Exhibit 99.1
中國人壽保險股份有限公司
CHINA LIFE INSURANCE COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 2628)
2022 FIRST 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.
IMPORTANT NOTICE
• | The Company’s Board of Directors, the Board of Supervisors, its Directors, Supervisors and Senior Management warrant that the information in the 2022 first quarter report is true, accurate and complete and contains no false representations, misleading statements or material omissions, and jointly and severally accept legal responsibility. |
• | The financial data for the 2022 first quarter report of the Company 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 the International Financial Reporting Standards. |
• | Mr. Yuan Changqing1, Legal Representative of the Company (assuming the role and duties of the legal representative of the Company), Ms. Huang Xiumei, Vice President in charge of financial affairs, Mr. Li Mingguang, Chief Actuary and Ms. Hu Jin, Head of the Financial Department, confirm that the financial statements in the 2022 first quarter report are true, accurate and complete. |
1 | Mr. Yuan Changqing, a Non-Executive Director of the Company, was elected at the sixth meeting of the seventh session of the Board of Directors of the Company on 13 January 2022 to assume the roles and duties of the Chairman of the Board and the legal representative of the Company during the period commencing from the date of passing of the Board resolution and ending on the effective date of the appointment of a new Chairman of the Board. The same applies to any relevant statements later in this report. |
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1. | MAJOR FINANCIAL DATA |
1.1 | Major Accounting Data and Financial Indicators |
Currency: RMB | ||||||||||||||||
Items | As at 31 March 2022 | As at 31 December 2021 | Increase/(decrease) compared to 31 December 2021 | |||||||||||||
Total assets (million) | 4,915,845 | 4,891,085 | 0.5 | % | ||||||||||||
Equity attributable to equity holders of the Company (million) | 465,108 | 478,585 | -2.8 | % | ||||||||||||
Items | For the Reporting Period | For the corresponding period of 20211 | Increase/(decrease) compared to the corresponding period of 2021 (after restatement) | |||||||||||||
Before restatement | After restatement | |||||||||||||||
Operating income (million) | 343,777 | 373,458 | 373,484 | -8.0 | % | |||||||||||
Net profit attributable to equity holders of the Company (million) | 15,178 | 28,589 | 28,585 | -46.9 | % | |||||||||||
Net profit attributable to equity holders of the Company after deducting non-recurring items (million) | 15,206 | 28,639 | 28,635 | -46.9 | % | |||||||||||
Net cash flows from operating activities (million) | 174,337 | 161,232 | 161,229 | 8.1 | % | |||||||||||
Earnings per share (basic and diluted)2 (RMB per share) | 0.54 | 1.01 | 1.01 | -46.9 | % | |||||||||||
Weighted average ROE (%) | 3.22 | 6.23 | 6.23 | | A decrease of 3.01 percentage points | |
Notes:
1. | The financial data for the first quarter in 2021 in this report have been restated due to a business combination under common control in 2021. |
2. | In calculating the percentage change of “Earnings per share (basic and diluted)”, the tail differences of the basic figures have been taken into account. |
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1.2 | Non-recurring Items and Amounts |
RMB million | ||||
Non-recurring items | For the Reporting Period | |||
Gains/(losses) on disposal of non-current assets | 11 | |||
Government subsidies recognized in current gains/(losses) | 18 | |||
External donations | — | |||
Net non-operating income and expenses other than those mentioned above | (63 | ) | ||
Effect of income tax | 8 | |||
Attributable to non-controlling interests | (2 | ) | ||
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Total | (28 | ) | ||
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Note: | The Company is an insurance company and investment (application of insurance fund) is one of its major businesses. Therefore, the non-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 and available-for-sale financial assets. |
1.3 | Particulars of and Reasons for Changes in Major Accounting Data and Financial Indicators |
Items | Increase/(decrease) | Main reasons | ||
Net profit attributable to equity holders of the Company | -46.9% | A decrease in investment income on a year- on-year basis due to the combined effects of the volatility in equity market in the Reporting Period and a higher base for the corresponding period of 2021 | ||
Net profit attributable to equity holders of the Company after deducting non-recurring items | -46.9% | |||
Earnings per share (basic and diluted) | -46.9% | A decrease in net profit attributable to equity holders of the Company in the Reporting Period on a year-on-year basis | ||
Weighted average ROE | A decrease of 3.01 percentage points |
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2. | INFORMATION ON SHAREHOLDERS |
Total Number of Ordinary Share 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: 150,895 | |||||||||||||||||
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Number of H Share shareholders: 25,301 | ||||||||||||||||||
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 | 25.93 | % | 7,328,208,045 | — | — | ||||||||||||
China Securities Finance Corporation Limited | State-owned legal person | 2.51 | % | 708,240,246 | — | — | ||||||||||||
Central Huijin Asset Management Limited | State-owned legal person | 0.41 | % | 117,165,585 | — | — | ||||||||||||
