Financial Performance - Total revenue for the first half of 2022 was 124,085 million, a decrease of 4.8% compared to 130,386 million in 2021[15]. - Total premium income and policy management fee income increased by 2.0% to 102,643 million from 100,641 million year-on-year[15]. - Pre-tax profit dropped significantly by 62.4% to 4,543 million from 12,086 million in the same period last year[15]. - Net profit attributable to shareholders decreased by 50.8% to 5,187 million from 10,546 million year-on-year[15]. - Basic earnings per share for the first half of 2022 were RMB 1.66, a decrease from RMB 3.38 in the same period of 2021, representing a decline of 50.8%[145]. - The total comprehensive income for the six months ended June 30, 2022, was RMB 104,500 million, compared to RMB 101,667 million for the same period in 2021, indicating an increase of about 2.9%[147]. Assets and Liabilities - Total assets increased by 5.4% to 1,188,526 million compared to 1,127,721 million at the end of 2021[16]. - Total liabilities rose by 6.4% to 1,084,007 million from 1,019,207 million at the end of 2021[16]. - The company's total equity attributable to shareholders as of June 30, 2022, was RMB 104,500 million, down from RMB 108,497 million at the end of 2021, a decrease of about 3.7%[142]. Investment Performance - Annualized total investment return rate fell to 4.2%, down 2.3 percentage points from 6.5% in the previous year[19]. - Net investment income for the six months ended June 30, 2022, was CNY 24,892 million, a 16.4% increase from CNY 21,380 million in the same period of 2021[52]. - Total investment income decreased by 27.3% to CNY 22,630 million compared to CNY 31,117 million in the previous year[52]. - The fair value of trading financial assets increased to RMB 76,459 million as of June 30, 2022, compared to RMB 70,226 million as of December 31, 2021, reflecting a growth of approximately 17.5%[162]. Risk Management - The company faces various risks including market risk, credit risk, insurance risk, operational risk, reputational risk, strategic risk, and liquidity risk[6]. - The company has implemented various measures to effectively manage and control these risks[6]. - The company continues to actively manage risks associated with credit products and is selectively allocating new projects under controlled risk conditions[49]. - The company closely monitors liquidity risks associated with policyholder withdrawals and market fluctuations, ensuring sufficient cash flow to meet current demands[64]. Business Operations - The company is focusing on transforming its business model to enhance customer-centric services and improve product differentiation in a competitive market[24]. - The company aims to enhance product diversification by centering on customer needs and strengthening product innovation, improving the product system, and increasing risk protection levels throughout the customer lifecycle[69]. - The company plans to improve team quality by implementing support policies for high-performing teams and promoting a marketing team transformation towards "youthfulness, professionalism, and urbanization"[69]. Governance and Compliance - The board meeting on August 30, 2022, had 15 directors present, all of whom attended in person[6]. - The company held one shareholders' meeting and five board meetings during the reporting period, ensuring compliance with governance standards[97]. - The company confirmed adherence to the standards set forth in the "Standard Code" regarding securities trading by its directors and senior management during the reporting period[100]. - Two independent non-executive directors resigned due to the completion of their six-year term, which may affect the board's compliance with regulatory requirements[104]. Embedded Value and New Business Value - The embedded value as of June 30, 2022, was CNY 258.873 billion, reflecting a slight increase of 0.02% from the end of the previous year[30]. - The new business value for the first half of 2022 was CNY 2.112 billion, down 48.4% year-on-year[30]. - The effective business value before deducting required capital costs was CNY 122,305 million, up from CNY 120,279 million year-over-year[87]. - The company prepared the embedded value results as of June 30, 2022, to provide investors with insights into its economic value and business performance[75]. Social Responsibility - The company provided 9.4 million CNY in aid to Shibing County, Guizhou Province, and 1 million CNY to Ulanqab City, Inner Mongolia, supporting 11 targeted assistance projects in the first half of 2022[114]. - The company’s volunteer team reached 46,308 members, conducting 2,036 volunteer activities with a total service time of 81,205 hours in the first half of 2022[114]. Legal and Regulatory Matters - The company has not experienced any administrative penalties due to environmental issues during the reporting period[113]. - The company has no significant litigation, arbitration, or claims pending as of June 30, 2022[119]. - The company incurred a total of RMB 2,910 million in settlement payments related to unauthorized repurchase transactions conducted by the former chairman[195]. - The company is currently engaged in legal proceedings to recover the outstanding amounts related to the violations of the former chairman[198].
新华保险(01336) - 2022 - 中期财报