Commission File Number 001-31914
EXHIBIT 99.1
CHINA LIFE INSURANCE COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 2628)
2011 THIRD QUARTER REPORT
This announcement is made by China Life Insurance Company Limited pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The financial data of the Company for the third quarter of 2011 have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited Net profit attributable to shareholders of the Company and shareholders’ equity attributable to shareholders of the Company in the consolidated financial statements are identical to the relevant data under International Financial Reporting Standards.
1. | Important Notice |
1.1 | The Company’s Board of Directors, the Supervisory Committee, its Directors, Supervisors and Senior Management warrant that there are no false representations, misleading statements or material omissions in this report, and jointly and severally accept full responsibility for the authenticity, accuracy and completeness of the information contained in this report. | ||
1.2 | Of the eleven Directors of the Company, nine attended the Board Meeting. The Chairman and Executive Director Mr. Yuan Li, Executive Directors Mr. Wan Feng and Ms. Liu Yingqi, Non-executive Directors Mr. Miao Jianmin and Mr. Shi Guoqing, and Independent Non-executive Directors Mr. Ma Yongwei, Mr. Bruce Douglas Moore and Mr. Anthony Francis Neoh attended the meeting. Independent Non-executive Director Mr. Sun Changji attended the meeting by phone. Executive Director Mr. Lin Dairen and Non-executive Director Ms. Zhuang Zuojin were absent and gave written authorization to Executive Director Mr. Wan Feng and Non-executive Director Mr. Shi Guoqing to act as proxy to attend and vote in the meeting, respectively. | ||
1.3 | The Company’s 2011 third quarter financial report is unaudited. |
Commission File Number 001-31914
1.4 | Mr. Yuan Li, Chairman of the Company, Mr. Liu Jiade, Vice President in charge of financial affairs, Ms Hwei-Chung Shao, Chief Actuary and Mr. Yang Zheng, Head of the Financial Department, confirm that the financial reports in this 2011 third quarter report are true and complete. |
2. | Basic Information of the Company |
2.1 | Major accounting data and financial indicators |
(Currency: RMB)
Increase/(decrease) | ||||||||||||
As at | As at | compared to | ||||||||||
30 September 2011 | 31 December 2010 | 31 December 2010 | ||||||||||
Total assets(million) | 1,521,936 | 1,410,579 | 7.9 | % | ||||||||
Shareholders’ equity attributable to shareholders of the Company(million) | 176,091 | 208,710 | -15.6 | % | ||||||||
Net assets per share attributable to shareholders of the Company(RMB per share) | 6.23 | 7.38 | -15.6 | % |
Increase/(decrease) | ||||||||
For the nine months ended | compared to the | |||||||
30 September 2011 | same period of 2010 | |||||||
Net cash flows from operating activities(million) | 114,813 | -21.6 | % | |||||
Net cash flows per share from operating activities(RMB per share) | 4.06 | -21.6 | % |
Increase/(decrease) | ||||||||||||||||
compared to the | ||||||||||||||||
same period of | ||||||||||||||||
For the reporting period | For the same period of 2010 | For the nine months ended | 2010 (from July to | |||||||||||||
(from July to September) | (from July to September) | 30 September 2011 | September) | |||||||||||||
Net profit attributable to shareholders of the Company(million) | 3,753 | 6,911 | 16,717 | -45.7 | % | |||||||||||
Basic earnings per share(RMB per share) | 0.13 | 0.24 | 0.59 | -45.7 | % | |||||||||||
Basic earnings per share after deducting non- recurring items(RMB per share) | 0.13 | 0.24 | 0.59 | -45.4 | % | |||||||||||
Diluted earnings per share(RMB per share) | 0.13 | 0.24 | 0.59 | -45.7 | % | |||||||||||
Weighted average ROE(%) | 2.01 | 3.47 | 8.60 | A decrease of 1.46 percentage points | ||||||||||||
Weighted average ROE after deducting non- recurring items(%) | 2.02 | 3.47 | 8.61 | A decrease of 1.45 percentage points |
Note: | Shareholders’ equity refers to shareholders’ equity attributable to shareholders of the Company, while net profit refers to net profit attributable to shareholders of the Company. |
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Commission File Number 001-31914
As at 30 September 2011, investment assets of the Company were RMB1,423,838 million. For the nine months ended 30 September 2011, the gross investment yield was 4.14% (the gross investment yield ={[(Investment income –share of results of associates + Fair value gains/ (losses)-Impairment losses of investment assets –Business tax and surcharges expense for investment)/((Investment assets at the beginning of the period + Investment assets at the end of the period)/2)]/273}×365), the surrender rate was 2.19%, and premiums earned reached RMB262,768 million, with a growth rate of 2.6%.
