates of the Company;
  • (4) Key management personnel of the Company and close family members of such individuals;
  • (5) Enterprise annuity fund established by the Group; and
  • (6) Legal entities or other organisations other than the Company and its holding subsidiaries, in which the Company's associated natural persons serve as directors and senior management personnel.

Except for being controlled by the state together with the Company, an enterprise that has no other related party relations with the Company is not a related party to the Company.

    1. Related party relationships
  • (1) Related parties controlled by the Company

Related parties controlled by the Company are mainly subsidiaries of the Company. Their basic information and relationships with the Company are set out in Note IV.

(2) The movements of registered capital and the percentages of the equity or shares held are as follows:

Name of investee Registered capital Shares or equity held
Movements for
1 January Movements for the 30 June 1 January the current 30 June
2025 current period 2025 2025 period 2025
CPIC Property 19,948 - 19,948 98.50% - 98.50%
CPIC Life 8,628 - 8,628 98.29% - 98.29%
CPIC Asset Management 2,100 - 2,100 99.67% - 99.67%
Changjiang Pension 3,000 - 3,000 61.10% - 61.10%
CPIC H.K. HKD 250 million - HKD 250 million 100.00% (1.5%) 98.50%
CPIC Real Estate 115 - 115 100.00% - 100.00%
CPIC Investment (H.K.) HKD 200 million - HKD 200 million 99.71% - 99.71%
City Island USD 50,000 - USD 50,000 98.29% - 98.29%
Great Winwick Limited USD 50,000 - USD 50,000 98.29% - 98.29%
Great Winwick (Hong Kong)
Limited HKD 10,000 - HKD 10,000 98.29% - 98.29%
Newscott Investments Limited USD 50,000 - USD 50,000 98.29% - 98.29%
Newscott (Hong Kong) Investments
Limited HKD 10,000 - HKD 10,000 98.29% - 98.29%
USD 15,600 USD 15,600
Xin Hui Property thousand - thousand 98.29% - 98.29%
USD 46,330 USD 46,330
He Hui Property thousand - thousand 98.29% - 98.29%
CPIC Online Services 200 - 200 100.00% - 100.00%
Tianjin Trophy 354 - 354 98.29% - 98.29%
CPIC Senior Living Investment 5,000 - 5,000 98.29% - 98.29%
CPIC Health 3,600 - 3,600 99.74% - 99.74%
PAAIC 1,080 - 1,080 66.76% - 66.76%
Pacific Medical & Healthcare 1,000 - 1,000 98.29% - 98.29%
CPIC Funds 150 - 150 50.83% - 50.83%
Pacific Insurance Agency 50 - 50 100.00% - 100.00%
Chengdu Project Company 1,000 83 1,083 98.29% - 98.29%
Hangzhou Project Company 1,200 - 1,200 98.29% - 98.29%
Xiamen Project Company 900 - 900 98.29% - 98.29%
Pacific Care Home at Chengdu 60 - 60 98.29% - 98.29%

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

2. Related party relationships (continued)

(2) The movements of registered capital and the percentage of the equity or shares held are as follows (continued)

Name of investee Shares or equities held
Registered capital
Movements
Movements
1 January for the current 30 June 1 January for the current 30 June
2025 period 2025 2025 period 2025
Nanjing Project Company 702 - 702 98.29% - 98.29%
Pacific Care Home at Dali 608 - 608 74.70% - 74.70%
Shanghai (Putuo) Project Company 250 - 250 98.29% - 98.29%
Pacific Care Home at Hangzhou 60 - 60 98.29% - 98.29%
Wuhan Project Company 980 - 980 98.29% - 98.29%
CPIC Capital 100 - 100 99.67% - 99.67%
Pacific Care Home at Shanghai (Chongming) 1,253 - 1,253 98.29% - 98.29%
Pacific Care Home at Shanghai (Putuo) 30 - 30 98.29% - 98.29%
Borui Heming 52 - 52 98.29% - 98.29%
CPIC Life (H.K.) HKD 1,000 million - HKD 1,000 million 98.29% - 98.29%
Qingdao Project Company 227 - 227 98.29% - 98.29%
Pacific Care Home at Xiamen 40 - 40 98.29% - 98.29%
Zhengzhou Project Company 650 - 650 98.29% - 98.29%
Beijing Project Company 800 - 800 98.29% - 98.29%
CPIC Technology 700 - 700 100.00% - 100.00%
Xinbaoyu 3,650 - 3,650 98.46% - 98.46%
CPIC Technology Wuhan 100 - 100 100.00% - 100.00%
Sanya Project Company 490 - 490 98.29% - 98.29%
Pacific Care Home at Nanjing 30 - 30 98.29% - 98.29%
Pacific Care Home at Shanghai (Jing'an) 426 - 426 98.29% - 98.29%
Pacific Care Home at Wuhan 30 - 30 98.29% - 98.29%
Pacific Care Home at Suzhou 30 - 30 98.29% - 98.29%
Pacific Care Home at Beijing 30 - 30 98.29% - 98.29%
Pacific Care Home at Zhengzhou 45 - 45 98.29% - 98.29%
Xiamen Rehabilitation Hospital 160 - 160 98.29% - 98.29%
Guangzhou Project Company 830 - 830 98.29% - 98.29%
Suzhou Project Company 300 - 300 98.29% - 98.29%
Jinan Rehabilitation Hospital 260 - 260 98.29% - 98.29%
Ruiyongjing Real Estate 14,050 - 14,050 68.80% - 68.80%
Pacific Nanshanju 10 (4) 6 55.04% 43.25% 98.29%
Pacific Care Home at Sanya - 30 30 - 98.29% 98.29%
CPIC Zhiyuan - 10 10 - 99.67% 99.67%

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

  1. Related party relationships (continued)

(3) Other major related parties

Shenergy (Group) Company Limited Shareholder with over 5% voting rights of the Company Shanghai State-Owned Assets Operation Co., Ltd. Shareholder with over 5% voting rights of the Company Shanghai International Group Co., Ltd. Parent company of shareholders holding over 5% voting rights of the Company

Baoshan Iron & Steel Co., Ltd.

Baowu Carbon Technology Co., Ltd.

Shanghai Baoxin Software Co., Ltd.

Taiyuan Iron & Steel (Group) Co., Ltd.

Hwabao WP Fund Management Co., Ltd.

