Hengqin Life receives another injection of state capital, registered capital approaches 5 billion yuan.

On December 3, Hengqin Life Insurance disclosed its plan to increase capital by 2 billion yuan, of which 1.852 billion yuan will be included in registered capital;

The funding will be subscribed by the major shareholder Zhuhai Huachuang, second largest shareholder Hengtong Group, and two new shareholders Hengqin Shenhe and Hengqin Jintou;

Once the capital increase is approved, its registered capital will rise from 3.137 billion yuan to 4.989 billion yuan. The shareholding percentages of the four capital-raising shareholders will be 49%, 13.59%, 7.42%, and 5.94% respectively, while Zhongzhi Group's shareholding will be diluted to 8.02%.

It is worth noting that all three shareholders involved in the capital increase—Zhuhai Huachuang, Hengqin Shenhe, and Hengqin Jintou—are backed by local state-owned assets:

Among them, Zhuhai Huachuang’s major shareholder is Huafa Group, the largest comprehensive state-owned enterprise in Zhuhai, jointly held by the Zhuhai State-owned Assets Supervision and Administration Commission and the Guangdong Provincial Department of Finance;

Hengqin Shenhe is wholly owned by the Finance Bureau of Hengqin Guangdong-Macao Deep Cooperation Zone;

Hengqin Jintou is 90% owned by Gree Group, under the Zhuhai State-owned Assets Supervision and Administration Commission, and 10% owned by the Guangdong Provincial Department of Finance.

When Hengqin Life was founded, it was launched with balanced shareholding, with the five founding shareholders—Zhuhai Huachuang, Hengtong Group, Zhongzhi Group, and others—each holding 20%, giving the management substantial autonomy and space for strategic differentiation.

Since 2022, Zhuhai Huachuang, backed by Zhuhai’s state-owned assets “Huafa System”, first broke the shareholding balance by independently injecting 385 million yuan, increasing its shareholding from 20% to 32.9%, becoming the largest shareholder;

After Zhongzhi Group’s “blowout”, Zhuhai Huachuang again injected 753 million yuan alone in 2024, raising its shareholding from 32.9% to 49%, breaching the single shareholder cap of one-third and upgrading from a strategic shareholder to a controlling shareholder.

In the new round of capital injection, Zhuhai Huachuang again subscribes 907 million yuan, maintaining its shareholding at 49%.

At present, massive investments from multiple state-owned shareholders may relate to Hengqin Life's operating pressure and cash crunch:

Since its founding in 2016, the company has only turned a profit in 2020–2021, while all other years have shown losses;

Despite the life insurance industry's rule of “break even in seven years, profit in eight”, Hengqin Life’s revenue and net profit show no signs of stabilizing, with accumulated losses now over 2.3 billion yuan.

By the end of Q3 2025, its core and comprehensive solvency adequacy ratios stood at 111.66% and 142.47%, down 45.74 and 46.87 percentage points quarter-on-quarter, putting it in the lower-middle range among life insurers;

Cash flow remains negative, with net cash flow at the quarter’s end of -740 million yuan;

Its average comprehensive investment return over the past three years is only 2.2%, which is low among peers (ranked 67th out of 72).

In the same period, Hengqin Life’s total assets reached 44.065 billion yuan, registered capital is 3.137 billion yuan, with a ratio of 14.05, indicating high leverage and a prominent capital insufficiency issue.

Xinfeng notes that, to address the “anemia” caused by years of losses, the “Huafa System” has launched more than one “rescue” this year:

Just before this round of capital injection, Hengqin Life had disclosed in its third-quarter solvency report that it plans to issue up to 1.1 billion yuan in capital supplement bonds, fully guaranteed by Huafa Group, which is behind major shareholder Zhuhai Huachuang.

Since 2016, Zhuhai Huachuang’s total investment in Hengqin Life has reached 2.445 billion yuan;

From breaking the shareholding cap to providing full, unconditional guarantees, the “Huafa System” has gone to great lengths to support Hengqin Life.

However, the key to sustainable development lies in its own “blood-making” ability.

In the past year, Hengqin Life’s management team has seen frequent changes:

At the start of 2024, Ling Libo became general manager, soon after the first chairman Lan Yadong announced his retirement;

In July, Qian Zhonghua officially took over as chairman, and assistant general manager Wang Lichuan, Li Tuo and several other senior executives successively resigned;

In December 2025, Chen Ping, who has many years of work experience at Taiping Insurance, was approved as deputy general manager. Hengqin Life formally established a "one chief, four deputies" structure centered on chairman Qian Zhonghua and general manager Ling Libo, marking the end of the management “blood transfusion”.

However, currently, the core leader Qian Zhonghua is already 63 years old, so further personnel changes may be inevitable.

For Hengqin Life, which has yet to turn losses around, there are still many challenges to face head-on.

Risk Disclaimer and Limitation of LiabilityThe market contains risks, and investment should be approached cautiously. This article does not constitute personal investment advice, and does not take into account the unique investment goals, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions in this article are suitable for their own circumstances. Investing based on this is at your own risk.