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)
2023 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 2023 first 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 2023 first quarter report of the Company have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited. |
• | Mr. Bai Tao, Chairman of the Board of the Company, Mr. Li Mingguang, Vice President and Chief Actuary, and Ms. Hu Jin, Person in Charge of Finance and Head of the Financial Department, confirm that the financial statements in the 2023 first quarter report are true, accurate and complete. |
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Commission File Number 001-31914
1. | MAJOR FINANCIAL DATA |
1.1 | Major Accounting Data and Financial Indicators |
Currency: RMB | ||||||||||||||||
Items | As at 31 March 2023 | As at 31 December 2022 | Increase/(decrease) compared to 31 December 2022 | |||||||||||||
Total assets (million) | 5,462,586 | 5,251,984 | 4.0 | % | ||||||||||||
Equity attributable to equity holders of the Company (million) | 460,964 | 436,169 | 5.7 | % | ||||||||||||
Increase/(decrease) corresponding period of 2022 | ||||||||||||||||
For the corresponding period of 20221 | ||||||||||||||||
Items | For the Reporting Period | After restatement | Before restatement | After restatement | ||||||||||||
Operating income (million) | 368,385 | 343,778 | 343,777 | 7.2 | % | |||||||||||
Net profit attributable to equity holders of the Company (million) | 17,885 | 15,152 | 15,178 | 18.0 | % | |||||||||||
Net profit attributable to equity holders of the Company after deducting non-recurring items (million) | 17,922 | 15,180 | 15,206 | 18.1 | % | |||||||||||
Net cash flows from operating activities (million) | 172,252 | 174,372 | 174,337 | -1.2 | % | |||||||||||
Earnings per share (basic and diluted)2 (RMB per share) | 0.63 | 0.54 | 0.54 | 18.0 | % | |||||||||||
Weighted average ROE (%) | 3.99 | 3.21 | 3.22 | | An increase of 0.78 percentage point | |
Notes:
1. | The financial data for the first quarter of 2022 in this report have been restated due to a business combination under common control in 2022. |
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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Commission File Number 001-31914
1.2 | Non-recurring Items and Amounts |
RMB million | ||||
Non-recurring items | For the Reporting Period | |||
Gains/(losses) on disposal of non-current assets | 10 | |||
Government subsidies recognized in current gains/(losses) | 36 | |||
Net non-operating income and expenses other than those mentioned above | (83 | ) | ||
Effect of income tax | 9 | |||
Attributable to non-controlling interests | (9 | ) | ||
Total | (37 | ) |
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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Commission File Number 001-31914
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: 98,119 | ||||||||||||||||||||
Number of H Share shareholders: 24,802 | ||||||||||||||||||||||
Particulars of top ten shareholders of the Company | Unit: Share | |||||||||||||||||||||
Name of shareholder | Nature of shareholder | Percentage of shareholding | Total number of shares held as at the end of | 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 | 25.92 | % | 7,326,178,033 | – | – | ||||||||||||||||
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 | 0.15 | % | 41,770,495 | – | – | ||||||||||||||||
Guosen Securities Co., Ltd. – Founder Fubon CSI Insurance Theme Index Security Investment Fund | Other | 0.07 | % | 18,647,011 | – | – | ||||||||||||||||
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund | Other | 0.05 | % | 13,108,803 | – | – | ||||||||||||||||
China International Television Corporation | State-owned legal person | 0.04 | % | 10,000,000 | – | – | ||||||||||||||||
National Social Security Fund Portfolio 114 | Other | 0.03 | % | 9,379,228 | – | – | ||||||||||||||||
China National Nuclear Corporation Capital Holdings Co., Ltd. | State-owned legal person | 0.03 | % | 8,950,800 | – | – |
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. | 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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Commission File Number 001-31914
3. | QUARTERLY BUSINESS OVERVIEW |
Since 2023, China’s economic growth has shown a steady recovery, and the economic recovery is currently at a crucial stage, but the foundation for which is not yet solid. During the Reporting Period, the Company pursued high-quality development, prioritized business value growth, and achieved a steady performance with sound momentum, maintaining a solidified market leading position in the industry. Firstly, the Company spared no efforts to promote the rapid growth of its new business, and the new business value realised positive growth. The Company upheld the guideline of business development as the first priority, achieving revenues from insurance businesses1 of RMB327,221 million, an increase of 3.9% year on year. All indicators in relation to new business recorded positive growth. Premiums from new policies amounted to RMB117,669 million, an increase of 16.6% year on year. The value of new business for the first quarter of 2023 increased by 7.7% year on year, which recovered positive growth from the negative. First-year regular premiums reached a historical high at RMB71,478 million, a year-on-year increase of 9.4%. In particular, first-year regular premiums with a payment duration of ten years or longer were RMB20,082 million, an increase of 5.1% year on year, and its proportion in the first-year regular premiums was 28.10%. Renewal premiums amounted to RMB209,552 million, a decrease of 2.1% year on year. Short-term insurance premiums amounted to RMB34,980 million, an increase of 0.7% year on year. The surrender rate2 was 0.40%, an increase of 0.12 percentage point year on year. Secondly, its sales force was gradually stabilized with enhanced quality, regaining vitality steadily. Focused on the implementation of the “Sales Channel Strengthening Program”, the Company continued to drive insurance business development through productive agents, reinforced agent recruitment and development, and consolidated the foundation for its development, so as to push forward the transformation of the sales team to be more specialized and professional. As at the end of the Reporting Period, the Company’s total sales force was 0.722 million, of which, the number of agents of the individual agent business sector was 0.662 million, generally stable as compared to the previous quarter, showing a prominent sign of stabilization in the scale of its sales team. In the meantime, the quality of the sales team continued to improve, with the monthly average first-year regular premiums per agent increasing by 28.8% year on year. Thirdly, the Company adhered to the asset-liability interaction, realising a year-on-year increase in investment income.
