New stock news | Hand Group passes the hearing of the Hong Kong Stock Exchange, becoming China's second largest online insurance intermediary.

According to the disclosure on May 15th by the Hong Kong Stock Exchange, the SHOUHUI Group Limited (hereinafter referred to as "SHOUHUI Group") underwent a listing hearing on the main board of the Hong Kong Stock Exchange, with Huatai International and CICC acting as its joint sponsors. According to the prospectus, the company is a Chinese life insurance intermediary service provider, dedicated to providing insurance service solutions to policyholders and insured persons online through a life insurance transaction and service platform. The insurance products distributed by the company (including those co-developed with insurance companies) are underwritten by insurance companies, and do not assume any underwriting risks. The majority of customers are Chinese insurance companies. The main suppliers include insurance agents, promotional service providers, and licensed brokers and agents. According to data from Frost & Sullivan, the size of China's life insurance market in terms of total premiums was RMB 3.8 trillion in 2023. The company mainly competes with insurance intermediary agencies and internal sales personnel of insurance companies. Additionally, it also competes with other market participants (including bank insurance channels and insurance agency companies). In 2023, the total premium of China's life insurance intermediary market reached RMB 237 billion, accounting for 6.3% of the total premium of China's life insurance market. In 2023, based on the total premium of China's life insurance intermediary market, the company ranked eighth with a market share of 2.9%. Online intermediaries dominate the life insurance intermediary market in China, accounting for 89.1% of the total premium of China's life insurance intermediary market in 2023. In terms of the total premium of long-term life insurance in 2023, the company is the second largest online insurance intermediary in China, with a market share of 7.3%, second only to a major participant in the market with a 45.5% share. In terms of the first-year premium of long-term life insurance in 2023, the company is the second largest online insurance intermediary in China. The company provides insurance transaction services to cooperating insurance companies, most of which are major insurance companies in China. Revenue mainly comes from commissions paid by insurance companies to the company for successfully distributing their underwritten insurance products to policyholders and insured persons. Revenue is usually calculated as a percentage of the premium from policies distributed through the company. During the historical period, the company established partnerships with over 110 insurance companies, including more than 70% of China's life insurance companies. The company distributes life insurance products through three platforms via three distribution channels, namely (1) direct distribution on Small Umbrella, (2) distribution through insurance agents on Kacha Bao, and (3) distribution with the assistance of Niubao 100 through business partners. Policyholders can purchase directly through Small Umbrella, allowing them to make purchases on a single platform. The company uses Kacha Bao to assist insurance agents in serving policyholders and insured persons, and uses Niubao 100 to reach a wider range of policyholders and insured persons. The company's platforms support insurance agents and business partners by facilitating distribution and providing comprehensive support throughout the insurance transaction process. Commissions collected by insurance companies are used to pay commissions or channel promotion fees to successful insurance agents and business partners. As of December 31, 2024, over 1.6 million policyholders and over 2.4 million insured persons hold policies distributed by the company that remain effective. The insurance products offered cover different needs of policyholders in different age groups. By providing comprehensive insurance services, the company has established close connections with policyholders and insured persons. The company's policyholders are mainly from the 30-45 age group in first and second-tier cities in China, with the 30-45 age group contributing 63.4% of the total premium and 72.2% of the distributed policies during the historical period. According to data from Frost & Sullivan, the 30-45 age group in China is the mainstream consumer group of insurance products, with a high level of acceptance of online insurance transactions and services, and a preference for completing insurance transactions online. In terms of financials, in 2022, 2023, and 2024, the SHOUHUI Group had revenues of approximately RMB 806 million, RMB 1.634 billion, and RMB 1.387 billion, respectively; during the same period, the annual profits were approximately RMB 131 million, -RMB 356 million, and -RMB 136 million, respectively.