EX-99.1

EX-99.1 2 d557667dex991.htm EX-99.1 EX-99.1

EXHIBIT 99.1

Commission File Number 001-31914

LOGO

CHINA LIFE INSURANCE COMPANY LIMITED

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 2628)

2023 THIRD QUARTER REPORT

This announcement is made by China Life Insurance Company Limited (the “Company”) pursuant to the inside information provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

IMPORTANT NOTICE

•

The Company’s Board of Directors, the Board of Supervisors, its Directors, Supervisors and Senior Management warrant that the information in the 2023 third quarter report is true, accurate and complete and contains no false representations, misleading statements or material omissions, and accept legal responsibility.

•

The financial data for the 2023 third quarter report of the Company have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited.

•

Mr. Bai Tao, Chairman of the Board of the Company, Ms. Hu Jin, Person in Charge of Finance and Head of the Financial Department, and Ms. Hou Jin, temporary chief actuary, confirm that the financial statements in the 2023 third quarter report are true, accurate and complete.

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1.	MAJOR FINANCIAL DATA

1.1

Major Accounting Data and Financial Indicators

Currency: RMB


Items	As at 30 September 2023		As at 31 December 2022													Increase/ (decrease) compared to 31 December 2022
Total assets (million)		5,759,367		5,251,984													9.7	%
Equity attributable to equity holders of the Company (million)		441,878		436,169													1.3	%
Items	For the Reporting Period (from July to September)		For the corresponding period of 2022				Increase/ (decrease) compared to the corresponding period of 2022			For the nine months ended 30 September 2023		For the corresponding period of 2022				Increase/ (decrease) compared to the corresponding period of 2022
Items	For the Reporting Period (from July to September)		After restatement		Before restatement		After restatement			For the nine months ended 30 September 2023		After restatement		Before restatement		After restatement
Operating income (million)		155,738		172,716		172,714		-9.8	%		709,333		701,018		701,012		1.2	%
Net profit attributable to equity holders of the Company (million)		53		5,669		5,701		-99.1	%		16,209		31,025		31,117		-47.8	%
Net profit attributable to equity holders of the Company after deducting non-recurring items (million)		111		5,703		5,735		-98.1	%		16,353		31,090		31,182		-47.4	%
Net cash flows from operating activities (million)		N/A		N/A		N/A		N/A			339,383		288,829		288,755		17.5	%
Earnings per share (basic and diluted) (RMB per share)		—		0.20		0.20		-99.1	%		0.57		1.10		1.10		-47.8	%
Weighted average ROE (%)		0.01		1.21		1.22		A decrease of 1.20 percentage points			3.67		6.61		6.63		A decrease of 2.94 percentage points

Notes:

The financial data for the first three quarters of 2022 in this report have been restated due to a business combination under common control in 2022.

In calculating the percentage change of “Earnings per share (basic and diluted)”, the tail differences of the basic figures have been taken into account.

- 2 -

1.2

Non-recurring Items and Amounts

RMB million


Non-recurring items	For the Reporting Period (from July to September)			For the nine months ended 30 September 2023
Gains/(losses) on disposal of non-current assets		7			19
Government subsidies recognised in current gains/(losses)		14			61
External donations		—			(1	)
Net non-operating income and expenses other than those mentioned above		(95	)		(255	)
Effect of income tax		18			44
Attributable to non-controlling interests		(2	)		(12	)
Total		(58	)		(144	)

Note:

The Company is an insurance company and investment (application of insurance fund) is one of its major businesses. Therefore, the non-recurring items do not include fair value gains/(losses) from financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss, as well as investment income from the disposal of financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss and available-for-sale financial assets.

- 3 -

1.3

Particulars of and Reasons for Changes in Major Accounting Data and Financial Indicators

Currency: RMB


Items	For the Reporting Period (from July to September)		For the corresponding period of 2022 (after restatement)		Increase/ (decrease) compared to the corresponding period of 2022 (after restatement)			For the nine months ended 30 September 2023		For the corresponding period of 2022 (after restatement)		Increase/ (decrease) compared to the corresponding period of 2022 (after restatement)			Main reasons
Net profit attributable to equity holders of the Company (million)		53		5,669		-99.1	%		16,209		31,025		-47.8	%	Due to the impact of the equity market staying at the low level, the investment income declined year on year
Net profit attributable to equity holders of the Company after deducting non-recurring items (million)		111		5,703		-98.1	%		16,353		31,090		-47.4	%
Earnings per share (basic and diluted) (RMB per share)		—		0.20		-99.1	%		0.57		1.10		-47.8	%	A year-on-year decrease in net profit attributable to equity holders of the Company
Weighted average ROE (%)		0.01		1.21		A decrease of 1.20 percentage points			3.67		6.61		A decrease of 2.94 percentage points

