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)
2017 First Quarter Report
This announcement is made by China Life Insurance Company Limited pursuant to the inside information provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The financial data of the Company for the first quarter of 2017 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.
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1. | Important Notice |
1.1 | The Company’s Board of Directors, the Supervisory Committee, its Directors, Supervisors and Senior Management warrant that the information in this quarterly report is true, accurate and complete and contains no false representations, misleading statements or material omissions, and jointly and severally accept full legal responsibility. |
1.2 | Of the ten Directors of the Company, eight attended the Board Meeting. Chairman and Executive Director Yang Mingsheng, Executive Directors Lin Dairen, Xu Hengping and Xu Haifeng, and IndependentNon-executive Directors Chang Tso Tung Stephen, Robinson Drake Pike, Tang Xin and LeungOi-Sie Elsie attended the meeting.Non-executive Directors Wang Sidong and Liu Jiade could not attend the meeting due to other businesses, and gave written authorization to IndependentNon-executive Director Chang Tso Tung Stephen and Executive Director Xu Hengping, respectively, to act as proxies to attend and vote at the meeting. |
1.3 | The Company’s 2017 first quarter financial report is unaudited. |
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1.4 | Mr. Yang Mingsheng, Chairman of the Company, Mr. Zhao Lijun, Vice President in charge of accounting affairs, Mr. Li Mingguang, Chief Actuary and Mr. Zheng Zhiwu, Head of the Accounting Department, confirm that the financial reports in this 2017 first quarter report are true, accurate and complete. |
2. | The Company’s Fundamental Information |
2.1 | Majorfinancialdata |
(Currency: RMB) | ||||||||||||
As at 31 March 2017 | As at 31 December 2016 | Increase/(decrease) compared to 31 December 2016 | ||||||||||
Total assets(million) | 2,805,702 | 2,696,951 | 4.0 | % | ||||||||
Total equity holders’ equity(million) | 309,087 | 303,621 | 1.8 | % | ||||||||
Ordinary share holders’ equity per share(RMB per share) | 10.66 | 10.47 | 1.8 | % | ||||||||
For the three months ended 31 March 2017 | For the three months ended 31 March 2016 | Increase/(decrease) compared to the same period of 2016 | ||||||||||
Net cash flows from operating activities(million) | 105,981 | 354 | 29838.1 | % | ||||||||
Net cash flows from operating activities per share(RMB per share) | 3.75 | 0.01 | 29838.1 | % | ||||||||
For the three months ended 31 March 2017 | For the three months ended 31 March 2016 | Increase/(decrease) compared to the same period of 2016 | ||||||||||
Operating income(million) | 271,728 | 219,981 | 23.5 | % | ||||||||
Net profit attributable to equity holders of the Company(million) | 6,149 | 5,251 | 17.1 | % | ||||||||
Net profit attributable to equity holders of the Company after deductingnon-recurring items(million) | 6,158 | 5,282 | 16.6 | % | ||||||||
Earnings per share (basic and diluted)(RMB per share) | 0.21 | 0.18 | 17.2 | % | ||||||||
Basic earnings per share after deductingnon-recurring items(RMB per share) | 0.21 | 0.18 | 16.7 | % | ||||||||
Weighted average ROE(%) | 2.03 | 1.66 | | An increase of 0.37 percentage point | | |||||||
Weighted average ROE after deductingnon-recurring items(%) | 2.03 | 1.67 | | An increase of 0.36 percentage point | |
Note: | When calculating the change ratio of “Earnings per share (basic and diluted)”, factors of tail differences have been taken into account. |
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During the first quarter of 2017, by taking the acceleration of development as the first priority, the transformation and upgrading as the strategic support, and the prevention and control of risks as the key safeguards, the Company has strengthened and consolidated its foundation and madedown-to-earth efforts. Building upon a high starting point and platform, the Company maintained a good development momentum. First of all, the Company experienced a faster growth in its core businesses. During the first quarter of 2017, the Company’s revenue from insurance businesses1 reached RMB246,208 million, an increase of 22.1% year on year. In particular,first-year regular premiums were RMB60,314 million, an increase of 17.4% year on year;first-year regular premiums with ten years or longer payment duration reached RMB22,455 million, an increase of 16.8% year on year; premiums from short-term insurance were RMB12,459 million, an increase of 7.6% year on year; renewal premiums were RMB112,758 million, an increase of 51.6% year on year, the growth rate of which set a record high since 2003. During the first quarter of 2017, the surrender rate was 2.79%, an increase of 0.38 percentage point year on year. Secondly, the Company is committed to a high standard of business structure and continually optimized its business structure. The Company’s protection type business achieved rapid growth with its products further diversified. Besides, the Company further reduced its single premium business with the percentage offirst-year regular premiums inlong-term new policy premiums reached 49.85%, an increase of 5.45 percentage points year on year. Thirdly, the Company constantly improved the allocation of its investment assets. During the first quarter of 2017, the Company consistently optimized its assets structure and increased allocation in diversified assets with long duration. As at 31 March 2017, the Company’s investment assets were RMB2,539,895 million, the net investment yield2 was 4.68% and the gross investment yield3 was 4.53%, an increase of 0.84 percentage point year on year.
