Commission File Number 001-31914
Exhibit 99.1
CHINA LIFE INSURANCE COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 2628)
2019 THIRD QUARTER REPORT
This announcement is made by China Life Insurance Company Limited (the “Company”) 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 three quarters of 2019 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 have no difference from the relevant data under International Financial Reporting Standards. |
1. | Important Notice |
1.1 | The Company’s Board of Directors, the Board of Supervisors, 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 29 October 2019, the 2019 Third Quarter Report of the Company was considered and approved at the twentieth meeting of the sixth session of the Board of the Company. Of the eleven Directors of the Company, eight attended the Board Meeting. Executive Directors Su Hengxuan and Li Mingguang,Non-executive Director Wang Junhui and IndependentNon-executive Directors Chang Tso Tung Stephen and Robinson Drake Pike attended the meeting,Non-executive Director Yin Zhaojun and IndependentNon-executive Directors Tang Xin and LeungOi-Sie Elsie attended the meeting by telephony, respectively. Chairman and Executive Director Wang Bin could not attend the meeting due to other business, and gave written authorization to Executive Director Su Hengxuan to attend, vote and chair the meeting.Non-executive Directors Yuan Changqing and Liu Huimin could not attend the meeting due to other business, and gave written authorization toNon-executive Director Wang Junhui and IndependentNon-executive Director Robinson Drake Pike to act as proxies to attend and vote at the meeting, respectively. |
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1.3 | The Company’s 2019 third quarter financial report is unaudited. |
1.4 | Mr. Wang Bin, Chairman of the Company, Mr. Zhao Peng, 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 2019 third quarter report are true, accurate and complete. |
2. | The Company’s Basic Information |
2.1 | Major financial data |
Currency: RMB
As at 30 September 2019 | As at 31 December 2018 | Increase/(decrease) compared to 31 December 2018 | ||||||||||
Total assets(million) | 3,609,078 | 3,254,403 | 10.9 | % | ||||||||
Total equity holders’ equity(million) | 388,754 | 318,371 | 22.1 | % | ||||||||
Ordinary share holders’ equity per share(RMB per share) | 13.48 | 10.99 | 22.7 | % | ||||||||
For the nine months ended 30 September 2019 | For the nine months ended 30 September 2018 | Increase/(decrease) compared to the same period of 2018 | ||||||||||
Net cash flows from operating activities(million) | 207,380 | 76,433 | 171.3 | % | ||||||||
Net cash flows from operating activities per share(RMB per share) | 7.34 | 2.70 | 171.3 | % | ||||||||
Operating income(million) | 624,024 | 540,967 | 15.4 | % | ||||||||
Net profit attributable to equity holders of the Company(million) | 57,702 | 19,869 | 190.4 | % | ||||||||
Net profit attributable to equity holders of the Company after deductingnon-recurring items(million) | 52,607 | 20,049 | 162.4 | % | ||||||||
Earnings per share (basic and diluted)(RMB per share) | 2.03 | 0.69 | 193.1 | % | ||||||||
Basic earnings per share after deductingnon-recurring items(RMB per share) | 1.85 | 0.70 | 164.7 | % | ||||||||
Weighted average ROE(%) | 16.66 | 6.13 | An increase of 10.53 percentage points | |||||||||
Weighted average ROE after deductingnon-recurring items(%) | 15.18 | 6.18 | An increase of 9.00 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 three quarters of 2019, under the guidance of the strategic deployment of “China Life Revitalization”, the Company actively proceeded with all tasks according to the requirements for high-quality development and maintained leading market position with good development momentum.Firstly, the Company made steady progress in overall development and its core businesses continued to grow.In the first three quarters of 2019, the Company achieved revenues from insurance business1 of RMB497,047 million, an increase of 6.1%year-on-year.First-year regular premiums amounted to RMB99,053 million, an increase of 4.7%year-on-year. Renewal premiums amounted to RMB334,832 million, an increase of 5.9%year-on-year. Short-term insurance premiums amounted to RMB61,215 million, an increase of 31.0%year-on-year.Secondly, the premium structure was increasingly optimized and the protection-oriented business developed rapidly.During the reporting period, the percentage offirst-year regular premiums of the Company in premiums fromlong-term insurance of new policies was 98.07%, an increase of 8.45 percentage points from the corresponding period of 2018. The percentage offirst-year regular premiums with a payment duration of ten years or longer infirst-year regular premiums was 51.06%, an increase of 15.72 percentage points from the corresponding period of 2018. The percentage of premiums from designated protection-oriented products in first-year regular premiums increased by 8.79 percentage pointsyear-on-year. During the reporting period, the surrender rate of the Company was 1.67%, a decrease of 2.78 percentage pointsyear-on-year.Thirdly, the sales force steadily expanded with continuous improvement in quality.As at the end of the reporting period, the total number of sales forces from all channels of the Company was approximately 1.95 million, an increase of approximately 0.18 million from the end of 2018. In particular, the number of exclusive individual agents was 1.663 million, an increase of 15.6% from the end of 2018. The quality of sales force consistently improved and the monthly average productive agents from the exclusive individual agent channel increased by 37.4%year-on-year; the monthly average number of agents selling designated protection-oriented insurance products rose by 49.2%year-on-year.Fourthly, the Company proactively took advantage of investment opportunities and its asset structure was constantly optimized.As at 30 September 2019, the Company’s investment assets reached RMB3,439,115 million, an increase of 10.7% from the end of 2018. The Company deepened the market-oriented reform of its investment management system, strengthened the management of assets and liabilities, seized the market opportunities to allocate tolong-term fixed income assets and optimized the structure of equity portfolios. For the first three quarters of 2019, investment income from fixed income assets increased constantly, and the income from open market equity investments grew significantly. During the reporting period, the gross investment income2 of the Company was RMB134,487 million. The gross investment yield3 was 5.72%, rising by 231 BPsyear-on-year. The net investment income4 was RMB113,903 million, and the net investment yield5 was 4.83%, rising by 21 BPsyear-on-year.
