Close

Form 6-K CHINA LIFE INSURANCE CO For: Apr 27

April 27, 2022 3:03 PM EDT

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

Commission File Number 001-31914

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

April 27, 2022

 

 

China Life Insurance Company Limited

(Translation of registrant’s name into English)

 

 

16 Financial Street

Xicheng District

Beijing 100033, China

Tel: (86-10) 6363-3333

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes  ☐            No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                        

 

 

 


Commission File Number 001-31914

China Life Insurance Company Limited issued its 2022 First Quarter Report on April 27, 2022, a copy of which is attached as Exhibit 99.1 hereto.

Certain statements contained in this report may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2020 filed with the U.S. Securities and Exchange Commission, or SEC, on April 29, 2021 and in the Company’s other filings with the SEC. You should not place undue reliance on these forward-looking statements. All information provided in this report is as of the date of this report, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law. Unless otherwise indicated, the Chinese insurance market information set forth in this report is based on public information released by the China Banking and Insurance Regulatory Commission.

EXHIBIT LIST

 

Exhibit    Description
99.1    2022 First Quarter Report, dated April 27, 2022


Commission File Number 001-31914

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

           

China Life Insurance Company Limited

      (Registrant)
   

By:

 

/s/ Su Hengxuan

      (Signature)

April 27, 2022

   

Name:

Title:

 

Su Hengxuan

President and Executive Director

Exhibit 99.1

 

LOGO

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.

 

1


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.

 

2


  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
  

 

 

 

Total

     (28
  

 

 

 

 

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

 

3


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

 
  

 

 
  

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.

 

4


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

 

5


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.

 

6


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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Assets

     4,915,845        4,891,085        4,807,991        4,778,702  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Yuan Changqing    Huang Xiumei    Li Mingguang    Hu Jin

Legal

Representative

  

Vice President in

charge of Accounting Affairs

   Chief Actuary   

Head of

Financial Department

 

7


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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     4,442,455        4,404,427        4,343,000        4,301,645  
  

 

 

    

 

 

    

 

 

    

 

 

 

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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Attributable to equity holders of the Company

     465,108        478,585        
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-controlling interests

     8,282        8,073        
  

 

 

    

 

 

    

 

 

    

 

 

 

Total equity

     473,390        486,658        464,991        477,057  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities and equity

     4,915,845        4,891,085        4,807,991        4,778,702  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Yuan Changqing    Huang Xiumei    Li Mingguang    Hu Jin

Legal

Representative

  

Vice President in

charge of Accounting Affairs

   Chief Actuary   

Head of

Financial Department

 

8


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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Including: Reinsurance premium income

     —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Including: Share of profit of associates and joint ventures

     2,354        3,015        2,921        3,039  
  

 

 

    

 

 

    

 

 

    

 

 

 

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
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Yuan Changqing    Huang Xiumei    Li Mingguang    Hu Jin

Legal

Representative

  

Vice President in

charge of Accounting Affairs

   Chief Actuary   

Head of

Financial Department

 

9


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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Add: Non-operating income

     14        12        13        10  

Less: Non-operating expenses

     (74      (130      (74      (130
  

 

 

    

 

 

    

 

 

    

 

 

 

4 Net profit before income tax

     16,287        35,130        16,806        34,763  
  

 

 

    

 

 

    

 

 

    

 

 

 

Less: Income tax expenses

     (761      (6,149      (447      (5,808
  

 

 

    

 

 

    

 

 

    

 

 

 

5 Net profit

     15,526        28,981        16,359        28,955  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

10


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      
  

 

 

    

 

 

    

 

 

    

 

 

 

8 Total comprehensive income

     (13,179      17,577        (11,930      17,708  
  

 

 

    

 

 

    

 

 

    

 

 

 

– 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
Representative

   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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash inflows from operating activities

     263,141        265,416        266,360        268,373  
  

 

 

    

 

 

    

 

 

    

 

 

 

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
           

 

 

 

Sub-total of cash outflows from operating activities

     (88,804      (104,187      (86,788      (103,269
           

 

 

 

Net cash flows from operating activities

     174,337        161,229        179,572        165,104  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash inflows from investing activities

     392,690        212,923        360,686        207,275  
  

 

 

    

 

 

    

 

 

    

 

 

 

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      —    
           

 

 

 

Sub-total of cash outflows from investing activities

     (378,375      (332,843      (353,570      (343,139
           

 

 

 

Net cash flows from investing activities

     14,315        (119,920      7,116        (135,864
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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        
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash inflows from financing activities

     —          3,741        —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

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
           

 

 

 

Sub-total of cash outflows from financing activities

     (166,725      (16,619      (164,435      (16,221
           

 

 

 

Net cash flows from financing activities

     (166,725      (12,878      (164,435      (16,221
  

 

 

    

 

 

    

 

 

    

 

 

 

4 Effect of changes in foreign exchange rate on cash and cash equivalents

     (28      (30      (16      (33
  

 

 

    

 

 

    

 

 

    

 

 

 

5 Net increase in cash and cash equivalents

     21,899        28,401        22,237        12,986  
  

 

 

    

 

 

    

 

 

    

 

 

 

Add: Opening balance of cash and cash equivalents

     60,440        56,655        53,593        50,692  
  

 

 

    

 

 

       

 

 

 

6 Closing balance of cash and cash equivalents

     82,339        85,056        75,830        63,678  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings