Delicious
Digg
Facebook
LinkedIn
Twitter
CORRECTION -- Fanhua Reports Second Quarter and First Half 2022 Unaudited Financial Results
Fanhua Reports Second Quarter and First Half 2022 Unaudited Financial Results
-- Life Insurance’s First Year Premiums for the Second Quarter of 2022 Grew 43.7% YoY --
-- Operating Income for the Second Quarter of 2022 Beats Guidance --
Financial Highlights for the Second Quarter of 2022
| (In thousands, except per ADS data) | 2021Q2 (RMB) |
2022Q2 (RMB) |
2022Q2 (US$) |
Change % | |
| Total net revenues | 689,919 | 703,116 | 104,972 | 1.9 | |
| Operating income | 51,005 | 31,028 | 4,632 | (39.2 | ) |
| Net income attributable to the Company’s shareholders | 67,405 | 32,123 | 4,796 | (52.3 | ) |
| Diluted net income per ADS | 1.25 | 0.60 | 0.09 | (52.0 | ) |
| Cash, cash equivalents and short-term investments (as of |
1,447,685 | 1,090,044 | 162,739 | (24.7 | ) |
Financial Highlights for the First Half of 2022
| (In thousands, except per ADS data) | First Half 2021 (RMB) |
First Half 2022 (RMB) |
First Half 2022 (US$) |
Change % | |||
| Total net revenues | 1,784,948 | 1,389,503 | 207,447 | (22.2 | ) | ||
| Operating income | 191,406 | 51,617 | 7,705 | (73.0 | ) | ||
| Impairment on investment in an affiliate | — | (78,277 | ) | (11,686 | ) | N/A | |
| Net income (loss) attributable to the Company’s shareholders | 205,790 | (5,715 | ) | (853 | ) | (102.8 | ) |
| Non-GAAP net income attributable to the Company’s shareholders | 205,790 | 72,562 | 10,833 | (64.7 | ) | ||
| Diluted net income (loss) per ADS | 3.83 | (0.11 | ) | (0.02 | ) | (102.9 | ) |
| Non-GAAP diluted net income per ADS | 3.83 | 1.35 | 0.20 | (64.8 | ) | ||
Mr.
“Our insurance business grew by 12.2% year-over-year to
“We delivered
“After over a year of implementation and continued refinement, our strategy is becoming clearer and more pragmatic, and has resulted in significant improvement of our brand image in our industry, further boosting the confidence of our staff and sales force.”
“For the second half of 2022,
“In the third quarter of 2022, although extrinsic factors such as the COVID-19 pandemic and the regulatory requirement for double-recording may continue to exert an impact on our business,
Financial Results for the Second Quarter of 2022
Total net revenues were
- Net revenues for agency business were
RMB603.4 million (US$90.1 million ) for the second quarter of 2022, representing an increase of 4.5% fromRMB577.5 million for the corresponding period in 2021. In the second quarter of 2022, total GWP increased by 12.2% year-over-year toRMB2.9 billion , of which FYP grew by 35.0% year-over-year toRMB688.3 million while renewal premiums increased by 6.5% year-over-year toRMB2,162.4 million .- Net revenues for the life insurance business were
RMB570.7 million (US$85.2 million ) for the second quarter of 2022, representing an increase of 5.1% fromRMB542.8 million for the corresponding period in 2021. The increase was mainly due to the growth of first year premiums of the life insurance business, driven by an increase in the headcount of high-performing agents and the growth of their per capita productivity. In the second quarter of 2022, total life insurance GWP increased by 12.9% year-over-year toRMB2,778.1 million , of which first year premiums increased by 43.7% year-over-year toRMB615.7 million and renewal premiums increased by 6.5% year-over-year toRMB2,162.4 million .
Net revenues generated from our life insurance business accounted for 81.2% of our total net revenues in the second quarter of 2022. - Net revenues for the P&C insurance business were
RMB32.7 million (US$4.9 million ) for the second quarter of 2022, representing a decrease of 5.2% fromRMB34.6 million for the corresponding period in 2021. Net revenues for the P&C insurance business are mainly derived from commissions for medical insurance, accident insurance, travel insurance and homeowner insurance products facilitated on Baowang (www.baoxian.com). Net revenues generated from the P&C insurance business accounted for 4.6% of our total net revenues in the second quarter of 2022.
