Financial Performance - Net profit attributable to shareholders decreased by 9.3% to RMB 20,644 million from RMB 22,770 million in the same period last year[2] - Operating revenue increased by 14.4% to RMB 120,970 million compared to RMB 105,713 million in the same period last year[2] - Basic and diluted earnings per share decreased by 9.3% to RMB 0.73 from RMB 0.81 in the same period last year[2] - The weighted average return on equity decreased by 1.70 percentage points to 4.31% from 6.01% in the previous year[2] - The total profit for the group was RMB 26,771 million, compared to RMB 25,653 million in Q1 2023, indicating a year-over-year increase of 4.4%[17] - The group's operating profit was RMB 26,868 million, an increase from RMB 25,740 million in the previous year, marking a growth of 4.4%[17] - The total comprehensive income attributable to shareholders of the parent company was RMB 3,286 million, down from RMB 26,155 million in Q1 2023[19] Assets and Liabilities - Total assets reached RMB 6,070,843 million, an increase of 7.4% compared to the end of the previous year[2] - The total liabilities of the group as of March 31, 2024, were RMB 5,580,095 million, compared to RMB 5,316,011 million as of December 31, 2023, reflecting an increase of 4.9%[15] - The insurance contract liabilities reached RMB 5,241,249 million, up from RMB 4,859,175 million, indicating an increase of 7.9%[15] - The company's total assets as of January 1, 2024, are RMB 5,511,324 million, an increase of RMB 154,325 million compared to December 31, 2023[29] - Total liabilities as of January 1, 2024, amount to RMB 5,316,011 million, a slight decrease of RMB 959 million from December 31, 2023[28] Cash Flow - The net cash flow from operating activities was RMB 183,759 million, reflecting a 4.4% increase from RMB 175,980 million in the previous year[2] - In Q1 2024, the company generated net cash flow from operating activities of RMB 183,759 million, an increase from RMB 175,980 million in Q1 2023, representing a growth of approximately 4.5%[21] - Total cash inflow from investment activities was RMB 572,600 million in Q1 2024, compared to RMB 406,307 million in Q1 2023, marking an increase of about 40.9%[23] - The net cash flow from financing activities in Q1 2024 was negative RMB 77,644 million, a decline from negative RMB 65,283 million in Q1 2023, indicating a worsening of approximately 18.2%[25] - The total cash and cash equivalents at the end of Q1 2024 reached RMB 254,217 million, compared to RMB 172,842 million at the end of Q1 2023, showing an increase of approximately 47.0%[25] Insurance Performance - In Q1 2024, total insurance premiums reached RMB 337.64 billion, a year-on-year increase of 3.2% from RMB 327.22 billion in Q1 2023[12] - New single premiums amounted to RMB 112.44 billion, down 4.4% from RMB 117.67 billion in the same period last year[12] - First-year regular premiums were RMB 74.83 billion, an increase of 4.7% compared to RMB 71.48 billion in Q1 2023[12] - The proportion of first-year regular premiums for ten years and above reached 33.67%, up 5.57 percentage points from the previous year[10] - Insurance service revenue was RMB 53,773 million, up from RMB 47,183 million, reflecting a growth of 14.4% year-over-year[16] Investment Performance - Total investment income for Q1 2024 was RMB 64.66 billion, a year-on-year increase of 7.2%[11] - Net investment income was RMB 42.68 billion, showing a slight decline of 0.1% year-on-year[11] - Investment income decreased to RMB 5,464 million from RMB 54,338 million, reflecting a substantial decline[16] - The company's long-term equity investments increased to RMB 266,428 million from RMB 258,872 million, a growth of 2.4%[14] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 131,444, with the largest shareholder holding 68.37%[6] - Shareholders' equity attributable to the parent company increased by 46.6% to RMB 480,406 million from RMB 327,784 million at the end of the previous year[2] - The company's equity attributable to shareholders increased to RMB 480,406 million from RMB 327,784 million, showing a substantial growth of 46.5%[15] Accounting Standards - The company implemented new accounting standards for insurance contracts and financial instruments starting January 1, 2024, affecting the presentation of comparative period information[1] - The company will implement new accounting standards for insurance contracts and financial instruments starting January 1, 2024, with a transition date of January 1, 2022, affecting the comparative data[13] - The company has disclosed the new balance sheet as of January 1, 2024, reflecting the impact of the new accounting standards[13]

