PING AN OF CHINA(601318)2024-04-23 10:21Financial Performance - Revenue for Q1 2024 was RMB 245.569 billion, a decrease of 3.2% compared to RMB 253.778 billion in Q1 2023[5] - Net profit attributable to parent company shareholders was RMB 36.709 billion, down 4.3% from RMB 38.352 billion in Q1 2023[5] - Basic earnings per share (EPS) for Q1 2024 was RMB 2.07, down 4.6% from RMB 2.17 in Q1 2023[5] - Weighted average return on equity (non-annualized) was 4.1%, a decrease of 0.2 percentage points from 4.3% in Q1 2023[5] - The company achieved an operating profit attributable to parent company shareholders of RMB 38.709 billion in Q1 2024, a decrease of 3.0% year-over-year[14] - Net profit attributable to parent company shareholders decreased to 36,709 million RMB in Q1 2024 from 38,352 million RMB in Q1 2023[57] - Total operating income declined to 245,569 million RMB in Q1 2024 from 253,778 million RMB in Q1 2023[56] - Total comprehensive income fell sharply to 14,198 million RMB in Q1 2024 from 47,996 million RMB in Q1 2023[57] - Total operating revenue for Q1 2024 was RMB 1,288 million, a significant decrease from RMB 3,628 million in Q1 2023[61] - Net profit for Q1 2024 was RMB 901 million, down from RMB 3,222 million in Q1 2023[61] - Total comprehensive income for Q1 2024 was RMB 930 million, compared to RMB 3,225 million in Q1 2023[61] Cash Flow and Liquidity - Net cash flow from operating activities was RMB 74.958 billion, a significant decrease of 64.3% from RMB 209.986 billion in Q1 2023[5] - Operating cash flow from insurance premiums received increased to RMB 307,044 million, up 5.2% YoY from RMB 291,893 million[58] - Net cash flow from operating activities decreased to RMB 74,958 million, down 64.3% YoY from RMB 209,986 million[58] - Cash received from investment activities decreased to RMB 529,469 million, down 3.7% YoY from RMB 549,883 million[59] - Net cash used in investment activities improved to RMB 177 million, compared to RMB 27,575 million used in the same period last year[59] - Cash received from financing activities increased to RMB 357,166 million, up 56.0% YoY from RMB 228,924 million[59] - Net cash used in financing activities decreased to RMB 12,022 million, down 87.9% YoY from RMB 99,090 million[59] - Cash and cash equivalents at the end of the period increased to RMB 544,102 million, up 3.3% YoY from RMB 526,583 million[59] - Net cash flow from operating activities was negative RMB 171 million in Q1 2024, compared to negative RMB 160 million in Q1 2023[62] - Net cash flow from investing activities was RMB 297 million in Q1 2024, a sharp decline from RMB 11,225 million in Q1 2023[62] - Net cash flow from financing activities was positive RMB 2,678 million in Q1 2024, compared to negative RMB 3,717 million in Q1 2023[62] - Total cash and cash equivalents at the end of Q1 2024 were RMB 13,340 million, down from RMB 22,886 million at the end of Q1 2023[62] Assets and Liabilities - Total assets as of March 31, 2024, were RMB 11,982.296 billion, an increase of 3.4% from RMB 11,583.417 billion at the end of 2023[5] - Total assets grew to 11,982,296 million RMB in Q1 2024 from 11,583,417 million RMB in the previous period[55] - Total liabilities increased to 10,740,156 million RMB in Q1 2024, up from 10,354,453 million RMB in the previous period[55] - Total equity increased slightly to 1,242,140 million RMB in Q1 2024 from 1,228,964 million RMB in the previous period[55] - The company's monetary funds increased to RMB 640,221 million as of March 31, 2024, compared to RMB 577,212 million at the end of 2023[54] - Ping An's financial investments, including fair value through profit or loss assets, reached RMB 1,962,415 million as of March 31, 2024[54] - Total assets of the parent company increased to RMB 317,829 million, up 1.6% from RMB 312,760 million at the end of 2023[60] - Long-term equity investments of the parent company remained stable at RMB 239,584 million, slightly up from RMB 239,302 million at the end of 2023[60] - Shareholders' equity of the parent company increased to RMB 292,266 million, up 0.4% from RMB 291,085 million at the end of 2023[60] Insurance Business Performance - The new business value of life and health insurance reached RMB 12.89 billion in Q1 2024, a year-over-year increase of 20.7%[12] - The comprehensive cost ratio of Ping An Property & Casualty Insurance was 99.6% in Q1 2024, an increase of 0.9 percentage points year-over-year[12] - The group's consolidated operating profit for the first quarter of 2024 reached RMB 47.739 billion, with the life and health insurance business contributing RMB 27.207 billion[17] - The life and health insurance business achieved a new business value of RMB 12.89 billion in Q1 2024, a year-on-year increase of 20.7%[19] - The new business value margin for the life and health insurance business increased by 6.5 percentage points to 22.8% in Q1 2024[19] - The number of individual life insurance sales agents decreased by 4.0% to 333,000 by the end of March 2024[19] - The property insurance business reported insurance service income of RMB 80.627 billion in Q1 2024, a year-on-year increase of 5.7%[22] - The comprehensive cost ratio for the property insurance business rose by 0.9 percentage points to 99.6% in Q1 2024[23] - In Q1 2024, Ping An's life and health insurance business achieved a scale premium of RMB 238,146 million, a 1.6% increase year-over-year[47] - In Q1 2024, Ping An's property insurance business recorded an original insurance premium income of RMB 79,076 million, a 2.8% increase year-over-year[48] - Ping An's core solvency adequacy