Four Shareholders' Equity Frozen, Only 6 Executives Remaining, Qianhai Property Insurance Plans Capital Increase to Address Difficulties

Chinatimes.net.cn Reporter Wu Min Beijing Report

A resolution passed at a temporary shareholders’ meeting has brought the long-dormant Xinjiang Qianhai United Property Insurance Co., Ltd. (hereafter “Qianhai Insurance”) back into the market spotlight. Recently, this insurance company, deeply tied to the Baoneng Group, approved by a unanimous vote a proposal to change its registered capital and shareholders.

For Qianhai Insurance, which has long been troubled by frozen equity, management upheaval, and ongoing losses, this “shareholder change” resolution passing unanimously suggests that new funds are likely to enter through the transfer of frozen shares or participation in capital increases. This could help break the deadlock and restore proper corporate governance.

However, Qianhai Insurance still faces many challenges to truly turn the tide: four shareholders’ equity remains frozen; its deputy general manager resigned quietly after just four months in office; its overall cost ratio is as high as 232.95%, far exceeding the breakeven point; and its risk comprehensive rating has been rated as Category C for six consecutive quarters.

Regarding the specific amount of registered capital to be changed and whether there is a clear new shareholder entering, our reporter has contacted Qianhai Insurance for an interview. As of press time, no response has been received.

Shareholding Dilemma

The second extraordinary shareholders’ meeting for 2026, recently held by Qianhai Insurance, announced that a proposal to change registered capital and shareholders received full support from attending shareholders. The vote showed that 1 billion shares, representing 100% of the voting shares present, were in favor, with no opposing or abstaining votes.

This approval marks a procedural step toward adjusting Qianhai Insurance’s shareholding structure.

Looking back at its ownership structure, this property insurance company, established in May 2016 with a registered capital of 1 billion yuan, is based in Shenzhen. Initially, its shareholders were fairly balanced: Shenzhen Shen Yue Holdings Co., Ltd., Shenzhen Jushenghua Co., Ltd., Kexin Heng Co., Ltd., Shenzhen Jianye Engineering Group Co., Ltd., and Shenzhen Yue Shang Logistics Co., Ltd., each holding 20%.

On the surface, this structure appears balanced, but in reality, from its inception, it has been closely linked to the Baoneng Group.

As Baoneng’s leader Yao Zhenhua and his capital expansion faced liquidity crises, the shareholders of Qianhai Insurance also fell into difficulties, with their equity frozen—like the sword of Damocles hanging over the company.

Latest solvency reports reveal concerning details. Shenzhen Jushenghua Co., Ltd.’s 20% stake in Qianhai Insurance has been frozen multiple times, with the latest freeze extending until December 2028. Shenzhen Shen Yue Holdings’ 17.2% stake is frozen until September 2026. Shenzhen Jianye Engineering’s 20% stake has also been frozen multiple times, with the last freeze lasting until November 2028. Kexin Heng’s 0.7% stake is frozen until December 2027. Among the five shareholders, only Shenzhen Yue Shang Logistics remains unaffected; the other four are all frozen.

Behind these freezes lies an unresolved debt crisis. A court ruling in September 2024 ordered Jushenghua and Baoneng Group to repay Zhongrong Life Insurance 2.025 billion yuan. To enforce this, the court froze several assets of Jushenghua, including its 20% stake in Qianhai Insurance.

This stake was later auctioned on Alibaba’s judicial auction platform, with an initial price of 30.8 million yuan. However, the auction was suspended due to objections from third parties. The court planned to restart the auction in October 2025, but it was again delayed, falling into another suspension.

Management Turmoil

Beyond the shareholding crisis, management upheaval remains a significant obstacle for Qianhai Insurance.

In recent years, its core executives have changed frequently. From the ban of former Chairman Yao Zhenhua for ten years to the news in 2022 that Huang Wei, who succeeded him, was under investigation, the company’s leadership has been shrouded in uncertainty.