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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Commission File Number 001-31914
The Company accelerated its allocation to bonds by taking advantage of the opportunities brought about by interest rate hikes in phases to mitigate its pressure in asset allocation. It also closely followed up changes in equity market and realised spread income by seizing appropriate opportunities, with the aim to enhance its investment yield. In the first quarter of 2023, the Company achieved gross investment income3 of RMB52,932 million, an increase of 18.8% year on year. The annualized gross investment yield4 reached 4.21%, a year-on-year increase of 33 basis points. The net investment income5 was RMB45,576 million, and the annualized net investment yield6 was 3.62%.
As at the end of the Reporting Period, the Company’s total assets and investment assets were RMB5,462,586 million and RMB5,243,830 million, respectively. In the first quarter of 2023, due to the impact of the change in investment income and the update of discount rate assumption of reserves of the Company’s traditional insurance contracts, net profit attributable to equity holders of the Company was RMB17,885 million, an increase of 18.0% year on year. As at the end of the Reporting Period, the Company’s capital was adequate and the core and comprehensive solvency ratios of the Company were 147.53% and 210.19%, respectively, the increase of 3.94 percentage points and 3.41 percentage points from the end of the fourth quarter of 2022, respectively, which continued to remain at relatively high levels.
The Company will stick to the guideline of making progress while maintaining stability, firmly implement the business strategy of “achieving stable growth, prioritizing business value, optimizing business structure, strengthening sales force, promoting reforms and guarding against risks”, vigorously carry out reforms and innovation in great depth, further optimize its business operations and services, and consistently strengthen the protection of consumers’ rights and interests. It will accelerate the implementation of the “Eight Reform Programs”, and push forward the sales system reforms in greater depth. The Company will also speed up the innovation in the mechanism of products and services, and the implementation of the Healthcare and Aged-care Ecosystem Program, strengthen customer access and digital construction, and effectively enhance the risk prevention and control, with a view to creating a new landscape for its high-quality development.
3 | Gross investment income = Net investment income + Net realised 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)]/90×365 |
5 | Net investment income mainly includes interest income, dividend and bonus from all types of financial assets, net income from investment properties, and income from investments in 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)]/90 ×365 |
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Commission File Number 001-31914
4. | QUARTERLY FINANCIAL STATEMENTS |
Balance sheet as at 31 March 2023 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||||||
ASSETS | As at 31 March 2023 Group | As at Group | As at 31 March 2023 Company | As at 31 December 2022 Company | ||||||||||||
Assets | ||||||||||||||||
Cash fund | 174,288 | 128,953 | 158,895 | 119,033 | ||||||||||||
Financial assets at fair value through profit or loss | 232,680 | 223,782 | 98,544 | 93,649 | ||||||||||||
Securities purchased under agreements to resell | 41,108 | 38,533 | 38,514 | 35,816 | ||||||||||||
Interest receivables | 51,484 | 52,309 | 47,953 | 49,833 | ||||||||||||
Premiums receivables | 54,760 | 19,697 | 54,760 | 19,697 | ||||||||||||
Receivables from reinsurers | 1,254 | 1,433 | 1,254 | 1,433 | ||||||||||||
Unearned premium reserves receivable from reinsurers | 807 | 774 | 807 | 774 | ||||||||||||
Claim reserves receivable from reinsurers | 696 | 736 | 696 | 736 | ||||||||||||
Reserves for life insurance receivables from reinsurers | 697 | 603 | 697 | 603 | ||||||||||||
Reserves for long-term health insurance receivables from reinsurers | 4,159 | 4,294 | 4,159 | 4,294 | ||||||||||||
Other receivables | 14,355 | 13,409 | 17,583 | 16,964 | ||||||||||||
Loans | 590,400 | 596,490 | 571,514 | 578,963 | ||||||||||||
Term deposits | 466,225 | 485,567 | 419,092 | 442,690 | ||||||||||||
Available-for-sale financial assets | 1,839,449 | 1,738,108 | 1,741,834 | 1,644,704 | ||||||||||||
Held-to-maturity investments | 1,617,635 | 1,574,204 | 1,615,313 | 1,571,892 | ||||||||||||