Hong Kong Securities Clearing Company Limited | Overseas legal person | 0.17 | % | 49,369,523 | — | — | ||||||||||||
Guosen Securities Co., Ltd. – Founder Fubon CSI Insurance Theme Index Security Investment Fund | Other | 0.08 | % | 23,045,983 | — | — | ||||||||||||
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 | % | 11,521,704 | — | — | ||||||||||||
Li Zhuo | Domestic natural person | 0.04 | % | 10,233,133 | — | — | ||||||||||||
China International Television Corporation | State-owned legal person | 0.04 | % | 10,000,000 | — | — |
Notes:
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 has 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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3. | QUARTERLY BUSINESS OVERVIEW |
Since 2022, China’s economic growth has generally remained at a reasonable range, however, there were increasing complexity and uncertainty in both domestic and international environments, some of which went beyond expectations. With the recent sporadic outbreaks of the pandemic, China has faced a new downward pressure on its economy, and the insurance industry has also experienced further slowdown in business growth. During the Reporting Period, the Company proactively responded to a variety of challenges and well proceeded with various tasks by closely upholding the high-quality development requirements, and its market leading position was solidified. Firstly, the Company’s business development kept the momentum of stable growth despite being under constant pressures. As affected by the COVID-19 pandemic, the demands for insurance consumption were hardly released in full, and the development of the Company’s new-policy business was still under pressure, however, there was improvement in its business structure. In the first quarter of 2022, the Company achieved revenues from insurance businesses2 of RMB315,011 million, a decrease of 2.7% year on year. In particular, premiums from new policies amounted to RMB100,895 million, a decrease of 1.5% year on year. Renewal premiums amounted to RMB214,116 million, a decrease of 3.3% year on year. First-year regular premiums were RMB65,366 million, a year-on-year decrease of 4.3%, the decline of which was significantly narrowed as compared to the corresponding period of 2021. First-year regular premiums with a payment duration of ten years or longer were RMB19,106 million, the percentage of which rose slightly in the first-year regular premiums. Short-term insurance premiums amounted to RMB34,743 million, an increase of 3.5% year on year. The value of new business for the first quarter of 2022 decreased by 14.3% year on year. The surrender rate3 was 0.28%, a decrease of 0.10 percentage point year on year. Secondly, the Company continued to focus on improving its sales force quality while stabilizing its scale. With its commitment to the strategy of “productive agents- driven business”, the Company constantly dedicated more resources to attracting and nurturing the high-performance agents, and strengthened its day-to-day management, so as to push forward the transformation of sales teams to be more specialized, professional and digitalized. As at the end of the Reporting Period, the Company’s total sales force was 0.846 million, of which, the number of agents of the individual agent business sector was 0.78 million, which declined slightly as compared to the previous quarter. However, the quality metrics of sales force were stable and its foundation remained solid. Thirdly, the Company adopted various measures to keep a balance between short-term asset volatility and long-term investment deployment. As at the end of the Reporting Period, the Company’s investment assets reached RMB4,717,681 million. In the first quarter of 2022, China’s interest rate was still at a low level, and the equity market witnessed a greater drawdown, which had negative impacts on the Company’s investment income. The Company insisted on the philosophy of “long-term investment, prudent investment and value investment”, appropriately slowed down its allocation to long-duration assets, and increased investment in short- to medium- term fixed-income categories to lessen its asset allocation pressure. The Company also made a long-term asset allocation deployment in a prudent manner by taking advantage of the medium-to long- term opportunities in the equity market. In the first quarter of 2022, the Company registered gross investment income4 of RMB44,558 million, and the annualized gross investment yield5 reached 3.88%. The net investment income6 was RMB45,814 million, an increase of 10.7% year on year, and the annualized net investment yield7 was 4.00%. Fourthly, the Company consistently maintained high solvency levels. From the quarterly solvency report for the first quarter of 2022, the insurance industry started to implement the “Solvency Regulatory Rules II for Insurance Companies” (the “C-ROSS (Phase II) Regulation”). Under the C-ROSS (Phase II) Regulation, as at the end of the Reporting Period, the core and comprehensive solvency ratios of the Company were 176.39% and 247.60%, respectively, reflecting the adequacy of the core capital and overall capital, and relatively high levels of solvency of the Company. Meanwhile, under the “Solvency Regulatory Rules for Insurance Companies (No. 1 – No. 17)” (the “C-ROSS (Phase I) Regulation”), as at the end of the Reporting Period, the core and comprehensive solvency ratios of the Company were 241.70% and 249.95% on a pro forma basis, respectively.
