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)
2018 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 2018 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 | On 26 April 2018, the “Proposal in relation to the 2018 First Quarter Report of the Company” was considered and approved at the twenty-first meeting of the fifth session of the Board of the Company. Of the eleven Directors of the Company, nine attended the Board Meeting. Executive Directors Lin Dairen, Xu Hengping and Xu Haifeng,Non-executive Directors Yuan Changqing and Liu Huimin and IndependentNon-executive Directors Chang Tso Tung Stephen, Robinson Drake Pike, Tang Xin and LeungOi-Sie Elsie attended the meeting. Chairman and Executive Director Yang Mingsheng could not attend the meeting due to other business, and gave written authorization to Executive Director Lin Dairen to attend, vote and chair the meeting. Non- executive Director Yin Zhaojun could not attend the meeting due to other business, and gave written authorization to Executive Director Xu Hengping to act as proxy to attend and vote at the meeting. |
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1.3 | The Company’s 2018 first quarter financial report is unaudited. |
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 Ms. Hu Jin, Head of the Accounting Department, confirm that the financial reports in this 2018 first quarter report are true, accurate and complete. |
2. | The Company’s Fundamental Information |
2.1 | Major financial data |
(Currency: RMB) | ||||||||||||
As at 31 March 2018 | As at 31 December 2017 | Increase/(decrease) compared to 31 December 2017 | ||||||||||
Total assets(million) | 2,986,319 | 2,897,591 | 3.1 | % | ||||||||
Total equity holders’ equity(million) | 335,339 | 320,933 | 4.5 | % | ||||||||
Ordinary share holders’ equity per share (RMBper share) | 11.59 | 11.08 | 4.6 | % | ||||||||
For the three months ended 31 March 2018 | For the three months ended 31 March 2017 | Increase/(decrease) compared to the same period of 2017 | ||||||||||
Net cash flows from operating activities(million) | 22,782 | 105,981 | -78.5 | % | ||||||||
Net cash flows from operating activities per share (RMB per share) | 0.81 | 3.75 | -78.5 | % | ||||||||
For the three months ended 31 March 2018 | For the three months ended 31 March 2017 | Increase/(decrease) compared to the same period of 2017 | ||||||||||
Operating income(million) | 264,892 | 271,734 | -2.5 | % | ||||||||
Net profit attributable to equity holders of the Company(million) | 13,518 | 6,149 | 119.8 | % | ||||||||
Net profit attributable to equity holders of the Company after deductingnon-recurring items(million) | 13,589 | 6,158 | 120.7 | % | ||||||||
Earnings per share (basic and diluted) (RMB per share) | 0.48 | 0.21 | 121.9 | % | ||||||||
Basic earnings per share after deductingnon-recurring items(RMB per share) | 0.48 | 0.21 | 122.8 | % | ||||||||
Weighted average ROE(%) | 4.19 | 2.03 | | An increase of 2.16 percentage points | | |||||||
Weighted average ROE after deductingnon-recurring items(%) | 4.21 | 2.03 | | An increase of 2.18 percentage points | |
Note: | In calculating the percentage changes of “Ordinary share holders’ equity per share”, “Net cash flows from operating activities per share”, “Earnings per share (basic and diluted)” and “Basic earnings per share after deductingnon-recurring items”, the tail differences of the basic figures have been taken into account. |
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In the first quarter of 2018, facing the complicated and severe external environment, the Company maintained its strategic consistency and tactical flexibility, sped up its business development, promoted transformation and upgrade and guarded against risks. On the high business base of 2017, the Company significantly controlled its single premiums, achieving the steady development of business operation and the optimization of business structure.Firstly, the Company maintained a steady development in its insurance business. In the first quarter of 2018, the Company achieved revenues from insurance business1 of RMB243,420 million, a decrease of 1.1%year-on-year, and further improved its leading position in the market. In particular, single premiums were RMB9,360 million, a decrease of RMB51,317 million from the corresponding period of 2017 and a decrease of 84.6%year-on-year; first- year regular premiums amounted to RMB61,218 million, an increase of 1.5%year-on-year.Short-term insurance premiums amounted to RMB15,712 million, an increase of 26.1% year-on-year. Renewal premiums amounted to RMB157,130 million, an increase of 39.4%year-on- year.Secondly, the premium structure was further optimized. In the first quarter of 2018, the Company substantially controlled the scale of single premium business. The percentage offirst-year regular premiums in premiums fromlong-term insurance