As to the next step, the Company will, in accordance with the overall annual work plan, spare no effort in expanding the market, enhancing the investment management, strengthening the basis for development and accelerating transformation and upgrading, and the Company will push forward the sound and sustainable development with a new look and stronger growth engine.
1 | Revenue from insurance businesses is consistent with the premium income in the attached income statement. |
2 | Net investment income mainly includes interest income from debt securities and bank deposits, dividends from equity securities, interest income from loans and net income from investment properties, etc. |
3 | Gross investment yield ={[(Net investment income + Spread income of investment assets + Fair value gains/ (losses) through profit or loss – Impairment losses of investment assets) / ((Investment assets at the beginning of the period + Investment assets at the end of the period)/2)]/90}×365 |
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Non-recurring Items and Amount
RMB million | ||||
Non-recurring items | For the Reporting January to March) | |||
Gains/(losses) on disposal ofnon-current assets | 11 | |||
Government subsidies recognized in current gains/(losses) | 9 | |||
Netnon-operating income and expenses other than those mentioned above | (31 | ) | ||
Effect of income tax | 3 | |||
Attributable tonon-controlling interest | (1 | ) | ||
Total | (9 | ) |
Note: | As an insurance company, investment (asset management) is one of the major businesses of the Company. Therefore, thenon-recurring items do not include fair value gains/(losses) from financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss, as well as investment income from the disposal of financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss andavailable-for-sale financial assets. |
2.2 | Totalnumberofshareholdersandtheparticularsoftoptenshareholdersasattheendofthereportingperiod |
The total number of shareholders as at the end of the Reporting Period | Number of A Share shareholders: 123,285 | |||||||||
Number of H Share shareholders: 30,157 | ||||||||||
Particulars of the top ten shareholders | Unit: Share | |||||||||
Name of shareholders | Nature of shareholder | Percentage of shareholding | Number of shares | Number of to selling | Number of or frozen | |||||
China Life Insurance (Group) Company | State-owned legal person | 68.37% | 19,323,530,000 | — | — | |||||
HKSCC Nominees Limited | Overseas legal person | 25.88% | 7,315,183,949 | — | — | |||||
China Securities Finance Corporation Limited | State-owned legal person | 2.00% | 565,574,495 | — | — | |||||
Central Huijin Asset Management Limited | State-owned legal person | 0.42% | 119,719,900 | — | — | |||||
Industrial and Commercial Bank of China Limited – China Southern Flexible Allocation of Consumption and Vitality of Hybrid Securities Investment Fund | Other | 0.21% | 59,384,610 | — | — | |||||
Hong Kong Securities Clearing Company Limited | Overseas legal person | 0.11% | 32,481,525 | — | — | |||||
China International Television Corporation | State-owned legal person | 0.07% | 18,452,300 | — | — |
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China Universal Asset Management Co., Ltd – Industrial and Commercial Bank of China Limited – China Universal – Tianfu Bull No. 53 Asset Management Plan | Other | 0.05% | 15,015,845 | — | — | |||||
Harbin Hali Industry Company Limited | Domestic non state-owned legal person | 0.05% | 13,695,112 | — | — | |||||
China National Nuclear Corporation | State-owned legal person | 0.04% | 12,400,000 | — | — | |||||
Details of shareholders | 1. HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong Kong stock brokers and other participants of the CCASS system. The relevant regulations of the HKSE do not require such persons to declare whether their shareholdings are pledged or frozen. Hence, HKSCC Nominees Limited is unable to calculate or provide the number of shares that are pledged or frozen.
