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)
2012 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 2012 have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited. Net profit attributable to equity holders of the Company and equity attributable to equity holders 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 | All of the Board of Directors of the Company attended the Board Meeting. |
1.3 | The Company’s 2012 third quarter financial report is unaudited. |
1.4 | Mr. Yang Mingsheng, Chairman of the Company, Mr. Liu Jiade, Vice President in charge of financial affairs, Mr. Li Mingguang, Chief Actuary and Mr. Yang Zheng, Head of the Financial Department, confirm that the financial reports in this 2012 third quarter report are true and complete. |
2. | Basic Information of the Company |
2.1 Major accounting data and financial indicators
(Currency: RMB)
As at 30 September 2012 | As at 31 December 2011 | Increase/(decrease) compared to 31 December 2011 | ||||||||||||||
Total assets(million) | 1,783,808 | 1,583,907 | 12.6 | % | ||||||||||||
Total equity holders’ equity(million) | 212,119 | 191,530 | 10.7 | % | ||||||||||||
Equity holders’ equity per share(RMB per share) | 7.50 | 6.78 | 10.7 | % | ||||||||||||
For the nine months ended 30 September 2012 | Increase/(decrease) compared to the same period of 2011 | |||||||||||||||
Net cash flows from operating activities(million) | 91,888 | -20.0 | % | |||||||||||||
Net cash flows from operating activities per share (RMB per share) | 3.25 | -20.0 | % | |||||||||||||
For the reporting period (from July to September) | For the same period of 2011 (from July to September) | For the nine months ended 30 September 2012 | Increase/(decrease) compared to the same period of 2011 (from July to September) | |||||||||||||
Net profit attributable to equity holders of the Company (million) | (2,207 | ) | 3,753 | 7,428 | Not applicable | |||||||||||
Basic earnings per share(RMB per share) | (0.08 | ) | 0.13 | 0.26 | Not applicable | |||||||||||
Basic earnings per share after deducting non-recurring items(RMB per share) | (0.08 | ) | 0.13 | 0.26 | Not applicable | |||||||||||
Diluted earnings per share(RMB per share) | (0.08 | ) | 0.13 | 0.26 | Not applicable | |||||||||||
Weighted average ROE(%) | -1.04 | 2.01 | 3.67 | A decrease of 3.05 percentage points | ||||||||||||
Weighted average ROE after deducting non-recurring items(%) | -1.03 | 2.02 | 3.68 | A decrease of 3.05 percentage points |
Note: | Equity holders’ equity refers to equity attributable to equity holders of the Company, while net profit refers to net profit attributable to equity holders of the Company. |
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As at 30 September 2012, investment assets of the Company were RMB1,674,007 million. For the nine months ended 30 September 2012, the net investment yield was 4.49% (net investment income including interest income from debt securities and bank deposits, dividends from equity securities, and interest income from policy loans and debt plan investments), the gross investment yield was 2.17% (the gross investment yield ={[(Investment income – share of results of associates + Fair value gains/(losses) – Impairment losses of investment assets – Business tax and surcharges for investment)/((Investment assets at the beginning of the period + Investment assets at the end of the period)/2)]/274}×366), the surrender rate was 2.08%, and premiums earned was RMB261,013 million, a decrease of 0.7%.