of new policies was 86.74%, an increase of 36.89 percentage pointsyear-on-year. With ten years of efforts, the Company basically completed the historical task of adjusting payment structure. The percentage of renewal premiums in total premiums was 64.55%, an increase of 18.75 percentage pointsyear-on-year. In the first quarter of 2018, the surrender rate was 3.96%, an increase of 1.17 percentage pointsyear-on-year.Thirdly, the Company constantly optimized the structure of its investment assets allocation. As at 31 March 2018, the Company’s investment assets were RMB2,659,494 million. In the first quarter of 2018, the Company constantly optimized the structure of its assets allocation and increased its allocation in fixed income assets with long duration. However, due to the impact of the severe fluctuation of the domestic and overseas stock markets, the equity investment income of the Company declined significantly, and its gross investment yield2 was 3.94%, a decrease of 0.65 percentage pointyear-on-year.Finally, net profit was significantly improved. Due to the impact of the update of discount rate assumption of reserves of the Company’s traditional insurance contracts, net profit attributable to equity holders of the Company during the reporting period was RMB13,518 million, an increase of 119.8%year-on-year.
For the next stage, the Company will adhere to the operating guideline of “prioritizing value, strengthening sales force, optimizing business structure, achieving stable growth and safeguarding against risk”, implement its overall work arrangement for the year, put more efforts on market expansion, accelerate the development oflong-term regular premium business andprotection-type insurance products, strengthen investment management, consolidate the foundation for development, speed up transformation and upgrade, and embark on a new journey towards the high-quality business development in all aspects with a new look and strong dynamics.
1 | Revenues from insurance business is consistent with Premium Income in the attached income statement. |
2 | Gross investment yield = {[(Gross investment income – Interest paid for financial assets sold under agreements to repurchase)/((Investment assets at the beginning of the period – Financial assets sold under agreements to repurchase at the beginning of the period + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period)/2)]/90}x365. The figures for the previous years were adjusted on the same basis. |
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Non-recurring Items and Amounts
RMB million | ||||
Non-recurring items | For the Reporting January to March) | |||
Gains/(losses) on disposal ofnon-current assets | (2 | ) | ||
Government subsidies recognized in current gains/(losses) | 1 | |||
Netnon-recurring items other than those mentioned above | (94 | ) | ||
Effect of income tax | 24 | |||
Attributable tonon-controlling interests | — | |||
Total | (71 | ) |
Note: | As an insurance company, investment (utilization of insurance funds) 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 | Total number of shareholders and the particulars of top ten shareholders as at the end of the reporting period |
The total number of shareholders as at the end of the Reporting Period | Number of A shareholders: 140,442 | |||||||||
Number of H shareholders: 28,273 | ||||||||||
Particulars of the top ten shareholders | Unit: Share | |||||||||
Name of shareholders | Nature of shareholder | Percentage of shareholding | Total 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 | 25.90% | 7,321,582,354 | — | — | |||||
China Securities Finance Corporation Limited | State-owned legal person | 2.22% | 628,448,757 | — | — | |||||
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 | 0.18% | 50,810,503 | — | — | |||||
China International Television Corporation | State-owned Legal person | 0.07% | 18,452,300 | — | — | |||||
Hong Kong Securities Clearing Company Limited | Overseas legal person | 0.06% | 16,951,158 | — | — |
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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 | — | — | |||||
China National Nuclear Corporation | State-owned legal person | 0.04% | 12,400,000 | — | — | |||||
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Securities Investment Fund | Other | 0.04% | 11,854,237 | — | — | |||||
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 relelvant regulations of the Stock Exchange of Hong Kong Limited 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. China International Television Corporation and China National Nuclear Corporation became the top 10 shareholders of the Company through the strategic placement during the initial public offering of A Shares of the Company in December 2006. The trading restriction period of the shares from the strategic placement was from 9 January 2007 to 9 January 2008.
