The new Sunshine strategy is accelerating the transformation of value comprehensively, and SUNSHINE INS (06963) is moving towards high-quality development.

In recent years, the Chinese insurance industry is undergoing a profound and comprehensive systemic transformation under the multiple impacts of regulatory guidance, market drive, and technological empowerment. Especially with the release of the new version of the "National Ten Measures" in 2024, it signifies a fundamental shift in the industry's development: from the past extensive model relying on "scale expansion" and "interest rate drive" to a new stage of high-quality development centered around "value creation" and "management drive". In this profound industry-wide transformation, the performance reports of every insurance company are no longer just a stack of numbers, but a touchstone for their strategic determination, reform resolution, and execution efficiency. As a significant market participant, SUNSHINE INS (06963) handed in a phase answer on "value transformation" with its full-year performance in 2025. The impressive performance achieved by SUNSHINE INS stems from the company's proactive adaptation to the new situation and active response to new changes. By deepening the "New Sunshine" strategy, the company continues to strengthen its core competitive strengths in "product-end," "service ecosystem-end," "technology-end," "customer service," and "team management," walking a steady and solid path of high-quality development with strong strategic determination and development resilience. This performance not only reveals SUNSHINE INS's own transformation effectiveness under the new industry conditions but also reflects how an enterprising company can consolidate its position and achieve sustainable breakthroughs through systematic reforms in an industry where the "Matthew Effect" is intensifying. It can be said that SUNSHINE INS provides a reference practice sample for industry transformation. The differentiation competitive advantage on the product end is highlighted, demonstrating high-quality breakthroughs In the macroeconomic environment of economic shifting, the insurance industry's past reliance on the "asset-driven liability" model based on interest differentials is no longer sustainable. The industry urgently hopes to find a new path for development. Meanwhile, the introduction of the new version of the "National Ten Measures" by regulators, the dynamic adjustment mechanism of the predetermined interest rate, and the "integration of banking and insurance" policy have driven the industry to return to its essence and clarified the direction of high-quality development. Consumer demand has also shifted from basic protection to comprehensive solutions such as health and retirement. Under the driving force of macroeconomics, regulation, and demand changes, product transformation has become a must-answer question for the industry's survival and development. SUNSHINE INS has made solid progress in its transformation by consistently advancing the "Know Your Sunshine" strategy, optimizing product supply to align with trends. In 2025, Sunshine Life actively seized the opportunities of the new economic cycle and aging population development, deeply integrating the concept of "Three/Five/Seven," persistently creating a full life-cycle product system with Sunshine's characteristics. Focus on the core needs of the silver-haired customer group, launched a series of 12 silver-haired products under the "Beautiful Life" series, making innovative breakthroughs in product form, insurable age, payment method, and supporting services, fully meeting the needs of silver-haired customers. At the same time, enriching the category of savings-type products, continuously optimizing and upgrading the product matrix, accurately matching customers' diverse wealth management needs during the new economic cycle. Insisting on deepening the health protection market, focusing on innovative drugs and other potential markets, expanding the age range for insurance coverage, actively responding to customers' diversified and personalized health protection needs. The full life-cycle product system with Sunshine's characteristics has provided Sunshine Life with a differentiated competitive advantage in the market. This means that as customers become more rational and their awareness of insurance increases, the competition for insurance companies is no longer solely based on cost, team size, and channel advantages, but on how well they can match products to customer needs, especially comprehensive needs over the entire life cycle. In this respect, whether it is the innovative introduction of the "Three/Five/Seven" protection concept, the breakthrough of the industry shackles to create the "Beautiful Life" silver-haired product system, or the annual customer demand survey conducted by SUNSHINE INS, these actions have clearly demonstrated that the company has a more forward-thinking and insightful approach. The layout of service ecosystem has achieved phased results, opening up a new path for sustainable growth If the transformation and upgrading of the product end is the "must-answer question" for the high-quality development of the insurance industry, then the deep layout of the service ecosystem is the decisive "decisive question" that determines the future height. Facing the dilemma of low frequency, homogeneity, and reliance on interest differentials in the traditional model, the insurance industry is moving from "after-the-fact compensation" to "full-cycle risk management partner." This resonates with the deep-seated demand of customers for overall solutions in health management, medical resources, etc., making the service ecosystem a core barrier beyond price competition. From the perspective of industry evolution, the transformation of the insurance service ecosystem mainly deepens along two major paths: driving operational restructuring and experience upgrade through digitization and AI technology, and moving the "insurance + service" ecosystem from cross-border links to deep integration. In these two aspects, SUNSHINE INS, which firmly implements the "Technology Sunshine" and "Know Your Sunshine" strategies, has made solid progress and achieved phased results. In 2025, Sunshine Life comprehensively promoted the "Technology Sunshine" strategy, establishing a data intelligence system as the core engine for high-quality development, fully deepening the integration and application of "AI+" technology in various operational blocks and management processes, continuously building a smart insurance new ecosystem, and promoting the implementation of multiple digital projects in sales support, customer experience optimization, and operational efficiency enhancement, showing remarkable results. For example, in terms of sales empowerment, Sunshine Life uses AI technology to