Commission File Number 001-31914
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 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.
IMPORTANT NOTICE
• | The Company’s Board of Directors, Board of Supervisors, its Directors, Supervisors and Senior Management warrant that the information in the 2022 third quarter report is true, accurate and complete and contains no false representations, misleading statements or material omissions, and accept legal responsibility. |
• | The financial data for the 2022 third 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. Bai Tao, Chairman of the Board 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 third quarter report are true, accurate and complete. |
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1. | MAJOR FINANCIAL DATA |
1.1 | Major Accounting Data and Financial Indicators |
Currency: RMB
Items | As at 30 2022 | As at 31 December 2021 | Increase/ 2021 | |||||||||||||||||||||||||||||||
Total assets (million) | 5,128,085 | 4,891,085 | 4.8% | |||||||||||||||||||||||||||||||
Equity attributable to equity holders of the Company (million) | 453,446 | 478,585 | -5.3% | |||||||||||||||||||||||||||||||
Items | For the July to September) | For the corresponding period of 2021 | Increase/ to the period of 2021 | For the 2022 | For the corresponding period of 2021 | Increase/ to the period of 2021 | ||||||||||||||||||||||||||||
After restatement | Before restatement | After restatement | After restatement | After restatement | Before restatement | After restatement | ||||||||||||||||||||||||||||
Operating income (million) | 172,714 | 175,136 | 175,110 | -1.4% | 701,012 | 727,785 | 727,711 | -3.7% | ||||||||||||||||||||||||||
Net profit attributable to equity holders of the Company (million) | 5,701 | 7,518 | 7,527 | -24.2% | 31,117 | 48,486 | 48,502 | -35.8% | ||||||||||||||||||||||||||
Net profit attributable to equity holders of the Company after deducting non-recurring items (million) | 5,735 | 7,578 | 7,587 | -24.3% | 31,182 | 48,651 | 48,667 | -35.9% | ||||||||||||||||||||||||||
Net cash flows from operating activities (million) | N/A | N/A | N/A | N/A | 288,755 | 246,373 | 246,388 | 17.2% | ||||||||||||||||||||||||||
Earnings per share (basic and diluted) (RMB per share) | 0.20 | 0.27 | 0.27 | -24.2% | 1.10 | 1.72 | 1.72 | -35.8% | ||||||||||||||||||||||||||
Weighted average ROE (%) | 1.22 | 1.60 | 1.60 | | A decrease of 0.38 percentage point |
| 6.63 | 10.46 | 10.47 | | A decrease of 3.83 percentage points |
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Notes:
1. | The financial data for the first three quarters of 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 Period September) | For the 2022 | ||||||||
Gains/(losses) on disposal of non-current assets | 40 | 74 | ||||||||
Government subsidies recognized in current gains/(losses) | 17 | 98 | ||||||||
Net non-operating income and expenses other than those mentioned above | (100 | ) | (236 | ) | ||||||
Effect of income tax | 11 | 16 | ||||||||
Attributable to non-controlling interests | (2 | ) | (17 | ) | ||||||
Total | (34 | ) | (65 | ) |
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. |
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1.3 | Particulars of and Reasons for Changes in Major Accounting Data and Financial Indicators |
Currency: RMB
Items | For the nine months ended 30 September 2022 | For the 2021 | Increase/ (decrease) | Main reasons | ||||||||
Net profit attributable to equity holders of the Company (million) | 31,117 | 48,486 | -35.8 | % | A decrease in investment income due to the increasing volatilities in equity market | |||||||
Net profit attributable to equity holders of the Company after deducting non-recurring items (million) | 31,182 | 48,651 | -35.9 | % | ||||||||
Earnings per share (basic and diluted) (RMB per share) | 1.10 | 1.72 | -35.8 | % | A decrease in net profit attributable to equity holders of the Company in the first three quarters on a year-on-year basis | |||||||
Weighted average ROE (%) | 6.63 | 10.46 | | A decrease of 3.83 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: 115,291 |
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Number of H Share shareholders: 25,069 |
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Particulars of top ten shareholders of the Company |
| Unit: Share | ||||||||||||||||||
Name of shareholders | Nature of shareholder | Percentage of | Total number of shares held as at the Period | Number of to selling | Number frozen | |||||||||||||||
China Life Insurance (Group) Company | State-owned legal person | 68.37 | % | 19,323,530,000 | – | – | ||||||||||||||
HKSCC Nominees Limited | Overseas legal person | 25.92 | % | 7,326,220,781 | – | – | ||||||||||||||