3. Both Industrial and Commercial Bank of China Limited – China Southern Flexible Allocation of Consumption and Vitality of Hybrid Securities Investment Fund and Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund have Industrial and Commercial Bank of China Limited as their 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 | Total number of preference share holders, top ten preference share holders, and the particulars of top ten preference share holders with no selling restrictions as at the end of the reporting period |
☐ Applicable ☑ Not applicable |
3. | Significant Events |
3.1 | Particulars of and reasons for changes in major accounting items and financial indicators of the Company |
☑ Applicable ☐ Not applicable |
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(1) | Changes in key financial indicators and the reasons |
RMB million | ||||||||||||||
Key financial indicators | As at 31 March 2018 | As at 31 December 2017 | Increase/ (decrease) | Main reasons | ||||||||||
Total assets | 2,986,319 | 2,897,591 | 3.1 | % | Accumulation of insurance business assets and investment business assets | |||||||||
Total liabilities | 2,646,478 | 2,572,281 | 2.9 | % | Increase in insurance reserves | |||||||||
Total equity holders’ equity | 335,339 | 320,933 | 4.5 | % | The impact of profit during the reporting period |
RMB million | ||||||||||||||
Key financial indicators | For the three months ended 31 March 2018 | For the three months ended 31 March 2017 | Increase/ (decrease) | Main reasons | ||||||||||
Operating profit | 17,968 | 7,562 | 137.6 | % | The impact of the update of discount rate assumption of reserves of traditional insurance contracts | |||||||||
Net profit attributable to equity holders of the Company | 13,518 | 6,149 | 119.8 | % | The impact of the update of discount rate assumption of reserves of traditional insurance contracts |
(2) | Material changes in major accounting items and the reasons |
RMB million | ||||||||||||||
Key financial indicators | As at 31 March 2018 | As at 31 December 2017 | Increase/ (decrease) | Main reasons | ||||||||||
Securities purchased under agreements to resell | 20,502 | 36,184 | -43.3 | % | The needs for liquidity management | |||||||||
Premiums receivables | 35,071 | 14,121 | 148.4 | % | Accumulation of renewal premiums | |||||||||
Unearned premium reserves | 18,987 | 12,289 | 54.5 | % | Development ofshort-term insurance business and the variation of its business schedule | |||||||||
RMB million | ||||||||||||||
Key financial indicators | For the three months ended 31 March 2018 | For the three months ended 31 March 2017 | Increase/ (decrease) | Main reasons | ||||||||||
Fair value gains/(losses) | (735 | ) | 1,926 | N/A | Fluctuation of the market value of the financial assets at fair value through profit or loss | |||||||||
Surrenders | 88,145 | 57,548 | 53.2 | % | An increase in the surrender of certain bancassurance products | |||||||||
Policyholder dividends resulting from participation in profits | 5,151 | 3,950 | 30.4 | % | Due to increased cost in policyholder dividends to be paid | |||||||||
Income tax | 4,214 | 1,262 | 233.9 | % | The combined impact of the taxable income and deferred tax |
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3.2 | Explanation and analysis of significant events and their impacts and solutions |
☐ Applicable ☑ Not applicable
3.3 | Undertakings were not implemented in due time during the reporting period |
☑ 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.
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.
