November 2, Zhongcheng AutomobileInsuranceThe board of directors of the company limited by shares (hereinafter referred to as “Zhongcheng Insurance”) issued the announcement of the chairmanship. The announcement showed that the company's interim board of directors reviewed and approved Wu Baojun as the chairman of the company, and decided to remove Feng Xingya's chairmanship.
It is worth noting that Feng Xingya also served as the chairman of Zhongcheng Insurance.Guangzhou Automobile GroupThe position of general manager. And it is precisely this time that it is proposed to remove Feng Xingya’s position.Guangzhou Automobile Group.
The "Daily Economic News" reporter called the Zhongcheng Insurance Company several times on the appointment and dismissal of the chairman and sent an email, but still did not receive a reply before the deadline.
Zhongcheng Insurance Chairman Replacement
On November 2nd, the board of directors of Zhongcheng Insurance issued the announcement of the chairmanship. The reporter found that the appointment announcement not only elected a new chairman but also removed the former chairman.
The announcement shows that the company's interim board of directors reviewed and approved Wu Baojun as the chairman of the company on October 31, 2018. The term of office is from the date of approval of the qualifications of the China Banking Regulatory Commission to the expiration of the current board of directors. At the same time, the board of directors decided to remove the chairmanship of Feng Xingya, which was effective from the date of approval by the China Banking Regulatory Commission for the appointment of Chairman Wu Baojun.
Wu Baojun’s resume shows that he worked in Guangzhou.Honda MotorThe sales department of the company has served as salesperson, section chief, department head, minister, secretary of the party branch; after leaving Guangzhou Honda Automobile Co., Ltd., he worked for Zhongcheng Insurance Co., Ltd., and served as vice president, director and president.
According to the announcement, on September 3, 2018, the board of directors of the company received the letter from the shareholder Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as “Guangzhou Automobile Group”) on the appointment and dismissal of Wu Baojun and other notices, recommending Wu Baojun as the chairman of the company, Feng Xingya Re-elected as the chairman of the company.
The reporter found that Feng Xingya was the general manager of Guangzhou Automobile Group during his tenure as chairman of Zhongcheng Insurance. It is Guangzhou Automobile Group that proposed to remove Feng Xingya from the position.
It is reported that Zhongcheng Insurance is the automobile insurance company initiated by Guangzhou Automobile Group in 2011. Zhongcheng Insurance's 2018 semi-annual report shows that the top five ordinary shares of Zhongcheng Insurance at the end of the reporting period, China Guangdong Automobile Group, GAC Parts and Guangzhou Automobile Trading Co., Ltd. all ranked the company's largest shareholder with a 20% shareholding ratio. Guangzhou Automobile Group directly or indirectly holds 100% equity of GAC Parts and Guangzhou Automobile.
On October 22, Zhongcheng Insurance announced the latest stock issuance subscription announcement and decided to issue 769 million shares to the controlling shareholder Guangzhou Automobile Group and the new shareholder Guangzhou Development Zone Financial Holding Group Co., Ltd. Among them, Guangzhou Development Zone Financial Holding Group became the new shareholder of Zhongcheng Insurance, participated in the subscription of 454 million shares, and became the second shareholder of Zhongcheng Insurance.
In fact, this is not the first time that the shareholders of Zhongcheng Insurance have “intervened” Zhongcheng Insurance. Zhongcheng Insurance’s semi-annual report showed that Wang Peng, the director of the company, left the company because of the proposed replacement of directors by the shareholders.
Related party premium income is nearly 200 million
As an important part of the GAC Financial Sector, Zhongcheng Insurance fully enjoys the resource advantages of GAC Group in the automotive industry chain. The top five insurance premiums of Zhongcheng Insurance are related to Guangzhou Automobile Group. The top five customers are Guangqi Honda Automobile Co., Ltd., Guangzhou Automobile Huili Automobile Finance Co., Ltd., Guangzhou Automobile Group Co., Ltd., Guangzhou AutomobileToyota AutomotiveCo., Ltd., Guangzhou Guangai Insurance Broker Co., Ltd. and its subsidiaries, the five companies and Zhongcheng Insurance are the same parent company and parent company joint venture. The original premium income of these five companies accounted for 10.31%.
At the same time, the reporter noted that in the first three quarters, Zhongcheng Insurance premium income of nearly 200 million came from related party transactions. Zhongcheng Insurance's third-quarter related party transaction information announcement in 2018 shows that in the third quarter of 2018, the related party premium income was 61.74 million yuan, and in 2018, it was 190 million yuan.
However, Zhongcheng Insurance relied on the advantages of the parent company and failed to reverse the loss situation in successive years.
Zhongcheng Insurance semi-annual report shows that from January to June 2018, the company realized premium income of 71,800 yuan, an increase of 22.57%; operating income of 672 million yuan, an increase of 25.86%; net profit of loss of 12.065 million yuan, an increase of 57.61 %, a significant reduction compared to the same period last year.
Although Zhongcheng Insurance enjoys the parent company channel, it has not achieved profitability and has suffered losses for seven years. Since its establishment in 2011, Zhongcheng Insurance has continued to lose money. The losses in the past seven years were 40.13 million yuan, 58.08 million yuan, 103 million yuan, 169 million yuan, 82.67 million yuan, 32.97 million yuan and 42.97 million yuan. The latest data shows that in the first half of this year, Zhongcheng Insurance still failed to reverse the loss situation.
(Article source: Daily Economic News)