- 4 -

2.	INFORMATION ON SHAREHOLDERS

Total Number of Ordinary Share Shareholders and the Particulars of Top Ten Shareholders as at the End of the Reporting Period


Total number of shareholders as at the end of the Reporting Period	Number of A Share shareholders: 86,541
	Number of H Share shareholders: 24,491
Particulars of top ten shareholders of the Company								Unit: Share
Name of shareholders	Nature of shareholder	Percentage of shareholding			Total number of shares held as at the end of the Reporting Period		Number of shares subject to selling restrictions		Number of shares pledged or frozen
China Life Insurance (Group) Company	State-owned legal person		68.37	%		19,323,530,000		—		—
HKSCC Nominees Limited	Overseas legal person		25.93	%		7,327,868,382		—		—
China Securities Finance Corporation Limited	State-owned legal person		2.51	%		708,240,246		—		—
Central Huijin Asset Management Limited	State-owned legal person		0.41	%		117,165,585		—		—
Hong Kong Securities Clearing Company Limited	Overseas legal person		0.13	%		37,261,949		—		—
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund	Other		0.06	%		15,977,103		—		—
Guosen Securities Co., Ltd. – Founder Fubon CSI Insurance Theme Index Securities Investment Fund	Other		0.05	%		13,226,012		—		—
National Social Security Fund Portfolio 114	Other		0.04	%		12,000,000		—		—
Industrial and Commercial Bank of China Limited – Huatai-PineBridge CSI 300 Exchange Traded Index Securities Investment Fund	Other		0.04	%		10,748,933		—		—
China International Television Corporation	State-owned legal person		0.04	%		10,000,000		—		—

Notes:

HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong Kong stock brokers and other participants of the CCASS system. The relevant regulations of The Stock Exchange of Hong Kong Limited do not require such persons to declare whether their shareholdings are pledged or frozen. Hence, HKSCC Nominees Limited is unable to calculate or provide the number of shares that are pledged or frozen.

Both Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund and Industrial and Commercial Bank of China Limited – Huatai-PineBridge CSI 300 Exchange Traded Index Securities Investment Fund have Industrial and Commercial Bank of China Limited as their fund depositary. Save as above, the Company was not aware of any connected relationship and concerted parties as defined by the “Measures for the Administration of the Takeover of Listed Companies” among the top ten shareholders of the Company.

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3.	QUARTERLY BUSINESS OVERVIEW

In the first three quarters of 2023, as the momentum of economic upturn in China continued to consolidate, the recovery of the life insurance industry has sustained, but there were still uncertainties and complexities. During the Reporting Period, the Company continued to pursue high-quality development and achieved a steady business performance with improved business quality, which further enhanced its comprehensive strengths and solidified its market leading position in the industry. Firstly, the growth momentum was sustained with steady improvement in business quality. In the first three quarters of 2023, the Company achieved a rapid growth in its insurance businesses. Its revenues from insurance businesses¹ were RMB578,799 million, an increase of 4.5% year on year. Premiums from new policies were RMB196,656 million, an increase of 14.8% year on year. In particular, first-year regular premiums amounted to RMB105,982 million, an increase of 16.0% year on year. Both the scale and growth rate of revenues from insurance businesses, premiums from new policies and first-year regular premiums hit record highs for the corresponding period of the past three years. The Company realised a rapid growth in premiums from new policies with its business structure continuously optimised. First-year regular premiums with a payment duration of ten years or longer were RMB44,639 million, an increase of 15.4% year on year, and its proportion in the first-year regular premiums was 42.12%, rising by 2.13 percentage points from the first half of 2023. The value of new business for the first three quarters of 2023 continued to grow, recording a year-on-year increase of 14.0%. Renewal premiums were RMB382,143 million, which generally remained stable. Short-term insurance premiums amounted to RMB69,319 million, an increase of 3.4% year on year. The surrender rate² was 0.88%, an increase of 0.14 percentage point year on year. Secondly, the sales force of the Company was further stabilised and its quality was steadily improved. Focusing on the “Eight Reform Programs” and implementation of the “Sales Channel Strengthening Program”, the Company continued to drive business growth through productive agents, proceeded with the sales system reforms in greater depth, and reinforced agent recruitment and development, so as to push forward the transformation of the sales team to be more specialised and professional. As at the end of the Reporting Period, the Company’s total sales force was 0.72 million, of which the number of agents of the individual agent business sector was 0.66 million, further stabilising and solidifying the scale of its sales team. In the meantime, the quality of the sales team continued to optimise and its productivity was significantly improved, with the monthly average first-year regular premiums per agent increasing by 28.6% year on year. Thirdly, the Company remained under pressure in terms of investment income due to the complicated and severe capital market environment. In the third quarter of 2023, the coupon rate of domestic bonds was volatile at the low level with the neutral weight edging further downwards, which created a persistent pressure on the allocation of fixed-income assets. The stock market continued to fluctuate at the low level, severely affecting the investment income from open market equity investment. Affected by the above factors, in the first three quarters of 2023, the Company achieved gross investment income³ of RMB109,997

