Financial Performance - Insurance revenue for the six months ended June 30, 2023, was HKD 54,128,830, a decrease of 3.57% from HKD 56,135,352 in the same period of 2022[4] - Profit after taxation increased to HKD 7,521,241, representing a growth of 8.93% compared to HKD 6,904,343 in the previous year[6] - Basic earnings per share attributable to ordinary shareholders rose to HKD 1.365, up from HKD 1.205, reflecting an increase of 13.27%[4] - Total comprehensive income for the period was HKD 558,127, a decline of 71.54% from HKD 1,960,990 in the prior year[6] - Interest revenue for the first half of 2023 was HKD 17,636,649, slightly down from HKD 17,857,812 in 2022, indicating a decrease of 1.23%[4] - Other investment return showed a significant improvement, reaching HKD 5,555,853 compared to a loss of HKD 5,446,702 in the same period last year[4] - The company reported a net investment result of HKD 1,628,789, a recovery from a loss of HKD 2,578,427 in the previous year[4] Assets and Liabilities - As of June 30, 2023, total assets amounted to HKD 1,422,988,843,000, an increase from HKD 1,321,590,064,000 at the end of 2022, representing a growth of approximately 7.6%[8] - Insurance contract liabilities reached HKD 1,111,997,417,000, up from HKD 1,041,941,305,000 at the end of 2022, indicating an increase of about 6.7%[10] - Financial investments at fair value through profit or loss were HKD 445,859,302,000, compared to HKD 351,026,822,000 at the end of 2022, reflecting a significant rise of approximately 27%[8] - Cash and cash equivalents increased to HKD 56,736,544,000 from HKD 42,472,429,000, marking a growth of around 33.6%[10] - The company's net assets stood at HKD 123,914,437,000, an increase from HKD 109,797,436,000 at the end of 2022, representing a growth of about 12.8%[10] - The total liabilities of the company increased to HKD 1,299,074,406,000 from HKD 1,211,792,628,000, representing a growth of approximately 7.2%[10] Equity and Reserves - The total equity of the company rose to HKD 123,914,437,000, compared to HKD 109,797,436,000 at the end of 2022, indicating an increase of approximately 12.8%[10] - The fair value reserve increased significantly to HKD 23,138,925,000, up from HKD 15,011,588,000, showing a positive shift in asset valuations[13] - The balance attributable to owners of the Company as of June 30, 2023, was HKD 82,029,932,000, reflecting a decrease from HKD 83,339,865,000 at the beginning of the year[17] - The balance of non-controlling interests increased to HKD 25,894,491,000, indicating growth in subsidiary ownership stakes[13] Cash Flow - Net cash from operating activities for the six months ended June 30, 2023, was HKD 78,171,202, an increase of 34.7% compared to HKD 58,045,908 in the same period of 2022[21] - Net cash used in investing activities increased to HKD (75,255,300) from HKD (49,458,489), reflecting a significant rise in investment outflows[21] - Net cash from financing activities rose to HKD 14,645,616, compared to HKD 3,291,130 in the previous year, indicating a strong financing position[21] Dividends and Capital Structure - Dividends declared to shareholders amounted to HKD 934,445,000 during the period, reflecting the company's commitment to returning value to shareholders[13] - The company issued perpetual subordinated capital securities totaling HKD 15,674,799,000, enhancing its capital structure[13] Accounting Standards and Compliance - The company has adopted new accounting standards effective from January 1, 2023, which may impact future financial reporting[38] - The financial statements are prepared in accordance with HKFRS, ensuring compliance with applicable disclosure requirements[24] - The Group adopted new accounting standards HKFRS 17 and HKFRS 9 starting from January 1, 2023, with no material impact on financial performance for the current and prior years[44] Insurance Contracts - Insurance contracts are classified based on whether they transfer significant insurance risk, with reinsurance contracts classified separately[44] - The Group's accounting policies now include specific definitions and classifications for insurance and reinsurance contracts[41] - The Group's insurance contracts are grouped based on similar risks and managed uniformly, with annual cohorts established for profitability assessment[65] Measurement and Recognition - The Group recognizes impairment losses in profit or loss to ensure that the carrying amount of the asset does not exceed the expected net cash inflow for the related group[91] - The measurement of insurance contracts includes future cash flows within the contract boundary, which are determined based on substantive rights and obligations[90] - The Group's contractual service margin (CSM) represents the unearned profit that will be recognized as services are provided under insurance contracts[106] Risk and Cash Flow Management - The risk adjustment for non-financial risk is determined separately and compensates for uncertainty regarding cash flow amounts and timing[105] - The Group's ability to reassess risks allows it to set prices that reflect those reassessed risks, impacting the contract boundaries[97] - The Group's cash flows from reinsurance contracts are also measured within the contract boundary based on substantive rights and obligations[94]

[Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Performance Highlights](index=2&type=section&id=Overall%20Performance%20Highlights) In H1 2023, the Group's profit attributable to shareholders grew 20.5% to HK$5.22 billion, with total assets up 7.7% to HK$1.423 trillion Key Financial Indicators for H1 2023 | Indicator | Amount | Change vs. Year-End/Prior Period | | :--- | :--- | :--- | | Profit Attributable to Shareholders | HK$5.22 billion | +20.5% | | Contractual Service Margin | HK$217.79 billion | -1.6% | | Equity Attributable to Ordinary Shareholders | HK$82.03 billion | -2.3% | | Total Assets | HK$1,423.0 billion | +7.7% | - The Group implemented a high-quality development strategy, seizing opportunities in **inclusive finance, pension finance, and green finance**, and promoting the deep integration of "insurance + healthcare and wellness"[3](index=3&type=chunk) - The Group's investment business developed steadily, with **total investment income increasing by 105.9%** year-over-year in the first half, and equity investment performance outperforming market benchmarks[8](index=8&type=chunk) - The Group continued to advance its digital transformation, launching the HKFRS 17-related systems and deepening technological innovation, such as the proprietary **"Auto Insurance Score" and "Health Guardian"** models[13](index=13&type=chunk) [Consolidated Financial Performance](index=6&type=section&id=Consolidated%20Financial%20Performance) The Group's net profit attributable to shareholders rose 20.5% to HK$5.22 billion in H1 2023, driven primarily by the life insurance business Consolidated Financial Summary for H1 2023 | Indicator | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Insurance service revenue | HK$54.13 billion | HK$56.14 billion | -3.6% | | Profit before tax | HK$7.84 billion | HK$7.07 billion | +10.9% | | Net profit attributable to shareholders | HK$5.22 billion | HK$4.33 billion | +20.5% | | Basic earnings per share | HK$1.365 | HK$1.205 | +HK$0.160 | Consolidated Balance Sheet Summary as of June 30, 2023 | Indicator | As of June 30, 2023 | As of Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Total Assets | HK$1,422.99 billion | HK$1,321.59 billion | +7.7% | | Contractual Service Margin | HK$217.79 billion | HK$221.41 billion | -1.6% | | Total Equity | HK$123.91 billion | HK$109.80 billion | +12.9% | Net Operating Profit/(Loss) by Business Segment | Business Segment | H1 2023 (HK$ million) | H1 2022 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Life insurance | 7,477.70 | 6,512.89 | +14.8% | | Domestic property and casualty insurance | 185.36 | 576.70 | -67.9% | | Overseas property and casualty insurance | 174.28 | 158.24 | +10.1% | | Reinsurance | (285.68) | (239.46) | +19.3% | | Asset management business | 92.93 | 654.10 | -85.8% | [Business Segment Analysis](index=9&type=section&id=Business%20Segment%20Analysis) The Group's business segments showed varied performance, with strong new business value growth in life insurance but underwriting losses in reinsurance [Life Insurance Business](index=9&type=section&id=Life%20Insurance%20Business) The life insurance segment saw a 28.5% increase in new business value, though the number of individual agents declined Life Insurance Business Financial Performance | Indicator | H1 2023 (HK$ million) | H1 2022 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Insurance service revenue | 31,002.11 | 32,944.59 | -5.9% | | Insurance service result | 7,637.31 | 10,316.48 | -26.0% | | Profit after tax | 7,477.70 | 6,512.89 | +14.8% | - Taiping Life's **new business value grew by 28.5%** year-over-year to RMB 3.65 billion, with new business premiums up 42.4%; premiums from the individual agent and bancassurance channels rose by 21.8% and 82.5%, respectively[5](index=5&type=chunk) - The number of individual agents at Taiping Life **decreased by 70,809**, from 391,069 at the end of 2022 to 320,260 as of June 30, 2023[39](index=39&type=chunk) Solvency Adequacy Ratio of Life Insurance Subsidiaries | Subsidiary | As of June 30, 2023 | As of Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Taiping Life | 197% | 194% | +3 ppt | | Taiping Pension | 212% | 224% | -12 ppt | | Taiping Life (HK) | 231% | 204% | +27 ppt | [Domestic Property and Casualty Insurance Business](index=15&type=section&id=Domestic%20Property%20and%20Casualty%20Insurance%20Business) The domestic P&C business reported premium growth, but its combined ratio increased to 97.6% Taiping P&C Financial Performance | Indicator | H1 2023 (HK$ million) | H1 2022 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Insurance service revenue | 16,101.57 | 16,005.86 | +0.6% | | Profit after tax | 185.36 | 576.70 | -67.9% | | Combined ratio | 97.6% | 95.2% | +2.4 ppt | - Within Taiping P&C's gross written premiums, **non-motor insurance business grew by 14.1%** year-over-year, indicating continuous optimization of the business structure[6](index=6&type=chunk)[45](index=45&type=chunk) - Taiping P&C's **comprehensive solvency adequacy ratio was 200%** as of June 30, 2023, an increase of 14 percentage points from 186% at the end of 2022[46](index=46&type=chunk) [Overseas Property and Casualty Insurance Business](index=17&type=section&id=Overseas%20Property%20and%20Casualty%20Insurance%20Business) The overseas P&C business delivered a strong overall underwriting performance, with most subsidiaries achieving profitability Combined Ratio of Overseas P&C Businesses | Company | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Taiping HK | 91.7% | 96.0% | -4.3 ppt | | Taiping Macau | 68.2% | 75.3% | -7.1 ppt | | Taiping UK | 93.5% | 91.4% | +2.1 ppt | | Taiping Singapore | 92.0% | 85.6% | +6.4 ppt | | Taiping Indonesia | 81.7% | 82.9% | -1.2 ppt | Gross Written Premiums of Overseas P&C Businesses | Company | H1 2023 (HK$ million) | H1 2022 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Taiping HK | 1,372.91 | 1,267.61 | +8.3% | | Taiping Macau | 478.80 | 494.33 | -3.1% | | Taiping UK | 214.14 | 182.05 | +17.6% | | Taiping Singapore | 405.92 | 380.72 | +6.6% | | Taiping Indonesia | 299.24 | 238.36 | +25.5% | [Reinsurance Business](index=19&type=section&id=Reinsurance%20Business) The reinsurance business experienced