1 | Revenues from insurance business is consistent with Premium Income in the attached income statement. |
2 | Gross investment income = Net investment income + Net realized gains on investment assets + Fair value gains/losses – Impairment losses of investment assets |
3 | Gross investment yield = {[(Gross investment income – Interest paid for financial assets sold under agreements to repurchase)/((Investment assets at the end of previous year – Financial assets sold under agreements to repurchase at the end of previous year – Derivative financial liabilities at the end of previous year + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period – Derivative financial liabilities at the end of the period)/2)]/273}×365. The figures for the same period of last year were adjusted on the same basis. |
4 | Net investment income includes interest income from debt investments, interest income from deposits, dividend and bonus from equity investments, interest income from loans, net income from investment properties, and net income from investments in associates and joint ventures, etc. |
5 | Net investment yield = {[(Net investment income – Interest paid for financial assets sold under agreements to repurchase)/ ((Investment assets at the end of previous year – Financial assets sold under agreements to repurchase at the end of previous year + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period)/2]/273}×365. The figures for the same period of last year were adjusted on the same basis. |
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During the reporting period, net profit attributable to equity holders of the Company was RMB57,702 million, an increase of 190.4%year-on-year; the value of new business for the first three quarters of 2019 grew by 20.4%year-on-year. The core solvency ratio and comprehensive solvency ratio of the Company were 262.00% and 272.14%, respectively.
For the next stage, the Company will continue to adhere to the strategic deployment of “China Life Revitalization”, take proactive efforts to fulfill the overall tasks of the year 2019, and make scientific deployment regarding the year 2020. Moreover, the Company will consistently carry out various reforms in great depth, strengthen the sales force development, take lead in the large-andmedium-sized cities, step up technology empowerment and innovation-driven development, and enhance risk prevention and control in a practical manner, so as to move towards high-quality development.
Non-recurring Items and Amounts
RMB million | ||||||||
Non-recurring itemsNote 1 | For the Reporting Period (from July to September) | For the nine months ended 30 September 2019 | ||||||
Gains/(losses) on disposal ofnon-current assets | 17 | 15 | ||||||
Government subsidies recognized in current gains/(losses) | 37 | 63 | ||||||
Donations | (45 | ) | (108 | ) | ||||
Netnon-recurring items other than those mentioned above | (22 | ) | (36 | ) | ||||
Effect of income tax | 4 | 17 | ||||||
Adjustment on current income tax of previous periodNote 2 | — | 5,154 | ||||||
Attributable tonon-controlling interests | (9 | ) | (10 | ) | ||||
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Total | (18 | ) | 5,095 | |||||
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Notes:
1. | 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. | According to Cai Shui [2019] No. 72,Announcement on Policies Regarding thePre-tax Deduction of Underwriting and Policy Acquisition Costs Incurred by Insurance Enterprises,the underwriting and policy acquisition costs incurred by insurance companies related to its operating activities, which do not exceed 18% of the total premium income of the year after deducting surrender premium, etc., are allowed to be deducted in calculating the taxable income, and the excessive part is allowed to be brought forward to the subsequent years. The announcement issued above was effective from 1 January 2019 and applicable to 2018’s final settlement and payment of enterprise income tax filing. Accordingly, the Company’s current income tax was deducted by RMB5,154 million regarding to 2018’s final settlement and payment. |
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2.2 | Total number of shareholders and the particulars of top ten shareholders as at the end of the reporting period |
Total number of shareholders as at the end of the Reporting Period | Number of A Share shareholders: 119,077 | |
Number of H Share shareholders : 27,381 |
Particulars of top ten shareholders of the Company | Unit: Share | |||||||||||||||||
