Welcome to our company's 2024 interim results announcement. I'm VP of the company, Gong Xingfeng. I'm the host of the meeting. First, I'd like to introduce the management of the team. They are Chairman, Mr. Yang Yudong, President, Mr. Zhang Hong, Vice President, Mr. Qin Hongbo, Vice President, Mr. Wang Lianwen. In addition, we are honored to have invited the company's independent directors, Ma Yiu Tim, Lai Guanrong, Xu Xu, Guo Yongqing, to participate in the meeting online. The conference is divided into two parts, presentation and Q&A session. We will provide translation for investors, analysts, and friends from the media. If you want to ask questions during the Q&A session, please press star key and the number one on your list. Now, let's start the presentation. Please welcome Mr. Yang Yudong to introduce the company's 2024 interim results.
Dear investors, analysts, friends from the media, welcome to attend our company's 2024 Interim Results Announcement. Thank you for your long support of our company. First, I'd like to introduce the reform and development performance of the company in the first half. In the first half, the company adhered to high-quality party building to lead high-quality development, build a learning and a service-oriented organization, and carry out a professional and market-oriented reform, and achieve initial results in high-quality development, focus on main business and achieve steady progress. NBV, revenues, and net profit all grew. NBV is up by 57.7%. Revenue is up by 13.6%. Net profit is up by 11.1%. Strengthen asset management and enhance investment capabilities. Investment assets exceeded CNY 1.4 trillion. Annualized total investment yields was 4.8%.
Annual comprehensive investment yield was 6.5%. The company managed entrusted assets over 550 billion CNY from third-party business. Opening a new era in team building, launched Xin Generation, Xin Generation team building project, built a multi-level customer service circle and a heartfelt service, service. Of course, deeply technology empowerment and practice the concept of digital finance, integrated the business development strategies, drove business model innovations through digital transformation. Attach great importance to risk control, improve system, consolidated the bottom line on preventing risk, and enhance the ability to resilience, especially in the service empowerment sector. As a state-controlled financial institution, we actively serve our national development strategy, with focus on five major areas. To fulfill our state-owned enterprise responsibilities, by the end of the period, the company supported inclusive finance, participating in 46 policy-oriented medical insurance, covering over 46 million people.
Supported real economy, investing CNY 170 billion to promote coordinated regional development, up by 9.8%. Supported rural revitalization, assistance fund reached CNY 10.4 million, and put in place 21 targeted assistance projects. Supported green finance, put CNY 90.9 billion to support green industries. Supported public welfare. Public welfare activity for sanitation workers benefited over 5 million people, with total payment of CNY 38.23 million. The company entered a new era of sales team building, and the same plan was officially launched, which was committed to building a highly qualified financial talent team, a professional and a high-quality career development platform, and a long-term efficient sales management team. First, promote the implementation of Xin Generation. Provide comprehensive sales support for development of high-performing team. Upgrade the company training system.
Promote consultant-led style recruitment training, five-plus certification training, excellent new employee, and high-performance training. Strengthen institutional guidance, refine policy mechanism, achieve upgrading income distribution system, career development path, and take institutional management to a new level. Build customer-centric, heartfelt service system. The company has its customer-centric concept, upgrades the brand feature of fast claim settlement, excellent service. Claims settlement is fast and of good quality. A total of 2.36 million claims were handled. And second, our future service is excellent. We continue to build Xinhua's high-net-worth system. We made tailor-made service for customers and their families. We promote the Xinhua home-based health service system to help the inconvenienced elderly with daily care.
The company is also promoting Xinhua Yi, middle and high-end customer service system, and the Xinhua Home health elderly care service system, accelerating the construction of the service ecosystem. Thirdly, service is quite smart. Data and technology empower this customer service. Xinhua Insurance, our official WeChat account, serves 13.21 million users and witnessed 76.16 million visits. Now is the first part. Let's move to the second part, the operation of our company. First, the NBV maintained fast growth. The company firmly took the road of universal high-quality development, and the business has been steadily advancing. We achieved new business value of CNY 3.9 billion, up by 57.7%. NBV margin based on first year premium was 18.8%, up by 12 percentage points. In addition, investment performance significantly improved.
The company proactively and accurately grasped the opportunities in the stock and interest rate markets, focused on value investment and long-term investment, and achieved good investment returns. The company's investment assets exceeded CNY 1.4 trillion, up by 7%. The total investment income was CNY 31.6 billion, up by 43.3%. Comprehensive investment income was CNY 42.6 billion, up by 51.8%. Profitability growth... Net profit was CNY 11.1 billion, up by 11.1%. ROE was 11.2%, up by 2.53%. The company intends to pay interim cash dividend of 0.54 CNY per share, totaling 1.6. The company thoroughly implemented the major experience and development of the regular premium, accounted for 83.3% of FYP of long-term insurance.
