Good morning. Good day, dear friends from the media. Thank you to the 2021 interim result announcement of Ping An Group. I'm Board Secretary, Sheng Ruisheng of the company. Due to COVID pandemic, our conference will be held on-site, webcast, and teleconferencing. We're joined by Mr. Ma Mingzhe, Chairman of the company, Mr. Xie Yonglin, President Co-CEO, Co-CEO Ms. Jessica Tan, Co-CEO CFO Mr. Jason Yao and Timothy Chan, CIO. We'll start with Mr. Yao talking about interim results for 2021, and we're going to take your questions. Jason, please.
Ladies and gentlemen, dear friends from the media, good morning. Welcome to the 2021 interim results announcement of Ping An Group. Thank you for your longstanding interest and support to the company. I'd like to take you through the business performance in the first half of 2021. Please turn to slide five .
In the first half of the year, the domestic and the international economic environment remained complicated with the pandemic still raging and significant uncertainty faced by the global economy. Thanks to Ping An's integrated financial model and technology empowerment, we have achieved a 10% year-on-year growth of attributable profit to the parent company, and annualized ROE was 21%, which was relatively high level. At the same time, we value shareholder return. In line with the operating profit, the dividend [payout] per share increased by 10%, which goes to show our confidence in the outlook of the company. On slide six, let's take a look at the operating profit contribution from the customer point of view in the first half. The retail business OPAT grew by 7%, which accounted for 85% of the total OPAT.
You can see we have newly increased 16.12 million retail customers, 36% of which were converted from the internet users of the group. That is a result of our ecology empowerment. Integrated financial model continued to yield results. The number of retail customers, contract per customer, and the profit per customer continue to grow. We're going to talk more about the results later. Slide seven is about the operating profit contribution by different segments. We're showing you in the first half of the year, the operating profit grew by 10%. Life Insurance have seen a slowdown due to the COVID pandemic, but when it comes to P&C, Ping An Bank, Asset Management, and Technology Business, they have all demonstrated strong operating profit growth. That is really showing the diversification efficacy of our integrated financial model.
If we turn to slide eight, you can see our annualized ROE for the first half was 21%. Despite the uncertainties faced by the economic developments after COVID pandemic, there has been a short-term tempering of the consumption for long-term production business, which weigh on our Life Insurance. The Life and P&C annualized ROE was still reaching 35% for the other business. They are also in very healthy levels. On slide nine, this is about the reconciliation net profit OPAT. Operating profits come from net profit, excluding some of the short-term projects, short-term items. You see CNY 15.2 billion, something related to the impairment of the Fortune Land Development, and also the change of discount rate in Life and Health Insurance, which is about CNY 5.2 billion, which is coming from the downturn of the Treasury yield in the first half.
That was also excluded, and also CNY 3.6 billion of management's variance considered by the management. That's mainly coming from the convertible bonds of Lufax Holding. This is really a mark-to-market adjustment, but this is one of the definitive one-off item which need to be taken out from the net profit. After this consideration, the operating profit was actually up by 10%. On slide 10 is about the Life and Health insurance when it comes to operating profits. In the first half, Life and Health insurance operating profit was down by 3%, but the residual margin continued to grow. It was really mainly coming from the lowering of the operating variance and others. That's mainly due to the economy, industry, and also the lowering and slowdown of the new business value, which is weighing on the Life and Health business.
On slide 11, the ROEV for Life and Health insurance for the first half was close to 15%, whereas we have adopted a rather conservative risk discount rate of 11%. Our disclosed EV denominator will be lower, but our expected return on EV will be high. On slide 12, this is the NBV by channel. Due to the uncertainty of domestic international economy and also the slowdown of consumption for the long-term production products, Life and Health insurance NBV dropped by 11.7%. You can see by channels, the agency channel, the group life, and other channels. We have seen some growth. We remain confident about the long-term outlook of the Chinese Life insurance market, and we'll continue to advance the Ping An Life's reform. In the future, we will remain confident for the future. On slide 13, this is about the dividend payout on the interim dividend.
