On December 5, Huagui Life Insurance once again listed its capital increase plan on the Beijing Equity Exchange, aiming to raise 2.5-4.5 billion yuan.
According to the announcement, while existing shareholders will participate in the capital increase, the company plans to introduce up to 20 new investors, with their combined stake expected to account for 20%-40% of the total. The fundraising aims to strengthen registered capital, enhance risk resilience and operational capabilities, and support mid-to-long-term strategic planning.
Notably, Huagui Life has set differentiated lock-up periods for shareholders in this round: controlling shareholders face a five-year lock-up, strategic shareholders three years, while Financial II and Financial I shareholders are subject to two-year and one-year restrictions, respectively.
Currently, Huagui Life’s major shareholders are Kweichow Moutai Group (holding 33.33%) and Qianheng State-Owned Capital (19.17%), with state-owned and social corporate shares accounting for 63% and 37%, respectively.
This capital increase project has faced multiple extensions across several equity exchanges. For instance, its listing on Guizhou Sunshine Equity Exchange has been extended three times, with a disclosure period lasting 235 working days and currently set to expire on December 17.
The prolonged search for investors may stem from Huagui Life’s ongoing profitability challenges. From 2017 to 2024, the company’s revenue grew at a compound annual rate of 35.13%, yet it remained largely unprofitable except for a brief turnaround in 2021. Cumulative losses reached 1.358 billion yuan by 2024.
However, since 2023, Huagui Life’s losses have narrowed, posting a net profit of 183 million yuan in the first three quarters of 2025—signaling potential annual profitability.
By Q3 2025, its core and comprehensive solvency adequacy ratios stood at 118.8% and 133.8%, down 2.3 percentage points and up 0.63 percentage points quarter-on-quarter, respectively. Meanwhile, net cash flow turned negative, dropping from 845 million yuan at the end of Q2 to -420 million yuan.
Historical data shows Huagui Life’s key metrics have often hovered near regulatory thresholds. For example, in Q2 2024, its unfavorable deviation rate for operating cash flow hit -53.07%, breaching the requirement of "no consecutive quarters below -30%." Its 2023 annual net cash flow was also negative, violating the rule against "two consecutive fiscal years below zero."
Compared to its current 2 billion yuan registered capital, Huagui Life’s ambitious fundraising plan—limiting new shareholders to 20%-40%—may aim to preserve Kweichow Moutai Group’s dominant position. The group’s 33.33% stake already hits the regulatory cap for single-shareholder ownership.
Management structure and the capital increase suggest continued support from Kweichow Moutai Group. Huagui Life’s Party Secretary and Chairman Liu Gang concurrently serves as the group’s CFO and board secretary, while Deputy Party Secretary and Vice President Wang Jianbo previously held roles in the group’s audit supervision department.
Four of Huagui Life’s 10 board seats are linked to Kweichow Moutai Group. Beyond Liu and Wang, Vice President and CFO Chen Dongmei also hails from the group, having served as a finance department supervisor.
At a mid-2023 meeting, Liu Gang emphasized "leveraging Kweichow Moutai’s strengths," later stating the group would "support Huagui’s profitability through funding, branding, and business collaboration."
Whether Huagui Life can carve a unique path by leveraging Kweichow Moutai’s resources remains to be seen.
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