Deducting Non-recurring Items and Amount
RMB million
For the nine months ended 30 September 2012 | ||||
Non-recurring items | ||||
Gains on disposal of non-current assets | 6 | |||
Government subsidies included in current gains/(losses) | 4 | |||
Net non-operating income and expenses other than those mentioned above | (33 | ) | ||
Effect of income tax | 6 | |||
Attribute to non-controlling interest | – | |||
Total | (17 | ) |
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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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 as at the end of the reporting period | Number of A share holders: 210,377 | |||||||
Number of H share holders: 35,926 | ||||||||
Particulars of the top ten shareholders of listed shares not subject to selling restrictions
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Name of shareholders (Full name) | Number of listed shares not subject to selling restrictions held as at the end of the reporting period | Type | ||||||
China Life Insurance (Group) Company | 19,323,530,000 | A shares | ||||||
HKSCC Nominees Limited | 7,274,330,150 | H shares | ||||||
State Development & Investment Corporation | 35,685,900 | A shares | ||||||
Bosera Value Growth Securities Investment Fund | 32,210,389 | A shares | ||||||
PICC Life Insurance Company Limited – Participating – Participating Products of Individual Life Insurance | 29,614,977 | A shares | ||||||
National Social Security Fund – Portfolio 103 | 27,302,792 | A shares | ||||||
China Construction Bank – Bosera Theme Industry Stock Securities Investment Fund | 27,136,300 | A shares | ||||||
China National Investment & Guaranty Co., Ltd | 25,390,000 | A shares | ||||||
ICBC – Invesco Great Wall Selected Blue Chip Stock Securities Investment Fund | 20,303,852 | A shares | ||||||
China National Nuclear Corporation | 20,000,000 | A shares |
3. | Significant Events |
3.1 | Particulars of, and reasons for, material changes in major accounting items and financial indicators of the Company |
x Applicable ¨ Not applicable
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(1) Changes in key financial indicators and their reasons
RMB million
Key Financial Indicators | As at 30 September 2012 | As at 31 December 2011 | Increase/ (decrease) | Main reasons | ||||||||||
Total assets | 1,783,808 | 1,583,907 | 12.6 | % | Accumulation of insurance business assets | |||||||||
Total liabilities | 1,569,729 | 1,390,519 | 12.9 | % | New insurance business and the accumulation of insurance liabilities | |||||||||
Total equity holders’ equity | 212,119 | 191,530 | 10.7 | % | The combined effects of the change in the fair value of available-for-sale financial assets, the distribution of previous year’s cash dividends to shareholders and the influence from net profit attributable to equity holders of the Company for the nine months ended 30 September 2012 |
RMB million
Key Financial Indicators | For the nine months ended 30 September 2012 | For the nine months ended 30 September 2011 | Increase/ (decrease) | Main reasons | ||||||||||
Operating profit | 7,417 | 19,349 | -61.7 | % | Decline in investment yield and increase in impairment losses resulting from continued weakness in the capital markets | |||||||||
Net profit attributable to equity holders of the Company | 7,428 | 16,717 | -55.6 | % | Decline in investment yield and increase in impairment losses resulting from continued weakness in the capital markets |
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(2) Material changes in major accounting items and their reasons
RMB million
Key Financial Indicators | As at 30 September 2012 | As at 31 December 2011 | Increase/ (decrease) | Main reasons | ||||||||||
Held-for-trading financial assets | 46,263 | 23,640 | 95.7 | % | The Company’s increased allocation in held- for-trading financial assets in light of market conditions | |||||||||