Name of shareholders | Nature of shareholder | Percentage of shareholding | Total number of shares | Number of shares subject to selling restrictions | Number of shares pledged or frozen | |||||||||||||
China Life Insurance (Group) Company | State-owned legal person | 68.37 | % | 19,323,530,000 | — | — | ||||||||||||
HKSCC Nominees Limited | Overseas legal person | 25.91 | % | 7,322,674,049 | — | — | ||||||||||||
China Securities Finance Corporation Limited | State-owned legal person | 2.56 | % | 723,937,634 | — | — | ||||||||||||
Central Huijin Asset Management Limited | State-owned legal person | 0.42 | % | 119,719,900 | — | — | ||||||||||||
Hong Kong Securities Clearing Company Limited | Overseas legal person | 0.16 | % | 45,106,944 | — | — | ||||||||||||
China International Television Corporation | State-owned legal person | 0.06 | % | 17,000,000 | — | — | ||||||||||||
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 | — | — | ||||||||||||
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Securities Investment Fund | Other | 0.04 | % | 12,421,223 | — | — | ||||||||||||
China National Nuclear Corporation | State-owned legal person | 0.04 | % | 12,400,000 | — | — | ||||||||||||
Abu Dhabi Investment Authority | Overseas legal person | 0.04 | % | 10,238,308 | — | — | ||||||||||||
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 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 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. Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund have Industrial and Commercial Bank of China Limited as its fund depositary. 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. |
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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
(1) | Changes in key financial indicators and the reasons |
RMB million
Key financial indicators | As at 30 September 2019 | As at 31 December 2018 | Increase/ (decrease) | Main reasons | ||||||||||
Total assets | 3,609,078 | 3,254,403 | 10.9 | % | Accumulation of the assets from insurance business and investment business | |||||||||
Total liabilities | 3,214,928 | 2,931,113 | 9.7 | % | An increase in insurance reserves | |||||||||
Total equity holders’ equity | 388,754 | 318,371 | 22.1 | % | Due to the effect of profits and an increase in other comprehensive income during the Reporting Period |
RMB million
Key financial indicators | For the nine months ended 30 September 2019 | For the nine months ended 30 September 2018 | Increase/ (decrease) | Main reasons | ||||||||||
Operating profit | 62,071 | 25,360 | 144.8 | % | An increase in investment income | |||||||||
Net profit attributable to equity holders of the Company | 57,702 | 19,869 | 190.4 | % | An increase in investment income and the impact from the new policy on pre-tax deduction of underwriting and policy acquisition costs |
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(2) | Material changes in major accounting items and the reasons |
RMB million
Key financial indicators | As at 30 September 2019 | As at 31 December 2018 | Increase/ (decrease) | Main reasons | ||||||||||
Premiums receivables | 35,057 | 15,648 | 124.0 | % | Accumulation of renewal premiums | |||||||||
Securities sold under agreements to repurchase | 126,025 | 192,141 | -34.4 | % | The needs for liquidity management | |||||||||
Other liabilities | 37,314 | 26,824 | 39.1 | % | An increase of payable to the third- party holders of consolidated structured entities |
RMB million
Key financial indicators | For the nine months ended 30 September 2019 | For the nine months ended 30 September 2018 | Increase/ (decrease) | Main reasons | ||||||||||
Investment income | 126,239 | 83,870 | 50.5 | % | An increase in income from equity assets investment | |||||||||
Surrenders | 43,739 | 107,826 | -59.4 | % | A decrease in the surrender of single insurance products | |||||||||
Claims expense | 99,575 | 143,524 | -30.6 | % | A decrease in the policy maturity payment of life insurance business | |||||||||
Increase in insurance contracts reserve | 295,086 | 162,355 | 81.8 | % | Due to the combined impact of the Company’s business growth and a decrease in policy maturity payment and surrenders | |||||||||
Underwriting and policy acquisition costs | 63,011 | 48,452 | 30.0 | % | An increase in commissions of regular business due to the Company’s business growth and the optimization of its business structure |
3.2 | Explanation and analysis of significant events and their impacts and solutions |
☐ Applicable ☑ Not applicable