Deducting Non-recurring Items and Amount
RMB Million
For the nine months ended | ||||
Non-recurring items | 30 September 2011 | |||
Gains on disposal of non-current assets | 8 | |||
Net non-operating income and expenses other than those mentioned above | (20 | ) | ||
Effect of income tax expenses | 3 | |||
Total | (9 | ) |
Note: | As an insurance company, investment (utilization of insurance funds) is one of the main businesses of the Company. Therefore, the non-recurring items do not include fair-value gains/(losses) from held-for-trading financial assets and liabilities, as well as investment income from the disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets. |
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Commission File Number 001-31914
2.2 | Total number of shareholders and the top ten shareholders not subject to selling restrictions as at the end of the reporting period |
Unit: Share
The total number of shareholders | Number of A share holders: 273,667 | |
as at the end of the reporting period | Number of H share holders: 36,400 |
Particulars of the top ten shareholders of listed shares not subject to selling restrictions
Number of listed shares not | ||||||||
subject to selling | ||||||||
restrictions held as at the | ||||||||
Name of shareholders (Full name) | end of the reporting period | Type | ||||||
China Life Insurance (Group) Company | 19,323,530,000 | A shares | ||||||
HKSCC Nominees Limited | 7,267,142,892 | H shares | ||||||
State Development & Investment Corporation | 49,800,000 | A shares | ||||||
China National Investment & Guaranty Co., Ltd | 29,400,000 | A shares | ||||||
China National Nuclear Corporation | 20,000,000 | A shares | ||||||
China Merchants Securities Co. Ltd-Securities Account of Guarantee for Customer Securities Credit Transactions | 19,814,803 | A shares | ||||||
China Pacific Life Insurance Co., Ltd.-Tradition-Ordinary Insurance Products | 18,931,927 | A shares | ||||||
China International Television Corporation | 18,452,300 | A shares | ||||||
China Construction Bank-Changsheng Tongqing Detachable Transaction Stock Securities Investment Fund | 15,993,573 | A shares | ||||||
Ping An Property & Casualty Insurance Company of China, Ltd-Owned Fund | 15,904,576 | A shares |
3. | Significant Events |
3.1 | Particulars of, and reasons for, material changes in major accounting items and financial indicators of the Company |
þ Applicable o Not applicable |
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Commission File Number 001-31914
(1) Changes in key financial indicators and their reasons
RMB million
As at | As at | |||||||||||||
30 September | 31 December | Increase/ | ||||||||||||
Key Financial Indicators | 2011 | 2010 | (decrease) | Main reasons | ||||||||||
Total assets | 1,521,936 | 1,410,579 | 7.9 | % | Accumulation of insurance business assets | |||||||||
Total liabilities | 1,344,022 | 1,200,104 | 12.0 | % | Increase in insurance reserves | |||||||||
Shareholders’ equity attributable to shareholders of the Company | 176,091 | 208,710 | -15.6 | % | Decrease in the fair value of available-for-sale financial assets resulting from the fluctuation in the capital markets and the distribution of previous year’s cash dividends to shareholders |
RMB million
For the nine | For the nine | |||||||||||||
months ended | months ended | |||||||||||||
30 September | 30 September | Increase/ | ||||||||||||
Key Financial Indicators | 2011 | 2010 | (decrease) | Main reasons | ||||||||||
Operating profit | 19,349 | 30,118 | -35.8 | % | Decline of investment yield and increase in impairment losses caused by the fluctuation in the capital markets | |||||||||
Net profit attributable to shareholders of the Company | 16,717 | 24,945 | -33.0 | % | Decline of investment yield and increase in impairment losses caused by the fluctuation in the capital markets |
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Commission File Number 001-31914
(2) Material changes in major accounting items and their reasons
RMB million
As at | As at | |||||||||||||
30 September | 31 December | Increase/ | ||||||||||||
Key Financial Indicators | 2011 | 2010 | (decrease) | Main reasons | ||||||||||
Held-for-trading financial assets | 17,719 | 9,693 | 82.8 | % | Increase in debt securities allocated to held- for-trading financial assets | |||||||||
Interest receivables | 26,197 | 18,193 | 44.0 | % | Increase in interest income resulting from the increase in interest rate and increase in the volume of fixed-income investment assets | |||||||||
