PING AN OF CHINA(601318)2023-10-27 16:00Financial Performance - Revenue for Q3 2023 was RMB 216.155 billion, a slight increase of 0.1% compared to the adjusted figure of RMB 216.037 billion in the same period last year[6] - Net profit attributable to parent company shareholders for Q3 2023 was RMB 17.734 billion, a decrease of 19.6% compared to the adjusted figure of RMB 22.056 billion in the same period last year[6] - Basic earnings per share for Q3 2023 were RMB 1.00, a decrease of 21.3% compared to the adjusted figure of RMB 1.27 in the same period last year[6] - Weighted average return on equity (non-annualized) for Q3 2023 was 1.9%, a decrease of 0.7 percentage points compared to the adjusted figure of 2.6% in the same period last year[6] - Group's operating profit attributable to parent company shareholders reached RMB 112.482 billion in the first three quarters of 2023, with an annualized operating ROE of 16.7%[12] - Net profit attributable to parent company shareholders decreased by 5.6% year-on-year to RMB 87.575 billion in the first three quarters of 2023[14] - Operating profit attributable to parent company shareholders decreased by 9.8% year-on-year to RMB 112.482 billion in the first three quarters of 2023[16] - Group operating profit reached RMB 143.667 billion, with net profit attributable to parent company shareholders at RMB 92.781 billion[19] - Net profit for the first nine months of 2023 decreased by 3.1% to RMB 108.111 billion, compared to RMB 111.525 billion in the same period of 2022[57] - Total revenue for the first nine months of 2023 reached RMB 704.938 billion, a 5.2% increase compared to RMB 670.101 billion in the same period of 2022[56] - Insurance service income grew by 2.2% to RMB 404.483 billion in the first nine months of 2023, up from RMB 395.658 billion in the same period of 2022[56] - Basic earnings per share decreased by 7.1% to RMB 4.94 in the first nine months of 2023, compared to RMB 5.32 in the same period of 2022[57] - Investment income increased by 48.8% to RMB 34.484 billion in the first nine months of 2023, up from RMB 23.174 billion in the same period of 2022[56] - Total operating income for the first nine months of 2023 was RMB 33,201 million, a decrease from RMB 44,320 million in the same period of 2022[61] - Net profit for the first nine months of 2023 was RMB 31,684 million, down from RMB 43,022 million in the same period of 2022[61] - Investment income for the first nine months of 2023 was RMB 31,895 million, compared to RMB 42,929 million in the same period of 2022[61] - Total comprehensive income for the first nine months of 2023 was RMB 31,717 million, down from RMB 43,000 million in the same period of 2022[61] - Interest income for the first nine months of 2023 was RMB 1,173 million, slightly up from RMB 1,142 million in the same period of 2022[61] - Total operating expenses for the first nine months of 2023 were RMB 1,399 million, compared to RMB 1,322 million in the same period of 2022[61] Assets and Liabilities - Total assets as of September 30, 2023, were RMB 11.465779 trillion, an increase of 4.1% compared to the adjusted figure at the beginning of the year[6] - Total assets increased by 4.1% to RMB 11.465779 trillion as of September 2023, compared to RMB 11.009940 trillion at the end of 2022[55] - Total liabilities increased by 4.2% to RMB 10.233691 trillion as of September 2023, compared to RMB 9.823944 trillion at the end of 2022[55] - Insurance contract liabilities grew by 10.7% to RMB 4.063780 trillion as of September 2023, up from RMB 3.671177 trillion at the end of 2022[55] - Total equity attributable to parent company shareholders increased by 3.9% to RMB 903.103 billion as of September 2023, compared to RMB 869.191 billion at the end of 2022[55] - Total assets as of September 30, 2023, were RMB 305,862 million, a slight increase from RMB 302,771 million at the end of 2022[60] - Long-term equity investments as of September 30, 2023, were RMB 239,098 million, compared to RMB 238,108 million at the end of 2022[60] - Total liabilities as of September 30, 2023, increased by 72.5% to RMB 36,094 million, up from RMB 20,936 million at the end of 2022[60] - Shareholders' equity as of September 30, 2023, decreased by 4.3% to RMB 269,768 million, down from RMB 281,835 million at the end of 2022[60] - The company's total assets amounted to