Company Overview - As of December 31, 2023, China Life Insurance Company had approximately 328 million valid long-term personal and group life insurance policies, annuity contracts, and long-term health insurance policies[3]. - The company is recognized as one of the largest institutional investors in China, with total assets ranking first in the domestic life insurance industry[8]. - In 2023, China Life Insurance was ranked 62nd in the "Forbes Global 2000" list and 12th in the "Fortune China 500" list[9]. - The company has a professional management team with extensive experience in the domestic life insurance market, ensuring stable operations[8]. Financial Performance - Total revenue for 2023 was RMB 344,746 million, a decrease of 7.0% from RMB 370,861 million in 2022[13]. - Profit before tax for 2023 was RMB 44,576 million, down 36.4% from RMB 70,060 million in 2022[13]. - Net profit attributable to shareholders for 2023 was RMB 46,181 million, a decline of 30.7% compared to RMB 66,680 million in 2022[13]. - Total assets as of December 31, 2023, reached RMB 5,802,086 million, reflecting a 15.8% increase from RMB 5,010,068 million in 2022[13]. - Total liabilities increased to RMB 5,315,052 million, up 14.7% from RMB 4,635,095 million in 2022[13]. - Shareholders' equity attributable to the company was RMB 477,093 million, a rise of 30.3% from RMB 366,021 million in 2022[13]. - Basic and diluted earnings per share for 2023 were RMB 1.63, down 30.7% from RMB 2.36 in 2022[13]. - The weighted average return on equity decreased to 9.65%, down 7.61 percentage points from 17.26% in 2022[13]. - The total investment return rate for 2023 was 2.43%, down 1.47 percentage points from 3.90% in 2022[13]. Premium Income and Business Growth - Total premium income reached a historical high, with new business value achieving double-digit growth, solidifying the company's leading position in the industry[20]. - Total premium income for 2023 reached RMB 641.38 billion, a year-on-year increase of 4.3% compared to RMB 615.19 billion in 2022[28]. - New premium amounted to RMB 210.81 billion, up 14.1% year-on-year[24]. - First-year regular premium was RMB 112.57 billion, increasing by 16.7% year-on-year[24]. - The one-year new business value was RMB 36.86 billion, growing by 11.9% compared to the same period in 2022[24]. - The individual insurance segment premium income was RMB 501.58 billion, up 1.9% from RMB 492.44 billion in 2022, with first-year regular premium income growing by 12.6% to RMB 91.81 billion[30]. Technological Innovation and Digital Transformation - China Life Insurance has established a digital operation service system focused on customer experience, enhancing service quality and efficiency[8]. - The company is committed to technological innovation, building a digital insurance ecosystem to support comprehensive digital transformation[8]. - The company has implemented a digital risk control system based on big data analysis, enhancing the identification and monitoring of key business risks[59]. - The company has developed a real-time data service platform with PB-level scale, which won the Capital Financial Innovation Achievement Special Award[59]. Customer Focus and Service Quality - The company emphasizes a customer-centric approach, aiming to provide efficient and high-quality services to enhance customer satisfaction[8]. - The average claim processing time has been reduced to 0.38 days, with a claim approval rate of 99.7%[60]. - The company maintained a policy retention rate of 90.40% for 14 months, up from 83.00% in 2022[24]. - The number of VIP customers and service interactions increased by 11.9% and 26.0% respectively[60]. Investment and Asset Management - The company actively allocated long-term interest bonds and high-grade credit bonds to stabilize its fixed-income investments amid a low interest rate environment[43]. - The company maintained a high-quality credit investment portfolio, with over 98% of credit bonds rated AAA and over 99% of debt-type financial products rated AAA[47]. - The company's insurance contract