Regular premium with payment period of ten years accounted for 11%, up by 5.8 percentage points. The renewal premium accounted for 78.6% of total premium, up by 12.3 percentage points. The premium income remained stable. Our premium income remained stable. Regular premiums with payment periods of ten years or more grew steadily. Renewal premiums remained a solid contributor. The company realized GWP of CNY 998.8 billion. Regular premium with ten-year payment periods of ten years or more reached CNY 2.04 billion. Renewal premium reached CNY 77.7 billion, up by 8.6%. For the individual channel, the core business grew. Individual channel focused on value enhancement and business structures optimization, and accelerated the long-term and diversified transformation of products. FYP of long-term insurance was CNY 0.5 billion, up by 18%.
FYRP of long-term insurance was CNY 8.3 billion, up by 4.1%. Accounting for 97.3% of FYP, up by 2.1 percentage points. The individual channel allocated resources to promote individual insurance. First, focus on value. Maintain growth in regular premium business. Figures to promote long-term business transformation. Practice the concept of high-quality development. Accelerate the high-performing team building. Introduce new base flow. Focus on recruitment. Integrate the company's superior resources. Launch a Xin Generation plan. Strengthen base management. Promote steady growth of core business. In terms of team building, promote the high-performing oriented transformation. Focus on effective re-recruitment and emphasize quality and training. The company has a total of 139,000 agents, with an average high performance rate of 12.5%, up by 2.3 percentage points.
Average monthly productivity is CNY 10,400, up by 28.3%. The bank insurance channel layout is optimized. FYRP of long-term insurance business is CNY 7.1 billion, accounting for 71.7%, up by 34.3 percentage points. Renewal premium was CNY 18 billion, up by 58%, accounting for 46.4% percent of the China premium, up by 33.5 percentage points. Bank resources in China improve professionalism of the team, optimize the customer management tool, optimize channel layout, rationally distribute the core channel, key channel, and the potential channels, and continuously improve institution layout, strengthen customer management. Focus on customer demand, explore customer management model, and meet diversity of customer needs, improve product layout, continue to enrich product supply, deepen the long-term transformation of the business. Business quality has been enhanced.
The company strengthened the business quality management. The quality improved significantly. Individual channels, 13-month persistence ratio reached 95%, up by 5.8 percentage points. 25-month persistence ratio was 85.6%, up by 6.6 percentage points. Surrender rate was 0.9%, down by 0.2 percentage points. The balanced investment portfolio, the company's investment asset takes fixed. The company followed the philosophy approved in the long term and the value-oriented investment. Regarding the strategic assets, it centers on fixed income assets with long duration and a stable cash flow to meet the requirements of the asset-liability matching, supplemented by balanced active asset allocation. In technical asset allocation, it has dynamically adjusted the structure and achieved certain results. The non-standard investment portfolio with controlling risk, we continue to reduce the size of non-standard investment.
Non-standard investment, as it reached CNY 128.5 billion, a decrease of CNY 28.4 billion, accounting for 8.9% of the total investment assets, down by 2.8 percentage points. Under strict credit and combined requirements, most of the non-standard investment underlying assets are loans and have good credit enhancement measures. The overall risk is controllable. We have adequate solvency margin. The company's core solvency margin ratio was 122%, and comprehensive solvency margin ratio was 225%. Affected by discount REITs, the growth of insurance and investment business, the solvency margin ratio has decreased to a certain extent, but still much higher than the regulatory requirements, laying solid foundation for the sound development of the company. The company embedded value was growing.
Our EV was approximately CNY 268.4 billion, up 7.1%. Value of new insurance business increased 3.6% to CNY 90 billion, adjusted net worth grew 9% to CNY 177 billion. Our stable insurance business operations contributed CNY 16.6 billion, which helped the EV grow by 6.6%. That's the embedded value change analysis. That's the second part, grow value with coordinated development. Next, I will introduce our future outlook and the key measures for the second half. In the second half, the company will embrace tradition and innovation, and continue to release development momentum. First, focus on key business rules, deepen customer-centric, professional, and market-oriented transformation. Stick to institutional management, strengthen systematic and refined management, accelerated execution, strengthen team building and service ecosystem diversification. Comprehensively enhance the company's core competitiveness.
Secondly, enhance product competitiveness. Design, develop products with customer interests at the center. Strengthen product innovation. Launch multiple new products. Improve product supporting capabilities of premium products, and play the leading role of flagship products. Continue to build a learning-oriented service enabled organization. Optimize training system, enrich learning resources, continue to improve the professionalism of the team. Build a professional army, comprehensive upgrade the marketing product. Build an efficient, collaborative, and effective empowered customer service support. Headquarters serve branches, middle and back office serve front office, staff serve agents, and agents serve the customers. The company will be guided by the spirit of the third plenary session of the twentieth Central Committee of CPC. Take the role of financial development and strive to build a first-class comprehensive modern insurance company. Thank you. That's the end of the presentation.