Long-term equity investments | 264,070 | 261,179 | 476,223 | 466,875 | ||||||||||||
Statutory deposits | 6,333 | 6,333 | 5,653 | 5,653 | ||||||||||||
Investment properties | 13,091 | 13,193 | 6,215 | 6,266 | ||||||||||||
Constructions in progress | 5,032 | 5,025 | 4,227 | 4,293 | ||||||||||||
Fixed assets | 48,439 | 49,052 | 44,528 | 45,088 | ||||||||||||
Right-of-use assets | 1,663 | 1,810 | 1,460 | 1,595 | ||||||||||||
Intangible assets | 8,443 | 8,532 | 7,338 | 7,406 | ||||||||||||
Deferred tax assets | 19,629 | 22,307 | 19,455 | 22,120 | ||||||||||||
Other assets | 5,662 | 5,654 | 5,281 | 5,410 | ||||||||||||
Separate account assets | 227 | 7 | 7 | 7 | ||||||||||||
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Total Assets | 5,462,586 | 5,251,984 | 5,342,002 | 5,145,794 | ||||||||||||
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Bai Tao Legal Representative | Hu Jin Person in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Financial Department |
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Commission File Number 001-31914
Balance sheet as at 31 March 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
LIABILITIES AND EQUITY | As at 31 March 2023 Group | As at Group | As at 31 March 2023 Company | As at 31 December 2022 Company | ||||||||||||
Liabilities | ||||||||||||||||
Short-term borrowings | 18 | — | — | — | ||||||||||||
Financial liabilities at fair value through profit or loss | 4,946 | 3,344 | — | — | ||||||||||||
Securities sold under agreements to repurchase | 79,612 | 148,954 | 67,084 | 140,587 | ||||||||||||
Premiums received in advance | 3,135 | 50,830 | 3,135 | 50,830 | ||||||||||||
Brokerage and commission payable | 7,456 | 4,664 | 7,453 | 4,660 | ||||||||||||
Reinsurance payable | 1,001 | 998 | 1,001 | 998 | ||||||||||||
Salary and welfare payable | 11,437 | 12,075 | 9,934 | 10,758 | ||||||||||||
Taxes payable | 1,534 | 942 | 1,130 | 509 | ||||||||||||
Claims payable | 65,020 | 60,819 | 65,020 | 60,819 | ||||||||||||
Policyholder dividends payable | 99,275 | 96,682 | 99,275 | 96,682 | ||||||||||||
Other payable | 19,370 | 18,974 | 18,225 | 16,964 | ||||||||||||
Policyholder deposits | 423,766 | 374,742 | 423,766 | 374,742 | ||||||||||||
Unearned premium reserves | 32,073 | 13,108 | 32,073 | 13,108 | ||||||||||||
Claim reserves | 25,220 | 26,153 | 25,220 | 26,153 | ||||||||||||
Reserves for life insurance | 3,816,803 | 3,607,236 | 3,816,803 | 3,607,236 | ||||||||||||
Reserves for long-term health insurance | 240,855 | 233,663 | 240,855 | 233,663 | ||||||||||||
Long-term borrowings | 12,646 | 12,774 | — | — | ||||||||||||
Bonds payable | 34,997 | 34,997 | 34,997 | 34,997 | ||||||||||||
Lease liabilities | 1,459 | 1,569 | 1,256 | 1,342 | ||||||||||||
Deferred tax liabilities | 732 | 272 | — | — | ||||||||||||
Other liabilities | 110,728 | 104,060 | 29,642 | 29,921 | ||||||||||||
Separate account liabilities | 227 | 7 | 7 | 7 | ||||||||||||
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Total liabilities | 4,992,310 | 4,806,863 | 4,876,876 | 4,703,976 | ||||||||||||
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Equity | ||||||||||||||||
Share capital | 28,265 | 28,265 | 28,265 | 28,265 | ||||||||||||
Capital reserve | 53,585 | 53,554 | 52,435 | 52,410 | ||||||||||||
Accumulated other comprehensive income | 1,952 | (4,927 | ) | 183 | (6,103 | ) | ||||||||||
Surplus reserve | 105,160 | 105,160 | 105,112 | 105,112 | ||||||||||||
General reserve | 52,452 | 52,429 | 51,341 | 51,341 | ||||||||||||
Retained earnings | 219,550 | 201,688 | 227,790 | 210,793 | ||||||||||||
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Attributable to equity holders of the Company | 460,964 | 436,169 | ||||||||||||||
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Non-controlling interests | 9,312 | 8,952 | ||||||||||||||
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Total equity | 470,276 | 445,121 | 465,126 | 441,818 | ||||||||||||
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Total liabilities and equity | 5,462,586 | 5,251,984 | 5,342,002 | 5,145,794 | ||||||||||||
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Bai Tao Legal Representative | Hu Jin Person in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Financial Department |
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Commission File Number 001-31914
Income statement for the first quarter of 2023 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
ITEMS | 2023 Group | 2022 Group(i) | 2023 Company | 2022 Company | ||||||||||||