liabilities totaled RMB 4,859.18 billion, an increase of 13.9% from RMB 4,266.95 billion at the end of 2022, primarily due to new and renewal insurance business[49]. Corporate Governance and Compliance - The company emphasizes the importance of corporate governance and transparency in its operations, as reflected in its detailed reporting on executive compensation and board composition[146]. - The board of directors consists of 8 members, including 2 executive directors, 2 non-executive directors, and 4 independent directors, meeting the requirement of at least 3 independent directors[185]. - The company has established a performance management mechanism that aligns with strategic goals and emphasizes employee development through a comprehensive training system[108]. - The company has complied with the disclosure requirements of the Stock Exchange regarding related party transactions[93]. Social Responsibility and ESG Initiatives - The company has been recognized as a leading enterprise in ESG innovation, highlighting its commitment to social responsibility[19]. - The company has integrated ESG factors into its investment management practices, achieving a green investment scale of RMB 462.788 billion by the end of 2023[102]. - The company has donated RMB 36 million to the China Life Charity Foundation in 2023, supporting various public welfare initiatives[104]. - The company deployed 980 personnel to assist in rural poverty alleviation, managing 1,171 assistance points and investing RMB 33.66 million throughout the year[105]. Future Outlook and Strategic Initiatives - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by market expansion strategies[1]. - The company is investing in new product development, with a budget allocation of $200 million for R&D in innovative technologies[1]. - The company aims to enhance service quality, promote integration, and reduce costs as part of its strategic plan for 2024[62]. - The company plans to issue capital replenishment bonds totaling up to RMB 35 billion, subject to market conditions and regulatory approval[98].

Core Viewpoint - The five major listed insurance companies in A-shares reported a total premium income of 10,664.23 billion yuan in the first quarter, reflecting a year-on-year growth of 0.96%, indicating a recovery trend in the insurance sector after a previous decline [1][2]. Group 1: Premium Income Performance - The five major insurance companies, namely China Life, China Pacific, China Ping An, China Property, and New China Life, achieved a total premium income exceeding 10 trillion yuan, marking a return to positive growth after two months of negative performance [2]. - Among these companies, China Life led with a premium income of 3,376 billion yuan, up 3.2% year-on-year, while China Ping An followed with 2,644.22 billion yuan, a 1.6% increase [2]. - The life insurance segment faced pressure, with only China Life and Ping An Life showing positive growth, the latter achieving a premium income of 1,733.02 billion yuan, up 0.9% [2]. Group 2: Property Insurance Growth - In contrast to the mixed performance in life insurance, the property insurance sector continued to show comprehensive growth, with total premium income from China Pacific Property, Ping An Property, and China Property reaching 3,155.44 billion yuan, a 4.4% increase [2]. - Specifically, China Pacific Property reported a premium income of 624.91 billion yuan, up 8.6% [2]. - The main insurance products, particularly auto insurance, also saw growth, with China Property and Ping An Property reporting premium incomes of 692.40 billion yuan and 517.98 billion yuan, respectively, reflecting year-on-year increases of 1.92% and 3.54% [2]. Group 3: Market Outlook and Trends - The stock performance of insurance companies improved significantly, with major stocks rising over 3% on April 18, indicating a positive market sentiment driven by policy support and the return to positive premium growth [3]. - Analysts suggest that the insurance sector is expected to maintain a stable growth trajectory throughout the year, influenced by economic recovery and increased consumer demand [4]. - However, challenges such as intensified market competition, regulatory adjustments, and technological innovations necessitate continuous strategic adjustments and risk management by insurance companies to ensure sustainable development [4].