steady premium growth but recorded an underwriting loss with a combined ratio of 105.8% Reinsurance Business Financial Performance | Indicator | H1 2023 (HK$ million) | H1 2022 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Insurance service revenue | 4,921.02 | 4,818.03 | +2.1% | | Loss after tax | (285.68) | (239.46) | +19.3% | | Combined ratio | 105.8% | 101.4% | +4.4 ppt | - Total premiums for the reinsurance business grew by 2.3% year-over-year to HK$10.03 billion, with **life reinsurance up 9.2%** and non-life reinsurance up 0.6%[57](index=57&type=chunk)[58](index=58&type=chunk) - The comprehensive solvency adequacy ratios for Taiping Re and Taiping Re (China) were **326% and 220%**, respectively, both showing improvement from year-end 2022[59](index=59&type=chunk) [Asset Management Business](index=21&type=section&id=Asset%20Management%20Business) The asset management business saw significant growth in total investment income, driven by an increased allocation to equity assets Group Investment Income Performance | Indicator | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Total investment income | HK$23.70 billion | HK$11.51 billion | +105.9% | | Annualized net investment yield | 3.63% | 3.94% | -0.31 ppt | | Annualized total investment yield | 3.89% | 1.98% | +1.91 ppt | Assets Under Management | Item | As of June 30, 2023 (HK$ million) | As of Dec 31, 2022 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Insurance funds assets within the Group | 1,262,759.80 | 1,174,666.62 | +7.5% | | Third-party assets under management | 1,121,538.82 | 1,092,814.71 | +2.6% | - In the investment portfolio, the allocation to **fixed-income investments decreased from 75.6% to 74.8%**, while the allocation to **equity investments increased from 17.8% to 18.8%**[68](index=68&type=chunk) - The Group's debt securities portfolio maintained high credit quality, with **99.6% of domestic bond investments rated AAA** or consisting of government and policy bank bonds[69](index=69&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The Group maintained strong liquidity with HK$113.42 billion in cash and issued US$2 billion in perpetual subordinated capital securities - As of June 30, 2023, the Group's **cash and bank deposits amounted to HK$113.42 billion**[73](index=73&type=chunk) - The **comprehensive financial leverage ratio** (interest-bearing debt / (interest-bearing debt + ordinary shareholders' equity + after-tax contractual service margin)) was **27.4%**, a slight increase from 26.0% at the end of 2022[74](index=74&type=chunk) - In March 2023, the Company issued **US$2 billion of perpetual subordinated capital securities** with an initial annual interest rate of 6.4%[75](index=75&type=chunk) [Outlook](index=26&type=section&id=Outlook) The Group will continue its high-quality development strategy, focusing on key areas like inclusive and green finance while managing investment risks - **Overall strategy**: Adhere to the principle of seeking progress while maintaining stability, deepen the high-quality development strategy, and expand in "inclusive finance," "pension finance," and "green finance," while strengthening its presence in the Greater Bay Area[78](index=78&type=chunk) - **Domestic life insurance (Taiping Life)**: Focus on value growth, enhance agent recruitment and productivity, and deepen the development of the healthcare and wellness ecosystem[79](index=79&type=chunk) - **Domestic P&C insurance (Taiping P&C)**: Respond to the comprehensive auto insurance reform, increase market share in new energy vehicle insurance, and accelerate the development of non-auto lines such as agricultural and green insurance[80](index=80&type=chunk) - **Investment outlook**: China's economy is expected to operate smoothly in the second half of the year, with gradual improvement in capital market sentiment; the Group will focus on controlling portfolio volatility, managing credit risk, and enhancing investment returns[85](index=85&type=chunk) [Embedded Value of Taiping Life](index=29&type=section&id=Embedded%20Value%20of%20Taiping%20Life) Taiping Life's embedded value reached HK$254.86 billion, with the value of new business growing 28.5% in RMB terms Embedded Value of Taiping Life | Item | As of June 30, 2023 (HK$ million) | As of Dec 31, 2022 (HK$ million) | | :--- | :--- | :--- | | Adjusted net assets | 128,178 | 116,547 | | Value of in-force business | 126,678 | 126,081 | | **Embedded Value** | **254,856** | **242,627** | Value of New Business of Taiping Life | Item | H1 2023 (HK$ million) | H1 2022 (HK$ million) | | :--- | :--- | :--- | | Value of new business | 3,955 | 3,319 | - In RMB terms, the **value of new business for H1 2023 was RMB 3.65 billion**, an increase of 28.5% from RMB 2.84 billion in H1 2022[90](index=90&type=chunk) - In H1 2023, Taiping Life's overall **new business value margin was 12.2%**, with the margin for the individual agent channel at 18.6% and the bancassurance channel at 3.6%[90](index=90&type=chunk) [Condensed Consolidated Financial Statements](index=31&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Income Statement](index=31&type=section&id=Condensed%20Consolidated%20Income%20Statement) The Group's profit attributable to shareholders increased by 20.5% to HK$5.22 billion, despite a 3.6% decline in insurance service revenue Condensed Consolidated Income Statement Summary | Item (HK$ thousand) | Six months ended June 30, 2023 | Six months ended June 30, 2022 (Restated) | | :--- | :--- | :--- | | Insurance service revenue | 54,128,830 | 56,135,352 | | Insurance service result | 8,149,854 | 10,943,285 | | Investment return | 23,704,554 | 11,510,289 | | Profit before tax | 7,844,453 | 7,071,026 | | Profit after tax | 7,521,241 | 6,904,343 | | Profit attributable