Policy loans | 31,409 | 23,977 | 31.0 | % | Increase in the demand of policy loans | |||||||||
Debt plan investments | 23,918 | 12,566 | 90.3 | % | Increase in the volume of debt plan investments | |||||||||
Deferred tax assets | 2,017 | — | Not applicable | Decrease in the fair value of available-for-sale financial assets resulting in the changeover of deferred tax balance from liabilities to assets | ||||||||||
Deferred tax liabilities | — | 11,776 | Not applicable | Decrease in the fair value of available-for-sale financial assets resulting in the changeover of deferred tax balance from liabilities to assets | ||||||||||
Capital reserve | 20,431 | 58,460 | -65.1 | % | Decrease in the fair value of available-for-sale financial assets resulting from the fluctuation in the capital markets |
RMB million
For the nine | For the nine | |||||||||||||
months ended | months ended | |||||||||||||
30 September | 30 September | Increase/ | ||||||||||||
Key Financial Indicators | 2011 | 2010 | (decrease) | Main reasons | ||||||||||
Surrenders | 27,649 | 19,220 | 43.9 | % | Impacts from the changes of market situation and increase in the Company’s business volume | |||||||||
Claims expense | 60,922 | 40,391 | 50.8 | % | Intensive payment for maturity benefits for some products | |||||||||
Policyholder dividends | 6,428 | 9,152 | -29.8 | % | Decrease in investment yield for participating products | |||||||||
Impairment losses | 5,996 | 957 | 526.5 | % | Increase in assets which meet the conditions for recognizing impairment losses resulting from the fluctuation in the capital markets | |||||||||
Income tax expenses | 2,462 | 5,036 | -51.1 | % | Decrease in taxable income |
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Commission File Number 001-31914
3.2 | Explanation and analysis of significant events and their impacts and solutions | ||
þ Applicable o Not applicable |
The first extraordinary general meeting 2011 of the Company held on 14 October 2011 had approved the resolution in relation to the issue of subordinated term debts with an aggregate amount of not exceeding RMB30 billion. The proceeds of the subordinated term debts will be used to replenish the Company’s supplementary capital and raise the solvency ratio of the Company. The issue of such subordinated term debts was approved by the China Insurance Regulatory Commission on 21 October 2011.
3.3 | Implementation of undertakings by the Company, its shareholders and de facto controller | ||
þ Applicable o Not applicable |
Prior to the listing of the Company’s A Shares (30 November 2006), land use rights were injected by China Life Insurance (Group) Company (the “CLIC”) into the Company during its reorganization. Out of these, four pieces of land (with a total area of 10,421.12 square meters) had not had its formalities in relation to the change of ownership completed. Further, out of the properties injected into the Company, there were six properties (with a gross floor area of 8,639.76 square meters) in respect of which the formalities in relation to the change of ownership had not been completed. CLIC undertook to complete the abovementioned formalities within 1 year of the date of listing of the Company’s A Shares, and in the event such formalities could not be completed within such period, CLIC would bear any potential losses to the Company in relation thereto. CLIC strictly followed these commitments. As at the end of the Reporting Period, save for the two properties and related land of the Company’s Shenzhen Branch, all other formalities in relation to the change of land and property ownership had been completed. The Shenzhen Branch of the Company continues to use such properties and land, and no other parties have questioned or hindered the use of such properties and land by the Company.
3.4 | Warnings and explanation for any significant changes in net profit or cumulative losses from the beginning of the year to the end of the next reporting period as compared to the same period of last year | ||
o Applicable þ Not applicable |
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Commission File Number 001-31914
3.5 | The implementation of cash dividend policy during the reporting period | ||
o Applicable þ Not applicable |
This announcement is published in both Chinese and English languages. The Chinese version announcement shall prevail.