Investment Rating - The report maintains a BUY rating for China Life, with a new target price set at HK$13.7, implying a potential upside of 47.2% from the current price of HK$9.31 [2][4][16]. Core Insights - China Life reported a full-year net profit attributable to shareholders of RMB 46.2 billion, a decrease of 30.7% year-over-year, but the net loss in 4Q23 significantly narrowed to RMB 610 million from a loss of RMB 10.6 billion in 3Q23 [2][6]. - The company achieved a low-teen growth in Value of New Business (VNB), increasing by 11.9% year-over-year to RMB 36.9 billion, despite revised Economic Value (EV) assumptions [2][6]. - The insurer's insurance revenue saw a strong rebound, growing by 32.6% in the second half of 2023, supported by a release of RMB 44.1 billion in contractual service margin [2][6]. Summary by Sections Financial Performance - For FY23, China Life's net profit was RMB 46.2 billion, with a net profit of RMB 10.6 billion in 4Q23, reflecting a significant improvement from the previous quarter [2][6]. - The company reported a total investment yield of 2.43% and a net investment yield of 3.70% by the end of 2023, both showing a decline compared to the previous year [2][6]. VNB and EV Growth - The VNB for FY23 was RMB 36.9 billion, reflecting an 11.9% increase year-over-year, while the EV grew by 5.6% to RMB 1.26 trillion [2][6]. - The report indicates that the revisions in EV assumptions had a limited impact on VNB growth, with the long-term investment return revised down to 4.5% [2][6]. Investment Strategy - The report anticipates a positive turnaround in net investment results in 1H24, driven by improved index performances and a higher allocation to bonds [2][6]. - The target price adjustment reflects a new valuation approach based on P/EV and DDM, with the new target price of HK$13.7 implying a P/EV of 0.3x for FY24E [2][6].

Core Viewpoint - The five major listed insurance companies in A-shares reported a significant decline in investment income and net profit for 2023, with a total investment income of 384.47 billion yuan, down 15.24% year-on-year, and a combined net profit of 165.52 billion yuan, down 23.25% year-on-year [1][2][4]. Investment Income Summary - The total investment income for the five major insurance companies was 384.47 billion yuan in 2023, compared to 453.58 billion yuan in 2022, reflecting a year-on-year decrease of 15.24% [2][3]. - Individual company performances in terms of investment income were as follows: - China Life: 141.97 billion yuan, down 24.38% from 187.75 billion yuan - Ping An: 123.90 billion yuan, up 32.8% from 93.31 billion yuan - China Pacific: 52.24 billion yuan, down 28.3% from 72.85 billion yuan - China Property: 44.12 billion yuan, down 19.7% from 54.94 billion yuan - New China Life: 22.25 billion yuan, down 50.25% from 44.73 billion yuan [3]. Net Profit Summary - The combined net profit for the five major insurance companies was 165.52 billion yuan in 2023, down 23.25% from the previous year [1][2]. - Breakdown of net profit by company: - Ping An: 85.67 billion yuan, down 22.83% - China Life: 21.11 billion yuan, down 34.2% - China Pacific: 27.25 billion yuan, down 27.1% - New China Life: 8.71 billion yuan, down 11.3% - China Property: 22.77 billion yuan, down 10.2% [2]. Investment Yield Analysis - The total investment yield for the five major insurance companies ranged from 1.8% to 3.3%, significantly lower than the previous year's range of 2.4% to 4.6% [5]. - Individual investment yields were as follows: - China Property: 3.3%, down 1.3 percentage points - New China Life: 1.8%, down 2.5 percentage points - China Pacific: 2.6%, down 1.5 percentage points - China Life: 2.68%, down 1.26 percentage points - Ping An: 3%, up 0.6 percentage points [5]. Market Outlook and Investment Strategies - Despite the decline in investment income and yields, the management of listed insurance companies expressed optimism for the investment market in 2024, anticipating a significant improvement in the stock market compared to the previous two years [6]. - Companies plan to focus on long-duration fixed income assets, high-dividend stocks, and alternative investments to optimize their asset allocation and manage risks effectively [6].