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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. Should there be any inconsistency between the Chinese and English version, the Chinese version 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: | Wang Bin, Su Hengxuan, Li Mingguang | |
Non-executive Directors: | Yuan Changqing, Liu Huimin, Yin Zhaojun, Wang Junhui | |
IndependentNon-executive Directors: | Chang Tso Tung Stephen, Robinson Drake Pike, Tang Xin, LeungOi-Sie Elsie |
Hong Kong, 29 October 2019
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4. | Appendix |
4.1 | Balance sheet as at 30 September 2019 (unaudited) |
RMB million (Unless otherwise stated)
As at | As at | As at | As at | |||||||||||||
30 September | 31 December | 30 September | 31 December | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
ASSETS | Group | Group | Company | Company | ||||||||||||
Assets | ||||||||||||||||
Cash fund | 62,689 | 52,586 | 58,024 | 47,896 | ||||||||||||
Financial assets at fair value through profit or loss | 138,299 | 138,716 | 114,221 | 125,303 | ||||||||||||
Securities purchased under agreements to resell | 1,893 | 9,905 | 1,583 | 9,066 | ||||||||||||
Interest receivables | 48,314 | 48,094 | 47,734 | 47,644 | ||||||||||||
Premiums receivables | 35,057 | 15,648 | 35,057 | 15,648 | ||||||||||||
Receivables from reinsurers | 351 | 731 | 351 | 731 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 318 | 370 | 318 | 370 | ||||||||||||
Claim reserves receivable from reinsurers | 115 | 140 | 115 | 140 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 531 | 391 | 531 | 391 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 3,405 | 2,732 | 3,405 | 2,732 | ||||||||||||
Other receivables | 16,404 | 18,601 | 14,372 | 16,384 | ||||||||||||
Loans | 579,426 | 450,251 | 568,764 | 445,117 | ||||||||||||
Term deposits | 538,174 | 559,341 | 531,861 | 553,428 | ||||||||||||
Available-for-sale financial assets | 985,806 | 870,533 | 972,451 | 858,936 | ||||||||||||
Held-to-maturity investments | 893,234 | 806,717 | 892,373 | 806,050 | ||||||||||||
Long-term equity investments | 222,527 | 201,661 | 245,314 | 215,643 | ||||||||||||
Statutory deposits | 6,333 | 6,333 | 5,653 | 5,653 | ||||||||||||
Investment properties | 10,734 | 9,747 | 3,578 | 3,525 | ||||||||||||
Constructions in progress | 16,769 | 16,901 | 14,497 | 14,030 | ||||||||||||
Fixed assets | 32,085 | 29,566 | 30,917 | 28,362 | ||||||||||||
Right-of-use assets | 3,559 | — | 3,357 | — | ||||||||||||
Intangible assets | 7,970 | 8,119 | 7,295 | 7,419 | ||||||||||||
Deferred tax assets | 121 | 1,257 | — | 817 | ||||||||||||
Other assets | 4,955 | 6,054 | 4,704 | 5,830 | ||||||||||||
Separate account assets | 9 | 9 | 9 | 9 | ||||||||||||
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Total Assets | 3,609,078 | 3,254,403 | 3,556,484 | 3,211,124 | ||||||||||||
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Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
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4.1 | Balance sheet as at 30 September 2019 (unaudited) (continued) |
RMB million (Unless otherwise stated)
As at | As at | As at | As at | |||||||||||||
30 September | 31 December | 30 September | 31 December | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Liabilities | ||||||||||||||||
Short-term borrowings | 1,018 | 993 | — | — | ||||||||||||
Financial liabilities at fair value through profit or loss | 4,101 | 2,680 | — | — | ||||||||||||
Derivative financial liabilities | — | 1,877 | — | 1,877 | ||||||||||||
Securities sold under agreements to repurchase | 126,025 | 192,141 | 122,259 | 188,932 | ||||||||||||
Premiums received in advance | 2,456 | 46,650 | 2,456 | 46,650 | ||||||||||||
Brokerage and commission payable | 6,748 | 5,268 | 6,748 | 5,268 | ||||||||||||
Reinsurance payable | 1,121 | 1,215 | 1,121 | 1,215 | ||||||||||||
Salary and welfare payable | 7,929 | 11,689 | 6,976 | 10,614 | ||||||||||||
Taxes payable | 854 | 3,296 | 590 | 2,941 | ||||||||||||
Claims payable | 50,898 | 49,465 | 50,898 | 49,465 | ||||||||||||
Policyholder dividends payable | 102,232 | 85,071 | 102,232 | 85,071 | ||||||||||||
Other payable | 14,278 | 13,322 | 13,409 | 12,275 | ||||||||||||
Policyholder deposits | 270,839 | 255,425 | 270,839 | 255,425 | ||||||||||||
Unearned premium reserves | 23,868 | 11,432 | 23,868 | 11,432 | ||||||||||||
Claim reserves | 18,550 | 14,805 | 18,550 | 14,805 | ||||||||||||
Reserves for life insurance | 2,353,172 | 2,082,425 | 2,353,172 | 2,082,425 | ||||||||||||
Reserves for long-term health insurance | 127,977 | 107,369 | 127,977 | 107,369 | ||||||||||||