Shanghai International Group Asset Management Co., Ltd. Hainan Shenergy New Energy Co., Ltd. Subsidiary of shareholders holding over 5% voting rights of the Company Shanghai Gas Co., Ltd. Subsidiary of shareholders holding over 5% voting rights of the Company Shenergy Company Limited Subsidiary of shareholders holding over 5% voting rights of the Company Shanghai LNG Company Ltd. Subsidiary of shareholders holding over 5% voting rights of the Company Binjiang-Xiangrui Joint venture of the Company

Shanghai Juche Information Technology Co., Ltd. ("Juche") Associate of the Company Zhongdao Automobile Rescue Industry Co., Ltd. ("Zhongdao") Associate of the Company

Shanghai Shantai Healthcare and Technology Company Limited ("Shantai Healthcare") Associate of the Company

Shanghai Guangci Memorial Hospital Co., Ltd. ("Guangci Hospital") Associate of the Company

Orient Securities Company Limited ("Orient Securities")

Swiss Reinsurance Company Ltd

Hwabao Trust Co., Ltd.

Name of entity Relationship with the Company

Hwabao Investments Co., Ltd. Shareholder with over 5% voting rights of the Company

China Baowu Steel Group Corporation Limited Parent company of shareholders holding over 5% voting rights of the Company

Subsidiary of parent company of shareholders holding over 5% voting rights of the Company

Subsidiary of parent company of shareholders holding over 5% voting rights of the Company

Subsidiary of parent company of shareholders holding over 5% voting rights of the Company

Subsidiary of parent company of shareholders holding over 5% voting rights of the Company

Subsidiary of parent company of shareholders holding over 5% voting rights of the Company

Subsidiary of parent company of shareholders holding over 5% voting rights of the Company

Euler Hermes Joint venture of the Company

The Company's enterprise annuity plan Enterprise annuity fund established by the Group CPIC Property's enterprise annuity plan Enterprise annuity fund established by the Group CPIC Life's enterprise annuity plan Enterprise annuity fund established by the Group CPIC Asset Management's enterprise annuity plan Enterprise annuity fund established by the Group CPIC Online Services' enterprise annuity plan Enterprise annuity fund established by the Group CPIC Health's enterprise annuity plan Enterprise annuity fund established by the Group CPIC Senior Living Investment's enterprise annuity plan Enterprise annuity fund established by the Group PAAIC's enterprise annuity plan Enterprise annuity fund established by the Group CPIC Real Estate's enterprise annuity plan Enterprise annuity fund established by the Group Pacific Medical & Healthcare's enterprise annuity plan Enterprise annuity fund established by the Group CPIC Fund's enterprise annuity plan Enterprise annuity fund established by the Group Pacific Insurance Agency enterprise annuity plan Enterprise annuity fund established by the Group CPIC Technology enterprise annuity plan Enterprise annuity fund established by the Group CPIC Capital enterprise annuity plan Enterprise annuity fund established by the Group

Company of which the Group's related natural persons serve as directors or senior management personnel in the past 12 months

Company of which the Group's related natural persons serve as directors or senior management personnel in the past 12 months Company of which the Group's related natural persons serve as directors or

senior management personnel

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

  1. Major transactions with related parties

3.1 Major transactions between the Group and related parties

The transaction amount for the period was calculated since the entity was identified as a related party of the Group.

(1) Sale of insurance contracts

For the six months For the six months
ended 30 June 2025 ended 30 June 2024
Baoshan Iron & Steel Co., Ltd. 24 16
Shenergy Company Limited 5 4
China Baowu Steel Group Corporation Limited 5 -
Shanghai Gas Co., Ltd. 2 2
Taiyuan Iron & Steel (Group) Co., Ltd. 2 2
Orient Securities 1 3
Shanghai International Group Co., Ltd. 1 1
Shanghai International Group Asset Management Co.,
Ltd. 1 1
Shanghai State-Owned Assets Operation Co., Ltd. 1 1
Baowu Carbon Technology Co., Ltd. 1 1
Shanghai Baoxin Software Co., Ltd. 1 1
Shanghai LNG Company Ltd. 1 1
Hainan Shenergy New Energy Co., Ltd. - 11
Total 45 44

Sale of insurance contracts to shareholders who individually own more than 5% of voting rights of the Company and the shareholders' parent company was RMB 7 million for the six months ended 30 June 2025 (For the six months ended 30 June 2024: RMB 2 million).

The Group's above related party transactions were entered into based on normal commercial terms during the normal course of insurance business. For the six months ended 30 June 2025 and 30 June 2024, the proportion of the scale premium of related parties to the total scale premium of the Group's was less than 1%.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

    1. Major transactions with related parties (continued)
  • 3.1 Major transactions between the Group and related parties (continued)
  • (2) Fund subscription and redemption transactions
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Hwabao WP Fund Management Co., Ltd. 125 210
(3) Transaction of asset management products
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Hwabao Trust Co., Ltd. 8 11
(4) Transaction of selling and buying bonds
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Orient Securities
Shanghai International Group Co., Ltd.
1,066
-
41
120
Total 1,066 161
(5) Distribution of cash dividends
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Shenergy (Group) Company Limited
Hwabao Investments Co., Ltd.
Shanghai State-Owned Assets Operation Co., Ltd.
1,513
1,387
705
1,427
1,310
665
Total 3,605 3,402

Distribution of cash dividends to shareholders who individually own more than 5% of voting rights of the Company was RMB 3,605 million for the six months ended 30 June 2025 ( For the six months ended 30 June 2024: RMB 3,402 million).

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

    1. Major transactions with related parties (continued)
  • 3.1 Major transactions between the Group and related parties (continued)
  • (6) Premiums ceded to reinsurers (amounts incurred)
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Swiss Reinsurance Company Ltd 2,109 2,129
(7) Expense recoveries from reinsurers (amounts incurred)
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Swiss Reinsurance Company Ltd 616 571
(8) Claim recoveries from reinsurers (amounts incurred)
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Swiss Reinsurance Company Ltd 1,085 1,045
(9) Remuneration of key management
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Salary and other benefits 11 11
(10) The related party transactions between the Group and the established enterprise annuity funds during
the periods are as follows:
For the six months For the six months
ended 30 June 2025 ended 30 June 2024
Contribution to the enterprise annuity plans 329 325

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

    1. Major transactions with related parties (continued)
  • 3.1 Major transactions between the Group and related parties (continued)
  • (11) The major related party transactions between the Group and joint ventures during the periods are as follows:
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Binjiang-Xiangrui
Fees for leasing office buildings of Binjiang
Xiangrui
38 41
Ruiyongjing Real Estatenote
Fees for leasing office buildings of Ruiyongjing Real
Estate
Grant loans
59
347
61
332
Loan interests 151 144
Euler Hermes
Purchase services
15 14

Note: Ruiyongjing Real Estate has become a subsidiary of the Group since 30 June 2025.

