EX-99.1 2 c99812exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
EXHIBIT 99.1
Commission File Number 001-31914
(CHINESE CHARACTER)

CHINA LIFE INSURANCE COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 2628)
2010 FIRST QUARTER REPORT
This announcement is made by China Life Insurance Company Limited pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The financial data of the Company for the first quarter of 2010 have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited. Net profit attributable to shareholders of the Company and shareholders’ equity attributable to shareholders of the Company in the consolidated financial statements are identical to the relevant data under International Financial Reporting Standards.
1.       Important Notice
  1.1  
The Company’s Board of Directors, the Supervisory Committee, its Directors, Supervisors and Senior Management warrant that there are no false representations, misleading statements or material omissions in this report, and jointly and severally accept full responsibility for the authenticity, accuracy and completeness of the information contained in this report.
  1.2  
Of the eleven Directors of the Company, ten attended the Board Meeting. Non-executive Director Ms. Zhuang Zuojin was on leave and gave written authorization to Non-executive Director Mr. Shi Guoqing to act as proxy to attend and vote at the meeting.
  1.3  
The Company’s 2010 first quarter financial report is unaudited. Unless otherwise stated, financial data in the income statement and cash flow statement for the same period of 2009 were restated based on the changed accounting policies of the Company.

 

 

 

Commission File Number 001-31914
  1.4  
Mr. Yang Chao, Chairman of the Company, Mr. Liu Jiade, Vice President in charge of financial affairs, Ms. Hwei-Chung Shao, Chief Actuary and Mr. Yang Zheng, Head of the Financial Department, confirm that the financial reports in this 2010 first quarter report are true and complete.
2.      Basic Information of the Company
  2.1  
Major accounting data and financial indicators
(Currency: RMB)
                         
                    Increase/(decrease)  
    As at     As at     compared to  
    31 March 2010     31 December 2009     31 December 2009  
Total assets (million)
     1,281,438       1,226,257       4.5 %
Shareholders’ equity attributable to shareholders of the Company (million)
     217,424       211,072       3.0 %
Net assets per share attributable to shareholders of the Company (RMB per share)
     7.69       7.47       3.0 %
                 
            Increase/(decrease)  
    For the three months ended     compared to the  
    31 March 2010     same period of 2009  
Net cash flows from operating activities (million)
     78,597       48.9 %
Net cash flows per share from operating activities (RMB per share)
     2.78       48.9 %
                                 
            For the three months     Increase/(decrease)  
    For the Reporting     ended 31 March 2009     compared to the  
    Period (from January to     After     Before     same period of 2009  
    March)     restatement     restatement     (as restated)  
Net profit attributable to shareholders of the Company (million)
     10,214       6,131       5,387       66.6 %
Basic earnings per share (RMB per share)
     0.36       0.22       0.19       66.6 %
Basic earnings per share after deducting non-recurring items (RMB per share)
     0.36       0.22       0.19       66.9 %
Diluted earnings per share (RMB per share)
     0.36       0.22       0.19       66.6 %
Weighted average ROE (%)
     4.77       3.41       3.84     Increase of 1.36 percentage points
Weighted average ROE after deducting non-recurring items (%)
     4.77       3.40       3.83     Increase of 1.37 percentage points

 

2

 

Commission File Number 001-31914
Note:  
The data and indicators relating to shareholders’ equity refer to shareholders’ equity attributable to shareholders of the Company. The data and indicators relating to net profit refer to net profit attributable to shareholders of the Company.
As at 31 March 2010, investment assets of the Company were RMB 1,209,742 million. For the three months ended 31 March 2010, the gross investment yield was 1.47% (or 5.95% if annualized, the simple annualized gross investment yield = (the gross investment yield for the three months ended 31 March 2010/90)×365), the policy surrender rate was 0.66%, and premiums earned reached RMB 109,990 million (the restated data for the corresponding period of 2009 was RMB 96,373 million), with a growth rate of 14.1%.
Deducting Non-recurring Items and Amount
RMB Million
         
    For the three months ended  
Non-recurring items   31 March 2010  
Gains/(losses) on disposal of non-current assets
     5  
Net non-operating income and expenses other than those mentioned above
     (4 )
Effect of income tax expenses
     —  
Total
     1  
Note:  
As an insurance company, investment (utilization of insurance funds) is one of the main businesses of the Company. Therefore, the non-recurring items do not include fair-value gains/(losses) from held-for-trading financial assets and liabilities, as well as investment income from the disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets.

