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

Commission File Number: 001-33768

CNINSURE INC.

22/F, Yinhai Building
No. 299 Yanjiang Zhong Road
Guangzhou, Guangdong 510110
People’s 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.

Date: May 25, 2010

Exhibit Index

Exhibit 99.1	—	Press release

Exhibit 99.1

		IR-073

CNinsure Reports First Quarter 2010 Unaudited Financial Results

– Earnings Exceed Prior Guidance –

– Basic Net Income Per ADS up 47.9% to RMB1.476 (US$0.216) –

– 35% Year-over-Year Growth for Earnings Expected for Second Quarter 2010 –

GUANGZHOU, China, May 24, 2010/ PRNewswire-Asia-FirstCall/— CNinsure Inc., (Nasdaq: CISG), (the “Company” or “CNinsure”), a leading independent insurance intermediary company operating in China, today announced its unaudited financial results for the first quarter ended March 31, 2010.¹

Financial Highlights for First Quarter 2010:

•		Total net revenues: RMB282.0 million (US$41.3 million), representing an increase of 30.6% from the corresponding period of 2009.
•		Income from operations: RMB72.7 million (US$10.6 million), representing an increase of 58.3% from the corresponding period of 2009.
•		Operating margin was 25.8% for the first quarter of 2010, compared to 21.3% for the corresponding period of 2009.
•		Net income attributable to the Company’s shareholders: RMB67.3 million (US$9.9 million), representing an increase of 47.9% from the corresponding period of 2009, which exceeded the previous guidance of approximately 30% year-over-year growth.
•		Net margin was 23.9% for the first quarter of 2010, compared to 21.1% for the corresponding period of 2009.
•		Basic and diluted net income per American Depositary Share (“ADS”): RMB1.476 (US$0.216) and RMB1.429 (US$0.209), respectively, representing an increase of 47.9% and 43.3%, respectively, from the corresponding period of 2009.

“During the first quarter, we continued to deliver strong financial performance with total net revenues up 30.6% and earnings up 47.9% which exceeded our previous guidance. The inspiring results get us off to a good start to achieve our full year targets,” commenting on the first quarter financial results, Mr. Yinan Hu, chairman and chief executive officer of the Company, stated. “We are also glad that our strategy to develop life insurance business has produced positive returns with 156.7% growth in the first quarter, continuing to outpace other business lines.”

		IR-073

“Looking ahead, we remain optimistic about our prospects. We expect the next three to five years to be the golden period for the development of China’s insurance and financial services industries, in the wake of China’s widening economic recovery, the rapid accumulation of personal wealth by Chinese people and the PRC government’s stimulus incentives on domestic consumption. While continuing to solidify our leadership position in the professional insurance intermediary sector, we intend to explore new distribution channels and diversify our product and service offerings, so as to better capitalize on the opportunities presented by the growing demand from consumers for diversified financial services and products and to ensure the sustainable growth of our company in the long run.”

Financial Results for the First Quarter Ended March 31, 2010

Total net revenues for the first quarter ended March 31, 2010 were RMB282.0 million (US$41.3 million), representing an increase of 30.6% from RMB215.9 million for the corresponding period of 2009. The increase was primarily driven by the significant growth of the life insurance business, and an increase in performance bonuses paid by life insurers as a result of growth in sales volume and more contracts entered into with life insurers at group levels.

Total operating costs and expenses were RMB209.3 million (US$30.7 million) for the first quarter of 2010, representing an increase of 23.1% from RMB170.0 million for the corresponding period of 2009.

Commissions and fees expenses were RMB141.0 million (US$20.7 million) for the first quarter of 2010, representing an increase of 15.9% from RMB121.6 million for the corresponding period of 2009. The increase was primarily due to sales growth and largely tracked the increase in net revenues from commissions and fees.

Selling expenses were RMB14.5 million (US$2.1 million) for the first quarter of 2010, representing an increase of 86.5% from RMB7.8 million for the corresponding period of 2009, primarily due to sales growth and an increase in expenses incurred by newly established sales outlets.

General and administrative expenses were RMB53.9 million (US$7.9 million) for the first quarter of 2010, representing an increase of 32.7% from RMB40.6 million for the corresponding period of 2009. The increase was primarily due to the following factors:

(1)		an increase in share-based compensation expenses associated with the grant of options to various directors, officers and employees in February 2010;
(2)		an increase in depreciation of fixed assets as a result of the operation of the upgraded IT system in more affiliated entities in the first quarter of 2010; and
(3)		an increase in amortization of intangible assets as a result of the acquisitions that we made in 2009 and the first quarter of 2010.

		IR-073

As a result of the foregoing factors, income from operations was RMB72.7 million (US$10.6 million) for the first quarter of 2010, representing an increase of 58.3% from RMB45.9 million for the corresponding period of 2009. Operating margin was 25.8% for the first quarter of 2010, compared to 21.3% for the corresponding period of 2009.