¹	Revenues from insurance businesses is consistent with Premium Income in the attached consolidated income statement.

²	Surrender Rate = Surrender payment/(Opening balance of life insurance reserves and long-term health insurance reserves + Premiums from life insurance and long-term health insurance)

³	Gross investment income = Net investment income + Net realised gains on investment assets + Fair value gains/losses – Impairment losses of investment assets

- 6 -

million and gross investment yield⁴ was 2.81%. The net investment income⁵ was RMB148,340 million and the net investment yield⁶ was 3.81%. Fourthly, the solvency ratios of the Company continued to maintain at high levels. As at the end of the Reporting Period, the Company’s core solvency ratio and comprehensive solvency ratio were 161.25% and 232.68%, respectively, the increase of 17.66 percentage points and 25.90 percentage points from the end of 2022, respectively. The strong solvency ratios provide solid capital foundation for the development of the Company.

As at the end of the Reporting Period, the Company’s total assets and investment assets were RMB5,759,367 million and RMB5,519,950 million, respectively. In the first three quarters of 2023, due to the impact of the equity market staying at the low level, the investment income of the Company declined year on year and net profit attributable to equity holders of the Company was RMB16,209 million, a decrease of 47.8% year on year.

The Company will continue to pursue the guideline of making progress while maintaining stability, firmly implement the business strategy of “achieving stable growth, prioritising business value, optimising business structure, strengthening sales force, promoting reforms and guarding against risks”, properly coordinate its business development with team building, facilitate in-depth reforms on key areas, push forward the sales system reforms in great depth, and properly proceed with the empowerment and implementation of healthcare and senior-care ecosystem. It will also endeavour to improve capabilities in customer services and management, strengthen the supporting role of digital iteration, further enhance the protection of consumers’ rights and interests, and reinforce the bottom line of risk prevention and control, with the goal of promoting the high-quality development of the Company with stable and sustainable growth.

⁴

Gross investment yield = [(Gross investment income – Interest paid for financial assets sold under agreements to repurchase)/ ((Investment assets at the end of the previous year – Financial assets sold under agreements to repurchase at the end of the previous year + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period)/2)]/273×365

⁵	Net investment income mainly includes interest income, dividend and bonus from all types of financial assets, net income from investment properties, and income from investments in associates and joint ventures, etc.

⁶

Net investment yield = [(Net investment income – Interest paid for financial assets sold under agreements to repurchase)/ ((Investment assets at the end of the previous year – Financial assets sold under agreements to repurchase at the end of the previous year + Investment assets at the end of the period – Financial assets sold under agreements to repurchase at the end of the period)/2)]/273×365

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4.	QUARTERLY FINANCIAL STATEMENTS

Balance sheet as at 30 September 2023 (unaudited)


			RMB million (Unless otherwise stated)