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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 ☑ 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: | Yuan Changqing, Liu Huimin, Yin Zhaojun | |
IndependentNon-executive Directors: | Chang Tso Tung Stephen, Robinson Drake Pike, | |
Tang Xin, LeungOi-Sie Elsie |
Hong Kong, 26 April 2018
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4. | Appendix |
4.1 | Balance sheet as at 31 March 2018 (unaudited) |
RMB million (Unless otherwise stated) | ||||||||||||||||
ASSETS | As at 31 March 2018 Group | As at Group | As at 31 March 2018 Company | As at 31 December 2017 Company | ||||||||||||
Assets | ||||||||||||||||
Cash fund | 61,342 | 50,189 | 57,415 | 44,176 | ||||||||||||
Financial assets at fair value through profit or loss | 148,315 | 136,808 | 138,664 | 127,543 | ||||||||||||
Securities purchased under agreements to resell | 20,502 | 36,184 | 20,366 | 35,760 | ||||||||||||
Interest receivables | 46,615 | 50,395 | 46,147 | 50,044 | ||||||||||||
Premiums receivables | 35,071 | 14,121 | 35,071 | 14,121 | ||||||||||||
Receivables from reinsurers | 25 | 64 | 25 | 64 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 453 | 527 | 453 | 527 | ||||||||||||
Claim reserves receivable from reinsurers | 128 | 104 | 128 | 104 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 348 | 281 | 348 | 281 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 2,162 | 2,070 | 2,162 | 2,070 | ||||||||||||
Other receivables | 21,908 | 22,078 | 20,308 | 20,967 | ||||||||||||
Loans | 397,006 | 383,504 | 394,786 | 381,253 | ||||||||||||
Term deposits | 448,172 | 449,400 | 443,255 | 444,279 | ||||||||||||
Available-for-sale financial assets | 831,565 | 810,734 | 818,129 | 797,108 | ||||||||||||
Held-to-maturity investments | 742,161 | 717,037 | 741,476 | 716,346 | ||||||||||||
Long-term equity investments | 165,335 | 161,472 | 175,617 | 171,537 | ||||||||||||
Statutory deposits | 6,333 | 6,333 | 5,653 | 5,653 | ||||||||||||
Investment properties | 4,098 | 3,064 | 1,388 | 1,401 | ||||||||||||
Constructions in progress | 17,971 | 16,696 | 11,995 | 10,951 | ||||||||||||
Fixed assets | 25,522 | 25,384 | 24,316 | 24,743 | ||||||||||||
Intangible assets | 6,477 | 6,406 | 5,658 | 5,694 | ||||||||||||
Other assets | 4,800 | 4,728 | 4,661 | 4,577 | ||||||||||||
Separate account assets | 10 | 12 | 10 | 12 | ||||||||||||
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Total Assets | 2,986,319 | 2,897,591 | 2,948,031 | 2,859,211 | ||||||||||||
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Yang Mingsheng | Zhao Lijun | Li Mingguang | Hu Jin | |||
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 2018 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
LIABILITIES AND EQUITY | As at 31 March 2018 Group | As at Group | As at 31 March 2018 Company | As at 31 December 2017 Company | ||||||||||||
Liabilities | ||||||||||||||||
Short-term borrowings | 979 | 780 | — | — | ||||||||||||
Financial liabilities at fair value through profit or loss | 2,145 | 2,529 | — | — | ||||||||||||
Securities sold under agreements to repurchase | 91,092 | 87,309 | 89,920 | 85,316 | ||||||||||||
Premiums received in advance | 3,166 | 18,505 | 3,166 | 18,505 | ||||||||||||
Brokerage and commission payable | 7,630 | 5,659 | 7,630 | 5,659 | ||||||||||||
Reinsurance payable | 938 | 790 | 938 | 790 | ||||||||||||
Salary and welfare payable | 8,616 | 10,962 | 7,937 | 10,103 | ||||||||||||
Taxes payable | 9,990 | 6,887 | 9,776 | 6,720 | ||||||||||||
Claims payable | 47,348 | 44,820 | 47,348 | 44,820 | ||||||||||||
Policyholder dividends payable | 85,959 | 83,910 | 85,959 | 83,910 | ||||||||||||
Other payable | 11,412 | 10,254 | 10,479 | 9,722 | ||||||||||||
Policyholder deposits | 236,487 | 232,488 | 236,487 | 232,488 | ||||||||||||
Unearned premium reserves | 18,987 | 12,289 | 18,987 | 12,289 | ||||||||||||
Claim reserves | 11,733 | 13,778 | 11,733 | 13,778 | ||||||||||||
Reserves for life insurance | 1,977,127 | 1,915,324 | 1,977,127 | 1,915,324 | ||||||||||||