In the first quarter of 2010, the Company acquired an additional 41% of equity interests in Hebei Fanlian Insurance Agency Co., Ltd. (“Hebei Fanlian”), which increased its equity interest from 10% to 51%. As a result, the Company recognized RMB10.2 million (US$1.5 million) investment income, representing gains from remeasuring the 10% equity interests formerly held by the Company in Hebei Fanlian. Meanwhile, RMB2.6 million (US$0.4 million) deferred income tax expense was recognized, which was included in income tax expense.

Interest income for the first quarter of 2010 was RMB6.3 million (US$0.9 million), representing a decrease of 35.7% from RMB9.8 million for the corresponding period of 2009, primarily due to a decrease in bank deposit.

Income tax expense for the first quarter of 2010 was RMB23.0 million (US$3.4 million), representing an increase of 48.3% from RMB15.5 million for the corresponding period of 2009. The increase was primarily attributable to the increases of operating income. The effective income tax rate applicable to the Company was 25.7% for the first quarter of 2010, compared to 27.4% for the corresponding period of 2009.

Net income attributable to the Company’s shareholders was RMB67.3 million (US$9.9 million) for the first quarter of 2010, representing an increase of 47.9% from RMB45.5 million for the corresponding period of 2009. Net income attributable to the Company’s shareholders excluding the investment income and deferred income tax expense in relation to the aforementioned acquisition of the additional equity interests in Hebei Fanlian was RMB59.7 million (US$8.7 million) for the first quarter of 2010, representing an increase of 31.0% from the corresponding period of 2009.

Net margin was 23.9% for the first quarter of 2010, compared to 21.1% for the corresponding period of 2009.

Basic net income per ADS was RMB1.476 (US$0.216) for the first quarter of 2010, representing an increase of 47.9% from RMB0.998 for the corresponding period of 2009. Fully diluted net income per ADS was RMB1.429 (US$0.209) for the first quarter of 2010, representing an increase of 43.3% from RMB0.997 for the corresponding period of 2009.

As of March 31, 2010, the Company had RMB1,346.2 million (US$197.2 million) in cash and cash equivalents.

		IR-073

Recent Developments:

•		On May 13, 2010, CNinsure signed a corporate-to-corporate strategic partnership agreement with PICC Property and Casualty Company Limited, the largest property and casualty insurance company in China, for product distribution, development of custom-designed insurance products, data sharing and the outsourcing of claims adjusting services. This is the fifth strategic partnership agreement CNinsure has signed with property and casualty insurance companies at the group level. With the signing of this agreement, CNinsure has entered into strategic partnership with all of the top three property and casualty insurance companies in China, including PICC P&C, Ping An Property & Casualty Insurance Company Of China, Ltd. and China Pacific Property Insurance Co., Ltd.
•		On April 23, 2010, the Company’s board of directors declared a cash dividend of US$0.013 per ordinary share, equivalent to US$0.26 per American Depositary Share, which amounts to a total payment of US$11,862,470. The cash dividend is payable on or around June 10, 2010 to shareholders of record as of the close of business on May 20, 2010.
•		On April 1, 2010, CNinsure announced the acquisition of an additional 41% equity interest in Shandong Fanhua Mintai Insurance Agency Co., Ltd. and Ningbo Baolian Insurance Agency Co., Ltd., bringing its total shareholdings in these two agencies from 10% to 51%. The transactions were close in the second quarter of 2010.
•		As of March 31, 2010, CNinsure’s distribution and service network consisted of 50 insurance agencies, three insurance brokerages and four claims adjusting firms with 554 sales and services outlets operating in 23 provinces, compared to 41 insurance agencies, five insurance brokerages and three claims adjusting firms with 348 sales and service outlets operating in 21 provinces as of March 31, 2009. CNinsure had 45,039 sales agents and 1,421 professional claims adjustors as of March 31, 2010, compared to 29,125 sales agents and 855 professional claims adjustors as of March 31, 2009.
•		Net revenues from commissions and fees derived from the property and casualty insurance, life insurance and claims adjusting businesses for the first quarter of 2010 each contributed 55.8%, 31.0% and 13.2% of the Company’s total net revenues, respectively, in the first quarter of 2010, compared to 74.2%, 15.8%, 10.0%, respectively, for the same period of 2009.

		IR-073

Business Outlook

CNinsure expects its net income attributable to the Company’s shareholders to grow by approximately 35% for the second quarter 2010 compared to the corresponding period of 2009. This forecast reflects CNinsure’s current and preliminary view, which is subject to change.

Conference Call

The Company will host a conference call to discuss the first quarter 2010 results at
Time:     9:00 pm Eastern Daylight Time on May 24, 2010

      or  9:00 am Beijing/Hong Kong Time on May 25, 2010

The dial-in numbers:
United States:		+1-877-538-6619
United Kingdom:		0808-234-6305
Canada:		+1-866-8691-825
Singapore:		800-852-3576
Taiwan:		0080-185-6004
Hong Kong & Other Areas:		+852-3005-2050
China (Mainland):		400-681-6949

Password: 618842#

A replay of the call will be available for 30 days as follows:

+852-3005-2020       (Hong Kong & other areas)
PIN number: 147257#

Additionally, a live and archived web cast of this call will be available at:
http://www.corpasia.net/us/CISG/irwebsite/index.php?mod=event

About CNinsure Inc.