 

3

 

Commission File Number 001-31914
  2.2  
Total number of shareholders and the top ten shareholders of shares not subject to trading restrictions as at the end of the reporting period
     
The total number of shareholders at the end of the reporting period
  Number of A share holders: 227,922
Number of H share holders: 36,599
Particulars of the top ten holders of shares not subject to trading restrictions
                 
    Number of listed shares        
    not subject to trading        
    restrictions held as at        
    the end of the        
Name of shareholder (Full name)   reporting period     Type  
China Life Insurance (Group) Company
     19,323,530,000     A shares
HKSCC NOMINEES LIMITED
     7,268,050,358     H shares
State Development & Investment Corporation
     49,800,000     A shares
BOCOM-BOSERA Emerging Growth Stock Securities Investment Fund
     31,499,580     A shares
China National Investment & Guaranty Co., Ltd
     29,450,014     A shares
ICBC-BOSERA Third Industry Growth Stock Securities Investment Fund
     28,499,926     A shares
IFC-Standard Chartered-CITIGROUP GLOBAL MARKETS LIMITED
     27,132,961     A shares
DEUTSCHE BANK AKTIENGESELLSCHAFT
     22,706,611     A shares
China Pacific Life Insurance Co., Ltd.-Tradition- Ordinary Insurance Products
     22,136,682     A shares
ICBC-Lion Stock Securities Investment Fund
     22,071,056     A shares

 

4

 

Commission File Number 001-31914
3.      Significant Events
  3.1  
Particulars of, and reasons for, material changes in major accounting items and financial indicators of the Company
     
þ Applicable                      o Not applicable
  (1)  
Changes in key financial indicators and its reasons
RMB million
                             
    As at     As at            
    31 March     31 December     Increase/      
Key Financial Indicators   2010     2009     (decrease)     Main reasons
Total assets
     1,281,438       1,226,257       4.5 %   Continuous growth of insurance business
Total liabilities
     1,062,272       1,013,481       4.8 %   Increase in insurance reserves
Shareholders’ equity attributable to shareholders of the Company
     217,424       211,072       3.0 %   Steady growth of insurance business and investment income resulting in increase of the Company’s overall profit
RMB million
                             
    For the three     For the three            
    months ended     months ended     Increase/      
Key Financial Indicators   31 March 2010     31 March 2009     (decrease)     Main reasons
Operating profit
     12,374       7,483       65.4 %   Steady growth of insurance business and investment income resulting in increase of the Company’s overall profit
Net profit attributable to shareholders of the Company
     10,214       6,131       66.6 %   Steady growth of insurance business and investment income resulting in increase of the Company’s overall profit

 

5

 

Commission File Number 001-31914
  (2)  
Material changes in major accounting items and its reasons
RMB million
                             
    As at     As at            
    31 March     31 December     Increase/      
Key Financial Indicators   2010     2009     (decrease)     Main reasons
Cash and cash equivalents
     55,632       36,176       53.8 %   Increase in investment assets and assets allocation rebalancing
Held-for-trading financial assets
     4,223       9,102       –53.6 %   Sale of part of held-for-trading financial assets
Securities purchased under agreements to resell
     19,208       —       N/A     Assets allocation rebalancing
Premiums receivables
     12,252       6,818       79.7 %   Accumulation of renewal premiums
Long-term equity investments
     16,713       8,470       97.3 %   New long-term equity investment project
Financial assets sold under agreements to repurchase
     —       33,553       –100 %   Assets allocation rebalancing
RMB million
                             