Central Huijin's ETF Investments - Central Huijin Investment Company announced its purchase of exchange-traded funds (ETFs) on October 23, 2022, and plans to continue increasing its holdings [2][3] - As of the end of 2023, Central Huijin's holdings in various ETFs have significantly increased, with the number of shares in the Huaxia SSE 50 ETF rising from approximately 6.7 billion shares in mid-2023 to about 12.4 billion shares by year-end [3][4] - The Huaxia CSI 300 ETF saw Central Huijin's holdings grow from 1.8 billion shares to 2.9 billion shares during the same period [3][4] - The Jiashi CSI 300 ETF's holdings surged from 80 million shares to 2.7 billion shares by the end of 2023 [3][4] Central Huijin Asset Management - Central Huijin Asset Management Company also increased its ETF holdings, with its share in the Jiashi CSI 300 ETF rising from 604 million shares in mid-2023 to 628 million shares by year-end [5][6] Insurance Institutions' Buying Activity - Several insurance institutions, including China Life Insurance Company, have been actively purchasing ETFs, with reported increases exceeding 100 million shares [8][9] - China Life Insurance Company appeared in the top ten holders of 23 funds, with over half of these funds seeing increased holdings [9] Specific ETF Holdings by China Life - As of the end of 2023, China Life's holdings in the Huaxia CSI Innovation and Entrepreneurship 50 ETF reached approximately 1.73 million shares, an increase of 1.27 million shares [9] - The company also increased its holdings in the Huaxia SSE Science and Technology Innovation Board 50 ETF by 46,421 shares [9]

Financial Performance - Total revenue for 2023 was RMB 344,746 million, a decrease of 7.0% from RMB 370,861 million in 2022[7]. - Pre-tax profit for 2023 was RMB 44,576 million, down 36.4% from RMB 70,060 million in 2022[7]. - Net profit attributable to shareholders for 2023 was RMB 46,181 million, a decline of 30.7% compared to RMB 66,680 million in 2022[7]. - Earnings per share (basic and diluted) for 2023 was RMB 1.63, down 30.7% from RMB 2.36 in 2022[7]. - Return on equity (ROE) for 2023 was 9.65%, a decrease of 7.61 percentage points from 17.26% in 2022[7]. - The company's total investment return for 2023 was 2.43%, down 1.47 percentage points from 3.90% in 2022[7]. - The total comprehensive income attributable to shareholders for 2023 was RMB 24,440 million, compared to a loss of RMB 2,577 million in 2022[53]. - The total financial expenses and credit impairment losses for 2023 amounted to RMB 5,308 million, compared to RMB 4,863 million in 2022[52]. Assets and Liabilities - Total assets as of December 31, 2023, reached RMB 5,802,086 million, an increase of 15.8% from RMB 5,010,068 million in 2022[7]. - Total liabilities as of December 31, 2023, amounted to RMB 5,315,052 million, up 14.7% from RMB 4,635,095 million in 2022[7]. - Shareholders' equity attributable to the company as of December 31, 2023, was RMB 477,093 million, an increase of 30.3% from RMB 366,021 million in 2022[7]. - The company's total liabilities to equity ratio improved to 11.1 in 2023 from 12.4 in 2022, indicating a stronger equity position relative to liabilities[80]. Premiums and Insurance Business - Total premium income was RMB 641.38 billion, an increase of 4.3% year-on-year, achieving a historical high[12]. - The total premium income for life insurance business reached RMB 512.62 billion in 2023, a year-on-year increase of 5.6%[17]. - The first-year premium income for life insurance was RMB 130.84 billion, up from RMB 105.29 billion in 2022, reflecting a significant growth[16]. - The individual insurance segment generated total premiums of RMB 501.58 billion, an increase of 1.9% year-on-year[18]. - The new business value for the individual insurance segment was RMB 34.65 billion, representing a year-on-year increase of 10.4%[20]. Investment Activities - The company achieved a net investment income of RMB 185,866 million in 2023, with a net investment yield of 3.70%[35]. - Total investment income for 2023 was RMB 123,082 million, resulting in a total investment yield of 2.43%[34]. - The company reported a decrease in total investment income from RMB 176,277 million in 2022 to RMB 123,082 million in 2023[34]. - The company maintained a strong asset quality, with over 98% of credit bonds rated AAA and over 99% of credit-type financial products rated AAA[36]. Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 4.30 per 10 shares for the 2023 fiscal year, subject to shareholder approval[2]. - The company has cumulatively distributed over RMB 190 billion in dividends since its listing, emphasizing its commitment to investor returns[5]. - The total cash dividends received from China Unicom for the mid-year 2023 distribution amounted to RMB 254 million[62]. Governance and Strategy - The company aims to enhance its governance structure and internal mechanisms to align with national development goals and improve financial service quality[5]. - The company is focusing on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance, to drive future growth[5]. - The company plans to expand its market presence and invest in new product development to drive future growth[90]. Digital Transformation and Efficiency - In 2023, the company achieved a 24.9% replacement rate of manual operations in six operational scenarios through the "digital underwriter" initiative, enhancing operational efficiency by over 27.0% in underwriting, policy maintenance, and claims areas[47]. - The average claims processing time was reduced to 0.38 days, with a claims approval rate of 99.7%, and the number of "critical illness one-day claims" increased by 31.9% year-on-year[47]. - The company’s digital risk control system, based on big data analysis, has improved the identification and monitoring of key business risks[46]. Market Position and Recognition - China Life Insurance achieved a historic high in total premiums for 2023, with a double-digit growth in new business value, maintaining a leading position in the industry[3]. - The company has been recognized as a "2023 Forbes China ESG Innovation Enterprise," reflecting its commitment to sustainable development[3]. Future Outlook - The company anticipates that its funding will meet insurance business expenditures and new investment project needs in 2024, with plans for financing arrangements based on capital market conditions[51]. - The company plans to focus on customer-centric strategies in 2024, aiming for stable growth and value enhancement while ensuring risk prevention and service improvement[50].