2 | Revenues from insurance businesses is consistent with Premium Income in the attached consolidated income statement. |
3 | Surrender Rate = Surrender payment/(Opening balance of life insurance reserves and long-term health insurance reserves + Premiums from life insurance and long-term health insurance) |
4 | Gross investment income = Net investment income + Net realized gains on investment assets + Fair value gains/losses – Impairment losses of investment assets |
5 | Gross investment yield = [(Gross investment income – Interest paid for financial assets sold under agreements to repurchase)/((Investment assets at the end of the previous year – Financial assets sold under agreements to repurchase at the end of the previous year + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period)/2)]/90×365 |
6 | Net investment income mainly 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 income from investments in associates and joint ventures, etc. |
7 | Net investment yield = [(Net investment income – Interest paid for financial assets sold under agreements to repurchase)/ ((Investment assets at the end of the previous year – Financial assets sold under agreements to repurchase at the end of the previous year + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period)/2)]/90 ×365 |
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In the first quarter of 2022, due to the combined effects of the volatility in the equity market and a higher base for the corresponding period of 2021, the Company’s investment income decreased on a year-on-year basis, as a result of which, net profit attributable to equity holders of the Company was RMB15,178 million, a decrease of 46.9% year on year.
Facing a complicated and severe external environment and multiple challenges, the Company will uphold the guideline of making progress while maintaining stability, adhere to the original role of insurance, and constantly deepen the supply-side reforms, so as to push forward the steady development of its business with great efforts. Furthermore, the Company will vigorously carry out reforms and innovations in greater depth, further optimize its operations and services, consistently strengthen the protection of customers’ rights and interests, and vigorously reinforce the risk prevention and control, with a view to firmly pursuing its high-quality development.
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4. | QUARTERLY FINANCIAL STATEMENTS |
Balance sheet as at 31 March 2022 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||||||
As at 31 March | As at 31 December | As at 31 March | As at 31 December | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
ASSETS | Group | Group | Company | Company | ||||||||||||
Assets | ||||||||||||||||
Cash fund | 82,882 | 60,875 | 75,827 | 53,591 | ||||||||||||
Financial assets at fair value through profit or loss | 189,408 | 206,764 | 98,924 | 120,184 | ||||||||||||
Securities purchased under agreements to resell | 42,241 | 12,915 | 21,951 | 3,463 | ||||||||||||
Interest receivables | 48,768 | 50,801 | 46,758 | 49,583 | ||||||||||||
Premiums receivables | 53,355 | 20,361 | 53,355 | 20,361 | ||||||||||||
Receivables from reinsurers | 516 | 485 | 516 | 485 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 1,016 | 823 | 1,016 | 823 | ||||||||||||
Claim reserves receivable from reinsurers | 521 | 412 | 521 | 412 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 688 | 636 | 688 | 636 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 4,206 | 4,274 | 4,206 | 4,274 | ||||||||||||
Other receivables | 15,334 | 25,667 | 11,805 | 21,347 | ||||||||||||
Loans | 665,814 | 666,087 | 647,927 | 646,998 | ||||||||||||
Term deposits | 542,230 | 529,488 | 505,925 | 491,332 | ||||||||||||
Available-for-sale financial assets | 1,377,687 | 1,429,287 | 1,321,698 | 1,370,035 | ||||||||||||
Held-to-maturity investments | 1,531,012 | 1,533,753 | 1,528,851 | 1,531,640 | ||||||||||||
Long-term equity investments | 266,818 | 257,953 | 407,405 | 385,723 | ||||||||||||
Statutory deposits | 6,333 | 6,333 | 5,653 | 5,653 | ||||||||||||
Investment properties | 13,256 | 13,374 | 6,142 | 6,191 | ||||||||||||
