More than three months after opening, Sheneng Property Insurance announced that it would accept Tianan Property Insurance's insurance business. However, Xishui, the controlling shareholder of Tianan Property Insurance, and former senior management members were punished by the Inner Mongolia Securities Regulatory Bureau and the Shanghai Stock Exchange.

Recently, Shenneng Property Insurance Co., Ltd.(hereinafter referred to as Shenneng Property Insurance) issued an announcement stating that with the approval of the State Financial Supervision and Administration Administration, Shenneng Property Insurance will be transferred to Tianan Property Insurance Co., Ltd.(hereinafter referred to as Tianan Property Insurance) insurance business.

Shenneng Property Insurance stated that the scope of this insurance business transfer is the insurance business carried out by Tianan Property Insurance in compliance with laws and regulations. The subsequent insurance liability of the insurance business transferred to Sheneng Property Insurance will be borne by Sheneng Property Insurance, and the legitimate rights and interests of policy rights holders (including but not limited to policyholders, insured persons, beneficiaries, etc.) will not be affected.

On the other hand, the Inner Mongolia Securities Regulatory Bureau and the Shanghai Stock Exchange have also issued documents recently. The former issued fines against Inner Mongolia Xishui Venture Co., Ltd.(hereinafter referred to as Xishui) and relevant executives, while the latter issued fines against Xishui and related responsible persons. Disciplinary action.

According to Xishui Co., Ltd.'s previous announcement, as an investment holding company, the company mainly engages in insurance, trading, investment management and other businesses through its holding subsidiaries. Among them, the insurance business income of the holding subsidiary Tianan Property Insurance accounts for Xishui's main business. More than 90% of the income has become its core business, and Tianan Property Insurance has become an important core subsidiary of Xishui Co., Ltd.

The fine disclosed by the Inner Mongolia Securities Regulatory Bureau showed that Xishui Co., Ltd. was ordered to correct and given a warning for failing to disclose important contracts as required, making false records in its 2018 annual report and 2019 annual report, and failing to disclose major events in a timely manner as required. A fine of 7.5 million yuan was imposed.

The above-mentioned illegal facts involve "Tomorrow Department" companies such as Huaxia Life Insurance, Tianan Life Insurance, and New Era Trust.

At the same time, the Inner Mongolia Securities Regulatory Bureau imposed penalties on members of the former Tianan Property Insurance leadership team. Specifically, Guo Yufeng, then chairman and general manager of Xishui Co., Ltd. and chairman and legal representative of Tianan Property Insurance, was warned and fined 2.1 million yuan. Gao Huanli, then president of Tianan Property Insurance, was warned and fined 2.1 million yuan. Zhang Xiangzhen, then chief financial officer, vice president and head of the finance department of Tianan Property Insurance, was warned and fined 1.2 million yuan. Tian Xin, then chief financial officer of Xishui Co., Ltd. and supervisor of Tianan Property Insurance, was warned and fined 800,000 yuan. Du Yeqin, then independent director of Xishui Co., Ltd. and chairman of the audit committee, was warned and fined 500,000 yuan. Su Hongwei, then secretary and director of the board of directors of Xishui Co., Ltd. and director of Tianan Property Insurance Co., Ltd., was warned and fined 350,000 yuan. Ma Shuwei, then secretary of the board of directors of Tianan Property Insurance Co., Ltd., was warned and fined 200,000 yuan.

It is worth noting that in view of the serious illegal acts of the parties Guo Yufeng and Gao Huanli, the Inner Mongolia Securities Regulatory Bureau decided: Guo Yufeng and Gao Huanli will be subject to a five-year market ban respectively. Starting from the date when the Self-Administration announced the decision, during the market ban period, they are not allowed to continue to engage in securities business in their original institutions or serve as directors, supervisors, and senior managers of the original listed companies or unlisted public companies. They are also not allowed to engage in securities business in any other institution or serve as directors, supervisors, or senior managers of other listed companies or unlisted public companies.

In terms of illegal circumstances, in terms of failing to disclose important contracts as required, in February, March and August 2018, Tianan Property Insurance, a subsidiary of Xishui, signed four trust plan beneficiary rights transfer and repurchase agreements with Huaxia Life Insurance Co., Ltd.(hereinafter referred to as Huaxia Life Insurance) respectively, with amounts of 16.98 billion yuan, 5.73 billion yuan, 4 billion yuan and 5.99 billion yuan respectively. The total amount of the above agreements is 32.7 billion yuan, accounting for 115.26% of the audited net assets of Xishui in 2017. Xishui failed to fulfill its information disclosure obligations in a timely manner in signing the trust plan beneficiary rights repurchase agreement as required, and related matters were not disclosed in the "2018 Semi-Annual Report" and "2018 Annual Report".