2. Industrial and Commercial Bank of China Limited – China Southern Flexible Allocation of Consumption and Vitality of Hybrid Securities Investment Fund has Industrial and Commercial Bank of China Limited as its fund depositary. China Universal Asset Management Co., Ltd – Industrial and Commercial Bank of China Limited – China Universal – Tianfu Bull No.53 Asset Management Plan has Industrial and Commercial Bank of China Limited as its asset trustee. Save as above, the Company was not aware of any connected relationship and concerted parties as defined by the “Measures for the Administration of the Takeover of Listed Companies” among the top ten shareholders of the Company. |
2.3 | Totalnumberofpreferenceshareholders,toptenpreferenceshareholders,andtheparticularsoftoptenpreferenceshareholderswithnosellingrestrictionsasattheendofthereportingperiod |
☐ Applicable ☒ Not applicable |
3. | Significant Events |
3.1 | ParticularsofandreasonsforchangesinmajoraccountingitemsandfinancialindicatorsoftheCompany |
☒ Applicable ☐ Not applicable |
(1) | Changes in key financial indicators and their reasons |
RMB million | ||||||||||||||
Key financial indicators | As at 31 March 2017 | As at 31 December 2016 | Increase/ (decrease) | Main reasons | ||||||||||
Total assets | 2,805,702 | 2,696,951 | 4.0 | % | Accumulation of insurance business assets and investment assets | |||||||||
Total liabilities | 2,492,466 | 2,389,303 | 4.3 | % | Increase in insurance reserves | |||||||||
Total equity holders’ equity | 309,087 | 303,621 | 1.8 | % | The impact of the profit made during the reporting period |
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RMB million | ||||||||||||||
Key financial indicators | For the three months ended 31 March 2017 | For the three months ended 31 March 2016 | Increase/ (decrease) | Main reasons | ||||||||||
Operating profit | 7,556 | 6,101 | 23.8 | % | The combined impact from the increase of the gross investment income, the optimization of business structure and the update of discount rate assumption of reserves of traditional insurance contracts | |||||||||
Net profit attributable to equity holders of the Company | 6,149 | 5,251 | 17.1 | % | The combined impact from the increase of the gross investment income, the optimization of business structure and the update of discount rate assumption of reserves of traditional insurance contracts |
(2) | Material changes in major accounting items and their reasons |
RMB million | ||||||||||||||
Key financial indicators | As at 31 March 2017 | As at 31 December 2016 | Increase/ (decrease) | Main reasons | ||||||||||
Premium receivables | 24,395 | 13,421 | 81.8 | % | Accumulation of renewal premiums | |||||||||
Other receivables | 18,429 | 12,136 | 51.9 | % | Impact from factors such as the increase of investment subscription receivable | |||||||||
Unearned premium reserves | 15,945 | 10,492 | 52.0 | % | Development ofshort-term insurance business and the variation of its schedule progress | |||||||||
RMB million | ||||||||||||||
Key financial indicators | For the three months ended 31 March 2017 | For the three months ended 31 March 2016 | Increase/ (decrease) | Main reasons | ||||||||||
Fair value gains/(losses) | 1,926 | (2,725 | ) | N/A | Fluctuation of the market value of theheld-for-trading financial assets | |||||||||
Policyholder dividends | 3,950 | 1,583 | 149.5 | % | Increase in investment yield from participating accounts |
3.2 | Explanationandanalysisofsignificanteventsandtheirimpactsandsolutions |
☒ Applicable ☐ Not applicable
In March 2017, the China Insurance Regulatory Commission issued theNoticeontheMattersregardingtheOptimizationoftheDiscountRateCurveUsedintheAssessmentofLiabilitiesofInsuranceContracts (Bao Jian Fa [2017] No. 23), which required insurance companies to adjust and optimize the discount rate assumption of traditional insurance (including basic
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interest rate curve and comprehensive spreads) in the assessment of liabilities of insurance contracts for the purpose of financial report with effect from 1 January 2017. In accordance with the relevant requirements and the above notice, the Company determined actuarial assumptions which include, among others, discount rates, mortality rates, morbidity rates, expenses assumptions, lapse rates and policy dividends assumptions based on current information available as at the date of the balance sheet. These assumptions were used to calculate the liabilities of insurance contracts as at the date of the balance sheet. The above changes in assumptions reduced profit before tax by RMB13,289 million in aggregate for the three months ended 31 March 2017. Please refer to the Announcement on Changes in Accounting Estimates published by the Company on Shanghai Stock Exchange website on 28 April 2017 for the details.