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 | 0.13 | % | 35,649,120 | – | – | ||||||||||||||
Guosen Securities Co., Ltd. – Founder Fubon CSI Insurance Theme Index Securities Investment Fund | Other | 0.09 | % | 25,177,829 | – | – | ||||||||||||||
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 Index Securities Investment Fund | Other | 0.05 | % | 14,757,904 | – | – | ||||||||||||||
Dajia Life Insurance Co., Ltd – Universal Products | Other | 0.05 | % | 13,764,442 | – | – | ||||||||||||||
Li Zhuo | Domestic natural person | 0.04 | % | 10,454,133 | – | – |
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 |
The first three quarters of 2022 witnessed complicated and ever-changing external environment. The domestic economy maintained the momentum of recovery and growth, and the life insurance industry was still at a stage of profound adjustments. The Company steadfastly pursued its development with Chinese characteristics and put into practice the core development philosophy of “due role of insurance in protection” and “people-centered insurance”. The Company effectively coordinated pandemic prevention and control as well as business development, took initiatives to serve and stabilize the overall economy, and steadily pushed forward all tasks according to the requirements for high-quality development, as a result of which its market leading position remained solidified. Firstly, the Company achieved stable business growth and its business scale and value continued to lead the industry. In the first three quarters of 2022, the Company achieved revenues from insurance businesses1 of RMB554,105 million, an increase of 0.1% year on year. Premiums from new policies were RMB171,338 million, an increase of 6.3% year on year. First-year regular premiums amounted to RMB91,370 million, which remained stable as compared to the corresponding period last year. In particular, first-year regular premiums with a payment duration of ten years or longer were RMB38,694 million, an increase of 4.9% year on year. Short-term insurance premiums amounted to RMB67,066 million. Renewal premiums were RMB382,767 million. The value of new business for the first three quarters of 2022 decreased by 15.4% year on year. The surrender rate2 was 0.74%, a decrease of 0.19 percentage point year on year. Secondly, the quality of its sales force was enhanced with stabilized headcount. The Company continued to drive business development through productive agents, upheld the sales force strategy of “stabilizing headcount while seeking for higher productivity”, firmly promoted transformation and upgrade of sales force and the size of its sales force remained stabilized. It continuously enhanced the quality of its sales force, the foundation of which was strengthened as a whole. As at the end of the Reporting Period, the Company’s total sales force was 783,000, including 720,000 agents in the individual agent business sector. Thirdly, it coped with the complicated investment environment by taking various measures. As at 30 September 2022, the Company’s investment assets reached RMB4,923,484 million, an increase of 4.4% from the end of 2021. In the third quarter of 2022, the coupon rate of domestic bonds remained volatile at historic lows, which created a persistent pressure on the allocation of fixed-income assets. Continuous adjustments were seen in the stock market and the investment income from open market equity investment was still under pressure. The Company balanced short-term tactic adjustments and long-term investment deployments, and flexibly adjusted allocation and the type of fixed-income investment products in response to the interest rate and the market supply. For equity investment, it maintained reasonable positions and realized gains by seizing appropriate opportunities. In the first three quarters of 2022, the Company achieved the gross investment income3 of RMB142,565 million, and the gross investment yield4 was 4.03%. The net investment income5 was RMB145,686 million, an increase of 4.7% year on year, and the net investment yield6 was 4.12%. Fourthly, the solvency of the Company continued to stay at a higher level. The life insurance industry started to implement the “Solvency Regulatory Rules II for Insurance Companies” (the “C-ROSS (Phase II) Regulation”) from the solvency quarterly report for the first quarter 2022. Under the C-ROSS (Phase II) Regulation, as at the end of the Reporting Period, the core solvency ratio and the comprehensive solvency ratio of the Company were 161.93% and 230.26%, respectively. The Company has sufficient core capital and overall capital and its solvency continued to stay relatively high.