Thank you, Mr. The presentation is simple, but has some key message. Let's move to the Q&A session. Due to time limit, each person may ask two questions. Please let us know your name and company first. Thank you. Marketing team reform. In this June, we have heard some good results for the marketing reform. We have heard the regulator has need to adjust the pricing rate. We would like your measures for the product. Thank you for your question. Thank you for your attention to our marketing system reform. The marketing system is part of the company's strategy. We have three levels. First, it's based on simple plan. We try to build a professional elite team.
We should self-upgrade, upgrade the mechanism and lead the team building, upgrade the service system, upgrade the training system, upgrade the resource system, upgrade the management platform, which all help the team grow. The second level is the company stick to institutional management, which is based on Basic Law. This strengthen our philosophy for team development. We focus on recruitment and training. We place more attention on long-term development rather than short-term development. You just mentioned in the new pricing rate environment, what's our product strategy? We all know that, the whole market is experiencing product shift. We have built a professional team, which is led by our chairman to promote this product shift. It is move forward every prospect of this work steadily. Before the end of this month, we will first shift the traditional products.
Before the end of next month, we will shift to other products such as participating insurance and universal insurance. In this process, we will adapt the whole team and adapt the customers. You just mentioned the pricing rate adjustment. Regarding the influence of the regulators, both the regulators and the whole industry all embrace high-quality development, which is also for the sake of the supply-side reform. All the regulatory measures will help reduce the cost of our liability side. And will narrow our interest risk.
In the future, we have good confidence for the industry's high-quality development. The company has its diversified strategy for products. Universal participating insurance and savings products all will help serve the customers' demand. We have upgraded our system, which the patrons, product plus service. After our chairman came to our company, we promote high-end, middle to high-end, and other categories. With all those measures in place, we believe NCI will be a choice for customers. Under this background, the market in China will be a role model for the steady progress and development. We try to be the leader compared with other peers. We hope to satisfy those investors. Thank you.
Thank you for giving me this opportunity. Can you hear from Orient Securities. Congratulations on the performance for the first interim. All the indicators have grown rapidly. We see the share price grow today, the biggest rise for this year, which all show the confidence for our results.
We see that the performance of the company is sound. Further, we can see the profit growth in the first quarter and second quarter vary, and there's a great difference between quarters. And I want to ask that after employing the new standards, the market is studying the new standards. And, we see that in the first quarter, the profit decreased, but in the second quarter, the profit doubled. And I want to know how can we review and understand the results and, the company's performance? And the second, that we can see that the asset, net asset of the company has decreased and decreased compared with the end of first quarter, which is different from the peer companies. I want the management team to elaborate on that.
How can the company to better balance the asset and liability side, so that the net asset can have a more smooth performance? Thank you for your question. Mr. Gong will answer this question. For the net profit in the first half and the second quarter, we have increased a lot. There is a difference between the first quarter and the first half of the year, and for this question, we think we should have a comprehensive perspective. First is the performance has the investment and the insurance business. These two sides in the first half, the insurance business of the company has grown fast, and we can see into...
In the first half in this year, there is a huge change compared with the previous years, because the product and the margin ratio of the company has increased, and the residual margin released for this year has increased, which has contributed to the growth of the net profit. And also, the pressure of the first, the losses has decreased, and in the second quarter, we have grown very fast. And from the liability side, we can see the CSM has a stable release and the new business has contributed also. And relatively, the investment side has a larger volatile performance, and we can see the total investment yield of the company has greatly improved. And in the first half, we have grasped market opportunities and allocate assets.
Just now, the chairman has talked about that the total investment yield of the company has relatively high performance, and there's a great improvement compared with the first quarter. For the volatility of the net profit, that shows that the company has, in terms of the asset allocation because the net free interest rate had decreased, therefore, the control, the net asset can show we cannot fully cancel the influence of the decreasing rate.
A lot of the asset was calculated as amortized assets, and a smaller proportion was put in the FVOCI debts asset. The net investment asset, the asset with FVOCI will have a higher proportion. If the FVOCI debt asset have a higher proportion, so the net asset of the company will have a more flat performance. So we will strengthen the asset liability matching management. And the second influence is that there is a decrease of the curve. And in the first half, the decrease range has doubled compared with the.
Thank you, Mr. Gong. I want to ask that, with the decreasing of the rate, the profit or the income of the fixed income will decrease, and we can see there's a greater volatility in the equity market. And, I want to know, what's your total asset allocation strategy, and how do you view on the equity market, and, what's your responding strategy? Thank you.
Thank you for the question. Yes, the rate has a great fluctuation, and the market is also seeking opportunities, and the company facing challenges and pressures in our asset allocation. In the first half, the performance and the investment results is sound. We believe there are three features for the performance of the company the first half, and the first is the total asset allocation strategy will follow the law of the insurance funds allocation, and just like the chairman has said, the fixed income will be the major proportion, and we will also seek opportunities in the equity market, especially in the Hong Kong stock market and the Asia market, and we believe there are different opportunities, and if we can have a balanced management of both fixed income asset and equity market, we can have a sound performance in the market.
