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Nov 21,2016

CNinsure Reports Third Quarter 2016 Unaudited Financial Results

  • Quarterly Net Revenues Beat Guidance, Up 66.3%

GUANGZHOU, China, Nov. 21, 2016 (GLOBE NEWSWIRE) -- CNinsure Inc., (Nasdaq:CISG), (the "Company" or "CNinsure"), a leading independent online-to-offline ("O2O") financial services provider in China, today announced its unaudited financial results for the third quarter ended September 30, 20161.

(In thousands, except per ADS)2015 Q3
RMB
2016 Q3
 (RMB)
2016 Q3
 (US$)
Change %
Total net revenues716,7441,192,242178,787 66.3
Operating income22,5487,5241,128-66.6
Marketing campaign expenses2269108,03116,20040,060.2
Net income attributable to
the Company's shareholders
41,87632,0934,813-23.4
Basic net income per ADS0.730.550.08-24.1

Financial Highlights for Third Quarter of 2016:

Key Operational Metrics for CNinsure's Online Initiatives for the Third Quarter of 2016:

  • CNpad Mobile Application ("CNpad App") - Our proprietary mobile sales support system:
    • CNpad App has been downloaded and activated 165,638 times as of September 30, 2016, as compared to 136,909 times as of June 30, 2016 and 93,230 times as of September 30, 2015;
    • The number of active users3 of CNpad App was 36,219 in the third quarter of 2016, as compared to 28,675 in the second quarter of 2016 and 30,752 in the third quarter of 2015;
    • Insurance premiums generated through CNpad App were approximately RMB976.1 million (US$146.6 million) in the third quarter of 2016, as compared to RMB 750.2 million in the second quarter of 2016 and RMB795.7 million in the third quarter of 2015. Total insurance premiums generated through CNpad App accounted for 26.6% of our total insurance premiums in the third quarter of 2016 as compared to 22.0% in the second quarter of 2016 and 33.0% in the third quarter of 2015.
  • eHuzhu - Our online non-profit mutual aid platform:
    • The number of registered members was approximately 1.1 million as of September 30, 2016, as compared to 872,922 as of June 30, 2016 and 540,000 as of September 30, 2015.
  • Baoxian.com - Our online insurance platform:
    • The number of registered customer accounts was 493,120 in the third quarter of 2016, as compared to approximately 375,000 in the second quarter of 2016 and approximately 268,000 in the third quarter of 2015;
    • The number of active customer accounts4 was 53,386 in the third quarter of 2016, as compared to 24,727 in the second quarter of 2016 and 13,469 in the third quarter of 2015;
    • Insurance premiums generated on or through Baoxian.com was RMB19.4 million (US$2.9 million) in the third quarter of 2016, as compared to RMB19.3 million in the second quarter of 2016 and RMB10.6 million in the third quarter of 2015. The moderate increase was primarily due to lower average purchase per active customer despite a significant increase in the number of active customer accounts.

Operating Data:

  • As of September 30, 2016, CNinsure's distribution network consisted of 608 sales outlets operating in 21 provinces, compared with 409 sales outlets operating in 17 provinces as of September 30, 2015. Its claims adjusting service network covered 29 provinces with 153 service outlets as of September 30, 2016, compared with 161 service outlets in 27 provinces as of September 30, 2015. CNinsure had 190,261 sales agents and 1,347 professional claims adjustors as of September 30, 2016, compared with 93,240 sales agents, and 1,447 professional claims adjustors as of September 30, 2015.

Commenting on the third quarter of 2016 financial results, Mr. Chunlin Wang, chief executive officer of CNinsure, stated, "We continued to record accelerated growth for the third quarter of 2016, with insurance premiums growing 52.0% year-over-year and revenues increasing 66.3% year-over-year, leading to RMB7.5 million (US$1.1 million) in operating profit."

"Our positive operating profit in the third quarter of 2016, compared to an operating loss of RMB8.2 million in the second quarter of 2016, exceeded our expectations. We believe this growth was attributable to 1) the positive results of our marketing strategy in propelling the growth of both our property and casualty (P&C) insurance and our life insurance businesses; and 2) improvements in our  internet technology, which led to improved back-office efficiency and cost reductions in operating costs."