Interest receivables | 31,913 | 22,946 | 39.1 | % | Increase in the volume of fixed-income investment assets | |||||||||
Premiums receivables | 14,011 | 8,253 | 69.8 | % | Accumulation of renewal premiums | |||||||||
Held-to-maturity investments | 387,377 | 261,933 | 47.9 | % | The Company having increased the volume of held-to-maturity assets in light of market conditions | |||||||||
Securities sold under agreement to repurchase | 17,603 | 13,000 | 35.4 | % | The needs for liquidity management | |||||||||
Claims payable | 16,195 | 11,954 | 35.5 | % | Increase in maturity benefits payable | |||||||||
Bonds payable | 57,983 | 29,990 | 93.3 | % | The issuance of subordinated term debts by the Company in the first half of 2012 | |||||||||
Capital reserve | 53,918 | 34,256 | 57.4 | % | Impacts of the fluctuation in the capital markets and recognizing impairment losses of investment assets |
RMB million
Key Financial Indicators | For the nine months ended 30 September 2012 | For the nine months ended 30 September 2011 | Increase/ (decrease) | Main reasons | ||||||||||
Unearned premium reserves | 1,754 | 1,262 | 39.0 | % | The variation of the pace of development of short-term insurance business | |||||||||
Fair value gains/(losses) | (1,336 | ) | (286 | ) | 367.1 | % | Decrease in the fair value of held-for-trading financial assets resulting from continued weakness in the capital markets | |||||||
Policyholder dividends | 1,097 | 6,428 | -82.9 | % | Decrease in investment yields for participating products | |||||||||
Other operating expenses | 4,697 | 3,091 | 52.0 | % | Increase in interest payments for subordinated term debts | |||||||||
Impairment losses | 29,024 | 5,996 | 384.1 | % | Increase in equity securities which meet the conditions for recognizing impairment losses resulting from continued weakness in the capital markets | |||||||||
Income tax expenses | (196 | ) | 2,462 | Not applicable | The combined effects of the decrease in profit before income tax and the continuous high-level of non-taxable income |
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3.2 | Explanation and analysis of significant events and their impacts and solutions |
x Applicable ¨ Not applicable
With the approvals from the seventeenth meeting of the third session of Board and the 2011 Annual General Meeting, the Company may, subject to the approvals from relevant regulatory authorities, (1) issue subordinated term debts in the PRC with an aggregate amount of not exceeding RMB38 billion, which will be issued in one or more tranche(s) to qualified investors who meet the relevant regulatory requirements, with a term of no less than 10 years and by reference to market interest rate; and (2) depending on the market condition, issue subordinated debt financing instruments outside the PRC with an aggregate amount of not exceeding RMB8 billion or its equivalent in other foreign currency.
With the approval from China Insurance Regulatory Commission, the Company issued subordinated term debts of RMB28 billion in June 2012 in the PRC to qualified investors who meet the relevant regulatory requirements. Such issuance of subordinated term debts is the first tranche issued within the approved limit. The proceeds from the issuance of subordinated term debts would be used to replenish the Company’s supplementary capital and to raise the solvency ratio according to applicable laws and regulations and approvals from regulatory authorities. For details as to the issuance of the subordinated term debts, please refer to the announcements of the Company posted on the website of the Shanghai Stock Exchange and the HKExnews website of the Hong Kong Exchanges and Clearing Limited on 27 March 2012, 5 April 2012, 23 May 2012, 30 June 2012 and 17 July 2012, respectively.
3.3 | Implementation of undertakings by the Company, its shareholders and de facto controller |
x Applicable ¨ 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.