3.3 | Undertakingswerenotimplementedinduetimeduringthereportingperiod |
☒ 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 above-mentioned formalities within one 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, the ownership registration formalities of which had not been completed due to historical reasons, 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.
The Company’s Shenzhen Branch and the otherco-owners of the properties have issued a letter to the governing department of the original owner of the properties in respect of the confirmation of ownership of the properties, requesting it to report the ownership issue to the State-owned Assets Supervision and Administration Commission of the State Council (“SASAC”), and requesting the SASAC to confirm the respective shares of eachco-owner in the properties and to issue written documents in this regard to the department of land and resources of Shenzhen, so as to assist the Company and the otherco-owners to complete the formalities in relation to the division of ownership of the properties.
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Given that the change of ownership of the above two properties and related land use rights were directed by theco-owners, and all formalities in relation to the change of ownership were proceeded slowly due to reasons such as issues rooted in history and government approvals, CLIC, the controlling shareholder of the Company, made further commitment as follows: CLIC will assist the Company in completing, and urge theco-owners to complete the formalities in relation to the change of ownership in respect of the above two properties and related land use rights as soon as possible. If the formalities cannot be completed due to the reasons of theco-owners, CLIC will take any other legally practicable measures to resolve the issue and will bear any potential losses suffered by the Company as a result of the defective ownership.
3.4 | Warningsandexplanationforanyforecastedlossesorsignificantchanges(ascomparedtothesameperiodoflastyear)inaccumulatednetprofitfromthebeginningoftheyeartotheendofthenextreportingperiod |
☐ Applicable ☒ Not applicable
This announcement is published in both Chinese and English. The Chinese version announcement shall prevail.
By Order of the Board |
China Life Insurance Company Limited |
Heng Victor Ja Wei |
Company Secretary |
As at the date of this announcement, the Board of Directors of the Company comprises:
Executive Directors: | Yang Mingsheng, Lin Dairen, Xu Hengping, Xu Haifeng | |
Non-executive Directors: | Wang Sidong, Liu Jiade | |
Independent Non-executive Directors: | Chang Tso Tung Stephen, Robinson Drake Pike, | |
Tang Xin, LeungOi-Sie Elsie |
Hong Kong, 27 April 2017
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4. | Appendix |
4.1 | Balancesheetasat31March2017(unaudited) |
RMB million (Unless otherwise stated) | ||||||||||||||||
ASSETS | As at 2017 Group | As at 2016 Group | As at 2017 Company | As at 2016 Company | ||||||||||||
Assets | ||||||||||||||||
Cash fund | 52,900 | 67,318 | 49,597 | 62,592 | ||||||||||||
Financial assets at fair value through profit or loss | 161,226 | 209,126 | 154,986 | 204,048 | ||||||||||||
Securities purchased under agreements to resell | 40,659 | 43,531 | 39,787 | 43,093 | ||||||||||||
Interest receivables | 57,712 | 55,929 | 57,528 | 55,758 | ||||||||||||
Premiums receivables | 24,395 | 13,421 | 24,395 | 13,421 | ||||||||||||
Receivables from reinsurers | 105 | 123 | 105 | 123 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 196 | 125 | 196 | 125 | ||||||||||||
Claim reserves receivable from reinsurers | 89 | 103 | 89 | 103 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 269 | 182 | 269 | 182 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 1,629 | 1,601 | 1,629 | 1,601 | ||||||||||||
Other receivables | 18,429 | 12,136 | 11,171 | 4,998 | ||||||||||||