Financial Results for the Third Quarter of 2016

Total net revenues were RMB1.2 billion (US$178.8 million) for the third quarter of 2016, representing an increase of 66.3% from RMB716.7 million for the corresponding period in 2015.

  • Net revenues for the insurance agency business were RMB978.4 million (US$146.7 million) for the third quarter of 2016, representing an increase of 79.9% from RMB543.8 million for the corresponding period in 2015. The increase was primarily driven by a 56.8% increase in net revenues derived from the P&C insurance agency business, from RMB456.2 million for the third quarter of 2015 to RMB715.2 million (US$107.2 million) for the third quarter of 2016, and a 200.5% increase in net revenues derived from the life insurance agency business, from RMB87.6 million for the third quarter of 2015 to RMB263.2 million (US$39.5 million) for the third quarter of 2016. The growth of the P&C insurance agency business was primarily due to a 46.9% growth in insurance premiums as a result of enhanced marketing efforts. The increase in net revenues generated from the life insurance agency business was primarily due to a 216.0% increase in commissions derived from new long-term life insurance policy sales, primarily driven by the successful implementation of our cross-selling strategy and enhanced marketing efforts. Revenues generated from the insurance agency business accounted for 82.1% of total net revenues in the third quarter of 2016.
  • Net revenues for the insurance brokerage business were RMB129.1 million (US$19.4 million) for the third quarter of 2016, representing an increase of 41.9% from RMB91.0 million for the corresponding period in 2015. Revenues generated from the insurance brokerage business accounted for 10.8% of total net revenues in the third quarter of 2016.
  • Net revenues for the claims adjusting business were RMB84.7 million (US$12.7 million) for the third quarter of 2016, representing an increase of 3.4% from RMB81.9 million for the corresponding period in 2015. Revenues generated from the claims adjusting business accounted for 7.1% of total net revenues in the third quarter of 2016.

Total operating costs and expenses were RMB1.2 billion (US$177.7 million) for the third quarter of 2016, representing an increase of 70.7% from RMB694.2 million for the corresponding period in 2015.

  • Total operating costs were RMB912.5 million (US$136.8 million) for the third quarter of 2016, representing an increase of 67.7% from RMB544.1 million for the corresponding period in 2015. The increase was primarily due to sales growth.
    • Costs of insurance agency business were RMB760.2 million (US$114.0 million) for the third quarter of 2016, representing an increase of 79.3% from RMB424.0 million for the corresponding period in 2015, primarily driven by a 57.8% increase in costs for the P&C insurance agency business from RMB366.5 million for the third quarter of 2015 to RMB578.3 million (US$86.7 million) for the third quarter of 2016, and a 216.0% increase in costs for the life insurance agency business from RMB57.5 million for the third quarter of 2015 to RMB181.9 million (US$27.3 million) for the third quarter of 2016. The increase in costs for the P&C insurance agency business largely tracked sales growth and an increase in average commission level paid to sales agents in the market driven by increased competition in the auto insurance market. Costs for the life insurance agency business increased in line with revenues growth in the third quarter of 2016. Costs incurred by the insurance agency business accounted for 83.3% of total operating costs in the third quarter of 2016.
    • Costs of insurance brokerage business were RMB103.5 million (US$15.5 million) for the third quarter of 2016, representing an increase of 42.9% from RMB72.5 million for the corresponding period in 2015. The increase was primarily due to sales growth. Costs incurred by the insurance brokerage business accounted for 11.3% of total operating costs in the third quarter of 2016.
    • Costs of claims adjusting business were RMB48.8 million (US$7.3 million) for the third quarter of 2016, representing an increase of 2.6% from RMB47.6 million for the corresponding period in 2015. The increase was primarily due to sales growth. Costs incurred by the claims adjusting business accounted for 5.4% of total operating costs in the third quarter of 2016.
  • Selling expenses were RMB154.1 million (US$23.1 million) for the third quarter of 2016, representing an increase of 427.1% from RMB29.2 million for the corresponding period in 2015, primarily attributable to RMB108.0 million (US$16.2 million) in marketing expenses in the third quarter of 2016.
  • General and administrative expenses were RMB118.2 million (US$17.7 million) for the third quarter of 2016, representing a decrease of 2.3% from RMB120.9 million for the corresponding period in 2015. The decrease was primarily due to decreases in share-based compensation expenses.

