Author | Zhou Xiaona
Source | Global Tiger Finance App
Recently, Tianan Life Insurance, which frequently stepped on thunder in investment, once again fell into the dilemma of floating investment losses, and “stepped on thunder” Tongjitang lost nearly 60%. The unsatisfactory investment income has brought the company's losses for years. Following a loss of 6.99 billion in 2019, Tianan Life lost 1.176 billion in the first quarter of this year. Although it is undergoing a transition period, it is still overly dependent on investment income. Can Tianan Life's future It is not yet known to get out of the loss-making circle.
Tongjitang, which was originally chased by institutions, is now being attacked by small shareholders. On the occasion of the annual general meeting of shareholders, the minority shareholders of *ST Jitang submitted an interim proposal to remove all non-independent directors and initiate a re-election-and it was Shengshi Xinjin and the Tianan Life Insurance behind it that attacked Tongjitang. .
On August 17, *ST Jitang Evening announced that Tianan Life’s Shengshixinjin had requested the removal of all non-independent directors due to the illegal use of the company’s funds by the controlling shareholder of Tongjitang and initiated a re-election. It is reported that the illegal behavior of the controlling shareholder caused the company's 2019 annual audit report to be issued a non-standard audit opinion, and the company was issued a delisting risk warning, which in turn caused the company's stock price to plummet, damage to the interests of many small shareholders, and Tianan Life, which has been guarding for many years, also floated. The loss was nearly 60%.
In fact, this is not the first time Tianan Life has invested in “thunderstorming”. Omar Electric and Tunghsu Blue Sky, which have caused liquidity crises due to overdue debt defaults, have all become failures in Tianan Life’s investment road. According to data, Tianan Life was established in 2000. Since its establishment, the company seems to have been in a “strange circle” of losses. In the past ten years, except for meager profits in 2015 and 2016, all other years have suffered losses. Especially in 2019, the company ranked bottom in the industry with a loss of 6.99 billion yuan-and the sharp drop in investment income and the surge in surrenders were the culprits for its huge loss. As a former major universal insurance company, today's business transformation is facing quite severe challenges, and loss-making investments have become "dust" on the road to profitability.
Controlling shareholder violated regulations, Tianan Life "stepped thunder" and Tongjitang lost 60%
*ST Jitang announced on the evening of August 17 that Xinjiang Shengshi Xinjin, a shareholder holding 3.33% of the company’s shares, requested the company’s 2019 annual general meeting to add the "Proposal on Removal of All Non-Independent Directors of the Company" and "Regarding the Election of Non-Independent Directors of the Board of Directors". Independent Director’s Proposal" Two provisional proposals.
The reason for the proposal can be traced back to June 30 this year. *ST Jitang's 2019 annual report was issued by Daxin Accounting Firm in an audit report that could not express an opinion. The non-standard annual report mainly involves the failure of internal control, abnormal capital flow, and the investigation. Furthermore, in accordance with the relevant provisions of the "Shanghai Stock Exchange Stock Listing Rules", the company has been subject to a delisting risk warning from July 1, 2020.
It is worth noting that the following three consecutive trading days on July 1, July 2, and July 3 *ST Jitang’s daily closing price deviated by more than 15%. As of August 18, the stock closed The price is 2.08 yuan/share, which "cut down" the closing price on December 30 last year (4.18 yuan/share).
Shengshi Xinjin believes that the current board of directors of the company, especially non-independent directors, bear the inescapable responsibility for the illegal occupation of the company's funds of 1.047 billion by the controlling shareholders and related parties, and the resulting stock price plummet has hurt the interests of small and medium shareholders.
In February 2015, Shengshi Xinjin invested 300 million yuan to invest in Tongjitang. At that time, the price of Tongjitang’s shares was about 6.25 yuan per share. Since then, Shengshi Xinjin has not reduced its shareholding in the company.
In June 2016, Tianan Property & Casualty Insurance acquired 99.88% of Shengshi Xinjin’s shares from Shanghai Greenland Equity Investment Management Company and then transferred it to Tianan Life. However, Tianan Life’s investment in exchange for it was once again “thunderstorming”. As of August 18 this year, *ST Tongrentang’s closing price was RMB 2.08 per share, and its investment in Tongjitang’s stock may lose more than 60%.
In fact, since 2018, Tianan Life has been active on the investment side due to the large proportion of single premiums in the business and the large expenditures of policyholders’ investment interest income, but the income seems to be unsatisfactory.
Repeatedly stepping on thunder, Tianan Life's investment is not satisfactory
In June 2018, Tianan Life Insurance took over 5.9% of Omar Electric's shares for 748 million yuan (19.89 yuan per share).
However, on June 12, 2019, the company had some debts overdue due to a P2P thunderstorm, and announced a total of overdue debts of 270 million yuan. Subsequently, the company's stock price went through three limit drops and once fell to 4.75 yuan. On June 19, when the market opened higher, Omar Electric stopped its daily limit and closed at 5.23 yuan. At this time, Tianan Life's market value of Omar Electric was about 306 million yuan, which was a significant difference compared with the initial subscription price.