Long-term borrowings | 19,009 | 19,157 | — | — | ||||||||||||
Bonds payable | 34,989 | — | 34,989 | — | ||||||||||||
Lease liabilities | 3,157 | — | 2,953 | — | ||||||||||||
Deferred tax liabilities | 8,384 | — | 8,830 | — | ||||||||||||
Other liabilities | 37,314 | 26,824 | 20,866 | 17,346 | ||||||||||||
Separate account liabilities | 9 | 9 | 9 | 9 | ||||||||||||
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Total liabilities | 3,214,928 | 2,931,113 | 3,168,742 | 2,893,119 | ||||||||||||
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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 | 54,863 | 54,945 | 54,206 | 54,288 | ||||||||||||
Accumulated other comprehensive income | 14,772 | (5,614 | ) | 14,487 | (5,678 | ) | ||||||||||
Surplus reserve | 69,304 | 68,029 | 69,256 | 67,981 | ||||||||||||
General reserve | 32,023 | 31,933 | 31,447 | 31,447 | ||||||||||||
Retained earnings | 181,736 | 133,022 | 182,290 | 133,911 | ||||||||||||
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Attributable to equity holders of the Company | 388,754 | 318,371 | ||||||||||||||
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Non-controlling interests | 5,396 | 4,919 | ||||||||||||||
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Total equity | 394,150 | 323,290 | 387,742 | 318,005 | ||||||||||||
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Total liabilities and equity | 3,609,078 | 3,254,403 | 3,556,484 | 3,211,124 | ||||||||||||
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Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
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4.2 | Income statement for the third quarter of 2019 (unaudited) |
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Operating income | 624,024 | 540,967 | 620,351 | 539,798 | ||||||||||||
Premiums earned | 480,521 | 457,295 | 480,521 | 457,295 | ||||||||||||
Premium income | 497,047 | 468,534 | 497,047 | 468,534 | ||||||||||||
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Including: Reinsurance premium income | 3 | 5 | 3 | 5 | ||||||||||||
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Less: Premiums ceded to reinsurers | (4,038 | ) | (3,376 | ) | (4,038 | ) | (3,376 | ) | ||||||||
Change in unearned premium reserves | (12,488 | ) | (7,863 | ) | (12,488 | ) | (7,863 | ) | ||||||||
Investment income | 126,239 | 83,870 | 125,142 | 83,623 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Including: Share of profit of associates and joint ventures | 8,712 | 6,150 | 8,857 | 6,141 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Other gains | 53 | 99 | 35 | 91 | ||||||||||||
Fair value gains/(losses) | 11,947 | (5,412 | ) | 11,437 | (5,199 | ) | ||||||||||
Foreign exchange gains/(losses) | (27 | ) | (411 | ) | 295 | 318 | ||||||||||
Other operating income | 5,278 | 5,508 | 2,908 | 3,652 | ||||||||||||
Gains/(losses) on disposal of assets | 13 | 18 | 13 | 18 | ||||||||||||
2. Operating expenses | (561,953 | ) | (515,607 | ) | (559,617 | ) | (513,916 | ) | ||||||||
Surrenders | (43,739 | ) | (107,826 | ) | (43,739 | ) | (107,826 | ) | ||||||||
Claims expense | (99,575 | ) | (143,524 | ) | (99,575 | ) | (143,524 | ) | ||||||||
Less: Claims recoverable from reinsurers | 2,786 | 1,642 | 2,786 | 1,642 | ||||||||||||
Increase in insurance contracts reserve | (295,086 | ) | (162,355 | ) | (295,086 | ) | (162,355 | ) | ||||||||
Less: Insurance reserves recoverable from reinsurers | 788 | 657 | 788 | 657 | ||||||||||||
Policyholder dividends resulting from participation in profits | (17,810 | ) | (11,706 | ) | (17,810 | ) | (11,706 | ) | ||||||||
Tax and surcharges | (620 | ) | (512 | ) | (529 | ) | (444 | ) | ||||||||
Underwriting and policy acquisition costs | (63,011 | ) | (48,452 | ) | (63,011 | ) | (48,452 | ) | ||||||||
Administrative expenses | (26,506 | ) | (23,528 | ) | (25,028 | ) | (22,089 | ) | ||||||||
Less: Expenses recoverable from reinsurers | 202 | 196 | 202 | 196 | ||||||||||||
Other operating expenses | (15,467 | ) | (14,603 | ) | (14,792 | ) | (14,434 | ) | ||||||||
Impairment losses | (3,915 | ) | (5,596 | ) | (3,823 | ) | (5,581 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
3. Operating profit | 62,071 | 25,360 | 60,734 | 25,882 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Add:Non-operating income | 76 | 43 | 54 | 32 | ||||||||||||
Less:Non-operating expenses | (190 | ) | (317 | ) | (184 | ) | (317 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