transform the sales team into professional consultants. The online "AI Customer Management Assistant" can generate personalized customer plans in seconds and has been deployed nationwide. At the same time, Sunshine Life continues to upgrade the "Know Your Sunshine" service system construction, aiming to become a long-term guardian and companion for customers' beautiful lives. For example, in terms of health services, Sunshine Life has established a "prevention-diagnosis-rehabilitation" full-cycle management loop and innovatively launched the "Sunshine Health Addition and Subtraction" health service concept. The "Direct 30" full-process medical management service has been highly recognized and praised by customers. In addition, SUNSHINE INS has in-depth layouts in elderly care services, education services, and service quality management. With the continuous deepening of the "Technology Sunshine" and "Know Your Sunshine" dual strategies of Sunshine Life, customer satisfaction and service experience have been significantly improved, and the optimization of customer management results has been effectively promoted. The performance of customer group management is particularly outstanding: the number of customers with accumulated first-year standard premiums of 150,000 yuan or more increased by 22.6% year-on-year, and the number of customers with premiums of 50,000 yuan or more increased by 19.3%. The customer structure continues to be optimized, and the foundation of value is continuously strengthened. Sunshine Property Insurance has also systematically upgraded its service system, continued to deepen the implementation of the "Partner Action" risk management service, and improved service capabilities and quality. As mentioned earlier, insurance is no longer just about claims; it now involves full-cycle protection. Therefore, Sunshine Property Insurance, which was among the first in the industry to start reducing risk services, has built an early advantage. Nowadays, this service is continuously iterating, including establishing a service capability ABCD grading evaluation system, expanding exclusive services to cover the onshore wind power industry, introducing fusion technologies such as "long-distance three-dimensional laser scanning + high-precision millimeter-wave radar" in the wind power field, and innovatively launching a risk reduction service model in the general warehousing field that integrates "professional consultation + technology monitoring + insurance safety net." In 2025, the company provided "professional + technology" risk management services to approximately 35,000 corporate clients. Brokerage institutions generally believe that based on the profound ecological layout, SUNSHINE INS has built a differentiated long-term competitive moat, achieved deep customer engagement, and business synergy. These unique resources provide underlying support for product innovation and precise pricing, opening up a path of sustainable value growth beyond traditional insurance by improving customer experience and underwriting quality. Fundamentally transforming the quality of the team to promote management improvement In all the transformations towards high-quality development in the insurance industry, reshaping the team end is the most urgent. Its fundamental DRIVE lies in the fact that the old "human tactics" are no longer suitable for the new situation - in the face of multiple changes such as upgrading consumer demand, digital channel impact, and product complexity, marketing teams urgently need to achieve deep-level transformation. The transformation path of the team end undoubtedly points to the improvement of "quality," or in other words, this transformation is essentially a reconstruction of the industry value chain - from channel-driven by manpower scale to consultant-driven by professional value. In the process of steadfastly advancing the "Value Sunshine" strategy, the reform of the agent team at SUNSHINE INS also aligns with the trend. It is worth mentioning that the company has been continuously promoting the "One Body, Two Wings" strategy in its individual insurance business, implementing a differentiated management mode. "One Body" focuses on optimizing traditional team quality and enhancing professional capabilities across the board, accelerating product structure transformation. "Two Wings" continues to promote model refinement and optimization, enhancing value development momentum. In terms of traditional teams, the company has steadily improved the team's quality by raising standards for new team construction, improving the effectiveness of recruitment and cultivation, and promoting the steady improvement of the team's quality. At the same time, it strengthens the team's customer management capabilities, deepens the penetration and execution of the "Three/Five/Seven" product system, empowers the team in multiple dimensions such as team training, household policy development using AI tools, and enhances the team's selling and serving capabilities across various forms of products. The average activity capacity per person in 2025 reached 22,000 yuan, and the average activity capacity per new recruit was 18,000 yuan. The elite team adheres to high starting points and systematic cultivation, deepening customer fine management, and showcasing outstanding professional capabilities. In 2025, more than half of the elite team had a bachelor's degree or above, with stable monthly active personnel and an average capacity per person that was more than twice that of the traditional team. In terms of domain marketing, Sunshine Life focuses on the demand for enterprise pension security, accelerating regional expansion and operational optimization to drive rapid business growth. Conclusion From the 2025 financial report, as a medium-sized company, SUNSHINE INS firmly follows a strategy-oriented approach and has embarked on a path of characteristic development that focuses on "customer-driven, technology-empowered, and value growth." This is thanks to SUNSHINE INS's keen market sense and decisive strategic execution ability. The company's transformation and reform are not just isolated breakthroughs but a systemic project of product, channel, ecology, and technology synergistic progress, which has allowed the company to build a differentiated competitive barrier and gain a first-mover advantage in the industry's transition to a new stage of high-quality development. Soochow recently released a research report stating that it continues to have a positive outlook on SUNSHINE INS's life insurance sector, with the implementation of the "New Sunshine strategy" and the optimization trend of the property insurance business. Based on this, the organization has raised its profit forecast for SUNSHINE INS in 2026-2027, corresponding to the current company valuation still being at a low level, maintaining a "buy" rating.