China Life says profit may have fallen 60 per cent in first nine months
China Life, the nation’s largest insurance company by market value, issued a profit warning on Tuesday as it estimated a 60 per cent year-on-year drop in net earnings in the first nine months.
That means net profit for the period may be down to just 13.535 billion yuan (HK$15.589 billion) from 33.837 billion yuan a year earlier. Earnings per share for the first nine months may have fallen to 0.48 yuan, down from 1.2 yuan last year.
In a filing to the Hong Kong stock exchange, China Life said the decline in results in the third quarter was in part due to a “decrease in investment income”.
The profit warning is based on the company’s preliminary financial estimates for the third quarter, which have not yet been audited. China Life said it would release detailed information when its third quarter results have been finalised.
China Life reported a profit decline of 67 per cent in the first half of the year to 10.4 billion yuan.
Before the profit warning was issued after market close, China Life finished Tuesday at HK$20.7, up 1.47 per cent from Monday.