(12) The major related party transactions between the Group and associates during the periods are as follows:

For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Purchase services
Zhongdao 101 99
Juche 57 67
Shantai Healthcare 46 65
Guangci Hospital - 7
Total 204 238

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

    1. Major transactions with related parties (continued)
  • 3.2 Major transactions between the Company and related parties
  • (1) The major related party transactions between the Company and subsidiaries during the periods are as follows:
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Purchase of insurance contracts
CPIC Property
CPIC Health
3
-
3
6
Total 3 9
Rental income from office buildings
CPIC Property
CPIC Technology
CPIC Life
Changjiang Pension
CPIC Senior Living Investment
Pacific Medical & Healthcare
CPIC Health
CPIC Asset Management
47
15
5
3
2
2
1
1
48
16
6
4
2
1
1
1
Total 76 79
Shared service centre fees
CPIC Property
CPIC Life
CPIC Asset Management
CPIC Health
CPIC Technology
CPIC Online Services
CPIC Senior Living Investment
28
19
2
2
1
1
1
34
20
2
2
1
1
1
Total 54 61
Equipment rental fee
CPIC Technology
58 46
Asset management fee
CPIC Asset Management
14 14
Technology service fee
CPIC Technology
150 148
Medical examination fee
CPIC Health
- 2
Entrusted management fees
CPIC Real Estate
4 2

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

    1. Major transactions with related parties (continued)
  • 3.2 Major transactions between the Company and related parties (continued)
  • (1) The major related party transactions between the Company and subsidiaries during the periods are as follows: (continued)
For the six months
ended 30 June 2025
For the six months
ended 30 June 2024
Rental fees
CPIC Property 1 2
CPIC Life 1 1
Xinbaoyu 1 1
Total 3 4
Text messaging service fee
CPIC Technology 1 -
Dividend income from subsidiaries
CPIC Life 6,869 6,869
CPIC Property 3,144 1,965
CPIC Asset Management 382 369
CPIC Technology 24 11
CPIC Real Estate 18 49
Total 10,437 9,263
Proceeds from disposal of subsidiaries
CPIC Property 167 -

The rents of the office buildings charged by the Company to CPIC Property, CPIC Technology, CPIC Life, Changjiang Pension, CPIC Senior Living Investment, CPIC Health, CPIC Asset Management and Pacific Medical & Healthcare are determined at the prices negotiated by both parties. The shared service centre fees charged by the Company to CPIC Life, CPIC Property, CPIC Asset Management, CPIC Health, CPIC Technology, CPIC Senior Living Investment and CPIC Online are based on the costs of the service providers and distributed in the proportion mutually agreed by both parties. The equipment rental fee charged by the Company to CPIC Technology is determined at the price negotiated by both parties. The asset management fee charged by CPIC Asset Management to the Company is determined by considering the type of entrusted assets, the size of the entrusted assets and the actual operating costs. The technology service fee charged by CPIC Technology to the Company is determined at the price negotiated by both parties. The entrusted management fees charged by CPIC Real Estate to the Company is determined at the price negotiated by both parties. The medical examination fee charged by CPIC Health to the Company is determined at the price negotiated by both parties. The rental fees of the office building incurred among the Company, CPIC Property, CPIC Life and Xinbaoyu are determined at the price negotiated by both parties. The text messaging service fee charged by CPIC Technology to the Company is determined at the price negotiated by both parties.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

    1. Major transactions with related parties (continued)
  • 3.2 Major transactions between the Company and related parties (continued)
  • (2) The major related party transactions between the Company and other related party of the Group during the periods are as follows:
For the six months For the six months
ended 30 June 2025 ended 30 June 2024
Fees for leasing office buildings
Binjiang-Xiangrui 26 27
  1. Receivables from and payables to related parties

(1) Receivables and payables between the Company and its subsidiaries are as follows:

Dividends receivable
CPIC Life 6,869 -
CPIC Property 3,144 -
CPIC Asset Management 382 -
CPIC Real Estate 18 -
Total 10,413 -
Other receivables
CPIC Property 128 149
CPIC Technology 105 42
CPIC Life 60 101
Changjiang Pension 3 2
CPIC Asset Management 3 3
CPIC Health 3 3
CPIC Senior Living Investment 2 1
CPIC Online Services 1 1
Pacific Medical & Healthcare 1 -
Total 306 302
Other payables
CPIC Technology 173 135
CPIC Asset Management 15 29
Xinbaoyu 5 4
CPIC Property 1 1
CPIC Life 1 -
CPIC Real Estate - 5
CPIC Capital - 5
Total 195 179

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

VII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

4. Receivables from and payables to related parties (continued)

(2) Receivables and payables between the Group and its joint ventures are as follows:

30 June 2025 31 December 2024
Other receivables
Binjiang-Xiangrui
1,772 1,772
Other payables
Binjiang-Xiangrui
342 318

The receivable due from Binjiang-Xiangrui is interest-free with no determined maturity date. As at 31 December 2024, the balance of receivables and payables between CPIC and Ruiyongjing Real Estate included other receivables of RMB 124 million and debt investments at fair value through other comprehensive income of RMB 6,120 million. Ruiyongjing Real Estate became a subsidiary of CPIC on 30 June 2025.

(3) Receivables and payables between the Group and other related parties arising from reinsurance are as follows:

30 June 2025 31 December 2024
Receivables from Swiss Reinsurance Company Ltd 1,130 1,366
Payables to Swiss Reinsurance Company Ltd 1,123 863

VIII. CONTINGENCIES

In light of the nature of the insurance business, the Group makes estimates for contingencies and legal proceedings in the ordinary course of business, both in the capacity as plaintiff or defendant in litigation and as claimant or respondent in arbitration proceedings. Legal proceedings mostly involve claims on the Group's insurance policies. Provisions have been made for the probable losses to the Group, including those claims where directors can reasonably estimate the outcome of the litigations taking into account legal advice, if any. No provision is made for contingencies and legal proceedings when the outcome cannot be reasonably estimated or the probability of loss is extremely low.

