CHINA TAIPING(HK:00966)2023-03-28 11:28Financial Performance - Total premium income reached HKD 265 billion, a year-on-year increase of 0.9%, and a growth of 4.6% in RMB terms[4] - Shareholders' profit attributable amounted to HKD 2.797 billion[4] - Total assets increased to HKD 1,409.4 billion, up 2.2% from the end of 2021, with an 11.7% increase in RMB terms[4] - The embedded value per share was HKD 55.11, with a 1.1% increase year-on-year, and the value in RMB terms grew by 10.4%[4] - The net investment income was HKD 48.573 billion, reflecting an 8.9% year-on-year growth[5] - Shareholders' profit attributable decreased by 62.8% to HKD 2.797 billion[13] - Profit before tax decreased by 86.3% to HKD 1,498.27 million, down from HKD 10,913.84 million in the previous year[18] - Net profit attributable to shareholders fell by 62.8% to HKD 2,796.61 million, compared to HKD 7,513.70 million in 2021[18] - Net profit after tax for 2022 was HKD 5,538,356 thousand, down from HKD 10,952,373 thousand in 2021, representing a decrease of approximately 49.5%[122] - The company's basic and diluted earnings per share for 2022 were both HKD 0.778, compared to HKD 2.091 in 2021, indicating a decline of about 62.8%[121] Investment and Asset Management - The group has cumulatively underwritten 424 major projects along the Belt and Road Initiative, providing risk protection exceeding RMB 700 billion[7] - New investments in strategic emerging industries and major livelihood construction projects amounted to RMB 53 billion during the year[7] - Investment assets reached HKD 1,218.2 billion, a year-on-year increase of 1.4%[15] - The proportion of fixed income investments rose from 76.2% in 2021 to 76.7% in 2022, while equity investments decreased from 18.3% to 17.1%[26] - Third-party asset management reached HKD 1,092.8 billion, reflecting a growth of 5.3% compared to the previous year[33] - The asset management business reported a management fee income of HKD 1,882.77 million in 2022, down 18.6% from HKD 2,311.90 million in 2021[82] - The operating profit of the asset management business increased by 29.4% to HKD 961.42 million in 2022, compared to HKD 743.00 million in 2021[83] - The company maintained a stable equity asset allocation ratio while increasing fixed income asset allocation to enhance stable returns[23] Insurance Operations - The life insurance premium income grew by 3.6%, outperforming the market, with the individual insurance premium reaching a historical high[4] - New individual insurance premium increased by 20.0%, with personal insurance new premium up by 28.6%[13] - Life insurance operating profit dropped by 46.4% to HKD 5,958.27 million from HKD 11,115.59 million in 2021[20] - The first-year premium income for individual insurance was HKD 17,633.37 million in 2022, down from HKD 21,730.46 million in 2021, a decrease of 18.7%[46] - The premium income from short-term savings products accounted for 35.0% of total first-year premiums in 2022, up from 25.0% in 2021[47] - The premium income from traditional life insurance increased to HKD 51,389.11 million in 2022, representing 28.7% of total premiums, compared to 19.2% in 2021[49] Solvency and Financial Health - The comprehensive solvency adequacy ratio was 194% as of December 31, 2022, down from 208% in 2021[53] - The solvency ratio for Taiping Pension was 224% as of December 31, 2022, down from 256% in 2021[64] - The comprehensive solvency ratio as of December 31, 2022, was 186%, down from 216% in 2021, with actual capital at RMB 9.521 billion compared to RMB 9.380 billion in 2021[72] - The total liabilities of life insurance contracts, net of reinsurance, decreased by 12.4% to HKD 122,106.06 million in 2022 from HKD 139,425.65 million in 2021[35] Strategic Initiatives and Future Outlook - The company aims for high-quality development in 2023, focusing on risk prevention and innovation[11] - The company plans to actively develop innovative green insurance products and enhance pricing strategies in the property insurance sector[92] - The company aims to enhance digital transformation and improve customer management capabilities in 2023[91] - The group aims to enhance its investment business quality by focusing on healthcare, retirement, and other industry layouts[95] - The global economic growth is projected to slow to 2.2% in 2023, impacting corporate profit growth and asset valuations[95] Changes in Financial Position - The total equity attributable to shareholders decreased to HKD 98,686,180 thousand in 2022 from HKD 113,455,960 thousand in 2021, reflecting a decline of approximately 13.0%[124] - The company's total liabilities were HKD 1,310,679,386 thousand in 2022, up from HKD 1,265,186,014 thousand in 2021, representing an increase of approximately 3.6%[124] - The total cash and cash equivalents as of December 31, 2022, stood at HKD 39,945,905, an increase from HKD 31,306,390 in 2021, indicating a stronger financial position[132] Operational Efficiency - The total employee cost for the year was HKD 15.79 billion, down 12.3% from HKD 18.00 billion in 2021, with a total employee count of 68,386[89] - The company reported a significant increase in financial expenses, which rose to HKD 3,123,440 from HKD 2,381,532 in 2021[129] - The cash generated from operating activities was HKD 95,694,955, compared to HKD 101,149,940 in the previous year, showing a decrease of about 5.4%[130] Accounting and Reporting Standards - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, requiring management to make estimates and assumptions[1] - The company recognizes policyholder benefits, including maturity, annuity, and claims, as expenses upon payment or notification[147] - The company conducts liability adequacy tests at each reporting period to ensure that insurance liabilities are sufficient[144]