Good morning. Good day. Dear friends from the media, thank you to the 2021 interim results announcement of Ping An Group. I'm Board Secretary, Sheng Ruizheng of the company. Due to COVID pandemic, our conference will be held on-site, webcast and teleconferencing.
We're joined by Mr. Ma Ming Zhe, Chairman of the Company Mr. Xiaoying Ling, President, 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 MIMEDIA, good morning. Welcome to the 2021 interim results announcement of Ping An Group.
Thank you for your long standing interest and support to the company. I'd like to take you through the business performance in the first half twenty twenty one. Please turn to Slide 5. In the first half of the year, the domestic and the international economic environment remain 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 6, let's take a look at the operating profit contribution from a customer point of view. In the first half, the retail business, OPEC grew by 7%, and which accounted for 85% of the total OPAC. You can see we have newly increased 16,1200,000 retail customers, 36% of which were converted from the Internet users of the group.
That is the result of our ecology empowerment. So integrated financial model continue 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 7 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%. So life insurance have seen a slowdown due to the COVID pandemic, but when it comes to P&C, P&M Bank, Asset Management and Technology Business, therefore all demonstrated strong operating profit growth and that is really showing the diversification efficacy of our integrated financial model. If we turn to Slide 8, 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, but the life and P and C annualized R and D was still reaching 35% for the other business. They are also in a very healthy levels.
On Slide 9, 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 RMB15.2 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 RMB5.2 billion, which is coming from the downturn of the Treasury yield in the first half. So that was also excluded. And also RMB3.6 billion of management's variance considered by management that's mainly coming from the convertible bonds of Bluefax 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. Mainly it was really mainly coming from the lowering of the operating variance and others.
That's mainly due to the economy, industry and our and also the lowering and slowdown of the new business value, which is weighing on the life and health business. And so 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%. So 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. However, we remain confident about the long term outlook of the Chinese life insurance market and will continue to advance the DPI Life 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. So interim dividend was up by 10% to per share. In cash, on the right, at the end of the first half, the free cash of the parent company remain north of RMB50 1,000,000,000 which is in a healthy level. On slide 14, in addition to paying out an interim dividend, we plan to we plan for a RMB5000000000 to RMB10000000000 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.
So this repurchase will not have material negative impact on the company's operational development. And these market cap management measures, which is a full demonstration of our confidence in the long term outlook of Ping An. On slide 15 is about is 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 CBRRC was working on the Phase II rules on CROS. The revision has not been officially released.
They are still seeking industry feedback. But 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 CROS Phase 2 closely for timely disclosure. On Slide 16, this is the investment on insurance funds. In terms of the investment portfolio, continue to grow.
In terms of allocation, we'll 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 an 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 interest in. Our investment in China Fortune Land Development, which suffer from the debt crisis.
So we have made adjustment, including impairment provision and valuation adjustment to investment related to CFLD in the first half. The adjusted asset totaled RMB35.9 billion, of which RMB14.4 billion were equity and RMB21.5 billion debts. So due to the higher provision from CFLD, investment yield on the portfolio were under pressure. But as a whole, provision for CFLD have been very prudent. And even though CFLD, that crisis was an 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 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 out our positive impact. We have been valuing ESG and communicating our efforts in ESG and gaining recognitions, including many awards, including we Pina was rated A in the MSCI ESG rating, which is leading in the world. On slide 20, this is a 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. And at the same time, we will also be awarded with other titles and the names. That's all for the financials. Later, we also provide you the technology and the integrated finance service information slides.
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. And the same as what we used to do, we're going to have the on-site questions and the online questions. And for each of the audience who raise a question, please help to identify your name and the institution you represent. Due to the time horizon, no more than 2 questions for each one.
So let's welcome this lady sitting in the front row, please. Just wait. We pass you the microphone. I'd like to ask management and team how you're going to comment on the performance of H1. Are you happy with it?
And there are so many reforms on the life insurance. What's the updates? And when shall the reform result be same? Thank you. And I say that for the general comment of the H1 performance, I think I have four sentences to conclude my fully.
First of all, we have a robust operation. You can see that our operating operating was 10%, but our the annualized ROE is still being maintained. And we're also very confident of our future development. We're going to launch a 5,000,000,000 yen to 10,000,000,000 yen repurchasement. And our payout ratio is also being up by 10%, while at the same time we're going to have more equity being held by our management team.