Group 1 - China Life and Xinhua Insurance have jointly established a private equity fund with a total investment of 50 billion yuan, targeting high-quality listed companies with large market capitalization and good liquidity [1] - The Ministry of Housing and Urban-Rural Development has instructed cities to prepare housing development plans for the next two years to prevent market volatility [2] - The People's Bank of China is focusing on enhancing financial support for five key areas, including technology finance and green finance, while effectively utilizing monetary policy tools [3] Group 2 - The State-owned Assets Supervision and Administration Commission has outlined plans for a new round of state-owned enterprise reforms, aiming to complete over 70% of reform tasks in 2024 [4] - UBS reports that central Huijin and others have bought over 410 billion yuan through ETFs, indicating a low likelihood of short-term sell-offs [5] - The gaming industry has seen a significant increase in approvals, with 111 domestic games approved in February, signaling a positive regulatory environment [6] Group 3 - Bitcoin prices surged over 10%, reaching a two-year high of approximately 57,000 USD, with a month-on-month increase exceeding 30% [6] - Viking Therapeutics' weight loss drug trial results led to a stock price increase of over 121%, with 88% of patients in the treatment group losing 10% or more of their weight [6] - Positive earnings reports include CITIC Bo's net profit of 350 million yuan for 2023, a year-on-year increase of 696.31% [7]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 中國人壽保險股份有限公司 CHINA LIFE INSURANCE COMPANY LIMITED 炷㕤ᷕ厗Ṣ㮹ℙ⚳姣Ⅎㆸ䩳ᷳ偉ấ㚱旸℔⎠炸! 炷偉ấẋ嘇;!3739炸! 2023年第三季度報告 本公告由中國人壽保險股份有限公司（「本公司」）根據證券及期貨條例（香港法例第571章）第 XIVA部的內幕消息條文以及香港聯合交易所有限公司證券上市規則第13.09(2)條及第13.10B 條而作出。 重要內容提示 • 本公司董事會、監事會及董事、監事、高級管理人員保證本季度報告內容的真實、 準確、完整，不存在虛假記載、誤導性陳述或者重大遺漏，並承擔法律責任。 • 本公司2023年第三季度報告所載財務資料根據中國企業會計準則編製，且未經審計。 • 本公司董事長白濤先生，財務負責人及財務機構負責人胡錦女士，臨時總精算師侯晉 女士聲明：保證本季度報告中財務報告的真實、準確、完整。 - 1 - 1. 主要財務數據 1 ...