ASSETS	As at 30 September 2023 Group		As at 31 December 2022 Group		As at 30 September 2023 Company		As at 31 December 2022 Company
Assets
Cash fund		158,633		128,953		142,621		119,033
Financial assets at fair value through profit or loss		250,104		223,782		113,334		93,649
Securities purchased under agreements to resell		23,177		38,533		19,065		35,816
Interest receivables		57,363		52,309		53,811		49,833
Premiums receivables		41,721		19,697		41,721		19,697
Receivables from reinsurers		1,809		1,433		1,809		1,433
Unearned premium reserves receivable from reinsurers		839		774		839		774
Claim reserves receivable from reinsurers		756		736		756		736
Reserves for life insurance receivables from reinsurers		729		603		729		603
Reserves for long-term health insurance receivables from reinsurers		4,544		4,294		4,544		4,294
Other receivables		25,486		13,409		28,778		16,964
Loans		597,618		596,490		580,818		578,963
Term deposits		429,846		485,567		346,638		442,690
Available-for-sale financial assets		2,043,774		1,738,108		1,932,742		1,644,704
Held-to-maturity investments		1,740,750		1,574,204		1,738,353		1,571,892
Long-term equity investments		258,339		261,179		513,859		466,875
Statutory deposits		6,333		6,333		5,653		5,653
Investment properties		12,844		13,193		6,113		6,266
Constructions in progress		5,513		5,025		4,604		4,293
Fixed assets		47,602		49,052		43,642		45,088
Right-of-use assets		1,480		1,810		1,295		1,595
Intangible assets		8,340		8,532		7,256		7,406
Deferred tax assets		33,925		22,307		33,833		22,120
Other assets		5,551		5,654		5,127		5,410
Separate account assets		2,291		7		7		7

Total assets		5,759,367		5,251,984		5,627,947		5,145,794

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 8 -

Balance sheet as at 30 September 2023 (unaudited) (continued)


				RMB million (Unless otherwise stated)

LIABILITIES AND EQUITY	As at 30 September 2023 Group			As at 31 December 2022 Group			As at 30 September 2023 Company			As at 31 December 2022 Company
Liabilities
Financial liabilities at fair value through profit or loss		5,488			3,344			—			—
Securities sold under agreements to repurchase		154,614			148,954			138,343			140,587
Premiums received in advance		38,370			50,830			38,370			50,830
Brokerage and commission payable		4,190			4,664			4,188			4,660
Reinsurance payable		1,460			998			1,460			998
Salary and welfare payable		8,724			12,075			7,585			10,758
Taxes payable		992			942			673			509
Dividends payable		10			—			—			—
Claims payable		66,623			60,819			66,623			60,819
Policyholder dividends payable		92,458			96,682			92,458			96,682
Other payable		15,066			18,974			13,052			16,964
Policyholder deposits		473,253			374,742			473,253			374,742
Unearned premium reserves		25,411			13,108			25,411			13,108
Claim reserves		26,757			26,153			26,757			26,153
Reserves for life insurance		3,967,017			3,607,236			3,967,017			3,607,236
Reserves for long-term health insurance		260,010			233,663			260,010			233,663
Long-term borrowings		12,636			12,774			—			—
Bonds payable		34,999			34,997			34,999			34,997
Lease liabilities		1,280			1,569			1,091			1,342
Deferred tax liabilities		647			272			—			—
Other liabilities		115,603			104,060			31,254			29,921
Separate account liabilities		2,291			7			7			7

Total liabilities		5,307,899			4,806,863			5,182,551			4,703,976

Equity
Share capital		28,265			28,265			28,265			28,265
Capital reserve		53,940			53,554			52,479			52,410
Accumulated other comprehensive income		(1,963	)		(4,927	)		(4,223	)		(6,103	)
Surplus reserve		109,092			105,160			109,044			105,112
General reserve		52,500			52,429			51,341			51,341
Retained earnings		200,044			201,688			208,490			210,793

Attributable to equity holders of the Company		441,878			436,169

Non-controlling interests		9,590			8,952

Total equity		451,468			445,121			445,396			441,818

Total liabilities and equity		5,759,367			5,251,984			5,627,947			5,145,794

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 9 -

Income statement for the third quarter of 2023 (unaudited)


		RMB million (Unless otherwise stated)

		For the nine months ended 30 September						For the nine months ended 30 September
		2023			2022			2023			2022
ITEMS		Group			Group			Company			Company
					(Restated)
1	Operating income		709,333			701,018			703,483			699,558
	Premiums earned		560,227			536,679			560,227			536,679
	Premium income		578,799			554,105			578,799			554,105

	Including: Reinsurance premium income		—			—			—			—

	Less: Premiums ceded to reinsurers		(6,334	)		(6,897	)		(6,334	)		(6,897	)
	Change in unearned premium reserves		(12,238	)		(10,529	)		(12,238	)		(10,529	)
	Investment income		140,630			165,354			138,446			164,412

	Including: Share of profit of associates and joint ventures		6,900			6,352			6,605			7,840

