Core Viewpoint - Tianmao Group is facing significant financial difficulties, including a continuous decline in stock prices and potential delisting risks due to substantial losses and regulatory scrutiny [1][2]. Financial Performance - Tianmao Group has reported a cumulative loss exceeding 1.1 billion yuan over the past two years, primarily due to the poor performance of its subsidiary, Guohua Life Insurance [1][2]. - For 2024, the company anticipates a net loss between 500 million to 750 million yuan, with total revenue projected to be between 40 billion to 43 billion yuan [2]. - Guohua Life Insurance has been a major contributor to these losses, with a net loss of 1.155 billion yuan in 2023 and 716 million yuan in the first half of 2024 [2]. Regulatory Issues - The company has received a notice from the China Securities Regulatory Commission regarding an investigation, which has led to a suspension of its stock trading [1]. - If the company fails to disclose its annual report within two months of the trading suspension, it may face delisting risks [1]. Investment and Business Strategy - Guohua Life Insurance has been heavily involved in real estate investments, which have drawn criticism and raised concerns about potential conflicts of interest and fund misappropriation [1][7]. - The company has seen a significant increase in investment properties, rising by 73.96% from 11.2 billion yuan in 2022 to 19.48 billion yuan in 2023 [8]. Market Trends - The insurance sector, particularly Guohua Life, has been adversely affected by a wave of policy cancellations, with surrender payments reaching 3.036 billion yuan in 2021 and 3.030 billion yuan in 2022, accounting for over 79% of insurance revenue during those years [5]. - The declining interest rate environment has also pressured Guohua Life's profitability, leading to increased reserve requirements [2][6]. Related Parties and Transactions - Tianmao Group has significant receivables from related parties, amounting to 680 million yuan, primarily from Wuhan Guorong Real Estate [10]. - There are allegations of improper use of insurance funds, with reports indicating that these funds have been directed towards real estate projects and other investments [12].