We believe in the first half of the year, the asset allocation of the company has a good timing, and this is the first feature. Secondly, for the fixed income asset, just like Mr. Gong has elaborated, NCI has over twenty-eight years history. In our history, we have a lot of asset put in the hold-to-maturity class, and a lot of that asset has contributed our investment yield and can give us a relatively stable performance to responding the decreasing rate. The hold-to-maturity asset has a higher assets proportion, and in the short term, it have a impact on our equity. But in risk bonding to the lower, lowering, so in the reducing rate, we have our strategy. For the fixed income asset, we have two focus.
First is we will control the position, including the A-share and H-share. In this year, the company has in the second performance improved our performance and grasped the market opportunity. For the investment subjects, we follow three directions. First is we will follow the national development strategy, the new productivity driving forces and the industry supported by the country. The second is we will follow the market leaders and with the expert research return in equity investment, especially long-term insurance fund, we will have more efforts on that. And with the low interest rate, we will follow the essence of life insurance fund and follow the rules of the equity market. We will have professional research development research on the development of the industry so that we can have sound investment asset and performance. Next, let's welcome the online questions.
Next, let's welcome the phone number with eight eight two one. Please give us your name and company representative before your questions. Thank you.
Thank you for the opportunity. Haifeng from UBS. I have two questions. First is about the NBV, the second is about the debt investment. We can see the NBV of the company did up by 58%, and we believe that's a great improved with comparative standard, and I want to know your prospect of the NBV in the second half. The second is about the debt investment. As I just now, Mr. Gong has said that the debt investment of the company has a greater proportion as the amortized cost asset, and we believe it is about 40%, and the peer company has about less than 20% proportion. I want to know your strategy. Will you reallocate the AC assets to the other assets to reduce the proportion of amortized cost assets? Those are the questions. Thank you.
Mr. Gong, I will answer these two questions. First, about the NBV growth. The NBV growth has the drivers has several drivers. First, is the business structure optimized, it improve after management and the business growth. First, the core business of our company has grown greatly. The FYRP was a pending period of ten years or more, has greatly grown rapidly, and the core business also include the business in the bank insurance channel. We can see that the single premium in the bank insurance has decreased, and the FYRP in the bank insurance channel have decreased, but with a limited range. It has contributed a lot to the NBV growth, especially after the policy that align the fees with the assumptions.
We can see that the fee assumptions and the fees experience has improved a lot, contributed to NBV growth. The second is we will improve our distribution channels. Just now, the media friends has asked this question, and Mr. Wang has elaborated on that. And for the company, we will build high-performing team, and through the launching of our new generation project, we will improve the productivity our team and to improve the quality of the team and long-term growth and selling abilities of the team.
In the first half, we can see that the premiums per capita of the team has grown by 20%, which has contributed a lot to the NBV growth. And thirdly is we will optimize our term structure. In the first half, a lot of work in growing the long-term payment periods, payment business, and the regular premiums and premiums with 10 payment periods of 10 years or more has grown rapidly, and we have optimized term structure. Thirdly, is we have improved our business quality.
We can see that, in the first half of the year, the presentation has showed that the 13 months and 25 months persistence ratio has grown rapidly, which has shown in our NBV performance, so these are the reasons for the NBV growth of the, first half of the year, and, the whole productivity, the management, the structure structure has optimized, and, in the second half, we will further, follow our investment advantages and respond to, the challenges we may face in the second half of the year. Just now, we have talked about the, reform of the marketing system, the upgrade of the management. We will further optimize our reforms and to grow off our first year premiums, optimize the resources efficient, and to grow the internal, momentum and drivers for the NBV growth.
For your second question, I think it is a technical discussion. First, different companies have different considerations in asset allocation and the asset classification. For now, the interest rate is decreasing. If there is fluctuation and reversal of the rate, it will have huge impact on the PS and income statement. Now it's going through the downward trend, and the short-term fluctuation of the rate won't impact the income of our company, especially long-term asset of a company. For the asset classification is not a quick work. It has a strict standard and regulation requirement. In this circumstances, how can we better grasp the asset and liability?
Our balance sheet and income statement will optimize our classification and asset allocation so that we may expect that we'll have a higher proportion of FVOCI debt and FVOCI equity investment. The second level will improve the asset allocation to a high dividend asset, so that we can have a sound investment base and a higher investment dividend, so that we can have a stable and better performance in our balance sheet and income statement. Also, we will increase the asset allocation to long-term equity investment. There are multiple measures to solve this problem. That is one aspect. We will take multiple measures. Thank you. Next, let's welcome the next questions.