We attach great importance to shareholder return. Due to the 10% growth of OPAT, we continue to raise our dividend. The interim dividend was up by 10% to CNY0.88 per share. In cash, on the right, at the end of the first half, the free cash of the parent company remained north of CNY 50 billion, which is in a healthy level. On slide 14, in addition to paying out an interim dividend, we plan for a CNY 5 billion-CNY 10 billion share buyback within the next 12 months with our own proprietary funds. You can see the main source of the funding and the impact on the company. This repurchase will not have material negative impact on the company's operational developments. This market cap management measures, which is a full demonstration of our confidence in the long-term outlook of Ping An.
On slide 15, it's showing our strong solvency position. In a relatively volatile equity market and interest rate, our solvency position remain on a relatively high level with strong resilience to risks. In the past months, the regulatory CBIRC was working on the Phase II rules on C-ROSS. The revision has not been officially released. They are still seeking industry feedback. Based on the regulatory changes to our knowledge, the Ping An Life solvency adequacy will probably be lower in line with most of the industry, but we will remain far above of the regulatory threshold. We will be following the progress of C-ROSS Phase II closely for timely disclosure. On slide 16, this is the investment on insurance funds. In terms of the Investment portfolio, continued to grow.
In terms of allocation, we continue to increase allocation to long duration, low response to extend our asset duration to further close the gap between the asset liability duration and also give full play of integrated financial model to explore and increase investment of quality alternative assets. On slide 17, this is the non-standard debt assets, which is now accounting for 12% in the total investment portfolio, which is in line with the level at the end of last year. The average nominal yield was 5.4%, with a remaining maturity of about 3.8 years. On slide 18, this is something the market interested in. Our investment in China Fortune Land Development, which suffer from debt crisis. We have made adjustment, including impairment provision and valuation adjustment to an investment related to CFLD.
In the first half, the adjusted asset total CNY 35.9 billion, of which CNY 14.4 billion were equity and CNY 21.5 billion debts. Due to the higher provision from CFLD, the investment yield on the portfolio were under pressure. As a whole, provision for CFLD have been very prudent. Even though CFLD debt crisis was a isolated incident, but we continue to learn and take a lesson from it and to guard against risks. While we continue to mitigate risk, we are reviewing and improving our Investment Risk Management System and to further tighten our concentration limits and to strengthen the post-investment risk management to improve our group-wide risk governance level. On slide 19, this is about sustainability. We are committed to building the company as a benchmark of ESG in China, continue to play our positive impact.
We have been valuing ESG and communicating our efforts in ESG and gaining recognitions, including many awards. Including Ping An was rated A in the MSCI ESG rating, which is leading in the country and also in the world. On slide 20, this is summary of the company's honor and awards.
Our brand value has been further improved. You can see that we were ranking at the number 16 for the Fortune 500, and the second one in the global financial groups. At the same time, we will also be awarded with other titles and names. That's all for the financials. Later, we'll also provide you the technology and the integrated finance service information slide. I'm not going to elaborate all the information here, so let's just leave some time for our friends from the media for the QA. Thank you.
Okay. Thank you. Thanks for Jason. Coming next, let's come to the QA session. The same as what we used to do, we're going to have the on-site questions and the online questions. For each of the audience who raise a question, please help to identify your name and the institution you represent.
Due to the time reason, no more than two questions for each one. let's welcome this lady sitting in the front rows, please. Just wait. We pass you the microphone.
I'd like to ask management team how you're going to comment on the performance of H1. Are you happy with it? there are so many reforms on the life insurance. What's the updates and when shall the reform result be seen? Thank you.
I say that for the general comment of the H1 performance, I think I have four sentences to conclude my feeling. First of all, we have a robust operation. You can see that our operating profit was at 10%, but the annualized ROE still be maintained, and we're also very confident of our future development.
