NCI(SH:601336)2019-03-20 16:00Financial Performance - The company plans to distribute a cash dividend of RMB 0.77 per share, totaling approximately RMB 2.402 billion, which accounts for 30.3% of the net profit attributable to shareholders in the 2018 financial report [5]. - The financial report for 2018 has been audited by Ernst & Young Huaming and received a standard unqualified opinion [5]. - Total assets reached CNY 733,929 million, an increase of 3.3% from CNY 710,275 million in 2017 [16]. - Net profit attributable to shareholders was CNY 65,587 million, up 2.9% from CNY 63,715 million in 2017 [16]. - The company's total revenue for 2018 reached 154,167 million RMB, representing a 7.0% increase from 2017 [27]. - Net profit attributable to shareholders of the parent company was 7,922 million RMB, a significant increase of 47.2% compared to 5,383 million RMB in 2017 [27]. - The weighted average return on equity for shareholders of the parent company was 12.25%, up from 8.76% in 2017, indicating a 3.49 percentage point increase [28]. - The total comprehensive income for the year was 3,535 million RMB, a decrease of 41.7% from 6,060 million RMB in 2017, primarily due to declines in the fair value of available-for-sale financial assets [35]. Insurance Business Performance - Insurance business revenue increased by 11.9% to CNY 122,286 million from CNY 109,294 million in 2017 [20]. - First-year premiums for long-term insurance decreased by 27.3% to CNY 20,811 million from CNY 28,618 million in 2017 [20]. - Renewal premiums rose by 24.9% to CNY 95,860 million from CNY 76,725 million in 2017 [20]. - The proportion of first-year premiums from health insurance long-term policies reached 58.7%, an increase of 26.0 percentage points year-on-year [24]. - Renewal premiums accounted for 78.4% of total premiums, an increase of 8.2 percentage points year-on-year [37]. - The company achieved a total insurance premium income of CNY 122.29 billion in 2018, representing a year-on-year growth of 11.9% [37]. - The first-year premium for long-term insurance was CNY 20.81 billion, a decrease of 27.3% compared to the previous year [37]. - The group insurance business revenue increased by 12.2% to CNY 2.33 billion [42]. Risk Management - The company has implemented various measures to effectively manage and control risks, including market risk, credit risk, insurance risk, operational risk, reputational risk, strategic risk, and liquidity risk [5]. - The core solvency adequacy ratio was 269.64%, down from 275.93% in 2017 [20]. - The company has not experienced any credit risk events throughout the year, emphasizing its focus on risk prevention [58]. - The company closely monitors liquidity risks associated with policyholder withdrawals and market fluctuations [72]. - The company has established a risk control organization system and is committed to enhancing risk prevention measures [82]. Investment Performance - Investment assets totaled CNY 699,826 million, a slight increase of 1.7% from CNY 688,315 million in 2017 [20]. - The total investment return rate for 2018 was 4.6%, with no defaults reported on investments [26]. - The net investment income for 2018 was CNY 34.33 billion, an increase of 2.2% from CNY 33.59 billion in 2017 [61]. - The total investment portfolio reached CNY 226,081 million, with non-standard equity investments accounting for CNY 41,392 million, representing 18.3% of the total [66]. - The investment amount in debt-type financial assets was CNY 459.90 billion, accounting for 65.7% of total investment assets, a decrease of 1.6 percentage points from the previous year [59]. Shareholder Information - As of December 31, 2018, the total number of shares issued by the company was 3,119,546,600, with 66.85% being A-shares and 33.15% being H-shares [127]. - The largest shareholder, HKSCC Nominees Limited, held 1,033,829,636 shares, representing 33.14% of the total shares, while the second largest, Central Huijin Investment Ltd., held 977,530,534 shares, or 31.34% [130]. - The company had a total of 75,639 shareholders as of the end of the reporting period, with 75,353 being A-share shareholders and 286 being H-share shareholders [129]. - The controlling shareholder of the company is Huijin Company, which holds a 31.34% stake [132]. Management and Governance - The company has a diverse management team with extensive experience in the insurance and financial sectors [148][149][150][151][152][153]. - The governance structure includes a general meeting of shareholders, a board of directors, a supervisory board, and senior management, ensuring checks and balances [186]. - The board of directors consists of 14 members, including 2 executive directors, 7 non-executive directors, and 5 independent directors [192]. - The company held two shareholder meetings during the reporting period, adhering to legal and regulatory requirements for communication and decision-making [189]. - The total after-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 21.1993 million, with personal income tax paid totaling CNY 8.4725 million [178]. Employee Development - As of December 31, 2018, the company employed a total of 38,542 staff, with 60.42% being sales and sales management personnel [182]. - The company conducted 31,995 training sessions in 2018, training a total of 2.268 million participants, indicating a strong focus on employee development [184]. - The proportion of employees with a bachelor's degree or above is 59.4%, indicating a relatively high level of educational attainment among staff [183]. - The company emphasizes competitive compensation and benefits, including social welfare and housing fund guarantees for employees [184].