- Net revenues for the life insurance business were
- Net revenues for the claims adjusting business were
RMB99.7 million (US$14.9 million ) for the second quarter of 2022, representing a decrease of 11.4% fromRMB112.5 million for the corresponding period in 2021. The decrease was due to the disruption to business as a result of the lockdowns inShanghai and other areas in response to the COVID-19 outbreaks in those regions. Net revenues generated from the claims adjusting business accounted for 14.2% of our total net revenues in the second quarter of 2022.
Total operating costs and expenses were
- Commission costs were
RMB457.1 million (US$68.2 million ) for the second quarter of 2022, representing an increase of 5.9% fromRMB431.7 million for the corresponding period in 2021.
- Commission costs for agency business were
RMB391.3 million (US$58.4 million ) for the second quarter of 2022, representing an increase of 7.6% fromRMB363.6 million for the corresponding period in 2021.- Costs of the life insurance business were
RMB368.0 million (US$55.0 million ) for the second quarter of 2022, representing an increase of 9.1% fromRMB337.2 million for the corresponding period in 2021. The increase was in line with the increase in net revenues generated from our life insurance business. Costs incurred by the life insurance business accounted for 80.5% of our total commission costs in the second quarter of 2022. - Costs of the P&C insurance business were
RMB23.3 million (US$3.5 million ) for the second quarter of 2022, representing a decrease of 11.7% fromRMB26.4 million for the corresponding period in 2021. The costs of the P&C insurance business mainly represent commission costs we incurred for operating Baowang (www.baoxian.com). The decrease in the costs of P&C insurance business was in line with the decrease in net revenues of P&C insurance business. Costs incurred by the P&C insurance business accounted for 5.1% of our total commission costs in the second quarter of 2022.
- Costs of the life insurance business were
- Costs of claims adjusting business were
RMB65.8 million (US$9.8 million ) for the second quarter of 2022, representing a decrease of 3.4% fromRMB68.1 million for the corresponding period in 2021. Costs incurred by the claims adjusting business accounted for 14.4% of our total commission costs in the second quarter of 2022.
- Commission costs for agency business were
- Selling expenses were
RMB66.8 million (US$10.0 million ) for the second quarter of 2022, representing a decrease of 15.8% fromRMB79.3 million for the corresponding period in 2021. The decrease was due to decreased sales events and decreased rental costs of our sales outlets, partially offset by increased headcount in our Yuntong branches. - General and administrative expenses were
RMB148.2 million (US$22.1 million ) for the second quarter of 2022, representing an increase of 15.9% fromRMB127.9 million for the corresponding period in 2021. The increase was mainly due to increased expenditures for execution of the Professionalization, Digitalization and Open Platform strategy.
As a result of the foregoing factors, we recorded an operating income of
Operating margin was 4.4% for the second quarter of 2022, compared to 7.4% for the corresponding period in 2021.
Investment income was
Income tax expense was
Share of income of affiliates, net of impairment was
Net income was
Net income attributable to the Company’s shareholders was
Net margin was 4.6% for the second quarter of 2022 as compared to 9.8% for the corresponding period in 2021.
Basic and diluted net income per ADS were
As of
Financial Results for the First Half of 2022
Total net revenues were
- Net revenues for agency business were
RMB1,191.4 million (US$177.9 million ) for the first half of 2022, representing a decrease of 24.5% fromRMB1,577.5 million for the corresponding period in 2021. In the first half of 2022, total GWP increased by 10.9% year-over-year toRMB6.3 billion , of which FYP decreased by 10.8% year-over-year toRMB1,251.1 million while renewal premiums increased by 18.1% year-over-year toRMB5,045.6 million .- Net revenues for the life insurance business were
RMB1,129.2 million (US$168.6 million ) for the first half of 2022, representing a decrease of 25.3% fromRMB1,512.0 million for the corresponding period in 2021. The decrease was mainly due to i) disruption to offline sales activities of our sales agents in the first quarter of 2022 as a result of the COVID-19 outbreaks in multiple regions ofChina , (ii) subdued customer demands for insurance due to concerns on resurgences of the pandemic and increased economic uncertainty and iii) high base in the first quarter of 2021 as a result of the strong sales of critical illness products prior to the transition to the new critical illness definition framework. In the first half of 2022, total life insurance GWP increased by 11.4% year-over-year toRMB6,153.9 million , of which FYP decreased by 11.4% year-over-year toRMB1,108.3 million and renewal premiums increased by 18.1% year-over-year toRMB5,045.6 million . - Net revenues generated from our life insurance business accounted for 81.3% of our total net revenues in the first half of 2022.
