At the 2026 interim results briefing held on August 28, CPIC's Vice President and Chief Financial Officer, Su Gang, stated that the company has proactively refined its dividend schedule this year by introducing its first interim dividend. This move is intended to establish a regular semi-annual payout mechanism, thereby steadily enhancing the cash return rate and investment experience for shareholders.
He elaborated that the interim dividend constitutes a vital component of the annual profit distribution. Within the framework of the annual dividend policy, the company uses operating profit as its anchor, while comprehensively weighing solvency constraints, profitability, and investor return expectations to rationally calibrate the ratio between interim and final dividends, ultimately determining the specific interim dividend amount for the period. For the 2026 interim period, CPIC will distribute a cash dividend of RMB 0.42 per share to all shareholders, totaling RMB 4.041 billion. The interim dividend payout ratio, calculated based on operating profit, stands at 19%, a level that is comparable to industry peers, particularly those that similarly use operating profit as the basis for their payout calculations. When measured against net profit, the interim dividend payout ratio is 13.1%, a figure that exceeds that of most of its counterparts.
Regarding the outlook for full-year dividends and future trends, Su Gang highlighted two key points. First, the company's medium-to-long-term dividend policy remains consistent, anchored on operating profit, supplemented by increased dividends from positive investment contributions, while also factoring in solvency constraints to determine payout levels. Second, operating profit, which serves as the foundation for dividends, is primarily driven by the amortization of contractual service margins in the life insurance segment, operating spreads, and underwriting profits from the property and casualty insurance business.
Su Gang projected: "Given China Pacific Insurance (Group) Co., Ltd.'s prudent operational style, we anticipate sustained growth in operating profit over the coming years. The long-term trajectory of per-share cash dividends will remain aligned with operating profit performance. We place a high priority on investor returns and proactively respond to external uncertainties, and we are confident in our ability to deliver a stable, sustainable, and predictable dividend commitment to our investors."
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