ratio for life insurance stood at 118.8%, while the comprehensive solvency adequacy ratio was 206.0% as of March 31, 2024[50] Investment Performance - The insurance fund investment portfolio achieved an annualized comprehensive investment yield of 3.1% and a net investment yield of 3.0% in Q1 2024[24] - The size of the insurance fund investment portfolio exceeded RMB 4.93 trillion by the end of March 2024, an increase of 4.4% from the beginning of the year[24] - The investment in real estate within the insurance fund portfolio amounted to RMB 206.435 billion, accounting for 4.2% of the total investment assets by the end of March 2024[24] - Real estate investments accounted for 79.8% of total investments, primarily in commercial offices, logistics properties, industrial parks, and long-term rental apartments[25] - Fair value change gains increased significantly to 34,487 million RMB in Q1 2024 from 22,069 million RMB in Q1 2023[56] - Investment losses were recorded at 6,971 million RMB in Q1 2024, compared to gains of 6,823 million RMB in Q1 2023[56] - Investment income dropped to RMB 696 million in Q1 2024 from RMB 3,071 million in Q1 2023[61] Customer and Market Metrics - The number of individual customers reached 233.78 million as of March 31, 2024, an increase of 1.0% from the beginning of the year[12] - The average number of contracts per individual customer was 2.94 as of March 31, 2024, a slight decrease of 0.3% from the beginning of the year[12] - Ping An's personal customer base reached 233.78 million by the end of March 2024, a 1.0% increase from the beginning of the year[33] - Over 63% of Ping An's personal customers used medical and elderly care services, with an average of 3.37 contracts per customer[34] - Ping An's health insurance premium income in Q1 2024 was nearly RMB 40 billion, with 70% of new life insurance business value coming from customers using medical and elderly care services[34] - Over 10 million life insurance customers used the medical and elderly care ecosystem services in Q1 2024, with new contract customers accounting for over 60%[36] - 63% of the company's 234 million individual customers used the medical and elderly care ecosystem services, with an average of 3.37 contracts per customer and an average AUM of RMB 57,600, 1.6x and 3.6x higher than non-users respectively[37] Shareholder and Employee Ownership - The company's total share capital as of March 31, 2024, was 18,210,234,607 shares, with A-shares accounting for 10,762,657,695 shares and H-shares for 7,447,576,912 shares[7] - Hong Kong Securities Clearing (Nominees) Limited held 38.26% of the company's shares, making it the largest shareholder[8] - Shenzhen Investment Holdings Co., Ltd., a state-owned legal entity, held 5.29% of the company's shares[8] - The company's long-term service plan, involving over 140,000 employees, held 1.93% of the company's shares[9] - The core personnel shareholding plan held 25,391,496 A shares, accounting for 0.139% of the company's total shares[43] - The long-term service plan held 161,422,006 A shares, accounting for 0.883% of the company's total shares[44] - 2022 Long-term Service Plan involved 90,960 participants, purchasing 93,314,482 shares of Ping An A-shares for a total of RMB 4,438,825,366.37, accounting for 0.510% of the total shares[45] - 2023 Long-term Service Plan involved 83,651 participants, purchasing 96,608,364 shares of Ping An A-shares for a total of RMB 4,450,946,615.20, accounting for 0.528% of the total shares[45] - As of the reporting period, the Long-term Service Plan held 350,906,763 A-shares, representing 1.927% of the company's total shares[45] Banking and Financial Services - Ping An Bank's net profit was RMB 14.932 billion in Q1 2024, a year-over-year increase of 2.3%[14] - The core tier 1 capital adequacy ratio of Ping An Bank rose to 9.59% as of March 31, 2024[14] - The coverage ratio of Ping An Bank was 261.66% as of March 31, 2024[14] - Retail customer assets (AUM) at Ping An Bank grew to RMB 4,082.712 billion by the end of March 2024, up 1.3% from the beginning of the year[26] - Corporate loan balance at Ping An Bank increased by 12.2% to RMB 1,603.958 billion by the end of March 2024[26] - Ping An Bank's bond trading market share rose to 3.1% in Q1 2024, up 0.2 percentage points year-on-year[26] - Ping An's total assets under management (AUM) exceeded RMB 7 trillion by the end of March 2024[30] Technology and Innovation - Ping An's AI customer service handled approximately 420 million interactions in Q1 2024, covering 80% of total customer service interactions[31] - The online healthcare platform has a 98% monthly five-star rating and handles 60-second response times for remote consultations[36] Social Responsibility and Sustainability - The company's green insurance premium income reached RMB 10.682 billion in Q1 2024[11] - The "Three Villages Project" provided RMB 2.677 billion in rural industrial assistance funds in Q1 2024[11] Healthcare and Elderly Care Services - The company's domestic cooperation network includes over 50,000 internal and external doctors, more than 36,000 hospitals, 100% coverage of top 100 and top-tier hospitals, over 100,000 health management institutions, and 231,000 pharmacies, with a national pharmacy coverage rate exceeding 37%[35] - The home-based elderly care service covers 54 cities, offering nearly 600 services, with over 120 suppliers and a customer NPS of 83%[35] - The overseas cooperation network spans 35 countries, including over 1,300 overseas medical institutions, covering 8 of the top 10 and 54 of the top 100 globally[35]