- Net revenues for the P&C insurance business were
RMB62.2 million (US$9.3 million ) for the first half of 2022, representing a decrease of 5.0% fromRMB65.5 million for the corresponding period in 2021. Net revenues for the P&C insurance business are mainly derived from commissions for medical insurance, accident insurance, travel insurance and homeowner insurance products facilitated on Baowang (www.baoxian.com). Net revenues generated from the P&C insurance business accounted for 4.5% of our total net revenues in the first half of 2022.
- Net revenues for the life insurance business were
- Net revenues for the claims adjusting business were
RMB198.1 million (US$29.6 million ) for the first half of 2022, representing a decrease of 4.5% fromRMB207.4 million for the corresponding period in 2021. The decrease was mainly caused by the disruption to our business inShenzhen ,Shanghai and other areas due to the COVID-19 outbreaks in those regions. Net revenues generated from the claims adjusting business accounted for 14.2% of our total net revenues in the first half of 2022.
Total operating costs and expenses were
- Commission costs were
RMB907.8 million (US$135.5 million ) for the first half of 2022, representing a decrease of 22.4% fromRMB1,169.4 million for the corresponding period in 2021.- Commission cost for agency business were
RMB774.7 million (US$115.7 million ) for the first half of 2022, representing a decrease of 25.3% fromRMB1,037.6 million for the corresponding period in 2021.- Costs of the life insurance business were
RMB731.5 million (US$109.2 million ) for the first half of 2022, representing a decrease of 26.1% fromRMB989.9 million for the corresponding period in 2021. The decrease was in line with the decline in net revenues generated from our life insurance business. Costs incurred by the life insurance business accounted for 80.6% of our total commission costs in the first half of 2022. - Costs of the P&C insurance business were
RMB43.2 million (US$6.4 million ) for the first half of 2022, representing a decrease of 9.4% fromRMB47.7 million for the corresponding period in 2021. The costs of the P&C insurance business mainly represent commission costs we incurred for operating Baowang (www.baoxian.com). The decrease in the costs of P&C insurance business was in line with the decrease in net revenues of P&C insurance business. Costs incurred by the P&C insurance business accounted for 4.8% of our total commission costs in the first half of 2022.
- Costs of the life insurance business were
- Costs of claims adjusting business were
RMB133.1 million (US$19.9 million ) for the first half of 2022, representing an increase of 1.0% fromRMB131.8 million for the corresponding period in 2021. Costs incurred by the claims adjusting business accounted for 14.7% of our total commission costs in the first half of 2022.
- Commission cost for agency business were
- Selling expenses were
RMB141.6 million (US$21.1 million ) for the first half of 2022, representing a decrease of 10.2% fromRMB157.7 million for the corresponding period in 2021. The decrease was due to decreased sales events and decreased rental costs of our sales outlets, partially offset by increased headcount in our Yuntong branches. - General and administrative expenses were
RMB288.5 million (US$43.1 million ) for the first half of 2022, representing an increase of 8.3% fromRMB266.4 million for the corresponding period in 2021. The increase was mainly due to increased expenditures for execution of the Professionalization, Digitalization and Open Platform strategy.
As a result of the foregoing factors, we recorded an operating income of
Operating margin was 3.7% for the first half of 2022, compared to 10.7% for the corresponding period in 2021.
Investment income was
Income tax expense was
Share of income of affiliates, net of impairment was negative
Net loss was
Net loss attributable to the Company’s shareholders was
Non-GAAP net income attributable to the Company’s shareholders, (exclusive of impairment on investment in
Net margin was negative 0.4% for the first half of 2022 as compared to 11.5% for the corresponding period in 2021.
Non-GAAP net margin was 5.2% for the first half of 2022 as compared to 11.5% for the corresponding period in 2021.