	Other gains		129			148			79			88
	Fair value gains/(losses)		1,821			(8,104	)		1,009			(5,702	)
	Foreign exchange gains/(losses)		(195	)		214			323			1,020
	Other operating income		6,689			6,657			3,368			2,991
	Gains/(losses) on disposal of assets		32			70			31			70
2	Operating expenses		(703,106	)		(672,930	)		(699,974	)		(670,087	)
	Surrenders		(38,468	)		(28,693	)		(38,468	)		(28,693	)
	Claims expense		(139,116	)		(107,736	)		(139,116	)		(107,736	)
	Less: Claims recoverable from reinsurers		5,307			5,045			5,307			5,045
	Increase in insurance contracts reserve		(386,725	)		(415,129	)		(386,725	)		(415,129	)
	Less: Insurance reserves recoverable from reinsurers		396			672			396			672
	Policyholder dividends resulting from participation in profits		(6,244	)		(17,285	)		(6,244	)		(17,285	)
	Tax and surcharges		(796	)		(789	)		(663	)		(676	)
	Underwriting and policy acquisition costs		(53,962	)		(45,713	)		(53,934	)		(45,712	)
	Administrative expenses		(29,537	)		(28,656	)		(27,326	)		(26,492	)
	Less: Expenses recoverable from reinsurers		525			1,050			525			1,050
	Other operating expenses		(21,917	)		(20,921	)		(20,632	)		(19,828	)
	Impairment losses		(32,569	)		(14,775	)		(33,094	)		(15,303	)

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 10 -

Income statement for the third quarter of 2023 (unaudited) (continued)

RMB million (Unless otherwise stated)

For the nine months

ended 30 September

For the nine months

ended 30 September

2023

2022

2023

2022

ITEMS

Group

Company

(Restated)

Operating profit

6,227

28,088

3,509

29,471

Add: Non-operating income

Less: Non-operating expenses

(298

)

(286

)

(296

)

(285

)

Net profit before income tax

5,961

27,861

3,241

29,241

Less: Income tax expenses

11,341

4,315

12,238

5,369

Net profit

17,302

32,176

15,479

34,610

According to operating continuity:

– Net profit from continuing operations

17,302

32,176

15,479

34,610

According to ownership of the company:

– Equity holders of the Company

16,209

31,025

– Non-controlling interests

1,093

1,151

Earnings per share

Basic earnings per share

RMB0.57

RMB1.10

Diluted earnings per share

RMB0.57

RMB1.10

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 11 -

Income statement for the third quarter of 2023 (unaudited) (continued)

RMB million (Unless otherwise stated)


	For the nine months ended 30 September						For the nine months ended 30 September
	2023			2022			2023			2022
ITEMS	Group			Group			Company			Company
				(Restated)
7 Other comprehensive income		2,927			(37,752	)		1,880			(38,450	)

Other comprehensive income attributable to equity holders of the Company (net of tax)		2,964			(37,649	)
Other comprehensive income that may be reclassified to profit or loss		2,088			(37,473	)		1,012			(38,188	)
Fair value gains/(losses) on available-for-sale financial assets		(22,473	)		(45,538	)		(23,505	)		(46,455	)
Less: Amount transferred to net profit from other comprehensive income		29,976			(5,551	)		29,992			(5,409	)
Portion of fair value changes on available-for-sale financial assets attributable to participating policyholders		(4,940	)		14,691			(4,940	)		14,691
Other comprehensive income that may be transferred to profit or loss under the equity method		(1,072	)		(1,723	)		(573	)		(1,035	)
Exchanges differences on translating foreign operations		597			648			38			20
Other comprehensive income that will not be reclassified to profit or loss		876			(176	)		868			(262	)
Other comprehensive income that may not be transferred to profit or loss under the equity method		876			(176	)		868			(262	)
Other comprehensive income attributable to non-controlling interests (net of tax)		(37	)		(103	)

8 Total comprehensive income		20,229			(5,576	)		17,359			(3,840	)

– Attributable to equity holders of the Company		19,173			(6,624	)
– Attributable to non-controlling interests		1,056			1,048

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 12 -

Cash flow statement for the third quarter of 2023 (unaudited)

RMB million (Unless otherwise stated)


	For the nine months ended 30 September						For the nine months ended 30 September
	2023			2022			2023			2022
ITEMS	Group			Group			Company			Company
				(Restated)
1 Cash flows from operating activities
Premiums received		541,748			494,458			541,748			494,458
Net increase in policyholder deposits		85,282			38,442			85,282			38,442
Net cash received from financial assets at fair value through profit or loss		—			—			—			15,414
Net cash received from financial liabilities at fair value through profit or loss		—			1,865			—			—
Cash received from other operating activities		9,521			13,037			4,343			7,492