A personnel change at the end of 2025 again drew market attention. The company’s only deputy general manager, Cao Jianjun, quietly left the management team, just four months after taking office. Cao’s appointment was approved by regulators on August 5, 2025, and he officially assumed the role on August 8. His tenure lasted just over four months.

Cao Jianjun’s background is quite unique. Public information shows he was born in 1969 and previously worked at China Construction Sixth Engineering Bureau, Tianjin Transportation Port Committee, Tianjin Binhai New Area Management Committee, Tianjin Binhai New Area Economic and Information Technology Committee, and Tianjin Binhai New Area Investment Promotion Bureau. He also served as Vice President of Baoneng Investment Group in Shenzhen and as Director of Zhongju High-tech Industrial (Group) Co., Ltd. The close ties to Baoneng, a major shareholder of Qianhai Insurance, make his brief tenure and departure open to interpretation.

Such a short executive tenure not only hampers the implementation of long-term strategies but also exposes the fragility of the company’s governance structure. After Cao Jianjun’s departure, only six core executives remain, including Chairman and acting CEO Huo Jianmei, Board Secretary Cui Yongcan, General Manager Assistant Wang Shubo, Audit Responsible Person Wang Zhanjun, Compliance and Chief Risk Officer Hu Sheng, and Chief Actuary Nandi.

Beijing PaiPai Insurance Agency Co., Ltd. General Manager Yang Fan told our reporter that frequent management changes are common among small and medium-sized insurance companies, driven by performance pressure, strategic adjustments, and intensified industry competition. On the positive side, such changes can bring fresh ideas, promote strategic transformation, and signal positive reform. However, frequent turnover can also cause strategic discontinuity, team instability, and short-termism, potentially affecting long-term stable development.

“Small and medium insurers should establish more scientific governance structures and long-term incentive mechanisms, maintain strategic focus, and appropriately introduce new talent to balance stability and innovation,” Yang said.

Operational Challenges

The ultimate cost of the shareholding crisis and governance disorder is reflected in the company’s operational data.

From the premium income perspective, Qianhai Insurance’s business revenue has shown an overall decline. In its first year of operation in 2016, it achieved 55 million yuan in insurance business income. It grew in subsequent years, reaching 1.024 billion yuan in 2017, 1.542 billion in 2018, and peaking at 2.266 billion in 2019.

However, the trend reversed in 2020. That year, income dropped to 2.131 billion; in 2021, it was 1.939 billion; in 2022, 1.443 billion; in 2023, 1.564 billion; and in 2024, 1.525 billion. The decline continued into 2025, with revenue only reaching 1.087 billion.

Net profit has been consistently poor. After a tiny profit of 1 million yuan in 2016, Qianhai Insurance has been in long-term loss. Over nine years from its founding to the end of 2024, cumulative losses totaled 751 million yuan. The loss widened further in 2025, reaching 85 million yuan.

Moreover, its risk comprehensive rating has been downgraded from B to C since Q1 2022 and has remained there, indicating it is an insolvent insurer.

Cost pressures are also significant. By the end of 2025, its combined cost ratio was as high as 232.95%, far exceeding the 100% breakeven line, indicating severe underwriting losses.

Yang Fan believes that facing such sustained pressure on the combined cost ratio, small and medium-sized property insurers must abandon “scale obsession,” adhere to a high-quality development principle of “efficiency first,” and structurally adjust their business. They should reduce high-claim auto insurance, leverage geographic advantages to deepen agricultural and specialty non-auto insurance, and optimize their business mix.

“Cost control should rely on digital tools to implement lean management throughout the process, strictly control ineffective channel commissions, and reduce fixed operating costs through organizational flattening. Pricing strategies must break homogeneous competition by building risk-based precise pricing models using big data actuarial techniques, implementing differentiated underwriting to ensure quality from the source, and fundamentally reversing underwriting losses,” Yang said.

Editor: Feng Yingzi
Chief Editor: Zhang Zhiwei