Ping An Insurance (Group) Company Of China Ltd(601318) (incorporated in the people's Republic of China) audited financial statements for 2021
catalogue
Audited financial statements page 8-1
Consolidated balance sheet 9-11 consolidated income statement 12-13 consolidated statement of changes in shareholders' equity 14-15 consolidated cash flow statement 16-17 company balance sheet 18 company's income statement 19 company's statement of changes in shareholders' equity 20-21 company's cash flow statement 22 notes to financial statements 23-201 appendix: Supplementary information to financial statements
1. Non recurring income statement A-1 2 Reconciliation of differences between Chinese accounting standards and international financial reporting standards A-2 3 Return on net assets and earnings per share A-3
Ping An Insurance (Group) Company Of China Ltd(601318)
Notes to financial statements
Year 2021
(unless otherwise specified, the monetary unit is RMB million) I. Basic information of the group
Ping An Insurance (Group) Company Of China Ltd(601318) (hereinafter referred to as "the company") is a joint stock limited company registered in Shenzhen, Guangdong Province, the people's Republic of China. It was approved to be established on March 21, 1988. The overseas listed foreign shares (hereinafter referred to as "H shares") and RMB common shares A-Shares issued by the company have been listed on the stock exchange of Hong Kong Limited (hereinafter referred to as "Hong Kong Stock Exchange") and Shanghai Stock Exchange respectively. The headquarters of the company is located on floors 47, 48, 109, 110, 111 and 112 of Ping An financial center, 5033 Yitian Road, Futian District, Shenzhen, Guangdong Province. The company and its subsidiaries (collectively referred to as "the group") are mainly engaged in the financial industry and provide diversified financial products and services. Their business scope includes life insurance business, property insurance business, trust business, securities business, banking business and other businesses.
The company was initially established as "Shenzhen Ping An insurance company", and began to engage in property insurance business mainly in Shenzhen. With the expansion of business area, the company changed its name to " Ping An Insurance (Group) Company Of China Ltd(601318) insurance company" in 1992, began to engage in life insurance business in 1994, and changed its name to " Ping An Insurance (Group) Company Of China Ltd(601318) Insurance Co., Ltd." in 1997.
According to the relevant Reply of the former China Insurance Regulatory Commission (hereinafter referred to as "the former China Insurance Regulatory Commission") on the company's separate operation, the company was renamed " Ping An Insurance (Group) Company Of China Ltd(601318) " in 2002, As investors, the company established and held shares of Ping An Insurance (Group) Company Of China Ltd(601318) Property Insurance Co., Ltd. (hereinafter referred to as "Ping An Property Insurance") and Ping An Insurance (Group) Company Of China Ltd(601318) Life Insurance Co., Ltd. (hereinafter referred to as "Ping An Life Insurance"). Ping An Property Insurance and Ping An Life Insurance are respectively established on the basis of the original property insurance business and personnel of the company and the original life insurance business and personnel. The company changed its name on January 24, 2003.
The business scope of the company is: investment in financial and insurance enterprises; Supervise and manage various Chinese and international businesses of holding and investment enterprises; Carry out fund application business.
See note VI for the main subsidiaries and structured entities included in the consolidation scope this year.
The financial statements have been approved by the board of directors of the company on March 17, 2022. According to the articles of association, the financial statements will be submitted to the general meeting of shareholders for deliberation. 2、 Preparation basis of financial statements
The financial statements are prepared in accordance with the accounting standards for business enterprises - Basic Standards issued by the Ministry of Finance and the specific accounting standards, application guidelines issued and revised later Interpretation and other relevant provisions (hereinafter collectively referred to as "accounting standards for business enterprises") and the disclosure provisions of China Securities Regulatory Commission (hereinafter referred to as "CSRC") No. 15 rules for the preparation of information disclosure of companies offering securities to the public - General Provisions on financial reports.
The financial statements are presented on a going concern basis.
When preparing the financial statements, except for some financial instruments and insurance liability reserves, the valuation principle is historical cost. If an asset is impaired, the corresponding impairment provision shall be withdrawn in accordance with relevant regulations. 3、 Statement of compliance with accounting standards for business enterprises
The financial statements comply with the requirements of the accounting standards for business enterprises and truly and completely reflect the financial position of the group and the company on December 31, 2021 and the operating results and cash flow of the company in 2021 (hereinafter referred to as "the year").
Ping An Insurance (Group) Company Of China Ltd(601318)
Notes to financial statements (Continued)
Year 2021
(unless otherwise specified, the monetary unit is RMB million) IV. important accounting policies and accounting estimates
The Group determines specific accounting policies and accounting estimates according to the operating characteristics, which are mainly reflected in financial instruments (notes IV and 8), classification of insurance contracts (notes IV and 21), reserves for insurance contracts (notes IV and 22), revenue recognition principles (notes IV and 32), etc.
