Form 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2011
Commission File Number: 001-33768
CNINSURE INC.
22/F, Yinhai Building
No. 299 Yanjiang Zhong Road
Guangzhou, Guangdong 510110
Peoples Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): o
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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CNinsure Inc.
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By: |
/s/ Yinan Hu
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Name: |
Yinan Hu |
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Title: |
Chief Executive Officer |
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Date: March 28, 2011
Exhibit Index
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Exhibit 99.1
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Press Release |
Exhibit 99.1
Exhibit 99.1
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IR-112 |
CNinsure Sells Datong Life Business Unit to Warburg Pincus
GUANGZHOU, China, March 26, 2011 (GLOBE NEWSWIRE) CNinsure Inc. (Nasdaq: CISG) (the Company or
CNinsure), a leading independent insurance intermediary company operating in China, today
announced that it has reached definitive agreements to sell its 55% equity interest in Beijing
Fanhua Datong Investment Management Co., Ltd. (Datong) to Winner Sight Global Limited, an
affiliated entity of Warburg Pincus LLC.
The cash consideration for the sale is approximately USD63.69 million. In addition, Datong agreed
to pay a cash dividend of RMB10 million exclusively to CNinsure. The transaction has been completed
on March 25, 2011.
Datong, in which CNinsure acquired 55% equity interest for RMB220 million in the fourth quarter of
2008, was primarily engaged in the distribution of life insurance products. Net revenues and net
income derived from Datong for fiscal year 2010 were RMB251.1 million and RMB29.7 million,
respectively, representing 16.9% and 7.0% of the Companys total net revenues and net income
attributable to shareholders, respectively.
Commenting on the sale of Datong, Mr. Yinan Hu, CNinsures chairman and chief executive officer,
stated, We started our life insurance distribution business by building a Life Insurance Business
Unit in 2006 and established Datong Life Business Unit in 2008 by acquiring 55% stake in Datong.
Over the past two years, both of our life insurance business units have achieved astonishing
growth. However, the difference in the two business units business philosophies and corporate
cultures has been increasingly presenting challenges to us in resources allocation. Therefore, in
order to avoid potential internal friction and streamline our business structure for more effective
management and resources allocation, we decided to sell all the equity interest we hold in Datong.
The sale of Datong will not lead to any change in our growth strategies. Life insurance business
remains to be our strategic focus. We will continue to strengthen our investment in the life
insurance business to increase its contribution to the Company.
2011 is the year for internal restructuring for CNinsure. We are committed to continuously
refining our organizational structure and business model, as well as building a unified corporate
culture, enhancing organization at subsidiary level and optimizing profit model, which we believe
will pave the way for a quality and sustainable growth in the next 10 years, Mr. Hu concluded.
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IR-112 |
About CNinsure Inc.
CNinsure is a leading independent intermediary company operating in China. CNinsures distribution
network reaches many of Chinas most economically developed regions and affluent cities. The
Company distributes a wide variety of property and casualty and life insurance products
underwritten by domestic and foreign insurance companies operating in China, and provides insurance
claims adjusting as well as other insurance-related services.
Forward-looking Statements
This press release contains statements of a forward-looking nature. These statements 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, the managements
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 CNinsures
limited operating history, especially its limited experience in selling life insurance products,
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 March 26, 2011, 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 CNinsures filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F.
Contact
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2777 x 850
Email: qiusr@cninsure.net
Source: CNinsure Inc.