Financial Services Association, July 9 (Reporter Xia Shuyuan) On the evening of July 8, Tianmao Group (000627.SZ) issued multiple announcements. Among them, according to the 2024 semi-annual results forecast, Tianmao Group expects a net loss of 0.33 billion yuan to 0.42 billion yuan attributable to shareholders of listed companies in the first half of the year, and is expected to lose 0.34 billion yuan to 0.43 billion yuan after deducting non-recurring profit and loss.

On the same day, Tianmao Group announced that it will repurchase some of the company's A shares through centralized bidding transactions. The total capital for the repurchase of shares is between 50 million yuan (inclusive) and 0.1 billion yuan (inclusive).

Tianmao Group expects a net loss of 0.33 billion yuan to 0.42 billion yuan in the first half of the year, a year-on-year decrease of -124% to -76%

According to the 2024 semi-annual results forecast, Tianmao Group expects net profit attributable to shareholders of listed companies in the first half of 2024 to a loss of 0.42 billion yuan - 0.33 billion yuan, a decrease of -124% to -76% from net profit attributable to shareholders of listed companies in the same period of the previous year, a decrease of -124% to -76%; after deducting non-net profit of 0.186 billion yuan - 0.43 billion yuan from the same period last year, a decrease of -131% to -83%.

In the first half of 2024, Tianmao Group's basic earnings loss per share was 0.085 yuan to 0.067 yuan, which was a further increase over the loss of -0.038 yuan/share in the same period of 2023.

According to reports, currently Tianmao Group is mainly engaged in insurance business through holding subsidiaries Guohua Life Insurance and Huarui Insurance.

In recent years, due to the deep transformation of the life insurance industry and fluctuations in investment income, the insurance industry has entered a period of operating adjustment, and Guohua Life's performance has also shown short-term fluctuations in development and transformation.

According to data, in 2023, Tianmao Group achieved revenue of 49.699 billion yuan, an increase of 0.17% year on year; net profit loss to mother was 0.652 billion yuan, while net profit of 0.274 billion yuan was achieved in the same period in 2022.

According to the latest premium income announcement, Guohua Life, a holding subsidiary of Tianmao Group, achieved cumulative original premium income of 24.608 billion yuan in the first half of 2024, a year-on-year decrease of 13.28%.

Tianmao Group said that the main reason for the change in performance is: “In the first half of 2024, the interest rate market environment continued to decline. Guohua Life Insurance, the holding subsidiary of the company, was affected by the downward trend in the 750-day moving average treasury bond yield curve and increased accrual reserves. Although Guohua Life minimized these adverse effects through measures such as continuously optimizing the product structure, increasing new business value, and reducing debt costs, it was not possible to fully offset the impact of additional reserves.”

At the same time, Tianmao Group said that while maintaining basic stability in premium income, Guohua Life will adjust the business pace and structure in due course according to market conditions to vigorously promote long-term value and risk protection business development.

Tianmao Group plans to repurchase the company's shares for 50 million yuan to 0.1 billion yuan, with a repurchase price of no more than 3.34 yuan/share

Notably, Tianmao Group also announced on the same day that it plans to repurchase the company's shares for 50 million yuan to 0.1 billion yuan. The repurchase price will not exceed 3.34 yuan/share. All of the shares repurchased will be used for cancellation to reduce the company's registered capital.

According to reports, for this repurchase, Tianmao Group plans to use its own funds to carry out centralized bidding transactions. The types of shares to be repurchased are RMB common shares (A shares) issued by the company.

Referring to the purpose of this share repurchase, Tianmao Group stated that based on confidence in the company's future development prospects and recognition of the company's long-term value, in order to protect the interests of the majority of shareholders and enhance investor confidence, the company plans to cancel the repurchase of shares to reduce registered capital.

Furthermore, the company's management believes that the repurchase of shares will not have a significant impact on the company's continued operation and future development, nor will it adversely affect the company's profitability and ability to fulfill its debts. After the repurchase of shares is implemented, the company's share distribution still meets the listing conditions, does not affect the company's listing status, and will not lead to a change in the company's control.

According to reports, the share repurchase plan has been reviewed and approved by the 16th meeting of the 9th board of directors of the company, the 16th meeting of the 9th board of supervisors, and the company's 2nd Extraordinary General Meeting of Shareholders in 2024.