Loans | 241,921 | 226,573 | 236,884 | 221,535 | ||||||||||||
Term deposits | 511,982 | 538,325 | 509,012 | 535,361 | ||||||||||||
Available-for-sale financial assets | 846,797 | 766,423 | 835,306 | 758,802 | ||||||||||||
Held-to-maturity investments | 676,898 | 594,730 | 676,224 | 594,054 | ||||||||||||
Long-term equity investments | 121,699 | 119,766 | 129,183 | 125,587 | ||||||||||||
Statutory deposits | 6,333 | 6,333 | 5,653 | 5,653 | ||||||||||||
Investment properties | 1,179 | 1,191 | 1,235 | 1,247 | ||||||||||||
Constructions in progress | 11,879 | 10,548 | 11,105 | 10,387 | ||||||||||||
Fixed assets | 18,945 | 19,356 | 18,456 | 18,858 | ||||||||||||
Intangible assets | 6,443 | 6,062 | 5,727 | 5,768 | ||||||||||||
Other assets | 4,006 | 4,037 | 3,921 | 3,986 | ||||||||||||
Separate account assets | 11 | 12 | 11 | 12 | ||||||||||||
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Total Assets | 2,805,702 | 2,696,951 | 2,772,469 | 2,667,294 | ||||||||||||
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Yang Mingsheng | Zhao Lijun | Li Mingguang | Zheng Zhiwu | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
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4.1 | Balance sheet as at 31 March 2017 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
LIABILITIES AND EQUITY | As at 31 March 2017 Group | As at 31 December 2016 Group | As at 31 March 2017 Company | As at 31 December 2016 Company | ||||||||||||
Liabilities | ||||||||||||||||
Short-term borrowings | 737 | 731 | — | — | ||||||||||||
Financial liabilities at fair value through profit or loss | 1,972 | 2,031 | — | — | ||||||||||||
Securities sold under agreements to repurchase | 91,963 | 81,081 | 91,871 | 81,032 | ||||||||||||
Premiums received in advance | 3,930 | 35,252 | 3,930 | 35,252 | ||||||||||||
Brokerage and commission payable | 6,611 | 3,713 | 6,611 | 3,713 | ||||||||||||
Reinsurance payable | 684 | 436 | 684 | 436 | ||||||||||||
Salary and welfare payable | 6,387 | 7,888 | 5,770 | 7,120 | ||||||||||||
Taxes payable | 1,330 | 1,871 | 1,240 | 1,761 | ||||||||||||
Claims payable | 42,962 | 39,038 | 42,962 | 39,038 | ||||||||||||
Policyholder dividends payable | 85,679 | 87,725 | 85,679 | 87,725 | ||||||||||||
Other payable | 6,873 | 7,668 | 6,922 | 7,731 | ||||||||||||
Policyholder deposits | 218,960 | 195,694 | 218,960 | 195,694 | ||||||||||||
Unearned premium reserves | 15,945 | 10,492 | 15,945 | 10,492 | ||||||||||||
Claim reserves | 9,453 | 11,538 | 9,453 | 11,538 | ||||||||||||
Reserves for life insurance | 1,846,203 | 1,762,932 | 1,846,203 | 1,762,932 | ||||||||||||
Reserves for long-term health insurance | 69,591 | 63,024 | 69,591 | 63,024 | ||||||||||||
Long-term borrowings | 15,545 | 15,439 | — | — | ||||||||||||
Bonds payable | 37,999 | �� | 37,998 | 37,999 | 37,998 | |||||||||||
Deferred tax liabilities | 8,780 | 7,768 | 8,715 | 7,774 | ||||||||||||
Other liabilities | 20,851 | 16,972 | 12,363 | 11,436 | ||||||||||||
Separate account liabilities | 11 | 12 | 11 | 12 | ||||||||||||
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Total liabilities | 2,492,466 | 2,389,303 | 2,464,909 | 2,364,708 | ||||||||||||
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Equity | ||||||||||||||||
Share capital | 28,265 | 28,265 | 28,265 | 28,265 | ||||||||||||
Other equity instruments | 7,791 | 7,791 | 7,791 | 7,791 | ||||||||||||
Capital reserve | 54,971 | 55,007 | 54,314 | 54,350 | ||||||||||||
Accumulated other comprehensive income | 3,721 | 4,368 | 4,041 | 4,912 | ||||||||||||
Surplus reserve | 58,391 | 58,391 | 58,343 | 58,343 | ||||||||||||
General reserve | 27,246 | 27,241 | 26,954 | 26,954 | ||||||||||||
Retained earnings | 128,702 | 122,558 | 127,852 | 121,971 | ||||||||||||
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Attributable to equity holders of the Company | 309,087 | 303,621 | ||||||||||||||