Basic and diluted net loss per ADS were
Non-GAAP basic and diluted net income per ADS were
Other Key Operational Metrics:
- Lan Zhanggui - Our one-stop insurance service platform:
- The number of active users of Lan Zhanggui4 was 15,797 in the second quarter of 2022, as compared to 30,760 in the same period of 2021. The decrease was mainly due to our focus on serving higher-end customers and high-performing agents and purposely reducing the number of non-performing or low efficiency agents at the same time, and the decline in the number of users who sell auto insurance.
- Insurance premiums generated from Lan Zhanggui were
RMB524.6 million (US$78.3 million ) in the second quarter of 2022 as compared toRMB495.4 million in the corresponding period of 2021. The insurance premiums generated per active user wasRMB33,209 in the second quarter of 2022, as compared toRMB16,105 in the corresponding period of 2021.
- Baowang (www.baoxian.com) - Our Direct-to-Consumer (“DTC”) online insurance platform for
Accident & Short Term Health insurance(“A&H”), travel and homeowner insurance:- The number of active customer accounts5 was 56,647 in the second quarter of 2022, as compared to 96,978 in the corresponding period of 2021;
- Insurance premiums generated on Baoxian.com were
RMB88.2 million (US$13.2 million ) in the second quarter of 2022, representing a decrease of 0.5% fromRMB88.6 million in the corresponding period of 2021. The insurance premiums generated per active customer account wereRMB1,557 in the second quarter of 2022, as compared toRMB914 in the corresponding period of 2021.
- The number of performing agents6 was 32,464 in the second quarter of 2022, compared to 50,982 in the corresponding period of 2021. The number of performing agents for selling life insurance products was 10,653 in the second quarter of 2022, compared to 16,487 in the corresponding period of 2021. The decrease in the number of performing agents for selling life insurance products was primarily because we shifted focus to serving high-end customers and high-performing agents while purposely reducing the number of non-performing or low efficiency agents. As of
June 30, 2022 , Fanhua’s distribution network consisted of 712 sales outlets in 23 provinces and 104 services outlets in 31 provinces, compared with 771 sales outlets in 23 provinces and 112 service outlets in 31 provinces as ofJune 30, 2021 .
Recent Developments
- As of
June 30, 2022 , eHuzhu, our online mutual aid platform, which serves to provide alternative risk protection programs to lower-income group at more affordable costs, gathered over 2.0 million paying members and assisted 9,538 families in raising overRMB1.1 billion funds to cover their medical costs and help them get through tough times. - In
July 2022 ,Fanhua ranked 20th among the “Top 20 Global Insurance Brokers” in 2021, according to Best’s Review, a monthly magazine published by A. M. Best, one of the most prestigious insurance rating agencies in the world.Fanhua first made the list in 2009 and has been the only Asian insurance broker on the list. The ranking was based on total revenues in 2021. Fanhua has recently launched training and certification programs of Family Office Consultant (“FOC”), Family Retirement Planner (“FRP”) and Family Policy Custodian (“FPC”) to help its sales team to improve professional skills. The FOC training provides agents with courses on laws, tax, family trust, insurance trust and more aspects centering “insurance + trust”, aiming at training them into professionals in wealth protection and legacy management. We organized 18 FOC training programs and granted FOC certifications to 1,676 qualified agents in the first half of 2022. The FRC training aims to train professionals on the capability of providing customers with services of retirement planning, savings and wealth management and legacy management based on value-added whole life insurance products. We have organized 133 FRP training programs in total providing complete training for 9,308 agents.- On
July 29, 2022 , in the Jinnuo Awards organized byChina Banking and Insurance News , one of the most authoritative publication in the banking and insurance industries,Fanhua won the award of “Marketing Example of Financial Products”, andFanhua eHuzhu’s “Marketing Program of Top 10 Cancer Fighting Cases” was selected as one of the “Outstanding Social Responsibility Projects in the Finance Industry of the Year”.Fanhua has won Jinnuo awards for four years in a row.
Business Outlook
Conference Call
The Company will host a conference call to discuss its second quarter and first half 2022 financial results as per the following details.
Time:
or
Please pre-register online in advance to join the conference call by navigating to the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call details will be provided upon registration.
Conference Call Preregistration: https://register.vevent.com/register/BI1468182f82a945f6967767ffca560b32
Additionally, a live and archived webcast of the conference call will be available at Fanhua’s investor relations website: https://edge.media-server.com/mmc/p/r9af7t6q
About
Our online platforms include: (i) Lan Zhanggui, an all-in-one platform which allows our agents to access and purchase a wide variety of insurance products, including life insurance, auto insurance, accident insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (ii) Baowang (www.baoxian.com), an online entry portal for comparing and purchasing short term health, accident, travel and homeowner insurance products and (iii) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.