1 | Revenues from insurance businesses is consistent with Premium Income in the attached consolidated income statement. |
2 | 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) |
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In the first three quarters of 2022, net profit attributable to equity holders of the Company was RMB31,117 million, a decrease of 35.8% year on year.
For the next stage, the Company will uphold the guideline of making progress while maintaining stability, adhere to the original function of insurance, consistently deepen supply-side reforms, give full play to the protection role of insurance, and strive to achieve steady business development. The Company will deepen reform and transformation with firm determination, strengthen the protection of consumers’ rights and interests in all aspects, and continue to pursue the high-quality development of the Company by enhancing its capability of value creation, digital operations, innovation of insurance products and services as well as risk prevention and control.
3 | Gross investment income = Net investment income + Net realized gains on investment assets + Fair value gains/losses Impairment losses of investment assets |
4 | 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)]/273×365 |
5 | Net investment income mainly includes interest income, dividend and bonus from different types of financial assets, net income from investment properties, and share of profit of associates and joint ventures, etc. |
6 | 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)]/273×365 |
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4. | QUARTERLY FINANCIAL STATEMENTS |
Balance sheet as at 30 September 2022 (unaudited)
RMB million (Unless otherwise stated)
As at 30 September | As at 31 December | As at 30 September | As at 31 December | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
ASSETS | Group | Group | Company | Company | ||||||||||||
Assets | ||||||||||||||||
Cash fund | 121,213 | 60,875 | 94,338 | 53,591 | ||||||||||||
Financial assets at fair value through profit or loss | 214,014 | 206,764 | 99,457 | 120,184 | ||||||||||||
Securities purchased under agreements to resell | 26,179 | 12,915 | 14,970 | 3,463 | ||||||||||||
Interest receivables | 57,614 | 50,801 | 55,202 | 49,583 | ||||||||||||
Premiums receivables | 40,354 | 20,361 | 40,354 | 20,361 | ||||||||||||
Receivables from reinsurers | 1,496 | 485 | 1,496 | 485 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 1,110 | 823 | 1,110 | 823 | ||||||||||||
Claim reserves receivable from reinsurers | 781 | 412 | 781 | 412 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 786 | 636 | 786 | 636 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 4,427 | 4,274 | 4,427 | 4,274 | ||||||||||||
Other receivables | 17,874 | 25,667 | 14,346 | 21,347 | ||||||||||||
Loans | 589,602 | 666,087 | 572,271 | 646,998 | ||||||||||||
Term deposits | 499,754 | 529,488 | 457,348 | 491,332 | ||||||||||||
Available-for-sale financial assets | 1,613,800 | 1,429,287 | 1,546,009 | 1,370,035 | ||||||||||||
Held-to-maturity investments | 1,571,231 | 1,533,753 | 1,568,918 | 1,531,640 | ||||||||||||
Long-term equity investments | 268,320 | 257,953 | 449,328 | 385,723 | ||||||||||||
Statutory deposits | 6,333 | 6,333 | 5,653 | 5,653 | ||||||||||||
Investment properties | 13,038 | 13,374 | 6,046 | 6,191 | ||||||||||||
Constructions in progress | 5,938 | 6,789 | 5,334 | 6,350 | ||||||||||||
Fixed assets | 46,579 | 46,847 | 43,831 | 44,014 | ||||||||||||
Right-of-use assets | 2,010 | 2,518 | 1,705 | 2,239 | ||||||||||||
Intangible assets | 8,396 | 8,409 | 7,428 | 7,599 | ||||||||||||
Deferred tax assets | 11,362 | 121 | 11,180 | – | ||||||||||||
Other assets | 5,867 | 6,104 | 5,460 | 5,760 | ||||||||||||
Separate account assets | 7 | 9 | 7 | 9 | ||||||||||||
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Total Assets | 5,128,085 | 4,891,085 | 5,007,785 | 4,778,702 | ||||||||||||