    For the three     For the three            
    months ended     months ended     Increase/      
Key Financial Indicators   31 March 2010     31 March 2009     (decrease)     Main reasons
Unearned premium reserves
     281       810       –65.3 %   The variation of the pace of development of short-term insurance business
Investment income
     18,339       11,711       56.6 %   Increase in equity investment income and dividends from securities investment funds
Fair value gains/(losses)
     (340 )     841       –140.4 %   Impact of capital market fluctuation
Other operating income
     728       550       32.4 %   Increase in business income of the Company’s subsidiaries, etc.
Claims expense
     14,921       23,893       –37.6 %   Decrease in maturity benefits
Increase of insurance reserve
     77,868       56,020       39.0 %   Increase in insurance business and decrease in maturity benefits
Policyholder dividends
     4,065       2,096       93.9 %   Increase in investment yield for participating products and the growth of participating insurance business
Business tax and surcharges expense
     1,059       188       463.3 %   Increase in insurance business tax and surcharges
Impairment losses
     13       2,237       –99.4 %   Decrease in assets which meet the condition of impairment losses
Income tax expenses
     2,123       1,345       57.8 %   Increase in taxable income
Other comprehensive income/(loss)
     (3,862 )     5,608       –168.9 %   Impact of capital market fluctuation

 

6

 

Commission File Number 001-31914
  3.2  
Explanation and analysis of significant events and their impacts and solutions
     
o Applicable                      þ Not applicable
  3.3  
Implementation of undertakings by the Company, its shareholders and de facto controller
     
þ Applicable                      o Not applicable
1.  
As the controlling shareholders of the Company, China Life Insurance (Group) Company (“CLIC”) undertook not to transfer or entrust others to manage their direct and indirect holdings in the Company, nor allow the Company to repurchase such shares for a period of 36 months from the date of listing of the Company’s A Shares. CLIC strictly followed these commitments during the Reporting Period. The lock-up of the 19,323,530,000 shares held by CLIC has expired on 11 January 2010. According to the “Implementation Measures in relation to the Transfer of certain State-owned Shares on the Domestic Stock Market to enrich the National Social Security Fund Policy” and Notice No. 63, jointly promulgated by the Ministry of Finance of PRC, the State-owned Assets Supervision and Administration Commission, the China Securities Regulatory Commission and the National Social Security Fund Council, 150,000,000 shares of the Company held by CLIC have been frozen in accordance with the law. The Company received a written notification from CLIC informing the Company that CLIC will fulfill its obligation to transfer the state-owned shares through payment of funds, and thereby continue to hold the shares. CLIC will commence procedures for un-freezing those shares after payment of the funds.
2.  
Prior to the listing of the Company’s A Shares (30 November 2006), land use rights were injected by CLIC into the Company during its reorganization. Out of these, four pieces of land (with a total area of 10,421.12 m2) had not had its formalities in relation to the change of ownership completed. Further, out of the properties injected into the Company, there were six properties (with a gross floor area of 8,639.76 m2) in respect of which the formalities in relation to the change of ownership had not been completed. CLIC undertook to complete the abovementioned formalities within 1 year of the date of listing of the Company’s A Shares, and in the event such formalities could not be completed within such period, CLIC would bear any potential losses to the Company in relation thereto. CLIC strictly followed these commitments. As at the end of the Reporting Period, save for the two properties and related lands of the Company’s Shenzhen Branch, all other formalities in relation to the change of land and property ownership have been completed. The Shenzhen Branch of the Company continues to use such property and land, and no other parties have questioned or hindered the use of such property and land by the Company.