to shareholders of the Company | 5,220,365 | 4,332,441 | [Condensed Consolidated Balance Sheet](index=33&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2023, the Group's total assets grew by 7.7% to HK$1.423 trillion, with total equity up 12.9% Condensed Consolidated Balance Sheet Summary | Item (HK$ thousand) | As of June 30, 2023 | As of Dec 31, 2022 (Restated) | | :--- | :--- | :--- | | **Assets** | | | | Total assets | 1,422,988,843 | 1,321,590,064 | | **Liabilities** | | | | Insurance contract liabilities | 1,111,997,417 | 1,041,941,305 | | Total liabilities | 1,299,074,406 | 1,211,792,628 | | **Equity** | | | | Equity attributable to shareholders of the Company | 82,029,932 | 83,937,369 | | Total equity | 123,914,437 | 109,797,436 | [Condensed Consolidated Cash Flow Statement](index=37&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) The Group generated HK$78.17 billion in net cash from operating activities, resulting in a net increase in cash and cash equivalents Condensed Consolidated Cash Flow Statement Summary | Item (HK$ thousand) | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Net cash generated from operating activities | 78,171,202 | 58,045,908 | | Net cash used in investing activities | (75,255,300) | (49,458,489) | | Net cash generated from financing activities | 14,645,616 | 3,291,130 | | Net increase in cash and cash equivalents | 14,264,115 | 10,329,791 | | Cash and cash equivalents at June 30 | 56,736,544 | 50,467,580 | [Notes to the Financial Statements](index=38&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=38&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial statements were prepared under HKAS 34, with the first-time adoption of HKFRS 17 and HKFRS 9 from January 1, 2023 - The Group implemented **HKFRS 17 Insurance Contracts** and **HKFRS 9 Financial Instruments** (the new standards) effective January 1, 2023[2](index=2&type=chunk)[109](index=109&type=chunk) - Under the new standards, insurance contracts are classified as either having or not having direct participation features and are measured using the **general measurement model or the premium allocation approach**[112](index=112&type=chunk)[125](index=125&type=chunk)[135](index=135&type=chunk) - For financial instruments accounting, the Group applied the **classification overlay approach** for comparative information and classified financial assets as measured at amortized cost, fair value through other comprehensive income (FVTOCI), or fair value through profit or loss (FVTPL)[156](index=156&type=chunk)[159](index=159&type=chunk) [Segment Information](index=77&type=section&id=Segment%20Information) The life insurance segment was the primary profit contributor, while operations in Mainland China accounted for approximately 92% of total revenue Profit After Tax by Segment for H1 2023 | Segment | Profit after tax (HK$ thousand) | | :--- | :--- | | Life insurance | 7,477,704 | | Domestic property and casualty insurance | 185,356 | | Overseas property and casualty insurance | 174,284 | | Reinsurance | (285,679) | | Other businesses | (4,778) | Segment Assets as of June 30, 2023 | Segment | Segment assets (HK$ thousand) | | :--- | :--- | | Life insurance | 1,186,695,413 | | Domestic property and casualty insurance | 42,013,888 | | Overseas property and casualty insurance | 18,071,238 | | Reinsurance | 48,521,067 | | Other businesses | 130,658,097 | - Approximately **92% of the Group's total revenue** was derived from operations in China (excluding Hong Kong and Macau)[194](index=194&type=chunk) [Risk Management](index=109&type=section&id=Risk%20Management) The Group manages insurance and financial risks through strict underwriting, reinsurance, and active asset-liability management - **Underwriting strategy**: The Group has established strict underwriting and claims handling procedures for its life, property & casualty, and reinsurance businesses to control risks[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) - **Asset-liability management**: The objective is to match assets and liabilities on a duration basis; however, a duration mismatch exists in the life insurance business, which the Group mitigates by investing in longer-term fixed-income debt and long-term equity investments[260](index=260&type=chunk) - **Credit risk management**: The Group enforces strict credit rating requirements for its debt security investments, with the majority of domestic debt securities rated BBB or above, and prioritizes investment-grade reinsurers for its reinsurance arrangements[266](index=266&type=chunk) - **Liquidity risk management**: The Group maintains a liquidity management policy to ensure it can meet its financial obligations and holds sufficient reserves of high-quality liquid assets[271](index=271&type=chunk)

Financial Performance - Total premiums written increased by 12% year-on-year to HKD 150 billion[3] - Profit before taxation reached HKD 20 billion, reflecting a 15% increase compared to the previous year[3] - Profit attributable to owners was HK$2.797 billion, with total assets reaching HK$1,409.4 billion, up 2.2% from the previous year-end, and 11.7% in RMB terms[16] - The net operating profit for the life insurance business was HK$8,347 million, a decrease of 27.3% compared to HK$11,475 million in the previous year[104] - The net profit attributable to owners dropped by 62.8% to HK$2,796.61 million in 2022, down from HK$7,513.70 million in 2021[51] Investment Income - Investment income rose by 8% to HKD 30 billion, contributing significantly to overall profitability[3] - Net investment income for the year was HK$48.573 billion, an increase of 8.9% year-over-year[18] - The total investment income decreased by 32.0% to HK$40.024 billion in 2022, down from HK$58.837 