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Non-controlling interests | 4,149 | 4,027 | ||||||||||||||
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Total equity | 313,236 | 307,648 | 307,560 | 302,586 | ||||||||||||
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Total liabilities and equity | 2,805,702 | 2,696,951 | 2,772,469 | 2,667,294 | ||||||||||||
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Yang Mingsheng | Zhao Lijun | Li Mingguang | Zheng Zhiwu | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
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4.2 | Income statement for the first quarter of 2017 (unaudited) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Operating income | 271,728 | 219,981 | 271,016 | 219,465 | ||||||||||||
Premiums earned | 240,152 | 196,430 | 240,152 | 196,430 | ||||||||||||
Premium income | 246,208 | 201,648 | 246,208 | 201,648 | ||||||||||||
Including: Reinsurance premium income | 1 | — | 1 | — | ||||||||||||
Less: Premiums ceded to reinsurers | (674 | ) | (255 | ) | (674 | ) | (255 | ) | ||||||||
Change in unearned premium reserves | (5,382 | ) | (4,963 | ) | (5,382 | ) | (4,963 | ) | ||||||||
Investment income | 28,217 | 25,108 | 28,050 | 24,915 | ||||||||||||
Including: Share of profit of associates and joint ventures | 1,443 | 564 | 1,415 | 534 | ||||||||||||
Fair value gains/(losses) | 1,926 | (2,725 | ) | 1,765 | (2,717 | ) | ||||||||||
Foreign exchange gains/(losses) | 45 | 51 | 17 | (27 | ) | |||||||||||
Other operating income | 1,388 | 1,117 | 1,032 | 864 | ||||||||||||
2. Operating expenses | (264,172 | ) | (213,880 | ) | (263,941 | ) | (213,818 | ) | ||||||||
Surrenders | (57,548 | ) | (45,548 | ) | (57,548 | ) | (45,548 | ) | ||||||||
Claims expense | (81,446 | ) | (68,397 | ) | (81,446 | ) | (68,397 | ) | ||||||||
Less: claims recoverable from reinsurers | 266 | 217 | 266 | 217 | ||||||||||||
Increase in insurance contracts reserve | (87,763 | ) | (69,721 | ) | (87,763 | ) | (69,721 | ) | ||||||||
Less: Insurance reserves recoverable from reinsurers | 101 | 18 | 101 | 18 | ||||||||||||
Policyholder dividends resulting from participation in profits | (3,950 | ) | (1,583 | ) | (3,950 | ) | (1,583 | ) | ||||||||
Tax and surcharges | (137 | ) | (495 | ) | (132 | ) | (463 | ) | ||||||||
Underwriting and policy acquisition costs | (21,763 | ) | (18,004 | ) | (21,763 | ) | (18,004 | ) | ||||||||
Administrative expenses | (6,782 | ) | (6,330 | ) | (6,440 | ) | (6,068 | ) | ||||||||
Less: Expenses recoverable from reinsurers | 83 | 22 | 83 | 22 | ||||||||||||
Other operating expenses | (4,420 | ) | (3,692 | ) | (4,536 | ) | (3,924 | ) | ||||||||
Impairment losses | (813 | ) | (367 | ) | (813 | ) | (367 | ) | ||||||||
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3. Operating profit | 7,556 | 6,101 | 7,075 | 5,647 | ||||||||||||
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Add:Non-operating income | 29 | 18 | 27 | 15 | ||||||||||||
Less:Non-operating expenses | (40 | ) | (61 | ) | (40 | ) | (61 | ) | ||||||||
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4. Net profit before income tax | 7,545 | 6,058 | 7,062 | 5,601 | ||||||||||||
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Less: Income tax expenses | (1,262 | ) | (694 | ) | (1,181 | ) | (609 | ) | ||||||||
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5. Net profit | 6,283 | 5,364 | 5,881 | 4,992 | ||||||||||||
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Yang Mingsheng | Zhao Lijun | Li Mingguang | Zheng Zhiwu | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
11
4.2 | Income statement for the first quarter of 2017 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
6. Attributable to: | ||||||||||||||||
– equity holders of the Company | 6,149 | 5,251 | ||||||||||||||
–non-controlling interests | 134 | 113 | ||||||||||||||
7. Earnings per share | ||||||||||||||||
Basic earnings per share | RMB | 0.21 | RMB | 0.18 | ||||||||||||