 

7

 

Commission File Number 001-31914
3.  
China Life-CMG Life Assurance Company Limited, previously a subsidiary of CLIC, was a sino-foreign joint venture established on 4 July 2000, and had been owned as to 51% by CLIC and as to 49% by CMG Group of Australia. The business scope of China Life-CMG Life is to conduct the following businesses (excluding statutory insurance business) within the administrative district of Shanghai municipality and in the provinces, autonomous regions and municipalities where it has established branches: (1) insurance business such as life insurance, health insurance and accident and casualty insurance; (2) re-insurance of the above insurance businesses. CLIC undertook to sell all of its equity interests in China Life-CMC Life to a third party within three years after the listing of the Company on the Hong Kong Stock Exchange, or to take other measures to eliminate any competition between China Life-CMG Life and the Company.
   
On 27 January 2010, CLIC transferred its 51% equity interests in China Life-CMG Life to the Bank of Communications Co., Ltd. with the approval of the Ministry of Finance of the PRC, the State Administration for Industry and Commerce and the China Insurance Regulatory Commission. As a result, China Life-CMG Life Assurance Company Ltd. was formally renamed as BoCommLife Insurance Company Limited, and CLIC had thereby fulfilled its undertaking.
  3.4  
Warnings and explanation for any significant changes in net profit or cumulative loss from the beginning of the year to the end of the next reporting period as compared to the same period of last year
     
o Applicable                     þ Not applicable
  3.5  
The implementation of cash dividend policy during the reporting period
 
     
o Applicable                     þ Not applicable
This announcement is published in both Chinese and English languages. The Chinese version announcement shall prevail.
     
 
  By Order of the Board of
 
  China Life Insurance Company Limited
 
  Heng Kwoo Seng
 
  Company Secretary
As at the date of this announcement, the Board of Directors of the Company comprises:
     
Executive Directors:
  Yang Chao, Wan Feng, Lin Dairen, Liu Yingqi
Non-executive Directors:
  Miao Jianmin, Shi Guoqing, Zhuang Zuojin
Independent Non-executive Directors:
  Sun Shuyi, Ma Yongwei, Sun Changji, Bruce Douglas Moore
 
    
Hong Kong, 28 April 2010
    

 

8

 

Commission File Number 001-31914
4.      APPENDIX
  4.1  
Balance sheet as at 31 March 2010 (unaudited)
RMB million (Unless otherwise stated)
                                 
    As at     As at     As at     As at  
    31 March     31 December     31 March     31 December  
    2010     2009     2010     2009  
ASSETS   Group     Group     Company     Company  
 
Assets
                                
Cash and cash equivalents
     55,632       36,176       54,332       35,561  
Held-for-trading financial assets
     4,223       9,102       4,205       9,082  
Securities purchased under agreements to resell
     19,208       —       19,208       —  
Interest receivables
     15,746       14,199       15,670       14,111  
Premiums receivables
     12,252       6,818       12,252       6,818  
Receivable from reinsurers
     21       17       21       17  
Unearned premium reserves receivable from reinsurers
     60       83       60       83  
Claim reserves receivable from reinsurers
     20       31       20       31  
Reserves for life insurance receivables from reinsurers
     9       9       9       9  
Reserves for long-term health insurance receivables from reinsurers
     690       692       690       692  
Policy loans
     15,960       13,831       15,960       13,831  
Debt plan investments
     9,250       9,250       9,200       9,200  
Other receivables
     4,029       1,892       3,992       1,846  
Term deposits
     372,508       344,983       372,008       343,483  
Available-for-sale financial assets
     485,267       517,499       482,152       514,055  
Held-to-maturity investments
     241,540       235,099       241,533       235,092  
Long-term equity investments
     16,713       8,470       20,578       12,335  
Statutory deposits
     6,154       6,153       5,653       5,653  
Constructions in progress
     1,305       3,536       1,305       3,336  
Fixed assets
     15,908       13,511       15,388       13,184  
Intangible assets
     3,371       3,402       3,343       3,372  
Other assets
     1,495       1,452       1,491       1,447  
Separate account assets
     77       52       77       52  
 
                        
 