And as of August 18 this year, Omar Electric’s share price was 5.68 per share, which did not show any significant improvement.
In addition, as of August 19, Tianan Life has become the top ten shareholders of listed companies with 3 tradable shares. The 3 companies are Dongxu Lantian, Vantage and Wanxin Media.
Tianan Life has entered Tunghsu Blue Sky under the "Tung Xu Series" since the end of 2018. At that time, the stock price of Tunghsu Blue Sky was RMB 7.04 per share.
However, at the end of 2019, Dongxu Optoelectronics, another subsidiary of Dongxu Group, was unable to redeem the interest payable and related sale-back payments due to temporary short-term liquidity difficulties of the company’s funds, which instantly detonated the "Dongxu Group". Liquidity crisis.
Since then, Tunghsu Optoelectronics Investment Co., Ltd., the controlling shareholder of Tunghsu Group, intends to transfer its 51.46% stake in Tunghsu Group to Shijiazhuang State-owned Assets Supervision and Administration Commission. This matter may lead to changes in the control rights of Tunghsu Optoelectronics and Tunghsu Blue Sky. Dongxu Optoelectronics and Dongxu Lantian will be suspended from November 19, 2019, and the suspension is expected to not exceed 5 trading days.
On January 23 this year, Tunghsu Blue Sky disclosed that the shares held by Tunghsu Group were judicially frozen.
It is worth noting that shortly after the suspension of trading of Tunghsu Blue Sky and the announcement, the Exchange issued an "Inquiry Letter" to Tunghsu Blue Sky on November 22. Among them, it involves the financial security of Tunghsu Blue Sky, including whether it is occupied or the existence of external guarantees, and it also involves Tunghsu Blue Sky’s own debt repayment ability. Tunghsu Lantian has repeatedly postponed the inquiry letter and has not yet responded.
It can be seen from its just-disclosed 2019 annual report that in order to maintain its operations, Tunghsu Blue Sky has been adopting the expansion of liabilities, raising interest-bearing liabilities on the one hand, and increasing the proportion of operating payable projects. High-leverage operating costs have increased operating and management risks, and deepened the storm. As of August 18 this year, the closing price of the company's stock was 3.4 yuan per share, down 51.7% from the beginning of last year.
Anhui New Media was entered by Tianan Life Insurance since 2018. The stock price was 10.84 yuan at that time. As of August 18 this year, the closing price was 6.02 yuan, a year-on-year decrease of 44.46%.
Over-relying on investment and bancassurance channels, can Tianan Life get out of the “curious circle” of losses?
Tianan Life Insurance was established in 2000. According to the law of life insurance, the company generally begins to make profits 8-10 years after opening. However, from 2010 to 2019, Tianan Life had 8 losses in 10 years, with a cumulative loss of 10 billion, and it only made a slight profit in 2015 and 2016.
Among them, in 2019, Tianan Life's operating income was 62.1 billion yuan, operating expenses were 69.1 billion yuan, main business losses were 7 billion yuan, and the final net profit was 6.99 billion yuan!
The loss may be related to the unstable investment income and excessive reliance on bancassurance channels on the investment side.
In 2018, Tianan Life's total investment yield was 3.36%, compared to only 0.8% in 2019. With the scale of investment assets basically unchanged, Tianan Life's investment income in 2019 was significantly reduced by 3.932 billion yuan compared with 2018, a drop of 70%. On the one hand, stock dividends and fund dividends in trading financial assets and available-for-sale financial assets were reduced by about 1.7 billion yuan; on the other hand, some long-term equity investment assets were of poor quality, and large losses were confirmed through disposal, and the book value 16.6 billion yuan will reach 8.7 billion yuan.
From the perspective of premium income from various channels, the company's bancassurance channel still accounts for the majority in 2019, and the cost of capital behind it may not be underestimated. The insurance premium income of each channel is 36 billion yuan for bancassurance channels, 8.4 billion yuan for individual insurance channels, 5.5 billion yuan for substitution channels, and 1.3 billion yuan for renewal channels.
In addition, it is worth noting that in 2019, Tianan Life’s surrender payment was as high as 20 billion yuan, much higher than the 5.2 billion yuan in 2018, and this may be related to the unreasonable business structure of the company. In 2019, the China Banking and Insurance Regulatory Commission has repeatedly notified Tianan Life that there are product problems, including a certain annuity insurance product life insurance payment that does not meet regulatory requirements, long-term and short-term risks, other product design issues, and unreasonable product structure.
Comparing the company's annual reports in recent years, it can be seen that Tianan Life has been in a transitional period in the past two years and has begun to vigorously develop high-value health insurance, agent channels and regular delivery products. In addition, according to the company's latest repayment report for the first quarter of 2020, Tianan Life's net profit in the first quarter of this year was 1.176 billion yuan, a loss of 80% lower than the same period last year. However, the performance of the capital market is not good, and the transformation will take some time to release. It may take time for the company to finally get out of the loss period.