We're going to launch a CNY 5 billion-CNY 10 billion repurchasement, our payout ratios also being up by 10%, where at the same time, we're going to have more equities being held by our management team. My second sentence is that we have obviously the advantage of integrated finance. On one side, our revenue structure has been more stabilized for the past two years. There are many challenges for the life insurance product. You can see our P&C and the Wealth Management done by the banks. Even if technology also made great contribution to the profit and the revenue, so Integrated Finance enjoy pronounced advantage in the market. If you take a look at our slides, you can also see no matter for the retail business or for the corporate business, and one customer who enjoy multiple services from us, this customer base is increasing steadily.
While Integrated Finance will help to improve the customer stickiness and also the unit profit per customer. We also believe in the near future in China, there will be more furious competition in the financial market. The whole industrial market is also going to be quite challenging. I think integrated finance is surely the one who help us to take care of the challenging market environment. My third sentence is that technology empowerment can also show its dramatic contribution to our performance. On one side, technology can help to grow our financial services. It's already been seen in our performance. For example, on P&C Payment, the payment speed is being further accelerated by leveraging artificial intelligence. Artificial intelligence being widely deployed for the risk management empowerment of the team. We already have statistics to show how the improvement be made by the technology.
At the same time, technology in H1 of this year also contribute CNY 6.24 billion of the profit attributable to the parent company. These are also being done by the technology. My fourth comment is that we are promoting all kinds of the reforms internally. Many of you may worry about the life insurance reform. Well, for me, I think life insurance reform are working on the channels and the product. Four channels and the three major projects. We are now facing the industrial issue, and then to make some early preparations for these industrial changes. We hope that we could be successful in this reform, and then we will lead the market development. Because I myself is also the Chairman of Ping An Bank.
Even if we're going to keep the same strategic direction, regarding the tactics, we're going to take the technological empowerment approach to make sure we set up and upgrade our business tactics. We have already released our interim result announcement. You can also see that reforms being greatly done. We'd like to build a so-called brand new balance sheet. You can also see great achievements and advancements being made. Four comments. On one side, we have a robust operation. Secondly, we see pronounced advantage from integrated finance. Thirdly, technology empowerment also made great contribution. Fourth comment, proactively do the reform. It's already on the right track. Thank you.
Thanks for Mr. Xie. A few points from me regarding the life insurance reform.
My first point is that, as Mr. Xie mentioned, at the very beginning of 2020, we already started to propose the fundamental reform over the agent model for the life insurance business. You can see that in H1 of this year, for the whole life insurance industry, the size of the agents was decreased by 24%. Many of the company also noticed that reform is truly needed in this market. That's why you know that we are one year ahead of our peers in doing the life insurance reform. What should we do within this reform? We have a so-called four plus three strategy, four channels and three product. Four channels means the first channel or the most important channel is the individual agent.
How can we make sure that we can improve the turnover rate of our head count, then to build a so-called three high team with high retention, high professionalism, and high contribution? We believe we at least need three years to accomplish this reform. We started it since the beginning of 2020. Ultimately, we're going to build a high quality rate individual agent team. Another three channel means that we not only need to change the status quo to make the business more sustainable, but we should also deploy for the future. We're going to have the so-called grade deployment over the communities. We have 27.8 million part-time agents. We hope that we can build a grade in each city. Within each grade, we're going to cover certain number of the customers by appointing one individual part-time agent to be there.
It's more like of the Account Managers to take care of certain kinds and a certain number of the customer. I think this is the second channel we're going to do, and it's going to have a steady growth. The third channel is regarding the Bank Insurance. We upgraded our bank insurance structure, make it into a premier channel, also working with the Wealth Management service we provided. The fourth channel is more working with the change of the labor force. We believe in the near future, there will be some so-called part-time model. We are also launched many of the trial projects. We started the trial project for the part-time agents to make sure that we have a steady team over there, too.