Constructions in progress | 6,021 | 6,789 | 5,523 | 6,350 | ||||||||||||
Fixed assets | 47,353 | 46,847 | 44,544 | 44,014 | ||||||||||||
Right-of-use assets | 2,261 | 2,518 | 2,025 | 2,239 | ||||||||||||
Intangible assets | 8,335 | 8,409 | 7,537 | 7,599 | ||||||||||||
Deferred tax assets | 3,861 | 121 | 3,652 | — | ||||||||||||
Other assets | 5,921 | 6,104 | 5,534 | 5,760 | ||||||||||||
Separate account assets | 8 | 9 | 8 | 9 | ||||||||||||
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Total Assets | 4,915,845 | 4,891,085 | 4,807,991 | 4,778,702 | ||||||||||||
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Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
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Balance sheet as at 31 March 2022 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
As at 31 March | As at 31 December | As at 31 March | As at 31 December | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
LIABILITIES AND EQUITY | Group | Group | Company | Company | ||||||||||||
Liabilities | ||||||||||||||||
Short-term borrowings | 1,449 | 1,476 | — | — | ||||||||||||
Financial liabilities at fair value through profit or loss | 3,085 | 3,416 | — | — | ||||||||||||
Securities sold under agreements to repurchase | 79,813 | 239,446 | 70,667 | 232,496 | ||||||||||||
Premiums received in advance | 3,062 | 48,699 | 3,062 | 48,699 | ||||||||||||
Brokerage and commission payable | 6,519 | 5,352 | 6,519 | 5,351 | ||||||||||||
Reinsurance payable | 1,082 | 808 | 1,082 | 808 | ||||||||||||
Salary and welfare payable | 11,932 | 13,165 | 10,734 | 11,791 | ||||||||||||
Taxes payable | 1,328 | 967 | 817 | 435 | ||||||||||||
Claims payable | 59,365 | 56,818 | 59,365 | 56,818 | ||||||||||||
Policyholder dividends payable | 114,403 | 124,949 | 114,403 | 124,949 | ||||||||||||
Other payable | 17,584 | 18,953 | 15,335 | 16,540 | ||||||||||||
Policyholder deposits | 329,718 | 313,585 | 329,718 | 313,585 | ||||||||||||
Unearned premium reserves | 32,783 | 14,062 | 32,783 | 14,062 | ||||||||||||
Claim reserves | 26,070 | 26,234 | 26,070 | 26,234 | ||||||||||||
Reserves for life insurance | 3,404,564 | 3,182,083 | 3,404,564 | 3,182,083 | ||||||||||||
Reserves for long-term health insurance | 204,751 | 197,520 | 204,751 | 197,520 | ||||||||||||
Long-term borrowings | 16,956 | 17,210 | — | — | ||||||||||||
Bonds payable | 34,995 | 34,994 | 34,995 | 34,994 | ||||||||||||
Lease liabilities | 2,007 | 2,182 | 1,752 | 1,889 | ||||||||||||
Deferred tax liabilities | 316 | 7,481 | — | 6,481 | ||||||||||||
Other liabilities | 90,665 | 95,018 | 26,375 | 26,901 | ||||||||||||
Separate account liabilities | 8 | 9 | 8 | 9 | ||||||||||||
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Total liabilities | 4,442,455 | 4,404,427 | 4,343,000 | 4,301,645 | ||||||||||||
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Equity | ||||||||||||||||
Share capital | 28,265 | 28,265 | 28,265 | 28,265 | ||||||||||||
Capital reserve | 54,215 | 54,304 | 52,920 | 53,056 | ||||||||||||
Accumulated other comprehensive income | 21,733 | 50,299 | 21,200 | 49,489 | ||||||||||||
Surplus reserve | 96,132 | 96,132 | 96,084 | 96,084 | ||||||||||||
General reserve | 48,340 | 48,320 | 47,409 | 47,409 | ||||||||||||
Retained earnings | 216,423 | 201,265 | 219,113 | 202,754 | ||||||||||||
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Attributable to equity holders of the Company | 465,108 | 478,585 | ||||||||||||||
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Non-controlling interests | 8,282 | 8,073 | ||||||||||||||
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Total equity | 473,390 | 486,658 | 464,991 | 477,057 | ||||||||||||
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Total liabilities and equity | 4,915,845 | 4,891,085 | 4,807,991 | 4,778,702 | ||||||||||||
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Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
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Income statement for the first quarter of 2022 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
ITEMS | Group | Group | Company | Company | ||||||||||||
(Restated) | ||||||||||||||||
1 Operating income | 343,777 | 373,484 | 343,469 | 372,255 | ||||||||||||
