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

October 26, 2023

 

 

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 ☐

 

 

 


Commission File Number 001-31914

 

China Life Insurance Company Limited issued its 2023 Third Quarter Report on October 26, 2023, 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, 2022 filed with the U.S. Securities and Exchange Commission, or SEC, on April 21, 2023 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 National Administration of Financial Regulation.

EXHIBIT LIST

 

Exhibit   

Description

99.1    2023 Third Quarter Report, dated October 26, 2023


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/ Li Mingguang

      (Signature)
October 26, 2023    

Name:

Title:

 

Li Mingguang

Principal Executive Officer and Executive Director

EXHIBIT 99.1

Commission File Number 001-31914

 

LOGO

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 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, the Board of Supervisors, its Directors, Supervisors and Senior Management warrant that the information in the 2023 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 2023 third 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, Ms. Hu Jin, Person in Charge of Finance and Head of the Financial Department, and Ms. Hou Jin, temporary chief actuary, confirm that the financial statements in the 2023 third quarter report are true, accurate and complete.

 

- 1 -


1.

MAJOR FINANCIAL DATA

 

  1.1

Major Accounting Data and Financial Indicators

Currency: RMB  

Items   

As at
30 September

2023

     As at 31 December 2022     

Increase/
(decrease)
compared to
31 December

2022

       

Total assets (million)

     5,759,367        5,251,984        9.7  

Equity attributable to equity holders of the Company (million)

     441,878        436,169        1.3  
Items   

For the
Reporting
Period (from

July to

September)

     For the corresponding
period of 2022
     Increase/
(decrease)
compared to the
corresponding
period of 2022
   

For the
nine months

ended
30 September

2023

     For the corresponding
period of 2022
     Increase/
(decrease)
compared to the
corresponding
period of 2022
       
   After
restatement
     Before
restatement
     After
restatement
     After
restatement
     Before
restatement
     After restatement        

Operating income (million)

     155,738        172,716        172,714        -9.8     709,333        701,018        701,012        1.2  

Net profit attributable to equity holders of the Company (million)

     53        5,669        5,701        -99.1     16,209        31,025        31,117        -47.8  

Net profit attributable to equity holders of the Company after deducting non-recurring items (million)

     111        5,703        5,735        -98.1     16,353        31,090        31,182        -47.4  

Net cash flows from operating activities (million)

     N/A        N/A        N/A        N/A       339,383        288,829        288,755        17.5  

Earnings per share (basic and diluted) (RMB per share)

     —         0.20        0.20        -99.1     0.57        1.10        1.10        -47.8  

Weighted average ROE (%)

     0.01        1.21        1.22       


A decrease
of 1.20
percentage
points
 
 
 
 
    3.67        6.61        6.63       


A decrease
of 2.94
percentage
points
 
 
 
 
 

Notes:

 

  1.

The financial data for the first three quarters 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.

 

- 2 -


  1.2

Non-recurring Items and Amounts

RMB million

Non-recurring items   

For the
Reporting
Period (from

July to

September)

   

For the
nine months

ended
30 September

2023

       

Gains/(losses) on disposal of non-current assets

     7       19    

Government subsidies recognised in current gains/(losses)

     14       61    

External donations

     —        (1  

Net non-operating income and expenses other than those mentioned above

     (95     (255  

Effect of income tax

     18       44    

Attributable to non-controlling interests

     (2     (12  

Total

     (58     (144  

 

  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.

 

- 3 -


  1.3

Particulars of and Reasons for Changes in Major Accounting Data and Financial Indicators

Currency: RMB

Items   

For the
Reporting
Period (from

July to

September)

    

For the
corresponding

period of

2022 (after

restatement)

    

Increase/
(decrease)
compared to the
corresponding

period of

2022 (after

restatement)

   

For the nine
months ended
30 September

2023

    

For the
corresponding

period of
2022 (after

restatement)

    

Increase/
(decrease)
compared to the
corresponding

period of
2022 (after

restatement)

    Main reasons    

Net profit attributable to equity holders of the Company (million)

     53        5,669        -99.1     16,209        31,025        -47.8   Due to the
impact of
the equity
market
staying

at the low
level, the
investment
income
declined
year on year

 

Net profit attributable to equity holders of the Company after deducting non-recurring items (million)

     111        5,703        -98.1     16,353        31,090        -47.4

Earnings per share (basic and diluted) (RMB per share)

     —         0.20        -99.1     0.57        1.10        -47.8   A
year-on-year
decrease in
net profit
attributable
to equity
holders of
the
Company
 