As of
For more information about
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
About Non-GAAP Financial Measures
In addition to the Company’s consolidated financial results under generally accepted accounting principles in
The Company’s non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations. Specifically, the Company’s non-GAAP measures exclude impairment on investment in an affiliate. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies, including peer companies. The presentation of these non-GAAP financial measures has limitations as analytical tools, and investors should not consider them in isolation from, or as a substitute for analysis of, the financial information prepared and presented in accordance with GAAP. We encourage investors and other interested persons to review our financial information in its entirety and not rely on a single financial measure.
For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” set forth at the end of this press release.
Unaudited Condensed Consolidated Balance Sheets (In thousands) |
||||||||
| As of |
As of |
As of |
||||||
| 2021 | 2022 | 2022 | ||||||
| RMB | RMB | US$ | ||||||
| ASSETS: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 564,624 | 509,815 | 76,113 | |||||
| Restricted cash | 76,303 | 66,984 | 10,000 | |||||
| Short term investments | 870,682 | 580,229 | 86,626 | |||||
| Accounts receivable, net | 653,757 | 592,768 | 88,499 | |||||
| Other receivables | 60,755 | 169,571 | 25,316 | |||||
| Other current assets | 39,947 | 133,170 | 19,882 | |||||
| Total current assets | 2,266,068 | 2,052,537 | 306,436 | |||||
| Non-current assets: | ||||||||
| Restricted bank deposit - non current | 15,595 | 15,626 | 2,333 | |||||
| Contract assets, net - non-current | 192,114 | 282,274 | 42,142 | |||||
| Property, plant, and equipment, net | 46,800 | 103,611 | 15,469 | |||||
| 109,869 | 109,869 | 16,403 | ||||||
| Deferred tax assets | 18,728 | 25,614 | 3,824 | |||||
| Investment in affiliates | 335,808 | 5,498 | 821 | |||||
| Other non-current assets | 31,459 | 31,310 | 4,674 | |||||
| Right of use assets | 225,677 | 185,515 | 27,697 | |||||
| Total non-current assets | 976,050 | 759,317 | 113,363 | |||||
| Total assets | 3,242,118 | 2,811,854 | 419,799 | |||||
| Current liabilities: | ||||||||
| Accounts payable | 377,558 | 314,825 | 47,002 | |||||
| Insurance premium payables | 24,054 | 19,044 | 2,843 | |||||
| Other payables and accrued expenses | 178,157 | 171,920 | 25,667 | |||||
| Accrued payroll | 111,672 | 85,810 | 12,811 | |||||
| Income tax payable | 130,222 | 125,304 | 18,707 | |||||
| Current operating lease liability | 87,012 | 82,149 | 12,265 | |||||
| Total current liabilities | 908,675 | 799,052 | 119,295 | |||||
| Non-current liabilities: | ||||||||
| Accounts payable – non-current | 97,869 | 143,800 | 21,469 | |||||
| Other tax liabilities | 73,213 | 54,930 | 8,201 | |||||
| Deferred tax liabilities | 73,716 | 86,728 | 12,948 | |||||
| Non-current operating lease liability | 128,283 | 92,823 | 13,858 | |||||
| Total non-current liabilities | 373,081 | 378,281 | 56,476 | |||||
| Total liabilities | 1,281,756 | 1,177,333 | 175,771 | |||||
| Ordinary shares | 8,089 | 8,091 | 1,208 | |||||
| Statutory reserves | 557,221 | 557,221 | 83,191 | |||||
| Retained earnings | 1,311,715 | 988,270 | 147,545 | |||||
| Accumulated other comprehensive loss | (39,140 | ) | (34,266 | ) | (5,116 | ) | ||
| Total shareholders’ equity | 1,837,885 | 1,519,316 | 226,828 | |||||
| Non-controlling interests | 122,477 | 115,205 | 17,200 | |||||