Financial Performance - The net profit attributable to shareholders for the first half of 2023 was RMB 36,151 million, down 8.0% from RMB 39,305 million in the same period of 2022[7]. - The company's earnings per share (basic and diluted) decreased to RMB 1.28, a decline of 8.0% compared to RMB 1.39 in the first half of 2022[7]. - The company's total revenue for the first half of 2023 was RMB 186,324 million, a slight decrease of 1.3% from RMB 188,744 million in the first half of 2022[7]. - The total comprehensive income attributable to shareholders for the six months ended June 30, 2023, was RMB 25,263 million, down from RMB 32,403 million in the same period of 2022, reflecting a decrease of about 22%[138]. - The net profit for the six months ended June 30, 2023, was RMB 36,151 million, compared to RMB 39,305 million in the same period of 2022, representing a decrease of about 5.5%[139]. Assets and Liabilities - Total assets reached RMB 5,507,193 million, an increase of 9.9% compared to RMB 5,010,068 million at the end of 2022[7]. - The total liabilities for insurance contracts increased by 10.1% to RMB 4,696.086 billion, up from RMB 4,266.947 billion[12]. - The asset-liability ratio improved to 91.15%, a decrease of 1.37 percentage points from 92.52% at the end of 2022[7]. - The total liabilities as of June 30, 2023, were RMB 5,019,629 million, compared to RMB 4,635,095 million as of December 31, 2022, marking an increase of about 8.3%[135]. Investment Performance - Investment assets amounted to RMB 5,386,667 million, reflecting an 11.9% increase from RMB 4,811,893 million at the end of 2022[7]. - The company's investment income for the first half of 2023 was RMB 23.606 billion, significantly impacted by accounting standard changes, making year-on-year comparison not applicable[13]. - The total investment income for the first half of 2023 was RMB 91.37 billion, with net profit attributable to shareholders at RMB 36.15 billion[19]. - The net investment income for the first half of 2023 was RMB 90,585 million, resulting in a net investment yield of 3.31%[40]. Insurance Operations - As of June 30, 2023, the company has approximately 326 million valid long-term individual and group life insurance policies, annuity contracts, and long-term health insurance policies[2]. - The total insurance service revenue for the first half of 2023 was RMB 91.941 billion, showing a slight increase of 0.2% from RMB 91.725 billion in the same period of 2022[13]. - The first-year premium for long-term insurance reached RMB 97.42 billion, up from RMB 79.84 billion in the previous year, reflecting a growth of 22.1%[19]. - The policy retention rate for 14 months improved to 89.20% from 85.10% in the previous year, indicating better customer retention[19]. Solvency and Capital Management - The solvency adequacy ratio was reported at 204.23%, while the core solvency adequacy ratio was 140.43%, indicating a strong capital position[18]. - The core solvency adequacy ratio as of June 30, 2023, was 140.43%, slightly down from 143.59% at the end of 2022[48]. - The actual capital rose to RMB 1,031,818 million from RMB 1,007,601 million at the end of 2022[48]. Digital Transformation and Innovation - The company is focusing on digital transformation and marketing system reform to enhance operational efficiency and customer service[16]. - The company is advancing a digital transformation strategy, focusing on integrating new technologies like AI and 5G into its operations[21]. - The company launched 78 new or upgraded insurance products in the first half of 2023, focusing on health and retirement insurance[35]. - The company achieved a 94.9% intelligent underwriting approval rate, with the efficiency of new policy underwriting approval increasing by 36.6%[53]. Corporate Governance and Compliance - The company held six board meetings and two supervisory meetings in the first half of 2023, ensuring compliance with governance regulations[101]. - The company continues to adhere to the corporate governance code, with the chairman unable to attend the annual general meeting due to other commitments, but effective communication with shareholders was maintained[102]. - The company has engaged PwC and Deloitte as auditors for the 2023 fiscal year, with the interim financial report reviewed by PwC[98]. Shareholder Information - The company distributed RMB 13,850 million in shareholder dividends during the first half of 2023, impacting the internal value[70]. - China Life Insurance (Group) Company remains the largest shareholder, holding 68.37% of the shares, equivalent to 19,323,530,000 shares[104]. - The company did not distribute interim ordinary share dividends for the reporting period[103]. Market Outlook and Strategy - The long-term outlook for the life insurance industry in China indicates significant market potential due to increasing demand for high-quality health, medical, and wealth management services as GDP per capita approaches that of moderately developed countries[60]. - In the second half of 2023, the company aims for stable growth in total premiums and rapid growth in new business value, focusing on customer management and product diversification strategies[61]. - The company plans to enhance its asset-liability management and optimize asset allocation to address the dual pressures of declining yields and increased volatility in investment returns[62].