Sub-total of cash inflows from operating activities		636,551			547,802			631,373			555,806

Cash paid for claims		(171,719	)		(133,065	)		(171,719	)		(133,065	)
Net cash paid for reinsurance business		(416	)		(1,057	)		(416	)		(1,057	)
Cash paid for brokerage and commission fees		(54,486	)		(46,369	)		(54,457	)		(46,366	)
Cash paid for policyholder dividends		(16,139	)		(17,803	)		(16,137	)		(17,803	)
Cash paid to and for employees		(19,798	)		(20,209	)		(18,207	)		(18,510	)
Cash paid for taxes and surcharges		(4,894	)		(5,482	)		(3,072	)		(3,477	)
Net cash paid for financial assets at fair value through profit or loss		(15,090	)		(15,456	)		(16,849	)		—
Net cash paid for financial liabilities at fair value through profit or loss		(1,090	)		—			—			—
Cash paid for other operating activities		(13,536	)		(19,532	)		(14,070	)		(18,986	)

Sub-total of cash outflows from operating activities		(297,168	)		(258,973	)		(294,927	)		(239,264	)

Net cash flows from operating activities		339,383			288,829			336,446			316,542

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 13 -

Cash flow statement for the third quarter of 2023 (unaudited) (continued)

RMB million (Unless otherwise stated)


	For the nine months ended 30 September						For the nine months ended 30 September
	2023			2022			2023			2022
ITEMS	Group			Group			Company			Company
				(Restated)
2 Cash flows from investing activities
Cash received from sales and redemption of investments		963,796			930,542			889,576			823,882
Cash received from investment income		136,780			134,495			134,998			131,863
Net cash received from disposals of fixed assets, intangible assets and other long-term assets		85			148			85			147
Net cash received from securities purchased under agreements to resell		16,139			—			16,751			—
Net cash received from the disposal of subsidiaries and other business units		—			255			34			2,263

Sub-total of cash inflows from investing activities		1,116,800			1,065,440			1,041,444			958,155

Cash paid for investments		(1,401,820	)		(1,080,431	)		(1,288,048	)		(1,015,918	)
Net increase in policy loans		(14,401	)		(12,922	)		(14,401	)		(12,922	)
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets		(1,967	)		(1,720	)		(1,473	)		(1,358	)
Net cash paid from securities purchased under agreements to resell		—			(12,867	)		—			(11,507	)
Net cash paid for the acquisition of subsidiaries and other business units		(11,006	)		(12,117	)		(30,598	)		(12,513	)
Cash paid for other investing activities		(198	)		—			—			—

Sub-total of cash outflows from investing activities		(1,429,392	)		(1,120,057	)		(1,334,520	)		(1,054,218	)

Net cash flows from investing activities		(312,592	)		(54,617	)		(293,076	)		(96,063	)

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 14 -

Cash flow statement for the third quarter of 2023 (unaudited) (continued)

RMB million (Unless otherwise stated)


	For the nine months ended 30 September						For the nine months ended 30 September
	2023			2022			2023			2022
ITEMS	Group			Group			Company			Company
				(Restated)
3 Cash flows from financing activities
Cash received from investment		17,889			3,241			—			—
Including: Cash received from the investment of non-controlling interests by subsidiaries		17,889			3,241
Cash received from borrowings		18			—			—			—
Net cash received for securities sold under agreements to repurchase		5,482			—			—			—
Cash received from other financing activities		750			—			—			—

Sub-total of cash inflows from financing activities		24,139			3,241			—			—

Cash repaid to lenders		(563	)		(97	)		—			—
Cash paid for dividends and interests and repaid for lenders		(20,139	)		(24,429	)		(17,016	)		(21,825	)
Net cash paid for securities sold under agreements to repurchase		—			(151,849	)		(2,244	)		(157,334	)
Cash paid for other financing activities		(761	)		(1,228	)		(621	)		(760	)

Sub-total of cash outflows from financing activities		(21,463	)		(177,603	)		(19,881	)		(179,919	)

Net cash flows from financing activities		2,676			(174,362	)		(19,881	)		(179,919	)

4 Effect of changes in foreign exchange rate on cash and cash equivalents		107			228			99			189

5 Net increase in cash and cash equivalents		29,574			60,078			23,588			40,749

Add: Opening balance of cash and cash equivalents		127,594			60,459			119,036			53,593

