BRIEF: Shouhui launches $25 million IPO as revenue falls, loss narrows

Insurance distributor Shouhui Group Ltd. (2621.HK) launched its Hong Kong IPO on Thursday, aiming to sell 24.36 million shares priced between HK$6.48 and HK$8.08 to raise up to HK$196 million ($25 million). The subscription period ends next Tuesday, with trading set to commence next Friday.

Shouhui ranked eighth based on total premiums in China’s life insurance intermediary market in 2023. The company controlled 7.3% of the market for online life insurance distribution – making it China’s second-largest digital player in the segment.

The company reported 2024 revenue of 1.39 billion yuan, down 15% year-on-year, as its loss narrowed 61% to 136 million yuan year-on-year. Management attributed the revenue decline to reduced demand for long-term life insurance during China’s economic slowdown.

The company’s net liabilities roughly doubled from 374 million yuan in 2022 to 740 million yuan last year. The company said the big increase stemmed from financial instruments classified as liabilities issued to pre-IPO investors, which will convert to ordinary shares post-listing.

By Lau Chi Hang

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