By Order of the Board of | ||
China Life Insurance Company Limited | ||
Heng Kwoo Seng | ||
Company Secretary |
As at the date of this announcement, the Board of Directors of the Company comprises:
Executive Directors: | Mr. Yuan Li, Mr. Wan Feng, Mr. Lin Dairen, Ms. Liu Yingqi | |
Non-executive Directors: | Mr. Miao Jianmin, Mr. Shi Guoqing, Ms. Zhuang Zuojin | |
Independent non-executive Directors: | Mr. Ma Yongwei, Mr Sun Changji, | |
Mr. Bruce Douglas Moore, Mr. Anthony Francis Neoh |
Hong Kong,
27 October 2011
27 October 2011
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Commission File Number 001-31914
4. | Appendix |
4.1 | Balance sheet as at 30 September 2011(unaudited) |
RMB million (Unless otherwise stated)
As at | As at | As at | As at | |||||||||||||
30 September | 31 December | 30 September | 31 December | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
ASSETS | Group | Group | Company | Company | ||||||||||||
Assets | ||||||||||||||||
Cash fund | 46,569 | 47,839 | 46,149 | 47,530 | ||||||||||||
Held-for-trading financial assets | 17,719 | 9,693 | 17,299 | 9,607 | ||||||||||||
Securities purchased under agreements to resell | 576 | — | 530 | — | ||||||||||||
Interest receivables | 26,197 | 18,193 | 26,112 | 18,098 | ||||||||||||
Premiums receivables | 13,570 | 7,274 | 13,570 | 7,274 | ||||||||||||
Receivables from reinsurers | 30 | 22 | 30 | 22 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 78 | 57 | 78 | 57 | ||||||||||||
Claim reserves receivable from reinsurers | 32 | 32 | 32 | 32 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 10 | 13 | 10 | 13 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 716 | 706 | 716 | 706 | ||||||||||||
Policy loans | 31,409 | 23,977 | 31,409 | 23,977 | ||||||||||||
Debt plan investments | 23,918 | 12,566 | 23,728 | 12,376 | ||||||||||||
Other receivables | 7,053 | 3,154 | 6,954 | 3,142 | ||||||||||||
Term deposits | 502,477 | 441,585 | 501,177 | 440,217 | ||||||||||||
Available-for-sale financial assets | 561,940 | 548,121 | 559,520 | 544,744 | ||||||||||||
Held-to-maturity investments | 233,077 | 246,227 | 233,058 | 246,220 | ||||||||||||
Long-term equity investments | 23,829 | 20,892 | 27,580 | 24,757 | ||||||||||||
Statutory deposits | 6,153 | 6,153 | 5,653 | 5,653 | ||||||||||||
Constructions in progress | 2,652 | 2,080 | 2,652 | 2,080 | ||||||||||||
Fixed assets | 16,287 | 16,498 | 15,748 | 15,944 | ||||||||||||
Intangible assets | 3,704 | 3,726 | 3,667 | 3,690 | ||||||||||||
Deferred tax assets | 2,017 | — | 1,942 | — | ||||||||||||
Other assets | 1,857 | 1,687 | 1,850 | 1,684 | ||||||||||||
Separate account assets | 66 | 84 | 66 | 84 | ||||||||||||
Total Assets | 1,521,936 | 1,410,579 | 1,519,530 | 1,407,907 | ||||||||||||
Yuan Li | Liu Jiade | Hwei-Chung Shao | Yang Zheng | |||
Chairman | Vice President | Chief Actuary | Head of | |||
in charge of | Financial | |||||
Accounting Affairs | Department |
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Commission File Number 001-31914
4.1 | Balance sheet as at 30 September 2011 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
As at | As at | As at | As at | |||||||||||||
30 September | 31 December | 30 September | 31 December | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
LIABILITIES AND EQUITY | Group | Group | Company | Company | ||||||||||||
Liabilities | ||||||||||||||||
Financial assets sold under agreements to repurchase | 25,717 | 23,065 | 25,517 | 22,660 | ||||||||||||
Premiums received in advance | 1,741 | 1,880 | 1,741 | 1,880 | ||||||||||||
Brokerage and commission payable | 1,939 | 1,944 | 1,939 | 1,944 | ||||||||||||
Reinsurance payable | 60 | 36 | 60 | 36 | ||||||||||||
Salary and welfare payable | 2,760 | 4,972 | 2,501 | 4,720 | ||||||||||||