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3.4 | Warnings and explanation for any forecasted losses or significant changes (as compared to the same period of last year) in accumulated net profit from the beginning of the year to the end of the next reporting period |
¨ Applicable x Not applicable
3.5 | The implementation of cash dividend policy during the reporting period |
¨ Applicable x 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. Yang Mingsheng, Mr. Wan Feng, Mr. Lin Dairen, | |
Ms. Liu Yingqi | ||
Non-executive Directors: | Mr. Miao Jianmin, Mr. Zhang Xiangxian, | |
Mr. Wang Sidong | ||
Independent non-executive Directors: | Mr. Sun Changji, Mr. Bruce Douglas Moore, | |
Mr. Anthony Francis Neoh, Mr. Tang Jianbang |
Hong Kong,
26 October 2012
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4. Appendix
4.1 Balance sheet as at 30 September 2012 (unaudited)
RMB million (Unless otherwise stated)
As at 30 September 2012 Group | As at 31 December 2011 Group | As at 30 September 2012 Company | As at 31 December 2011 Company | |||||||||||||
ASSETS | ||||||||||||||||
Assets | ||||||||||||||||
Cash fund | 48,067 | 55,971 | 47,580 | 55,571 | ||||||||||||
Held-for-trading financial assets | 46,263 | 23,640 | 46,158 | 23,400 | ||||||||||||
Securities purchased under agreements to resell | 572 | 2,370 | 465 | 2,170 | ||||||||||||
Interest receivables | 31,913 | 22,946 | 31,820 | 22,854 | ||||||||||||
Premiums receivables | 14,011 | 8,253 | 14,011 | 8,253 | ||||||||||||
Receivables from reinsurers | 27 | 27 | 27 | 27 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 89 | 76 | 89 | 76 | ||||||||||||
Claim reserves receivable from reinsurers | 45 | 45 | 45 | 45 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 16 | 12 | 16 | 12 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 763 | 718 | 763 | 718 | ||||||||||||
Policy loans | 38,009 | 32,321 | 38,009 | 32,321 | ||||||||||||
Debt plan investments | 37,203 | 28,783 | 37,013 | 28,593 | ||||||||||||
Other receivables | 6,811 | 3,906 | 6,717 | 3,687 | ||||||||||||
Term deposits | 618,823 | 520,793 | 617,523 | 519,493 | ||||||||||||
Available-for-sale financial assets | 491,540 | 562,948 | 489,734 | 560,674 | ||||||||||||
Held-to-maturity investments | 387,377 | 261,933 | 386,925 | 261,897 | ||||||||||||
Long-term equity investments | 27,022 | 24,448 | 30,412 | 28,313 | ||||||||||||
Statutory deposits | 6,153 | 6,153 | 5,653 | 5,653 | ||||||||||||
Constructions in progress | 4,406 | 3,082 | 4,392 | 3,068 | ||||||||||||
Fixed assets | 15,963 | 16,830 | 15,445 | 16,287 | ||||||||||||
Intangible assets | 6,495 | 6,564 | 6,447 | 6,514 | ||||||||||||
Other assets | 2,201 | 2,031 | 2,195 | 2,022 | ||||||||||||
Separate account assets | 39 | 57 | 39 | 57 | ||||||||||||
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Total Assets | 1,783,808 | 1,583,907 | 1,781,478 | 1,581,705 | ||||||||||||
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Yang Mingsheng Chairman | Liu Jiade Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Yang Zheng Head of Financial Department |
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4.1 | Balance sheet as at 30 September 2012 (unaudited) (continued) |
RMB million (Unless otherwise stated)
As at | As at | As at | As at | |||||||||||||
30 September | 31 December | 30 September | 31 December | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Liabilities | ||||||||||||||||
Securities sold under agreements to repurchase | 17,603 | 13,000 | 17,500 | 13,000 | ||||||||||||
Premiums received in advance | 1,404 | 3,719 | 1,404 | 3,719 | ||||||||||||
Brokerage and commission payable | 2,044 | 1,871 | 2,044 | 1,871 | ||||||||||||
Reinsurance payable | 95 | 55 | 95 | 55 | ||||||||||||
Salary and welfare payable | 2,979 | 4,776 | 2,654 | 4,438 | ||||||||||||
Taxes payable | 550 | 1,143 | 534 | 1,120 | ||||||||||||
Claims payable | 16,195 | 11,954 | 16,195 | 11,954 | ||||||||||||
Policyholder dividends payable | 40,643 | 46,368 | 40,643 | 46,368 | ||||||||||||