The first channel is quite important, but the other three channels are also quite important, because in the next three to five years, the channel deployment in advance is going to support our business development in the longer run. We have the Life Insurance Plus, Service+, and also the Chongqing Plus product. These are the three major products. This is also a product we stick to for the past one to two decades. It can also show the advantage of the diversified product of our integrated finance. What does the Life Insurance Plus product mean? We'd like to make sure that we have the base product along with the customer diversify the requirement. You note that for those one who buy the commercial insurance policies are the target populations within the middle class of the society. What they need is no longer a purely financial guarantee service.
They also need the service. That's why we provide the pension service as well as the medical service. This is what we call the insurance with a human touch. This is the slogan we launched to the market. We provide the best medical resources to support our customer. We have 2,000 in-house doctors within our medical network, and we're also working with top 100 hospitals in China with 20,000 top doctors nationwide. We are also trying to establish the worldwide network, working with the top 35% of the hospitals worldwide to have the direct cooperation with them so that we will be able to provide the primary medical resources to our customer, along with Ping An Good Doctor. Along with the hospital, we're working with Peking University.
You see that for the past few years, we were being ranking as a top one or top two within the MedTech. Generally speaking, we're going to provide the health management, the sub-health management, the chronic disease management, and the severe disease management. For example, regarding diabetes, we already have 300,000 patients. They are leveraging our tools to manage their condition. After three months, the patient's glucose has been improved by 30%-40%. These are already included into our Health-plus product. We are talking about the senior well-being product, and you probably know that around 90% of the service need to be delivered with a door-to-door service, 7% for community service, and 3% for hospitalized service. Regarding senior well-being, it's no longer a purely retirement solution. We call it a new beginning internally.
You can say that the centralized senior well-being service, we don't want to do it in the suburb of the city. We want to do it in the downtown area. That's why in Shenzhen, we'd like to launch the premier senior well-being services only 5-10 minutes away from the downtown area within the local community. The second part is a door-to-door service targeting the 90% of the senior customers we have. In H2 of this year, we're also going to provide and launch some service regarding the door-to-door scenario. Around 90% of the elderly, they like to stay- at- home. They are pretty healthy. They probably only have some chronic diseases. We would like to leverage our med resources and our technology resources to make sure that the patient, when they are home, they could be monitored within their home environment with intelligent device.
We also provide medical consultation or consulting service from the remote mode. We believe this would also be a breakthrough we can make in the commercial policy stage. What we provide is the product plus medical resources plus the senior well-being service.
The second question. Let's welcome someone from the Hong Kong venue. Please press one and the star to raise your question. Let's welcome [Vivian from Ostak].
Good morning. I'm [Vivian from Ostak]. I'd like to ask you a question. For the whole industry in H1, we see that NBV growth is somewhat being reduced. How would you like to comment on the H2 performance? Regarding investment. Because of the COVID-19, the share price being fluctuated. How would you like to invest on the NBV performance and also what's your outlook on NBV for H2 of this year?
Maybe I will take your first question, and we'll have Timothy to answer your question about investment. When it comes to NBV, you see the first half NBV slowdown was due to two factors. It is due to product structure, because in Q1, there has been more saving type of product compared with last year. It is coming from a short-term adjustment of product mix. It has to do with what I talk about the agency transformation. In that transformation, some of the low quality were being swapped out. Overall, headcount has been smaller. These are the two reasons that contributed to first half performance. When it comes to the outlook, now the agency channel for Life has been tough. It is not just because something we just have to put in writing for plus three.
It is difficult because we have to change people in a number of hundreds of thousand. Not all of them can be of very high quality. For those of you in the media, if you refer to slide 38, we have the three level of agents on slide 38. Let me talk about why it is so difficult. We have three levels. The first level is what we call the high performers. The high performers are basically the 20/80 rules, 20% contributed to 80% of the business. Those are pretty robust and growing when it comes to their income. They are 4x or 5x higher in terms of income comparable with the social average salary, and the productivity continued to improve at the same time. There are two reforms.