| Total equity | 1,960,362 | 1,634,521 | 244,028 | |||||
| Total liabilities and equity | 3,242,118 | 2,811,854 | 419,799 | |||||
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 Six Months Ended | ||||||||||||||||
| 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||||||||
| RMB | RMB | USD | RMB | RMB | US$ | ||||||||||||
| Net revenues: | |||||||||||||||||
| Agency | 577,453 | 603,406 | 90,086 | 1,577,557 | 1,191,394 | 177,870 | |||||||||||
| Life insurance business | 542,789 | 570,654 | 85,196 | 1,512,023 | 1,129,228 | 168,589 | |||||||||||
| P&C insurance business | 34,664 | 32,752 | 4,890 | 65,534 | 62,166 | 9,281 | |||||||||||
| Claims adjusting | 112,466 | 99,710 | 14,886 | 207,391 | 198,109 | 29,577 | |||||||||||
| Total net revenues | 689,919 | 703,116 | 104,972 | 1,784,948 | 1,389,503 | 207,447 | |||||||||||
| Operating costs and expenses: | |||||||||||||||||
| Agency | (363,620 | ) | (391,258 | ) | (58,413 | ) | (1,037,638 | ) | (774,701 | ) | (115,660 | ) | |||||
| Life insurance Business | (337,260 | ) | (367,976 | ) | (54,937 | ) | (989,942 | ) | (731,503 | ) | (109,211 | ) | |||||
| P&C insurance Business | (26,360 | ) | (23,282 | ) | (3,476 | ) | (47,696 | ) | (43,198 | ) | (6,449 | ) | |||||
| Claims adjusting | (68,117 | ) | (65,827 | ) | (9,828 | ) | (131,756 | ) | (133,076 | ) | (19,868 | ) | |||||
| Total operating costs | (431,737 | ) | (457,085 | ) | (68,241 | ) | (1,169,394 | ) | (907,777 | ) | (135,528 | ) | |||||
| Selling expenses | (79,322 | ) | (66,761 | ) | (9,967 | ) | (157,725 | ) | (141,629 | ) | (21,145 | ) | |||||
| General and administrative expenses | (127,855 | ) | (148,242 | ) | (22,132 | ) | (266,423 | ) | (288,480 | ) | (43,069 | ) | |||||
| Total operating costs and expenses | (638,914 | ) | (672,088 | ) | (100,340 | ) | (1,593,542 | ) | (1,337,886 | ) | (199,742 | ) | |||||
| Income from operations | 51,005 | 31,028 | 4,632 | 191,406 | 51,617 | 7,705 | |||||||||||
| Other income, net: | |||||||||||||||||
| Investment income | 6,308 | 2,220 | 331 | 16,541 | 6,274 | 937 | |||||||||||
| Interest income | 516 | 1,158 | 173 | 1,042 | 1,837 | 274 | |||||||||||
| Others, net | 16,518 | (565 | ) | (83 | ) | 17,995 | 9,408 | 1,405 | |||||||||
| Income from operations before income taxes and share of income of affiliates |
74,347 | 33,841 | 5,053 | 226,984 | 69,136 | 10,321 | |||||||||||
| Income tax expense | (15,890 | ) | (7,641 | ) | (1,141 | ) | (48,591 | ) | (13,989 | ) | (2,088 | ) | |||||
| Share income of affiliates, net of impairment | 10,965 | 2,500 | 373 | 26,327 | (68,134 | ) | (10,172 | ) | |||||||||
| Net income (loss) | 69,422 | 28,700 | 4,285 | 204,720 | (12,987 | ) | (1,939 | ) | |||||||||
| Less: net income (loss) attributable to non-controlling interests | 2,017 | (3,423 | ) | (511 | ) | (1,070 | ) | (7,272 | ) | (1,086 | ) | ||||||
| Net income (loss) attributable to the Company’s shareholders | 67,405 | 32,123 | 4,796 | 205,790 | (5,715 | ) | (853 | ) | |||||||||
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income-(Continued) (In thousands, except for shares and per share data) |
|||||||||||||||||
| For The Three Months Ended | For The Six Months Ended | ||||||||||||||||
| 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net income (loss) per share: | |||||||||||||||||
| Basic | 0.06 | 0.03 | 0.01 | 0.19 | (0.01 | ) | (0.01 | ) | |||||||||
| Diluted | 0.06 | 0.03 | 0.01 | 0.19 | (0.01 | ) | (0.01 | ) | |||||||||
| Net income (loss) per ADS: | |||||||||||||||||