Thank you for the opportunity. Zhang Yi from Guotai Junan Securities. I have two questions. First is about the product strategy. Just now, Mr. Wang Lianwen has said the regulators has introduced, the documents as reducing the assumed rate, and, I want to know your product strategy in September or even in the jumpstart period in last year. And the market has seen that the crediting rate of the universal life insurance and the payment of the participating insurance has decreased. And how can we balance the profit, and, the benefit of the customers' need? And the second, I want to ask that this sales margin ratio of the company has decreased, and the company has issued, the capital supplementary bond, and I want to know, whether you have plan to issue this capital supplementary bond in the future. Mr. Gong will answer those two questions.
First, under the current rate environment and the current economic environment, the market and the customers will be affected. The product is the chain of the major chain of in responding to the demands of customers. Generally speaking, just now, Mr. Wang Lianwen has elaborated, we recognize the current adjustment of the assumed rate, and we believe it faces the healthy development of the company, also the industry. The NBV growth, the sales performance in the first half is a result of such adjustment, and in the future, we will focus on the customer's demand and we'll be more customer-centered and conduct multiple product strategy.
First, we will focus on the flagship products. For the customer demands, it's changing constantly. For certain products and traditional products, they have different demands. For younger customers and older customers, they have different demands and definitions. The current products, CI, increasing whole life, they are the mainstream of the products, and they can make sure our team can move this transition period. Second, we can enhance the product innovation. We can promote innovation, which is to implement the CPC, central parties meeting spirit.
We hope to use the diversified product, innovation, and we can enhance the sales capability and promote this product, innovation and drive our company's sustainable development. Thirdly, optimize the business structure. For this product shift, different products, they have different features. First, we need to still promote traditional products. Also, we need to promote each other types of products and meet the customer demand in different aspects, and balance the development between different products, such as traditional products and participating products.
May bring new drivers for our company's development. Fourthly, we will further enhance product plus service ecosystem building. We have put forward, we should make sales easier. We should make recruitment easier in the hope of to give play the importance of the ecosystem, such as enhancing the high-net-worth service brand, supply home-based elder care service brand, and which all help to improve the sales performance of the existing customers. We can make a coordinated development between different between products and services, so to build a full ecosystem. Lastly, to make our team more in the know, in knowing more about the product, our team can improve their capabilities to sell those products. With the product strategies upgrade, we can upgrade our service to our customers. That's the answer to your question regarding the product shift in the future.
Second, about the service margin ratios decrease. It's a complicated matter, which involves a lot of factors such as minimum capital and capital. To put it simple, the 750-day moving average treasury bond curve and the portfolio change impacted our margin ratio. Other factors include the fluctuation of capital market, the interest rate movement, which impacted our minimum capital, and which increased our capital requirement, which influenced our capital margin ratio. This decrease is still within our control. And if it's within our risk budget, and it's still much higher than the regulatory bottom line, we can see that our position is still adequate, and we have adequate capital to resist the market risk. You just mentioned bond issuance and some other measures.
In the first half, we issued CNY 10 billion in bonds, which will offset the yield reduction in the margin ratio decrease. In the future, we will take more measures to respond to the market changes. Thank you. Thank you for giving me this opportunity. I'm from Changjiang Securities. Congratulations on the nice performance in the first half. I have two questions. The first, about dividend. We see it's first time for us to release the interim dividend. I want to ask you, how to calculate this interim dividend? Is it sustainable? Is there any change for the whole year dividend? The second question is about the channels. We see the new regulatory measures implemented for the bank insurance channel, and we know the individual channel and the broker channel will also implement this new regulatory requirements. What are our company's response measures?
If we re-implement this measure, will it affect the agents' willingness to sell our products? I will answer your first question about dividend. It's the first time in our history to make pay interim dividend. This is our response to the shareholders and the regulators' requirement, and also our response to the national strategy of the country. In the shareholder assembly, we have submitted the application. The general assembly decided and authorized the board of directors to draft the detailed plan. For the first year, as you mentioned, we have achieved nice performance for first half. The first half performance, the net profit grew by 11.1%. The growth in net profit gave us the ability to pay interim dividend.
We will adopt the long-term stable dividend strategy, and also consider our cash flow and the shareholders' wishes and other factors as well. We decide this yearly and half year dividend amount. By considering various factors, we decide the dividend ratio is 15%. If we use this number to see our last year's dividend, it's 19%, which is not low. The interim dividend reflects our company's response to the whole capital market and the requirements for the investors. For next steps, we will consider various factors including the capital market requirements and shareholder wishes, and to decide our annual dividend amount. Let me ask Mr. Wang to answer the second question.
Thank you for your question. After bank insurance and broker channel implemented the required regulatory requirements, the market has a question mark for when the individual channel will require this policy. We believe individual channel will definitely adopt this strategy. We think if the individual channel adopt this policy, which is quite positive for the whole industry growth and lower the cost of the liability side. And high quality is also very positive for the high quality development. If we can reach this consensus, the company has had full considerations in meeting the regulatory requirements first. We are a public company and a big company. We stick to the high quality development road and inward development road. This coincides with the regulatory's requirement. We think the policy will be implemented in all the channels.