4. Net profit before income tax | 61,957 | 25,086 | 60,604 | 25,597 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Income tax expenses | (3,699 | ) | (4,778 | ) | (3,327 | ) | (4,519 | ) | ||||||||
|
|
|
|
|
|
|
|
Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
12
4.2 | Income statement for the third quarter of 2019 (unaudited) (continued) |
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
5. Net profit | 58,258 | �� | 20,308 | 57,277 | 21,078 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
According to operating continuity: | ||||||||||||||||
– Net profit from continuing operations | 58,258 | 20,308 | 57,277 | 21,078 | ||||||||||||
According to ownership of the company: | ||||||||||||||||
– Equity holders of the Company | 57,702 | 19,869 | ||||||||||||||
–Non-controlling interests | 556 | 439 | ||||||||||||||
6. Earnings per share | ||||||||||||||||
Basic earnings per share | RMB2.03 | RMB0.69 | ||||||||||||||
Diluted earnings per share | RMB2.03 | RMB0.69 | ||||||||||||||
7. Other Comprehensive income | 20,424 | 1,510 | 20,149 | 2,119 | ||||||||||||
Other comprehensive income attributable to equity holders of the Company (net of tax) | 20,370 | 1,489 | ||||||||||||||
Other comprehensive income that may be reclassified to profit or loss | 20,370 | 1,489 | 20,149 | 2,119 | ||||||||||||
Fair value gains/(losses) onavailable-for-sale financial assets | 32,911 | (8,314 | ) | 32,730 | (7,496 | ) | ||||||||||
Less: Amount transferred to net profit from other comprehensive income | (5,010 | ) | 10,720 | (4,975 | ) | 10,718 | ||||||||||
Portion of fair value changes onavailable-for-sale financial assets attributable to participating policyholders | (8,122 | ) | (1,750 | ) | (8,122 | ) | (1,750 | ) | ||||||||
Other comprehensive income that may be transferred to profit or loss under the equity method | 328 | 632 | 330 | 520 | ||||||||||||
Exchanges differences on translating foreign operations | 263 | 201 | 186 | 127 | ||||||||||||
Other comprehensive income that will not be reclassified to profit or loss | — | — | — | — | ||||||||||||
Other comprehensive income attributable tonon-controlling interests (net of tax) | 54 | 21 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
8. Total Comprehensive income | 78,682 | 21,818 | 77,426 | 23,197 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
– Attributable to equity holders of the Company | 78,072 | 21,358 | ||||||||||||||
– Attributable tonon-controlling interests | 610 | 460 |
Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
13
4.2 | Income statement for the third quarter of 2019 (unaudited) (continued) |
RMB million (Unless otherwise stated)
For the three months | For the three months | |||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Operating income | 166,791 | 133,795 | 165,915 | 133,557 | ||||||||||||
Premiums earned | 119,224 | 108,310 | 119,224 | 108,310 | ||||||||||||
Premium income | 119,071 | 108,052 | 119,071 | 108,052 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Including: Reinsurance premium income | 1 | 2 | 1 | 2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Premiums ceded to reinsurers | (1,397 | ) | (943 | ) | (1,397 | ) | (943 | ) | ||||||||
Change in unearned premium reserves | 1,550 | 1,201 | 1,550 | 1,201 | ||||||||||||
Investment income | 45,819 | 24,480 | 45,351 | 24,082 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Including: Share of profit of associates and joint venture | 3,047 | 2,014 | 2,927 | 1,853 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Other gains | 31 | 48 | 13 | 47 | ||||||||||||
Fair value gains/(losses) | 98 | (152 | ) | 126 | (106 | ) | ||||||||||
Foreign exchange gains/(losses) | (57 | ) | (513 | ) | 257 | 194 | ||||||||||
Other operating income | 1,663 | 1,611 | 931 | 1,019 | ||||||||||||
Gains/(losses) on disposal of assets | 13 | 11 | 13 | 11 | ||||||||||||
2. Operating expenses | (143,678 | ) | (130,049 | ) | (143,116 | ) | (129,588 | ) | ||||||||
Surrenders | (7,563 | ) | (7,713 | ) | (7,563 | ) | (7,713 | ) | ||||||||
Claims expense | (30,392 | ) | (47,932 | ) | (30,392 | ) | (47,932 | ) | ||||||||
Less: Claims recoverable from reinsurers | 956 | 714 | 956 | 714 | ||||||||||||
Increase in insurance contracts reserve | (68,039 | ) | (43,263 | ) | (68,039 | ) | (43,263 | ) | ||||||||
Less: Insurance reserves recoverable from reinsurers | 261 | 107 | 261 | 107 | ||||||||||||
Policyholder dividends resulting from participation in profits | (6,974 | ) | (2,394 | ) | (6,974 | ) | (2,394 | ) | ||||||||
Tax and surcharges | (143 | ) | (113 | ) | (128 | ) | (105 | ) | ||||||||