Other payable | 1,857 | 2,537 | 1,944 | 2,513 | ||||||||||||
Policyholder deposits | 67,719 | 69,740 | 67,719 | 69,740 | ||||||||||||
Unearned premium reserves | 7,465 | 5,698 | 7,465 | 5,698 | ||||||||||||
Claim reserves | 3,043 | 3,189 | 3,043 | 3,189 | ||||||||||||
Reserves for life insurance | 1,324,118 | 1,179,257 | 1,324,118 | 1,179,257 | ||||||||||||
Reserves for long-term health insurance | 14,649 | 11,229 | 14,649 | 11,229 | ||||||||||||
Bonds payable | 57,983 | 29,990 | 57,983 | 29,990 | ||||||||||||
Deferred tax liabilities | 4,798 | 1,454 | 4,880 | 1,539 | ||||||||||||
Other liabilities | 6,545 | 4,482 | 6,545 | 4,482 | ||||||||||||
Separate account liabilities | 39 | 57 | 39 | 57 | ||||||||||||
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Total liabilities | 1,569,729 | 1,390,519 | 1,569,454 | 1,390,219 | ||||||||||||
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Equity | ||||||||||||||||
Share capital | 28,265 | 28,265 | 28,265 | 28,265 | ||||||||||||
Capital reserve | 53,918 | 34,256 | 53,940 | 34,303 | ||||||||||||
Surplus reserve | 36,114 | 34,266 | 36,066 | 34,218 | ||||||||||||
General reserve | 14,852 | 14,852 | 14,852 | 14,852 | ||||||||||||
Retained earnings | 78,973 | 79,894 | 78,901 | 79,848 | ||||||||||||
Exchange differences from translating foreign currency financial statement | (3 | ) | (3 | ) | — | — | ||||||||||
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Attributable to equity holders of the Company | 212,119 | 191,530 | 212,024 | 191,486 | ||||||||||||
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Non-controlling interests | 1,960 | 1,858 | — | — | ||||||||||||
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Total equity | 214,079 | 193,388 | 212,024 | 191,486 | ||||||||||||
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Total liabilities and equity | 1,783,808 | 1,583,907 | 1,781,478 | 1,581,705 | ||||||||||||
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Yang Mingsheng Chairman | Liu Jiade VicePresidentinchargeof AccountingAffairs | Li Mingguang ChiefActuary | Yang Zheng Headof Financial Department |
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4.2 | Income statement for the third quarter of 2012 (unaudited) |
RMB million (Unless otherwise stated)
For the nine months ended | For the nine months ended | |||||||||||||||
30 September | 30 September | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Operating income | 320,504 | 314,826 | 320,142 | 314,495 | ||||||||||||
Premiums earned | 261,013 | 262,768 | 261,013 | 262,768 | ||||||||||||
Premium income | 263,056 | 264,217 | 263,056 | 264,217 | ||||||||||||
Less: Premiums ceded to reinsurers | (289 | ) | (187 | ) | (289 | ) | (187 | ) | ||||||||
Unearned premium reserves | (1,754 | ) | (1,262 | ) | (1,754 | ) | (1,262 | ) | ||||||||
Investment income | 58,477 | 50,899 | 58,395 | 50,796 | ||||||||||||
Including: share of results of associates | 2,161 | 1,625 | 2,161 | 1,625 | ||||||||||||
Fair value gains/(losses) | (1,336 | ) | (286 | ) | (1,333 | ) | (269 | ) | ||||||||
Foreign exchange gains/(losses) | 61 | (443 | ) | 61 | (442 | ) | ||||||||||
Other operating income | 2,289 | 1,888 | 2,006 | 1,642 | ||||||||||||
2. Operating expenses | (313,087 | ) | (295,477 | ) | (313,037 | ) | (295,475 | ) | ||||||||
Surrenders | (29,951 | ) | (27,649 | ) | (29,951 | ) | (27,649 | ) | ||||||||
Claims expense | (63,323 | ) | (60,922 | ) | (63,323 | ) | (60,922 | ) | ||||||||
Less: claims recoverable from reinsurers | 79 | 69 | 79 | 69 | ||||||||||||
Increase in insurance contracts reserve | (148,136 | ) | (155,550 | ) | (148,136 | ) | (155,550 | ) | ||||||||
Less: insurance reserves recoverable from reinsurers | 49 | 7 | 49 | 7 | ||||||||||||
Policyholder dividends | (1,097 | ) | (6,428 | ) | (1,097 | ) | (6,428 | ) | ||||||||
Business tax and surcharges | (926 | ) | (913 | ) | (878 | ) | (869 | ) | ||||||||