Reserves for long-term health insurance | 88,863 | 83,742 | 88,863 | 83,742 | ||||||||||||
Long-term borrowings | 18,047 | 18,014 | — | — | ||||||||||||
Deferred tax liabilities | 5,587 | 4,871 | 5,262 | 4,501 | ||||||||||||
Other liabilities | 20,362 | 19,358 | 13,807 | 13,047 | ||||||||||||
Separate account liabilities | 10 | 12 | 10 | 12 | ||||||||||||
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Total liabilities | 2,646,478 | 2,572,281 | 2,615,429 | 2,540,726 | ||||||||||||
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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 | 55,172 | 55,142 | 54,515 | 54,485 | ||||||||||||
Accumulated other comprehensive income | (2,686 | ) | (3,544 | ) | (3,366 | ) | (4,335 | ) | ||||||||
Surplus reserve | 63,536 | 63,536 | 63,488 | 63,488 | ||||||||||||
General reserve | 30,553 | 30,541 | 30,172 | 30,172 | ||||||||||||
Retained earnings | 152,708 | 139,202 | 151,737 | 138,619 | ||||||||||||
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Attributable to equity holders of the Company | 335,339 | 320,933 | ||||||||||||||
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Non-controlling interests | 4,502 | 4,377 | ||||||||||||||
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Total equity | 339,841 | 325,310 | 332,602 | 318,485 | ||||||||||||
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Total liabilities and equity | 2,986,319 | 2,897,591 | 2,948,031 | 2,859,211 | ||||||||||||
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Yang Mingsheng | Zhao Lijun | Li Mingguang | Hu Jin | |||
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 2018 (unaudited) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Operating income | 264,892 | 271,734 | 263,866 | 271,020 | ||||||||||||
Premiums earned | 235,657 | 240,152 | 235,657 | 240,152 | ||||||||||||
Premium income | 243,420 | 246,208 | 243,420 | 246,208 | ||||||||||||
Including: Reinsurance premium income | 3 | 1 | 3 | 1 | ||||||||||||
Less: Premiums ceded to reinsurers | (991 | ) | (674 | ) | (991 | ) | (674 | ) | ||||||||
Change in unearned premium reserves | (6,772 | ) | (5,382 | ) | (6,772 | ) | (5,382 | ) | ||||||||
Investment income | 28,173 | 28,217 | 28,069 | 28,050 | ||||||||||||
Including: Share of profit of associates and joint ventures | 1,417 | 1,443 | 1,588 | 1,415 | ||||||||||||
Fair value gains/(losses) | (735 | ) | 1,926 | (676 | ) | 1,765 | ||||||||||
Foreign exchange gains/(losses) | 100 | 45 | (319 | ) | 17 | |||||||||||
Gains/(losses) on disposal of assets | (1 | ) | — | (1 | ) | — | ||||||||||
Other gains | 1 | 6 | 1 | 4 | ||||||||||||
Other operating income | 1,697 | 1,388 | 1,135 | 1,032 | ||||||||||||
2. Operating expenses | (246,924 | ) | (264,172 | ) | (246,523 | ) | (263,941 | ) | ||||||||
Surrenders | (88,145 | ) | (57,548 | ) | (88,145 | ) | (57,548 | ) | ||||||||
Claims expense | (57,819 | ) | (81,446 | ) | (57,819 | ) | (81,446 | ) | ||||||||
Less: Claims recoverable from reinsurers | 452 | 266 | 452 | 266 | ||||||||||||
Increase in insurance contracts reserve | (64,879 | ) | (87,763 | ) | (64,879 | ) | (87,763 | ) | ||||||||
Less: Insurance reserves recoverable from reinsurers | 183 | 101 | 183 | 101 | ||||||||||||
Policyholder dividends resulting from participation in profits | (5,151 | ) | (3,950 | ) | (5,151 | ) | (3,950 | ) | ||||||||
Tax and surcharges | (135 | ) | (137 | ) | (126 | ) | (132 | ) | ||||||||
Underwriting and policy acquisition costs | (18,635 | ) | (21,763 | ) | (18,635 | ) | (21,763 | ) | ||||||||
Administrative expenses | (7,429 | ) | (6,782 | ) | (7,022 | ) | (6,440 | ) | ||||||||
Less: Expenses recoverable from reinsurers | 59 | 83 | 59 | 83 | ||||||||||||
Other operating expenses | (4,916 | ) | (4,420 | ) | (4,931 | ) | (4,536 | ) | ||||||||
Impairment losses | (509 | ) | (813 | ) | (509 | ) | (813 | ) | ||||||||
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3. Operating profit | 17,968 | 7,562 | 17,343 | 7,079 | ||||||||||||
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Add:Non-operating income | 6 | 23 | 6 | 23 | ||||||||||||
Less:Non-operating expenses | (101 | ) | (40 | ) | (101 | ) | (40 | ) | ||||||||
