Dingcheng Life Insurance under Wan Feng disclosed the capital increase plan.
On May 29, Dingcheng Life announced that comprehensive consideration of the company ’s capital needs and the need for continuous operation, the company ’s board of directors has successively reviewed and approved Dingcheng Life ’s 2020 capital increase The two proposals for the implementation plan of the plan and the capital increase plan agreed to a capital increase plan of 750 million yuan in 2020, and the company ’s registered capital will be increased from 1.25 billion yuan to 2 billion yuan.
Specifically, this time the newly registered capital is 750 million yuan. The top four shareholders of the current six shareholders participate in the capital increase, and there are no new shareholders. Specifically, Xinguang Life Insurance Co., Ltd. invested 187.5 million yuan (hereinafter referred to as Xinguang Life), Shenzhen Qianhai Xiangjiang Financial Holding Group Co., Ltd. (hereinafter referred to as Xiangjiang Financial Holdings) contributed 250 million yuan, and Shenzhen Bolin Asset Management Co., Ltd. The company (hereinafter referred to as Bolin Assets) contributed 250 million yuan and Shenzhen Le Anju Commercial Co., Ltd. (Shenzhen Anleju) contributed 62.5 million yuan.
Comparison table of equity structure before and after capital increase
Comparison table of equity structure before and after capital increase
If the equity transfer is approved , Dingcheng Life’s largest shareholder will no longer be the Shin Kong Life. Previously holding 20% of the shares, the second largest shareholder, Bailin Assets and Xiangjiang Financial Holdings, will each hold 25% of the shares of Dingcheng Life Insurance, which is “on average” with Shin Kong Life. Shenzhen Anleju’s shareholding ratio dropped from 11% to 10%, and the other two Shenzhen Guozhan Investment and Development Co., Ltd. (hereinafter referred to as Guozhan Investment) and Shanghai Guanpu Real Estate Development and Management Co., Ltd., which did not participate in the capital increase, both decreased their shareholdings. To below 10%, they were 8.75% and 6.25% respectively.
It is worth noting that the single shareholder of Bolin Assets is Shenzhen Bolin Holdings Co., Ltd., and the historical shareholders are Hongrongyuan Real Estate Group (Shenzhen) Co., Ltd. and Lai Bolin Director of Bolin Assets. According to public information, Lai Bailin is the son of Lai Haimin, a wealthy businessman from Chaoshan Real Estate and chairman of Hongrongyuan Group.
Prior to this, Bolin Assets had tried to control the predecessor of Dingcheng Life Insurance, Xinguang HNA. In November 2016, Xinguang HNA Life, which had not changed its name at the time, issued an announcement. HNA Group and Xinguang Life Insurance planned to transfer the 50% and 25% of the shares they held. After the equity transfer is completed, Bolin Assets will hold 51%, Xinguang Life Insurance will hold 25%, Shenzhen Guanghui Petroleum Group Co., Ltd. will hold 14%, and Guozhan Investment will hold 10%. However, this plan has not been approved by the original CIRC.
After the implementation of the “Measures for the Equity Management of Insurance Companies” issued by the original CIRC, the upper limit of the single shareholder ’s shareholding ratio was reduced from 51% to one third This means that Bolin Assets ’previous attempt to hold a 51% stake has completely failed.
In addition to Dingcheng Life Insurance, Bolin Assets is currently the second largest shareholder of Li An Life Insurance, holding 18.9625%. In the banking sector, Bolin Assets is also the fourth largest shareholder of Guangdong Huaxing Bank, holding 9.88% of the shares. Li Jiancheng, director and general manager of Bailin Assets, is currently the chairman of Dingcheng Life Insurance, director of Li An Life, and director of Guangdong Huaxing Bank.
Xiangjiang Financial Holdings, also among the largest shareholder seats, is a group company specialized in financial business under the Xiangjiang Group. According to Xiangjiang Group’s official website, Xiangjiang Group was established in 1990. It was the first Chinese private enterprise to invest in the financial industry. It strategically held and participated in a number of financial institutions, including Guangdong Development Bank, Guangdong Development Securities, Guangdong Development Fund, Guangdong Nanyue Bank, and Tianjin Bank. The main shareholder of the company and established Xiangjiang Financial Holdings Group in Shenzhen in 2013, becoming one of the first key enterprises introduced by Qianhai in the country.
The chairman of Dingcheng Life Insurance is Wan Feng. He had previously served as President of China Life Insurance and Chairman of Xinhua Insurance. On January 16, 2019, Wan Feng resigned as chairman of Xinhua Insurance. Two days later, he appeared on the board of directors of Xinguang HNA Life, which had not yet been renamed. He was elected as a director and temporary director. The board also announced that Xinguang HNA Life was renamed Dingcheng Life.
From March 2014 to June 2019, Dingcheng Life Insurance was supervised by the regulatory authorities to suspend the establishment of additional branches and develop new businesses. For Wanfeng, it is not so much as leading an insurance company to resume business, but rather as leading a new insurance company to start. In 2019, Dingcheng Life Insurance achieved a revenue of 87.599 million yuan in insurance business, a decrease of 4.6% from 2018; net profit was -110 million yuan, while in 2018 this figure was -79 million yuan.