1 Operating income | 368,385 | 343,778 | 365,535 | 343,469 | ||||||||||||
Premiums earned | 306,537 | 294,483 | 306,537 | 294,483 | ||||||||||||
Premium income | 327,221 | 315,011 | 327,221 | 315,011 | ||||||||||||
Including: Reinsurance premium income | — | — | — | — | ||||||||||||
Less: Premiums ceded to reinsurers | (1,752 | ) | (2,000 | ) | (1,752 | ) | (2,000 | ) | ||||||||
Change in unearned premium reserves | (18,932 | ) | (18,528 | ) | (18,932 | ) | (18,528 | ) | ||||||||
Investment income | 57,374 | 53,991 | 56,932 | 52,910 | ||||||||||||
Including: Share of profit of associates and joint ventures | 3,073 | 2,354 | 3,398 | 2,921 | ||||||||||||
Other gains | 96 | 62 | 61 | 55 | ||||||||||||
Fair value gains/(losses) | 2,212 | (6,997 | ) | 986 | (4,890 | ) | ||||||||||
Foreign exchange gains/(losses) | 3 | 171 | (77 | ) | (28 | ) | ||||||||||
Other operating income | 2,148 | 2,059 | 1,081 | 930 | ||||||||||||
Gains/(losses) on disposal of assets | 15 | 9 | 15 | 9 | ||||||||||||
2 Operating expenses | (349,156 | ) | (327,457 | ) | (347,830 | ) | (326,602 | ) | ||||||||
Surrenders | (16,520 | ) | (10,315 | ) | (16,520 | ) | (10,315 | ) | ||||||||
Claims expense | (63,596 | ) | (41,404 | ) | (63,596 | ) | (41,404 | ) | ||||||||
Less: Claims recoverable from reinsurers | 1,566 | 1,640 | 1,566 | 1,640 | ||||||||||||
Increase in insurance contracts reserve | (215,826 | ) | (229,548 | ) | (215,826 | ) | (229,548 | ) | ||||||||
Less: Insurance reserves recoverable from reinsurers | (81 | ) | 93 | (81 | ) | 93 | ||||||||||
Policyholder dividends resulting from participation in profits | (4,401 | ) | (5,882 | ) | (4,401 | ) | (5,882 | ) | ||||||||
Tax and surcharges | (227 | ) | (234 | ) | (185 | ) | (200 | ) | ||||||||
Underwriting and policy acquisition costs | (25,022 | ) | (22,845 | ) | (25,015 | ) | (22,844 | ) | ||||||||
Administrative expenses | (10,143 | ) | (9,515 | ) | (9,431 | ) | (8,870 | ) | ||||||||
Less: Expenses recoverable from reinsurers | 24 | 70 | 24 | 70 | ||||||||||||
Other operating expenses | (8,233 | ) | (7,006 | ) | (7,548 | ) | (6,831 | ) | ||||||||
Impairment losses | (6,697 | ) | (2,511 | ) | (6,817 | ) | (2,511 | ) | ||||||||
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Bai Tao Legal Representative | Hu Jin Person in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Financial Department |
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Commission File Number 001-31914
Income statement for the first quarter of 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
ITEMS | 2023 Group | 2022 Group(i) | 2023 Company | 2022 Company | ||||||||||||
3 Operating profit | 19,229 | 16,321 | 17,705 | 16,867 | ||||||||||||
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Add: Non-operating income | 12 | 14 | 10 | 13 | ||||||||||||
Less: Non-operating expenses | (99 | ) | (74 | ) | (99 | ) | (74 | ) | ||||||||
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4 Net profit before income tax | 19,142 | 16,261 | 17,616 | 16,806 | ||||||||||||
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Less: Income tax expenses | (934 | ) | (761 | ) | (619 | ) | (447 | ) | ||||||||
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5 Net profit | 18,208 | 15,500 | 16,997 | 16,359 | ||||||||||||
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According to operating continuity: | ||||||||||||||||
– Net profit from continuing operations | 18,208 | 15,500 | 16,997 | 16,359 | ||||||||||||
According to ownership of the company: | ||||||||||||||||
– Equity holders of the Company | 17,885 | 15,152 | ||||||||||||||
– Non-controlling interests | 323 | 348 | ||||||||||||||
6 Earnings per share | ||||||||||||||||
Basic earnings per share | RMB0.63 | RMB0.54 | ||||||||||||||
Diluted earnings per share | RMB0.63 | RMB0.54 |
Bai Tao Legal Representative | Hu Jin Person in charge of Accounting Affairs | Li Mingguang Chief Actuary | Hu Jin Head of Financial Department |
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Commission File Number 001-31914
Income statement for the first quarter of 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
ITEMS | Group | Group(i) | Company | Company | ||||||||||||
7 Other Comprehensive income | 6,916 | (28,705 | ) | 6,286 | (28,289 | ) | ||||||||||
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Other comprehensive income attributable to equity holders of the Company (net of tax) | 6,879 | (28,566 | ) | |||||||||||||
Other comprehensive income that may be reclassified to profit or loss | 6,870 | (28,353 | ) | 6,277 | (28,076 | ) | ||||||||||
