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Equibles

CILJF 6-K

China Life Insurance Co Ltd (CILJF)

6-K 2023-10-26 For: 2023-10-26
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Added on July 07, 2026

Commission File Number 001-31914

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report ofForeign Private Issuer

Pursuant to Rule 13a-16 or15d-16

of the Securities Exchange Act of 1934

October 26, 2023

China LifeInsurance Company Limited

(Translation of registrant’s name into English)

16 Financial Street

Xicheng District

Beijing100033, China

Tel: (86-10) 6363-3333

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F ☒   Form 40-F ☐

Commission File Number 001-31914

China Life Insurance Company Limited issued its 2023 Third Quarter Report on October 26, 2023, a copy of which is attached as Exhibit 99.1 hereto.

Certain statements contained in this report may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission, or SEC, on April 21, 2023 and in the Company’s other filings with the SEC. You should not place undue reliance on these forward-looking statements. All information provided in this report is as of the date of this report, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law. Unless otherwise indicated, the Chinese insurance market information set forth in this report is based on public information released by the National Administration of Financial Regulation.

EXHIBIT LIST

Exhibit Description
99.1 2023 Third Quarter Report, dated October 26, 2023

Commission File Number 001-31914

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

China Life Insurance Company Limited
(Registrant)
By: /s/ Li Mingguang
(Signature)
October 26, 2023 Name:<br> <br>Title: Li Mingguang<br> <br>Principal Executive Officer and<br>Executive Director

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)

2023THIRD 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<br>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<br>China Accounting Standards for Business Enterprises and are unaudited.
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• Mr. Bai Tao, Chairman of the Board of the Company, Ms. Hu Jin, Person in Charge of Finance and Head of<br>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 -
1. MAJOR FINANCIAL DATA
1.1 Major Accounting Data and Financial Indicators
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Currency: RMB

Items Asat30 September<br> <br>2023 As at 31 December 2022 Increase/(decrease)compared to31 December<br><br><br>2022
Total assets (million) 5,759,367 5,251,984 9.7 %
Equity attributable to equity holders of the<br>Company (million) 441,878 436,169 1.3 %
Items FortheReportingPeriod (from<br> <br>July to<br><br><br>September) For the correspondingperiod of 2022 Increase/(decrease)compared to thecorrespondingperiod of 2022 Forthenine months<br> <br>ended30 September<br><br><br>2023 For the correspondingperiod of 2022 Increase/(decrease)compared to thecorrespondingperiod of 2022
Afterrestatement Beforerestatement Afterrestatement Afterrestatement Beforerestatement 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<br>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<br>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<br>(million) N/A N/A N/A N/A 339,383 288,829 288,755 17.5 %
Earnings per share (basic and diluted) (RMBper 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<br>of 1.20<br>percentage<br>points 3.67 6.61 6.63 A decrease<br>of 2.94<br>percentage<br>points

Notes:

1. The financial data for the first three quarters of 2022 in this report have been restated due to a business<br>combination under common control in 2022.
2. In calculating the percentage change of “Earnings per share (basic and diluted)”, the tail<br>differences of the basic figures have been taken into account.
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  • 2 -
1.2 Non-recurring Items and Amounts

RMB million

Non-recurring items FortheReportingPeriod (from<br> <br>July to<br><br><br>September) For theninemonths<br> <br>ended30 September<br><br><br>2023
Gains/(losses) on disposal of non-current assets 7 19
Government subsidies recognised in current<br>gains/(losses) 14 61
External donations — (1 )
Net<br>non-operating income and expenses other than those mentioned above (95 ) (255 )
Effect of income tax 18 44
Attributable to<br>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<br>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<br>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<br>available-for-sale financial assets.
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  • 3 -
1.3 Particulars of and Reasons for Changes in Major Accounting Data and Financial Indicators

