Ping An Investment New Bureau: Huaxia Happiness is still in pain, and the restructuring of New Founder has begun

In terms of investment, Ping An of China is tasting two kinds of tastes:

On the one hand, he actively participated in the equity investment of New Founder Group and successfully won the controlling right; on the other hand, he was forced to become the largest shareholder of Huaxia Happiness, anxiously waiting for Huaxia Happiness's debt restructuring to reduce losses.

In the face of such a realistic "ice and fire", Ping An Asset Management has ushered in a new leader.

Hotly promote the medical layout

Ping An won a 66.51% controlling stake in "New Founder"

On February 6, Ping An of China announced that on January 30, Ping An Life received the "Reply of the China Banking and Insurance Regulatory Commission on the Equity Investment of Ping An Life Insurance Company of China In New Founder Group", and the CBRC agreed to Ping An Life's investment in New Founder Group.

In accordance with the previous provisions of the Reorganization Investment Agreement and the choice of creditors of the reorganization entity for the repayment plan of the creditors, Ping An Life will contribute about 48.2 billion yuan to acquire about 66.51% of the equity of New Founder Group, becoming a veritable controlling shareholder of New Founder Group. The settlement of this investment marks that Ping An of China will open the layout of the medical sector with New Peking University Founder as the main resource.

As we all know, founder group predecessor is "Peking University new technology company", founded in 1986, after more than 30 years of development, the current founder group has been a comprehensive large group with business covering five major sectors of information technology, medical and pharmaceutical, financial industry, commodity trading and real estate.

Especially in terms of medical resources, the word "Peking University" has enough weight. Whether it is the First Hospital, the Second Hospital, the Third Hospital, or the Peking University International Hospital, or the Peking University Stomatological Hospital, etc., they occupy a very important position in the medical field. Moreover, the advantages of connecting with Peking University's talent and technology resources also make these medical resources have a rich and high-level talent supply.

Due to its optimism over these medical resources, Ping An has firmly determined to actively strive for the "right to participate" in the restructuring of Founder Group. However, for Ping An's participation in the restructuring of Founder Group and the acquisition of some of the debts of the original Founder Group, there are many opinions in the market, some people say "lost", some people said "earned", whether it is a loss or a profit, perhaps only Ping An itself knows.

Regardless of the profit and loss of the restructuring of the Founder Group, it can be known from the original intention of Ping An's contact with the incident, which is to pave the way for future strategic development.

When Ping An decided to participate in the restructuring of Founder Group, it said that this move was to further deepen the strategic layout of the medical and health industry, closely combine the high-quality medical resources under Peking University Medical Industry Group with insurance professional capabilities and medical technology capabilities, build a medical and health ecosystem with "scenes, services, temperatures and frequencies", and create a new engine for sustainable growth of future value.

On January 31, Ping An also said in the news released on the official WeChat platform that on October 28, 2021, the first batch of high-end health management centers of Ping An of China were established in Beijing and Shenzhen, and the health management centers relied on medical resources such as Peking University International Hospital and Ping An Longhua Hospital to provide customers with full-closed-loop health management services such as prevention, medical treatment and rehabilitation. This is an important layout of Ping An in the field of high-end health management, and it is also a new exploration of the innovative service model of "insurance + health".

Ma Mingzhe, chairman of Ping An Group, also said that finance is The present tense of Ping An, and medical care is the future of Ping An. That is to say, there are greater "ambitions" for medical ping an, and the restructuring of Founder Group just provides opportunities for Ping An.

Today, this strategic investment has landed.

Huaxia happiness recombines and changes

Short-term labor pains are still there

Just when Ping An was actively planning to invest in the new Founder Group and was willing to repay its debts, another investment was non-continuous, implicated by the huge loss of Huaxia Happiness. Recently, Huaxia Happiness's debt restructuring has become a new change.

Recently, Zhongrong Trust issued an interim management report saying that since the debt restructuring conditions provided by Huaxia Happiness violated the principles of the Debt Restructuring Plan and debt resolution work, and there were still great risks in the debt restructuring conditions, in order to protect the interests of the settlor, Zhongrong Trust, as the trustee, could not join the Huaxia Happiness Debt Committee on behalf of the trust plan, or accept the current debt restructuring plan of Huaxia Happiness and sign the Debt Restructuring Agreement on behalf of the trust plan.

That is to say, Huaxia Happiness's previous plan to repay its debts through debt restructuring has changed. Although huaxia happiness also said at the first time after the announcement of Zhongrong Trust that it had conducted several rounds of negotiations with Zhongrong Trust and was communicating in further detail about the specific content of the agreement, there is still great uncertainty about whether Zhongrong Trust will eventually continue to participate in the debt restructuring of Huaxia Happiness.