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Bai Tao | 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 30 September 2022 (unaudited) (continued)
RMB million (Unless otherwise stated)
As at 30 September | As at 31 December | As at 30 September | As at 31 December | |||||||||||||
LIABILITIES AND EQUITY | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||||
Liabilities | ||||||||||||||||
Short-term borrowings | 1,429 | 1,476 | – | – | ||||||||||||
Financial liabilities at fair value through profit or loss | 3,609 | 3,416 | – | – | ||||||||||||
Securities sold under agreements to repurchase | 87,816 | 239,446 | 75,162 | 232,496 | ||||||||||||
Premiums received in advance | 3,758 | 48,699 | 3,758 | 48,699 | ||||||||||||
Brokerage and commission payable | 4,746 | 5,352 | 4,746 | 5,351 | ||||||||||||
Reinsurance payable | 1,564 | 808 | 1,564 | 808 | ||||||||||||
Salary and welfare payable | 9,382 | 13,165 | 8,426 | 11,791 | ||||||||||||
Taxes payable | 1,075 | 967 | 683 | 435 | ||||||||||||
Claims payable | 60,128 | 56,818 | 60,128 | 56,818 | ||||||||||||
Policyholder dividends payable | 103,795 | 124,949 | 103,795 | 124,949 | ||||||||||||
Other payable | 23,137 | 18,953 | 21,029 | 16,540 | ||||||||||||
Policyholder deposits | 362,701 | 313,585 | 362,701 | 313,585 | ||||||||||||
Unearned premium reserves | 24,878 | 14,062 | 24,878 | 14,062 | ||||||||||||
Claim reserves | 28,351 | 26,234 | 28,351 | 26,234 | ||||||||||||
Reserves for life insurance | 3,568,050 | 3,182,083 | 3,568,050 | 3,182,083 | ||||||||||||
Reserves for long-term health insurance | 224,576 | 197,520 | 224,576 | 197,520 | ||||||||||||
Long-term borrowings | 18,183 | 17,210 | – | – | ||||||||||||
Bonds payable | 34,996 | 34,994 | 34,996 | 34,994 | ||||||||||||
Lease liabilities | 1,790 | 2,182 | 1,472 | 1,889 | ||||||||||||
Deferred tax liabilities | 545 | 7,481 | – | 6,481 | ||||||||||||
Other liabilities | 101,455 | 95,018 | 28,777 | 26,901 | ||||||||||||
Separate account liabilities | 7 | 9 | 7 | 9 | ||||||||||||
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Total liabilities | 4,665,971 | 4,404,427 | 4,553,099 | 4,301,645 | ||||||||||||
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Equity Share capital | 28,265 | 28,265 | 28,265 | 28,265 | ||||||||||||
Capital reserve | 54,069 | 54,304 | 52,897 | 53,056 | ||||||||||||
Accumulated other comprehensive income | 12,583 | 50,299 | 10,989 | 49,489 | ||||||||||||
Surplus reserve | 101,228 | 96,132 | 101,180 | 96,084 | ||||||||||||
General reserve | 48,383 | 48,320 | 47,409 | 47,409 | ||||||||||||
Retained earnings | 208,918 | 201,265 | 213,946 | 202,754 | ||||||||||||
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Attributable to equity holders of the Company | 453,446 | 478,585 | ||||||||||||||
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Non-controlling interests | 8,668 | 8,073 | ||||||||||||||
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Total equity | 462,114 | 486,658 | 454,686 | 477,057 | ||||||||||||
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Total liabilities and equity | 5,128,085 | 4,891,085 | 5,007,785 | 4,778,702 | ||||||||||||
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Bai Tao | 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 third quarter of 2022 (unaudited)
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||||||||
ended 30 September | ended 30 September | |||||||||||||||||||
ITEMS | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||||||||
(Restated) | ||||||||||||||||||||
1 | Operating income | 701,012 | 727,785 | 699,558 | 720,292 | |||||||||||||||
Premiums earned | 536,679 | 536,368 | 536,679 | 536,368 | ||||||||||||||||
Premium income | 554,105 | 553,437 | 554,105 | 553,437 | ||||||||||||||||
Including: Reinsurance premium income | – | – | – | – | ||||||||||||||||
Less: Premiums ceded to reinsurers | (6,897 | ) | (5,988 | ) | (6,897 | ) | (5,988 | ) | ||||||||||||
Change in unearned premium reserves | (10,529 | ) | (11,081 | ) | (10,529 | ) | (11,081 | ) | ||||||||||||