We have held several meetings and take measures to counter this problem. Second, the company has started to lower its cost and refine assumptions, improve quality and efficiency, and stabilize the customer benefits for products design. If we can provide competitive products to customers, we can make sales and recruitment more easier. Thirdly, we will diversify our product strategy and optimize product structure and improve the product development. We will further enhance the product plus service model and improve the size, the. And sell more products with long term, which will all help boost the key indicators. Fourth, we will have product service innovation based on customer-centric philosophy, and try to build ecosystem that will provide good service and products to customers.
You just mentioned, if we implemented this policy in the individual channel, will it affect the agents' willingness to sell the products? If the whole market lower the commission. If we can sell more products and increase the productivity per capita. In total, we need to enhance the productivity, competitiveness of products and enhance and improve the sales. Which will be a winning result for the company and the agents. Our company can benefit from the policy. You can see our financial statements. After bank insurance channel implemented the policy, our NBV value improved a lot. From long-term point of view, this policy is quite positive for the company and the industry. As expected, the value and some key indicators are all improved after implementation of the policy. If the policy is implemented in individual channel, which will be quite good for the company, so high quality development. Thank you.
We can see that, for the investment of the asset, there is a great increase of the long-term equity investment. And, I want to know what's your principle in the long-term asset equity investment, and what are the industries and for the primary market, apart from the standard in industry, do you have your own access logic? Thank you.
Thank you for your question. The long-term equity investment is a key topic in the decrease in rate, and we have three features. First is the long-term equity investment is a major direction in our asset allocation. We hope to allocate good project with controllable risks. We can improve the proportion of long-term equity investment, and this is one strategy. And in this process, we will not be blind. We will focus on the sound and good performing project, and strengthen our industry research. The second is for the industries, and we think the emerging industries and the traditional industries both have opportunities. We do not prefer one industry. We will look into the sustainability of the growth of the industry and on the industry's policy and the cash flows of the industry as well as the management team of the companies.
Especially for the companies has a sound track record in the capital market, and we believe those are the assets we are considering. The emerging and traditional industries are included in our pools. Now, the key issue is that it's require favorable environment to have a sound performance and investment in a long-term equity investment. The management team and the chairman and the investment team of our company has done a lot of effort, and we hope to have breakthroughs in this allocation. On the other hand, in the future, while implementing projects, we believe we should have three folks in grasping the favorable environment. First is we should have a professional team. The chairman attach great importance to that.
The asset management company of our company has talents, and we will introduce more high-end professional and elites in the industry, and we believe it's the base and starting point. And secondly, we will emphasize the cooperation with some large state-owned enterprises, especially the central SOEs. I believe in China's development, and we think the industries as has leaders, and it's hard for those companies to maintain its leading position, and we believe we will focus on the leadings, leaders in the industry, and this will be a key issue in the investment. Thirdly is to seek investment opportunities and timing.
Some company may have some strategic reorganization and private placement or even the financing activities and the exit of some existing shareholders, and we believe there are opportunities, and the directions are clear, and we believe we need favorable environmental conditions to have a good investment in this aspect. Next, let's welcome the online questions. Next, let's welcome the investor with phone number 1763. Please give us your name and company representative before raising questions. Thank you.
Thank you for the opportunity. I'm analyst Zeng Yu from Guolian Securities. I have two questions. First is, we can see that the NPV margin of the company has increased a lot. I want to further ask, what is the liability cost of the company? If you consider the fee spread losses or fee spread, what are the liability costs? Second, I want to know a question about the asset and liability matching, and what are the durations of your assets and liabilities, and what are the mismatch for the duration of both asset and liability? And, Mr. Gong will try to answer this question. Just now you've talked about the NBV margin of the company.
And, for the individual insurance channel of the company, just now, we have talked a lot, a lot about the rate changes and the assumption rate changes, as well as the aligning fees with assumptions regulations. We believe the regulation has a huge impact on the bank insurance channel. It has a huge impact on the marketing and sales management of the company, and also poses a higher requirement for the cost. This is a key concern for our company. If we can, how can we lower our cost under the new regulation? How can we change our cost structure?
Which is quite a good question. Our company is discussing the Basic Law for the bank insurance channel and the organization change for the bank insurance channel. Hopefully, this will achieve enhance the performance of the bank insurance channel and offset the regulation's negative impact, and stabilize the NBV margin. For our second question. I said that asset match. People watch closely on the match between the terms and the yields. As a decrease of the cost of liability side, the gap is narrowing. That include traditional products and participating insurance, all those products can see a decrease in cost. We have enhanced our requirements for long-term assets allocation. We have made a quite clear guidance for this equity asset allocation direction. The gap between liability side and term gap between liability side, and as I said, is narrowing. To avoid the liquidity risk. Let's welcome our next questions.
Thank you for giving me this opportunity. I'm from Securities. My question regarding strategies. The company has achieved a quite good performance. What are the measures behind those good performance? Second, for the future outlook, what are our key tasks in the future? Our chairman mentioned the service-oriented and service-empowered organization. My second question is regarding asset liability: What's our strategy and asset allocation strategy?