billion in 2021[69] - The total investment yield fell by 2.04 percentage points from 5.35% in 2021 to 3.31% in 2022[69] Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in regional revenue by 2025[2] - A strategic acquisition of a regional competitor is anticipated to enhance market share by 15%[2] - New product launches in health insurance are expected to drive a 25% increase in premium income over the next fiscal year[3] Customer Growth and Policyholders - The number of policyholders grew by 10% to 5 million, demonstrating increased market penetration[3] - The number of individual customers increased to 15,743,273, up by 5.7% from 14,886,564 in 2021[100] - The number of individual agents increased to 391,069, representing a growth of 1.6% from 385,038 in 2021[100] Risk Management and Technology - The company has implemented a comprehensive risk management enhancement project, consolidating its risk management capabilities across various fields[30] - The company is investing HKD 1 billion in technology upgrades to enhance customer service and operational efficiency[2] - The Group launched innovative products such as "Taiping Health Guardian" and "Taiping Encyclopedia," contributing to a total of 110 million services provided by the intelligent technology sharing platform[46] Dividend and Financial Health - The company aims for a dividend payout ratio of 40% of net profit, reflecting confidence in future earnings growth[3] - The company reported an embedded value of HKD 200 billion, indicating strong financial health and growth potential[2] - The embedded value per share attributable to owners was HK$55.11, a decrease of 9.0% from the last year-end figure[38] Economic Outlook - In 2023, the company anticipates a stabilization and recovery of the economy, which is expected to drive the development of the insurance industry[31] - China Taiping is optimistic about the long-term sustainability of China's economy and the insurance industry's transformation and upgrading[32] Performance Metrics - The combined ratio for TPI improved by 6.4 percentage points year-over-year, achieving the best level since resuming business in China[17] - The comprehensive solvency ratio decreased to 194% in 2022 from 208% in 2021, with available capital dropping to RMB 166,142 million[130] - The Group's return on equity (ROE) decreased to 5.22% in 2022 from 9.52% in 2021, reflecting a decline of 4.30 percentage points[50]

Financial Performance - Total premium income reached HKD 265 billion, a year-on-year increase of 0.9%, and a growth of 4.6% in RMB terms[4] - Shareholders' profit attributable amounted to HKD 2.797 billion[4] - Total assets increased to HKD 1,409.4 billion, up 2.2% from the end of 2021, with an 11.7% increase in RMB terms[4] - The embedded value per share was HKD 55.11, with a 1.1% increase year-on-year, and the value in RMB terms grew by 10.4%[4] - The net investment income was HKD 48.573 billion, reflecting an 8.9% year-on-year growth[5] - Shareholders' profit attributable decreased by 62.8% to HKD 2.797 billion[13] - Profit before tax decreased by 86.3% to HKD 1,498.27 million, down from HKD 10,913.84 million in the previous year[18] - Net profit attributable to shareholders fell by 62.8% to HKD 2,796.61 million, compared to HKD 7,513.70 million in 2021[18] - Net profit after tax for 2022 was HKD 5,538,356 thousand, down from HKD 10,952,373 thousand in 2021, representing a decrease of approximately 49.5%[122] - The company's basic and diluted earnings per share for 2022 were both HKD 0.778, compared to HKD 2.091 in 2021, indicating a decline of about 62.8%[121] Investment and Asset Management - The group has cumulatively underwritten 424 major projects along the Belt and Road Initiative, providing risk protection exceeding RMB 700 billion[7] - New investments in strategic emerging industries and major livelihood construction projects amounted to RMB 53 billion during the year[7] - Investment assets reached HKD 1,218.2 billion, a year-on-year increase of 1.4%[15] - The proportion of fixed income investments rose from 76.2% in 2021 to 76.7% in 2022, while equity investments decreased from 18.3% to 17.1%[26] - Third-party asset management reached HKD 1,092.8 billion, reflecting a growth of 5.3% compared to the previous year[33] - The asset management business reported a management fee income of HKD 1,882.77 million in 2022, down 18.6% from HKD 2,311.90 million in 2021[82] - The operating profit of the asset management business increased by 29.4% to HKD 961.42 million in 2022, compared to HKD 743.00 million in 2021[83] - The company maintained a stable equity asset allocation ratio while increasing fixed income asset allocation to enhance stable returns[23] Insurance Operations - The life insurance premium income grew by 3.6%, outperforming the market, with the individual insurance premium reaching a historical high[4] - New individual insurance premium increased by 20.0%, with personal insurance new premium up by 28.6%[13] - Life insurance operating profit dropped by 46.4% to HKD 5,958.27 million from HKD 11,115.59 million in 2021[20] - The first-year premium income for individual insurance was HKD 17,633.37 million in 2022, down from HKD 21,730.46 million in 2021, a decrease of 18.7%[46] - The premium income from short-term savings products accounted for 35.0% of total first-year premiums in 2022, up from 25.0% in 2021[47] - The premium income from traditional life insurance increased to HKD 51,389.11 million in 2022, representing 28.7% of total premiums, compared to 19.2% in 2021[49] Solvency and Financial Health - The comprehensive solvency adequacy ratio was 194% as of December 31, 2022, down from 208% in 2021[53] - The solvency ratio for Taiping Pension was 224% as of December 31, 2022, down