Fair value gains/(losses) on available-for-sale financial assets | 12,295 | (33,208 | ) | 11,619 | (32,999 | ) | ||||||||||
Less: Amount transferred to net profit from other comprehensive income | (4,170 | ) | (4,432 | ) | (4,154 | ) | (4,366 | ) | ||||||||
Portion of fair value changes on available-for-sale financial assets attributable to participating policyholders | (1,427 | ) | 9,768 | (1,427 | ) | 9,768 | ||||||||||
Other comprehensive income that may be transferred to profit or loss under the equity method | 253 | (378 | ) | 253 | (378 | ) | ||||||||||
Exchanges differences on translating foreign operations | (81 | ) | (103 | ) | (14 | ) | (101 | ) | ||||||||
Other comprehensive income that will not be reclassified to profit or loss | 9 | (213 | ) | 9 | (213 | ) | ||||||||||
Other comprehensive income that may not be transferred to profit or loss under the equity method | 9 | (213 | ) | 9 | (213 | ) | ||||||||||
Other comprehensive income attributable to non-controlling interests (net of tax) | 37 | (139 | ) | |||||||||||||
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8 Total Comprehensive income | 25,124 | (13,205 | ) | 23,283 | (11,930 | ) | ||||||||||
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– Attributable to equity holders of the Company | 24,764 | (13,414 | ) | |||||||||||||
– Attributable to non-controlling interests | 360 | 209 |
Bai Tao | Hu Jin | Li Mingguang | Hu Jin | |||
Legal Representative | Person in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
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Commission File Number 001-31914
Cash flow statement for the first quarter of 2023 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
ITEMS | Group | Group(i) | Company | Company | ||||||||||||
1 Cash flows from operating activities | ||||||||||||||||
Premiums received | 244,002 | 235,040 | 244,002 | 235,040 | ||||||||||||
Net cash received from reinsurance business | 20 | — | 20 | — | ||||||||||||
Net increase in policyholder deposits | 44,925 | 12,960 | 44,925 | 12,960 | ||||||||||||
Net cash received from financial assets at fair value through profit or loss | — | 11,887 | — | 16,862 | ||||||||||||
Cash received from other operating activities | 2,826 | 3,311 | 1,160 | 1,498 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from operating activities | 291,773 | 263,198 | 290,107 | 266,360 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for claims | (75,877 | ) | (49,126 | ) | (75,877 | ) | (49,126 | ) | ||||||||
Net cash paid for reinsurance business | — | (47 | ) | — | (47 | ) | ||||||||||
Cash paid for brokerage and commission fees | (22,238 | ) | (21,684 | ) | (22,230 | ) | (21,681 | ) | ||||||||
Cash paid for policyholder dividends | (3,699 | ) | (3,608 | ) | (3,699 | ) | (3,608 | ) | ||||||||
Cash paid to and for employees | (6,166 | ) | (6,505 | ) | (5,855 | ) | (5,894 | ) | ||||||||
Cash paid for taxes and surcharges | (1,415 | ) | (2,143 | ) | (877 | ) | (1,556 | ) | ||||||||
Net cash paid for financial assets at fair value through profit or loss | (1,630 | ) | — | (3,669 | ) | — | ||||||||||
Net cash paid for financial liabilities at fair value through profit or loss | (1,167 | ) | (589 | ) | — | — | ||||||||||
Cash paid for other operating activities | (7,329 | ) | (5,124 | ) | (6,807 | ) | (4,876 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from operating activities | (119,521 | ) | (88,826 | ) | (119,014 | ) | (86,788 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from operating activities | 172,252 | 174,372 | 171,093 | 179,572 | ||||||||||||
|
|
|
|
|
|
|
|
Bai Tao | Hu Jin | Li Mingguang | Hu Jin | |||
Legal Representative | Person in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
- 12 -
Commission File Number 001-31914
Cash flow statement for the first quarter of 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
ITEMS | Group | Group(i) | Company | Company | ||||||||||||
2 Cash flows from investing activities | ||||||||||||||||
Cash received from sales and redemption of investments | 364,492 | 347,132 | 355,245 | 315,762 | ||||||||||||
Cash received from investment income | 44,897 | 45,531 | 44,712 | 44,897 | ||||||||||||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 20 | 27 | 20 | 27 | ||||||||||||
Net cash received from the disposal of subsidiaries and other business units | 30 | — | 34 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from investing activities | 409,439 | 392,690 | 400,011 | 360,686 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash paid for investments | (464,012 | ) | (342,774 | ) | (448,161 | ) | (328,677 | ) | ||||||||
