Feng Huang Wang·2026-01-08 14:54Core Viewpoint - The conflict between Huaxia Happiness and its major shareholder, Ping An, has escalated, with Ping An seeking arbitration for a compensation of approximately 6.4 billion yuan due to unmet performance targets from previous agreements [1][2]. Group 1: Background of the Dispute - The dispute originates from multiple share transfer agreements signed between 2018 and 2019, which included performance compensation clauses [1]. - Ping An Asset Management and Ping An Life acquired shares of Huaxia Happiness for a total of 179.73 billion yuan, with specific profit targets set for the years 2018, 2019, and 2020 [2]. Group 2: Financial Performance and Implications - Huaxia Happiness met the profit targets for 2018 and 2019 but failed to meet the target for 2020, reporting a net profit of only 3.665 billion yuan due to various adverse factors [2]. - Ping An's arbitration request includes not only the compensation but also overdue payment penalties and related legal fees, with a total claim of around 6.4 billion yuan [2]. Group 3: Impact on Restructuring Process - The ongoing arbitration may complicate Huaxia Happiness's pre-restructuring process, which is critical as the company faces significant liquidity issues [2][3]. - Ping An has expressed concerns regarding the compliance and necessity of the pre-restructuring process, indicating a breakdown in negotiations between the two parties [3]. - Huaxia Happiness has projected a net loss for 2025, with expected losses exceeding the previous year's audited net assets, potentially leading to negative net assets by the end of 2025 [3].