And my second sentence is that we have obviously see the advantage of integrated finance. On one side, our revenue structure has been more stabilized. For the past 2 years, there are many challenges for the life insurance product. But you can see our PC and the wealth management done by the banks. And even if technology also made great contribution to the profit and revenue, so integrated finance enjoy pronouncing 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 for customer. We also believe in the near future in China there will be more serious competition in the financial market and the whole industrial market is also going to be quite challenging. So 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 and C payment, the payment speed has been further accelerated. By leveraging artificial intelligence, artificial intelligence being widely deployed for the risk management, empowerment of the team and we already have statistics to show how the improvement be made by the technology. But at the same time, technology in H1 of this year also contribute RMB 6,240,000,000 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, 4 channels and 3 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, but 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, and you can also see that reform has been greatly done. We'd like to build a so called brand new balance sheet, and you can also see great achievements and advancements being made. So 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. And 4th comment, proactively do the reform and it's already on the right track. Thank you. Thanks, 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. So 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 1 year ahead of our peers in doing the life insurance reform. And then what should we do within this reform? We have a so called 4 plus 3 strategy, 4 channels and 3 products. 4 channels means the 1st channel or the most important channel is the individual agent.
How can we make sure that we can improve the turnover rate of our hands account and then to build a so called 3 high team with high retention, high professionalism and high contribution. We believe we at least need 3 years to accomplish this reform. We started it since the beginning of 2020. But ultimately, we're going to build a high quality rate individual agents team. And now those three channels 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 great deployment over the communities. And we have 27,800,000 the part line agents. We hope that we can build a grade in each CD. Within each grade, we're going to cover certain number of the customers by appointing 1 individual part time agents to be there. So 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 2nd channel we're going to do and it's going to have a steady growth. And the 3rd channel is regarding the bank insurance. We upgraded our bank insurance structure, make it into a primary channel, also working with the wealth management service we provided. And the 4th 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 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 3 channels are also quite important because in the next 3 to 5 years, the channel deployment in advance is going to support our business development in the longer run. We have the Life Insurance Plus, Service Plus and also the Jumping Plus product. These are the 3 major products.
And this is also a product we stick to for the past 1 to 2 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. Note that for those who buy the commercial insurance policies, all 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. So that's why we provide the pension service as well as the medical service. So this is what we call the insurance with human touch. This is a slogan we launched to the market.
We provide the best medical resources to support the IRR customer. We have 2,000 in house doctors within our medical network. And we are 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. And along with the hospital, we're working with Peking University. You see that for the past few years, we have been ranking as a top 1 or top 2 within the med tech.
So jointly speaking, we're going to provide the health management, the subhealth management, the chronic disease management and severe disease management. For example, and severe disease management. For example, regarding the diabetes, we already have 300,000 patients. They are leveraging our tools to manage their condition. After 3 months, the patients' group cost has been improved by 30% to 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 door to door service, 7% for community service and 3% for hospitalized service. Regarding the senior well-being, it's no longer a purely retirement solution. We call it a new beginning internally.
So you can say that the centralized senior well-being service for We don't want to do it in the suburb of the city. We want to do it in the downtown area. So that's why in Shenzhen, we'd like to launch the premier senior well-being service only 5 to 10 minutes away from the downtown area within the local community. And the 2nd 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 would like to stay at home. They are pretty healthy. They probably only have some of the chronic disease. So 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 with their home environment with intelligent device. We also provide the medical consultation or consulting service from the remote mood.
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 senior well-being service. The second question, let's welcome someone from the Hongkeng venue. Let's welcome Vivian from OFSTAC. Good morning.
I'm Vivian from OFSTAC. I'd like to ask you a question. For the whole industry in H1, we see that NBV growth is somewhat being reduced. So how would you like to comment on the H2 performance? And also regarding investment, because of the COVID-nineteen, the share price being fluctuated.
And then 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 2 factors. First of all, it's due to product structure because in Q1, there has been more saving type of product compared with last year. So it's coming from a short term adjustment of product mix. Secondly, it has to do with what I talk about the agency transformation.
In that transformation, some of the low quality were being swapped out. So overall headcount has been smaller. These are the two reasons that contributed the first half performance. Now when it comes to the outlook, now the agency channel for live has been tough. It's not just because something we just have to put in writing for plus 3, it's difficult because we have to change people in a number of 100 or 1000.
Not all of them can be of very high quality. So for those of you in the media, if you refer to slide 38, so we have the 3 level of agents. On Slide 38. Let me talk about why it's so difficult. We have 3 levels.
The first level is what we call the high performers. The high performers are basically the twentyeighty rules, 20% contributed to 80% of the business. So those are pretty robust and growing when it comes to the revenue the income. They are 4x or 5x higher in terms of income compared with the social average salary and the productivity continued to improve at the same time. But there are 2 reforms.