Net increase in policy loans | (2,201 | ) | (5,666 | ) | (2,201 | ) | (5,666 | ) | ||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (722 | ) | (554 | ) | (445 | ) | (435 | ) | ||||||||
Net cash paid from securities purchased under agreements to resell | (2,238 | ) | (29,277 | ) | (2,698 | ) | (18,488 | ) | ||||||||
Net cash paid for the acquisition of subsidiaries and other business units | (1,951 | ) | (127 | ) | (1,963 | ) | (304 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from investing activities | (471,124 | ) | (378,398 | ) | (455,468 | ) | (353,570 | ) | ||||||||
|
|
|
|
|
|
| �� | |||||||||
Net cash flows from investing activities | (61,685 | ) | 14,292 | (55,457 | ) | 7,116 | ||||||||||
|
|
|
|
|
|
|
|
Bai Tao | Hu Jin | Li Mingguang | Hu Jin | |||
Legal Representative | Person in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
- 13 -
Commission File Number 001-31914
Cash flow statement for the first quarter of 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||||||
For the three months ended 31 March | For the three months ended 31 March | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
ITEMS | Group | Group(i) | Company | Company | ||||||||||||
3 Cash flows from financing activities | ||||||||||||||||
Cash received from investment | 7,019 | — | — | — | ||||||||||||
Including: Cash received from the investment of non-controlling interests by subsidiaries | 7,019 | — | ||||||||||||||
Cash received from borrowings | 18 | — | — | — | ||||||||||||
Cash received from other financing activities | 750 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash inflows from financing activities | 7,787 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash repaid to lenders | (139 | ) | (69 | ) | — | — | ||||||||||
Cash paid for dividends and interests and repaid for lenders | (3,318 | ) | (3,103 | ) | (2,063 | ) | (2,375 | ) | ||||||||
Net cash paid for securities sold under agreements to repurchase | (69,376 | ) | (159,695 | ) | (73,503 | ) | (161,829 | ) | ||||||||
Cash paid for other financing activities | (237 | ) | (3,864 | ) | (181 | ) | (231 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Sub-total of cash outflows from financing activities | (73,070 | ) | (166,731 | ) | (75,747 | ) | (164,435 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash flows from financing activities | (65,283 | ) | (166,731 | ) | (75,747 | ) | (164,435 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
4 Effect of changes in foreign exchange rate on cash and cash equivalents | (36 | ) | (28 | ) | (27 | ) | (16 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
5 Net increase in cash and cash equivalents | 45,248 | 21,905 | 39,862 | 22,237 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Add: Opening balance of cash and cash equivalents | 127,594 | 60,459 | 119,036 | 53,593 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
6 Closing balance of cash and cash equivalents | 172,842 | 82,364 | 158,898 | 75,830 | ||||||||||||
|
|
|
|
|
|
|
|
(i) | The financial data of the Group for the first quarter of 2022 have been restated due to a business combination under common control in 2022. |
Bai Tao | Hu Jin | Li Mingguang | Hu Jin | |||
Legal Representative | Person in charge of Accounting Affairs | Chief Actuary | Head of Financial Department |
- 14 -
Commission File Number 001-31914
Notes:
From 1 January 2023 to 31 December 2025, the Company adopts the transition plan for the new accounting standard for insurance contracts. The Company will continue to apply Accounting Standards for Business Enterprises (“ASBE”) No. 25 – Direct Insurance Contracts, ASBE No. 26 – Reinsurance Contracts (Caikuai [2006] No. 3), Regulations on Accounting Treatment Related to Insurance Contracts (Caikuai [2009] No. 15), ASBE No. 22 – Recognition and Measurement of Financial Instruments, ASBE No. 23 – Transfer of Financial Assets, ASBE No. 24 – Hedging (Caikuai [2006] No. 3) and ASBE No. 37 – Presentation of Financial Instruments (Caikuai [2014] No. 23) in mainland China.
The following additional disclosures are related financial information prepared in accordance with ASBE No. 25 – Insurance Contracts (Caikuai [2020] No. 20), ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2017] No. 7), ASBE No. 23 – Transfer of Financial Assets (Caikuai [2017] No. 8), ASBE No. 24 – Hedge Accounting (Caikuai [2017] No. 9) and ASBE No. 37 – Presentation of Financial Instruments (Caikuai [2017] No. 14) (the “new standards”) by the Company for the first quarter of 2023.
