NCI(SH:601336)2016-08-30 16:00Financial Performance - Total revenue for the first half of 2016 was RMB 87,451 million, a decrease of 15.9% compared to RMB 103,997 million in the same period of 2015[14]. - Net profit attributable to shareholders of the parent company was RMB 3,333 million, down 50.6% from RMB 6,752 million in the previous year[14]. - Basic earnings per share attributable to shareholders of the parent company decreased by 50.5% to RMB 1.07 from RMB 2.16 year-on-year[14]. - The diluted earnings per share also decreased by 50.5% to RMB 1.07 from RMB 2.16 year-on-year[14]. - The company reported a decrease of 51.8% in the basic earnings per share after deducting non-recurring gains and losses, down to RMB 1.05 from RMB 2.18[14]. - Net profit attributable to shareholders for the first half of 2016 was RMB 3.333 billion, a decline of 50.6% from RMB 6.752 billion in the previous year[22]. - Total investment income for the first half of 2016 was RMB 16.293 billion, down 48.2% from RMB 31.480 billion year-on-year[22]. - The annualized total investment return was 5.3%, down 5.2 percentage points compared to the same period last year, mainly due to reduced gains from the sale of investment assets[49]. - The company reported a loss of CNY 2.88 billion from the combined effects of investment asset sales, fair value changes, and impairment losses, compared to a profit of CNY 16.336 billion in the same period last year[49]. Assets and Liabilities - Total assets as of June 30, 2016, were RMB 686,039 million, reflecting a 3.9% increase from RMB 660,560 million at the end of 2015[14]. - The total liabilities as of June 30, 2016, amounted to RMB 628,321 million, an increase of 4.2% compared to the end of 2015[70]. - The company's equity attributable to shareholders was RMB 577.11 billion, a slight decrease of 0.2% compared to the end of 2015, mainly due to reduced other comprehensive income from available-for-sale financial assets[80]. - The total liabilities to total assets ratio was 91.6% as of June 30, 2016, compared to 91.2% at the end of 2015[111]. Cash Flow - Net cash flow from operating activities increased by 157.6% to RMB 8,843 million compared to RMB 3,433 million in the same period last year[14]. - The net cash flow from investment activities was negative 25.689 billion RMB, compared to a positive 33.164 billion RMB in the same period last year[105]. - The net cash flow from financing activities was 16.039 billion RMB, compared to a negative 31.162 billion RMB in the same period last year[107]. Insurance Business Performance - Insurance business revenue decreased by 2.2% to RMB 71,035 million from RMB 72,661 million year-on-year[14]. - The company's insurance business revenue for the first half of 2016 was RMB 71.035 billion, a decrease of 2.2% compared to RMB 72.661 billion in the same period of 2015[22]. - The first-year premium income from the insurance marketing agent channel was RMB 90.65 billion, a growth of 27.1% compared to RMB 71.31 billion in the previous year[29]. - The first-year premium income reached 24.30 billion RMB, down 27.1% year-on-year, while renewal premium income surged to 5.79 billion RMB, an increase of 343.0%[34]. - Health insurance revenue increased by 41.0% to 11.53 billion RMB, with first-year premium income rising by 49.0% to 5.36 billion RMB[35]. Investment Strategy - The company aims to enhance its credit risk management system in response to increasing market risks and defaults[39]. - The company’s investment in high-grade interest rate bonds remains a priority, focusing on liquidity and risk-adjusted returns[38]. - A steady investment strategy will be maintained, with a focus on controlling credit and market risks while seeking investment opportunities that align with the risk-return profile of insurance funds[119]. Governance and Management - The company has established a governance structure that includes a board of directors, supervisory board, and senior management to enhance operational efficiency[176]. - The company held 2 shareholder meetings, 8 board meetings, and 4 supervisory meetings during the reporting period, ensuring compliance with governance regulations[175]. - The sixth board of directors was elected on March 4, 2016, with Wan Feng appointed as the executive director and chairman[194]. - The company appointed Mr. Wan Feng as the CEO on March 24, 2016, following the resignation of Mr. Kang Dian as CEO[198]. Shareholder Information - The total number of shares remained unchanged at 3,119,546,600 as of June 30, 2016[182]. - The company had 44,014 shareholders, with 43,414 holding A shares and 600 holding H shares[184]. - HKSCC Nominees Limited held 33.14% of shares, totaling 1,033,890,436, with a decrease of 57,100 shares during the reporting period[185]. - Central Huijin Investment Ltd. owned 31.34% of shares, amounting to 977,530,534, with no changes reported[185]. - Baosteel Group Corporation held 15.10% of shares, totaling 471,185,465, with a decrease of 26,721 shares and 164,973,279 shares pledged[185].