Currency: RMB

Items FortheReportingPeriod (from<br> <br>July to<br><br><br>September) Forthecorresponding<br> <br>period of<br><br><br>2022 (after<br><br><br>restatement) Increase/(decrease)compared to thecorresponding<br><br><br>period of<br> <br>2022 (after<br><br><br>restatement) For the ninemonths ended30 September<br><br><br>2023 Forthecorresponding<br> <br>period of2022 (after<br><br><br>restatement) Increase/(decrease)compared to thecorresponding<br><br><br>period of2022 (after<br><br><br>restatement) Main reasons
Net profit attributable to equity holders of<br>the Company (million) 53 5,669 -99.1 % 16,209 31,025 -47.8 % Due to the<br>impact of<br>the equity<br>market<br><br>staying<br>at the low<br>level, the<br>investment<br>income<br>declined<br>year on year
Net profit attributable to equity holders of<br>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) (RMBper share) — 0.20 -99.1 % 0.57 1.10 -47.8 % A<br>year-on-year<br>decrease<br>in<br>net profit<br>attributable<br>to equity<br>holders of<br>the<br>Company
Weighted average ROE (%) 0.01 1.21 A decrease of<br><br><br>1.20 percentage<br> <br>points 3.67 6.61 A decrease of<br><br><br>2.94 percentage<br> <br>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 asat the end of the Reporting Period Number of A<br>Share shareholders: 86,541
Number of H<br>Share shareholders: 24,491
Particulars of top ten shareholders of the Company Unit: Share
Name of shareholders Nature of shareholder Percentage ofshareholding Total number ofsharesheld as atthe end ofthe Reporting<br> <br>Period Numberofsharessubjectto selling<br> <br>restrictions Numberof sharespledgedor 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<br>Limited State-owned legal person 2.51 % 708,240,246 — —
Central Huijin Asset Management<br>Limited State-owned legal person 0.41 % 117,165,585 — —
Hong Kong Securities Clearing Company<br>Limited Overseas legal person 0.13 % 37,261,949 — —
Industrial and Commercial Bank of China Limited<br>– SSE 50 Exchange Traded Index Securities Investment Fund Other 0.06 % 15,977,103 — —
Guosen Securities Co., Ltd. – Founder<br>Fubon CSI Insurance Theme Index Securities Investment Fund Other 0.05 % 13,226,012 — —
National Social Security Fund Portfolio<br>114 Other 0.04 % 12,000,000 — —
Industrial and Commercial Bank of China Limited<br>– Huatai-PineBridge CSI 300 Exchange Traded Index Securities Investment Fund Other 0.04 % 10,748,933 — —
China International Television<br>Corporation State-owned legal person 0.04 % 10,000,000 — —

Notes:

1. HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong Kong stock brokers<br>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<br>calculate or provide the number of shares that are pledged or frozen.
2. Both Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment<br>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<br>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 businesses^1^ 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 rate^2^ 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 income^3^ of RMB109,997

^1^ Revenues from insurance businesses is consistent with Premium Income in the attached consolidated income<br>statement.
^2^ Surrender Rate = Surrender payment/(Opening balance of life insurance reserves and long-term health insurance<br>reserves + Premiums from life insurance and long-term health insurance)
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^3^ Gross investment income = Net investment income + Net realised gains on investment assets + Fair value<br>gains/losses – Impairment losses of investment assets
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  • 6 -

million and gross investment yield^4^ was 2.81%. The net investment income^5^ was RMB148,340 million and the net investment yield^6^ was 3.81%. Fourthly, the solvency ratios of theCompany 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<br>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<br>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,<br>net income from investment properties, and income from investments in associates and joint ventures, etc.
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^6^ Net investment yield = [(Net investment income – Interest paid for financial assets sold under agreements<br>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<br>agreements to repurchase at the end of the period)/2)]/273×365
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  • 7 -
4. QUARTERLY FINANCIAL STATEMENTS

Balance sheet as at 30 September 2023 (unaudited)

RMB million (Unless otherwise stated)
ASSETS As at30 September<br><br><br>2023<br> <br>Group As at31 December<br><br><br>2022<br> <br>Group As at30 September<br><br><br>2023<br> <br>Company As at31 December<br><br><br>2022<br> <br>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<br>financial assets 2,043,774 1,738,108 1,932,742 1,644,704
Held-to-maturity<br>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<br>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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>Department
  • 8 -

