Hu Yinan Reinventing 20 Billionaires In 10 Years

Cheetah lounging in the grass, looks like a drowsy eye. In fact, binocular is scanning the prey in visual range.

Hu Yinan in 1998 is like a cheetah lying on the grass.

At that time, he was a lecturer in finance at a university in Guangzhou. He taught money, credit and other courses. He remained silent and thoughtful all day. Actually, he kept looking for entrepreneurial opportunities of "linking theory with practice".

9 years later, the pan China Insurance Service Group, founded by Hu Yinan, successfully landed on the NASDAQ. The money in books turned into real wealth. The path is also related to teaching courses, credit and insurance intermediaries.

In 90s of last century in Guangzhou, private cars began to enter families.

In 1998, Hu Yinan sniffed business opportunities and abandoned teaching and business to establish Nanfeng Automobile Club in Guangdong. He was also led by Lai Qiuping, deputy director of the law department of the same school.

The main profit mode of Nanfeng Automobile Club is to develop members. Each member pays 168 yuan. The club provides after-sales service such as car rescue and license for members.

The number of members quickly exceeded 10000, but Hu Yinan found that this mode simply couldn't make money. "1 cards sold for 168 yuan, 10 thousand sold only about 1000000, and there was little left after all kinds of costs."

The actual situation is even worse. From 1998 to 2000, Hu Yinan's Nanfeng automobile club lost more than 20 million.

The first barrel of gold was not dug up, and Hu Yinan began to look for another profit model.

In his business process, he found that selling car membership cards was far less profitable than selling auto insurance.

Just like the cheetah will not give up the prey to enter the field of vision, Hu Yinan will not miss this business.

He soon decided to develop members free of charge, and then to earn profits by selling insurance to members.

In October, the successful landing of the NASDAQ pan China insurance service group started in the form of agency insurance.

Hu Yinan also found that automobile consumption credit was popular at that time. Because of the difficulty in judging personal credit, banks generally did not dare to rush out loans.

He and Lai Qiuping immediately decided to set up a special mortgage service company to provide clients with credit investigation and loan process implementation, as well as management services after loans.

Automobile consumer loan service soon became the development engine of Pan China's initial business.

The mode of Pan China has been recognized by international investors. The Cathay Pacific Wealth Fund has thrown an olive branch to pan China.

In 2001, with the support of Cathay Pacific Wealth Fund, pan China promoted auto consumption loans, automobile clubs and later housing mortgage loan services to the whole country.

The pan China insurance business has always been in a subordinate position under the prevailing environment of the insurance market.

In 2003, with the opening up of the domestic insurance market, the entry threshold of insurance intermediaries has been reduced.

This market opportunity was once again captured by Hu Yinan. In 2004 pan China decided to enter the insurance intermediary market in an all-round way.

Hu Yinan, a financial lecturer, was unwilling to repeat the existing development model of insurance intermediaries and decided to open up another path.

He found that many small and medium-sized intermediary companies were struggling or even withdrawing from the market because of insufficient capital, resulting in the failure to scale up and establish a high standard operation system.

According to Hu Yinan theory, insurance intermediaries have to survive and develop, and the cost of sales must be lower than that of insurance companies. Otherwise, insurance companies will choose to sell themselves.

However, cost reduction should be based on scale operation and cost management by selling multiple products of many companies.

Hu Yinan decided to launch a new pan China mode. Through large-scale capital investment, the establishment of a high standard operation system will support the development of distribution network. The development of distribution network will bring about scale and scale.

Only by joining the pan China platform can intermediary companies or agents solve the thorny problems of capital, management and hardware systems.

The pan China model was once again successful. By September 2006, the pan China Insurance Company had 2 wholly owned insurance brokers, 8 insurance agency companies, and 1 insurance brokers, and completed the construction of life insurance sales network in 8 provinces and municipalities nationwide.

The pan China mode won the favor of VC again. The 150 million venture capital fund of Ding Hui investment fund was accounted for in 2005.

"Pan China is not an insurance broking company, but a platform company," Hu Yinan defined his company.

In the next 10 years, the pan China business plan will create 20 billionaires, 200 millionaires, 2000 millionaires and 20000 middle-income people earning more than 100 thousand yuan in China in the next two years.

After stepping out of the silent period, Hu Yinan posted a hero sticker in Beijing, inviting insurance agents and agents to join pan China.

At the end of October 2007, the pan China Insurance Service Group successfully landed on NASDAQ and raised more than $200 million. It became Asia's first insurance intermediary business in the world's major capital markets.

According to the pan China Insurance Service Group capital relations investor general Meng Yang Fei, the company's share price has dropped after the listing, and has now risen to more than $17, which is higher than the IPO price of more than $1, basically reaching the company's expectations.

Hu Yinan decided to take the listing as a new start and mass produce billionaires through pan China's wealth creation program and fundraising.

Pan China's mode of wealth creation mainly focuses on the existing insurance intermediary companies and insurance agents.

For insurance intermediary companies, pan China provides capital support and free backup platform through "acquisition / equity participation + equity repurchase" to help them grow bigger and stronger.

After the business is done, the owner can choose to sell, pfer or sell it directly to pan China.

The price of Pan China is very attractive, which is 7 times the profit of the company.

Hu Yinan said, 7 times the price is based on the pricing principle of the global intercompany market. After the listing of the insurance intermediary companies, the P / E ratio is generally around 12, and the 7 times is the price after forty percent off, which is very cost-effective.

The company is mainly responsible for providing capital and operation platform support to agents wishing to start their own businesses.

After the success of the venture, the agent can also sell shares to pan China or replace pan China stock circulation.

In order to maintain the enthusiasm of entrepreneurs, Hu Yinan said Pan China would not take the form of 100% shareholding, and generally held 51% to 60% of the shares, the rest of the business owners, "let entrepreneurs be their own boss".

It is understood that there are several insurance intermediary companies and agents to join pan China's wealth creation program.

Hu Yinan's view of wealth creation in Pan China is similar to that of VC. However, he disagrees with it. "After the business is done or listed, VC's practice is to cash in and withdraw. What we have to do is often take over the shares of entrepreneurs.

Besides, we not only invest capital, but also provide a series of support such as backup platform. "

Whether to create 20 billionaires in 10, whether it is heroic or crazy, is still waiting for time to test.