In terms of false records in the 2018 annual report and the 2019 annual report, in 2018, Tianan Property Insurance transferred the above-mentioned 32.7 billion yuan of trust plan beneficiary rights to Huaxia Life Insurance and Tianan Life Insurance respectively, and simultaneously signed a repurchase agreement for the 32.7 billion yuan trust plan beneficiary rights. According to the trust plan beneficiary rights transfer contract, Tianan Property Insurance terminated the recognition of relevant financial assets, reduced the "available-for-sale financial assets", and did not conduct accounting treatment on the repurchase agreement, understated the "sale of repurchase financial assets", which was not in compliance with the relevant provisions of "Accounting Standards for Enterprises No. 23-Transfer of Financial Assets", resulting in Xishui's 2018 and 2019 annual financial reports understating liabilities by 34.168 billion yuan and 36.316 billion yuan respectively. They accounted for 29.73% and 56.22% of Xishui's total audited assets for the current period respectively.

In 2019, Tian 'an Property Insurance did not account for two equity impairment losses of Chengdu Zhongde Xilazi Environmental Protection Technology Co., Ltd. and Deyang Zhongde Avis Environmental Protection Technology Co., Ltd. The above behavior led to a false increase in Xishui's 2019 annual report. The profit was 459 million yuan, accounting for 19.63% of Xishui's total audited profit in 2019.

In terms of failure to disclose major events in a timely manner in accordance with regulations, on June 8, June 16, June 23 and July 9, 2020, the "New Era Trust Lanhai No. 1109 Collective Fund Trust Plan","New Era Trust Lanhai No. 1308 Collective Fund Trust Plan","New Era Trust Lanhai No. 1273 Collective Fund Trust Plan" and "New Era Trust Lanhai No. 1299 Collective Fund Trust Plan" held by Tianan Property Insurance successively expired and failed to be paid on schedule. The total amount is 6.21 billion yuan, which may have a greater impact on the company's profits. Xishui failed to disclose the above-mentioned major events in a timely manner as required.

The Shanghai Stock Exchange has since disclosed the "Decision on Disciplinary Punishment against Inner Mongolia Xishui Venture Co., Ltd. and Relevant Responsible Persons". The violations of the listed companies and related entities involved are the same as the illegal facts disclosed by the Inner Mongolia Securities Regulatory Bureau.

In the end, the Shanghai Stock Exchange made the following disciplinary decision: Regarding Xishui Co., Ltd. and Guo Yufeng, then chairman and general manager, chairman and legal representative of Tianan Property Insurance, Gao Huanli, then president of Tianan Property Insurance, then chief financial officer, vice president and head of the finance department of Tianan Property Insurance, then secretary and vice president of Tianan Property Insurance, then secretary and vice president of Tianan Property Insurance, then secretary and director of the board of directors and director of Tianan Property Insurance, Tian Xin, then chief financial officer and supervisor of Tianan Property Insurance, Du Yeqin, then independent director and chairman of the Audit Committee, publicly condemned it and publicly determined that Guo Yufeng and Gao Huanli were not suitable for serving as directors, supervisors and senior managers of listed companies for five years.

On July 17, 2020, the former China Banking and Insurance Regulatory Commission announced that it would take over six institutions, including Tianan Property Insurance and Yi 'an Property Insurance, with a period of one year. On July 16, 2021, the China Banking and Insurance Regulatory Commission announced that it would extend the takeover period of the above six institutions by one year in accordance with the law, until July 16, 2022.

Since then, BYD controlled Yi 'an Property Insurance and renamed the latter to BYD Property Insurance; Zhonghui Life Insurance and Ruzhongren Life Insurance were established one after another, and the assets and liabilities of Tian' an Life Insurance and Huaxia Life Insurance were transferred respectively in accordance with the law.

In September 2023, the reply disclosed by the State Financial Supervision and Administration showed that it agreed that eight units, including Shenneng Investment Management Co., Ltd., Shanghai Lingang Garden Gold Investment Co., Ltd., Shanghai Lingang New Area Private Equity Management Co., Ltd., and Taizhou City State-owned Assets Investment Group Co., Ltd., Shenneng Co., Ltd., Shanghai SDIC Capital Management Co., Ltd., and Bailian Group Co., Ltd., jointly initiated the establishment of Shenneng Property Insurance Co., Ltd. The registered capital is 10 billion yuan and the registered place is Shanghai City.

In May this year, Sheneng Property Insurance officially opened, becoming the first national insurance company to settle in Lingang New Area.