CNinsure is a leading independent intermediary company operating in China. CNinsure’s distribution network reaches many of China’s 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.

		IR-073

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements, including those related to CNinsure’s expectation of future business and financial performance, 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 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 CNinsure’s 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 May 24, 2010, and CNinsure undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or to 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.

		IR-073

CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)

		As of December 31,				As of March 31,				As of March 31,
		2009				2010				2010
		RMB				RMB				US$
ASSETS:
Current assets:
Cash and cash equivalents			1,457,890				1,346,181				197,220
Restricted cash			1,957				11,294				1,655
Accounts receivable, net			181,360				177,215				25,963
Insurance premium receivables			230				75				11
Other receivables			52,108				45,148				6,613
Deferred tax assets			2,602				5,081				744
Amounts due from related parties			25,337				23,655				3,466
Other current assets			6,015				10,423				1,527
Total current assets			1,727,499				1,619,072				237,199
Non-current assets:
Property, plant, and equipment, net			108,318				105,848				15,507
Goodwill			535,911				631,096				92,458
Intangible assets, net			81,485				107,795				15,792
Deferred tax assets			3,801				3,279				480
Investment in affiliates			86,701				90,201				13,215
Other non-current assets			2,250				2,275				333
Total assets			2,545,965				2,559,566				374,984

		IR-073

CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets-(Continued)
(In thousands)

		As of December 31,				As of March 31,				As of March 31,
		2009				2010				2010
		RMB				RMB				US$
LIABILITIES AND EQUITY:
Current liabilities:
Accounts payable			72,716				70,538				10,334
Insurance premium payables			1,957				3,959				580
Other payables and accrued expenses			182,139				88,299				12,936
Accrued payroll			24,152				20,450				2,996
Income tax payable			37,410				38,561				5,650
Amounts due to related parties			19,274				488				71
Total current liabilities			337,648				222,295				32,567
Non-current liabilities:
Other tax liabilities			2,537				2,646				388
Deferred tax liabilities			19,075				25,958				3,803
Total liabilities			359,260				250,899				36,758
Ordinary shares			7,036				7,036				1,031
Additional paid-in capital			1,604,774				1,609,223				235,756
Statutory reserves			103,877				103,874				15,218
Retained earnings			348,663				416,011				60,947
Accumulated other comprehensive loss			(72,542	)			(72,526	)			(10,626	)
Total CNinsure Inc. shareholders’ equity			1,991,808				2,063,618				302,326
Noncontrolling interests			194,897				245,049				35,900
Total equity			2,186,705				2,308,667				338,226
Total liabilities and equity			2,545,965				2,559,566				374,984

		IR-073

CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except for shares and per share data)

		For The Three Months Ended
		March 31,
		2009				2010				2010
		RMB				RMB				US$
Net revenues:
Commissions and fees			215,654				281,927				41,303
Other service fees			217				29				4
Total net revenues			215,871				281,956				41,307
Operating costs and expenses:
Commissions and fees			(121,627	)			(140,953	)			(20,650	)
Selling expenses			(7,764	)			(14,478	)			(2,121	)
General and administrative expenses			(40,571	)			(53,857	)			(7,890	)
Total operating costs and expenses			(169,962	)			(209,288	)			(30,661	)
Income from operations			45,909				72,668				10,646
Other income, net:
Investment income			—				10,230				1,499
Interest income			9,775				6,289				921
Interest expense			(2	)			—				—
Others, net			854				100				15
Net income before income taxes and income of affiliates			56,536				89,287				13,081
Income tax expense			(15,493	)			(22,973	)			(3,366	)
Share of income (loss) of affiliates			(34	)			3,500				513
Net income			41,009				69,814				10,228

		IR-073

CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations-(Continued)
(In thousands, except for shares and per share data)

		For The Three Months Ended
		March 31,
		2009				2010				2010
		RMB				RMB				US$
Less: Net income (loss) attributable to the noncontrolling interests			(4,537	)			2,466				361
Net income attributable to the Company’s shareholders			45,546				67,348				9,867
Net income per share:
Basic			0.050				0.074				0.011
Diluted			0.050				0.071				0.010
Net income per ADS:
Basic			0.998				1.476				0.216
Diluted			0.997				1.429				0.209
Shares used in calculating net income per share:
Basic			912,497,726				912,497,726				912,497,726
Diluted			913,489,567				942,535,742				942,535,742

		IR-073

For more information, please contact:

Oasis Qiu
Investor Relations Manager
Tel: +86-20-6122-2777 x 850
Email: qiusr@cninsure.net

Source: CNinsure Inc.