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
Exhibit 99.1 Press Release
Exhibit 99.1
Exhibit 99.1
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IR-113 |
CNinsure to Establish First of Its Kind
Independent E-commerce Insurance Platform in China
GUANGZHOU, China, March 26, 2011(GLOBE NEWSWIRE) CNinsure Inc. (Nasdaq:CISG) (CNinsure or the
Company), a leading independent insurance intermediary company operating in China, today
announced that it expects to invest a total of RMB500 million from 2011 to 2013 to build up its
e-commerce insurance platform for the sales of commodity-type insurance products, such as auto
insurance, accident insurance, travel insurance and homeowner property insurance.
CNinsure anticipates to launch a price comparison website in the fourth quarter of 2011, which will
provide price quotes across multiple insurance carriers, product comparison and recommendation,
online transaction processing, and nationwide customer services. It will be the first independent
e-commerce insurance platform that offers those functions in China.
The estimated investment will be RMB100 million, RMB200 million and RMB200 million, respectively,
in 2011, 2012 and 2013. Approximately 80% of the investment will be spent on marketing and
advertising, and approximately 20% on the construction of the IT infrastructure and call center.
CNinsure expects that its e-commerce insurance business will become profitable in 2014.
Commenting on the strategic investment in the e-commerce insurance platform, CNinsures chairman
and chief executive officer, Mr. Yinan Hu, stated, The recent upsurge of B2B and B2T sales model
has transformed peoples consumption behavior pattern in China. According to a report released by
the China Internet Network Information Center, among the 457 million netizens in China in 2010, 161
million are online shoppers, representing a growth of 48.6% from the previous year. Online shopper
ratio has increased to 35.1% from 28.1% a year ago. Statistics from iResearch also show that online
sales volume has increased 89.4% to RMB498 billion in 2010. The era of e-commerce insurance will
soon arrive. In order to grasp the opportunity and maintain our competitive edge in insurance
distribution, it has become a pressing task for us to launch our own e-commerce insurance platform
and establish strong brand awareness at the earliest possible time through making investment in an
expedited manner.
He continued, The massive investment will inevitably impose an adverse impact on our financial
performance in the near-to-medium term. However, the launch of an e-commerce platform will once
again place us in an advantageous position in the insurance intermediary market, making us the only
and first insurance intermediary that has established multiple distribution channels encompassing
on-the-ground sales network as well as telemarketing and online sales operation. We believe that
this strategic investment will provide us with a great opportunity to benefit from the rise of
e-commerce in China and yield high returns in the long run.
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IR-113 |
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 insurance products online,
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.