Of course, when it comes to the debt problem of Huaxia Happiness, a major protagonist and major shareholder that cannot be avoided is Ping An. As a "passive" ping an who has become the major shareholder of Huaxia Happiness, in fact, it has filled a lot of funds in Huaxia Happiness.

Since 2021, due to the explosion of Happiness in China and the liquidity crisis, Ping An has also been deeply affected, not only the stock price has fallen, but the company's profit has also begun to "shrink".

According to the data, in the first half of 2021, Ping An recorded asset impairment of 35.9 billion yuan for Huaxia Happiness-related investment assets, and in the first three quarters of 2021, Ping An's net profit attributable to shareholders of the parent company was 81.638 billion yuan, down 20.8% year-on-year, and the main reason for the decline was attributed to the impact of adjustments such as the impairment provision for Huaxia Happiness-related investment assets.

It can be seen that for the happy situation in China, Ping An is also in a dilemma at the moment, "I don't want to participate but I have to participate." In October 2021, Huaxia Happiness said that it would realize debt resolution in batches by selling high-quality assets to withdraw funds, selling assets to take away debts, cash repayment, debt extension, etc. How effective this disposal is, from the current situation of Huaxia Happiness.

On January 29, Huaxia Happiness announced that it had received an inquiry letter from the Shanghai Stock Exchange on the company's performance forecast, in which Huaxia Happiness's expected performance in 2021 was exposed in advance:

"In 2021, the net profit attributable to the mother was 33.1 billion to 39.1 billion yuan, and the net profit loss after deducting non-recurring gains and losses was 31.8 billion to 32.8 billion yuan, which was from profit to loss year-on-year, and significantly expanded from the amount of loss reported in the third quarter of 2021."

It is worth mentioning that citic construction investment has previously analyzed that huaxia happiness debt restructuring plan exceeded expectations, it is expected that ping an's debt principal will be repaid, and there is no need to make another debt impairment in the future, and there is a possibility of impairment reversal; at the same time, it is expected that Ping An will not need to calculate the equity impairment of Huaxia Happiness again, although the impairment of long-term equity investment cannot be reversed, but it will be boosted by the recovery of "hematopoietic" ability with the improvement of Huaxia Happiness's operation, and it can also be transferred back at the time of asset disposal.

According to this logic, the amount of Huaxia Happiness's loss has further increased in the fourth quarter of 2021, and the debt restructuring plan has also changed, which may also have an impact on the progress of Ping An's impairment reversal and recovery of some losses.

Asset management welcomes the new leader

Personnel adjustments may become critical

Under the situation of one cold and one hot, how Ping An balances the temperature difference between "ice and fire" and reflects on the gains and losses in investment has attracted much attention.

Just when Ping An Life's investment in the new Founder Group was approved and there were new changes in Huaxia Happiness's debt restructuring, Ping An was making adjustments to its executives in the investment field. On February 7, the China Banking and Insurance Regulatory Commission (CBIRC) disclosed that it had approved Huang Yong's qualifications to serve as chairman of Ping An Asset Management.

As one of the main creditors of Huaxia Happiness, Ping An Asset Management once spent 18 billion yuan to acquire 25.25% of Huaxia Happiness's shares. Nowadays, the dilemma of Huaxia Happiness is also affecting the development of Ping An Asset Management, and it remains to be tested by time whether this personnel adjustment can improve all the improvements in Ping An's response to Huaxia Happiness's debt.

In addition to adjusting the executives of Ping An Asset Management, Ping An also adjusted the chief investment officer of the group.

On January 20, 2022, Ping An announced that it intends to appoint Deng Bin as the Chief Investment Executive Officer (CIO) of Ping An Group. Chan retired due to his age and will continue to serve as the Director of the Group's Investment Management Committee. According to media reports, Ping An of China stressed that there will be no major changes in investment strategy and asset allocation, and the investment strategy is still focused on shortening the duration gap between assets and liabilities, actively grasping the timing and industry, and increasing investment returns.

In addition, some media recently said that the Ping An Department is preparing to intervene in the management of Fangzheng Securities from the personnel level, and an executive from Ping An Wealth Management will be reduced to Founder Securities as an executive. Although this news was denied by Founder Securities, as the controlling shareholder of New Founder Group, future personnel arrangements will also be expected.

The so-called strategic layout, personnel first. Planning the company's future plans through personnel adjustments may be the key to Ping An's handling of these major events. Whether it is restructuring New Founder Group or dealing with the debt problem of Huaxia Happiness, it will become an important point of view, and "A Wisdom Insurance" will continue to pay attention to it.