NCI(SH:601336)2022-08-30 16:00Financial Performance - Total revenue for the first half of 2022 was 124,795 million, a decrease of 5.5% compared to 132,075 million in 2021[16]. - Net profit attributable to shareholders was 5,187 million, down 50.8% from 10,546 million in the same period last year[16]. - Basic and diluted earnings per share were both 1.66, a decrease of 50.9% from 3.38 in the previous year[17]. - The total comprehensive income for the six months ended June 30, 2022, was RMB 396 million, significantly lower than RMB 9,124 million in the same period of 2021, indicating a decline of 95.7%[160]. - The company reported a net profit of 1,127 million, representing a 45% increase compared to the previous period[73]. - The company reported a decrease in net profit of 44 million in one of its subsidiaries, highlighting the need for strategic adjustments[73]. Assets and Liabilities - Total assets of New China Life Insurance Co., Ltd. reached RMB 1,188,526 million[14]. - Total liabilities of the company reached RMB 1,084,007 million, compared to RMB 1,019,207 million at the end of 2021, marking an increase of about 6.4%[156]. - The company's equity attributable to shareholders decreased to RMB 104,500 million from RMB 108,497 million, a decline of approximately 3.7%[158]. - The total liabilities and equity combined amounted to RMB 1,188,526 million, up from RMB 1,127,721 million, reflecting a growth of 5.4%[158]. - The company's long-term health insurance liability increased to RMB 171,268 million from RMB 152,581 million, representing a growth of 12.2%[156]. Investment Performance - Annualized total investment return rate decreased to 4.2%, down from 6.5% in 2021, a decline of 2.3 percentage points[20]. - The net investment income for the first half of 2022 was CNY 24,892 million, a 16.4% increase compared to CNY 21,380 million in the same period of 2021[54]. - Total investment income decreased by 27.3% to CNY 22,630 million in the first half of 2022, down from CNY 31,117 million in the previous year[54]. - The company reported a significant decline in investment asset trading gains, with a loss of CNY 1,528 million compared to a gain of CNY 10,945 million in the same period of 2021, marking a 114.0% decrease[54]. - The company’s equity investment dividends and income rose by 68.4% to CNY 7,463 million, compared to CNY 4,431 million in the previous year[54]. Premium Income and Claims - As of June 30, 2022, the total premium income reached CNY 102.586 billion, representing a year-on-year growth of 2.0%[30]. - The first-year premium for long-term insurance was CNY 29.486 billion, a decrease of 1.7% compared to the previous year[30]. - Renewal premiums accounted for 68.4% of total premiums, with a year-on-year increase of 4.8% to CNY 70.212 billion[30]. - The company reported a net claims expenditure of 20,635 million, down 18.3% from 25,257 million in the previous year[20]. - Claims paid in the first half of 2022 decreased by 16.0% year-on-year to 21.933 billion yuan, with claims payments down 23.3%[45][46]. Risk Management - The company faces various risks including market, credit, insurance, operational, reputational, strategic, and liquidity risks, which are effectively managed[6]. - The company aims to strengthen its risk management capabilities through a comprehensive risk management system[75]. - The company maintains a close watch on liquidity risks associated with policyholder withdrawals and market fluctuations[66]. Corporate Governance - The board of directors confirmed the accuracy and completeness of the semi-annual report, with no false records or significant omissions[6]. - The company held one shareholders' meeting and five board meetings during the reporting period, ensuring compliance with regulatory requirements[105]. - The company has not engaged in any significant equity or non-equity investments during the reporting period[128]. Strategic Initiatives - The company aims to enhance its product offerings and customer service experience while optimizing insurance fund utilization[26]. - The company plans to enhance product diversification and improve customer service efficiency to drive high-quality development[74]. - The company is exploring potential acquisitions in the health insurance sector to diversify its product offerings[148]. - The company announced a strategic partnership with a leading tech firm to enhance its digital insurance offerings[147]. Employee and Community Engagement - The company organized 15,059 training sessions in the first half of 2022, with a total of 1,285,894 participants, averaging 38.6 hours of training per employee[120]. - The company provided 9.4 million RMB in aid to Guizhou Province and 1 million RMB to Inner Mongolia for poverty alleviation projects in the first half of 2022[123]. - 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[123]. Regulatory Compliance - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance of the People's Republic of China[172]. - The company has implemented new accounting standards related to financial instruments across its major subsidiaries[73]. - The company has maintained a diversified entrusted investment management system, primarily using internal investment managers supplemented by external managers[130].