Diluted earnings per share | RMB | 0.21 | RMB | 0.18 | ||||||||||||
8. Other Comprehensive income | (659 | ) | (13,251 | ) | (871 | ) | (13,227 | ) | ||||||||
Other comprehensive income attributable to equity holders of the Company (net of tax) | (647 | ) | (13,240 | ) | ||||||||||||
Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax) | (647 | ) | (13,240 | ) | (871 | ) | (13,227 | ) | ||||||||
Fair value gains/(losses) onavailable-for-sale financial assets | (3,224 | ) | (21,086 | ) | (3,446 | ) | (21,051 | ) | ||||||||
Less: Amount transferred to net profit from other comprehensive income | 1,908 | 812 | 1,905 | 790 | ||||||||||||
Portion of fair value changes onavailable-for-sale financial assets attributable to participating policyholders | 867 | 7,247 | 867 | 7,247 | ||||||||||||
Share of other comprehensive income of associates and joint ventures under the equity method | (197 | ) | (213 | ) | (197 | ) | (213 | ) | ||||||||
Exchanges differences on translating foreign operations | (1 | ) | — | — | — | |||||||||||
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods (net of tax) | — | — | — | — | ||||||||||||
Other comprehensive income attributable tonon-controlling interests (net of tax) | (12 | ) | (11 | ) | ||||||||||||
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|
|
|
|
|
| |||||||||
9. Total Comprehensive income | 5,624 | (7,887 | ) | 5,010 | (8,235 | ) | ||||||||||
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|
|
|
|
|
| |||||||||
Attributable to equity holders of the Company | 5,502 | (7,989 | ) | |||||||||||||
Attributable tonon-controlling interests | 122 | 102 |
Yang Mingsheng | Zhao Lijun | Li Mingguang | Zheng Zhiwu | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
12
4.3 Cash flow statement for the first quarter of 2017 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Cash flows from operating activities | ||||||||||||||||
Premiums received | 203,514 | 162,362 | 203,514 | 162,362 | ||||||||||||
Net increase in policyholder deposits | 23,403 | 45,738 | 23,403 | 45,738 | ||||||||||||
Net cash received from financial assets at fair value through profit or loss | 51,270 | — | 52,438 | — | ||||||||||||
Net cash received from financial liabilities at fair value through profit or loss | — | 140 | — | — | ||||||||||||
Cash received from other operating activities | 1,423 | 1,236 | 948 | 865 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from operating activities | 279,610 | 209,476 | 280,303 | 208,965 | ||||||||||||
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|
|
|
|
|
| |||||||||
Cash paid for claims | (135,079 | ) | (108,718 | ) | (135,079 | ) | (108,718 | ) | ||||||||
Net cash paid for reinsurance business | (59 | ) | — | (59 | ) | — | ||||||||||
Cash paid for brokerage and commission fees | (18,864 | ) | (15,935 | ) | (18,864 | ) | (15,935 | ) | ||||||||
Cash paid for policyholder dividends | (4,842 | ) | (3,620 | ) | (4,842 | ) | (3,620 | ) | ||||||||
Cash paid to and for employees | (4,914 | ) | (4,587 | ) | (4,646 | ) | (4,298 | ) | ||||||||
Net cash paid for financial assets at fair value through profit or loss | — | (70,150 | ) | — | (69,797 | ) | ||||||||||
Net cash paid for financial liabilities at fair value through profit or loss | (407 | ) | — | — | — | |||||||||||
Cash paid for taxes and surcharges | (1,545 | ) | (707 | ) | (1,287 | ) | (547 | ) | ||||||||
Cash paid for other operating activities | (7,919 | ) | (5,405 | ) | (8,013 | ) | (5,981 | ) | ||||||||
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|
|
|
|
|
| |||||||||
Sub-total of cash outflows from operating activities | (173,629 | ) | (209,122 | ) | (172,790 | ) | (208,896 | ) | ||||||||
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|
|
|
|
|
| |||||||||
Net cash flows from operating activities | 105,981 | 354 | 107,513 | 69 | ||||||||||||
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|