First of all, we want to make sure these high performance and potential agents can be enabled by digitalization so that it can become larger and get more income. And you can see the digital reform as we have shown you some number of new pilots of the 6 to 9 months, the productivity per person was up by 30% and also 1.3x, 1.5x 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. I mean 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 and also we have high quality program, which is called Excellence Plus program.
But this year, the life insurance market was losing its appeal in the labor market. So our Excellence Plus Program, which is now being piloted in 5 cities, they are doing well. And we have been seeing 30% of the new recruits eligible for Excellence Plus. So what does it mean? We are adopting a more stringent screening criteria, has to hold a college above diploma, several years experience, 25 years, 35 years old, and have been through full interviews.
And also for the 1st 3 months, these allowances and subsidies, because they are taking risk, we allow for some allowance for the 3 years so that they can switch over. And also we have stable training program. Usually in the past we have a week or 2 weeks, but now we're offering 3 months of training program so that we have the new outlet managers who are showing them what to do in the 1st 3 months. So they are learning how to sell to someone you know, they're selling to someone you don't know. So after the 3 months of Excellence Plus, Excellence Plus Plus 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 MBV 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. So it's all coming from the numbers, because we're going to well, the inflow of high performers will be slower. So the number is going to be smaller, but the quality is going to get better.
So when we got we bring these people on board, they take 12 to 18 months of training. So their quality is really equivalent to other industries. So we say this is a 3 year reform. We talk about 3 year program. So I hope you will measure our success not just on a monthly and quarterly basis, but you should look at it on the 3 year horizon.
We are confident that next year, this model is going to presenting some of the outcomes gradually. When it comes to investment, let me briefly address your question. You talked about second half of the year and there might be market volatility. We feel the same in the second half when it comes to financial market or the financial assets or I mean, we can see there's a lot of volatility ahead, but we still actually we can identify some investment opportunities. So let me start with the macro.
When it comes to macro picture, this year is going to be a year of recovery after the COVID last year, but there's an unbalanced recovery after the pandemic. By unbalanced, I mean there's a different speed of recovery from country to country. China was the 1st in and first out. So China was leading recovery. Europe and U.
S, they were still recovering now, but they might pass the recovery phase soon. So by the end of this year or next year, it was sad that could be tapering. So with that in mind, the financial market volatility is inevitable. In China, we can summarize what happened in China with 9 Chinese characters to sum up the future macro policy. 1st 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.
So it's going to be guided by the liquidity demand in the market. When it comes to credit, it's going to be tightening on credit. On physics, physical will be expansionary. The government is going to be expanding infrastructure, local bond insurance. So there's going to be some economic growth coming from the physical expansions.
So 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 3rd wave. We have been carefully monitoring those outbreaks. Secondly, inflation could be higher than expectation.
So we have to be wary of the inflation. I mean in terms of freight cost or raw material cost, they remain elevated. So 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 the lowest bubble might mean for Chinese economy and also we have to be following the credit risks.
In different industries and sectors, there are different credit risks and also liquidity risks and what are the economic impacts. So 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 3 areas. First of all, we will continue to extend our asset duration.
Asset liability duration gap would 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. And the gap of asset liability, a few years ago, it was 8 years, but end of last year is only more than 4 years. So 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 pertain to economic structure. Based on our portfolio is a bit more overweight on bonds and more overweight on capital market and the yield will be on the lower level. So 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. So 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, MOF, MOM. So we'll gradually expand our investment in those areas so that we can capture some of the long sorry, capture some of the short term structural opportunities in the market. So 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, but we have $1,300,000,000,000 of bonds and financial assets and the revenue post tax is $510,000,000 dollars which is higher than the embedded value you assumption which was 5%. The remainder maturity was 12.3 years sorry, 15.3 years. That's actually longer than the 14.1 year on the liability side.
So that is really a safety cushion. Now in the past, we have invested in the high dividend stocks. The high dividend stocks have been providing a dividend return, which is significant. In accumulation, it's already north of RMB45 1,000,000,000 already in accumulation. So, every year, our net investment return, they are making a contribution.
So right now, our investment portfolio has strong monetization. So for the short term, we can provide a very good liquidity. Even in extreme conditions, we can monetize those assets. So for the current portfolio at hand, it remains very robust and resilient and safe. In terms of investment strategy, in short, there could be short term volatility, but we remain committed to long term investment.
This actually provide us with a better opportunity for long term investment. Okay. 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 group medical resources, how does resources be connected with the insurance? I will leave it to Jessica. Now at the end of January in 2021, we won a bid and we signed a contract in end of April.
In June, there has a judicial assignment in August. The antitrust review was completed and we officially took over founder groups, which is contained 1 plus 4, not the traditional group of founders. We are taking over 1 plus 4, which are the insolvency entities. The remainder was in the trust portfolio. And also I'd like to make a special point to the media like Ping An get involved and did a fund group's restructuring.