After chairman came to our company, we have tried to several measure to stabilize our investment returns, such as private equity with other firms. Thank you for your question. I would like to share with the friends present today, give them my thoughts. I worked in broker- dealers for 15 years. This, your question is quite good. I will share my thoughts on our company's strategy. We had a meeting with board of directors yesterday, and we have delivered some quite good performance for the first half. Behind all those... This can be credited to the efforts of each and every colleague from NCI. Effort of each and every colleague is behind each and every good data.
A year ago, I came to NCI, and then this today marked the almost one year anniversary for my work in NCI. Now, after 6:00 P.M., the whole building is still quite have a lot of people working late. We all work very hard. I think the culture and the other aspects and the environment, the mood, is improving a lot. Market-oriented and professional reform has achieved initial results. I mention this a lot. On the surface side, the agents are selling products to customers.
However, under the surface, this is a comparison of the comprehensive capabilities of each company. Just thinking of a few words: strategy, service, reform, vitality, and newer capabilities, strong investment. We make our strategy clear. In the past, we centered on selling products, now we transform towards customer-centric philosophy. This isn't just a simple sentence, it's a systematic work. Make our product innovative and attractive, make our service attractive. Technology empowerment and claim settlement. We need to have some claim settlement service. It's not useful to have fancy words for insurer. The comprehensive ability will speak for itself. For big companies like NCI, we have strong capabilities. And fast claim settlement. As a financial institution, it's quite important to be strong in the powers. We compete our sustainability. Our customer-centric strategy is quite down to earth.
From product to customer service to customer ecosystem, and a couple of brands such as Xinhua Zun, Xinhua, and Xinhua Rui, and Xinhua Le. The series of brands will help serve different branches. We also need to build different brands for our health and other care service. We have made measures to improve all those aspects, help to outperform our peers. Second, we make our service better, and we need to implement reform and reform our organization structure. It will transform from traditional model to a customer-centric model. The branch office organization structure change has been implemented, which will help boost the development of the team. You know, we have 1,700 branches. If we can make those branches stronger. If we can double the number of high-performing agents, which will be quite impressive. As the reform is from top level, top to bottom.
The structure reorganization need to be implemented by professional team. The new management team had pulled forward, to strengthen leadership at every levels. So after new management came office, we have strengthened leadership in the headquarters for various departments. The head in those, in a number of departments have all changed. We have 35 branch offices. We match talents with those branch offices. We put right people in the right position. For those entrepreneurs, we make them in developed regions. For the stable ones, maybe not so younger, and stabilize in nature, put them in some existing regions. Human resource, capital resource, and financial resource, we will try to allocate them rationally. It's a heavy task in this regard. It's both in the headquarter level and branch office level, and some branch level. We hope to, with those measures, we can release vitality.
Our company has a history of 28 years, with strong powers and great ambitions. We have strong powers with heritage, but we still need to innovate. Which is quite important. Employees work quite hard, and we put some incentive measures. You need to match your position with your performance. We should build our inner force. The regulators attach great importance to the control of the risk for insurers. For the risks of insurers, we did a lot of work towards institutional management. In the past, our company had some problems, such as not quite fine management. The branch office has big powers for recruitment and cost control. After the new management team came to office, we required to implement institutional management. We launched a Basic Law, new Basic Law for individual channel.
We just mentioned the new Basic Law for the bancassurance channel, and we will institutionalize management for the channels through the new Basic Law. We are in this process of discussing the incentives for marketing activities. Also, regarding the group business reform, through a combination of measures, we are striving towards the road of high-quality development, try to lower our cost, and save more resources to the right place. We will improve where it requires. We will save money when it's necessary. This is one of the key tasks in the past half-year. Our strategy gets more and more clear. We will enhance our input for product. Focus on the recruitment of the team. We need to build a very strong, high-performing agents team. We need to feel that a stronger staff team can promote the agents team.
We will improve the management of the whole staff team. We deepen our reform of... that is market-oriented and professional-oriented. We should make our products more competitive, and enhancing input in recruitment, and grow the number of high-performing agents. Input should also be made in technology empowerment. We want to make our sales easier and recruitment easier. All those measures will help to improve our competitiveness of the company in the market. Which is realized by making the selling of products easier and recruitment easier, make the best products in our company. We are on that road to realize that goal. We have a couple of measures to achieve product innovation, and the goal is to have the best products in NCI. Our strategy has become clear. The investment side is quite important. I came from broker and dealers, high tech green prospects investment.
In current environment, the economy is transforming. We all feel a downward pressure of the economy, but we still have great confidence for the economic recovery. In a low interest rate environment, the treasury bond yield is quite low. We have which have higher requirements for investment side. For asset allocation, we have 117 billion CNY gross written premium. Our target is 117 billion CNY gross written premium for this year. We need to own the gross written premium. And need to make the responsibility for investing those premiums. We have requirements for our investment department and asset management companies. We have some unique measures. For the gross written premium collected, we put them in the investment account in a timely manner. Our investment is generally prudent and stable. We need to give full play to the nature of insurance capital.
