Recently, insurance intermediary giant Pan China Holdings Group (hereinafter referred to as "Pan China", stock code: FANH) announced that it has signed the first execution agreement with White Group Pte. Ltd. (hereinafter referred to as "Huade Group") in Singapore regarding the strategic investment framework agreement previously disclosed. The agreement involves three aspects, including Huade Group and its partners investing $500 million in Pan China to help achieve intelligent development and international expansion, as well as asset cooperation in medical services and AI biomimetic robot manufacturing between the two parties.
At the same time, the position of Pan China Chairman has also been changed. Bai Zhenhua, Chairman of Huade Group, was appointed as Chairman of Pan China. Hu Yinan and Lin Chuangbin, former Co Chairmen of Pan China, abdicated, and Hu Yinan became Vice Chairman and continued to serve as CEO. Lin Chuangbin continued to serve as Director and Chief Strategy Officer.
Triple layout of the agreement, involving intelligent development, international expansion, etc
On February 2nd this year, Pan China announced that the company and Puyi Wealth Limited (hereinafter referred to as "Puyi") had entered into a framework agreement with Singapore's Huade Group. According to the framework agreement, Huade Group and its partners plan to invest up to $500 million in Pan China and up to $500 million in Puyi. The two sides will soon start finalizing the details of the agreement.
After a gap of 20 days, the first execution agreement will be implemented, which mainly involves three aspects from the content of the agreement:
One is that Huade Group will help Pan China achieve intelligent development by injecting assets, and achieve international expansion by helping Pan China establish offices in Singapore, Vietnam, Europe, the United States, and Hong Kong.
The second is that Huade Group and its partners will invest 500 million US dollars to invest in Pan China.
Thirdly, both parties will focus on investing in high-quality assets, with a focus on two aspects.
Firstly, it is a telemedicine service platform headquartered in Asia. This platform has the largest number of remote consultations in the Asia Pacific region, connecting approximately 2000 renowned doctors, 600 clinics, and millions of users. The average monthly remote consultation volume exceeds 100000.
On the other hand, it is a hardware manufacturer of AI intelligent biomimetic robots. The company was founded in Singapore and has multiple production bases in China, Japan, the United States, and Europe. Its biomimetic intelligent robots can reach the medical level and are at the world's leading level. They can be applied in various fields such as medical research, home care, and elderly care.
Established in 1998, Pan China was listed on the NASDAQ Main Board in 2008 and has since developed into a third-party intelligent financial service platform. From the perspective of Pan China's positioning, it mainly provides comprehensive solutions that integrate technology, products, services, operations, capital, and professional support for individual agents and sales organizations.
The key words for extracting the content of this agreement, such as "international expansion", "intelligent development", "medical services", are also in line with the current strategic layout of Pan China.
From the perspective of international expansion, in recent years, the growth of domestic life insurance has been sluggish, and Pan China has opened up overseas market layout and explored new business growth poles. In October 2023, Pan China announced the joint establishment of two companies with Asian insurance companies, including an insurance brokerage firm and an insurance technology company. Both companies are headquartered in Hong Kong, officially opening the path of Pan China's overseas expansion. For the expansion of overseas markets, Pan China regards it as a new driving force for growth and states, "Our overseas development strategy will be able to create long-term and sustained value returns for shareholders."
The two assets laid out in this agreement between Pan China and Huade Group - medical services and AI intelligent bionic robot manufacturing - are also in line with Pan China's prediction of industry development.
At present, Pan China's main sources of income are insurance agency and valuation services. Data shows that in the third quarter of 2023, income from life insurance agency, property insurance agency, and valuation services accounted for 76.2%, 6.4%, and 17.4% of the total revenue, respectively.
When the performance was released in the third quarter of 2023, Pan China clearly stated that it is expected that the industry will gradually transition from product and cost driven to technology and service driven in the future. This will make companies with innovative services and technological capabilities more competitive, and the market may tend to be more concentrated. The intermediary market will develop towards platformization of large companies, and the current market challenges will drive more and more small and medium-sized intermediary companies to choose to cooperate with large platforms to reduce costs and improve service capabilities.
Aiming at this trend, Pan China emphasizes the transformation from a sales oriented company to a platform oriented company. Obviously, in the path, it includes strengthening the layout of medical, technological and other dimensions to promote scale and increase market share.
Especially for the empowerment of technology. At present, Pan China particularly emphasizes the internal driving force of its digital technology, "fully utilizing advanced technology, artificial intelligence, and data-driven insights, changing the way financial services are provided, helping enterprises transform and grow, and empowering industry development."
In the agreement with Huade, Hu Yinan, the founder of Pan China, particularly emphasized the importance of increasing intelligence. "Artificial intelligence and the global market are the best paths for Chinese enterprises to move towards the future. The cooperation with Huade will help Pan China quickly enter the AI era, giving it the opportunity to become a top player in the field of family services, including insurance, financial management, education, health and elderly care, family governance, and so on."