First of all, we want to make sure these high performers and potential agents can be enabled by digitalization so that it can become larger and get more income. You can see the digital reform, as we have shown you some number of new pilots. After six to nine months, the productivity per person was up by 30%, and also 1.3x-1 .5 x higher of calls and visits. The second difficulty is the ordinary agents and new agents, because we have to streamline and also improve quality to attract more high-quality agents. Some of the poor performers, they need to be replaced. That was the difficult part because we will continue to see some attrition because we have been keep letting some of the poor performers go. Also we have a high-quality program, which is called Excellence+ program.
This year, the life insurance market was losing its appeal in the labor market. Our Excellence+ program, which is now being piloted in five cities. They are doing well, and we have been seeing 30% of the new recruits are eligible for Excellence+. What does it mean? We are adopting a more stringent screening criteria: has to hold a college above diploma, several years experience, 25-35 years old, and have been through four interviews. For the first three months, these allowances and subsidies, because they are taking risk, we allow for some allowance for the three years so that they can switch over. We have stable training program.
Usually, in the past, we have a week or two weeks. Now we're offering three months of training program so that we have the new outlet managers who are showing them what to do in the first three months. They are learning how to sell to someone you know, they're selling to someone you don't know. After the three months of Excellence+, Excellence+ + program, which is being piloted. Those are the key to the reform. The reason I said so much, that's because a lot of people have been asking me, what is the NBV outlook in the second half? This is a math question. That depends on how many quality recruits that we get, how many poor performance that we let go. It's all coming from the numbers.
The inflow of high performers will be slower, so the number is going to be smaller, but the quality is going to get better. When we bring these people on board, they take 12- 18 months of training. Their quality is really equivalent to other industries. We say, this is a three-year reform. We're talking about a three-year program. I hope you will measure our success, not just on a monthly and quarterly basis, but you should look at it on the three-year horizon. We are confident that next year, this model is going to presenting some of the outcomes gradually.
When it come to investment, let me briefly address your question. You talk about second half of the year, and there might be market volatility. We feel the same.
In the second half, when it come to financial market or the financial assets, we can see there's a lot of volatility ahead. Actually, we can identify some investment opportunities. Let me start with the macro. When it come to macro picture, this year is going to be a year of recovery after the COVID last year. There's a unbalanced recovery after the pandemic. By unbalanced, I mean there is a different speed of recovery from country to country. China was the first in and first out. China was leading recovery. Europe and U.S., they were still recovering now. They might pass the recovery phase soon. By the end of this year or next year, it was said there could be tapering. With that in mind, the financial market volatility is inevitable.
In China, we can summarize what happened in China with nine Chinese characters to sum up the future macro policy. First of all, stabilizing monetary policy, tightening credit control, and also expanding. Well, in terms of monetary policy, we believe it's going to accommodate the liquidity demand in the market to make adjustment accordingly. It's going to be guided by the liquidity demand in the market. When it come to credit, it's going to be tightening on credit. On fiscal, will be expansionary. The government is going to be expanding infrastructure, local bond issuance. There's going to be some economic growth coming from the fiscal expansions. There are a few things to watch out for. First of all, the COVID pandemic might come in waves. We are now looking at the third wave. We have been carefully monitoring those outbreaks. Secondly, inflation could be higher than expectation.
We have to be wary of the inflation. In terms of freight cost or raw material cost, they remain elevated. Inflation could be higher than expectation. The third point is the global assets remain inflated. The European stocks and bonds, we have to be careful of any bubbles and what those bubbles might mean for Chinese economy. We have to be following the credit risks. In different industries and sectors, there are different credit risks and also liquidity risks. What are the economic impacts? Notwithstanding, Ping An have been a long-term investor. Short-term volatility is not going to sway us from our long-term strategy. In our long-term strategy, we focus on three areas. First of all, we will continue to extend our asset duration. Asset liability duration gap will be further narrowed.