Investment income | 165,354 | 188,868 | 164,412 | 186,174 | ||||||||||||||||
Including: Share of profit of associates and joint ventures | 6,352 | 8,537 | 7,840 | 9,179 | ||||||||||||||||
Other gains | 148 | 148 | 88 | 83 | ||||||||||||||||
Fair value gains/(losses) | (8,104 | ) | (4,625 | ) | (5,702 | ) | (5,327 | ) | ||||||||||||
Foreign exchange gains/(losses) | 214 | 361 | 1,020 | (25 | ) | |||||||||||||||
Other operating income | 6,651 | 6,634 | 2,991 | 2,988 | ||||||||||||||||
Gains/(losses) on disposal of assets | 70 | 31 | 70 | 31 | ||||||||||||||||
2 | Operating expenses | (672,832 | ) | (676,718 | ) | (670,087 | ) | (673,041 | ) | |||||||||||
Surrenders | (28,693 | ) | (31,813 | ) | (28,693 | ) | (31,813 | ) | ||||||||||||
Claims expenses | (107,736 | ) | (107,116 | ) | (107,736 | ) | (107,116 | ) | ||||||||||||
Less: Claims recoverable from reinsurers | 5,045 | 4,200 | 5,045 | 4,200 | ||||||||||||||||
Increase in insurance contracts reserve | (415,129 | ) | (398,933 | ) | (415,129 | ) | (398,933 | ) | ||||||||||||
Less: Insurance reserves recoverable from reinsurers | 672 | 849 | 672 | 849 | ||||||||||||||||
Policyholder dividends resulting from participation in profits | (17,285 | ) | (22,277 | ) | (17,285 | ) | (22,277 | ) | ||||||||||||
Tax and surcharges | (787 | ) | (945 | ) | (676 | ) | (826 | ) | ||||||||||||
Underwriting and policy acquisition costs | (45,713 | ) | (54,422 | ) | (45,712 | ) | (54,388 | ) | ||||||||||||
Administrative expenses | (28,615 | ) | (28,424 | ) | (26,492 | ) | (26,503 | ) | ||||||||||||
Less: Expenses recoverable from reinsurers | 1,050 | 741 | 1,050 | 741 | ||||||||||||||||
Other operating expenses | (20,866 | ) | (19,964 | ) | (19,828 | ) | (18,372 | ) | ||||||||||||
Impairment losses | (14,775 | ) | (18,614 | ) | (15,303 | ) | (18,603 | ) | ||||||||||||
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Bai Tao | 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 third quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||
ended 30 September | ended 30 September | |||||||||||||
ITEMS | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||
(Restated) | ||||||||||||||
3 | Operating profit | 28,180 | 51,067 | 29,471 | 47,251 | |||||||||
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Add: Non-operating income | 59 | 66 | 55 | 58 | ||||||||||
Less: Non-operating expenses | (286) | (368) | (285 | ) | (368 | ) | ||||||||
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4 | Profit before income tax | 27,953 | 50,765 | 29,241 | 46,941 | |||||||||
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Less: Income tax expenses | 4,315 | (1,190) | 5,369 | (243 | ) | |||||||||
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5 | Net profit | 32,268 | 49,575 | 34,610 | 46,698 | |||||||||
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According to operating continuity: | ||||||||||||||
– Net profit from continuing operations | 32,268 | 49,575 | 34,610 | 46,698 | ||||||||||
According to ownership of the company: | ||||||||||||||
– Equity holders of the Company | 31,117 | 48,486 | ||||||||||||
– Non-controlling interests | 1,151 | 1,089 | ||||||||||||
6 | Earnings per share | |||||||||||||
Basic earnings per share | RMB1.10 | RMB1.72 | ||||||||||||
Diluted earnings per share | RMB1.10 | RMB1.72 |
Bai Tao | 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 third quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||
ended 30 September | ended 30 September | |||||||||||||
ITEMS | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||
(Restated) | ||||||||||||||
7 | Other Comprehensive income | (37,752) | (9,976) | (38,450 | ) | (10,282 | ) | |||||||
Other comprehensive income attributable to equity holders of the Company (net of tax) | (37,649) | (9,928) | ||||||||||||
Other comprehensive income that may be reclassified to profit or loss | (37,473) | (9,650) | (38,188 | ) | (10,004 | ) | ||||||||
Fair value gains/(losses) on available-for-sale financial assets | (45,538) | 5,437 | (46,455 | ) | 5,399 | |||||||||