As a result of the preceding factors, we had an operating income of RMB7.5 million (US$1.1 million) for the third quarter of 2016, representing a decrease of 66.6% from RMB22.5 million for the corresponding period in 2015.

Operating margin was 0.6% for the third quarter of 2016, compared with 3.1% for the corresponding period in 2015.

Investment income was RMB18.4 million (US$2.8 million) for the third quarter of 2016, representing an increase of 77.2% from RMB10.4 million for the corresponding period in 2015. The investment income represented yields from short-term investments in financial products which mainly consist of inter-bank deposits or collective trust products with a term of half a year to two years and interest payments on a quarterly, semi-annual or annual basis. Our investment income fluctuates from quarter to quarter because these investments are classified as available for sales and investment income is recognized when received.

Interest income was RMB0.2 million (US$33,000) for the third quarter of 2016, representing a decrease of 98.3% from RMB12.9 million for the corresponding period in 2015. The decrease in interest income was primarily due to decrease in term deposits as a result of an increase in short-term investments.

Income tax expense was RMB5.8 million (US$0.9 million) for the third quarter of 2016, representing an increase of 45.9% from RMB4.0 million for the corresponding period in 2015. The increase was primarily due to the relatively low income tax expense incurred in the corresponding period in 2015 as a result of non-taxable capital gains generated from the disposal of Chetong.net and the utilization of tax loss carryforward previously recognized as deferred tax allowance. The effective tax rate for the third quarter of 2016 was 20.2% compared with 8.1% for the corresponding period in 2015.

Share of income of affiliates was RMB13.1 million (US$2.0 million) for the third quarter of 2016, representing an increase of 219.5% from RMB4.1 million for the corresponding period in 2015, mainly attributable to an increase in profits from Sincere Fame International Limited, in which the Company owns 20.6% of the equity interests.

Net income attributable to the Company's shareholders was RMB32.1 million (US$4.8 million) for the third quarter of 2016, representing a decrease of 23.4% from RMB41.9 million for the corresponding period in 2015.

Net margin was 2.7% for the third quarter of 2016 compared with 5.8% for the corresponding period in 2015.

Basic and diluted net income per ADS were RMB0.55 (US$0.08) and RMB0.53 (US$0.08) for the third quarter of 2016, respectively, representing respective decreases of 24.1% and 24.1% from RMB0.73 and RMB0.70 for the corresponding period in 2015.

As of September 30, 2016, the Company had RMB231.5 million (US$34.7 million) in cash and cash equivalents.

Business Outlook

CNinsure expects its total net revenues to grow by approximately 40% for the fourth quarter of 2016 compared with the corresponding period in 2015. This forecast reflects CNinsure's current view, which is subject to change.

Conference Call

The Company will host a conference call to discuss its third quarter 2016 financial results as per the following details.

Time: 8:00 PM Eastern Time on November 21, 2016
     or 9:00 AM Beijing/Hong Kong Time on November 22, 2016

The toll free dial-in numbers: 
United States1-855-500-8701
United Kingdom0800-015-9724
France0800-918-648
Germany0800-184-4876
Australia1-300-713-759
Canada1-855-757-1565
Taiwan0080-665-1951
Hong Kong800-906-606
  
The toll dial-in numbers: 
China (Mainland)400-120-0654
Singapore & Other Areas+65-6713-5440
  
Conference ID #: 12420951 

Additionally, a live and archived web cast of this call will be available at: 
http://ir.cninsure.net/events.cfm

About CNinsure Inc.

CNinsure Inc. is a leading independent online-to-offline financial services provider. Through our online platforms and offline sales and service network, we offer a wide variety of financial products and services to individuals and businesses, including property and casualty and life insurance products. We also provide insurance claims adjusting services, such as damage assessments, surveys, authentications and loss estimations.