Total Assets
     1,281,438       1,226,257       1,279,147       1,223,290  
 
                        
             
Yang Chao   Liu Jiade   Hwei-Chung Shao   Yang Zheng
Chairman
  Vice President   Chief Actuary   Head of the
 
  in charge of       Financial
 
  Accounting Affairs       Department

 

9

 

Commission File Number 001-31914
  4.1  
Balance sheet as at 31 March 2010 (unaudited) (continued)
RMB million (Unless otherwise stated)
                                 
    As at     As at     As at     As at  
    31 March     31 December     31 March     31 December  
    2010     2009     2010     2009  
LIABILITIES AND EQUITY   Group     Group     Company     Company  
 
Liabilities
                                
Financial assets sold under agreements to repurchase
     —       33,553       —       32,810  
Premiums received in advance
     2,033       1,804       2,033       1,804  
Brokerage and commission payable
     2,029       1,320       2,029       1,320  
Reinsurance payable
     34       30       34       30  
Salary and welfare payable
     4,068       4,447       3,878       4,287  
Taxes payable
     5,264       4,206       5,240       4,195  
Claims payable
     7,521       5,721       7,521       5,721  
Policyholder dividends payable
     55,615       54,587       55,615       54,587  
Other payable
     2,218       3,078       2,265       3,074  
Policyholder deposits
     69,412       67,274       69,412       67,274  
Unearned premium reserves
     6,254       5,997       6,254       5,997  
Claim reserves
     2,975       2,944       2,975       2,944  
Reserves for life insurance
     880,343       802,895       880,343       802,895  
Reserves for long-term health insurance
     6,717       6,328       6,717       6,328  
Deferred tax liabilities
     14,657       16,361       14,673       16,377  
Other liabilities
     3,055       2,884       3,055       2,882  
Separate account liabilities
     77       52       77       52  
 
                        
 
                                
Total liabilities
     1,062,272       1,013,481       1,062,121       1,012,577  
 
                        
 
                                
Shareholders’ equity
                                
Share capital
     28,265       28,265       28,265       28,265  
Capital reserve
     70,800       74,662       70,745       74,598  
Reserve fund
     18,490       18,490       18,442       18,442  
General reserve
     9,636       9,636       9,636       9,636  
Retained earnings
     90,234       80,020       89,938       79,772  
Exchange differences from translating foreign operating
     (1 )     (1 )     —       —  
 
                        
 
                                
Total equity attributable to shareholders of the Company
     217,424       211,072       217,026       210,713  
 
                        
 
                                
Minority interests
     1,742       1,704       —       —  
 
                        
 
                                
Total shareholders’ equity
     219,166       212,776       217,026       210,713  
 
                        
 
                                
Total liabilities and shareholders’ equity
     1,281,438       1,226,257       1,279,147       1,223,290  
 
                        
             
Yang Chao
Chairman
  Liu Jiade
Vice President
in charge of
Accounting Affairs 		  Hwei-Chung Shao
Chief Actuary 		  Yang Zheng
Head of the
Financial
Department

 

10

 

  4.2  
Income statement for the three months ended 31 March 2010 (unaudited)
RMB million (Unless otherwise stated)
                                 
    For the three months     For the three months  
    ended 31 March     ended 31 March  
    2010     2009     2010     2009  
    Group     Group     Company     Company  
            (restated)             (restated)  
 