The key judgments, important accounting estimates and key assumptions adopted by the group in the application of important accounting policies are detailed in note IV and 42. 1. Accounting period
The accounting year of the group is the Gregorian calendar year, i.e. from January 1 to December 31. 2. Recording currency
The subsidiary of the company and the Chinese mainland in the mainland is Renminbi as the bookkeeping standard currency. The group's major overseas subsidiaries use Hong Kong dollars as the recording currency. The currency used in the preparation of the financial statements is RMB, which is expressed in millions of Yuan unless otherwise specified. 3. Business combination
Business combination refers to the transaction or event in which two or more separate enterprises are combined to form a reporting entity. Business combinations are divided into business combinations under the same control and business combinations not under the same control.
Business combination under the same control
A business combination under the same control is a business combination in which the enterprises participating in the merger are ultimately controlled by the same party or the same parties before and after the merger, and the control is not temporary. For business combinations under the same control, the party that obtains control over other enterprises participating in the merger on the merger date is the merging party, and other enterprises participating in the merger are the merged party. Merger date refers to the date on which the combining party actually obtains control over the merged party.
The assets and liabilities acquired by the combining party in the business combination shall be measured at the book value of the combined party on the combination date. For the difference between the book value of the net assets obtained by the combining party and the book value of the merger consideration paid (or the total face value of the issued shares), the share capital premium in the capital reserve shall be adjusted. If it is insufficient to offset, the undistributed profit shall be adjusted. The directly related expenses incurred for business combination shall be included in the current profit and loss when incurred. The transaction costs of issuing equity securities or debt securities for business combination shall be included in the initially recognized amount of equity securities or debt securities.
Business combination not under the same control
A business combination not under the same control is a business combination in which the enterprises participating in the merger are not ultimately controlled by the same party or the same parties before and after the merger. For business combinations not under the same control, the party that obtains control over other enterprises participating in the merger on the acquisition date is the purchaser, and other enterprises participating in the merger are the acquiree. The date of purchase refers to the date on which the purchaser actually obtains control over the acquiree.
The assets or liabilities as payment consideration in business combinations not under the same control shall be measured at the fair value on the acquisition date, and the difference between them and the book value shall be included in the current profits and losses. However, if the transferred assets or liabilities remain in the merger entity after the merger and are still under the control of the purchaser, the purchaser will still measure them according to their book value before the merger on the acquisition date and will not recognize any profit or loss in the income statement.
Ping An Insurance (Group) Company Of China Ltd(601318)
Notes to financial statements (Continued)
Year 2021
(unless otherwise specified, the monetary unit is RMB million) IV. important accounting policies and accounting estimates (Continued) 3 Business combination (Continued)
Business combination not under the same control (Continued)
The identifiable assets, liabilities and contingent liabilities of the acquiree obtained in the business combination not under the same control shall be measured at fair value on the acquisition date. The difference between the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is greater than the fair value share of the identifiable net assets of the acquiree obtained in the merger is recognized as goodwill and subsequently measured at cost less accumulated impairment losses. If the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, first of all, the identifiable assets The measurement of the fair value of liabilities and contingent liabilities, the fair value of the merger consideration paid (or the fair value of equity securities issued) and the fair value of the equity held by the acquiree before the acquisition date shall be reviewed, If the sum of the fair value of the merger consideration paid after review (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is still less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the difference shall be included in the current profit and loss. The directly related expenses incurred for business combination shall be included in the current profit and loss when incurred. The transaction costs of issuing equity securities or debt securities for business combination shall be included in the initially recognized amount of equity securities or debt securities.
If the business combination not under the same control is realized step by step through multiple transactions, the company will distinguish between individual financial statements and consolidated financial statements for relevant accounting treatment:
► in individual financial statements, the sum of the book value of the equity investment held by the acquiree before the purchase date and the new investment cost on the purchase date is taken as the initial investment cost of the investment; If the equity of the acquiree held before the acquisition date involves other comprehensive income, the other comprehensive income related to it shall be transferred to the current investment income when disposing of the investment.
► in the consolidated financial statements, the equity of the acquiree held before the acquisition date is remeasured according to the fair value of the equity on the acquisition date, and the difference between the fair value and its book value is included in the current investment income; If the equity of the acquiree held before the acquisition date involves other comprehensive income, the relevant other comprehensive income shall be transferred to the current investment income on the acquisition date.
4. Consolidated financial statements
Based on the consolidated financial statements of the company and its subsidiaries as of December 31, 2021, the scope of control is determined. Subsidiaries (including structured entities) refer to the entities controlled by the company. Structured entities are those whose voting rights or similar rights are not the decisive factors for judging whether the entity is controlled or not. For example, voting rights are only related to administrative work, and relevant operation activities are arranged through contract.
The group decides that all trust products, debt investment plans, equity investment plans and project asset support plans not controlled by the group are unconsolidated structured entities. Trust products, equity investment plans and project asset support plans are managed by associated or unrelated trust companies or asset managers, and the raised funds are invested in loans or equity of other companies. The debt investment plan is managed by associated or unrelated asset managers, and its main investment object is infrastructure fund support projects. Trust products, debt investment plans, equity investment plans and project asset support plans finance their operations by issuing beneficiary certificates to grant holders the right to distribute the income of relevant trust products, debt investment plans, equity investment plans and project asset support plans as agreed. The group holds trust products, debt investment plans, equity investment plans and