Our online platforms include (1) CNpad, a mobile sales support application, (2) Baoxian.com, an online entry portal for comparing and purchasing health, accident, travel and homeowner insurance products; and (3) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China. Our extensive distribution and service network covers 29 provinces in China, including most economically developed regions and cities.

For more information about CNinsure Inc., please visit http://ir.cninsure.net/.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. Among other things, management's quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about CNinsure and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract and retain productive agents, especially entrepreneurial agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, quarterly variations in its operating results caused by factors beyond its control and macroeconomic conditions in China and their potential impact on the sales of insurance products. All information provided in this press release is as of the date hereof, and CNinsure undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although CNinsure believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by CNinsure is included in CNinsure's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

  
CNINSURE INC.  
Unaudited Condensed Consolidated Balance Sheets 
(In thousands) 
             
 As of  December 31,
 As of September 30,
 As of September 30,
 
  2015   2016   2016  
 RMB
 RMB
 US$
 
ASSETS:            
Current assets:            
Cash and cash equivalents  1,115,266   231,512   34,717  
Restricted cash  17,585   26,721   4,007  
Short term investments  2,026,256   2,656,500   398,366  
Accounts receivable, net  241,264    440,701   66,087  
Insurance premium receivables  1,526   756   113  
Other receivables  51,828   50,129   7,517   
Amounts due from related parties  36,508   32,654   4,897  
Other current assets  22,828   34,177   5,125  
Total current assets   3,513,061   3,473,150   520,829  
             
Non-current assets:            
Property, plant, and equipment, net  34,145   30,370   4,554  
Goodwill and intangible assets, net  153,182   190,349   28,545  
Deferred tax assets  1,658   14,427   2,163  
Investment in affiliates  284,194   279,725   41,947  
Other non-current assets  28,188   28,188   4,227  
Total non-current assets  501,367   543,059   81,436  
Total assets  4,014,428   4,016,209   602,265  
             
LIABILITIES AND EQUITY:            
Current liabilities:            
Accounts payable (including accounts payable of the consolidated variable interest entities ("VIEs") without recourse to CNinsure Inc. of RMB4,141 and nil as of December 31, 2015 and September 30, 2016, respectively)  160,891   196,031   29,397  
Insurance premium payables (including insurance premium payables of the consolidated VIEs without recourse to CNinsure Inc. of RMB1,680 and nil as of December 31, 2015 and September 30, 2016, respectively)  5,187   5,485   823  
Other payables and accrued expenses (including other payables and accrued expense of the consolidated VIEs without recourse to CNinsure Inc. of RMB5,720 and nil as of December 31, 2015 and September 30, 2016, respectively)  213,562   283,931   42,578  
Accrued payroll (including accrued payroll of the consolidated VIEs without recourse to CNinsure Inc. of RMB1,625 and nil as of December 31, 2015 and September 30, 2016, respectively)  48,150   47,975   7,194  
Income tax payable (including income tax payable of the consolidated of VIEs without recourse to CNinsure Inc. of RMB1,152 and nil as of December 31, 2015 and September 30, 2016, respectively)  60,658   77,211   11,578  
Total current liabilities  488,448   610,633   91,570   
             
Non-current liabilities:            
Other tax liabilities  70,354   71,412   10,709  
Deferred tax liabilities  22,057   14,687   2,202  
Total non-current liabilities  92,411   86,099   12,911  
Total liabilities  580,859   696,732   104,481  
              
Ordinary shares  8,592   8,652   1,297  
Additional paid-in capital  2,454,244    2,301,261   345,094  
Statutory reserves  302,115   301,681   45,240  
Retained earnings  871,356   954,243   143,097  
Accumulated other comprehensive loss  (50,048)  (79,585)  (11,935) 
Subscription receivables  (268,829)  (276,743)  (41,500) 
Total CNinsure Inc. shareholders' equity  3,317,430   3,209,509   481,293  
Non-controlling interests  116,139   109,968   16,491  
Total equity  3,433,569   3,319,477   497,784   
Total liabilities and equity  4,014,428   4,016,209   602,265  
             

 

CNINSURE INC.
       