| Basic | 1.26 | 0.60 | 0.09 | 3.83 | (0.11 | ) | (0.02 | ) | |||||||||
| Diluted | 1.25 | 0.60 | 0.09 | 3.83 | (0.11 | ) | (0.02 | ) | |||||||||
| Shares used in calculating net income per share: | |||||||||||||||||
| Basic | 1,073,891,784 | 1,074,291,784 | 1,074,291,784 | 1,073,891,784 | 1,074,143,718 | 1,074,143,718 | |||||||||||
| Diluted | 1,074,291,210 | 1,074,291,784 | 1,074,291,784 | 1,074,291,224 | 1,074,143,718 | 1,074,143,718 | |||||||||||
Net income (loss) |
69,422 | 28,700 | 4,285 | 204,720 | (12,987 | ) | (1,939 | ) | |||||||||
| Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments | (1,311 | ) | 706 | 105 | (7,689 | ) | 796 | 119 | |||||||||
| Share of other comprehensive (loss) income of affiliates | (1,038 | ) | 5,101 | 762 | (496 | ) | 4,688 | 700 | |||||||||
| Unrealized net gains (loss) on available-for-sale investments | 4,286 | 4,502 | 672 | (2,694 | ) | (610 | ) | (91 | ) | ||||||||
| Comprehensive income (loss) | 71,359 | 39,009 | 5,824 | 193,841 | (8,113 | ) | (1,211 | ) | |||||||||
| Less: Comprehensive income (loss) attributable to the non-controlling interests | 2,017 | (3,423 | ) | (511 | ) | (1,070 | ) | (7,272 | ) | (1,086 | ) | ||||||
| Comprehensive income (loss) attributable to the Company’s shareholders | 69,342 | 42,432 | 6,335 | 194,911 | (841 | ) | (125 | ) | |||||||||
Unaudited Condensed Consolidated Statements of Cash Flow (In thousands, except for shares and per share data) |
|||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
| 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||
| Net income (loss) | 69,422 | 28,700 | 4,285 | 204,720 | (12,987 | ) | (1,939 | ) | |||||||||
| Adjustments to reconcile net income to net cash generated from operating activities: | |||||||||||||||||
| Investment income | (1,335 | ) | (149 | ) | (22 | ) | (1,427 | ) | (1,798 | ) | (268 | ) | |||||
| Share of income of affiliates, net of impairment | (10,965 | ) | (2,500 | ) | (373 | ) | (26,327 | ) | 68,134 | 10,172 | |||||||
| Other non-cash adjustments | (5,878 | ) | 44,394 | 6,629 | 32,036 | 80,049 | 11,952 | ||||||||||
| Changes in operating assets and liabilities | (91,318 | ) | (20,324 | ) | (3,035 | ) | (168,625 | ) | (170,351 | ) | (25,432 | ) | |||||
| Net cash (used in) generated from operating activities | (40,074 | ) | 50,121 | 7,484 | 40,377 | (36,953 | ) | (5,515 | ) | ||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchase of short term investments | (2,977,210 | ) | (686,000 | ) | (102,417 | ) | (5,744,640 | ) | (1,541,000 | ) | (230,065 | ) | |||||
| Proceeds from disposal of short term investments | 2,736,181 | 765,884 | 114,343 | 5,956,254 | 1,834,331 | 273,858 | |||||||||||
| Prepayment for acquisition of short-term investments | - | (100,000 | ) | (14,930 | ) | - | (100,000 | ) | (14,930 | ) | |||||||
| Cash rendered for loan receivables from a third party | - | (100,000 | ) | (14,930 | ) | - | (100,000 | ) | (14,930 | ) | |||||||
| Others | (10,065 | ) | (6,392 | ) | (954 | ) | (7,191 | ) | (68,156 | ) | (10,176 | ) | |||||
| Net cash (used in) generated from investing activities | (251,094 | ) | (126,508 | ) | (18,888 | ) | 204,423 | 25,175 | 3,7576 | ||||||||
| Cash flows from financing activities： | |||||||||||||||||
| Dividends paid | (139,469 | ) | (52,069 | ) | (7,774 | ) | (139,469 | ) | (52,069 | ) | (7,774 | ) | |||||
| Dividend distributed to non-controlling interest | (7,580 | ) | - | - | (7,580 | ) | - | - | |||||||||
| Others | - | - | - | (10,200 | ) | - | - | ||||||||||
