Live Performance Meeting | Ping An of China Guo Xiaotao: The core investment approach this year is "finding certainty in uncertainty"

Ask AI · How can Ping An achieve solid returns amid uncertainty by investing in gold?

Each Daily Economic News reporter: Pan Ting Each Daily Economic News editor: Huang Bowen

On March 27, China Ping An held its 2025 annual results briefing. Ping An Group’s management responded to hot issues that the market was paying attention to.

“Looking back at 2025, facing changing and complex opportunities and challenges, Ping An delivered a set of answers characterized by steady growth.” Fu Xin, Vice President of China Ping An, used “steady growth” to describe Ping An’s operating performance in 2025 during the briefing.

On performance: Unrealized gains of over RMB 90 billion were not included in current profit

Fu Xin said: “Under the current accounting classification, Ping An has more than RMB 90 billion in unrealized gains that have not been included in current profit. But it has very well thickened our balance sheet, laying a very strong foundation for future development, the release of sustainable earnings, and steady dividends.”

The data show that 57% of China Ping An’s stock holdings are classified as FVTOCI (measured at fair value with changes recognized in other comprehensive income), contributing more than RMB 90 billion in pre-tax unrealized gains, which are not included in profit and instead directly strengthen net assets.

In 2025, China Ping An achieved operating profit attributable to shareholders of the parent company of RMB 134.415 billion, up 10.3% year on year; the non-GAAP net profit attributable to shareholders of the parent company was RMB 143.773 billion, up 22.5% year on year; operating revenue was RMB 1,050.506 billion, up 2.1% year on year. By the end of 2025, the company’s equity attributable to shareholders of the parent company first surpassed RMB 1 trillion, reaching RMB 10,004.19 billion, up 7.7% from the beginning of the year.

On dividends: The cumulative total dividends paid over the past decade exceed RMB 370 billion

“Our dividend payout has been growing for the past ten-plus consecutive years. Over the past decade, the cumulative total dividends paid have exceeded RMB 370 billion.” Fu Xin said, “The strength of such dividend payouts and our dividend yield—whether in the A-share market or the H-share market—are certainly worth your continuous attention as investors and shareholders.”

The data show that, based on solid performance, in 2025 China Ping An plans to pay a full-year dividend of RMB 2.70 per share, up 5.9% year on year. The total cash dividend will reach RMB 48.891 billion, marking an increase for 14 consecutive years.

On investment: Seeking certainty amid uncertainty

“China Ping An is long-term capital and patient capital, so in our investment process, short-term volatility is not important to us. What matters more is how to get through the cycle and provide our customers and shareholders with long-term, steady, and sustainable returns—this is a very important way of thinking and principle.” Guo Xiaotao, Co-CEO of China Ping An, said.

When talking about its investment strategy, Guo Xiaotao introduced: “Our investment needs to be closely integrated with the liabilities side, so we talk about ‘five matchings’: duration matching, cost matching, product matching, matching the economic cycle, and matching regulatory requirements. The ‘five matchings’ are an important guiding philosophy for how we conduct asset allocation.”

“This year, our core investment thinking is ‘seeking certainty amid uncertainty.’” Guo Xiaotao pointed out that for patient capital with long cycles like Ping An, the most important thing in investing is to be comprehensively aligned with the direction of national economic development.

At the same time, Guo Xiaotao also mentioned that gold is an important asset class in the overall asset allocation, and Ping An has been allocating a certain amount of gold investments since the beginning of 2025. “In such a macro environment, the investment returns brought by gold have also achieved the effects we expected.”

The data show that in 2025, China Ping An’s insurance funds investment portfolio achieved a comprehensive investment return rate of 6.3%, up 0.5 percentage points year on year. In addition, China Ping An’s average net investment return over the past 10 years was 4.8%, its average comprehensive investment return over the past 10 years was 4.9%, which exceeded the embedded value’s long-term investment return assumptions.

On integrated finance: “Nine-Nine Returns to One”

“AI is the major trend in global technological development. For Ping An Group, in terms of technology investment and technology innovation, we have been leading the entire industry. For us, AI is not a multiple-choice question; it is a question that must be answered. In our AI investment and our technology investment, we have remained consistent.” Guo Xiaotao said at the briefing.

According to him, this year China Ping An has a major upgrade to its technology platform—integrated finance “Nine-Nine Returns to One,” meaning the creation of a comprehensive solution of “one customer, multiple accounts, multiple products, and one-stop services,” integrating more than a dozen offline apps into a single major entry point or platform. This enables the integration of the Group’s traffic, entry points, customer service experience, and data.

It is understood that Ping An’s integrated finance model has unique advantages. Four categories of products—protection, assets, credit, and services—meet customers’ needs in an all-round way. The data show that among Ping An’s customers, the retention rate for customers holding 3 or more categories of products reaches 99%, significantly enhancing customer loyalty; service-category products increase customer stickiness, and in 2025, the retention rate for customers enjoying medical and pension ecosystem service rights was 93%.

On stock price performance: Measured from the industry, the company, and valuation

“Recently, due to fluctuations in the capital market, including some volatility driven by geopolitical factors, we believe that not only Ping An but many other companies and the entire market will also see stock price volatility intensify. On the investment side, we have also been paying attention to the related information.” Fu Xin said.

Regarding Ping An’s stock price performance, Fu Xin said it should be assessed in three aspects.

First, look at the industry. In the industry in which China Ping An operates, life insurance has entered a golden development period. Integrated finance and the medical and pension businesses are also the most important areas of development potential and directions. The industry Ping An is in lays the foundation for the company’s sustainable growth over the next 3 to 5 years and 5 to 10 years.

Second, look at the company. Judging from China Ping An’s performance, the company’s development is very steady. Forward-looking indicators for operating profit and future profit—such as NBEV (new business embedded value) and CSM (contract service margin)—all reflect the company’s very good operating and business conditions.

“From the company’s perspective, Ping An is also a high-value company with steady operations, continuously improving and optimizing performance, and good quality.” Fu Xin said.

Third, look at valuation. “Gold will ultimately shine. In the past two years, the market and investors have given Ping An a lot of recognition, and its valuation is still at a low level. We believe that with more investors recognizing it, the light of the gold will become brighter and brighter.” Fu Xin believes.

Daily Economic News