In the past few years from 2013, we have been taking the approach to extend the duration and adjusting to higher and longer duration assets. The gap of asset liability, a few years ago it was eight years, but end of last year is only more than four years. We have really narrowed the gap. This will help us to withstand the cross-cycle risks. Now secondly, we're going to make adjustment to our portfolio structure as pertaining to economic structure. Based on our portfolio is a bit more overweight on bonds and more overweight on capital market. The yield will be on the lower level. With this opportunity, in the future, we will gradually make adjustments to the dividend rental-paying assets. For those assets could include office building, infrastructure, apartments, public housing, industrial parks.
Those are income-generating assets, which is a good match for the long-term liability for insurance funds. Last but not least, we are going to generate more revenue streams whereby we are going to make adjustment to our structure, in terms of the investment of funds, FOF, MOM. We'll gradually expand our investment in those areas so that we can capture some of the short-term structural opportunities in the market. Finally, for the current assets at hand are pretty stable and robust. Even though in the first half we were being impacted by the impairment loss from CFLD. We have CNY 1.3 trillion of bonds and financial assets, and the revenue post-tax is CNY 510 million, which is higher than the embedded value yield assumption, which was 5%. The remaining maturity was 15.3 Years. That's actually longer than the 14.1 year on the liability side.
That is really a safety cushion. In the past, we have invested in the high dividend stocks. The high dividend stocks have been providing a dividend return, which is significant. Accumulation is already north of CNY 45 billion. Every year, our net investment return, they are making a contribution. Right now, our investment portfolio has strong monetization. For the short term, we can provide a very good liquidity. Even in extreme conditions, we can monetize those assets. For the current portfolio at hand, it remain very robust and resilient, safe. In terms of investment strategy, in short, there could be short-term volatility, we remain committed to long-term investment. This actually provide us with a better opportunity for long-term investment.
Next question come from the lady sitting in the middle of the room.
I'm from First Financial Daily.
Now, what about the restructuring of Founder Group? When it comes to medical resources, what does Ping An plan to do with those medical resources from the restructuring?
Let me start with the progress. For the medical resources, how does resources be connected with the insurance? I will leave it to Jessica. Now, at end of January in 2021, we won the bid, and we signed a contract in end of April. In June, there was a judicial assignment. In August, the antitrust review was completed. We officially took over Founder Group, which is contained one plus four. Not the traditional group of founders. We are taking over one plus four, which are the insolvency entities. The remainder was in the trust portfolio. Also, I like to make a special point to the media, like Ping An got involved in the Founder Group restructuring.
It was for the purpose of synergy from medical resources to build Ping An's unique financial insurance services, which is heartwarming. Founder Group's medical resources are in very short supply in the market. They are in high degree of scarcity. A second point that I want to deliver to you is, now, going forward, we will retain medical and other segments that's related to our core business. The other portions are now being transferred or assigned or sold to the market at market price.
Thank you.
Coming next, we'd like to welcome another question from the online channel, please. No questions from the online channel? Great. If not, let me get a question from SSE e-interactive, a platform of Shanghai Stock Exchange. The question is that, for the past few years, Ping An made a lot of investment in technology, but how technology further enhance the value of Ping An? Thank you.
For technology, it actually help to enhance the value in three perspective. First of all, we have the tech to empower the finance, and also we have the ecosystem to empower the finance, and also technology to empower the development. First of all, technology empower finance, no matter from the promotion and from work efficiency improvement and from the risk control perspective.