Premiums earned | 294,483 | 304,756 | 294,483 | 304,756 | ||||||||||||
Premium income | 315,011 | 323,892 | 315,011 | 323,892 | ||||||||||||
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Including: Reinsurance premium income | — | — | — | — | ||||||||||||
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Less: Premiums ceded to reinsurers | (2,000 | ) | (1,553 | ) | (2,000 | ) | (1,553 | ) | ||||||||
Change in unearned premium reserves | (18,528 | ) | (17,583 | ) | (18,528 | ) | (17,583 | ) | ||||||||
Investment income | 53,991 | 73,484 | 52,910 | 72,734 | ||||||||||||
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Including: Share of profit of associates and joint ventures | 2,354 | 3,015 | 2,921 | 3,039 | ||||||||||||
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Other gains | 62 | 111 | 55 | 58 | ||||||||||||
Fair value gains/(losses) | (6,997 | ) | (7,269 | ) | (4,890 | ) | (6,451 | ) | ||||||||
Foreign exchange gains/(losses) | 171 | 144 | (28 | ) | 48 | |||||||||||
Other operating income | 2,058 | 2,244 | 930 | 1,096 | ||||||||||||
Gains/(losses) on disposal of assets | 9 | 14 | 9 | 14 | ||||||||||||
2 Operating expenses | (327,430 | ) | (338,236 | ) | (326,602 | ) | (337,372 | ) | ||||||||
Surrenders | (10,315 | ) | (12,308 | ) | (10,315 | ) | (12,308 | ) | ||||||||
Claims expense | (41,404 | ) | (43,033 | ) | (41,404 | ) | (43,033 | ) | ||||||||
Less: Claims recoverable from reinsurers | 1,640 | 1,433 | 1,640 | 1,433 | ||||||||||||
Increase in insurance contracts reserve | (229,548 | ) | (231,822 | ) | (229,548 | ) | (231,822 | ) | ||||||||
Less: Insurance reserves recoverable from reinsurers | 93 | 247 | 93 | 247 | ||||||||||||
Policyholder dividends resulting from participation in profits | (5,882 | ) | (8,127 | ) | (5,882 | ) | (8,127 | ) | ||||||||
Tax and surcharges | (234 | ) | (365 | ) | (200 | ) | (330 | ) | ||||||||
Underwriting and policy acquisition costs | (22,845 | ) | (27,852 | ) | (22,844 | ) | (27,843 | ) | ||||||||
Administrative expenses | (9,502 | ) | (9,371 | ) | (8,870 | ) | (8,793 | ) | ||||||||
Less: Expenses recoverable from reinsurers | 70 | 83 | 70 | 83 | ||||||||||||
Other operating expenses | (6,992 | ) | (5,979 | ) | (6,831 | ) | (5,737 | ) | ||||||||
Impairment losses | (2,511 | ) | (1,142 | ) | (2,511 | ) | (1,142 | ) | ||||||||
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Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
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Income statement for the first quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
ITEMS | Group | Group | Company | Company | ||||||||||||
(Restated) | ||||||||||||||||
3 Operating profit | 16,347 | 35,248 | 16,867 | 34,883 | ||||||||||||
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Add: Non-operating income | 14 | 12 | 13 | 10 | ||||||||||||
Less: Non-operating expenses | (74 | ) | (130 | ) | (74 | ) | (130 | ) | ||||||||
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4 Net profit before income tax | 16,287 | 35,130 | 16,806 | 34,763 | ||||||||||||
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Less: Income tax expenses | (761 | ) | (6,149 | ) | (447 | ) | (5,808 | ) | ||||||||
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5 Net profit | 15,526 | 28,981 | 16,359 | 28,955 | ||||||||||||
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According to operating continuity: | ||||||||||||||||
– Net profit from continuing operations | 15,526 | 28,981 | 16,359 | 28,955 | ||||||||||||
According to ownership of the company: | ||||||||||||||||
– Equity holders of the Company | 15,178 | 28,585 | ||||||||||||||
– Non-controlling interests | 348 | 396 | ||||||||||||||
6 Earnings per share | ||||||||||||||||
Basic earnings per share | RMB0.54 | RMB1.01 | ||||||||||||||
Diluted earnings per share | RMB0.54 | RMB1.01 |
Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
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Income statement for the first quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
ITEMS | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||||
(Restated) | ||||||||||||||||
7 Other comprehensive income | (28,705 | ) | (11,404 | ) | (28,289 | ) | (11,247 | ) | ||||||||