Huade appointed new chairman, Hu Yinan and Lin Chuangbin "abdicated"
Huade Group, a heavily invested and Pan China investment and development company, was founded in 2005. It is an investment and development company located in Singapore, focusing on acquiring, investing, and managing solutions in real estate, technology, and healthcare, with a main focus on the Chinese and Southeast Asian markets. At the same time, the group has also reached cooperation with international technology companies in artificial intelligence projects such as the United States, China, Europe, and the Asia Pacific region.
Along with the investment in Pan China, Huade Group has also brought a new chairman to Pan China.
According to the announcement, Bai Zhenhua will join the Pan China Board of Directors as Chairman, effective immediately. At the same time, Hu Yinan and Lin Chuangbin resigned as co chairmen. Hu Yinan will serve as vice chairman and continue to serve as CEO, while Lin Chuangbin will continue to serve as a director and Chief Strategy Officer of the company.
According to public information, Bai Zhenhua was born in Singapore in 1947 and is the founder, current executive chairman, and president of the Singapore Huade Group. From his resume, Bai Zhenhua has served as the Managing Director of Victory Books Group in Singapore, Founder and Executive Chairman of Longdi Group, a listed company on the Singapore Main Board. He has also served as Vice Chairman of TFC Bank Holdings in the United States and Chairman of Canon Holdings Private Limited in Singapore.
"I am very much looking forward to working with other board members and management to guide the development direction of Pan China and help Pan Huawei shareholders to bring maximum returns when Pan China uses advanced AI technology to seek development opportunities in the domestic and international markets." Bai Zhen ornamental column said as the chairman of Pan China.
The airborne landing of Bai Zhenhua led to the downgrading of both Hu Yinan and Lin Chuangbin. Especially as the founder of Pan China, Hu Yinan's "abdication" has led to speculation about Pan China's "transformation". Blue Whale Finance interviewed Pan China on related issues, and the company stated, "Please refer to the announcement information."
According to public information, Hu Yinan served as the Chairman of the Pan China Board of Directors from its establishment until 2017, and as the Chairman and CEO of the Group from December 2021.
From behind the scenes to in front of the stage, Hu Yinan embarked on a new round of reform and adjustment for Pan China after assuming the position of CEO. With Hu Yinan's return to the helm, Pan China privatization was launched, but the plan was announced to be revoked at the end of 2022. At that time, Hu Yinan stated that the previous privatization invitation was aimed at promoting internal strategic adjustments of the company. In the context of the risk of delisting Chinese concept stocks, retaining Pan China's listing status in the United States is more in line with the company's long-term development interests.
In terms of personnel, in March 2022, Pan China appointed veteran Liu Lichong as the Vice President and Chief Operating Officer of the company, assisting in overall company operations. Li Jun was appointed as Vice President and Chief Digital Officer, responsible for digital operations. In 2023, Lin Chuangbin from Da Mo was appointed as Co Chairman and Chief Strategy Officer.
More importantly, it is a series of capital operations and layout actions by Pan China around "open platforms". At the end of 2022, Pan China acquired the well-known domestic MGA platform Zhongrong Huijin in exchange for 57.73% equity, officially launching its Pan China Open Platform Strategy layout; In February 2023, Pan China once again promoted the acquisition of two insurance agency companies through stock exchange; In June of the same year, Pan China announced to build an Internet data center in Sichuan to support its open platform business needs. At that time, Hu Yinan expressed his expectation to complete equity participation or mergers and acquisitions of 20-30 small and medium-sized insurance intermediaries, and to integrate with the MGA platform of Zhongrong Huijin to link channels of 300-500 small and medium-sized insurance intermediaries.
In addition, as mentioned earlier, Pan China will embark on its overseas expansion by establishing a company in Hong Kong in 2023.
For further strategic layout, Pan China proposed in its third quarter report that its strategic focus will continue to be on executing the established core strategy, which is to enhance the professional capabilities of the sales team, promote the growth of open platforms and digital tenants, and explore integration opportunities that can drive value growth.
Under the strategy, Hu Yinan made a bigger move by introducing $500 million in investment to empower overseas expansion, medical services, and technology, and even spared no expense in relinquishing his position as chairman. The final outcome remains to be seen.
"Artificial intelligence and the global market are the best paths for Chinese companies to move towards the future. Collaborating with Huade will help Pan China quickly move into the AI era, giving it the opportunity to become a top player in the field of home services, including insurance, finance, education, health and elderly care, family governance, and more." Hu Yinan said.
At the same time, he proposed, "Mr. Bai is an outstanding leader with rich entrepreneurial and investment experience in multiple industries such as real estate, artificial intelligence, healthcare, and financial services. His strategic vision will lead Pan China to complete strategic upgrades, break through development bottlenecks through artificial intelligence, and open a new chapter of development."
In the first three quarters of 2023, Pan China's total operating revenue was 635 million yuan, a year-on-year increase of 1.6%, operating profit was 33.196 million yuan, a year-on-year increase of 3.2%, and net profit attributable to shareholders reached 171 million yuan, a year-on-year increase of 382.6%.
On February 21st Eastern Time, Pan China Holdings Group closed at $5.2, a decrease of 1.7% on the same day, with a total market value of $295 million.