Fanhua to acquire 51% of equity interests in Wuhan Taiping Online

Fanhua announced that it has signed a definitive agreement with the existing shareholders of Wuhan Taiping Online to acquire 51% of the equity interests of Taiping. The transaction is expected to be completed in the first quarter, subject to certain customary conditions. Pursuant to the agreement, the company will acquire 51% of the equity interests of Taiping with stock considerations of up to 455,357 American Depositary Shares. Taiping is estimated to generate gross written premiums of no less than RMB 160 and net income of RMB 10M in 2025, representing compound annual growth rates of 40% and 26% from 2023 to 2025, respectively. The stock consideration, adjustable based on the achievement of certain performance targets in the next three years by Taiping, is subject to a lock-up period of three years and will be released from lock-up in two batches after 2025. Taiping has run a successful business through the implementation of the ‘Triple-R’ marketing model. It boasts a highly productive sales force with per capita productivity of over RMB 600,000, far above the industry average.