Lian Life Insurance invests nearly 900 million yuan to acquire shares of Zhongshan Public, stating that there is no intention to increase holdings within the next year.

Once again, risk capital raises its stake.

On April 2, Zhongshan Public Utilities Group Co., Ltd. (Zhongshan Public Utilities, 000685.SZ) released an announcement, stating that regarding the planned transfer of part of the company’s shares by its controlling shareholder, Zhongshan Investment Holding Group Co., Ltd., through a publicly solicited transfer, the transferee has been determined. Li An Life Insurance Co., Ltd. (hereinafter referred to as “Li An Life”) is the final transferee. Both parties signed the “Share Transfer Agreement” on April 1. According to the announcement, the number of shares that Zhongshan Investment Holdings plans to transfer is 737.55567 million shares, accounting for 5% of Zhongshan Public Utilities’ current total share capital, and the transfer price is RMB 12.19 per share. The total consideration for the underlying share transfer is approximately RMB 899 million.

The announcement shows that prior to this share transfer, Zhongshan Investment Holdings held 719 million shares of Zhongshan Public Utilities, representing 48.73% of Zhongshan Public Utilities’ total share capital. After this change in equity, Zhongshan Investment Holdings’ shareholding will decrease to 645 million shares, and its shareholding proportion will fall to 43.73%. However, the company’s controlling shareholder and actual controller will not change. The number of shares held by Li An Life in Zhongshan Public Utilities increased from 46.000022 million shares to 120 million shares, and its shareholding ratio rose from 3.12% to 8.12%, making it a shareholder holding more than 5% of Zhongshan Public Utilities’ shares.

In terms of the transaction arrangements, Li An Life has paid a deposit of RMB 269.7 million before the agreement was signed. The deposit will be converted into the share transfer price on the date of share transfer. After this share transfer obtains approval from the Zhongshan Municipal State-owned Assets Supervision and Administration Commission and once the transferor issues a written notice, Li An Life is required to pay the remaining consideration of RMB 629 million in full within 5 business days. According to the agreement, within 10 business days after Zhongshan Investment Holdings receives all the share transfer consideration, it and Li An Life will jointly handle the share transfer procedures.

According to the announcement, Li An Life has committed that within 12 months after the completion of the share transfer under this agreement, it will not reduce its holdings of the transferred shares. After the completion of the share transfer, Li An Life also plans to appoint one non-independent director to Zhongshan Public Utilities.

Li An Life said it has no intention to continue increasing its holdings of Zhongshan Public Utilities over the next 12 months. In the 6 months prior to this transaction, Li An Life had conducted multiple trades of shares of Zhongshan Public Utilities.

Zhongshan Public Utilities stated that if this change in equity is completed smoothly, it will facilitate adjustments to the company’s equity structure and enhance the company’s core competitiveness. However, it does not touch upon a tender offer, does not constitute a related-party transaction, and will not have a material impact on the listed company’s ongoing operations.

The announcement also pointed out that although the “Share Transfer Agreement” has been signed for this transaction, it still needs to obtain approval from the state-owned assets supervision and management authority before it can take effect. In addition, subsequent review and approval from relevant government departments are still required, and it must pass the compliance review by the Shenzhen Stock Exchange. Only after that can the share transfer registration procedures be handled with the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. Therefore, whether the transaction can be ultimately completed still involves uncertainty.

According to available information, Zhongshan Public Utilities was established in 1998. It is a state-owned, state-controlled listed company on the main board in Zhongshan City. Its current core business is environmental protection and water services, and its operations cover solid waste, new energy, engineering construction, and supporting segments.

Previously, in July 2025, Li An Life raised its stake in another water services company—Jiangsu Jiangnan Water Co., Ltd. (Jiangnan Water, 601199.SH). According to disclosures, Li An Life currently holds 5.41% of Jiangnan Water’s shares, and it also holds 5.83% of Shenzhen International (0152.HK).

Li An Life was established in July 2011, with its headquarters in Nanjing, Jiangsu. It is a nationwide personal insurance company established with approval from China’s National Financial Regulatory authorities.