Taxes payable | 462 | 412 | 433 | 375 | ||||||||||||
Claims payable | 11,802 | 8,275 | 11,802 | 8,275 | ||||||||||||
Policyholder dividends payable | 48,308 | 52,828 | 48,308 | 52,828 | ||||||||||||
Other payable | 2,183 | 3,265 | 2,251 | 3,248 | ||||||||||||
Policyholder deposits | 70,019 | 70,087 | 70,019 | 70,087 | ||||||||||||
Unearned premium reserves | 7,218 | 5,935 | 7,218 | 5,935 | ||||||||||||
Claim reserves | 3,096 | 3,304 | 3,096 | 3,304 | ||||||||||||
Reserves for life insurance | 1,154,061 | 1,000,483 | 1,154,061 | 1,000,483 | ||||||||||||
Reserves for long-term health insurance | 10,600 | 8,413 | 10,600 | 8,413 | ||||||||||||
Deferred tax liabilities | — | 11,776 | — | 11,828 | ||||||||||||
Other liabilities | 3,990 | 3,345 | 3,990 | 3,345 | ||||||||||||
Separate account liabilities | 66 | 84 | 66 | 84 | ||||||||||||
Total liabilities | 1,344,022 | 1,200,104 | 1,343,602 | 1,199,445 | ||||||||||||
Shareholders’ equity | ||||||||||||||||
Share capital | 28,265 | 28,265 | 28,265 | 28,265 | ||||||||||||
Capital reserve | 20,431 | 58,460 | 20,540 | 58,453 | ||||||||||||
Surplus reserve | 32,418 | 29,050 | 32,370 | 29,002 | ||||||||||||
General reserve | 13,004 | 13,004 | 13,004 | 13,004 | ||||||||||||
Retained earnings | 81,976 | 79,933 | 81,749 | 79,738 | ||||||||||||
Exchange differences from translating foreign currency financial statement | (3 | ) | (2 | ) | — | — | ||||||||||
Total equity attributable to shareholders of the Company | 176,091 | 208,710 | 175,928 | 208,462 | ||||||||||||
Minority interests | 1,823 | 1,765 | — | — | ||||||||||||
Total shareholders’ equity | 177,914 | 210,475 | 175,928 | 208,462 | ||||||||||||
Total liabilities and shareholders’ equity | 1,521,936 | 1,410,579 | 1,519,530 | 1,407,907 | ||||||||||||
Yuan Li | Liu Jiade | Hwei-Chung Shao | Yang Zheng | |||
Chairman | Vice President | Chief Actuary | Head of | |||
in charge of | Financial | |||||
Accounting Affairs | Department |
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Commission File Number 001-31914
4.2 | Income statement for the third quarter of 2011 (unaudited) |
RMB million (Unless otherwise stated)
For the nine months ended | For the nine months ended | |||||||||||||||||||
30 September | 30 September | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Group | Group | Company | Company | |||||||||||||||||
1. | Operating income | 314,826 | 305,567 | 314,495 | 305,318 | |||||||||||||||
Premiums earned | 262,768 | 256,133 | 262,768 | 256,133 | ||||||||||||||||
Premium income | 264,217 | 256,866 | 264,217 | 256,866 | ||||||||||||||||
Including: reinsurance premium income | — | — | — | — | ||||||||||||||||
Less: Premiums ceded to reinsurers | (187 | ) | (120 | ) | (187 | ) | (120 | ) | ||||||||||||
Unearned premium reserves | (1,262 | ) | (613 | ) | (1,262 | ) | (613 | ) | ||||||||||||
Investment income | 50,899 | 47,403 | 50,796 | 47,386 | ||||||||||||||||
Including: share of results of associates | 1,625 | 1,419 | 1,625 | 1,419 | ||||||||||||||||
Fair value gains/(losses) | (286 | ) | 133 | (269 | ) | 129 | ||||||||||||||
Foreign exchange losses | (443 | ) | (189 | ) | (442 | ) | (188 | ) | ||||||||||||
Other operating income | 1,888 | 2,087 | 1,642 | 1,858 | ||||||||||||||||
2. | Operating expenses | (295,477 | ) | (275,449 | ) | (295,475 | ) | (275,447 | ) | |||||||||||
Surrenders | (27,649 | ) | (19,220 | ) | (27,649 | ) | (19,220 | ) | ||||||||||||
Claims expense | (60,922 | ) | (40,391 | ) | (60,922 | ) | (40,391 | ) | ||||||||||||
Less: claims recoverable from reinsurers | 69 | 68 | 69 | 68 | ||||||||||||||||
Increase in insurance contracts reserve | (155,550 | ) | (169,039 | ) | (155,550 | ) | (169,039 | ) | ||||||||||||