Other comprehensive income attributable to equity holders of the Company (net of tax) | (28,566 | ) | (11,326 | ) | ||||||||||||
Other comprehensive income that may be reclassified to profit or loss | (28,353 | ) | (11,278 | ) | (28,076 | ) | (11,199 | ) | ||||||||
Fair value gains/(losses) on available-for-sale financial assets | (33,208 | ) | 6,562 | (32,999 | ) | 6,547 | ||||||||||
Less: Amount transferred to net profit from other comprehensive income | (4,432 | ) | (18,955 | ) | (4,366 | ) | (18,860 | ) | ||||||||
Portion of fair value changes on available-for- sale financial assets attributable to participating policyholders | 9,768 | 1,780 | 9,768 | 1,780 | ||||||||||||
Other comprehensive income that may be transferred to profit or loss under the equity method | (378 | ) | (673 | ) | (378 | ) | (673 | ) | ||||||||
Exchanges differences on translating foreign operations | (103 | ) | 8 | (101 | ) | 7 | ||||||||||
Other comprehensive income that will not be reclassified to profit or loss | (213 | ) | (48 | ) | (213 | ) | (48 | ) | ||||||||
Other comprehensive income that may not be transferred to profit or loss under the equity method | (213 | ) | (48 | ) | (213 | ) | (48 | ) | ||||||||
Other comprehensive income attributable to non-controlling interests (net of tax) | (139 | ) | (78 | ) | ||||||||||||
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8 Total comprehensive income | (13,179 | ) | 17,577 | (11,930 | ) | 17,708 | ||||||||||
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– Attributable to equity holders of the Company | (13,388 | ) | 17,259 | |||||||||||||
– Attributable to non-controlling interests | 209 | 318 |
Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
11
Cash flow statement for the first quarter of 2022 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
ITEMS | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||||
(Restated) | ||||||||||||||||
1 Cash flows from operating activities | ||||||||||||||||
Premiums received | 235,040 | 240,417 | 235,040 | 240,417 | ||||||||||||
Net increase in policyholder deposits | 12,960 | 8,182 | 12,960 | 8,182 | ||||||||||||
Net cash received from financial assets at fair value through profit or loss | 11,887 | 12,096 | 16,862 | 18,426 | ||||||||||||
Net cash received from financial liabilities at fair value through profit or loss | — | 1,893 | — | — | ||||||||||||
Cash received from other operating activities | 3,254 | 2,828 | 1,498 | 1,348 | ||||||||||||
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Sub-total of cash inflows from operating activities | 263,141 | 265,416 | 266,360 | 268,373 | ||||||||||||
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Cash paid for claims | (49,126 | ) | (53,385 | ) | (49,126 | ) | (53,385 | ) | ||||||||
Net cash paid for reinsurance business | (47 | ) | (193 | ) | (47 | ) | (193 | ) | ||||||||
Cash paid for brokerage and commission fees | (21,684 | ) | (28,155 | ) | (21,681 | ) | (28,140 | ) | ||||||||
Cash paid for policyholder dividends | (3,608 | ) | (3,838 | ) | (3,608 | ) | (3,838 | ) | ||||||||
Cash paid to and for employees | (6,497 | ) | (6,255 | ) | (5,894 | ) | (6,012 | ) | ||||||||
Cash paid for taxes and surcharges | (2,143 | ) | (4,256 | ) | (1,556 | ) | (3,684 | ) | ||||||||
Net cash paid for financial liabilities at fair value through profit or loss | (589 | ) | — | — | — | |||||||||||
Cash paid for other operating activities | (5,110 | ) | (8,105 | ) | (4,876 | ) | (8,017 | ) | ||||||||
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Sub-total of cash outflows from operating activities | (88,804 | ) | (104,187 | ) | (86,788 | ) | (103,269 | ) | ||||||||
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Net cash flows from operating activities | 174,337 | 161,229 | 179,572 | 165,104 | ||||||||||||
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Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
12
Cash flow statement for the first quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
ITEMS | Group | Group (Restated) | Company | Company | ||||||||||||
2 Cash flows from investing activities | ||||||||||||||||