Weighted average ROE (%)

     0.01        1.21       

A decrease of

1.20 percentage

points

 

 

 

    3.67        6.61       

A decrease of

2.94 percentage

points

 

 

 

 

- 4 -


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: 86,541

 

 
  

Number of H Share shareholders: 24,491

 

 

Particulars of top ten shareholders of the Company

 

     Unit: Share    
Name of shareholders    Nature of shareholder    Percentage of
shareholding
    

Total number of
shares held as at
the end of
the Reporting

Period

    

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      7,327,868,382        —         —     

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      37,261,949        —         —     

Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund

  

Other

     0.06      15,977,103        —         —     

Guosen Securities Co., Ltd. – Founder Fubon CSI Insurance Theme Index Securities Investment Fund

  

Other

     0.05      13,226,012        —         —     

National Social Security Fund Portfolio 114

  

Other

     0.04      12,000,000        —         —     

Industrial and Commercial Bank of China Limited – Huatai-PineBridge CSI 300 Exchange Traded Index Securities Investment Fund

  

Other

     0.04      10,748,933        —         —     

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.

Both Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund and Industrial and Commercial Bank of China Limited – Huatai-PineBridge CSI 300 Exchange Traded Index Securities Investment Fund have Industrial and Commercial Bank of China Limited as their 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.

 

- 5 -


3.

QUARTERLY BUSINESS OVERVIEW

In the first three quarters of 2023, as the momentum of economic upturn in China continued to consolidate, the recovery of the life insurance industry has sustained, but there were still uncertainties and complexities. During the Reporting Period, the Company continued to pursue high-quality development and achieved a steady business performance with improved business quality, which further enhanced its comprehensive strengths and solidified its market leading position in the industry. Firstly, the growth momentum was sustained with steady improvement in business quality. In the first three quarters of 2023, the Company achieved a rapid growth in its insurance businesses. Its revenues from insurance businesses1 were RMB578,799 million, an increase of 4.5% year on year. Premiums from new policies were RMB196,656 million, an increase of 14.8% year on year. In particular, first-year regular premiums amounted to RMB105,982 million, an increase of 16.0% year on year. Both the scale and growth rate of revenues from insurance businesses, premiums from new policies and first-year regular premiums hit record highs for the corresponding period of the past three years. The Company realised a rapid growth in premiums from new policies with its business structure continuously optimised. First-year regular premiums with a payment duration of ten years or longer were RMB44,639 million, an increase of 15.4% year on year, and its proportion in the first-year regular premiums was 42.12%, rising by 2.13 percentage points from the first half of 2023. The value of new business for the first three quarters of 2023 continued to grow, recording a year-on-year increase of 14.0%. Renewal premiums were RMB382,143 million, which generally remained stable. Short-term insurance premiums amounted to RMB69,319 million, an increase of 3.4% year on year. The surrender rate2 was 0.88%, an increase of 0.14 percentage point year on year. Secondly, the sales force of the Company was further stabilised and its quality was steadily improved. Focusing on the “Eight Reform Programs” and implementation of the “Sales Channel Strengthening Program”, the Company continued to drive business growth through productive agents, proceeded with the sales system reforms in greater depth, and reinforced agent recruitment and development, so as to push forward the transformation of the sales team to be more specialised and professional. As at the end of the Reporting Period, the Company’s total sales force was 0.72 million, of which the number of agents of the individual agent business sector was 0.66 million, further stabilising and solidifying the scale of its sales team. In the meantime, the quality of the sales team continued to optimise and its productivity was significantly improved, with the monthly average first-year regular premiums per agent increasing by 28.6% year on year. Thirdly, the Company remained under pressure in terms of investment income due to the complicated and severe capital market environment. In the third quarter of 2023, the coupon rate of domestic bonds was volatile at the low level with the neutral weight edging further downwards, which created a persistent pressure on the allocation of fixed-income assets. The stock market continued to fluctuate at the low level, severely affecting the investment income from open market equity investment. Affected by the above factors, in the first three quarters of 2023, the Company achieved gross investment income3 of RMB109,997

 

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)

3 

Gross investment income = Net investment income + Net realised gains on investment assets + Fair value gains/losses – Impairment losses of investment assets

 

- 6 -


million and gross investment yield4 was 2.81%. The net investment income5 was RMB148,340 million and the net investment yield6 was 3.81%. Fourthly, the solvency ratios of the Company continued to maintain at high levels. As at the end of the Reporting Period, the Company’s core solvency ratio and comprehensive solvency ratio were 161.25% and 232.68%, respectively, the increase of 17.66 percentage points and 25.90 percentage points from the end of 2022, respectively. The strong solvency ratios provide solid capital foundation for the development of the Company.

