(Picture source: Visual China)

Blue Whale News reported on November 13th (Reporter Shi Yu) that a recent announcement from special treat ylz information technology (300096.SZ) revealed the capital increase of its shareholding company, Haisco Life Insurance Company Limited (hereinafter referred to as 'Haisco Life').

In the announcement regarding the waiver of the priority subscription right for the capital increase of its shareholding company, Haisco Life Insurance Company Limited disclosed that due to development plans, Haisco Life intends to increase its capital. The capital increase is based on the evaluation of Haisco Life's total shareholders' equity valuation on the benchmark date of December 31, 2023, at 1.356 billion yuan. Taking into account the overall market environment, a premium of approximately 12.8% over the asset appraisal results will be used as the final valuation, with a subscription price of 1.02 yuan per share. The capital increase will be carried out by Haisco Life's shareholder, Seahorse Investment Group Co., Ltd. (hereinafter referred to as 'Seahorse Group').

On the other hand, special treat ylz information technology chose to waive the priority subscription right for the current capital increase of Haisco Life. It stated that this decision was made based on the company's development global strategy and is in line with the current operational situation of the company.

It is not yet clear whether other shareholders will follow up with the capital increase. Blue Whale News reporters interviewed a relevant person in charge of Haisco Life Insurance Company, but as of the time of reporting, no response has been received. The capital increase of Haisco Life Insurance Company is still pending approval from regulatory authorities and carries a certain level of uncertainty.

Looking at the current equity structure of Haisco Life Insurance Company, there are a total of 8 shareholders. Seahorse Investment Group Co., Ltd. is the largest shareholder with a 32% stake; Haisco Pharmaceutical Group Co., Ltd. holds 20%, while RioMed (Beijing) Medical Instruments Co., Ltd. and Shenzhen Zhixin Lida Investment Co., Ltd. hold 13.5% and 13.3% respectively. special treat ylz information technology holds 6.5% and is the fifth largest shareholder of Haisco Life. The remaining three shareholders each hold 4.9%.

(Image Source: Ocean Protection Life Solvency Report)

It is worth mentioning that, as the initiating shareholder, ST YLZ Information Technology initially held a 20% stake in Ocean Protection Life, and last year transferred 13.5%, aiming to optimize the company's asset structure and resource allocation. It also indicates that the remaining 6.5% equity transfer will be facilitated in the future. Looking at the underlying reasons, it may be due to ST YLZ Information Technology's own poor operation, while the associated company Ocean Protection Life also operated at a loss, leading to investment pressure.

In ST YLZ Information Technology's 2024 interim report, it was mentioned that on December 8, 2023, its 6.5% stake in Ocean Protection Life was frozen by the People's Court of Xiaoshan District, Hangzhou City, Zhejiang Province.

Established in May 2018, Ocean Protection Life is currently in a growth stage. From 2018 to 2023, the company's premium scale was 0.282 billion yuan, 1.174 billion yuan, 1.429 billion yuan, 0.892 billion yuan, 0.831 billion yuan, 1.129 billion yuan respectively. In terms of profit, except for a slight profit of 0.009 billion yuan in 2021, the company remained in a loss-making state in other years, with losses of 0.179 billion yuan and 3.18 billion yuan in 2022 and 2023, respectively.

The latest performance data shows that the company achieved insurance business income of 1.29 billion yuan in the first three quarters of this year, with a net loss of 0.213 billion yuan for the same period. At the end of the third quarter, Ocean Protection Life's comprehensive solvency adequacy ratio was 157.39%, up 0.36 percentage points from the previous quarter-end, and the core solvency adequacy ratio was 116.97%, down 4.48 percentage points from the previous quarter-end. The comprehensive risk rating for the second quarter of 2024 has been upgraded from B grade to BB grade.

Facing the test under the industry's 'seven flat and eight profitable' pattern, Ocean Protection Life, established for about six and a half years, is facing challenges. On the occasion of Ocean Protection Life's 6th anniversary in May this year, the Chairman of Ocean Protection Life, Zhao Shuhua, proposed that as a private small and medium-sized insurance company, Ocean Protection Life has managed to withstand pressure and develop steadily, which is not easy. Looking ahead to the next three years, there are four things to 'persist': persist in high-quality development, persist in prudent investment, persist in compliant operation, and persist in strategic work.