Less: Amount transferred to net profit from other comprehensive income | (5,551) | (16,621) | (5,409 | ) | (16,495 | ) | ||||||||
Portion of fair value changes on available-for- sale financial assets attributable to participating policyholders | 14,691 | 1,109 | 14,691 | 1,109 | ||||||||||
Other comprehensive income that may be transferred to profit or loss under the equity method | (1,723) | 565 | (1,035 | ) | (55 | ) | ||||||||
Exchanges differences on translating foreign operations | 648 | (140) | 20 | 38 | ||||||||||
Other comprehensive income that will not be reclassified to profit or loss | (176) | (278) | (262 | ) | (278 | ) | ||||||||
Other comprehensive income that may not be transferred to profit or loss under the equity method | (176) | (278) | (262 | ) | (278 | ) | ||||||||
Other comprehensive income attributable to non-controlling interests (net of tax) | (103) | (48) | ||||||||||||
|
|
|
|
|
| |||||||||
8 | Total Comprehensive income | (5,484) | 39,599 | (3,840 | ) | 36,416 | ||||||||
|
|
|
|
|
| |||||||||
– Attributable to equity holders of the Company | (6,532) | 38,558 | ||||||||||||
– Attributable to non-controlling interests | 1,048 | 1,041 |
Bai Tao | 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 third quarter of 2022 (unaudited)
RMB million (Unless otherwise stated)
For the nine months | For the nine months | |||||||||||||
ended 30 September | ended 30 September | |||||||||||||
ITEMS | 2022 Group | 2021 Group | 2022 Company | 2021 Company | ||||||||||
(Restated) | ||||||||||||||
1 | Cash flows from operating activities | |||||||||||||
Premiums received | 494,458 | 484,552 | 494,458 | 484,552 | ||||||||||
Net increase in policyholder deposits | 38,442 | 11,941 | 38,442 | 11,941 | ||||||||||
Net cash received from financial assets at fair value through profit or loss | – | 297 | 15,414 | 13,974 | ||||||||||
Net cash received from financial liabilities at fair value through profit or loss | 1,865 | – | – | – | ||||||||||
Cash received from other operating activities | 12,902 | 9,667 | 7,492 | 4,684 | ||||||||||
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from operating activities | 547,667 | 506,457 | 555,806 | 515,151 | ||||||||||
|
|
|
|
|
| |||||||||
Cash paid for claims | (133,065) | (136,268) | (133,065 | ) | (136,268 | ) | ||||||||
Net cash paid for reinsurance business | (1,057) | (1) | (1,057 | ) | (1 | ) | ||||||||
Cash paid for brokerage and commission fees | (46,369) | (56,136) | (46,366 | ) | (56,081 | ) | ||||||||
Cash paid for policyholder dividends | (17,803) | (19,305) | (17,803 | ) | (19,305 | ) | ||||||||
Cash paid to and for employees | (20,183) | (18,333) | (18,510 | ) | (17,000 | ) | ||||||||
Cash paid for taxes and surcharges | (5,481) | (13,665) | (3,477 | ) | (11,794 | ) | ||||||||
Net cash paid for financial assets at fair value through profit or loss | (15,456) | – | – | – | ||||||||||
Net cash paid for financial liabilities at fair value through profit or loss | – | (425) | – | – | ||||||||||
Cash paid for other operating activities | (19,498) | (15,951) | (18,986 | ) | (15,589 | ) | ||||||||
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from operating activities | (258,912) | (260,084) | (239,264 | ) | (256,038 | ) | ||||||||
|
|
|
|
|
| |||||||||
Net cash flows from operating activities | 288,755 | 246,373 | 316,542 | 259,113 | ||||||||||
|
|
|
|
|
|
Bai Tao | 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 third quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated)
| ||||||||||||||||
For the nine months
ended 30 September
| For the nine months
ended 30 September
| |||||||||||||||
ITEMS | 2022
Group | 2021
Group | 2022
Company | 2021
Company | ||||||||||||
(Restated) | ||||||||||||||||
2 Cash flows from investing activities | ||||||||||||||||
Cash received from sales and redemption of investments | 930,542 | 490,024 | 823,882 | 479,031 | ||||||||||||