Balance sheet under new standards as at 31 March 2023 (unaudited)
RMB million (Unless otherwise stated) | ||||||||
ASSETS | As at 31 March 2023 Group | As at 31 December 2022(i) Group | ||||||
Assets | ||||||||
Cash fund | 174,455 | 128,956 | ||||||
Financial assets at fair value through profit or loss | N/A | 223,790 | ||||||
Securities purchased under agreements to resell | 41,127 | 38,533 | ||||||
Interest receivables | N/A | 49,438 | ||||||
Term deposits | 477,113 | 485,567 | ||||||
Held-for-trading financial assets | 1,438,449 | N/A | ||||||
Debt investments | 226,253 | N/A | ||||||
Other debt investments | 2,410,659 | N/A | ||||||
Other equity instrument investments | 124,588 | N/A | ||||||
Loans | N/A | 342,083 | ||||||
Available-for-sale financial assets | N/A | 1,738,108 | ||||||
Held-to-maturity investments | N/A | 1,574,204 | ||||||
Reinsurance contract assets | 23,833 | 24,096 | ||||||
Long-term equity investments | 265,336 | 262,488 | ||||||
Statutory deposits | 6,515 | 6,333 | ||||||
Investment properties | 13,091 | 13,193 | ||||||
Fixed assets | 48,439 | 49,052 | ||||||
Constructions in progress | 5,032 | 5,025 | ||||||
Right-of-use assets | 1,663 | 1,810 | ||||||
Intangible assets | 8,443 | 8,532 | ||||||
Deferred tax assets | 7,741 | 46,126 | ||||||
Other assets | 13,949 | 12,734 | ||||||
|
|
|
| |||||
Total Assets | 5,286,686 | 5,010,068 | ||||||
|
|
|
|
- 15 -
Commission File Number 001-31914
Balance sheet under new standards as at 31 March 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||
LIABILITIES AND EQUITY | As at 31 March 2023 Group | As at 31 December 2022(i) Group | ||||||
Liabilities | ||||||||
Short-term borrowings | 18 | — | ||||||
Financial liabilities at fair value through profit or loss | N/A | 3,344 | ||||||
Held-for-trading financial liabilities | 4,946 | N/A | ||||||
Securities sold under agreements to repurchase | 79,628 | 148,958 | ||||||
Premiums received in advance | 1,996 | 49,654 | ||||||
Salary and welfare payable | 11,437 | 12,075 | ||||||
Taxes payable | 1,553 | 942 | ||||||
Long-term borrowings | 12,646 | 12,774 | ||||||
Bonds payable | 34,997 | 34,997 | ||||||
Insurance contract liabilities | 4,518,873 | 4,266,947 | ||||||
Reinsurance contract liabilities | 144 | 160 | ||||||
Lease liabilities | 1,459 | 1,569 | ||||||
Deferred tax liabilities | 76 | 272 | ||||||
Other liabilities | 112,973 | 103,403 | ||||||
|
|
|
| |||||
Total Liabilities | 4,780,746 | 4,635,095 | ||||||
|
|
|
| |||||
Equity | ||||||||
Share capital | 28,265 | 28,265 | ||||||
Capital reserve | 53,585 | 53,554 | ||||||
Accumulated other comprehensive income | (48,260 | ) | (112,110 | ) | ||||
Surplus reserve | 105,160 | 105,160 | ||||||
General reserve | 52,452 | 52,429 | ||||||
Retained earnings | 305,417 | 238,723 | ||||||
|
|
|
| |||||
Attributable to equity holders of the Company | 496,619 | 366,021 | ||||||
|
|
|
| |||||
Non-controlling interests | 9,321 | 8,952 | ||||||
|
|
|
| |||||
Total equity | 505,940 | 374,973 | ||||||
|
|
|
| |||||
Total liabilities and equity | 5,286,686 | 5,010,068 | ||||||
|
|
|
|
- 16 -
Commission File Number 001-31914
Income statement under new standards for the first quarter of 2023 (unaudited)
RMB million (Unless otherwise stated) | ||||||||
ITEMS | For the three months ended 31 March 2023 Group | For the three months ended 31 March 2022(i) Group | ||||||
1 Operating income | 109,609 | 92,574 | ||||||
Insurance revenue | 47,183 | 46,110 | ||||||
Interest income | 30,239 | N/A | ||||||
Investment income | 17,398 | 51,284 | ||||||
Including: Share of profit of associates and joint ventures | 3,209 | 2,916 | ||||||
Net gains from the derecognition of financial assets measured at amortised cost | — | N/A | ||||||
Other gains | 96 | 62 | ||||||
Fair value gains/(losses) | 12,810 | (6,997 | ) | |||||
Foreign exchange gains/(losses) | 2 | 171 | ||||||
Other operating income | 1,866 | 1,935 | ||||||
Gains/(losses) on disposal of assets | 15 | 9 | ||||||
2 Operating expenses | (77,612 | ) | (76,012 | ) | ||||
Insurance service expenses | (31,160 | ) | (34,431 | ) | ||||
Allocation of reinsurance premiums paid | (1,738 | ) | (1,377 | ) | ||||
Less: Amounts recovered from reinsurers | 1,607 | 1,394 | ||||||
Insurance finance income/(expenses) from insurance contracts issued | (41,522 | ) | (34,682 | ) | ||||
