Re-emergence of insurance funds' "shareholding"! Lian Life Insurance plans to acquire a 5% stake in Zhongshan Public at nearly a 10% premium, increasing its shareholding ratio to 8.12%.

A reporter from The Daily Economic News | Cai Ding    Editor from The Daily Economic News | Huang Bowen

On the evening of April 2, Zhongshan Public Utilities (SZ000685, share price 10.87 yuan, market cap 16.03 billion yuan) announced that its controlling shareholder, Zhongshan Investment Holding Group Co., Ltd. (hereinafter “Zhongshan Investment Holding”), and Lian’an Life Insurance Co., Ltd. (hereinafter “Lian’an Life”) signed a “Share Transfer Agreement” on April 1. Zhongshan Investment Holding plans to transfer approximately 73.7556 million shares of the company it holds at a price of 12.19 yuan per share (accounting for 5% of the company’s total share capital as of now), with total consideration of approximately 899 million yuan.

According to the announcement, after this change in rights and interests, Zhongshan Investment Holding’s shareholding ratio will decrease to 43.73%, remaining the controlling shareholder; Lian’an Life’s shareholding ratio will increase to 8.12%, becoming a shareholder holding more than 5%. This agreement-based share transfer does not trigger a tender offer, does not constitute a related-party transaction, will not lead to any change in the company’s controlling shareholder or actual controller, and will not affect the company’s corporate governance structure and ongoing operations. At the same time, there is also no situation that harms the interests of the company and small and medium investors. However, it still needs to be implemented only after approval by the state-owned assets regulatory authority and review by the Shenzhen Stock Exchange.

The announcement shows that Zhongshan Investment Holding intends to transfer approximately 73.7556 million shares it holds—accounting for 5% of the company’s total share capital as of now—through an agreement transfer via public solicitation. After Zhongshan Investment Holding’s comprehensive evaluation, Lian’an Life was determined to be the final transferee.

According to the announcement, Zhongshan Investment Holding will transfer, by agreement, the approximately 73.7556 million shares of the company it holds (unrestricted tradable shares) to Lian’an Life at a price of 12.19 yuan per share. As of April 2, the above shares have not yet completed the transfer registration procedures. The transfer price of 12.19 yuan per share, compared with the closing price on the date the “Share Transfer Agreement” of Zhongshan Public Utilities was signed (April 1), i.e., 11.12 yuan per share, represents a premium of approximately 9.62%.

The announcement discloses that Lian’an Life was established on July 14, 2011, and Jiangsu International Trust Co., Ltd. holds 22.7857% of it. According to the announcement, in 2024, Lian’an Life’s audited operating revenue was 29.766 billion yuan and its net profit was 47.65 million yuan; in 2025, Lian’an Life’s unaudited operating revenue was 31.725 billion yuan and its net profit was 185 million yuan.

The Zhongshan Public Utilities announcement mentions that, in order to facilitate the company’s sustained and stable development, the transferee has undertaken that within 12 months after the completion of the transfer of the shares under this agreement, it will not reduce its holdings of the underlying shares received. At the same time, to optimize the corporate governance structure of the listed company and leverage the advantages of insurance long-term value-investment shareholders, after the completion of the share transfer, the transferee intends to appoint one non-independent director to the company.

Regarding the impact of this equity transfer on the listed company, Zhongshan Public Utilities stated that if completed smoothly, it will promote adjustments to the company’s equity structure and enhance the company’s core competitiveness. This agreement-based share transfer does not trigger a tender offer, does not constitute a related-party transaction. This change in rights and interests will not lead to any change in the controlling shareholder or actual controller of the listed company, will not have a major impact on the company’s ongoing operations, and there is also no situation that harms the interests of the listed company and other shareholders.

Zhongshan Public Utilities also disclosed that the share transfer under this agreement still needs to obtain review and approval from the state-owned assets supervision and management authority and other relevant government departments and pass compliance review by the Shenzhen Stock Exchange, before the share transfer registration procedures can be handled at the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. Whether it can subsequently obtain approval from the relevant state-owned assets supervision and management authority and whether the implementation of this public solicitation transfer can be completed both involve uncertainties.

A reporter from The Daily Economic News noted that in recent years, Lian’an Life has made frequent moves in both the A-share and Hong Kong stock markets. From 2024 to 2025, Lian’an Life previously successively took stakes in Jiangnan Water (SH601199) and Shenzhen International (HK00152), and it also holds stocks such as Wuxi Bank (SH600908) and Changshu Bank (SH601128). Lian’an Life’s equity-holding preferences are clear: it favors sectors such as public utilities, transportation, and city commercial banks.

However, it needs to be pointed out that although Zhongshan Public Utilities’ total market capitalization is currently only around 16 billion yuan, the largest “hidden asset” in its asset portfolio is its holdings of Guangfa Securities. According to Guangfa Securities’ 2025 annual report, as of the end of 2025, Zhongshan Public Utilities held 687 million shares of Guangfa Securities, accounting for 9.03% of Guangfa Securities’ total share capital. Based on Guangfa Securities’ closing price of 17.99 yuan per share on April 2, the market value of the Guangfa Securities shares currently held by Zhongshan Public Utilities is 12.359 billion yuan.

Massive information and precise insights—available on the Sina Finance APP