In addition to the legal proceedings of the above natures, as at 30 June 2025, the Group was the defendant in certain pending litigations. Provisions were made for the possible losses based on best estimate by the Group and the Group would only be contingently liable for any claim that is in excess of the provision made. No provision was made for contingencies and legal proceedings when the outcome cannot be reasonably estimated by the management or the probability of loss is extremely low.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

IX. COMMITMENTS

1. Major projects with capital commitments

30 June 2025 31 December 2024
Capital commitments
Contracted, but not provided for (1)(2)(3)(4)(5) 15,099 18,858
Authorised, but not contracted for (1) 1,341 2,101
16,440 20,959

As at 30 June 2025, major projects with capital commitments were as follows:

  • (1) CPIC Life and CPIC Senior Living Investment obtained the use rights of 15 parcels of land located at Wenjiang District in Chengdu, Sichuan, etc, and set up 15 project companies named Chengdu Project Company, etc, accordingly as the owners of the land use rights to parcels of land and construction development subjects for the construction project "CPIC Home". As at 30 June 2025, the cumulative amount incurred from construction in progress was approximately RMB 985 million. Of the balance, approximately RMB 2,200 million was disclosed as a capital commitment contracted but not provided for and approximately RMB 1,319 million was disclosed as a capital commitment authorised but not contracted for.
  • (2) CPIC Life and a third party jointly established Taijiashan. The total investment of this project is approximately RMB 5,050 million among which CPIC Life subscribed capital contribution of RMB 5,000 million, accounting for 99.01% of the capital. As at 30 June 2025, CPIC Life has cumulatively made a capital contribution of RMB 2,800 million. Of the balance, RMB 2,200 million was disclosed as a capital commitment contracted but not provided for.
  • (3) CPIC Life and CPIC Capital together subscribed 99.99% of the shares of Nanjing Taibao Xinhui Zhiyuan Equity Investment Fund Management Partnership (Limited Partnership) ("Xinhui Zhiyuan"). As at 30 June 2025, Xinhui Zhiyuan has invested in 7 equity investment funds with a total subscribed contribution of RMB 5,645 million, paid-in contribution of approximately RMB 2,611 million, and uncontributed capital of approximately RMB 3,034 million, which is listed as a capital commitment contracted but not provided for.
  • (4) CPIC Life and CPIC Capital together subscribed 99.98% of the shares of China Pacific Changhang. As at 30 June 2025, China Pacific Changhang has invested in 2 unlisted equity and 28 equity investment funds (not including consolidated structured entities included in the scope of the Group) with a total subscribed contribution of RMB 8,489 million, paid-in contribution of RMB 5,658 million, and uncontributed capital of RMB 2,831 million, which is listed as a capital commitment contracted but not provided for.
  • (5) The Company, CPIC Life and CPIC Capital together subscribed 90.90% of the shares of CPIC Health Fund. As at 30 June 2025, CPIC Health Fund has invested in 27 equity investment funds (not including consolidated structured entities included in the scope of the Group), with a total subscribed contribution of RMB 6,227 million, paid-in contribution of approximately RMB 4,554 million, and uncontributed capital of approximately RMB 1,673 million, which is listed as a capital commitment contracted but not provided for.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

IX. COMMITMENTS (continued)

2. Operating lease rental receivables

The Group leases its investment properties under various rental agreements. Future minimum lease receivables under non-cancellable operating leases are as follows:

30 June 2025 31 December 2024
Within 1 year (inclusive 1 year) 554 583
1 to 2 years (inclusive 2 years) 306 318
2 to 3 years (inclusive 3 years) 112 187
3 to 5 years (inclusive 5 years) 78 105
More than 5 years 34 51
1,084 1,244

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT

1. Insurance risk

(1) Category of insurance risk and concentration of insurance risk

The risk under an insurance contract arises from the possibility of occurrence of an insured event and the uncertainty of the amount as well as time of any resulting claim. The major risk the Group faces under such contracts is that the actual claims payments and the costs of claims settlement exceed the carrying amount of insurance contract reserves, which are affected by factors such as claim frequency, severity of claim, actual benefits paid and subsequent development of long-term claims. Therefore, the objective of the Group is to ensure that sufficient reserves are available to cover these liabilities.

Insurance risk could occur due to any of the following factors:

Occurrence risk - the possibility that the number of insured events will differ from that expected;

Severity risk - the possibility that the cost of the events will differ from that expected;

Development risk - the possibility that changes may occur in the amount of an insurer's obligation at the end of the contract period.

The above risk exposure is mitigated by the diversification across a large portfolio of insurance contracts. The variability of risks is also reduced by careful selection and implementation of underwriting strategy and guidelines, as well as the use of reinsurance arrangements.

The businesses of the Group mainly comprise long-term life insurance contracts (mainly including life insurance and long-term health insurance), short-term life insurance contracts (mainly including short-term health insurance and accident insurance) and property and casualty insurance contracts. For contracts where death is the insured risk, the significant factors that could increase the overall frequency of claims are epidemics, widespread changes in lifestyle and natural disasters, resulting in earlier or more claims than expected. For contracts where survival is the insured risk, the most significant factor is continued improvement in medical science and social conditions that would increase longevity. For property and casualty insurance contracts, claims are often affected by natural disasters, calamities, terrorist attacks, etc.

Currently, the Group's insurance risk does not vary significantly in relation to the locations of the risks insured by the Group whilst undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio basis.

There would be no significant mitigating terms and conditions that reduce the insured risk accepted for contracts with fixed and guaranteed benefits and fixed future premiums. Meanwhile, insurance risk is also affected by the policyholders' rights to terminate the contract, to pay reduced premiums, to refuse to pay premiums or to avail the guaranteed annuity option. Thus, the resultant insurance risk is subject to the policyholders' behaviour and decisions.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

    1. Insurance risk (continued)
    2. (1) Category of insurance risk and concentration of insurance risk (continued)

In order to manage insurance risks more effectively, the Group manages insurance risks through reinsurance to reduce the effect of potential losses to the Group. Three major types of reinsurance agreements, ceding on a quota share basis or a surplus basis or excess reinsurance, are usually used to cover insurance liability risk, with retention limits varying by product line and territory. The reinsurance contract basically covers all insurance contracts with risk liability. Although the Group has reinsurance arrangements, it is not relieved of its direct obligations to its policyholders. The Group's placement of reinsurance is diversified such that neither it is dependent on a single reinsurer nor are the operations of the Group substantially dependent upon any single reinsurance contract.

(2) Assumptions

Long-term life insurance contracts

Material judgement is required in choosing discount rate assumption, insurance incident occurrence rate assumption (mainly including mortality and morbidity), surrender rate assumption, expense assumption and policy dividend assumption relating to long-term life insurance contracts. These measurement assumptions are based on current information available at the balance sheet date.

Property and casualty and short-term life insurance contracts

The calculation for liability for incurred claims is based on the Group's past claim development experience, including assumptions in respect of average claim costs, claim expenses, inflation factors and number of claims for each accident period. Additional qualitative judgement is used to assess the extent to which past trends may not apply in the future (for example, changes in external factors such as one-off events, public attitudes to claims, market factors such as economic conditions, judicial decisions and government legislation, as well as changes in internal factors such as portfolio mix, policy conditions and claims handling procedures).

Other key assumptions include risk adjustment for non-financial risk, delays in settlement, etc.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

2. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk principally comprises three types of risks, namely interest rate risk arising from market interest rates, price risk arising from market prices and currency risk arising from foreign exchange rates.