RMB 11,465,779 million as of September 30, 2023, compared to RMB 11,009,940 million at the end of 2022[53] - The company's monetary funds increased to RMB 649,036 million as of September 30, 2023, from RMB 613,737 million at the end of 2022[53] - The company's financial investments, including financial assets measured at fair value, debt investments, and other debt investments, totaled RMB 5,597,913 million as of September 30, 2023[53] - The company's total guarantee amount was RMB 8,899 million, accounting for 1.0% of the company's net assets as of September 30, 2023[51] - The company's total guarantee amount for subsidiaries with a debt-to-asset ratio exceeding 70% was RMB 8,133 million as of September 30, 2023[51] Shareholders and Ownership - Total number of shareholders as of September 30, 2023, was 909,538, with A-share shareholders accounting for 905,286 and H-share shareholders accounting for 4,252[10] - Hong Kong Securities Clearing (Nominees) Limited holds 38.17% of the company's shares, making it the largest shareholder[10] - Shenzhen Investment Holdings Co., Ltd., a state-owned legal entity, holds 5.29% of the company's shares[10] - The company's long-term service plan, which includes over 140,000 employees, holds 1.93% of the company's shares[10] - Charoen Pokphand Group indirectly holds approximately 6.12% of the company's shares through its subsidiaries[11] - The company's core personnel shareholding plan held 25,391,496 A shares, representing 0.139% of the total shares as of the reporting period[41] - The long-term service plan, approved in 2018, has a duration of ten years and aims to align the interests of shareholders, the company, and employees[42] - The long-term service plan held a total of 350,975,208 A shares of the company, accounting for 1.927% of the company's total shares as of the reporting period[44] - In 2023, the long-term service plan involved 83,651 participants, purchasing 96,608,364 A shares at a total transaction amount of RMB 4,450,946,615.20, accounting for 0.528% of the company's total shares[44] Insurance Business - Life and health insurance new business value increased by 40.9% year-on-year to RMB 33.574 billion in the first three quarters of 2023[12] - Property insurance service income grew 6.8% year-on-year to RMB 235.538 billion in the first three quarters of 2023, with a comprehensive cost ratio of 97.4% for auto insurance[12] - Ping An's healthcare ecosystem covered approximately 68% of life insurance new business value in the first three quarters of 2023[12] - Green insurance premium income reached RMB 26.276 billion in the first three quarters of 2023[13] - The comprehensive cost ratio of property insurance increased by 1.6 percentage points to 99.3% in the first three quarters of 2023[14] - Health insurance premium income exceeded RMB 110 billion, contributing approximately 68% to new business value of life insurance[22] - Ping An Life Insurance achieved an operating profit of RMB 84.911 billion in the first three quarters of 2023, with a new business value of RMB 33.574 billion, a year-on-year increase of 40.9%[25][26] - The number of individual life insurance sales agents decreased by 3.7% to 360,000 as of September 30, 2023, compared to June 30, 2023[25] - Ping An Life Insurance's per capita new business value increased by 94.4% year-on-year in the first three quarters of 2023[25] - Ping An Property & Casualty Insurance achieved insurance service revenue of RMB 235.538 billion in the first three quarters of 2023, a year-on-year increase of 6.8%[27][28] - The company's life and health insurance business generated a scale premium of RMB 497,538 million and an original insurance premium income of RMB 409,703 million in 2023[47] - The property insurance business recorded an original insurance premium income of RMB 225,932 million in 2023, a 1.8% increase compared to 2022[48] - The core capital of Ping An Life Insurance was RMB 484,739 million, with a core solvency adequacy ratio of 121.5% and a comprehensive solvency adequacy ratio of 213.9% as of September 30, 2023[50] Banking Business - Ping An Bank achieved a net profit of RMB 39.635 billion in the first three quarters of 2023, an 8.1% year-on-year increase, with a non-performing loan ratio of 1.04%[12] - Ping An Bank's net profit increased by 8.1% year-on-year to RMB 39.635 billion in the