Less: Reinsurance finance income/(expenses) from reinsurance contracts held | 155 | 145 | ||||||
Interest expenses | (670 | ) | N/A | |||||
Underwriting and policy acquisition costs | (388 | ) | (355 | ) | ||||
Tax and surcharges | (229 | ) | (228 | ) | ||||
Administrative expenses | (1,384 | ) | (1,413 | ) | ||||
Expected credit losses | (193 | ) | N/A | |||||
Other impairment losses | — | N/A | ||||||
Impairment losses | N/A | (2,511 | ) | |||||
Other operating expenses | (2,090 | ) | (2,554 | ) | ||||
|
|
|
|
- 17 -
Commission File Number 001-31914
Income statement under new standards for the first quarter of 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||
ITEMS | For the three months ended 31 March 2023 Group | For the three months ended 31 March 2022(i) Group | ||||||
3 Operating profit | 31,997 | 16,562 | ||||||
|
|
|
| |||||
Add: Non-operating income | 12 | 14 | ||||||
Less: Non-operating expenses | (99 | ) | (74 | ) | ||||
|
|
|
| |||||
4 Profit before income tax | 31,910 | 16,502 | ||||||
|
|
|
| |||||
Less: Income tax expenses | (4,210 | ) | (789 | ) | ||||
|
|
|
| |||||
5 Net profit | 27,700 | 15,713 | ||||||
|
|
|
| |||||
According to operating continuity: | ||||||||
– Net profit from continuing operations | 27,700 | 15,713 | ||||||
According to ownership of the company: | ||||||||
– Equity holders of the Company | 27,348 | 15,365 | ||||||
– Non-controlling interests | 352 | 348 | ||||||
6 Earnings per share | ||||||||
Basic earnings per share | RMB0.98 | RMB0.56 | ||||||
Diluted earnings per share | RMB0.98 | RMB0.56 |
- 18 -
Commission File Number 001-31914
Income statement under new standards for the first quarter of 2023 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||
ITEMS | For the three months ended 31 March 2023 Group | For the three months ended 31 March 2022(i) Group | ||||||
7 Other comprehensive income | 3,108 | (16,223 | ) | |||||
|
|
|
| |||||
Other comprehensive income attributable to equity holders of the Company (net of tax) | 3,098 | (16,084 | ) | |||||
Other comprehensive income that may be reclassified to profit or loss | 2,609 | (15,871 | ) | |||||
Other comprehensive income that may be reclassified to profit or loss under the equity method | 191 | (394 | ) | |||||
Changes in fair value on other debt investments | 3,857 | N/A | ||||||
Allowance for credit losses on other debt investments | 138 | N/A | ||||||
Exchanges differences on translating foreign operations | (81 | ) | (103 | ) | ||||
Financial changes in insurance contracts that may be reclassified to profit or loss | (1,309 | ) | 22,308 | |||||
Financial changes in reinsurance contracts that may be reclassified to profit or loss | (187 | ) | (42 | ) | ||||
Fair value gains/(losses) on available-for-sale financial assets | N/A | (33,208 | ) | |||||
Less: Amount transferred to net profit from other comprehensive income | N/A | (4,432 | ) | |||||
Other comprehensive income that will not be reclassified to profit or loss | 489 | (213 | ) | |||||
Other comprehensive income that may not be transferred to profit or loss under the equity method | 9 | (213 | ) | |||||
Changes in fair value on other equity instruments investments | 779 | N/A | ||||||
Financial changes in insurance contracts that will not be reclassified to profit or loss | (299 | ) | – | |||||
Other comprehensive income attributable to non-controlling interests (net of tax) | 10 | (139 | ) | |||||
|
|
|
| |||||
8 Total Comprehensive income | 30,808 | (510 | ) | |||||
|
|
|
| |||||
– Attributable to equity holders of the Company | 30,446 | (719 | ) | |||||
– Attributable to non-controlling interests | 362 | 209 |
(i) | For comparative information on insurance contracts, the Company has restated and presented financial information in accordance with ASBE No. 25 – Insurance Contracts (Caikuai [2020] No. 20). For comparative information on financial instruments, the Company has chosen not to restate financial information in accordance with ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2017] No. 7). |
- 19 -
Commission File Number 001-31914
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, Zhao Peng, Li Mingguang | |
Non-executive Director: | Wang Junhui | |
Independent Non-executive Directors: | Lam Chi Kuen, Zhai Haitao, Huang Yiping, Chen Jie |
Beijing, China
27 April 2023
- 20 -