We have very high quality for the investment team. One first advantage for insurance capital is its long-term in nature. We need to give full play to the advantage of long-term and the patient capital. For specific steps, we need to integrate security and yield, and pursue long-term stable yield. Make the investment long-term. Value-oriented investment. Give full play to the advantage of insurance capital and increase our yield by increasing the term. We have a great number of long-term debt investment. Fixed income investment is a common way to increase the term on the investment. For active investment, we should make investment to some best players in each industry. For long-term investment under OCI inadequacy, we have make measures to improve their proportion and give full play to the advantage of the insurance capital.
Now is a good time to do long-term investment, both in primary market and secondary market, and S-funds . You will see the effect gradually. To deepen our research capabilities, I came from the broker- dealers. I attach great importance to the investment and research capabilities. Our investment and research team had made quite an in-depth research. If we haven't done a lot of work, homework, we cannot buy the single asset. We will make more research, both in macroeconomic movement and specific industries. Top players in new productive forces and the industries, consumption, resource-related. We all have input in those areas. Broaden our strategies. In the past, we have relatively speaking single strategies. Now we need to diversify our strategies. We need to have strategies suited with those insurance capital and build some risk resilience system.
Build a professional team and a compliance system powered by technology. We have many more room to improve in this regard. We increased our investment in equity this year, especially buy more stocks during the market downturn, which is a good opportunity. We have confidence in China's economy. And see opportunities in A-share and H-share market. In China, quality companies most go public. And then blue-chip companies are quite suitable for insurance company to invest. We also made investment in convertible bond and some other products. And diversify our investment strategy. Most insurance have a heavy weight on fixed income assets. We make the right amount of adjustment in investment strategy. Which make us invest in top players in industries and other, such as convertible bond and REITs, to stabilize our investment yield. In total, we attach great importance on the general allocation of assets.
Our investment assets reach CNY 1.4 trillion, which is quite huge. Optimizing the asset allocation strategy is quite important. In terms of fixed income, we increase the term of the debt. Lower the risk and grasp the opportunities. We have some trading opportunities for some bonds. In terms of active investment, we be a patient player in patient capital, and make investment in strategic industries. And make investment in top players in some industries. We attach importance on the cash flow and stability of the companies. In alternative investment, we make investment in underlying assets such as new energy and infrastructure. We stress risk control for the investment. Optimize our negative list mechanism and the classification of assets. In total, as a life insurance company, as chairman, I combine learning through action. We should take measures in both asset side and liability side.
We are fully aware of our advantages. In this transitional period in a low interest rate environment, the implementation of regulations will give us advantage. Our advantage will be more transparent compared with smaller companies. We have a unique brand advantage. We are part of the state-owned enterprises financial institution. We have 1,700 branches and a whole talent team, which has been accumulated in the past 28 years. I noticed quite a lot of talents are very outstanding. We need to better manage their capabilities. Thirdly, the quality of the assets. The investment assets are CNY 1.4 trillion, with good quality. The bad asset ratio is quite low, with good investment yield. We need to excel in every single aspect. We have so many advantages in terms of branch branding, the number of customers.
The advantage in the quality of assets. Those advantages cannot be enjoyed by smaller companies. We still have much room for reform and development. I put out seven reform and development directions after I came to this company. We have reform and development dividend for high net worth customer service. We have ability to serve high-end customers. Rather high-end, middle-end customers. We will all serve them well. Second, regional development capabilities. We are quite strong in a couple of regions and have high market penetration rate. For some developed regions, our market penetration rate needs to grow. It's good, but not enough. We will boost development in those developed regions. Reform and development for the organization, how to boost vitality for the organization and deepen the reform that is market-oriented and customer-oriented.
Enhance the product innovation, and we all enjoy dividends for some other aspects, such as internationalization. We need to build a second profit growth curve. If we do better service for our customers, we can have another policy. If we can serve the company well, we can be real player in the market, and we need to enhance the revenue of service. Only those companies with higher service-related revenues can cross cycles. Service need to be combined with the products. Headquarters need to be coordinated with the branch.
Different departments in headquarters need to be coordinated, so the whole organization is advancing in a coordinated way. In the investment side, we need to increase our investment yield, and with better risk control, we have confidence for the future, and the new management team has made it clear for the strategy. The whole company is quite clear to move forward. Thank you for your support for our company. Thank you.
Thank you for the chairman and for your thorough and comprehensive elaboration of the strategy of our company. And due to time limits, this is the end of the results announcement. Thank you very much for your participation and presence in today's meeting, and thank you again for your support and attention to us. If you have further questions, you can contact us. And now, this is the end of the announcement. Thank you all.