| Net cash used in financing activities | (147,049 | ) | (52,069 | ) | (7,774 | ) | (157,249 | ) | (52,069 | ) | (7,774 | ) | |||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (438,217 | ) | (128,456 | ) | (19,178 | ) | 87,551 | (63,847 | ) | (9,532 | ) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 869,338 | 721,388 | 107,700 | 350,098 | 656,522 | 98,016 | |||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,791 | ) | (507 | ) | (76 | ) | (8,319 | ) | (250 | ) | (38 | ) | |||||
| Cash, cash equivalents and restricted cash at end of period | 429,330 | 592,425 | 88,446 | 429,330 | 592,425 | 88,446 | |||||||||||
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures (In RMB in thousands, except shares and per share data) |
||||||||||||||||||||
| For The Six Months Ended |
||||||||||||||||||||
| 2021 | 2022 | |||||||||||||||||||
| GAAP | Impairment on investment in affiliates |
Non- GAAP |
GAAP | Impairment on investment in affiliates |
Non- GAAP |
Change% | ||||||||||||||
| Net revenues | 1,784,948 | __ | 1,784,948 | 1,389,503 | __ | 1,389,503 | (22.2 | ) | ||||||||||||
| Income from operations | 191,406 | __ | 191,406 | 51,617 | __ | 51,617 | (73.0 | ) | ||||||||||||
| Operating margin | 10.7 | % | __ | 10.7 | % | 3.7 | % | 3.7 | % | (65.4 | ) | |||||||||
| Share of income of affiliates, net of impairment | 26,327 | __ | 26,327 | (68,134 | ) | (78,277 | ) | 10,143 | (61.5 | ) | ||||||||||
| Netincome(loss) attributable to the Company’s shareholders | 205,790 | __ | 205,790 | (5,715 | ) | (78,277 | ) | 72,562 | (64.7 | ) | ||||||||||
| Net margin | 11.5 | % | __ | 11.5 | % | (0.4 | %) | __ | 5.2 | % | (54.8 | ) | ||||||||
| Net income (loss) per share: | ||||||||||||||||||||
| Basic | 0.19 | __ | 0.19 | (0.01 | ) | __ | 0.07 | (63.2 | ) | |||||||||||
| Diluted | 0.19 | __ | 0.19 | (0.01 | ) | __ | 0.07 | (63.2 | ) | |||||||||||
| Net income (loss) per ADS : | ||||||||||||||||||||
| Basic | 3.83 | __ | 3.83 | (0.11 | ) | __ | 1.35 | (64.8 | ) | |||||||||||
| Diluted | 3.83 | __ | 3.83 | (0.11 | ) | __ | 1.35 | (64.8 | ) | |||||||||||
| Shares used in calculating net income (loss) per share : | ||||||||||||||||||||
| Basic | 1,073,891,784 | __ | 1,073,891,784 | 1,074,143,718 | __ | 1,074,143,718 | __ | |||||||||||||
| Diluted | 1,074,291,224 | __ | 1,074,291,224 | 1,074,143,718 | __ | 1,074,143,718 | __ | |||||||||||||
For more information, please contact:
Investor Relations
Tel: +86 (20) 8388-3191
Email: qiusr@fanhuaholdings.com
Source:
_________________
1 This announcement contains currency conversions of certain Renminbi (“RMB”) amounts into
2 Yuntong, literally translated as Cloud Phoenixtree, was established in 2021 and is a high-end brand designated for our branches for elite and professional sales force in major cities.
3 The Million Dollar Round Table (“MDRT”) is a global, independent association of the world’s leading life insurance and financial services professionals. To qualify for MDRT membership in 2022, applicants must meet any of the following requirements, among others, (i) a minimum of
4 Active users of Lan Zhanggui in a given period refer to users who sold at least one insurance policy through Lan Zhanggui (through either its mobile application or WeChat public account) during such period.
5 Active customer accounts in a given period refer to customer accounts that made at least one purchase directly through www.baoxian.com, its mobile application, or WeChat public account during such period.
6 Performing agents in a given period refer to agents who sold at least one insurance policy during such period.
Source: Fanhua Inc.