As at the end of the Reporting Period, the Company’s total assets and investment assets were RMB5,759,367 million and RMB5,519,950 million, respectively. In the first three quarters of 2023, due to the impact of the equity market staying at the low level, the investment income of the Company declined year on year and net profit attributable to equity holders of the Company was RMB16,209 million, a decrease of 47.8% year on year.

The Company will continue to pursue the guideline of making progress while maintaining stability, firmly implement the business strategy of “achieving stable growth, prioritising business value, optimising business structure, strengthening sales force, promoting reforms and guarding against risks”, properly coordinate its business development with team building, facilitate in-depth reforms on key areas, push forward the sales system reforms in great depth, and properly proceed with the empowerment and implementation of healthcare and senior-care ecosystem. It will also endeavour to improve capabilities in customer services and management, strengthen the supporting role of digital iteration, further enhance the protection of consumers’ rights and interests, and reinforce the bottom line of risk prevention and control, with the goal of promoting the high-quality development of the Company with stable and sustainable growth.

 

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 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)]/273×365

 

- 7 -


4.

QUARTERLY FINANCIAL STATEMENTS

Balance sheet as at 30 September 2023 (unaudited)

 

            RMB million (Unless otherwise stated)  
ASSETS   

As at
30 September

2023

Group

    

As at
31 December

2022

Group

    

As at
30 September

2023

Company

    

As at
31 December

2022

Company

 

Assets

           

Cash fund

     158,633        128,953        142,621        119,033  

Financial assets at fair value through profit or loss

     250,104        223,782        113,334        93,649  

Securities purchased under agreements to resell

     23,177        38,533        19,065        35,816  

Interest receivables

     57,363        52,309        53,811        49,833  

Premiums receivables

     41,721        19,697        41,721        19,697  

Receivables from reinsurers

     1,809        1,433        1,809        1,433  

Unearned premium reserves receivable from reinsurers

     839        774        839        774  

Claim reserves receivable from reinsurers

     756        736        756        736  

Reserves for life insurance receivables from reinsurers

     729        603        729        603  

Reserves for long-term health insurance receivables from reinsurers

     4,544        4,294        4,544        4,294  

Other receivables

     25,486        13,409        28,778        16,964  

Loans

     597,618        596,490        580,818        578,963  

Term deposits

     429,846        485,567        346,638        442,690  

Available-for-sale financial assets

     2,043,774        1,738,108        1,932,742        1,644,704  

Held-to-maturity investments

     1,740,750        1,574,204        1,738,353        1,571,892  

Long-term equity investments

     258,339        261,179        513,859        466,875  

Statutory deposits

     6,333        6,333        5,653        5,653  

Investment properties

     12,844        13,193        6,113        6,266  

Constructions in progress

     5,513        5,025        4,604        4,293  

Fixed assets

     47,602        49,052        43,642        45,088  

Right-of-use assets

     1,480        1,810        1,295        1,595  

Intangible assets

     8,340        8,532        7,256        7,406  

Deferred tax assets

     33,925        22,307        33,833        22,120  

Other assets

     5,551        5,654        5,127        5,410  

Separate account assets

     2,291        7        7        7  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

     5,759,367        5,251,984        5,627,947        5,145,794  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Bai Tao    Hu Jin    Hou Jin    Hu Jin

Legal

Representative

  

Person in charge of

Accounting Affairs

  

Temporary

Chief Actuary

  

Head of Financial

Department

 

- 8 -


Balance sheet as at 30 September 2023 (unaudited) (continued)

 

           RMB million (Unless otherwise stated)  
LIABILITIES AND EQUITY   

As at

30 September
2023

Group

   

As at
31 December
2022

Group

    As at
30 September
2023
Company
    As at
31 December
2022
Company
 

Liabilities

        