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4. Net profit before income tax | 17,873 | 7,545 | 17,248 | 7,062 | ||||||||||||
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| |||||||||
Less: Income tax expenses | (4,214 | ) | (1,262 | ) | (4,130 | ) | (1,181 | ) | ||||||||
|
|
|
|
|
|
|
|
Yang Mingsheng | Zhao Lijun | Li Mingguang | Hu Jin | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
11
4.2 | Income statement for the first quarter of 2018 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
5. Net profit | 13,659 | 6,283 | 13,118 | 5,881 | ||||||||||||
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|
|
|
|
|
| |||||||||
According to operating continuity: | ||||||||||||||||
– Net profit from continuing operations | 13,659 | 6,283 | 13,118 | 5,881 | ||||||||||||
– Net profit from discontinuing operations | — | — | — | — | ||||||||||||
According to ownership of the company: | ||||||||||||||||
– Equity holders of the Company | 13,518 | 6,149 | ||||||||||||||
–Non-controlling interests | 141 | 134 | ||||||||||||||
6. Earnings per share | ||||||||||||||||
Basic earnings per share | RMB0.48 | RMB0.21 | ||||||||||||||
Diluted earnings per share | RMB0.48 | RMB0.21 | ||||||||||||||
7. Other Comprehensive income | 842 | (659 | ) | 969 | (871 | ) | ||||||||||
Other comprehensive income attributable to equity holders of the Company (net of tax) | 858 | (647 | ) | |||||||||||||
Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax) | 858 | (647 | ) | 969 | (871 | ) | ||||||||||
Fair value gains/(losses) onavailable-for-sale financial assets | (506 | ) | (3,224 | ) | (407 | ) | (3,446 | ) | ||||||||
Less: Amount transferred to net profit from other comprehensive income | 1,434 | 1,908 | 1,441 | 1,905 | ||||||||||||
Portion of fair value changes onavailable-for-sale financial assets attributable to participating policyholders | (332 | ) | 867 | (332 | ) | 867 | ||||||||||
Share of other comprehensive income of associates and joint ventures under the equity method | 324 | (197 | ) | 324 | (197 | ) | ||||||||||
Exchanges differences on translating foreign operations | (62 | ) | (1 | ) | (57 | ) | — | |||||||||
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) | (16 | ) | (12 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
8. Total Comprehensive income | 14,501 | 5,624 | 14,087 | 5,010 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Attributable to equity holders of the Company | 14,376 | 5,502 | ||||||||||||||
Attributable tonon-controlling interests | 125 | 122 |
Yang Mingsheng | Zhao Lijun | Li Mingguang | Hu Jin | |||
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 2018 (unaudited) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Cash flows from operating activities | ||||||||||||||||
Premiums received | 207,189 | 203,514 | 207,189 | 203,514 | ||||||||||||
Net increase in policyholder deposits | 4,033 | 23,403 | 4,033 | 23,403 | ||||||||||||
Net cash received from financial assets at fair value through profit or loss | — | 51,270 | — | 52,438 | ||||||||||||
Cash received from other operating activities | 2,101 | 1,423 | 1,006 | 948 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from operating activities | 213,323 | 279,610 | 212,228 | 280,303 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for claims | (143,436 | ) | (135,079 | ) | (143,436 | ) | (135,079 | ) | ||||||||
Net cash paid for reinsurance business | (293 | ) | (59 | ) | (293 | ) | (59 | ) | ||||||||
Cash paid for brokerage and commission fees | (16,664 | ) | (18,864 | ) | (16,664 | ) | (18,864 | ) | ||||||||
Cash paid for policyholder dividends | (3,546 | ) | (4,842 | ) | (3,546 | ) | (4,842 | ) | ||||||||
Cash paid to and for employees | (6,127 | ) | (4,914 | ) | (5,704 | ) | (4,646 | ) | ||||||||
Net cash paid for financial assets at fair value through profit or loss | (11,416 | ) | — | (11,341 | ) | — | ||||||||||
Net cash paid for financial liabilities at fair value through profit or loss | (13 | ) | (407 | ) | — | — | ||||||||||