1. Operating income
     128,733       109,477       128,563       109,399  
Premiums earned
     109,990       96,373       109,990       96,373  
Premium income
     110,299       97,213       110,299       97,213  
Including: reinsurance premium income
     —       1       —       1  
Less: Premiums ceded to reinsurers
     (28 )     (30 )     (28 )     (30 )
Unearned premium reserves
     (281 )     (810 )     (281 )     (810 )
Investment income
     18,339       11,711       18,275       11,672  
Including: share of results of associates
     400       248       400       248  
Fair value gains/(losses)
     (340 )     841       (338 )     838  
Foreign exchange gains/(losses)
     16       2       16       2  
Other operating income
     728       550       620       514  
2. Operating expenses
     (116,359 )     (101,994 )     (116,311 )     (101,993 )
Surrenders
     (6,090 )     (6,926 )     (6,090 )     (6,926 )
Claims expense
     (14,921 )     (23,893 )     (14,921 )     (23,893 )
Less: claims recoverable from reinsurers
     18       17       18       17  
Increase in insurance contracts reserve
     (77,868 )     (56,020 )     (77,868 )     (56,020 )
Less: insurance reserves recoverable from reinsurers
     (13 )     (3 )     (13 )     (3 )
Policyholder dividends
     (4,065 )     (2,096 )     (4,065 )     (2,096 )
Business tax and surcharges expense
     (1,059 )     (188 )     (1,046 )     (181 )
Underwriting and policy acquisition costs
     (7,491 )     (6,227 )     (7,491 )     (6,227 )
Administrative expenses
     (4,141 )     (3,767 )     (4,013 )     (3,665 )
Less: expenses recoverable from reinsurers
     5       6       5       6  
Other operating expenses
     (721 )     (660 )     (814 )     (768 )
Impairment losses
     (13 )     (2,237 )     (13 )     (2,237 )
3. Operating profit
     12,374       7,483       12,252       7,406  
Add: Non-operating income
     10       48       10       48  
Less: Non-operating expenses
     (9 )     (31 )     (9 )     (31 )
4. Net profit before income tax expenses
     12,375       7,500       12,253       7,423  
Less: Income tax expenses
     (2,123 )     (1,345 )     (2,087 )     (1,326 )
5. Net profit
     10,252       6,155       10,166       6,097  
6. Attributable to:
                                
— shareholders of the Company
     10,214       6,131                  
— minority interests
     38       24                  
7. Earnings per share
                                
Basic earnings per share
     RMB0.36       RMB0.22                  
Diluted earnings per share
     RMB0.36       RMB0.22                  
8. Other comprehensive income/(loss)
     (3,862 )     5,608       (3,853 )     5,553  
9. Total comprehensive income/(loss)
     6,390       11,763       6,313       11,650  
— shareholders of the Company
     6,352       11,729                  
— minority interests
     38       34                  
             
Yang Chao
Chairman
  Liu Jiade
Vice President
in charge of
Accounting Affairs 		  Hwei-Chung Shao
Chief Actuary 		  Yang Zheng
Head of the
Financial
Department

 

11

 

  4.3  
Cash flow statement for the three months ended 31 March 2010 (unaudited)
                                 
    RMB million (Unless otherwise stated)  
 
    For the three months     For the three months  
    ended 31 March     ended 31 March  
    2010     2009     2010     2009  
    Group     Group     Company     Company  
            (restated)             (restated)  
 
                                
1. Cash flows from operating activities
                                
Premiums received
     104,730       92,301       104,730       92,301  
Net cash from reinsurance business
     —       120       —       120  
Net increase in policyholder investments and agency business liabilities
     2,181       —       2,181       —  
Net cash from securities at fair value through income
     4,714       1,162       4,717       1,142  
Cash received from other operating activities
     1,212       1,171       1,012       740  
 
                        
 
                                
Sub-total of cash inflows from operating activities
     112,837       94,754       112,640       94,303  
 
                        
 
                                
Cash paid for claims
     (19,210 )     (28,672 )     (19,210 )     (28,672 )
Net cash paid for reinsurance business
     (5 )     —       (5 )     —  
Net decrease in policyholder investments and agency business liabilities
     —       (666 )     —       (666 )
Cash paid for brokerage and commission fees
     (6,781 )     (6,187 )     (6,781 )     (6,187 )
Cash paid for policyholder dividends
     (1,100 )     (2,201 )     (1,100 )     (2,201 )
Cash paid to and for employees
     (2,424 )     (2,074 )     (2,383 )     (2,039 )
Cash paid for taxes and surcharges
     (1,852 )     (492 )     (1,822 )     (481 )
Cash paid for other operating activities
     (2,868 )     (1,662 )     (2,782 )     (1,416 )
 