The following policies and procedures are in place to mitigate the Group's exposure to market risk:

  • A market risk policy of the Group setting out the assessment and determination of what constitutes market risk for the Group. Compliance with the policy is monitored and exposures and breaches are reported to the Risk Management Committee of the Group. The policy is reviewed regularly by the management of the Group for pertinence and for changes in the risk environment.
  • (1) Currency risk

Currency risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in foreign exchange rates.

Since the Group operates principally in Mainland China, the Group has only limited exposure to currency risk, which arises primarily from certain insurance policies denominated in foreign currencies, bank deposits and common stocks, etc. denominated in the foreign currency.

(2) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Floating rate instruments expose the Group to cash flow interest risk, whereas fixed interest rate instruments expose the Group to fair value interest risk.

The Group's interest risk policy requires it to manage interest rate risk by maintaining an appropriate mix of fixed and floating rate instruments. The policy also requires it to manage the maturity of interest-bearing financial assets and interest-bearing financial liabilities. Interest on floating rate instruments is generally repriced once a year. Interest on fixed rate instruments is priced on initial recognition of related financial instruments and remains constant until maturity date.

The Group is not exposed to significant concentration risks.

(3) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), regardless of whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. Financial investments exposed to market price risk mainly consist of stocks and equity investment funds under financial assets at fair value through profit or loss and equity investments at fair value through other comprehensive income. The Group's price risk policy requires it to manage such risk by setting and monitoring investment objectives, adopting related strategies and managing fluctuations arising from price risk in operating performance.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

3. Credit risk

Credit risk is the risk that one party to a financial instrument or an insurance contract will cause a financial loss to the other party by failing to discharge an obligation.

The Group is exposed to credit risks primarily associated with deposit arrangements with commercial banks, financial assets at amortised cost, debt investments at fair value through other comprehensive income, securities purchased under agreements to resell, reinsurance contract assets and other assets.

Due to the restriction of the National Financial Regulatory Administration, majority of the Group's financial assets are government bonds, government institutional bonds, enterprise bonds, term deposits, debt investment plans and wealth management products. Term deposits are placed with national commercial banks or comparatively sound financial institutions, and most of enterprise bonds, debt investment plans and wealth management products are guaranteed by qualified institutions. Hence, the related credit risk of the investment should be regarded as relatively low. Meanwhile, the Group will perform credit assessments and risk appraisals for each investment before signing contracts, and determine to invest in those programs released by highly rated issuers and project initiators.

For securities purchased under agreements to resell and policy loans, there is a security pledge and the maturity period is less than one year. Premium receivables from life insurance are mainly renew premium within grace period. Hence, the related credit risk should not have significant impact on the Group's consolidated financial statements. The Group grants a short credit period and arranges instalment payment to reduce the property and casualty insurance businesses credit risk. The Group performs regular credit assessment of the reinsurance companies. Reinsurance of the Group is mainly entered into with highly rated reinsurance companies.

The Group mitigates credit risk by utilising credit control policies, undertaking credit analysis on potential investments, and imposing aggregate counterparty exposure limits.

Measurement of expected credit loss

In accordance with the new accounting standard for financial instruments, the Group applies the "expected credit loss model" to measure the impairment of financial assets such as financial assets at amortised cost and debt investments at fair value through other comprehensive income.

Criteria for judging significant changes in credit risk

Under the new financial instruments accounting standard, the Group assesses at each balance sheet date whether the credit risk of the relevant financial instruments has changed significantly since its initial recognition when considering the credit risk stages of financial assets. When determining the impairment stage of financial assets, the Group fully considers all reasonable and well-founded information, including forward-looking information, that reflects whether there has been a significant change in its credit risk. The main factors to be considered are regulatory and operating environment, internal and external credit rating, solvency, operating capacity, etc. The Group based on individual financial instruments or portfolios of financial instruments with similar credit risk characteristics to determine the stage classification of financial instruments by comparing the credit risks of the financial instruments at the reporting date with initial recognition.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

  1. Credit risk (continued)

Measurement of expected credit loss (continued)

Criteria for judging significant changes in credit risk (continued)

The Group sets quantitative and qualitative criteria to determine whether the credit risk of financial instruments has changed significantly since the initial recognition, mainly including changes in the debtor's probability of default ("PD"), changes in credit risk classification, and other circumstances indicating significant changes in credit risk. In determining whether the credit risk of a financial instrument has changed significantly since the initial recognition, the Group considers overdue more than 30 days as one of the criteria for a significant increase in credit risk in accordance with the requirements of the standard.

Definition of financial assets that are credit-impaired

The criteria adopted by the Group in determining whether credit impairment has incurred are consistent with internal credit risk management objectives for the relevant financial instruments, taking into account quantitative and qualitative indicators. When assessing whether a debtor has incurred credit impairment, the Group mainly considers the following factors:

  • The debtor is more than 90 days overdue after the due date of payment in the contract;
  • Internal credit rating is a default rating;
  • For economic or contractual reasons related to the debtor's financial difficulties, the creditor gives the debtor concessions that the creditor would not otherwise consider;
  • Significant financial difficulties of the issuer or debtor;
  • Breach of contract by the debtor, such as default or overdue payment of interest or principal;
  • The debtor is likely to go bankrupt or other financial restructuring;
  • Financial difficulties of the issuer or debtor lead to the disappearance of an active market for that financial asset;
  • Purchase or originate a financial asset at a significant discount that reflects the fact that a credit loss has occurred.

Credit impairment of financial assets may be caused by a combination of multiple events, not necessarily by individually identifiable events.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

  1. Credit risk (continued)

Measurement of expected credit loss (continued)

Parameters of the expected credit loss measurement

The models, parameters and assumptions used in measuring expected credit loss are described as follows:

Impairment provisions are measured in terms of expected credit losses over the next 12 months or throughout the lifetime of the assets, based on whether there has been a significant increase in credit risk and whether the asset has undergone credit impairment. The expected credit loss is the result of discounting the product of the company's exposure at default ("EAD"), PD and rate of loss given default ("LGD") under reasonable and evidence-based forward-looking information that can be obtained without undue cost or effort.

  • i) EAD is based on the amounts the Group expects to be owed at the time of default, over the next 12 months or over the remaining lifetime;
  • ii) PD is the likelihood that the debtor will not be able to meet its payment obligations in the next 12 months or throughout the remaining lifetime;
  • iii) LGD is the Group's expectation of the percentage of loss on the EAD will be lost. LGD varies depending on the type of counterparty, the manner and priority of recourse, and the availability of collateral or other credit support.