You know that in banks, in our insurance and investment side, we have already shown you many of the use cases regarding the technology empowerment. You can see that AI-supported sales is already more than CNY 100 billion, and also the AI-based re-collection service also help to collect more than CNY 100 billion. We also have the Smart City auto, as well as the medical four ecosystem together. In the past, we're trying to further extend the coverage of those ecosystem. We can actually improve the customer acquisition and the customer loyalty. For the customer acquisition, for the past 5.5 years, and around 35-36 financial customers are coming from our four existing ecosystem. As Mr. Xie and Jason mentioned just now, the integrated finance and our ecosystem advantage are there.
They can help to reduce the customer acquisition cost. Regarding the customer stickiness or customer loyalty, around 60% of our financial service customer are the one who use at least one of our product. Their AUM, the number for the product, or their retention rate is always more than one time . You can say that technology really help to empower our ecosystem and then to empower the finance. Another point is technology to empower the development. I think many of the media friends pay attention to our technological advancement. It's really not easy. For the past few years, we incubate a few technological companies. They jointly contribute CNY 90 billion of the revenue and CNY 10 billion of the net profit. The net profit being up by 84%, again, in H1 of this year, accounted for 7.6% of the operating profit we have.
In the near future, we are still very confident on how technology support our future development.
Thank you. Let's welcome another question from the online channel. Thank you. The second question comes from He Shusi from [Asian Investment].
I'm Shusi from AsianInvestor. My question is regarding investment. Talking about the environment in H2 would be full of volatilities, and you're probably going to allocate some of the assets to the office buildings and the rental apartment business. How much they're going to account for our total investment asset? Secondly, regarding the sustainable investment, and it seems that in H1 of this year, you have already disclosed some plans to be a part of the de-carbon strategy of the government. Do you also have some new investment plan in H2 of this year? If you have, then which industry are you going to invest in?
Is it in the social domain or environmental protection domain? Thank you.
Let me answer the question in this way. Regarding the first question, is talking about the investment. Just now, we mentioned about the fixed asset. You can say that for every year, the investment on the fixed asset is around CNY 50 billion. Every year we have more than CNY 500 billion need to be invested again on yearly basis. According to our assets deployment plan, within the three years per year, we're going to have CNY 50 billion being invested to further extend our fixed assets. You need to also pay attention to one more point. We are not doing the asset deployment for deployment reason.
We still need to select the high-quality asset to invest in, especially those assets that need to be in the primary location in the tier cities with a very good property service provider. This is a very stringent assessment criteria for us to assess whether the project is coming into our pocket or not. In the market, it already takes some time for us to truly assess whether a project is qualified or not to be invested by us. You see that according to the news, we invested in six office buildings operated by [CapitaLand], actually it takes very long time for this negotiation. For that six office buildings, its occupancy rate is more than 90%, its ROI is always more than 5.5% on annual basis. I mean, the rental fees ROI.
Another party is [CapitaLand] is a worldwide well-known property investors and office building operator. You note that this is also some of the choice we already made in this industry. The second question is regarding the dual carbon goals made by the government. This is a very good question. You see that besides seeking for the assets that can be retained with the rental fees as income, we should also take the opportunity in the market, especially with the emerging economic trend. There will be some assets, for example, the so-called long-term assets. I think the carbon emission is just one part of it according to our statistics. We have around CNY 700 billion investment being made in the so-called emerging economy domain or projects. Some funds has already been invested there.
In the near future, in the emerging economy domain, there are so many new options for us. For example, new energy, environmental protection, and also energy saving, carbon neutralization, manufacturing industry, industrial upgrading, healthcare. I think these are the industries within the new emerging domains. They are also going to be the opportunities we can invest in the near future.
Let me say a few words. I feel for the market. It seems that there are some misunderstandings from the market to our investment in the real estate market. In the insurance funds, we have trillions of the insurance funds. I'd like to say that real estate market is also part of the Chinese economy, and we, when we make the choice, we deploy certain part of our investment into the fixed asset domain. This is a very important part of our investment portfolio.
