On July 24, China Life announced that it, along with the Jiangsu Provincial Government Investment Fund and China Life Property & Casualty Insurance Company (both as limited partners), had signed a partnership agreement on December 26, 2019, with China Life (Jiangsu) Equity Investment Co., Ltd. (as the general partner) to establish the Jiangsu Guoshou Zouquan Equity Investment Center (Limited Partnership). The partnership was renamed the Jiangsu Zouquan Chengda Equity Investment Center (Limited Partnership) on December 13, 2024.
To optimize the partnership's profit distribution mechanism, the company's board of directors approved on July 24, 2026, a plan for the company, the Jiangsu Fund, and the property insurance company to sign a supplementary agreement with the general partner by December 31, 2026. This agreement will change the profit distribution mechanism from allocating profits based on individual investment projects to allocating them based on the overall performance of the partnership. Under the new mechanism, the general partner will only receive excess returns based on the partnership's overall profitability, which better aligns with market practices and offers greater benefits to limited partners in terms of capital safety and investment income recognition.
The distributable funds of the partnership will be allocated to all partners in the following order: 1. Distribution to all limited partners in proportion to their paid-in capital contributions until each limited partner has recovered its full paid-in capital. 2. If there is any remaining balance, distribution to the general partner until it recovers its paid-in capital contribution. 3. If there is a remaining balance, distribution to all limited partners until each receives an annualized return of 8% compounded on the amount received under item 1. 4. If there is a remaining balance, distribution to the general partner until it receives an annualized return of 8% compounded on the amount received under item 2. 5. Any remaining balance after the above distributions constitutes excess returns. 20% of this excess will be allocated to the general partner, and 80% will be distributed among the limited partners in proportion to their paid-in capital contributions.
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