China Life(HK:02628)2023-04-19 08:30Company Overview - The company has approximately 325 million valid long-term individual and group life insurance policies, annuity contracts, and long-term health insurance policies as of December 31, 2022[3]. - The registered capital of the company is RMB 28,264,705,000[3]. - The company is one of the largest institutional investors in China and has become one of the largest insurance asset managers through its subsidiary, China Life Asset Management Company[3]. - The company has been recognized as the 71st in the 2022 Forbes Global 2000 list and 9th in the 2022 Fortune China 500 list[15]. Digital Transformation and Innovation - The company is committed to digital transformation, establishing a digital insurance ecosystem that combines online and offline services[11]. - The company emphasizes technology innovation as a key driver for its development strategy, focusing on creating a digital operation service system centered on customer experience[11]. - The company achieved a data processing capability increase of 200% and a storage utilization rate improvement of 300% through digital transformation efforts[81]. - The company aims to enhance its digital capabilities and customer service experience, with a focus on green development and online service growth[82]. Financial Performance - Total revenue for 2022 was RMB 804,388 million, a decrease of 2.5% compared to RMB 824,933 million in 2021[25]. - Net profit attributable to shareholders was RMB 32,082 million, down 36.8% from RMB 50,766 million in the previous year[25]. - Pre-tax profit decreased by 52.2% to RMB 24,047 million from RMB 50,340 million in 2021[25]. - Total assets increased by 7.3% to RMB 5,251,988 million from RMB 4,892,480 million in 2021[25]. - Cash flow from operating activities increased by 22.9% to RMB 351,968 million compared to RMB 286,446 million in 2021[25]. - The company's total liabilities rose by 9.1% to RMB 4,806,867 million from RMB 4,405,346 million in 2021[25]. - The weighted average return on equity decreased by 3.91 percentage points to 7.01% from 10.92% in 2021[25]. - The total investment return rate decreased by 1.04 percentage points to 3.94% from 4.98% in the previous year[25]. - Cash and cash equivalents increased by 111.0% to RMB 127,594 million from RMB 60,459 million in 2021, indicating improved liquidity management[26]. - The equity attributable to shareholders decreased by 9.0% to RMB 436,169 million from RMB 479,061 million in 2021, reflecting the impact of comprehensive income and profit distribution[26]. Insurance Business Performance - The net premium income for the year ended December 31, 2022, was RMB 607,825 million, a decrease of 0.6% compared to RMB 611,251 million in 2021[27]. - The company achieved a 5.1% year-on-year growth in new insurance policy sales, maintaining industry leadership in total premium income and new business value[30]. - Total premium income for the year was RMB 615.19 billion, maintaining the industry lead, while new single premium increased by 5.1% to RMB 184.77 billion[37]. - The life insurance segment saw a total of RMB 360.577 billion, marking a 13.4% increase year-on-year[62]. - The health insurance segment reported premiums of RMB 26.537 billion, with a growth of 15.9% year-on-year[62]. - The company maintained a low surrender rate of 0.95%, down 0.25 percentage points year-on-year[38]. Awards and Recognition - The company has received multiple awards, including the "2022 Annual Outstanding Life Insurance Company" and "2022 ESG Green Company Star"[16]. - The company received over 40 awards in 2022, including recognition as one of the "Most Valuable High-Quality Development Listed Companies" by the China Securities Golden Bauhinia Awards[29]. Governance and Management - The company has a stable and professional management team with extensive experience in the domestic life insurance market[14]. - The company’s board underwent changes, with several directors resigning due to various reasons, including age and work adjustments[129]. - The former chairman, Wang Bin, was dismissed from his position due to serious disciplinary violations and is under investigation for corruption[127]. - The company has a strong governance structure with independent directors like Lin Zhiquan and Zhai Haitao, who bring extensive experience in finance and investment management[183][184]. Compliance and Risk Management - The company emphasizes compliance with various laws and regulations, ensuring a robust compliance culture and management framework to mitigate systemic risks[136]. - The company has established a continuous related party transaction framework with the group company and the asset management subsidiary[106]. - The auditor confirmed that all disclosed related party transactions were approved by the board and adhered to pricing policies[119]. Future Plans and Strategies - The company plans to focus on stable growth, value enhancement, and structural optimization in its 2023 operational strategy[84]. - The company initiated the "Eight Major Projects" strategy to enhance future development, focusing on innovation and resource integration[42]. - The company plans to enhance its online service platform, aiming for a 30% increase in digital engagement by the end of 2023[190]. - The company is investing in new technology development, with a budget allocation of 500 million RMB for digital transformation initiatives in 2023[194]. Community Engagement and Social Responsibility - The company deployed 973 village assistance personnel and invested RMB 29.6 million in various assistance funds to support rural revitalization efforts[135]. - The company provided risk protection for 310 million rural residents, with a total risk coverage amounting to RMB 30.78 trillion, and paid out RMB 5.224 billion to 3.23 million individuals[135]. - The company reported a green insurance coverage amounting to RMB 417.812 billion in 2022, with green investment scale exceeding RMB 430 billion as of December 31, 2022[132]. - The total charitable donations made by the company during the reporting period amounted to approximately RMB 353.8 million[143].