Financial liabilities at fair value through profit or loss

     5,488       3,344       —        —   

Securities sold under agreements to repurchase

     154,614       148,954       138,343       140,587  

Premiums received in advance

     38,370       50,830       38,370       50,830  

Brokerage and commission payable

     4,190       4,664       4,188       4,660  

Reinsurance payable

     1,460       998       1,460       998  

Salary and welfare payable

     8,724       12,075       7,585       10,758  

Taxes payable

     992       942       673       509  

Dividends payable

     10       —        —        —   

Claims payable

     66,623       60,819       66,623       60,819  

Policyholder dividends payable

     92,458       96,682       92,458       96,682  

Other payable

     15,066       18,974       13,052       16,964  

Policyholder deposits

     473,253       374,742       473,253       374,742  

Unearned premium reserves

     25,411       13,108       25,411       13,108  

Claim reserves

     26,757       26,153       26,757       26,153  

Reserves for life insurance

     3,967,017       3,607,236       3,967,017       3,607,236  

Reserves for long-term health insurance

     260,010       233,663       260,010       233,663  

Long-term borrowings

     12,636       12,774       —        —   

Bonds payable

     34,999       34,997       34,999       34,997  

Lease liabilities

     1,280       1,569       1,091       1,342  

Deferred tax liabilities

     647       272       —        —   

Other liabilities

     115,603       104,060       31,254       29,921  

Separate account liabilities

     2,291       7       7       7  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     5,307,899       4,806,863       5,182,551       4,703,976  
  

 

 

   

 

 

   

 

 

   

 

 

 

Equity

        

Share capital

     28,265       28,265       28,265       28,265  

Capital reserve

     53,940       53,554       52,479       52,410  

Accumulated other comprehensive income

     (1,963     (4,927     (4,223     (6,103

Surplus reserve

     109,092       105,160       109,044       105,112  

General reserve

     52,500       52,429       51,341       51,341  

Retained earnings

     200,044       201,688       208,490       210,793  
  

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to equity holders of the Company

     441,878       436,169      
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-controlling interests

     9,590       8,952      
  

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     451,468       445,121       445,396       441,818  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     5,759,367       5,251,984       5,627,947       5,145,794  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Bai Tao   

Hu Jin

   Hou Jin    Hu Jin

Legal

Representative

  

Person in charge of

Accounting Affairs

  

Temporary

Chief Actuary

  

Head of Financial

Department

 

- 9 -


Income statement for the third quarter of 2023 (unaudited)

 

          RMB million (Unless otherwise stated)  
         

For the nine months

ended 30 September

   

For the nine months

ended 30 September

 
          2023     2022     2023     2022  
ITEMS         Group     Group     Company     Company  
                (Restated)              

1

   Operating income      709,333       701,018       703,483       699,558  
   Premiums earned      560,227       536,679       560,227       536,679  
     Premium income      578,799       554,105       578,799       554,105  
     

 

 

   

 

 

   

 

 

   

 

 

 
       Including: Reinsurance premium income      —        —        —        —   
     

 

 

   

 

 

   

 

 

   

 

 

 
     Less: Premiums ceded to reinsurers      (6,334     (6,897     (6,334     (6,897
         Change in unearned premium reserves      (12,238     (10,529     (12,238     (10,529
   Investment income      140,630       165,354       138,446       164,412  
     

 

 

   

 

 

   

 

 

   

 

 

 
     Including: Share of profit of associates and joint ventures      6,900       6,352       6,605       7,840  
     

 

 

   

 

 

   

 

 

   

 

 

 
   Other gains      129       148       79       88  
   Fair value gains/(losses)      1,821       (8,104     1,009       (5,702
   Foreign exchange gains/(losses)      (195     214       323       1,020  
   Other operating income      6,689       6,657       3,368       2,991  
   Gains/(losses) on disposal of assets      32       70       31       70  

2

   Operating expenses      (703,106     (672,930     (699,974     (670,087
   Surrenders      (38,468     (28,693     (38,468     (28,693
   Claims expense      (139,116     (107,736     (139,116     (107,736
   Less: Claims recoverable from reinsurers      5,307       5,045       5,307       5,045  
   Increase in insurance contracts reserve      (386,725     (415,129     (386,725     (415,129
   Less: Insurance reserves recoverable from reinsurers      396       672       396       672  
   Policyholder dividends resulting from participation in profits      (6,244     (17,285     (6,244     (17,285
   Tax and surcharges      (796     (789     (663     (676
   Underwriting and policy acquisition costs      (53,962     (45,713     (53,934     (45,712
   Administrative expenses      (29,537     (28,656     (27,326     (26,492
   Less: Expenses recoverable from reinsurers      525       1,050       525       1,050  
   Other operating expenses      (21,917     (20,921     (20,632     (19,828
   Impairment losses      (32,569     (14,775     (33,094     (15,303
     

 

 

   

 

 

   

 

 

   

 

 

 

 

Bai Tao    Hu Jin    Hou Jin    Hu Jin

Legal

Representative

  

Person in charge of

Accounting Affairs

  

Temporary

Chief Actuary

  

Head of Financial

Department

 

- 10 -


Income statement for the third quarter of 2023 (unaudited) (continued)

