Xin Lang Cai Jing·2025-12-10 10:44Core Viewpoint - After seven years of involvement with Huaxia Happiness, Ping An Life has begun to divest its shares, indicating a significant shift in their investment strategy and relationship with the company [1][3]. Group 1: Shareholding Changes - On December 1, Huaxia Happiness announced that Ping An Life and its affiliate, Ping An Asset Management, reduced their holdings by 7,815,487 shares, representing 0.20% of the total share capital [1][8]. - Prior to the reduction, Ping An Life held 25.19% of Huaxia Happiness shares, which decreased to 24.99% post-divestment [3][10]. - In August, Huaxia Happiness disclosed a plan for shareholders to reduce up to 3% of their shares within three months, but Ping An did not reach this upper limit [1][8]. Group 2: Legal Disputes - Concurrently with the share reduction, Ping An Life initiated legal action against Huaxia Happiness and its chairman, Wang Wenhua, regarding the validity of an arbitration agreement, with a court date set for December 17 [3][10]. - Tensions arose between Ping An Life and Huaxia Happiness's controlling shareholder over a "replacement belt" plan, which involved transferring significant assets and debts, leading to concerns about asset depletion and fairness to other creditors [3][10]. Group 3: Financial Performance and Challenges - Huaxia Happiness reported a 72% decline in revenue for the first three quarters, totaling 3.882 billion yuan, which is only 6% of the revenue from the same period in 2019 [7][14]. - The company's stock price has fallen to around 2 yuan, complicating Ping An Life's exit strategy from its investment [7][14]. - In 2021, Ping An disclosed a risk exposure of 54 billion yuan related to Huaxia Happiness, with credit impairment losses amounting to 43.2 billion yuan [14].