2021-03-25 16:00Financial Performance - The company achieved premium income exceeding RMB 600 billion in 2020, marking a new development height[6]. - Premium income reached RMB 612.265 billion, an increase of 9.3% compared to the previous year[11]. - The company achieved a total premium income of RMB 612.27 billion in 2020, up from RMB 567.09 billion in 2019, representing an increase of approximately 7.5%[25]. - The company reported a net profit attributable to shareholders of RMB 50.27 billion, a decrease of 13.8% from the previous year, influenced by changes in reserve discount rates and investment income fluctuations[18]. - The total profit for the year was CNY 54.49 billion, representing a decrease of 8.9% compared to the previous year[54]. - The profit from life insurance business decreased by 33.8% to CNY 28.07 billion, primarily due to changes in reserve discount rates and investment income[54]. - The health insurance business saw a profit increase of 97.6% to CNY 11.61 billion, driven by growth in short-term health insurance[54]. - The company reported a total revenue of 1.2 trillion yuan for the year 2020, representing a year-on-year growth of 8%[177]. - The company expects a revenue growth of 10% for the upcoming fiscal year, driven by new product launches and market expansion strategies[179]. Assets and Liabilities - Total assets reached RMB 4.252 trillion by the end of 2020, ranking first in the domestic life insurance industry[6]. - Total assets amounted to RMB 4,252.410 billion, reflecting a growth of 14.1% year-on-year[12]. - The company’s total liabilities increased by 16.5% to RMB 3,000.00 billion, driven by the growth in insurance business and policyholder deposits[17]. - The company’s insurance contract reserves totaled RMB 2,973.225 billion, an increase of 16.5% compared to the end of 2019[44]. - The embedded value reached RMB 1,072.14 billion, ranking first in the industry, with total assets exceeding RMB 4 trillion, reaching RMB 4,252.41 billion, a 14.1% increase from the end of 2019[19]. Investment Performance - Total investment income was RMB 198.596 billion, with an overall investment return rate of 5.30%[11]. - Investment income increased by 27.7% to RMB 207.54 billion, driven by higher returns from equity investments[18]. - The company achieved a net investment income of CNY 162.78 billion, an increase of CNY 13.67 billion or 9.2% year-on-year[51]. - The total investment income for the year was CNY 198.60 billion, up CNY 29.55 billion from 2019, with a total investment income rate of 5.30%, an increase of 7 basis points[51]. Risk Management - The company has taken various measures to manage and control risks, including macroeconomic, insurance, market, credit, operational, strategic, reputational, liquidity, and information security risks[3]. - The company has achieved an A rating in the comprehensive risk assessment by regulatory authorities for 11 consecutive quarters, indicating strong risk management practices[24]. - The core solvency adequacy ratio as of December 31, 2020, was 260.10%, down from 266.71% in 2019, primarily due to the growth in insurance business and investment asset scale, dividend distribution, and a decline in the assessment interest rate for solvency reserves[60]. Customer Base and Services - As of December 31, 2020, the company had approximately 317 million valid long-term individual and group life insurance policies, annuity contracts, and long-term health insurance policies, serving over 500 million customers[7]. - The company provided direct compensation services to over 5 million customers through a network of more than 20,000 medical institutions[69]. - The company achieved a paperless insurance application rate of 99.9% for individual long-term insurance, saving approximately 365.6 tons of paper[126]. Technology and Innovation - The company has a strong focus on technology innovation, aiming to enhance online, intelligent, and ecological service capabilities[6]. - The company has implemented a digital transformation strategy, significantly improving its online service capabilities and customer satisfaction[24]. - The company launched over 1,700 standardized services and 740 innovative micro-applications as part of its digital ecosystem, enhancing customer interaction and service delivery[66]. - The company is expanding its market presence in Southeast Asia, targeting a 20% market share in the region by 2025[172]. Corporate Governance - The company has a strong focus on customer rights protection and continuous improvement of corporate governance[126]. - The board of directors consists of 9 members, including 3 executive directors, 2 non-executive directors, and 4 independent directors, meeting regulatory requirements[200]. - The company has implemented a director liability insurance policy to protect its directors during their tenure[200]. - The Supervisory Board evaluated the company's financial reports and internal controls, confirming compliance with legal and regulatory requirements[152]. Dividend and Shareholder Returns - The company plans to distribute cash dividends of RMB 0.64 per share, totaling approximately RMB 18.089 billion, subject to shareholder approval[3]. - The dividend payout ratio for the year was maintained at 30%, reflecting the company's commitment to returning value to shareholders[182]. - In 2020, the company achieved a net profit of RMB 50.27 billion, with a dividend payout ratio of 36%[132]. Social Responsibility and Sustainability - The company actively participated in poverty alleviation efforts, investing over RMB 87 million in 1,281 support points, contributing to the overall poverty alleviation strategy[20]. - The company has made charitable donations totaling approximately RMB 337.31 million during the reporting period[133]. - The company is committed to sustainable development and has integrated ESG factors into its investment management principles[124].