 

          RMB million (Unless otherwise stated)  
         

For the nine months

ended 30 September

   

For the nine months

ended 30 September

 
          2023     2022     2023     2022  
ITEMS         Group     Group     Company     Company  
                (Restated)              

3

   Operating profit      6,227       28,088       3,509       29,471  
     

 

 

   

 

 

   

 

 

   

 

 

 
   Add: Non-operating income      32       59       28       55  
   Less: Non-operating expenses      (298     (286     (296     (285
     

 

 

   

 

 

   

 

 

   

 

 

 
           

4

   Net profit before income tax      5,961       27,861       3,241       29,241  
     

 

 

   

 

 

   

 

 

   

 

 

 
   Less: Income tax expenses      11,341       4,315       12,238       5,369  
     

 

 

   

 

 

   

 

 

   

 

 

 
           

5

   Net profit      17,302       32,176       15,479       34,610  
     

 

 

   

 

 

   

 

 

   

 

 

 
   According to operating continuity:         
   – Net profit from continuing operations      17,302       32,176       15,479       34,610  
   According to ownership of the company:         
   – Equity holders of the Company      16,209       31,025      
   Non-controlling interests      1,093       1,151      

6

   Earnings per share         
   Basic earnings per share      RMB0.57       RMB1.10      
   Diluted earnings per share      RMB0.57       RMB1.10      

 

Bai Tao    Hu Jin    Hou Jin    Hu Jin

Legal

Representative

  

Person in charge of

Accounting Affairs

  

Temporary

Chief Actuary

  

Head of Financial

Department

 

- 11 -


Income statement for the third quarter of 2023 (unaudited) (continued)

 

RMB million (Unless otherwise stated)

 

    

For the nine months

ended 30 September

   

For the nine months

ended 30 September

 
     2023     2022     2023     2022  
ITEMS    Group     Group     Company     Company  
           (Restated)              

7   Other comprehensive income

     2,927       (37,752     1,880       (38,450
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income attributable to equity holders of the Company (net of tax)

     2,964       (37,649    

Other comprehensive income that may be reclassified to profit or loss

     2,088       (37,473     1,012       (38,188

Fair value gains/(losses) on available-for-sale financial assets

     (22,473     (45,538     (23,505     (46,455

Less: Amount transferred to net profit from other comprehensive income

     29,976       (5,551     29,992       (5,409

Portion of fair value changes on available-for-sale financial assets attributable to participating policyholders

     (4,940     14,691       (4,940     14,691  

Other comprehensive income that may be transferred to profit or loss under the equity method

     (1,072     (1,723     (573     (1,035

Exchanges differences on translating foreign operations

     597       648       38       20  

Other comprehensive income that will not be reclassified to profit or loss

     876       (176     868       (262

Other comprehensive income that may not be transferred to profit or loss under the equity method

     876       (176     868       (262

Other comprehensive income attributable to non-controlling interests (net of tax)

     (37     (103    
  

 

 

   

 

 

   

 

 

   

 

 

 

8   Total comprehensive income

     20,229       (5,576     17,359       (3,840
  

 

 

   

 

 

   

 

 

   

 

 

 

– Attributable to equity holders of the Company

     19,173       (6,624    

– Attributable to non-controlling interests

     1,056       1,048      

 

Bai Tao   Hu Jin   Hou Jin   Hu Jin

Legal

Representative

 

Person in charge of

Accounting Affairs

 

Temporary

Chief Actuary

 

Head of Financial

Department

 

- 12 -


Cash flow statement for the third quarter of 2023 (unaudited)

RMB million (Unless otherwise stated)

 

    

For the nine months

ended 30 September

   

For the nine months

ended 30 September

 
     2023     2022     2023     2022  
ITEMS    Group     Group     Company     Company  
           (Restated)              

1   Cash flows from operating activities

        

Premiums received

     541,748       494,458       541,748       494,458  

Net increase in policyholder deposits

     85,282       38,442       85,282       38,442  

Net cash received from financial assets at fair value through profit or loss

     —        —        —        15,414  

Net cash received from financial liabilities at fair value through profit or loss

     —        1,865       —        —   

Cash received from other operating activities

     9,521       13,037       4,343       7,492  
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total of cash inflows from operating activities

     636,551       547,802       631,373       555,806  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for claims