Underwriting and policy acquisition costs | (17,416 | ) | (12,745 | ) | (17,416 | ) | (12,745 | ) | ||||||||
Administrative expenses | (8,693 | ) | (7,777 | ) | (8,275 | ) | (7,277 | ) | ||||||||
Less: Expenses recoverable from reinsurers | 84 | 59 | 84 | 59 | ||||||||||||
Other operating expenses | (5,210 | ) | (4,665 | ) | (5,252 | ) | (4,714 | ) | ||||||||
Impairment losses | (549 | ) | (4,327 | ) | (378 | ) | (4,325 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
3. Operating profit | 23,113 | 3,746 | 22,799 | 3,969 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Add:Non-operating income | 27 | 19 | 14 | 15 | ||||||||||||
Less:Non-operating expenses | (76 | ) | (126 | ) | (75 | ) | (126 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
4. Net profit before income tax | 23,064 | 3,639 | 22,738 | 3,858 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Income tax expenses | (2,735 | ) | (34 | ) | (2,672 | ) | 59 | |||||||||
|
|
|
|
|
|
|
|
Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
14
4.2 | Income statement for the third quarter of 2019 (unaudited) (continued) |
RMB million (Unless otherwise stated)
For the three months | For the three months | |||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
5. Net profit | 20,329 | 3,605 | 20,066 | 3,917 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
According to operating continuity: | ||||||||||||||||
– Net profit from continuing operations | 20,329 | 3,605 | 20,066 | 3,917 | ||||||||||||
According to ownership of the company: | ||||||||||||||||
– Equity holders of the Company | 20,103 | 3,446 | ||||||||||||||
–Non-controlling interests | 226 | 159 | ||||||||||||||
6. Earnings per share | ||||||||||||||||
Basic earnings per share | RMB0.71 | RMB0.12 | ||||||||||||||
Diluted earnings per share | RMB0.71 | RMB0.12 | ||||||||||||||
7. Other Comprehensive income | 207 | 3,759 | 96 | 2,909 | ||||||||||||
Other comprehensive income attributable to equity holders of the Company (net of tax) | 192 | 3,740 | ||||||||||||||
Other comprehensive income that may be reclassified to profit or loss | 192 | 3,740 | 96 | 2,909 | ||||||||||||
Fair value gains/(losses) onavailable-for-sale financial assets | 1,297 | (3,058 | ) | 1,190 | (3,600 | ) | ||||||||||
Less: Amount transferred to net profit from other comprehensive income | (1,463 | ) | 7,401 | (1,455 | ) | 7,391 | ||||||||||
Portion of fair value changes onavailable-for-sale financial assets attributable to participating policyholders | 236 | (945 | ) | 236 | (945 | ) | ||||||||||
Other comprehensive income that may be transferred to profit or loss under the equity method | (77 | ) | 3 | (50 | ) | 4 | ||||||||||
Exchanges differences on translating foreign operations | 199 | 339 | 175 | 59 | ||||||||||||
Other comprehensive income that will not be reclassified to profit or loss | — | — | — | — | ||||||||||||
Other comprehensive income attributable tonon-controlling interests (net of tax) | 15 | 19 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
8. Total Comprehensive income | 20,536 | 7,364 | 20,162 | 6,826 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
– Attributable to equity holders of the Company | 20,295 | 7,186 | ||||||||||||||
– Attributable tonon-controlling interests | 241 | 178 |
Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
15
4.3 | Cash flow statement for the third quarter of 2019 (unaudited) |
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
1. Cash flows from operating activities | ||||||||||||||||
Premiums received | 433,497 | 435,288 | 433,497 | 435,288 | ||||||||||||
Net increase in policyholder deposits | 15,761 | 20,860 | 15,761 | 20,860 | ||||||||||||
Net cash received from financial assets at fair value through profit or loss | 15,256 | — | 26,887 | — | ||||||||||||
Net cash received from financial liabilities at fair value through profit or loss | 1,196 | 898 | — | — | ||||||||||||
Cash received from other operating activities | 7,579 | 7,372 | 3,985 | 3,740 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from operating activities | 473,289 | 464,418 | 480,130 | 459,888 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for claims | (141,881 | ) | (246,874 | ) | (141,881 | ) | (246,874 | ) | ||||||||
Net cash paid for reinsurance business | (764 | ) | (1,174 | ) | (764 | ) | (1,174 | ) | ||||||||
Cash paid for brokerage and commission fees | (61,531 | ) | (49,313 | ) | (61,531 | ) | (49,313 | ) | ||||||||
Cash paid for policyholder dividends | (11,466 | ) | (15,348 | ) | (11,466 | ) | (15,348 | ) | ||||||||