When assessing whether the credit risk of a financial instrument has increased significantly since its initial recognition, the Group takes into account changes in the risk of default over the expected lifetime of the financial instruments. The lifetime PD is derived from the 12-month PD based on the maturity information. Impairment for assets assessed on a collective basis is based on observable historical data and on the assumption that assets with the same credit rating and in the same portfolio for collective assessment are in the same situation. The above analysis is based on industry experience and supported by historical data.

Credit risk exposure

Without regard to the impact of guarantees or other credit enhancement methods, the carrying amount of financial assets in the Group's balance sheet reflects its maximum credit risk exposure at the balance sheet date.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

  1. Credit risk (continued)

Credit risk exposure (continued)

The following table sets out the credit risk exposure of financial instruments under the scope of the expected credit loss assessment:

30 June 2025
Maximum
credit risk
Stage 1 Stage 2 Stage 3 exposure
Cash at bank and on hand 46,404 - - 46,404
Securities purchased under
agreements to resell 21,349 - - 21,349
Term deposits 167,328 10,891 - 178,219
Financial Investments: 1,792,852 6,178 2,700 1,801,730
Financial assets at
amortised cost 53,651 1,168 538 55,357
Debt investments at
fair value through other
comprehensive income 1,739,201 5,010 2,162 1,746,373
Restricted statutory deposits 6,898 - - 6,898
Others 14,614 327 97 15,038
Total 2,049,445 17,396 2,797 2,069,638
31 December 2024
Maximum
credit risk
Stage 1 Stage 2 Stage 3 exposure
Cash at bank and on hand 29,357 - - 29,357
Securities purchased under
agreements to resell 10,905 - - 10,905
Term deposits 172,113 1,705 - 173,818
Financial Investments: 1,663,534 6,321 2,961 1,672,816
Financial assets at
amortised cost 62,770 1,517 557 64,844
Debt investments at
fair value through other
comprehensive income 1,600,764 4,804 2,404 1,607,972
Restricted statutory deposits 6,851 - - 6,851
Others 13,235 210 70 13,515

As at 30 June 2025 and 31 December 2024, the collaterals for the financial assets that have suffered credit impairment were mainly stocks and equity investments.

The Group closely monitors collaterals for financial assets that have undergone credit impairment.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

  1. Liquidity risk

Liquidity risk is the risk of capital shortage in the performance of repaying maturing debts or fulfilling other payment obligations.

Liquidity risk may result from the surrender, reduction or early termination of insurance contracts in other forms, the indemnity and payment, and the daily expenses of the Group.

When surrender, reduction or other forms of early termination happens, the Group determines the amounts that are payable on demand to policyholders in accordance with the terms of insurance contracts, which are usually the unearned premiums or the cash values of the relevant part of contracts, after deducting the applicable early termination fees. The Group seeks to manage its liquidity risk by setting out guidelines on asset allocation, portfolio limit structures and the maturity profiles of assets, in order to match the maturities of investment assets with the maturities of corresponding insurance liabilities, to provide funds for the Group to fulfil payment obligations in a timely manner.

The following policies and procedures are in place to mitigate the Group's exposure to liquidity risk:

  • Setting up a liquidity risk policy for the assessment and determination of what constitutes liquidity risk for the Group. Compliance with the policy is monitored, and exposures and breaches of the policy are reported to the risk management committee of the Group. The policy is regularly reviewed by the management of the Group for pertinence and for changes in the risk environment;
  • Setting up emergency fund plans which specify the sources of emergency funds, the minimum amount of daily reserve funds, and the specific events that would trigger such plans.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

4. Liquidity risk (continued)

The tables below summarise the maturity profiles of the main financial assets and financial liabilities of the Group based on undiscounted contractual cash flows and remaining maturity of expected cash flows:

30 June 2025
On demand/ Within 1 1 to 5 Over 5
Overdue year years years Undated Total
Financial assets:
Cash at bank and on hand 46,404 - - - - 46,404
Derivative financial assets - 6 5 - - 11
Securities purchased under
agreements to resell - 21,350 - - - 21,350
Term deposits - 21,020 169,837 - - 190,857
Financial investments:
Financial assets at fair value
through profit or loss 388 24,649 59,246 316,073 390,106 790,462
Financial assets at amortised
cost
- 10,468 24,436 41,557 - 76,461
Debt investments at fair value
through other
comprehensive income - 93,665 424,757 2,465,918 - 2,984,340
Equity investments at fair
value through other
comprehensive income - - - - 172,489 172,489
Restricted statutory deposits - 1,718 5,497 - - 7,215
Others 1,348 9,720 4,369 35 2 15,474
Subtotal 48,140 182,596 688,147 2,823,583 562,597 4,305,063
Financial liabilities:
Derivative financial liabilities - - 60 - - 60
Securities sold under
agreements to repurchase - 180,255 - - - 180,255
Bonds payable - 367 10,734 - - 11,101
Commission and brokerage
payable 961 5,300 389 24 - 6,674
Lease liabilities - 725 765 246 - 1,736
Long-term borrowings - 70 136 - - 206
Others 14,817 39,410 1,820 - - 56,047
Subtotal 15,778 226,127 13,904 270 - 256,079
Net amount 32,362 (43,531) 674,243 2,823,313 562,597 4,048,984

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

4. Liquidity risk (continued)

The tables below summarise the maturity profiles of the main financial assets and financial liabilities of the Group based on undiscounted contractual cash flows and remaining maturity of expected cash flows: (continued)

31 December 2024
On demand/ Within 1 1 to 5 Over 5
Overdue year years years Undated Total
Financial assets:
Cash at bank and on hand 29,136 221 - - - 29,357
Derivative financial assets - 13 13 - - 26
Securities purchased under
agreements to resell - 10,905 - - - 10,905
Term deposits - 26,288 160,777 - - 187,065
Financial investments:
Financial assets at fair value
through profit or loss 388 29,170 63,209 306,695 366,452 765,914
Financial assets at amortised
cost - 17,996 19,883 49,370 - 87,249
Debt investments at fair value
through other
comprehensive income
- 120,725 331,984 2,187,048 - 2,639,757
Equity investments at fair
value through other
comprehensive income - - - - 164,475 164,475
Restricted statutory deposits - 739 6,534 - - 7,273
Others 1,107 7,857 4,934 45 2 13,945
Subtotal 30,631 213,914 587,334 2,543,158 530,929 3,905,966
Financial liabilities:
Derivative financial liabilities - 14 82 - - 96
Securities sold under
agreements to repurchase - 181,748 - - - 181,748
Bonds payable - 367 11,101 - - 11,468
Commission and brokerage
payable 923 4,385 608 26 - 5,942
Lease liabilities - 846 1,447 692 - 2,985
714 40,240 1,700 - - 42,654
Others
Subtotal 1,637 227,600 14,938 718 - 244,893
Net amount 28,994 (13,686) 572,396 2,542,440 530,929 3,661,073

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

5. Operational risk

Operation risk is the risk of loss arising from existed issues on internal procedures, employees and information system failure, and impacts from the external events. When controls fail to perform, operational risk can affect the steady development and reputation of the company, give rise to legal or regulatory matters, or lead to financial loss to the Group.