     (171,719     (133,065     (171,719     (133,065

Net cash paid for reinsurance business

     (416     (1,057     (416     (1,057

Cash paid for brokerage and commission fees

     (54,486     (46,369     (54,457     (46,366

Cash paid for policyholder dividends

     (16,139     (17,803     (16,137     (17,803

Cash paid to and for employees

     (19,798     (20,209     (18,207     (18,510

Cash paid for taxes and surcharges

     (4,894     (5,482     (3,072     (3,477

Net cash paid for financial assets at fair value through profit or loss

     (15,090     (15,456     (16,849     —   

Net cash paid for financial liabilities at fair value through profit or loss

     (1,090     —        —        —   

Cash paid for other operating activities

     (13,536     (19,532     (14,070     (18,986
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total of cash outflows from operating activities

     (297,168     (258,973     (294,927     (239,264
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from operating activities

     339,383       288,829       336,446       316,542  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Bai Tao   Hu Jin   Hou Jin   Hu Jin

Legal

Representative

 

Person in charge of

Accounting Affairs

 

Temporary

Chief Actuary

 

Head of Financial

Department

 

- 13 -


Cash flow statement for the third quarter of 2023 (unaudited) (continued)

 

RMB million (Unless otherwise stated)

 

    

For the nine months

ended 30 September

   

For the nine months

ended 30 September

 
     2023     2022     2023     2022  
ITEMS    Group     Group     Company     Company  
           (Restated)              

2   Cash flows from investing activities

        

Cash received from sales and redemption of investments

     963,796       930,542       889,576       823,882  

Cash received from investment income

     136,780       134,495       134,998       131,863  

Net cash received from disposals of fixed assets, intangible assets and other long-term assets

     85       148       85       147  

Net cash received from securities purchased under agreements to resell

     16,139       —        16,751       —   

Net cash received from the disposal of subsidiaries and other business units

     —        255       34       2,263  
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total of cash inflows from investing activities

     1,116,800       1,065,440       1,041,444       958,155  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for investments

     (1,401,820     (1,080,431     (1,288,048     (1,015,918

Net increase in policy loans

     (14,401     (12,922     (14,401     (12,922

Cash paid for acquisition of fixed assets, intangible assets and other long-term assets

     (1,967     (1,720     (1,473     (1,358

Net cash paid from securities purchased under agreements to resell

     —        (12,867     —        (11,507

Net cash paid for the acquisition of subsidiaries and other business units

     (11,006     (12,117     (30,598     (12,513

Cash paid for other investing activities

     (198     —        —        —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total of cash outflows from investing activities

     (1,429,392     (1,120,057     (1,334,520     (1,054,218
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from investing activities

     (312,592     (54,617     (293,076     (96,063
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Bai Tao   Hu Jin   Hou Jin   Hu Jin

Legal

Representative

 

Person in charge of

Accounting Affairs

 

Temporary

Chief Actuary

 

Head of Financial

Department

 

- 14 -


Cash flow statement for the third quarter of 2023 (unaudited) (continued)

 

RMB million (Unless otherwise stated)

 

    

For the nine months

ended 30 September

   

For the nine months

ended 30 September

 
     2023     2022     2023     2022  
ITEMS    Group     Group     Company     Company  
           (Restated)              

3   Cash flows from financing activities

        

Cash received from investment

     17,889       3,241       —        —   

Including: Cash received from the investment of non-controlling interests by subsidiaries

     17,889       3,241      

Cash received from borrowings

     18       —        —        —   

Net cash received for securities sold under agreements to repurchase

     5,482       —        —        —   

Cash received from other financing activities

     750       —        —        —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total of cash inflows from financing activities

     24,139       3,241       —        —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash repaid to lenders

     (563     (97     —        —   

Cash paid for dividends and interests and repaid for lenders

     (20,139     (24,429     (17,016     (21,825

Net cash paid for securities sold under agreements to repurchase

     —        (151,849     (2,244     (157,334

Cash paid for other financing activities

     (761     (1,228     (621     (760
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total of cash outflows from financing activities

     (21,463     (177,603     (19,881     (179,919
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from financing activities

     2,676       (174,362     (19,881     (179,919
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     107       228       99       189  
  

 

 

   

 

 

   

 

 

   

 

 

 

5   Net increase in cash and cash equivalents

     29,574       60,078       23,588       40,749  
  

 

 

   

 

 

   

 

 

   

 

 

 

Add: Opening balance of cash and cash equivalents

     127,594       60,459       119,036       53,593  
  

 

 

   

 

 

   

 

 

   

 

 

 

6   Closing balance of cash and cash equivalents

     157,168       120,537       142,624       94,342  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Bai Tao   Hu Jin   Hou Jin   Hu Jin

Legal

Representative

 

Person in charge of

Accounting Affairs

 