Less: insurance reserves recoverable from reinsurers | 7 | 23 | 7 | 23 | ||||||||||||||||
Policyholder dividends | (6,428 | ) | (9,152 | ) | (6,428 | ) | (9,152 | ) | ||||||||||||
Business tax and surcharges expense | (913 | ) | (1,018 | ) | (869 | ) | (977 | ) | ||||||||||||
Underwriting and policy acquisition costs | (21,069 | ) | (20,236 | ) | (21,069 | ) | (20,236 | ) | ||||||||||||
Administrative expenses | (13,979 | ) | (12,914 | ) | (13,488 | ) | (12,491 | ) | ||||||||||||
Less: expenses recoverable from reinsurers | 44 | 29 | 44 | 29 | ||||||||||||||||
Other operating expenses | (3,091 | ) | (2,642 | ) | (3,624 | ) | (3,104 | ) | ||||||||||||
Impairment losses | (5,996 | ) | (957 | ) | (5,996 | ) | (957 | ) | ||||||||||||
3. | Operating profit | 19,349 | 30,118 | 19,020 | 29,871 | |||||||||||||||
Add: Non-operating income | 48 | 40 | 47 | 40 | ||||||||||||||||
Less: Non-operating expenses | (60 | ) | (36 | ) | (59 | ) | (35 | ) | ||||||||||||
4. | Net profit before income tax expenses | 19,337 | 30,122 | 19,008 | 29,876 | |||||||||||||||
Less: Income tax expenses | (2,462 | ) | (5,036 | ) | (2,323 | ) | (4,899 | ) | ||||||||||||
5. | Net profit | 16,875 | 25,086 | 16,685 | 24,977 | |||||||||||||||
6. | Attributable to: | |||||||||||||||||||
— shareholders of the Company | 16,717 | 24,945 | ||||||||||||||||||
— minority interests | 158 | 141 | ||||||||||||||||||
7. | Earnings per share | |||||||||||||||||||
Basic earnings per share | RMB0.59 | RMB0.88 | ||||||||||||||||||
Diluted earnings per share | RMB0.59 | RMB0.88 | ||||||||||||||||||
8. | Other Comprehensive losses | (38,072 | ) | (9,642 | ) | (37,913 | ) | (9,618 | ) | |||||||||||
9. | Total Comprehensive income/(losses) | (21,197 | ) | 15,444 | (21,228 | ) | 15,359 | |||||||||||||
Attributable to shareholders of the Company | (21,313 | ) | 15,311 | |||||||||||||||||
Attributable to minority interests | 116 | 133 |
Yuan Li | Liu Jiade | Hwei-Chung Shao | Yang Zheng | |||
Chairman | Vice President | Chief Actuary | Head of | |||
in charge of | Financial | |||||
Accounting Affairs | Department |
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Commission File Number 001-31914
4.2 | Income statement for the third quarter of 2011 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||||||
For the three months ended | For the three months ended | |||||||||||||||||||
30 September | 30 September | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Group | Group | Company | Company | |||||||||||||||||
1. | Operating income | 82,932 | 88,907 | 82,797 | 88,756 | |||||||||||||||
Premiums earned | 67,919 | 72,544 | 67,919 | 72,544 | ||||||||||||||||
Premium income | 68,727 | 73,252 | 68,727 | 73,252 | ||||||||||||||||
Including: reinsurance premium income | — | — | — | — | ||||||||||||||||
Less: Premiums ceded to reinsurers | (63 | ) | (30 | ) | (63 | ) | (30 | ) | ||||||||||||
Unearned premium reserves | (745 | ) | (678 | ) | (745 | ) | (678 | ) | ||||||||||||
Investment income | 15,033 | 15,032 | 14,982 | 14,978 | ||||||||||||||||
Including: share of results of associates | 456 | 349 | 456 | 349 | ||||||||||||||||
Fair value gains/(losses) | (487 | ) | 515 | (474 | ) | 510 | ||||||||||||||
Foreign exchange losses | (160 | ) | (110 | ) | (160 | ) | (110 | ) | ||||||||||||
Other operating income | 627 | 926 | 530 | 834 | ||||||||||||||||
2. | Operating expenses | (78,499 | ) | (80,390 | ) | (78,509 | ) | (80,394 | ) | |||||||||||
Surrenders | (10,019 | ) | (6,410 | ) | (10,019 | ) | (6,410 | ) | ||||||||||||
Claims expense | (15,023 | ) | (12,446 | ) | (15,023 | ) | (12,446 | ) | ||||||||||||
Less: claims recoverable from reinsurers | 19 | 14 | 19 | 14 | ||||||||||||||||
Increase in insurance contracts reserve | (38,620 | ) | (46,420 | ) | (38,620 | ) | (46,420 | ) | ||||||||||||