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income
(In thousands, except for shares and per share data)
       
 For The Three Months Ended
 For The Nine Months Ended
 September 30,
 September 30,
 2015 2016 2016 2015 2016  2016
 RMB
 RMB
 US$
 RMB
 RMB
 US$
                        
Net revenues:                       
Agency 543,846   978,438   146,725   1,486,908   2,526,767   378,911 
Brokerage 90,969   129,116   19,362    274,164   406,654   60,981 
Claims adjusting 81,929   84,688   12,700   207,233   232,739   34,901 
Total net revenues 716,744    1,192,242   178,787   1,968,305   3,166,160   474,793 
Operating costs and expenses:                       
Agency (424,048)  (760,188)  (113,997)  (1,160,911)  (1,974,227)  (296,052)
Brokerage (72,415)  (103,452)  (15,514)   (218,255)  (324,474)  (48,658)
Claims adjusting (47,621)  (48,838)  (7,324)  (128,679)   (142,537)  (21,375)
Total operating costs (544,084 )  (912,478)  (136,835)  (1,507,845)  (2,441,238)  (366,085)
Selling expenses (29,231)  (154,085)  (23,106)  (86,670)   (403,612)  (60,525)
General and administrative expenses (120,881)  (118,155)  (17,718)   (328,095)  (341,966)  (51,281)
Total operating costs and expenses (694,196)  (1,184,718)  (177,659)  (1,922,610)   (3,186,816)  (477,891)
Income (loss) from operations 22,548   7,524   1,128   45,695   (20,656)  (3,098)
Other income, net:                        
Investment income 10,358   18,352   2,752   44,738   64,584   9,685 
Interest income 12,947   220   33    48,028   6,573    986 
Others, net 3,062   2,377   357   8,009   8,713   1,307 
Income before income taxes and income of affiliates 48,915    28,473   4,270    146,470   59,214   8,880 
Income tax expense (3,950)  (5,765)  (864)  (16,989)  (7,842)  (1,176)
Share of income of affiliates 4,087   13,059   1,958   24,444   34,398   5,158 
                        
Net income 49,052   35,767   5,364   153,925   85,770   12,862 
Less: net gain (loss) attributable to noncontrolling interests 7,176    3,674   551   (1,072)  3,318   498 
Net income attributable to the Company's shareholders 41,876   32,093   4,813    154,997   82,452   12,364 
                        
Net income per share:                       
Basic 0.04   0.03   0.00   0.13   0.07   0.01 
Diluted 0.03   0.03   0.00   0.13   0.07   0.01 
                         
Net income per ADS:                       
Basic 0.73   0.55   0.08   2.69   1.42   0.21 
Diluted 0.70   0.53   0.08   2.58   1.37   0.20 
                        
Shares used in calculating net income per share:                       
Basic  1,151,945,764   1,163,302,341   1,163,302,341   1,151,327,395   1,159,295,688   1,159,295,688 
Diluted 1,200,958,840   1,212,231,308   1,212,231,308   1,202,347,993   1,207,220,255   1,207,220,255 
                        
Net income  49,052   35,767   5,364   153,925   85,770   12,862 
Other comprehensive income, net of tax: Foreign currency translation adjustments 5,318   4,431   664    5,143   9,328    1,399 
Share of other comprehensive loss of affiliates, net of tax    (10,505)   (1,575)     (38,866)  (5,828)
Comprehensive income 54,370   29,693   4,453   159,068   56,232   8,433 
Less: Comprehensive income ( loss) attributable to the noncontrolling interests 7,176   3,674   551   (1,072)  3,318    498 
Comprehensive income attributable to the CNinsure Inc's shareholders 47,194   26,019   3,902   160,140   52,914   7,935 
                        

 

CNINSURE INC. 
Unaudited Condensed Consolidated Statements of Cash Flow 
(In thousands) 
   For The Three Months Ended
 For The Nine Months Ended
 