It was for the purpose of synergy from Medical Resources to build Ping An's unique financial insurance services, which is heartwarming. And 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 and 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 E Interactive 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 3 perspectives. 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 environment. First of all, technology empower finance. No matter from the promotion and from working efficiency improvement and from the risk control perspective, you know that in banks, in our insurance and investment side, we have already showed you many of the user cases regarding the technology empowerment.
And you can see that AI supported sales is already more than RMB 100,000,000,000 and also the AI based recollection service also helped to generate revenue of more than also helped to recollected more than RMB 100,000,000,000. And 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. And for the customer acquisition for the past 5.5 years and around 35 to 36 financial customers are coming from our existing ecosystem.
As Mr. Xie and Jess mentioned just now, the integrated finance and our ecosystem advantage are there. They can help to reduce the customer acquisition cost. While regarding the customer stickiness or customer loyalty, around 60% of our financial service customer are the ones 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.
And you can say that technology really helped to empower our ecosystem and then to empower the finance. And 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 speaking contribute JPY 90,000,000,000 of the revenue and JPY 10,000,000,000 of the net profit. And the net profit being up by 84%, again in H1 of this year, accounted for 7.6% of the operating profit we have. And 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 Shoujo from Asian Investment. I'm Shoujo from Asia Investor. 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. And how much they are going to accounted for our total investment asset? And 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 dual carbon strategy of the government. Do you also have some new investment planned 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.
And you can say that for every year, the investment on the fixed asset is around JPY 50,000,000,000 because every year, we have more than JPY 500,000,000,000 need to be invested again on a yearly basis. So according to our assets deployment plan and within the 3 years per year, we're going to have RMB 50,000,000,000 being invested to further expand our fixed assets. But 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.
And especially those assets that need to in the primary location in the quarter cities with very good property service provider. So this is a very stringent assessing 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 assessing whether a project is qualified or not to be invested by us. And you see that according to the news, we invested in 6 office buildings operated by Kaido. And actually, it takes very long time for this negotiation.
For that 6 office buildings, its occupancy rate are more than 90%, and its ROI is always more than 5.5% on annual basis, I mean, the rental phase ROI. And the another part is Kaidou. And Kaidou is a worldwide well known property investors and office building operator. So you note that this is also some of the choice we already made in this industry. The second question is regarding the dual carbon strategy 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. And 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 RMB 700,000,000,000 investment we made in the so called emerging economy domain or projects.
So some funds has already been invested there. But 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. And the second point is that we will always stick to the principle housing for living rather fell speculation.
You know 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 from to do some speculations there. And 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. So hope that all the media friends can clearly understand why we are investing in the real estate market. And 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 China Security 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. And my second question that in the interim result, you made a lot of promotion over the impairment, especially on the Fortune Land Development Company. And 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'd like to learn lessons from this case to well improve our risk control management. Excluding in Fortune Land empowerment provision and excluding the Fortune Land promotion, actually our operating profit was up by 80% 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. But for other business lines, including our banks and our investment technology and P and C, they are all growing very fast. They all have at least 20% growth on the operating profit. All in all, 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.
So PION has a very unique model in the financial market. And especially for the past 3 decades, our integrated finance really can help to offset the fatalities in the market, where at the same time grow our business. It's already been said in our past 3 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 lines were also contributed greatly to the profit growth for the whole group.
And secondly, you can see our integrated finance business model. As far as I mentioned, even if we have multiple business lines, but our integrated finance, you can just interpret it more easily. We have 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. This way, we can further improve the unit value for each customer.
And that's also an easy interpretation of the integrated finance. We need to further improve the customer size. So you know that we leverage the onlineoffline customer acquisition, where at the same time within our customer ecosystem, we will also make sure that our online customer could also be translated into the offline customer. When customer owns multiple product from our group, they are 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 4th chain land investment, the exposure in this year has already been taken care of by the increasing proportion and is already more than 60% of our total exposure, especially with the support from Hebei Provincial Government. Alone, we are working with Fortune Land Development Company to help to take the risk mitigation work as a part of the creditor committee and we are also proactively take part in the work for the risk mitigation. And we are also in H2 of this year to keep an eye on the situation of the Fortune Land Department. If they have a relatively better performance, we don't need to make further provisions. But if the situation got worse and we're going to further continue to see whether we need to make more provisions for the 4th chain land development case.
But jointly speaking, actually, the promotion 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 questions, please approach to our PR team. Ladies and gentlemen, here comes to the end of this interim result announcement. Thank you.