Temporary

Chief Actuary

 

Head of Financial

Department

 

- 15 -


Notes:

Under Accounting Standards for Business Enterprises (“ASBE”), the Company adopts the transition plan for the new accounting standards for insurance contracts, namely: From 1 January 2023 to 31 December 2025, the Company will continue to apply ASBE No. 25 – Direct Insurance Contracts (Caikuai [2006] No. 3), ASBE No. 26 – Reinsurance Contracts (Caikuai [2006] No. 3), Regulations regarding the Accounting Treatment of Insurance Contracts (Caikuai [2009] No. 15), ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2006] No. 3), ASBE No. 23 – Transfer of Financial Assets (Caikuai [2006] No. 3), ASBE No. 24 – Hedging (Caikuai [2006] No. 3), ASBE No. 37 – Presentation of Financial Instruments (Caikuai [2014] No. 23) and other relevant accounting standards.

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 third quarter of 2023. The Company has restated and presented the comparative information associated with insurance contracts in accordance with ASBE No. 25 – Insurance Contracts (Caikuai [2020] No. 20), and there is no need to restate and present any comparative information associated with financial instruments in accordance with ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2017] No. 7).

Balance sheet under the new standards as at 30 September 2023 (unaudited)

RMB million (Unless otherwise stated)

 

ASSETS   

As at
30 September

2023

Group

    

As at
31 December

2022

Group

 
            (Restated)  

Assets

     

Cash fund

     159,230        128,956  

Financial assets at fair value through profit or loss

     N/A        223,790  

Financial assets purchased under agreements to resell

     23,179        38,533  

Interest receivables

     N/A        49,438  

Term deposits

     439,715        485,567  

Held-for-trading financial assets

     1,613,360        N/A  

Financial assets at amortised cost

     208,386        N/A  

Debt financial assets at fair value through other comprehensive income

     2,643,797        N/A  

Equity financial assets at fair value through other comprehensive income

     132,518        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

     25,095        24,096  

Long-term equity investments

     259,650        262,488  

Statutory deposits

     6,466        6,333  

Investment properties

     12,844        13,193  

Fixed assets

     47,602        49,052  

Constructions in progress

     5,513        5,025  

Right-of-use assets

     1,480        1,810  

Intangible assets

     8,340        8,532  

Deferred tax assets

     23,289        46,126  

Other assets

     29,897        12,734  
  

 

 

    

 

 

 

Total assets

     5,640,361        5,010,068  
  

 

 

    

 

 

 

 

- 16 -


Balance sheet under the new standards as at 30 September 2023 (unaudited) (continued)

 

RMB million (Unless otherwise stated)

 

LIABILITIES AND EQUITY   

As at
30 September

2023

Group

   

As at
31 December

2022

Group

 
           (Restated)  

Liabilities

    

Financial liabilities at fair value through profit or loss

     N/A       3,344  

Held-for-trading financial liabilities

     5,488       N/A  

Financial assets sold under agreements to repurchase

     154,645       148,958  

Premiums received in advance

     37,239       49,654  

Salary and welfare payable

     8,724       12,075  

Taxes payable

     961       942  

Long-term borrowings

     12,653       12,774  

Bonds payable

     35,789       34,997  

Insurance contract liabilities

     4,785,095       4,266,947  

Reinsurance contract liabilities

     169       160  

Lease liabilities

     1,280       1,569  

Deferred tax liabilities

     —        272  

Other liabilities

     113,978       103,403  
  

 

 

   

 

 

 

Total liabilities

     5,156,021       4,635,095  
  

 

 

   

 

 

 

Equity

    

Share capital

     28,265       28,265  

Capital reserve

     53,940       53,554  

Accumulated other comprehensive income

     (64,821     (112,110

Surplus reserve

     109,092       105,160  

General reserve

     52,500       52,429  

Retained earnings

     295,763       238,723  
  

 

 

   

 

 

 

Attributable to equity holders of the Company

     474,739       366,021  
  

 

 

   

 

 

 

Non-controlling interests

     9,601       8,952  
  

 

 

   

 

 

 

Total equity

     484,340       374,973  
  

 

 

   

 

 

 

Total liabilities and equity

     5,640,361       5,010,068  
  

 

 

   

 

 

 

 

- 17 -


Income statement under the new standards for the third quarter of 2023 (unaudited)

RMB million (Unless otherwise stated)

 

ITEMS   

For the nine
months ended
30 September

2023

Group

   

For the nine
months ended
30 September

2022

Group

 
           (Restated)  