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

RMB million (Unless otherwise stated)
LIABILITIES AND EQUITY As at<br><br><br>30 September2023<br><br><br>Group As at31 December2022<br><br><br>Group As at30 September2023Company As at31 December2022Company
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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>Department
  • 9 -

Income statement for the third quarter of 2023 (unaudited)

RMB million (Unless otherwise stated)
For the nine months<br><br><br>ended 30 September For the nine months<br><br><br>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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>Department
  • 10 -

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

RMB million (Unless otherwise stated)
For the nine months<br><br><br>ended 30 September For the nine months<br><br><br>ended 30 September
2023 2022 2023 2022
ITEMS Group Group Company Company
(Restated)
3 Operating profit **** 6,227 **** **** 28,088 **** **** 3,509 **** **** 29,471 ****
Add: Non-operating income 32 59 28 55
Less: Non-operating expenses (298 ) (286 ) (296 ) (285 )
4 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
5 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
6 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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>Department
  • 11 -

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

RMB million (Unless otherwise stated)

For the nine months<br><br><br>ended 30 September For the nine months<br><br><br>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<br>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<br>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<br>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<br>method 876 (176 ) 868 (262 )
Other comprehensive income attributable to non-controlling<br>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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>Department
  • 12 -

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

RMB million (Unless otherwise stated)

For the nine months<br><br><br>ended 30 September For the nine months<br><br><br>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 operatingactivities **** 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 operatingactivities **** (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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>Department
  • 13 -

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

RMB million (Unless otherwise stated)

For the nine months<br><br><br>ended 30 September For the nine months<br><br><br>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<br>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 investingactivities **** 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 investingactivities **** (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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>Department
  • 14 -

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

RMB million (Unless otherwise stated)

For the nine months<br><br><br>ended 30 September For the nine months<br><br><br>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<br>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 financingactivities **** 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 financingactivities **** (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 cashequivalents **** 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<br><br><br>Representative Person in charge of<br><br><br>Accounting Affairs Temporary<br><br><br>Chief Actuary Head of Financial<br><br><br>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), ASBENo. 26 – Reinsurance Contracts (Caikuai [2006] No. 3), Regulations regarding the Accounting Treatment of Insurance Contracts (Caikuai [2009] No. 15), ASBE No. 22 – Recognitionand 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 FinancialAssets (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 andMeasurement 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 at30 September<br><br><br>2023<br> <br>Group As at31 December<br><br><br>2022<br> <br>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<br>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<br>financial assets N/A 1,738,108
Held-to-maturity<br>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<br>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 at30 September<br><br><br>2023<br> <br>Group As at31 December<br><br><br>2022<br> <br>Group
(Restated)
Liabilities
Financial liabilities at fair value through profit or loss N/A 3,344
Held-for-trading<br>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 ninemonths ended30 September<br><br><br>2023<br> <br>Group For the ninemonths ended30 September<br><br><br>2022<br> <br>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 ninemonths ended30 September<br><br><br>2023<br> <br>Group For the ninemonths ended30 September<br><br><br>2022<br> <br>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 ninemonths ended30 September<br><br><br>2023<br> <br>Group For the ninemonths ended30 September<br><br><br>2022<br> <br>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<br>method (813 ) (1,738 )
Changes in fair value of debt financial assets at fair value through other comprehensive<br>income 48,006 N/A
Allowance for credit losses on debt financial assets at fair value through other comprehensive<br>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<br>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<br>method 804 (176 )
Changes in fair value of equity financial assets at fair value through other comprehensive<br>income 787 N/A
Insurance finance income/(expenses) from insurance contracts issued (490 ) —
Other comprehensive income attributable to non-controlling<br>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 betweenthe Chinese and English versions, the Chinese version shall prevail.

By Order of the Board
China Life Insurance Company Limited<br><br><br>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 -
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