Cash paid for taxes and surcharges | (1,572 | ) | (1,545 | ) | (1,389 | ) | (1,287 | ) | ||||||||
Cash paid for other operating activities | (7,474 | ) | (7,919 | ) | (6,605 | ) | (8,013 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from operating activities | (190,541 | ) | (173,629 | ) | (188,978 | ) | (172,790 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from operating activities | 22,782 | 105,981 | 23,250 | 107,513 | ||||||||||||
|
|
|
|
|
|
|
|
Yang Mingsheng | Zhao Lijun | Li Mingguang | Hu Jin | |||
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 2018 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
2. Cash flows from investing activities | ||||||||||||||||
Cash received from sales and redemption of investments | 191,851 | 190,638 | 185,990 | 189,562 | ||||||||||||
Cash received from investment income | 33,386 | 25,517 | 32,198 | 25,186 | ||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 13 | 21 | 13 | 21 | ||||||||||||
Net cash received from securities purchased under agreements to resell | 15,682 | 2,872 | 15,394 | 3,306 | ||||||||||||
Net cash received from the disposal of subsidiaries and other business units | — | 1,169 | 351 | 1,169 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from investing activities | 240,932 | 220,217 | 233,946 | 219,244 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for investments | (243,158 | ) | (349,675 | ) | (237,521 | ) | (346,813 | ) | ||||||||
Net increase in policy loans | (8,556 | ) | (1,597 | ) | (8,556 | ) | (1,597 | ) | ||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (2,344 | ) | (2,016 | ) | (1,526 | ) | (1,113 | ) | ||||||||
Net cash paid for the acquisition of subsidiaries and other business units | (753 | ) | — | — | — | |||||||||||
Cash paid for other investing activities | (299 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from investing activities | (255,110 | ) | (353,288 | ) | (247,603 | ) | (349,523 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from investing activities | (14,178 | ) | (133,071 | ) | (13,657 | ) | (130,279 | ) | ||||||||
|
|
|
|
|
|
|
|
Yang Mingsheng | Zhao Lijun | Li Mingguang | Hu Jin | |||
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 2018 (unaudited) (continued) |
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months | For the three months | |||||||||||||||
ended 31 March | ended 31 March | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
3. Cash flows from financing activities | ||||||||||||||||
Cash received from investment | 16 | 2,888 | — | — | ||||||||||||
Including: Cash received from the investment ofnon-controlling interests by subsidiaries | 16 | 2,888 | ||||||||||||||
Cash received from borrowings | 734 | — | — | — | ||||||||||||
Net cash received from securities sold under agreements to repurchase | 3,783 | 10,882 | 4,604 | 10,839 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from financing activities | 4,533 | 13,770 | 4,604 | 10,839 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for dividends and interests | (1,905 | ) | (1,130 | ) | (882 | ) | (1,091 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from financing activities | (1,905 | ) | (1,130 | ) | (882 | ) | (1,091 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from financing activities | 2,628 | 12,640 | 3,722 | 9,748 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
4. Effect of changes in foreign exchange rate on cash and cash equivalents | (124 | ) | 20 | (84 | ) | 17 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
5. Net increase/(decrease) in cash and cash equivalents | 11,108 | (14,430 | ) | 13,231 | (13,001 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Add: Opening balance of cash and cash equivalents | 48,586 | 67,046 | 44,186 | 62,606 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
6. Closing balance of cash and cash equivalents | 59,694 | 52,616 | 57,417 | 49,605 | ||||||||||||
|
|
|
|
|
|
|
|
Yang Mingsheng | Zhao Lijun | Li Mingguang | Hu Jin | |||
Chairman | Vice President in | Chief Actuary | Head of | |||
charge of Accounting Affairs | Accounting Department |
15