from 256% in 2021[64] - The comprehensive solvency ratio as of December 31, 2022, was 186%, down from 216% in 2021, with actual capital at RMB 9.521 billion compared to RMB 9.380 billion in 2021[72] - The total liabilities of life insurance contracts, net of reinsurance, decreased by 12.4% to HKD 122,106.06 million in 2022 from HKD 139,425.65 million in 2021[35] Strategic Initiatives and Future Outlook - The company aims for high-quality development in 2023, focusing on risk prevention and innovation[11] - The company plans to actively develop innovative green insurance products and enhance pricing strategies in the property insurance sector[92] - The company aims to enhance digital transformation and improve customer management capabilities in 2023[91] - The group aims to enhance its investment business quality by focusing on healthcare, retirement, and other industry layouts[95] - The global economic growth is projected to slow to 2.2% in 2023, impacting corporate profit growth and asset valuations[95] Changes in Financial Position - The total equity attributable to shareholders decreased to HKD 98,686,180 thousand in 2022 from HKD 113,455,960 thousand in 2021, reflecting a decline of approximately 13.0%[124] - The company's total liabilities were HKD 1,310,679,386 thousand in 2022, up from HKD 1,265,186,014 thousand in 2021, representing an increase of approximately 3.6%[124] - The total cash and cash equivalents as of December 31, 2022, stood at HKD 39,945,905, an increase from HKD 31,306,390 in 2021, indicating a stronger financial position[132] Operational Efficiency - The total employee cost for the year was HKD 15.79 billion, down 12.3% from HKD 18.00 billion in 2021, with a total employee count of 68,386[89] - The company reported a significant increase in financial expenses, which rose to HKD 3,123,440 from HKD 2,381,532 in 2021[129] - The cash generated from operating activities was HKD 95,694,955, compared to HKD 101,149,940 in the previous year, showing a decrease of about 5.4%[130] Accounting and Reporting Standards - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, requiring management to make estimates and assumptions[1] - The company recognizes policyholder benefits, including maturity, annuity, and claims, as expenses upon payment or notification[147] - The company conducts liability adequacy tests at each reporting period to ensure that insurance liabilities are sufficient[144]

Financial Performance - Total premiums written and policy fees for the six months ended June 30, 2022, were HKD 160,363,346, a decrease from HKD 156,971,245 in the same period of 2021[10] - Net earned premiums and policy fees amounted to HKD 150,878,007, compared to HKD 146,668,805 in the previous year, reflecting an increase of approximately 2.9%[10] - Profit before taxation was HKD 2,206,840, down from HKD 7,726,625 in the prior year, indicating a decline of approximately 71.5%[10] - Profit after taxation decreased to HKD 4,016,124 from HKD 7,074,257, a reduction of around 43.5%[10] - Earnings per share attributable to the owners of the Company were HKD 0.754, down from HKD 1.423 in the same period last year, reflecting a decline of approximately 47%[10] - Total income for the six months ended June 30, 2022, was HKD 174,441,559, compared to HKD 182,434,992 in the previous year, showing a decrease of about 4.5%[10] - Total comprehensive income for the period attributable to owners of the Company was $(2,346,882), compared to $3,765,437 in the previous year, indicating a significant decline[13] - Profit after taxation for the six months ended June 30, 2022, was $4,016,124, a decrease of 43.5% compared to $7,074,257 for the same period in 2021[13] - For the six months ended June 30, 2022, the profit attributable to owners of the Company was $2,708,661,000, a decrease of 47.1% compared to $5,112,655,000 for the same period in 2021[126] Investment Income - Net investment income increased to HKD 24,285,950 from HKD 21,083,451, representing a growth of about 15.5% year-over-year[10] - The Group reported net unrealized investment gains of HKD 521,271 for the six months ended June 30, 2022, compared to net unrealized investment losses of HKD 13,411,581 for the same period in 2021[92] - The net realized investment gains on debt securities for the six months ended June 30, 2022, were $(187,502), a decrease from $191,524 in 2021, indicating a significant decline[99] - The net unrealized investment losses on debt securities amounted to $(608,969) for the first half of 2022, compared to $(178,205) in the same period of 2021, reflecting a worsening situation[102] - Total dividend income from equity securities for the first half of 2022 reached $3,104,395, compared to $2,609,342 in 2021, marking an increase of about 19%[97] Assets and Liabilities - Total assets amounted to $1,442,711,858 as of June 30, 2022, compared to $1,378,641,974 at December 31, 2021, representing a growth of 4.6%[16] - Life insurance contract liabilities increased to $935,952,918 as of June 30, 2022, up from $887,816,852 at December 31, 2021, reflecting a rise of 5.4%[16] - Net assets decreased to $108,240,356 as of June 30, 2022, from $113,455,960 at December 31, 2021, indicating a decline of 4.0%[18] - The Company’s total equity decreased to $108,240,356 as of June 30, 2022, from $113,455,960 at December 31, 2021, reflecting a decrease of 4.6%[18] - The total liabilities for life insurance contracts were HKD 935,952,918, reflecting the company's commitment to policyholders[65] Cash Flow - Net cash from operating activities decreased to HKD 58,045,908, down 22% from HKD 74,304,397 in the same period last year[40] - Net cash used in investing activities improved to HKD (49,306,006), a reduction of 6% compared to HKD (52,874,962) in