1   Operating income

     244,990       292,967  

Insurance revenue

     136,439       137,385  

Interest income

     92,036       N/A  

Investment income

     22,578       156,921  
  

 

 

   

 

 

 

Including: Share of profit of associates and joint ventures

     6,719       6,468  
  

 

 

   

 

 

 

Other gains

     129       148  

Fair value gains/(losses)

     (12,089     (8,104

Foreign exchange gains/(losses)

     (195     214  

Other operating income

     6,060       6,333  

Gains/(losses) on disposal of assets

     32       70  

2   Operating expenses

     (213,333     (232,317

Insurance service expenses

     (99,171     (95,987

Allocation of reinsurance premiums paid

     (4,226     (3,552

Less: Amounts recovered from reinsurers

     3,774       5,168  

Insurance finance income/(expenses) from insurance contracts issued

     (101,029     (109,899

Less: Reinsurance finance income/(expenses) from reinsurance contracts held

     465       436  

Interest expenses

     (3,563     N/A  

Underwriting and policy acquisition costs

     (1,167     (1,052

Tax and surcharges

     (795     (770

Administrative expenses

     (4,454     (4,371

Expected credit losses

     935       N/A  

Impairment losses

     N/A       (14,807

Other operating expenses

     (4,102     (7,483
  

 

 

   

 

 

 

 

- 18 -


Income statement under the new standards for the third quarter of 2023 (unaudited) (continued)

 

RMB million (Unless otherwise stated)

 

ITEMS   

For the nine
months ended
30 September

2023

Group

   

For the nine
months ended
30 September

2022

Group

 
           (Restated)  

3   Operating profit

     31,657       60,650  
  

 

 

   

 

 

 

Add: Non-operating income

     32       59  

Less: Non-operating expenses

     (298     (286
  

 

 

   

 

 

 

4   Profit before income tax

     31,391       60,423  
  

 

 

   

 

 

 

Less: Income tax expenses

     5,168       (3,758
  

 

 

   

 

 

 

5   Net profit

     36,559       56,665  
  

 

 

   

 

 

 

According to operating continuity:

    

– Net profit from continuing operations

     36,559       56,665  

According to ownership of the company:

    

– Equity holders of the Company

     35,541       55,514  

Non-controlling interests

     1,018       1,151  

6   Earnings per share

    

Basic earnings per share

     RMB1.26       RMB1.96  

Diluted earnings per share

     RMB1.26       RMB1.96  

 

- 19 -


Income statement under the new standards for the third quarter of 2023 (unaudited) (continued)

 

RMB million (Unless otherwise stated)   
ITEMS   

For the nine
months ended
30 September

2023

Group

   

For the nine
months ended
30 September

2022

Group

 
           (Restated)  

7   Other comprehensive income

     (13,421     (62,905
  

 

 

   

 

 

 

Other comprehensive income attributable to equity holders of the Company (net of tax)

     (13,461     (62,802

Other comprehensive income that may be reclassified to profit or loss

     (14,562     (62,626

Other comprehensive income that may be reclassified to profit or loss under the equity method

     (813     (1,738

Changes in fair value of debt financial assets at fair value through other comprehensive income

     48,006       N/A  

Allowance for credit losses on debt financial assets at fair value through other comprehensive income

     (479     N/A  

Exchanges differences on translating foreign operations

     597       648  

Insurance finance income/(expenses) from insurance contracts issued

     (62,288     (11,057

Reinsurance finance income/(expenses) from reinsurance contracts held

     415       610  

Fair value gains/(losses) on available-for-sale financial assets

     N/A       (45,538

Less: Amount transferred to net profit from other comprehensive income

     N/A       (5,551

Other comprehensive income that will not be reclassified to profit or loss

     1,101       (176

Other comprehensive income that may not be transferred to profit or loss under the equity method

     804       (176

Changes in fair value of equity financial assets at fair value through other comprehensive income

     787       N/A  

Insurance finance income/(expenses) from insurance contracts issued

     (490     —   

Other comprehensive income attributable to non-controlling interests (net of tax)

     40       (103
  

 

 

   

8   Total comprehensive income

     23,138       (6,240
  

 

 

   

 

 

 

– Attributable to equity holders of the Company

     22,080       (7,288

– Attributable to non-controlling interests

     1,058       1,048  

 

- 20 -


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
Non-executive Directors:    Wang Junhui, Zhuo Meijuan
Independent Non-executive Directors:    Lam Chi Kuen, Zhai Haitao, Huang Yiping, Chen Jie

Beijing, China

26 October 2023

 

- 21 -


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