   September 30,
 September 30,
 
   2015  2016  2016  2015  2016  2016  
   RMB  RMB  US$  RMB  RMB  US$  
OPERATING ACTIVITIES                    
Net income  49,052  35,767  5,364  153,925  85,770  12,862  
Adjustments to reconcile net income to net cash generated from operating activities:                    
Depreciation  3,469  3,529  529  14,308  10,204  1,530  
Amortization of intangible assets  2,620  8,806  1,321  9,301  11,432  1,714  
Allowance for doubtful receivables  2,291  1,577  236  2,903  542  81  
Compensation expenses associated with  stock options  6,190       14,824  4,937  740  
Investment income  (10,152) (13,907) (2,085) (29,739) (37,926) (5,687) 
Loss on disposal of property, plant and equipment  22  99  15   17  101  15  
Share of income of affiliates  (4,087) (13,059) (1,958) (24,444) (34,398) (5,158) 
Changes in operating assets and liabilities  6,908  6,784   1,016  (33,191) (66,332) (9,947) 
Net cash generated from (used in) operating activities  56,313  29,596  4,438  107,904  (25,670) (3,850) 
                     
Cash flows used in investing activities:                    
Purchase of property, plant and equipment  (1,654) (3,523) (528) (3,818) (7,540) (1,131) 
Proceeds from disposal of property and equipment  63      380  48  7  
Purchase of short term investments  (405,000) (1,689,500) (253,355) (955,000) (6,541,800) (981,000) 
Proceeds from disposal of short term investment  22,300  1,703,007  255,381  290,787  5,946,400  891,715  
Acquisition of subsidiary, net of cash    (4,185) (628)   (4,185) (628) 
Disposal of subsidiaries, net of cash  18,892  50  7  15,476  29,376  4,405  
Increase in restricted cash  (2,251) (4,148) (622) (8,336) (9,136) (1,370) 
Purchase of intangible assets    (40,000) (5,998)   (60,000) (8,997) 
Addition in investment in non-current assets  (9,000)     (10,000)     
Decrease in amounts due from related parties  27,712      111,939      
Net cash used in investing activities  (348,938) (38,299) (5,743) (558,572) (646,837) (96,999 ) 
                     
Cash flows used in financing activities:                     
Acquisition of additional interests in subsidiaries  (45,500) (138,774) (20,810) (153,500) (213,534) (32,021) 
Dividend distributed to noncontrolling interests        (2,450)      
Increase in capital injection by noncontrolling interests  17,000      17,000      
Repurchase of ordinary shares   (6,276)     (6,276)     
Proceeds on exercise of stock options  2   743  111  1,121  745  112  
Net cash used in financing activities   (34,774) (138,031) (20,699) (144,105) (212,789)  (31,909) 
                      
Net decrease in cash and cash equivalents  (327,399 ) (146,734) (22,004) (594,773) (885,296) (132,758) 
Cash and cash equivalents at beginning of period  1,835,519  374,740  56,195  2,103,068  1,115,266  167,244  
Effect of exchange rate changes on cash and cash equivalents  5,318  3,506  526  5,143  1,542  231  
Cash and cash equivalents at end of period  1,513,438  231,512  34,717  1,513,438  231,512  34,717   
                      
Interest paid              
Income taxes paid  1,104  216  32  3,849  3,544  531  
                     

1 This announcement contains currency conversions of certain Renminbi (RMB) amounts into U.S. dollars (US$) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.6685 to US$1.00, the effective noon buying rate as of September 30, 2016 in The City of New York for cable transfers of RMB as set forth in H.10 weekly statistical release of the Federal Reserve Board.

Marketing campaign expenses are defined as expenses related to targeted marketing activities to promote sales in order to gain more market shares, which is in line with the Company's long term growth strategy. Such expenses are included in selling expenses in the unaudited condensed consolidated income and comprehensive income.

3 Active users are defined as users who made at least one purchase through CNpad App during the specified period.

4 Active customer accounts are defined as customer accounts that made at least one purchase directly through www.baoxian.com or its mobile application during the specified period.

For more information, please contact:

Oasis Qiu

Investor Relations Manager

Tel: +86 (20) 8388-3191

Email: qiusr@cninsure.net

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Source: CNinsure Inc.

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