the previous year[40] - Net cash from financing activities increased to HKD 3,291,130, contrasting with a net cash outflow of HKD (2,669,637) in the prior period[40] - The total cash and cash equivalents at 30 June 2022 stood at HKD 50,428,179, slightly up from HKD 50,269,986 a year earlier[40] Shareholder Information - Dividends declared to shareholders for the period were HKD 1,437,607,000[29] - A final cash dividend of $0.46 per share was proposed, amounting to $1,653,249,000, an increase from $1,437,607,000 in the previous year[122] - The balance at January 1, 2022, was HKD 40,771,408,000 in share capital[36] - The weighted average number of ordinary shares remained constant at 3,594,018,538 for both periods[126] Operational Highlights - The share of results of associates and joint ventures increased to HKD 323,311 from HKD 77,351, marking a significant improvement[10] - The company is focusing on expanding its market presence and enhancing product offerings to drive future growth[56] - The overall financial performance suggests a strategic focus on expanding both domestic and overseas insurance markets, with a balanced approach to risk management and profitability[113] Accounting and Compliance - The financial statements have been prepared in accordance with the applicable disclosure requirements of the Listing Rules and HKAS 34[44] - The Group continues to apply the temporary exemption from HKFRS 9, allowing the use of HKAS 39 for annual periods beginning before January 1, 2023[52] - The company has not early adopted any new accounting standards, interpretations, or amendments that are effective as of 1 January 2022[48]

Financial Performance - Total premiums written and policy fees for the six months ended June 30, 2021, were HK$156,971,245, an increase from HK$137,074,268 in the same period of 2020[8]. - Net premiums written and policy fees reached HK$150,037,791, compared to HK$130,192,061 in the previous year, reflecting a growth of approximately 15%[8]. - Net earned premiums and policy fees amounted to HK$146,668,805, up from HK$127,856,061, indicating a year-over-year increase of about 15%[8]. - Total income for the period was HK$182,434,992, compared to HK$151,251,789 in the prior year, representing a growth of approximately 21%[8]. - Profit before taxation was HK$7,726,625, an increase from HK$6,843,730, showing a growth of around 13%[8]. - Profit after taxation reached HK$7,074,257, compared to HK$5,078,628 in the same period last year, marking an increase of approximately 39%[8]. - Earnings per share attributable to the owners of the Company were HK$1.423, significantly higher than HK$0.800 in the previous year, reflecting an increase of about 78%[8]. - Other income for the period was HK$3,392,847, compared to HK$2,321,102 in the previous year, indicating a growth of approximately 46%[8]. - The company reported net investment income of HK$21,083,451, up from HK$16,907,861, representing an increase of about 24%[8]. - Profit after taxation for the six months ended June 30, 2021, was HKD 7,074,257, compared to HKD 5,078,628 for the same period in 2020, representing a 39.4% increase[11]. Assets and Liabilities - Fixed assets increased to HKD 29,926,607 as of June 30, 2021, from HKD 23,022,546 at the end of 2020, reflecting a growth of 30.5%[14]. - Investment properties rose to HKD 22,019,568, up from HKD 18,792,109, marking an increase of 17.8%[14]. - Cash and cash equivalents significantly increased to HKD 50,269,986 from HKD 31,306,390, a growth of 60.7%[14]. - Total liabilities amounted to HKD 1,299,011,801, compared to HKD 1,169,007,966 at the end of 2020, representing an increase of 11.1%[14]. - Life insurance contract liabilities reached HKD 816,876,090, up from HKD 706,785,380, indicating a rise of 15.6%[14]. - The net assets of the company were HKD 117,514,706 as of June 30, 2021, slightly up from HKD 116,613,059 at the end of 2020, showing a marginal increase of 0.8%[16]. Investment Performance - The company reported a revaluation gain of HKD 77,151 during the period, compared to HKD 3,459 in the previous year[11]. - The exchange differences on translation of foreign operations resulted in a gain of HKD 3,395, contrasting with a loss of HKD 80,898 in the prior year[11]. - The company reported net realized investment gains of HKD 13,411,581,000, reflecting strong performance in investment activities[59]. - The total income from debt securities was HKD 18,365,963,000, showcasing the company's strong position in fixed-income investments[62]. - The company experienced a net rental income receivable from investment properties of HKD 393,206,000, indicating effective asset management[62]. Cash Flow and Dividends - For the six months ended June 30, 2021, the net cash from operating activities was HKD 74,304,397, a decrease of 1.83% compared to HKD 75,693,054 for the same period in 2020[44]. - The net cash used in investing activities was HKD (52,874,962), which is a significant decrease of 24.87% from HKD (70,322,826) in the previous year[44]. - The company has not declared dividends for the period, as indicated in the financial statements[41]. - The final cash dividend proposed was $0.40 per share, amounting to $1,437,607,000, compared to $1,078,206,000 for the previous year[129]. Strategic Focus and Future Outlook - The company aims to enhance its market position through strategic investments and potential acquisitions in the insurance sector[74]. - The company is focusing on expanding its overseas property and casualty insurance operations to enhance revenue streams[63]. - The overall financial performance indicates a robust growth trajectory, with a focus on improving operational efficiency and expanding market share in both domestic and overseas markets[116].