The Group is exposed to many types of operational risks, including inadequate, or failure to obtain, proper authorisations or supporting documentation to comply with operational and informational system procedures that prevent frauds or errors by employees.

Through the establishment and implementation of internal control manuals, continuous optimisation of information systems, and monitoring and response to potential risks, the Group has established a long-term internal control mechanism to mitigate the impact of operational risks on the Group.

The following internal control measures are in place to mitigate the Group's exposure to operational risk:

  • Setting up effective segregation of duties, access controls, authorisation and reconciliation procedures and user and authority controls for information system;
  • Adopting supervisory measures such as compliance checks, risk investigations and internal audits;
  • Regularly carrying out risk and internal control self-assessment and implementing rectification of defects;
  • Implementing staff education and appraisals.
    1. Mismatching risk of assets and liabilities

Mismatching risk of assets and liabilities is the risk due to the Group's inability to match its assets with its liabilities on the basis of duration, cash flow and investment return. Under the current regulatory and market environment, the Group is lack of investment in assets with a duration of sufficient length to match the duration of its medium and long-term life insurance liabilities. When the current regulatory and market environment permits, the Group will increase the profile of securities with fixed investment returns and lengthen the duration of its assets to narrow the gap of duration and investment returns of the existing assets and liabilities.

In order to further enhance the management of matching of assets and liabilities, the board of directors of the Group has the Strategy and Investment Decision & ESG Committee and Risk Management Committee to make significant decisions on asset-liability management. Besides, the Executive Management Committee of the Group has an asset-liability working group which is responsible for providing professional support for asset-liability management and matching.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

7. Capital management risk

Capital management risk primarily refers to the risk of insufficient solvency as a result of the operation and administration of the Company or certain external events.

It is the Group's objective to maintain a strong credit rating and adequate solvency in order to support its business objectives and to maximise shareholder value. The specific measures are as follows:

  • Managing its capital requirements by assessing shortfalls between reported and targeted capital levels on a regular basis;
  • Stepping up efforts to maintain multiple sources of financing in order to meet solvency margin needs arising from future expansion in business activities;
  • Continuously and proactively adjusting the portfolio of insurance business, optimising asset allocation and improving asset quality to enhance operating performance and the profitability.

The table below summarises the core capital, actual capital and minimum required capital of the Group and its major insurance subsidiaries determined according to solvency supervision rules:

Group 30 June
2025
31 December
2024
Core capital 385,700 358,078
Actual capital 534,478 503,745
Minimum required capital 202,581 197,079
Core solvency margin ratio 190% 182%
Comprehensive solvency margin ratio 264% 256%
30 June 31 December
CPIC Life 2025 2024
Core capital 232,439 213,418
Actual capital 366,386 345,510
Minimum required capital 170,640 164,313
Core solvency margin ratio 136% 130%
Comprehensive solvency margin ratio 215% 210%
30 June 31 December
CPIC Property 2025 2024
Core capital 59,987 58,153
Actual capital 73,696 70,698
Minimum required capital 30,629 31,852
Core solvency margin ratio 196% 183%
Comprehensive solvency margin ratio 241% 222%

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

X. RISK MANAGEMENT (continued)

7. Capital management risk (continued)

The table below summarises the core capital, actual capital and minimum required capital of the Group and its major insurance subsidiaries determined according to solvency supervision rules: (continued)

30 June 31 December
CPIC Health 2025 2024
Core capital 3,658 3,294
Actual capital 4,468 4,040
Minimum required capital 2,045 1,716
Core solvency margin ratio 179% 192%
Comprehensive solvency margin ratio 218% 235%
30 June 31 December
PAAIC 2025 2024
Core capital 2,787 2,868
Actual capital 3,099 3,153
Minimum required capital 991 940
Core solvency margin ratio 281% 305%
Comprehensive solvency margin ratio 313% 335%

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

XI. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. When an active market exists, such as an authorised securities exchange, the market value is the best reflection of the fair value of financial instruments. For financial instruments where there is no active market, fair value is determined using valuation techniques.

The Group's financial assets mainly include cash at bank and on hand, derivative financial assets, securities purchased under agreements to resell, term deposits, financial assets at fair value through profit or loss, financial assets at amortised cost, debt investments at fair value through other comprehensive income, equity investments at fair value through other comprehensive income and restricted statutory deposits, etc.

The Group's financial liabilities mainly include long-term borrowings, securities sold under agreements to repurchase and bonds payable, etc.

Fair value of financial assets and liabilities not carried at fair value

The following table summarises the carrying values and estimated fair values of financial assets at amortised cost, long-term borrowings and bonds payable whose fair values are not presented in the consolidated balance sheet.

30 June 2025 31 December 2024
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Financial assets:
Financial assets at amortised cost
55,357 60,720 64,844 70,062
Financial liabilities:
Long-term borrowings
Bonds payable
157
10,103
158
10,493
-
10,286
-
10,758

The carrying amount of other financial assets and financial liabilities approximate their fair value.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

XII. FAIR VALUE MEASUREMENT

Determination of fair value and fair value hierarchy

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy. The fair value hierarchy prioritises the inputs to valuation techniques used to measure fair value into three broad levels. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

The levels of the fair value hierarchy are as follows:

  • (1) Fair value is based on quoted prices (unadjusted) in active markets for identical assets or liabilities ("Level 1");
  • (2) Fair value is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) ("Level 2"); and
  • (3) Fair value is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs) ("Level 3").

The level of fair value calculation is determined by the lowest level input with material significance in the overall calculation. As such, the significance of the input should be considered from an overall perspective in the calculation of fair value.

For Level 2 financial instruments, valuations are generally obtained from third party pricing services for identical or comparable assets, or through the use of valuation methodologies using observable market inputs, or recent quoted market prices. Valuation service providers typically gather, analyse and interpret information related to market transactions and other key valuation model inputs from multiple sources, and through the use of widely accepted internal valuation models, provide a theoretical quote on various securities. Debt securities traded among Chinese interbank market are classified as Level 2 when they are valued at recent quoted prices from Chinese interbank market or from valuation service providers. Substantially most financial instruments classified within Level 2 of the fair value hierarchy of the Group are debt investments denominated in RMB. Fair value of debt investments denominated in RMB is determined based upon the valuation results by the China Central Depository & Clearing Co., Ltd. All significant inputs are observable in the market.