Underwriting and policy acquisition costs | (20,699 | ) | (21,069 | ) | (20,699 | ) | (21,069 | ) | ||||||||
Administrative expenses | (15,473 | ) | (13,979 | ) | (14,902 | ) | (13,488 | ) | ||||||||
Less: expenses recoverable from reinsurers | 111 | 44 | 111 | 44 | ||||||||||||
Other operating expenses | (4,697 | ) | (3,091 | ) | (5,266 | ) | (3,624 | ) | ||||||||
Impairment losses | (29,024 | ) | (5,996 | ) | (29,024 | ) | (5,996 | ) | ||||||||
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3. Operating profit | 7,417 | 19,349 | 7,105 | 19,020 | ||||||||||||
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Add: Non-operating income | 43 | 48 | 42 | 47 | ||||||||||||
Less: Non-operating expenses | (66 | ) | (60 | ) | (66 | ) | (59 | ) | ||||||||
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4. Net profit before income tax | 7,394 | 19,337 | 7,081 | 19,008 | ||||||||||||
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Less: Income tax expenses | 196 | (2,462 | ) | 321 | (2,323 | ) | ||||||||||
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5. Net profit | 7,590 | 16,875 | 7,402 | 16,685 | ||||||||||||
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6. Attributable to: | ||||||||||||||||
– equity holders of the Company | 7,428 | 16,717 | ||||||||||||||
– non-controlling interests | 162 | 158 | ||||||||||||||
7. Earnings per share | ||||||||||||||||
Basic earnings per share | RMB 0.26 | RMB 0.59 | ||||||||||||||
Diluted earnings per share | RMB 0.26 | RMB 0.59 | ||||||||||||||
8. Other Comprehensive income | 19,667 | (38,072 | ) | 19,637 | (37,913 | ) | ||||||||||
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9. Total Comprehensive income | 27,257 | (21,197 | ) | 27,039 | (21,228 | ) | ||||||||||
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Attributable to equity holders of the Company | 27,090 | (21,313 | ) | |||||||||||||
Attributable to non-controlling interests | 167 | 116 |
Yang Mingsheng | Liu Jiade | Li Mingguang | Yang Zheng | |||
Chairman | Vice President in charge of | Chief Actuary | Head of | |||
Accounting Affairs | Financial Department |
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4.2 | Income statement for the third quarter of 2012 (unaudited) |
RMB million (Unless otherwise stated)
For the three months ended | For the three months ended | |||||||||||||||
30 September | 30 September | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Operating income | 95,244 | 82,932 | 95,070 | 82,797 | ||||||||||||
Premiums earned | 76,274 | 67,919 | 76,274 | 67,919 | ||||||||||||
Premium income | 77,618 | 68,727 | 77,618 | 68,727 | ||||||||||||
Less: Premiums ceded to reinsurers | (138 | ) | (63 | ) | (138 | ) | (63 | ) | ||||||||
Unearned premium reserves | (1,206 | ) | (745 | ) | (1,206 | ) | (745 | ) | ||||||||
Investment income | 19,065 | 15,033 | 19,000 | 14,982 | ||||||||||||
Including: share of results of associates | 640 | 456 | 640 | 456 | ||||||||||||
Fair value gains/(losses) | (931 | ) | (487 | ) | (929 | ) | (474 | ) | ||||||||
Foreign exchange gains/(losses) | 15 | (160 | ) | 15 | (160 | ) | ||||||||||
Other operating income | 821 | 627 | 710 | 530 | ||||||||||||
2. Operating expenses | (98,855 | ) | (78,499 | ) | (98,825 | ) | (78,509 | ) | ||||||||
Surrenders | (11,043 | ) | (10,019 | ) | (11,043 | ) | (10,019 | ) | ||||||||
Claims expense | (13,840 | ) | (15,023 | ) | (13,840 | ) | (15,023 | ) | ||||||||
Less: claims recoverable from reinsurers | 33 | 19 | 33 | 19 | ||||||||||||
Increase in insurance contracts reserve | (48,068 | ) | (38,620 | ) | (48,068 | ) | (38,620 | ) | ||||||||
Less: insurance reserves recoverable from reinsurers | 50 | 4 | 50 | 4 | ||||||||||||
Policyholder dividends | 1,398 | (664 | ) | 1,398 | (664 | ) | ||||||||||
Business tax and surcharges | (296 | ) | (256 | ) | (279 | ) | (241 | ) | ||||||||
Underwriting and policy acquisition costs | (6,130 | ) | (5,726 | ) | (6,130 | ) | (5,726 | ) | ||||||||