Financial Performance - Total premiums written and policy fees for the six months ended June 30, 2020, amounted to HKD 137,074 million, a decrease of 1.3% from HKD 138,923 million in the same period of 2019[10]. - Net earned premiums and policy fees were HKD 127,856 million, down from HKD 129,507 million, reflecting a decrease of 1.3% year-on-year[10]. - Total income for the period was HKD 151,252 million, an increase of 2.2% compared to HKD 147,624 million in the previous year[10]. - Profit before taxation was HKD 6,844 million, a decrease of 23.3% from HKD 8,926 million in the same period of 2019[10]. - Profit after taxation was HKD 5,079 million, down 44.5% from HKD 9,083 million year-on-year[10]. - Earnings per share attributable to the owners of the Company were HKD 0.800, a decrease of 56.5% compared to HKD 1.841 in the same period of 2019[10]. - Total comprehensive income for the period was HKD 5,336,636, down 63.4% from HKD 14,551,926 in the previous year[12]. - Profit after taxation for the six months ended June 30, 2020, was HKD 5,078,628, a decrease of 44.4% compared to HKD 9,082,716 for the same period in 2019[12]. Investment Performance - Net investment income increased to HKD 16,908 million, compared to HKD 14,996 million in the previous year, representing a growth of 12.7%[10]. - The company reported a net unrealized investment gain of HKD 6,756,488, indicating positive market conditions for investments[61]. - Net realized investment gains for the period totaled HKD 6,756,488, showcasing strong performance in investment activities[67]. - The company reported net unrealized investment losses of HKD 2,589,723, reflecting market volatility impacting asset valuations[67]. - Interest income from loans and receivables amounted to HKD 3,433,404,000, representing a significant contribution to net investment income[63]. Expenses and Costs - Administrative and other expenses decreased to HKD 14,941 million from HKD 16,869 million, a reduction of 11.5%[10]. - The company reported a total of HKD 80,810,407 in life insurance contract liabilities, net of reinsurance, for the six months ended June 30, 2020[117]. - Staff costs, including directors' remuneration, were HKD 7,790,539 for the first half of 2020, down from HKD 8,585,547 in the same period of 2019, representing a decrease of about 9.3%[119]. - The total reinsurance commission and handling fee income was HKD (1,478,316) for the six months ended June 30, 2020, compared to HKD (1,412,498) in the same period of 2019, showing a slight increase in reinsurance costs[115]. Assets and Liabilities - The total assets increased to HKD 78,486,734 from HKD 76,307,604, showing growth in the company's financial position[26]. - Life insurance contract liabilities rose to HKD 605,580,302, an increase of 13.3% from HKD 534,557,125 at the end of 2019[15]. - The company's total equity attributable to owners was HKD 97,272,903, an increase of 3.3% from HKD 94,056,964 at the end of 2019[17]. - The total liabilities for the company were HKD 825,363,215,000, with life insurance contract liabilities amounting to HKD 534,557,125,000[84]. Cash Flow - Net cash from operating activities for the six months ended June 30, 2020, was HKD 75,693,054, an increase from HKD 60,967,082 in the same period of 2019, representing a growth of approximately 24.5%[43]. - The total cash and cash equivalents at June 30, 2020, amounted to HKD 31,016,156, up from HKD 27,083,272 at the end of June 2019, reflecting an increase of about 14.3%[43]. - Cash and cash equivalents stood at $31,016,156 as of June 30, 2020, compared to $27,817,656 as of December 31, 2019, indicating an increase of 11.4%[166]. Strategic Initiatives - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[12]. - The company continues to focus on enhancing its digital capabilities and improving customer engagement strategies[12]. - The company reported an acquisition of additional interest in a subsidiary, indicating ongoing strategic investments[26]. Regulatory and Compliance - The Group's financial statements are prepared based on historical cost, with certain assets and liabilities stated at fair value, including investment properties and securities[49]. - The Group continues to apply a temporary exemption from HKFRS 9, allowing the use of HKAS 39 for annual periods beginning before January 1, 2021, due to its predominantly insurance-related activities[56]. - The enterprise income tax rate for domestic companies in the PRC remains at 25%[8]. Shareholder Returns - Dividends declared to shareholders amounted to HKD 6,126,973, reflecting a positive return to investors[26]. - The final cash dividend proposed on 27 March 2020 was $0.30 per share, totaling $1,078,206,000, compared to $0.10 per share and $359,402,000 in 2019[127]. - The company declared dividends totaling HKD 1,078,206,000 to shareholders during the period[190].

在 中国太平 CHINA TAIPING 201 Annual Report 股份代碼 Stock Code: HK 00966 與您共 您分擔風險 E Manage Your Risks Enjoy Taiping Service A INFORERS Contents 目錄 Corporate Information 公司資料 4 Simplified Ownership Structure 簡明公司架構 6 Chairman's Statement 董事長致辭 8 Management Review and Analysis 管理層回顧和分析 16 Independent Actuaries Report on Review of Embedded Value Information 關於內含價值信息的獨立精算師審閱報告 62 Embedded Value 內含價值 64 Biographical Details of Directors, Senior Management and Company Secretary 董事、高級管理層及公司秘書之履歷 74 Report of the Director ...