6 Closing balance of cash and cash equivalents		157,168			120,537			142,624			94,342

Bai Tao

Hu Jin

Hou Jin

Hu Jin

Legal

Representative

Person in charge of

Accounting Affairs

Temporary

Chief Actuary

Head of Financial

Department

- 15 -

Notes:

Under Accounting Standards for Business Enterprises (“ASBE”), the Company adopts the transition plan for the new accounting standards for insurance contracts, namely: From 1 January 2023 to 31 December 2025, the Company will continue to apply ASBE No. 25 – Direct Insurance Contracts (Caikuai [2006] No. 3), ASBE No. 26 – Reinsurance Contracts (Caikuai [2006] No. 3), Regulations regarding the Accounting Treatment of Insurance Contracts (Caikuai [2009] No. 15), ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2006] No. 3), ASBE No. 23 – Transfer of Financial Assets (Caikuai [2006] No. 3), ASBE No. 24 – Hedging (Caikuai [2006] No. 3), ASBE No. 37 – Presentation of Financial Instruments (Caikuai [2014] No. 23) and other relevant accounting standards.

The following additional disclosures are related financial information prepared in accordance with ASBE No. 25 – Insurance Contracts (Caikuai [2020] No. 20), ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2017] No. 7), ASBE No. 23 – Transfer of Financial Assets (Caikuai [2017] No. 8), ASBE No. 24 – Hedge Accounting (Caikuai [2017] No. 9) and ASBE No. 37 – Presentation of Financial Instruments (Caikuai [2017] No. 14) (the “new standards”) by the Company for the third quarter of 2023. The Company has restated and presented the comparative information associated with insurance contracts in accordance with ASBE No. 25 – Insurance Contracts (Caikuai [2020] No. 20), and there is no need to restate and present any comparative information associated with financial instruments in accordance with ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2017] No. 7).

Balance sheet under the new standards as at 30 September 2023 (unaudited)

RMB million (Unless otherwise stated)


ASSETS	As at 30 September 2023 Group		As at 31 December 2022 Group
			(Restated)
Assets
Cash fund		159,230		128,956
Financial assets at fair value through profit or loss		N/A		223,790
Financial assets purchased under agreements to resell		23,179		38,533
Interest receivables		N/A		49,438
Term deposits		439,715		485,567
Held-for-trading financial assets		1,613,360		N/A
Financial assets at amortised cost		208,386		N/A
Debt financial assets at fair value through other comprehensive income		2,643,797		N/A
Equity financial assets at fair value through other comprehensive income		132,518		N/A
Loans		N/A		342,083
Available-for-sale financial assets		N/A		1,738,108
Held-to-maturity investments		N/A		1,574,204
Reinsurance contract assets		25,095		24,096
Long-term equity investments		259,650		262,488
Statutory deposits		6,466		6,333
Investment properties		12,844		13,193
Fixed assets		47,602		49,052
Constructions in progress		5,513		5,025
Right-of-use assets		1,480		1,810
Intangible assets		8,340		8,532
Deferred tax assets		23,289		46,126
Other assets		29,897		12,734

Total assets		5,640,361		5,010,068

- 16 -

Balance sheet under the new standards as at 30 September 2023 (unaudited) (continued)

RMB million (Unless otherwise stated)


LIABILITIES AND EQUITY	As at 30 September 2023 Group			As at 31 December 2022 Group
				(Restated)
Liabilities
Financial liabilities at fair value through profit or loss		N/A			3,344
Held-for-trading financial liabilities		5,488			N/A
Financial assets sold under agreements to repurchase		154,645			148,958
Premiums received in advance		37,239			49,654
Salary and welfare payable		8,724			12,075
Taxes payable		961			942
Long-term borrowings		12,653			12,774
Bonds payable		35,789			34,997
Insurance contract liabilities		4,785,095			4,266,947
Reinsurance contract liabilities		169			160
Lease liabilities		1,280			1,569
Deferred tax liabilities		—			272
Other liabilities		113,978			103,403

Total liabilities		5,156,021			4,635,095

Equity
Share capital		28,265			28,265
Capital reserve		53,940			53,554
Accumulated other comprehensive income		(64,821	)		(112,110	)
Surplus reserve		109,092			105,160
General reserve		52,500			52,429
Retained earnings		295,763			238,723

Attributable to equity holders of the Company		474,739			366,021

Non-controlling interests		9,601			8,952

Total equity		484,340			374,973

Total liabilities and equity		5,640,361			5,010,068

- 17 -

Income statement under the new standards for the third quarter of 2023 (unaudited)

RMB million (Unless otherwise stated)