Administrative expenses | (5,261 | ) | (4,568 | ) | (5,054 | ) | (4,402 | ) | ||||||||
Less: expenses recoverable from reinsurers | 57 | 20 | 57 | 20 | ||||||||||||
Other operating expenses | (1,851 | ) | (1,270 | ) | (2,045 | ) | (1,461 | ) | ||||||||
Impairment losses | (13,904 | ) | (2,396 | ) | (13,904 | ) | (2,396 | ) | ||||||||
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3. Operating profit | (3,611 | ) | 4,433 | (3,755 | ) | 4,288 | ||||||||||
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Add: Non-operating income | 16 | 7 | 16 | 7 | ||||||||||||
Less: Non-operating expenses | (23 | ) | (30 | ) | (23 | ) | (29 | ) | ||||||||
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4. Net profit before income tax | (3,618 | ) | 4,410 | (3,762 | ) | 4,266 | ||||||||||
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Less: Income tax expenses | 1,467 | (609 | ) | 1,504 | (561 | ) | ||||||||||
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5. Net profit | (2,151 | ) | 3,801 | (2,258 | ) | 3,705 | ||||||||||
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6. Attributable to: | ||||||||||||||||
– equity holders of the Company | (2,207 | ) | 3,753 | |||||||||||||
– non-controlling interests | 56 | 48 | ||||||||||||||
7. Earnings per share | ||||||||||||||||
Basic earnings per share | RMB (0.08 | ) | RMB 0.13 | |||||||||||||
Diluted earnings per share | RMB (0.08 | ) | RMB 0.13 | |||||||||||||
8. Other Comprehensive income | 844 | (24,731 | ) | 883 | (24,650 | ) | ||||||||||
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9. Total Comprehensive income | (1,307 | ) | (20,930 | ) | (1,375 | ) | (20,945 | ) | ||||||||
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Attributable to equity holders of the Company | (1,354 | ) | (20,960 | ) | ||||||||||||
Attributable to non-controlling interests | 47 | 30 |
Yang Mingsheng Chairman | Liu Jiade VicePresidentinchargeof AccountingAffairs | Li Mingguang ChiefActuary | Yang Zheng Headof Financial Department |
12
4.3 | Cash flow statement for the third quarter of 2012 (unaudited) |
RMB million (Unless otherwise stated)
For the nine months ended | For the nine months ended | |||||||||||||||
30 September | 30 September | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Cash flows from operating activities | ||||||||||||||||
Premiums received | 254,984 | 257,781 | 254,984 | 257,781 | ||||||||||||
Cash received from other operating activities | 2,213 | 1,471 | 1,655 | 1,336 | ||||||||||||
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Sub-total of cash inflows from operating activities | 257,197 | 259,252 | 256,639 | 259,117 | ||||||||||||
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Cash paid for claims | (89,033 | ) | (85,049 | ) | (89,033 | ) | (85,049 | ) | ||||||||
Net cash paid for reinsurance business | (59 | ) | (58 | ) | (59 | ) | (58 | ) | ||||||||
Net decrease in policyholder deposits | (3,083 | ) | (68 | ) | (3,083 | ) | (68 | ) | ||||||||
Cash paid for brokerage and commission fees | (20,526 | ) | (21,077 | ) | (20,526 | ) | (21,077 | ) | ||||||||
Cash paid for policyholder dividends | (6,822 | ) | (8,427 | ) | (6,822 | ) | (8,427 | ) | ||||||||
Cash paid to and for employees | (9,097 | ) | (8,190 | ) | (8,786 | ) | (7,944 | ) | ||||||||
Net cash paid for held-for-trading financial assets | (22,073 | ) | (7,765 | ) | (22,200 | ) | (7,423 | ) | ||||||||
Cash paid for taxes and surcharges | (7,022 | ) | (5,449 | ) | (6,818 | ) | (5,260 | ) | ||||||||
Cash paid for other operating activities | (7,594 | ) | (8,356 | ) | (7,727 | ) | (8,096 | ) | ||||||||
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Sub-total of cash outflows from operating activities | (165,309 | ) | (144,439 | ) | (165,054 | ) | (143,402 | ) | ||||||||
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Net cash flows from operating activities | 91,888 | 114,813 | 91,585 | 115,715 | ||||||||||||
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Yang Mingsheng | Liu Jiade | Li Mingguang | Yang Zheng | |||