Cash received from sales and redemption of investments | 347,132 | 170,016 | 315,762 | 168,044 | ||||||||||||
Cash received from investment income | 45,531 | 42,280 | 44,897 | 39,182 | ||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 27 | 19 | 27 | 19 | ||||||||||||
Net cash received from securities purchased under agreements to resell | — | 608 | — | — | ||||||||||||
Net cash received from the disposal of subsidiaries and other business units | — | — | — | 30 | ||||||||||||
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Sub-total of cash inflows from investing activities | 392,690 | 212,923 | 360,686 | 207,275 | ||||||||||||
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Cash paid for investments | (342,774 | ) | (320,236 | ) | (328,677 | ) | (329,960 | ) | ||||||||
Net increase in policy loans | (5,666 | ) | (11,542 | ) | (5,666 | ) | (11,542 | ) | ||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (531 | ) | (1,065 | ) | (435 | ) | (980 | ) | ||||||||
Net cash paid from securities purchased under agreements to resell | (29,277 | ) | — | (18,488 | ) | (657 | ) | |||||||||
Net cash paid for the acquisition of subsidiaries and other business units | (127 | ) | — | (304 | ) | — | ||||||||||
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Sub-total of cash outflows from investing activities | (378,375 | ) | (332,843 | ) | (353,570 | ) | (343,139 | ) | ||||||||
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Net cash flows from investing activities | 14,315 | (119,920 | ) | 7,116 | (135,864 | ) | ||||||||||
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Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
13
Cash flow statement for the first quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
ITEMS | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||||
(Restated) | ||||||||||||||||
3 Cash flows from financing activities | ||||||||||||||||
Cash received from investment | — | 3,741 | — | — | ||||||||||||
Including: Cash received from the investment of non-controlling interests by subsidiaries | — | 3,741 | ||||||||||||||
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Sub-total of cash inflows from financing activities | — | 3,741 | — | — | ||||||||||||
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Cash repaid to lenders | (69 | ) | — | — | — | |||||||||||
Cash paid for dividends and interests and repaid for lenders | (3,097 | ) | (2,090 | ) | (2,375 | ) | (1,991 | ) | ||||||||
Net cash paid for securities sold under agreements to repurchase | (159,695 | ) | (13,775 | ) | (161,829 | ) | (13,890 | ) | ||||||||
Cash paid for other financing activities | (3,864 | ) | (754 | ) | (231 | ) | (340 | ) | ||||||||
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Sub-total of cash outflows from financing activities | (166,725 | ) | (16,619 | ) | (164,435 | ) | (16,221 | ) | ||||||||
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Net cash flows from financing activities | (166,725 | ) | (12,878 | ) | (164,435 | ) | (16,221 | ) | ||||||||
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4 Effect of changes in foreign exchange rate on cash and cash equivalents | (28 | ) | (30 | ) | (16 | ) | (33 | ) | ||||||||
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5 Net increase in cash and cash equivalents | 21,899 | 28,401 | 22,237 | 12,986 | ||||||||||||
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Add: Opening balance of cash and cash equivalents | 60,440 | 56,655 | 53,593 | 50,692 | ||||||||||||
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6 Closing balance of cash and cash equivalents | 82,339 | 85,056 | 75,830 | 63,678 | ||||||||||||
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Yuan Changqing | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
14
This announcement is published in both Chinese and English. Should there be any inconsistency between the Chinese and English versions, 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: | Su Hengxuan, Li Mingguang, Huang Xiumei | |
Non-executive Directors: | Yuan Changqing, Wang Junhui | |
Independent Non-executive Directors: | Tang Xin, Leung Oi-Sie Elsie, Lam Chi Kuen, Zhai Haitao | |
Beijing, China | ||
27 April 2022 |
15