ITEMS	For the nine months ended 30 September 2023 Group			For the nine months ended 30 September 2022 Group
				(Restated)
1 Operating income		244,990			292,967
Insurance revenue		136,439			137,385
Interest income		92,036			N/A
Investment income		22,578			156,921

Including: Share of profit of associates and joint ventures		6,719			6,468

Other gains		129			148
Fair value gains/(losses)		(12,089	)		(8,104	)
Foreign exchange gains/(losses)		(195	)		214
Other operating income		6,060			6,333
Gains/(losses) on disposal of assets		32			70
2 Operating expenses		(213,333	)		(232,317	)
Insurance service expenses		(99,171	)		(95,987	)
Allocation of reinsurance premiums paid		(4,226	)		(3,552	)
Less: Amounts recovered from reinsurers		3,774			5,168
Insurance finance income/(expenses) from insurance contracts issued		(101,029	)		(109,899	)
Less: Reinsurance finance income/(expenses) from reinsurance contracts held		465			436
Interest expenses		(3,563	)		N/A
Underwriting and policy acquisition costs		(1,167	)		(1,052	)
Tax and surcharges		(795	)		(770	)
Administrative expenses		(4,454	)		(4,371	)
Expected credit losses		935			N/A
Impairment losses		N/A			(14,807	)
Other operating expenses		(4,102	)		(7,483	)

- 18 -

Income statement under the new standards for the third quarter of 2023 (unaudited) (continued)

RMB million (Unless otherwise stated)


ITEMS	For the nine months ended 30 September 2023 Group			For the nine months ended 30 September 2022 Group
				(Restated)
3 Operating profit		31,657			60,650

Add: Non-operating income		32			59
Less: Non-operating expenses		(298	)		(286	)

4 Profit before income tax		31,391			60,423

Less: Income tax expenses		5,168			(3,758	)

5 Net profit		36,559			56,665

According to operating continuity:
– Net profit from continuing operations		36,559			56,665
According to ownership of the company:
– Equity holders of the Company		35,541			55,514
– Non-controlling interests		1,018			1,151
6 Earnings per share
Basic earnings per share		RMB1.26			RMB1.96
Diluted earnings per share		RMB1.26			RMB1.96

- 19 -

Income statement under the new standards for the third quarter of 2023 (unaudited) (continued)


RMB million (Unless otherwise stated)

ITEMS	For the nine months ended 30 September 2023 Group			For the nine months ended 30 September 2022 Group
				(Restated)
7 Other comprehensive income		(13,421	)		(62,905	)

Other comprehensive income attributable to equity holders of the Company (net of tax)		(13,461	)		(62,802	)
Other comprehensive income that may be reclassified to profit or loss		(14,562	)		(62,626	)
Other comprehensive income that may be reclassified to profit or loss under the equity method		(813	)		(1,738	)
Changes in fair value of debt financial assets at fair value through other comprehensive income		48,006			N/A
Allowance for credit losses on debt financial assets at fair value through other comprehensive income		(479	)		N/A
Exchanges differences on translating foreign operations		597			648
Insurance finance income/(expenses) from insurance contracts issued		(62,288	)		(11,057	)
Reinsurance finance income/(expenses) from reinsurance contracts held		415			610
Fair value gains/(losses) on available-for-sale financial assets		N/A			(45,538	)
Less: Amount transferred to net profit from other comprehensive income		N/A			(5,551	)
Other comprehensive income that will not be reclassified to profit or loss		1,101			(176	)
Other comprehensive income that may not be transferred to profit or loss under the equity method		804			(176	)
Changes in fair value of equity financial assets at fair value through other comprehensive income		787			N/A
Insurance finance income/(expenses) from insurance contracts issued		(490	)		—
Other comprehensive income attributable to non-controlling interests (net of tax)		40			(103	)

8 Total comprehensive income		23,138			(6,240	)

– Attributable to equity holders of the Company		22,080			(7,288	)
– Attributable to non-controlling interests		1,058			1,048

- 20 -

This announcement is published in both Chinese and English. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.

By Order of the Board

China Life Insurance Company Limited

Heng Victor Ja Wei

Company Secretary

As at the date of this announcement, the Board of Directors of the Company comprises:


Executive Directors:		Bai Tao, Li Mingguang
Non-executive Directors:		Wang Junhui, Zhuo Meijuan
Independent Non-executive Directors:		Lam Chi Kuen, Zhai Haitao, Huang Yiping, Chen Jie

Beijing, China

26 October 2023

- 21 -