Less: insurance reserves recoverable from reinsurers | 4 | 18 | 4 | 18 | ||||||||||||||||
Policyholder dividends | (664 | ) | (2,957 | ) | (664 | ) | (2,957 | ) | ||||||||||||
Business tax and surcharges expense | (256 | ) | (295 | ) | (241 | ) | (280 | ) | ||||||||||||
Underwriting and policy acquisition costs | (5,726 | ) | (6,274 | ) | (5,726 | ) | (6,274 | ) | ||||||||||||
Administrative expenses | (4,568 | ) | (4,152 | ) | (4,402 | ) | (4,009 | ) | ||||||||||||
Less: expenses recoverable from reinsurers | 20 | 11 | 20 | 11 | ||||||||||||||||
Other operating expenses | (1,270 | ) | (842 | ) | (1,461 | ) | (1,004 | ) | ||||||||||||
Impairment losses | (2,396 | ) | (637 | ) | (2,396 | ) | (637 | ) | ||||||||||||
3. | Operating profit | 4,433 | 8,517 | 4,288 | 8,362 | |||||||||||||||
Add: Non-operating income | 7 | 11 | 7 | 11 | ||||||||||||||||
Less: Non-operating expenses | (30 | ) | (9 | ) | (29 | ) | (9 | ) | ||||||||||||
4. | Net profit before income tax expenses | 4,410 | 8,519 | 4,266 | 8,364 | |||||||||||||||
Less: Income tax expenses | (609 | ) | (1,548 | ) | (561 | ) | (1,505 | ) | ||||||||||||
5. | Net profit | 3,801 | 6,971 | 3,705 | 6,859 | |||||||||||||||
6. | Attributable to: | |||||||||||||||||||
— shareholders of the Company | 3,753 | 6,911 | ||||||||||||||||||
— minority interests | 48 | 60 | ||||||||||||||||||
7. | Earnings per share | |||||||||||||||||||
Basic earnings per share | RMB0.13 | RMB0.24 | ||||||||||||||||||
Diluted earnings per share | RMB0.13 | RMB0.24 | ||||||||||||||||||
8. | Other Comprehensive income/(losses) | (24,731 | ) | 7,954 | (24,650 | ) | 7,908 | |||||||||||||
9. | Total Comprehensive income/(losses) | (20,930 | ) | 14,925 | (20,945 | ) | 14,767 | |||||||||||||
Attributable to shareholders of the Company | (20,960 | ) | 14,859 | |||||||||||||||||
Attributable to minority interests | 30 | 66 |
Yuan Li | Liu Jiade | Hwei-Chung Shao | Yang Zheng | |||
Chairman | Vice President | Chief Actuary | Head of | |||
in charge of | Financial | |||||
Accounting Affairs | Department |
12
Commission File Number 001-31914
4.3 Cash flow statement for the third quarter of 2011 (unaudited)
RMB million (Unless otherwise stated)
For the nine months ended | For the nine months ended | |||||||||||||||||||
30 September | 30 September | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Group | Group | Company | Company | |||||||||||||||||
1. | Cash flows from operating activities | |||||||||||||||||||
Premiums received | 257,781 | 252,295 | 257,781 | 252,295 | ||||||||||||||||
Net increase in policyholder deposits | — | 1,060 | — | 1,060 | ||||||||||||||||
Cash received from other operating activities | 1,471 | 1,626 | 1,336 | 981 | ||||||||||||||||
Sub-total of cash inflows from operating activities | 259,252 | 254,981 | 259,117 | 254,336 | ||||||||||||||||
Cash paid for claims | (85,049 | ) | (57,272 | ) | (85,049 | ) | (57,272 | ) | ||||||||||||
Net cash paid for reinsurance business | (58 | ) | (33 | ) | (58 | ) | (33 | ) | ||||||||||||
Net decrease in policyholder deposits | (68 | ) | — | (68 | ) | — | ||||||||||||||
Cash paid for brokerage and commission fees | (21,077 | ) | (19,565 | ) | (21,077 | ) | (19,565 | ) | ||||||||||||
Cash paid for policyholder dividends | (8,427 | ) | (5,445 | ) | (8,427 | ) | (5,445 | ) | ||||||||||||
Cash paid to and for employees | (8,190 | ) | (6,986 | ) | (7,944 | ) | (6,788 | ) | ||||||||||||
Net cash paid for held-for-trading financial assets | (7,765 | ) | (107 | ) | (7,423 | ) | (98 | ) | ||||||||||||
Cash paid for taxes and surcharges | (5,449 | ) | (11,305 | ) | (5,260 | ) | (11,137 | ) | ||||||||||||
Cash paid for other operating activities | (8,356 | ) | (7,783 | ) | (8,096 | ) | (7,540 | ) | ||||||||||||