Cash received from investment income | 134,495 | 121,431 | 131,863 | 119,247 | ||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 148 | 247 | 147 | 65 | ||||||||||||
Net cash received from securities purchased under agreements to resell | – | – | – | 3,349 | ||||||||||||
Net cash received from the disposal of subsidiaries and other business units | 255 | 481 | 2,263 | 499 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from investing activities | 1,065,440 | 612,183 | 958,155 | 602,191 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for investments | (1,080,431 | ) | (862,858 | ) | (1,015,918 | ) | (867,859 | ) | ||||||||
Net increase in policy loans | (12,922 | ) | (26,828 | ) | (12,922 | ) | (26,828 | ) | ||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (1,683 | ) | (3,107 | ) | (1,358 | ) | (2,837 | ) | ||||||||
Net cash paid from securities purchased under agreements to resell | (12,867 | ) | (7,684 | ) | (11,507 | ) | – | |||||||||
Net cash paid for the acquisition of subsidiaries and other business units | (12,117 | ) | (13,100 | ) | (12,513 | ) | (13,329 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from investing activities | (1,120,020 | ) | (913,577 | ) | (1,054,218 | ) | (910,853 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from investing activities | (54,580 | ) | (301,394 | ) | (96,063 | ) | (308,662 | ) | ||||||||
|
|
|
|
|
|
|
|
Bai Tao | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
- 14 -
Cash flow statement for the third quarter of 2022 (unaudited) (continued)
RMB million (Unless otherwise stated)
| ||||||||||||||||||
For the nine months
ended 30 September
| For the nine months
ended 30 September
| |||||||||||||||||
ITEMS | 2022
Group | 2021
Group | 2022
Company | 2021
Company | ||||||||||||||
(Restated) | ||||||||||||||||||
3 | Cash flows from financing activities | |||||||||||||||||
Cash received from investment | 3,241 | 17,310 | – | – | ||||||||||||||
Including: Cash received from the investment of non- controlling interests by subsidiaries | 3,241 | 17,310 | ||||||||||||||||
Net cash received for securities sold under agreements to repurchase | – | 65,842 | – | 66,324 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Sub-total of cash inflows from financing activities | 3,241 | 83,152 | – | 66,324 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Cash repaid to lenders | (92 | ) | – | – | – | |||||||||||||
Cash paid for dividends and interests and repaid for lenders | (24,409 | ) | (25,402 | ) | (21,825 | ) | (21,671 | ) | ||||||||||
Net cash paid for securities sold under agreements to repurchase | (151,849 | ) | – | (157,334 | ) | – | ||||||||||||
Cash paid for other financing activities | (1,228 | ) | (1,855 | ) | (760 | ) | (995 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Sub-total of cash outflows from financing activities | (177,578 | ) | (27,257 | ) | (179,919 | ) | (22,666 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net cash flows from financing activities | (174,337 | ) | 55,895 | (179,919 | ) | 43,658 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
4 | Effect of changes in foreign exchange rate on cash and cash equivalents | 228 | (30 | ) | 189 | (21 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
5 | Net increase in cash and cash equivalents | 60,066 | 844 | 40,749 | (5,912 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Add: Opening balance of cash and cash equivalents | 60,440 | 56,655 | 53,593 | 50,692 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
6 | Closing balance of cash and cash equivalents | 120,506 | 57,499 | 94,342 | 44,780 | |||||||||||||
|
|
|
|
|
|
|
|
Bai Tao | Huang Xiumei | Li Mingguang | Hu Jin | |||
Legal Representative | Vice President in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
- 15 -
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: | Bai Tao, Li Mingguang, Huang Xiumei | |
Non-executive Director: | Wang Junhui | |
Independent Non-executive Directors: | Lam Chi Kuen, Zhai Haitao, Huang Yiping, Chen Jie |
Beijing, China
27 October 2022
- 16 -