The second point is that we will always stick to the principle, housing for living rather than speculation. You note that for Ping An, when we invest in the real estate market, we are there to collect the rental fees from the real estate product rather than to do some speculations there. You can say that a very stable income from the rental fees of the real estate project would be a very good part for our deployment. We are working on the well-being apartment, logistics infrastructure, office building, and urban renewal project. Hope that all the media friends can clearly understand why we're investing in the real estate market. Timothy also mentioned the investment we made in the real estate market, the multiple ratio criteria and data and indicators. I'd like to especially make this point to our media friends.
Due to the time reason, we'd like to welcome the final question. The gentleman sitting in the back, please.
Thank you. I come from a China Securities Newspaper. I have two questions. The first question, it seems that our life insurance business was under great pressure, but your operating profit has still made a double-digit steady growth. I'd like to know what's the drivers behind this wonderful scorecard of our performance. My second question is that in the interim result, you made a lot of provision over the impairment, especially on the Fortune Land Development Company. How long it's going to be sustained? Thank you.
Thanks for the question. The first question is regarding the driving factor of the operating profit. You can see our operating profit was up by 10% in H1 of this year. I think I'm also going to touch upon the Fortune Land cases.
Fortune Land is an individual investment case, but I mentioned in our report we would like to learn lessons from this case to well improve our risk control management. Excluding Fortune Land impairment provision and excluding the Fortune Land provision, actually, our operating profit was up by 18% rather than 10%, but surely the Fortune Land impairment impacted our operating profit. I think the driving force for the increasing operating profit is because of the integrated finance model we have. In H1 of this year, surely the life insurance NBV is being slowed down. It was under greater pressure. Profitability is being also compromised. For other business lines, including our banks and our investment technology and P&C, they are all growing very fast. They all have at least a 20% growth on the operating profit.
On RoR, they can help to drive up the operating cost for the whole group, and then to compensate the sluggish growth from the life insurance side. Ping An has a very unique model in the financial market, and especially for the past three decades, our integrated finance really can help to offset the volatilities in the market, while at the same time grow our business. It's already been seen in our past three decades track record. This is the first factor I'd like to share with you, and put it in other words. Each business line in certain stage of the history would be greatly challenged, but other business line will also contribute greatly to the profit growth for the whole group. Secondly, you can see our integrated finance business model.
As far as I mentioned, even if we have multiple business lines, our integrated finance, or you can just interpret it more easily. You can actually use the number of the customer multiple, the value from each customer. We are increasing the customer base, while at the same time to make sure that each customer can enjoy more within group product or within group value. In this way, we can further improve the unit value for each customer. That's also an easy interpretation of the integrated finance. We need to further improve the customer size. You know that we leverage the online, offline customer acquisition, while at the same time within our customer ecosystem, we will also make sure that our online customer was also being translated into the offline customer.
When customer owns multiple products from our group, they're going to contribute more on the profits to us, and the customer loyalty will also be greatly improved. This is the integrated financial model, and this is also the reason why we can still perform pretty well with a double-digit growth in the operating profit, even if our life insurance business being greatly challenged in H1 of this year. For Fortune Land investment, the exposure in this year has already been taken care of by the increasing provision, and it's already more than 60% of our total exposure. Especially with the support from Hebei provincial government. [Also], we are working with Fortune Land Development Company to help to take the risk mitigation work as a part of the creditor committee and will also proactively take part in the work for the risk mitigation.
We will also in H2 of this year to keep an eye on the situation of the Fortune Land Development. If they have a relatively better performance, we don't need to make further provisions. If the situation got worse, we're going to further continue to see whether we need to make more provisions for the Fortune Land Development case. Jointly speaking, actually, the provision we made in H1 of this year is already 60% of our total exposure.
Thank you very much for all the questions from our new media friends. If you have any further question, please approach to our PR team.
Ladies and gentlemen, here comes to the end of this interim result announcement. Thank you.