Cash paid to and for employees | (18,296 | ) | (16,275 | ) | (17,280 | ) | (15,381 | ) | ||||||||
Cash paid for taxes and surcharges | (11,590 | ) | (12,177 | ) | (10,459 | ) | (11,499 | ) | ||||||||
Net cash paid for financial assets at fair value through profit or loss | — | (28,336 | ) | — | (24,675 | ) | ||||||||||
Cash paid for other operating activities | (20,381 | ) | (18,488 | ) | (17,183 | ) | (16,398 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from operating activities | (265,909 | ) | (387,985 | ) | (260,564 | ) | (380,662 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from operating activities | 207,380 | 76,433 | 219,566 | 79,226 | ||||||||||||
|
|
|
|
|
|
|
|
Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
16
4.3 | Cash flow statement for the third quarter of 2019 (unaudited) (continued) |
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
2. Cash flows from investing activities | ||||||||||||||||
Cash received from sales and redemption of investments | 646,322 | 418,771 | 635,534 | 418,781 | ||||||||||||
Cash received from investment income | 103,842 | 98,111 | 103,767 | 92,741 | ||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 35 | 66 | 35 | 66 | ||||||||||||
Net cash received from securities purchased under agreements to resell | 7,981 | 30,058 | 7,483 | 29,676 | ||||||||||||
Net cash received from the disposal of subsidiaries and other business units | 1,896 | — | 2,077 | 351 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from investing activities | 760,076 | 547,006 | 748,896 | 541,615 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for investments | (898,683 | ) | (588,831 | ) | (893,796 | ) | (583,792 | ) | ||||||||
Net increase in policy loans | (20,588 | ) | (25,169 | ) | (20,588 | ) | (25,169 | ) | ||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (6,078 | ) | (10,650 | ) | (5,484 | ) | (9,437 | ) | ||||||||
Net cash paid for the acquisition of subsidiaries and other business units | — | (775 | ) | |||||||||||||
Cash paid for other investing activities | — | (299 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from investing activities | (925,349 | ) | (625,724 | ) | (919,868 | ) | (618,398 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from investing activities | (165,273 | ) | (78,718 | ) | (170,972 | ) | (76,783 | ) | ||||||||
|
|
|
|
|
|
|
|
Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
17
4.3 | Cash flow statement for the third quarter of 2019 (unaudited) (continued) |
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Group | Group | Company | Company | |||||||||||||
3. Cash flows from financing activities | ||||||||||||||||
Cash received from investment | 7,034 | 1,562 | — | — | ||||||||||||
Including: Cash received from the investment ofnon-controlling interests by subsidiaries | 7,034 | 1,562 | ||||||||||||||
Proceeds from issuance of bonds | 34,988 | — | 34,988 | — | ||||||||||||
Cash received from borrowings | 26 | 730 | — | — | ||||||||||||
Net cash received from securities sold under agreements to repurchase | — | 32,317 | — | 31,578 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from financing activities | 42,048 | 34,609 | 34,988 | 31,578 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash repaid to lenders | (565 | ) | — | — | — | |||||||||||
Cash paid for dividends and interests and repaid for lenders | (6,620 | ) | (14,713 | ) | (6,041 | ) | (14,108 | ) | ||||||||
Net cash paid for securities sold under agreements to repurchase | (65,595 | ) | — | (66,673 | ) | — | ||||||||||
Cash paid for other financing activities | (1,383 | ) | (312 | ) | (825 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from financing activities | (74,163 | ) | (15,025 | ) | (73,539 | ) | (14,108 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from financing activities | (32,115 | ) | 19,584 | (38,551 | ) | 17,470 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
4. Effect of changes in foreign exchange rate on cash and cash equivalents | 116 | (3 | ) | 78 | 121 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
5. Net increase in cash and cash equivalents | 10,108 | 17,296 | 10,121 | 20,034 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Add: Opening balance of cash and cash equivalents | 50,809 | 48,586 | 47,904 | 44,186 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
6. Closing balance of cash and cash equivalents | 60,917 | 65,882 | 58,025 | 64,220 | ||||||||||||
|
|
|
|
|
|
|
|
Wang Bin Chairman | Zhao Peng Vice President in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Accounting Department |
18