For Level 3 financial instruments, prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques. Determination to classify fair value measures within Level 3 of the valuation hierarchy is generally based on the significance of the unobservable factors to the overall fair value measurement, and valuation methodologies such as discounted cash flow models and other similar techniques. The Group's valuation team may choose to apply internally developed valuation method to the assets or liabilities being measured, determine the main inputs for valuation, and analyse the change of the valuation and report it to management. Key inputs involved in internal valuation services are not based on observable market data. They reflect assumptions made by management based on judgements and experiences.

For assets and liabilities that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

XII. FAIR VALUE MEASUREMENT (continued)

Determination of fair value and fair value hierarchy (continued)

The following table provides the fair value measurement hierarchy of the Group's assets and liabilities:

30 June 2025
Level 1 Level 2 Level 3 Total fair value
Assets measured at fair value
Term deposits measured at fair value - - 135,859 135,859
Financial assets at fair value through profit or
loss
- Stocks 186,591 - 815 187,406
- Funds 69,198 641 - 69,839
- Bonds 10,186 265,593 388 276,167
- Others 11,714 8,952 120,323 140,989
277,689 275,186 121,526 674,401
Debt investments at fair value through other
comprehensive income
- Bonds 3,149 1,523,971 3,040 1,530,160
- Others - 559 215,654 216,213
3,149 1,524,530 218,694 1,746,373
Equity investments at fair value through other
comprehensive income
- Stocks 93,113 - 2,606 95,719
- Preferred stocks -
924
12,604
12,554
-
32,371
12,604
45,849
- Others
94,037 25,158 34,977 154,172
Derivative financial assets - 11 - 11
Liabilities measured at fair value
Derivative financial liabilities - 60 - 60
Assets for which fair values are disclosed
Financial assets at amortised cost (Note XI) - 23,736 36,984 60,720
Investment properties - - 32,858 32,858
Liabilities for which fair values are disclosed
(Note XI)
Long-term borrowings - - 158 158
Bonds payable - - 10,493 10,493

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

XII. FAIR VALUE MEASUREMENT (continued)

Determination of fair value and fair value hierarchy (continued)

The following table provides the fair value measurement hierarchy of the Group's assets and liabilities: (continued)

31 December 2024
Level 1 Level 2 Level 3 Total fair value
Assets measured at fair value
Term deposits measured at fair value - - 132,893 132,893
Financial assets at fair value through profit or
loss
- Stocks 178,823 - 190 179,013
- Funds 63,249 7,223 - 70,472
- Bonds 8,902 265,045 388 274,335
- Others 15,117 4,939 123,323 143,379
266,091 277,207 123,901 667,199
Debt investments at fair value through other
comprehensive income
- Bonds 1,538 1,341,350 3,107 1,345,995
- Others - 851 261,126 261,977
1,538 1,342,201 264,233 1,607,972
Equity investments at fair value through other
comprehensive income
- Stocks 71,506 - 4,546 76,052
- Preferred stocks - 12,642 - 12,642
- Others 547 18,878 33,895 53,320
72,053 31,520 38,441 142,014
Derivative financial assets - 26 - 26
Liabilities measured at fair value
Derivative financial liabilities - 96 - 96
Assets for which fair values are disclosed
Financial assets at amortised cost (Note XI) - 25,765 44,297 70,062
Investment properties - - 14,169 14,169
Liabilities for which fair values are disclosed
(Note XI)
Bonds payable - - 10,758 10,758

NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

XII. FAIR VALUE MEASUREMENT (continued)

Valuation techniques

The fair value of the unquoted debt investments is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities, with appropriate adjustment where applicable.

The fair value of the equity investments has been determined using valuation techniques such as discounted cash flow method, comparison method of listed companies, recent transaction prices of the same or similar instruments, etc., with appropriate adjustments have been made where applicable, for example, for lack of liquidity using option pricing models.

The fair value of investment properties is determined using discounted cash flow method with unobservable inputs including estimated rental value per square metre per month and discount rate, etc. This method involves the projection of a series of cash flows from valuation date to economic life maturity date. To this projected cash flow series, a market-derived discount rate is applied to establish the present value of the income stream associated with the asset.

XIII. EVENTS AFTER THE BALANCE SHEET DATE

The Group does not have significant post balance sheet events.

XIV. APPROVAL OF THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

These interim consolidated financial statements have been approved for issue by the board of directors of the Company on 28 August 2025.

APPENDIX: SUPPLEMENTARY INFORMATION TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2025

(All amounts expressed in RMB million unless otherwise specified)

I. NET ASSET RETURN AND EARNINGS PER SHARE

For the six months ended 30 June 2025
Weighted average Earnings per share
return on net assets (RMB per share)
Basic Diluted
Net profit attributable to shareholders of the parent 9.6% 2.90 2.90
Net profit attributable to shareholders of the parent net of
non-recurring profit or loss
9.0% 2.73 2.73

The Company had no dilutive potential ordinary shares during the six-month period ended 30 June 2025.

For the six months ended 30 June 2024
Weighted average
return on net assets
Earnings per share
(RMB per share)
Basic Diluted
Net profit attributable to shareholders of the parent
Net profit attributable to shareholders of the parent net of
9.5% 2.61 2.61
non-recurring profit or loss 9.5% 2.61 2.61

Net profit attributable to shareholders of the parent net of non-recurring profit or loss are listed as follows:

For the six months
ended 30 June
2025
For the six months
ended 30 June
2024
Net profit attributable to shareholders of the parent 27,885 25,132
Add/(Less): Non-recurring profit or loss items
Government grants recognised in current profit or loss
Gains on disposal of fixed assets, intangible assets and other long-term assets,
(66) (46)
including write-off of provision for assets impairment (73) (1)
Other net non-operating income and expenses other than aforesaid items
Other items confirming to the definition of non-recurring profit or loss*
14
(1,603)
53
-
Effect of income tax relating to non-recurring profit or loss 38 4
Net profit less non-recurring profit or loss 26,195 25,142
Less: Net non-recurring profit or loss attributable to non-controlling interests 29 -
Net profit attributable to shareholders of the parent net of non-recurring profit
or loss
26,224 25,142

* Ruiyongjing Real Estate has become a subsidiary of the group since 30 June 2025. Ruiyongjing Real Estate was included in the scope of the Group's consolidated financial statements, resulting in a one-time profit or loss impact of RMB1.603 billion. See Note Ⅳ 2 for details.

Talk to a Data Expert

Have a question? We'll get back to you promptly.