Sub-total of cash outflows from operating activities | (144,439 | ) | (108,496 | ) | (143,402 | ) | (107,878 | ) | ||||||||||||
Net cash flows from operating activities | 114,813 | 146,485 | 115,715 | 146,458 | ||||||||||||||||
Yuan Li | Liu Jiade | Hwei-Chung Shao | Yang Zheng | |||
Chairman | Vice President | Chief Actuary | Head of | |||
in charge of | Financial | |||||
Accounting Affairs | Department |
13
Commission File Number 001-31914
4.3 | Cash flow statement for the third quarter of 2011 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||||||
30 September | 30 September | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Group | Group | Company | Company | |||||||||||||||||
2. | Cash flows from investing activities | |||||||||||||||||||
Cash received from sales and redemption of investments | 113,602 | 178,394 | 110,859 | 175,361 | ||||||||||||||||
Cash received from investment income | 35,107 | 31,127 | 34,871 | 30,985 | ||||||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 64 | 102 | 64 | 58 | ||||||||||||||||
Sub-total of cash inflows from investing activities | 148,773 | 209,623 | 145,794 | 206,404 | ||||||||||||||||
Cash paid for investments | (244,256 | ) | (304,522 | ) | (242,719 | ) | (301,406 | ) | ||||||||||||
Net increase in policy loans | (7,432 | ) | (7,288 | ) | (7,432 | ) | (7,288 | ) | ||||||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (3,124 | ) | (2,913 | ) | (3,012 | ) | (2,852 | ) | ||||||||||||
Net cash paid for financial assets purchased under agreements to resell | (525 | ) | (1,023 | ) | (480 | ) | (1,023 | ) | ||||||||||||
Sub-total of cash outflows from investing activities | (255,337 | ) | (315,746 | ) | (253,643 | ) | (312,569 | ) | ||||||||||||
Net cash flows from investing activities | (106,564 | ) | (106,123 | ) | (107,849 | ) | (106,165 | ) | ||||||||||||
Yuan Li | Liu Jiade | Hwei-Chung Shao | Yang Zheng | |||
Chairman | Vice President | Chief Actuary | Head of | |||
in charge of | Financial | |||||
Accounting Affairs | Department |
14
Commission File Number 001-31914
4.3 | Cash flow statement for the third quarter of 2011 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||||||
30 September | 30 September | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Group | Group | Company | Company | |||||||||||||||||
3. | Cash flows from financing activities | |||||||||||||||||||
Net cash received from financial assets sold under agreements to repurchase | 2,237 | — | 2,450 | — | ||||||||||||||||
Sub-total of cash inflows from financing activities | 2,237 | — | 2,450 | — | ||||||||||||||||
Net cash paid for financial assets sold under agreements to repurchase | — | (17,371 | ) | — | (16,915 | ) | ||||||||||||||
Cash paid for dividends and interest | (11,364 | ) | (19,785 | ) | (11,306 | ) | (19,785 | ) | ||||||||||||
Sub-total of cash outflows from financing activities | (11,364 | ) | (37,156 | ) | (11,306 | ) | (36,700 | ) | ||||||||||||
Net cash flows from financing activities | (9,127 | ) | (37,156 | ) | (8,856 | ) | (36,700 | ) | ||||||||||||
4 | Effect of changes in foreign exchange rate on cash and cash equivalents | (393 | ) | (108 | ) | (392 | ) | (107 | ) | |||||||||||
5. | Net increase/(decrease) in cash and cash equivalents | (1,271 | ) | 3,098 | (1,382 | ) | 3,486 | |||||||||||||
Add: Opening balance of cash and cash equivalents | 47,854 | 36,197 | 47,545 | 35,582 | ||||||||||||||||
6. | Closing balance of cash and cash equivalents | 46,583 | 39,295 | 46,163 | 39,068 | |||||||||||||||
Yuan Li | Liu Jiade | Hwei-Chung Shao | Yang Zheng | |||
Chairman | Vice President | Chief Actuary | Head of | |||
in charge of | Financial | |||||
Accounting Affairs | Department |
15