                        
 
                                
Sub-total of cash outflows from operating activities
     (34,240 )     (41,954 )     (34,083 )     (41,662 )
 
                        
 
                                
Net cash flows from operating activities
     78,597       52,800       78,557       52,641  
 
                        
             
Yang Chao
Chairman
  Liu Jiade
Vice President
in charge of
Accounting Affairs 		  Hwei-Chung Shao
Chief Actuary 		  Yang Zheng
Head of the
Financial
Department

 

12

 

  4.3  
Cash flow statement for the three months ended 31 March 2010 (unaudited) (continued)
                                 
    RMB million (Unless otherwise stated)  
 
    For the three months     For the three months  
    ended 31 March     ended 31 March  
    2010     2009     2010     2009  
    Group     Group     Company     Company  
            (restated)             (restated)  
 
2. Cash flows from investing activities
                                
Cash received from sales and redemption of investments
     114,891       59,099       112,640       58,092  
Cash received from investment income
     10,829       8,383       10,776       8,363  
Net cash received from disposals of fixed assets, intangible assets and other long-term assets
     26       58       25       58  
 
                        
 
                                
Sub-total of cash inflows from investing activities
     125,746       67,540       123,441       66,513  
 
                        
 
                                
Cash paid for investments
     (129,353 )     (100,261 )     (128,440 )     (99,814 )
Net increase in policy loans
     (2,264 )     (790 )     (2,264 )     (790 )
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
     (474 )     (531 )     (471 )     (284 )
Net cash from securities purchased under agreements to resell
     (19,190 )     —       (19,190 )     —  
 
                        
 
                                
Sub-total of cash outflows from investing activities
     (151,281 )     (101,582 )     (150,365 )     (100,888 )
 
                        
 
                                
Net cash flows from investing activities
     (25,535 )     (34,042 )     (26,924 )     (34,375 )
 
                        
 
                                
3. Cash flows from financing activities
                                
Net proceeds from investment in securities sold under agreements to repurchase
     —       4,574       —       3,868  
 
                        
 
                                
Sub-total of cash inflows from financing activities
     —       4,574       —       3,868  
 
                        
 
                                
Net cash paid for securities sold under agreements to repurchase
     (33,605 )     —       (32,861 )     —  
 
                        
 
                                
Sub-total of cash outflows from financing activities
     (33,605 )     —       (32,861 )     —  
 
                        
 
                                
Net cash flows from financing activities
     (33,605 )     4,574       (32,861 )     3,868  
 
                        
             
Yang Chao
Chairman
  Liu Jiade
Vice President
in charge of
Accounting Affairs 		  Hwei-Chung Shao
Chief Actuary 		  Yang Zheng
Head of the
Financial
Department

 

13

 

  4.3  
Cash flow statement for the three months ended 31 March 2010 (unaudited) (continued)
                                 
    RMB million (Unless otherwise stated)  
 
    For the three months     For the three months  
    ended 31 March     ended 31 March  
    2010     2009     2010     2009  
    Group     Group     Company     Company  
            (restated)             (restated)  
 
4. Effect of changes in foreign exchange rate on cash and cash equivalents
     (5 )     2       (5 )     2  
 
                        
 
                                
5. Net increase/(decrease) in cash and cash equivalents
     19,452       23,334       18,767       22,136  
 
                        
 
                                
Add: Opening balance of cash and cash equivalents
     36,197       34,085       35,582       33,934  
 
                        
 
                                
6. Closing balance of cash and cash equivalents
     55,649       57,419       54,349       56,070  
 
                        
             
Yang Chao
Chairman
  Liu Jiade
Vice President
in charge of
Accounting Affairs 		  Hwei-Chung Shao
Chief Actuary 		  Yang Zheng
Head of the
Financial
Department

 

14