|
|
|
|
|
Yang Mingsheng | Zhao Lijun | Li Mingguang | Zheng Zhiwu | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
13
4.3 | Cash flow statement for the first quarter of 2017 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
2. Cash flows from investing activities | ||||||||||||||||
Cash received from sales and redemption of investments | 190,638 | 176,442 | 189,562 | 175,064 | ||||||||||||
Cash received from investment income | 25,517 | 30,802 | 25,186 | 30,339 | ||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 21 | 99 | 21 | 99 | ||||||||||||
Net cash received from securities purchased under agreements to resell | 2,872 | — | 3,306 | — | ||||||||||||
Net cash received from the disposal of subsidiaries and other business units | 1,169 | — | 1,169 | — | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from investing activities | 220,217 | 207,343 | 219,244 | 205,502 | ||||||||||||
|
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|
|
|
|
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| |||||||||
Cash paid for investments | (349,675 | ) | (179,912 | ) | (346,813 | ) | (178,659 | ) | ||||||||
Net increase in policy loans | (1,597 | ) | (705 | ) | (1,597 | ) | (705 | ) | ||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (2,016 | ) | (821 | ) | (1,113 | ) | (794 | ) | ||||||||
Net cash paid for securities purchased under agreements to resell | — | (13,612 | ) | — | (13,525 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from investing activities | (353,288 | ) | (195,050 | ) | (349,523 | ) | (193,683 | ) | ||||||||
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|
|
|
|
|
|
| |||||||||
Net cash flows from investing activities | (133,071 | ) | 12,293 | (130,279 | ) | 11,819 | ||||||||||
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|
|
|
|
|
|
|
Yang Mingsheng | Zhao Lijun | Li Mingguang | Zheng Zhiwu | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
14
4.3 | Cash flow statement for the first quarter of 2017 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
3. Cash flows from financing activities | ||||||||||||||||
Cash received from investment | 2,888 | — | — | — | ||||||||||||
Including: Cash received from the investment ofnon-controlling interests by subsidiaries | 2,888 | — | ||||||||||||||
Net cash received from securities sold under agreements to repurchase | 10,882 | 20,062 | 10,839 | 20,375 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from financing activities | 13,770 | 20,062 | 10,839 | 20,375 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for dividends and interests | (1,130 | ) | (724 | ) | (1,091 | ) | (353 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from financing activities | (1,130 | ) | (724 | ) | (1,091 | ) | (353 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from financing activities | 12,640 | 19,338 | 9,748 | 20,022 | ||||||||||||
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|
|
|
|
| |||||||||
4. Effect of changes in foreign exchange rate on cash and cash equivalents | 20 | (24 | ) | 17 | (18 | ) | ||||||||||
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|
|
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| |||||||||
5. Net increase/(decrease) in cash and cash equivalents | (14,430 | ) | 31,961 | (13,001 | ) | 31,892 | ||||||||||
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|
|
|
|
| |||||||||
Add: Opening balance of cash and cash equivalents | 67,046 | 76,096 | 62,606 | 74,750 | ||||||||||||
|
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|
|
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|
| |||||||||
6. Closing balance of cash and cash equivalents | 52,616 | 108,057 | 49,605 | 106,642 | ||||||||||||
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|
|
|
Yang Mingsheng | Zhao Lijun | Li Mingguang | Zheng Zhiwu | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
15