Junkang Life's 3.2% stake was auctioned at a 30% discount by shareholders at a starting price of 164 million yuan

On January 13, the Economic Observer Network reporter learned from the Ali Auction Network that 3.2% of the equity of Junkang Life Insurance Co., Ltd. (hereinafter referred to as "Junkang Life") held by Fuzhou Tiance Industrial Co., Ltd. (hereinafter referred to as "Fuzhou Tiance") will be auctioned, with an appraisal price of 234 million yuan and a starting price of 164 million yuan, a discount of about 70%.

According to the data, the Third Intermediate People's Court of Beijing Municipality will conduct a public auction on the judicial auction network platform from 10:00 on February 10, 2022 to 10:00 on February 11, 2022, and this auction is the first auction, with a deposit of 9 million yuan.

As of press time, 0 people registered, 4 people set reminders, and 159 people watched.

According to public information, Junkang Life was established on November 6, 2006, is a national joint-stock life insurance company with a registered capital of 6.25 billion yuan, headquartered in Beijing, the business scope includes: life insurance, health insurance, accident insurance and other types of life insurance business; the reinsurance business of the above business; the use of insurance funds permitted by national laws and regulations; and other businesses approved by the China Insurance Regulatory Commission.

In terms of shareholder structure: the largest shareholder is Ningbo Yinzhou Hongfa Industrial Co., Ltd., which is 100% owned by Beijing Zhongwang Investment and Development Co., Ltd., with a shareholding ratio of 50.88%; the second largest shareholder is Ningbo Fuye Trading Co., Ltd., with a shareholding ratio of 20%; the third largest shareholder is Wuhu Longwei Industry and Trade Co., Ltd., with a shareholding ratio of 10.88%. Fuzhou Tiance and Fuzhou Weijie Investment Co., Ltd. both held 3.2% of the shares in this auction, ranking sixth largest shareholder.

Fuzhou Tiance was established in June 1998, with a registered capital of 500 million yuan, legal representative Chen Yiping, business scope: hardware (excluding electric bicycles), building materials, etc. On August 26, 2021, he was listed as an executor by the Third Intermediate People's Court of Beijing Municipality, and the total amount of execution was 235 million yuan.

It is worth mentioning that in recent years, the development of Junkang Life has not been smooth, and it has even been affected by the negative storm of the major shareholder China Zhongwang, and has been questioned for suspected violations such as related party transactions.

According to the Measures for the Supervision of the Conduct of Major Shareholders of Banking and Insurance Institutions (for Trial Implementation) issued by the China Banking and Insurance Regulatory Commission in October 2021, it is strictly forbidden to evade the review of related party transactions by covering up related party relationships, splitting transactions, and lengthening the financing chain through nested transactions. It is strictly forbidden to illegally occupy or dispose of the funds or other rights and interests of banking and insurance institutions through borrowing, guaranteeing, etc.

As of now, the solvency report for three consecutive quarters from the fourth quarter of 2020 to the present and the 2020 annual report have not been disclosed in a timely manner. A recently disclosed solvency report shows that in the second quarter of 2020, Junkang Life's classification regulatory rating results were Category C.