first three quarters of 2023[30][32] - Ping An Bank's retail customer assets under management (AUM) reached RMB 3,998.848 billion as of September 30, 2023, an increase of 11.5% compared to the beginning of the year[30] - Ping An Bank's non-performing loan ratio decreased by 0.01 percentage points to 1.04% as of September 30, 2023, compared to the beginning of the year[31] - Ping An Bank's core tier 1 capital adequacy ratio increased to 9.23% as of September 30, 2023[31] - Total deposits increased by 4.3% to RMB 3,454,796 million as of September 30, 2023, compared to RMB 3,312,684 million at the end of 2022[33] - Total loans and advances grew by 2.9% to RMB 3,426,092 million as of September 30, 2023, from RMB 3,329,161 million at the end of 2022[33] - Non-performing loan ratio decreased by 0.01 percentage points to 1.04% as of September 30, 2023[33] - Provision coverage ratio declined by 7.66 percentage points to 282.62% as of September 30, 2023[33] - Core Tier 1 capital adequacy ratio rose by 0.59 percentage points to 9.23% as of September 30, 2023[33] Healthcare Ecosystem - Ping An's individual customer base reached nearly 230 million by the end of September 2023, with an average of 2.99 contracts per customer[12] - 64% of personal customers used medical health ecosystem services, with average contracts per customer at 3.42 and average AUM at RMB 56,100[22][24] - Over 4.5 million corporate clients used medical health services, with Ping An Health's paying users exceeding 44 million in the past 12 months[22] - Ping An completed the acquisition of Peking University Medical Group, integrating 6 top-tier hospitals and 13 specialty medical institutions[23] - External contracted doctors reached nearly 50,000, with cooperation covering over 10,000 hospitals and 228,000 pharmacies[23] - Ping An Health's online consultation platform achieved a 99% monthly five-star rating with zero major medical incidents[24] - The "insurance + medical" model was piloted in Beijing, combining life and health insurance with high-end medical services from Peking University International Hospital[24] Investment and Asset Management - Ping An's insurance fund investment portfolio achieved an annualized comprehensive investment yield of 3.7% and an annualized net investment yield of 4.0% in the first three quarters of 2023[29] - Asset management scale exceeded RMB 6 trillion as of September 30, 2023[34] - The company has over 3,200 scientists and a cumulative total of 50,815 patent applications, with 95% being invention patents[36] - AI-driven sales accounted for 45% of total sales through customer service channels in the first three quarters of 2023[36] Cash Flow and Financing - Operating cash flow for the first nine months of 2023 was RMB 312,648 million, a decrease of 7.7% compared to RMB 338,743 million in the same period last year[58] - Premiums received from insurance contracts in the first nine months of 2023 increased by 11.7% to RMB 736,367 million, up from RMB 659,014 million in the same period last year[58] - Net cash inflow from investment activities in the first nine months of 2023 was RMB -35,313 million, compared to RMB -253,910 million in the same period last year[59] - Cash and cash equivalents at the end of September 2023 increased by 17.4% to RMB 448,643 million, up from RMB 382,006 million at the end of September 2022[59] - Net cash inflow from financing activities in the first nine months of 2023 was RMB -277,308 million, compared to RMB -116,387 million in the same period last year[59] - Cash received from issuing bonds in the first nine months of 2023 increased by 22.4% to RMB 734,916 million, up from RMB 600,325 million in the same period last year[59] - Net cash flow from operating activities for the first nine months of 2023 was negative RMB 346 million, compared to negative RMB 228 million in the same period of 2022[62] - Net cash flow from investing activities for the first nine months of 2023 was RMB 30,006 million, down from RMB 37,039 million in the same period of 2022[62] - Net cash flow from financing activities for the first nine months of 2023 was negative RMB 29,960 million, compared to negative RMB 27,638 million in the same period of 2022[62] - Cash and cash equivalents at the end of September 2023 were RMB 15,406 million, a decrease from RMB 22,668 million at the end of September 2022[62]