Chairman | Vice President in charge of | Chief Actuary | Head of | |||
Accounting Affairs | Financial Department |
13
4.3 | Cash flow statement for the third quarter of 2012 (unaudited)(continued) |
RMB million (Unless otherwise stated)
For the nine months ended | For the nine months ended | |||||||||||||||
30 September | 30 September | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
2. Cash flows from investing activities | ||||||||||||||||
Cash received from sales and redemption of investments | 154,007 | 113,602 | 152,441 | 110,859 | ||||||||||||
Cash received from investment income | 41,150 | 35,107 | 41,070 | 34,871 | ||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 56 | 64 | 56 | 64 | ||||||||||||
Net cash received from securities purchased under agreements to resell | 2,387 | — | 2,290 | — | ||||||||||||
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| |||||||||
Sub-total of cash inflows from investing activities | 197,600 | 148,773 | 195,857 | 145,794 | ||||||||||||
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Cash paid for investments | (315,861 | ) | (244,256 | ) | (313,888 | ) | (242,719 | ) | ||||||||
Net increase in policy loans | (5,688 | ) | (7,432 | ) | (5,688 | ) | (7,432 | ) | ||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (1,791 | ) | (3,124 | ) | (1,769 | ) | (3,012 | ) | ||||||||
Net cash paid for securities purchased under agreements to resell | — | (525 | ) | — | (480 | ) | ||||||||||
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Sub-total of cash outflows from investing activities | (323,340 | ) | (255,337 | ) | (321,345 | ) | (253,643 | ) | ||||||||
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| |||||||||
Net cash flows from investing activities | (125,740 | ) | (106,564 | ) | (125,488 | ) | (107,849 | ) | ||||||||
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3. Cash flows from financing activities | ||||||||||||||||
Proceeds from issuance of subordinated debts | 27,992 | — | 27,992 | — | ||||||||||||
Net cash received from securities sold under agreements to repurchase | 4,519 | 2,237 | 4,418 | 2,450 | ||||||||||||
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| |||||||||
Sub-total of cash inflows from financing activities | 32,511 | 2,237 | 32,410 | 2,450 | ||||||||||||
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|
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| |||||||||
Cash paid for dividends and interest | (6,566 | ) | (11,364 | ) | (6,501 | ) | (11,306 | ) | ||||||||
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| |||||||||
Sub-total of cash outflows from financing activities | (6,566 | ) | (11,364 | ) | (6,501 | ) | (11,306 | ) | ||||||||
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| |||||||||
Net cash flows from financing activities | 25,945 | (9,127 | ) | 25,909 | (8,856 | ) | ||||||||||
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|
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| |||||||||
4. Effect of changes in foreign exchange rate on cash and cash equivalents | 10 | (393 | ) | 10 | (392 | ) | ||||||||||
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| |||||||||
5. Net increase/(decrease) in cash and cash equivalents | (7,897 | ) | (1,271 | ) | (7,984 | ) | (1,382 | ) | ||||||||
|
|
|
|
|
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| |||||||||
Add: Opening balance of cash and cash equivalents | 55,985 | 47,854 | 55,585 | 47,545 | ||||||||||||
|
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|
|
|
|
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| |||||||||
6. Closing balance of cash and cash equivalents | 48,088 | 46,583 | 47,601 | 46,163 | ||||||||||||
|
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|
|
|
|
|
Yang Mingsheng Chairman | Liu Jiade VicePresidentinchargeof AccountingAffairs | Li Mingguang ChiefActuary | Yang Zheng Headof Financial Department |
14