Advisory Information for Investors
Thank you for visiting the Investor Relations site of Fanhua Inc. (formerly known as CNinsure Inc.) where we provide information to help investors track our performance.
The content of this site is provided for informational purposes only, and is not intended for trading or investment purposes. Some of the content is provided by third parties. Fanhua Inc. does not guarantee the accuracy or completeness of the data contained on this site. Fanhua Inc. will not be liable for any delays, inaccuracies, or errors in the content, or for any actions taken in reliance thereon. Fanhua Inc. does not assume any duty of disclosure beyond that imposed by law, and expressly disclaims any duty to update any information set forth herein.
Historical and current stock performance data are not necessarily indicative of future performance. Materials posed on this site contain forward-looking statements. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, those outlined in our filings with the SEC, including our registration statement on Form 20-F, all of which are listed on the page under "SEC Filings". We do not undertake any obligation to update this forward-looking information, except as required under applicable law.
By clicking on "Accept," the viewer acknowledges that he or she has read and understands this disclaimer.
GUANGZHOU, China, May 22, 2017 (GLOBE NEWSWIRE) -- Fanhua Inc., (Nasdaq:FANH), (the "Company" or "Fanhua"), a leading independent online-to-offline ("O2O") financial services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 20171.
|(In thousands, except per ADS)||
|Total net revenues||907,864||1,467,380||213,183||61.6|
|Operating (loss) income||(19,998)||63,202||9,182||N/A|
Net income attributable to
the Company’s shareholders
|Diluted net income per ADS||0.32||1.15||0.17||257.1|
Financial Highlights for the First Quarter of 2017:
Commenting on the first quarter 2017 financial results, Mr. Chunlin Wang, Chief Executive Officer of Fanhua, stated, "We had a good start in the first quarter of 2017. Total revenues grew by 61.6% compared to the first quarter of 2016 and operating income increased to RMB63.2 million, significantly higher than our prior guidance. The strong performance was primarily driven by a record high growth of 283.5% year-over-year in life insurance business. Revenues from the life insurance business represented 41.8% of our total revenues in the first quarter of 2017, as compared to 17.6% in the same period last year. We expect revenues from the life insurance business to represent a higher percentage of our total revenues and this business to be major driver of sustainable and substantial growth in our revenues and profits in the next several years."
Financial Results for the First quarter of 2017
Total net revenues were RMB1.5 billion (US$213.2 million) for the first quarter of 2017, representing an increase of 61.6% from RMB907.9 million for the corresponding period in 2016.
Total operating costs and expenses were RMB1.4 billion (US$204.0 million) for the first quarter of 2017, representing an increase of 51.3% from RMB927.9 million for the corresponding period in 2016.
As a result of the preceding factors, we had an operating income of RMB63.2 million (US$9.2 million) for the first quarter of 2017, as compared to an operating loss of RMB20.0 million for the corresponding period in 2016.
Operating margin was 4.3% for the first quarter of 2017, compared to -2.2% for the corresponding period in 2016. The increase was primarily due to the increase in sales of regular term life insurance policies which have higher profit margin.
Investment income was RMB10.3 million (US$1.5 million) for the first quarter of 2017, representing a decrease of 37.5% from RMB16.5 million for the corresponding period in 2016. The investment income represented yields from short-term investments in financial products which mainly consist of inter-bank deposits or collective trust products with terms ranging from half a year to two years and interest payable on a quarterly, semi-annual or annual basis. Our investment income fluctuates from quarter to quarter because investment income is recognized when received.
Interest income was RMB0.6 million (US$0.1 million) for the first quarter of 2017, representing a decrease of 87.5% from RMB4.5 million for the corresponding period in 2016. The decrease in interest income was primarily due to decreases in term deposits as a result of increases in short-term investments.
Income tax expense was RMB28.5 million (US$4.1 million) for the first quarter of 2017, representing an increase of 71.4 times from RMB0.4 million for the corresponding period in 2016. The increase was primarily due to an increase in operating income. The effective tax rate for the first quarter of 2017 was 37.7% compared with 6.3% for the corresponding period in 2016. The increase in effective tax rate was mainly because deferred tax assets allowance resulting from the operation loss incurred by certain of our subsidiaries, which is not expected to be utilized in the future, was fully recognized in the first quarter of 2017.
Share of income of affiliates was RMB17.7 million (US$2.6 million) for the first quarter of 2017, representing an increase of 75.1% from RMB10.1 million for the corresponding period in 2016, mainly attributable to an increase of 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 RMB69.7 million (US$10.1 million) for the first quarter of 2017, representing an increase of 260.2% from RMB19.4 million for the corresponding period in 2016.
Net margin was 4.8% for the first quarter of 2017 compared with 2.1% for the corresponding period in 2016.
Basic and diluted net income per ADS were RMB1.20 (US$0.17) and RMB1.15 (US$0.17) for the first quarter of 2017, respectively, representing increases of 257.0% and 257.1% from RMB0.34 and RMB0.32 for the corresponding period in 2016.
As of March 31, 2017, the Company had RMB3.0 billion (US$437.2 million) in cash, cash equivalents and short term investments.
Key Operational Metrics for Fanhua's Online Initiatives for the First Quarter of 2017:
Fanhua expects its operating income to be no less than RMB70 million for the second quarter of 2017. This forecast reflects Fanhua’s current view, which is subject to change.
The Company will host a conference call to discuss its first quarter 2017 financial results as per the following details.
Time: 9:00 PM Eastern Daylight Time on May 22, 2017
or 9:00 AM Beijing/Hong Kong Time on May 23, 2017
|The toll free dial-in numbers:|
|The toll dial-in numbers:|
|Singapore & Other Areas||+65-6713-5440|
Conference ID #: 16213567
Additionally, a live and archived web cast of this call will be available at:
About Fanhua Inc.
Fanhua 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.
As of March 31, 2017, our distribution and service network consisted of 31 insurance agencies, two insurance brokerages and three claims adjusting firms, with 959 sales and service outlets covering 29 provinces.
For more information about Fanhua Inc., please visit http://ir.fanhuaholdings.com/.
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 Fanhua 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 Fanhua 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 Fanhua 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 Fanhua is included in Fanhua's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.
|Unaudited Condensed Consolidated Balance Sheets|
|As of December 31,||As of March 31,||As of March 31,|
|Cash and cash equivalents||240,242||362,213||52,623|
|Short term investments||2,797,842||2,647,387||384,616|
|Accounts receivable, net||502,975||668,798||97,164|
|Insurance premium receivables||187||341||49|
|Amounts due from related parties||32,495||62,529||9,084|
|Other current assets||37,900||36,574||5,314|
|Total current assets||3,694,564||3,928,190||570,692|
|Property, plant, and equipment, net||31,414||30,393||4,416|
|Goodwill and intangible assets, net||181,549||172,986||25,132|
|Deferred tax assets||8,277||9,893||1,437|
|Investment in affiliates||294,576||310,788||45,152|
|Other non-current assets||28,188||28,188||4,095|
|Total non-current assets||544,004||552,248||80,232|
|Insurance premium payables||5,491||6,224||904|
|Other payables and accrued expenses||314,051||251,273||36,505|
|Income tax payable||90,188||109,191||15,864|
|Total current liabilities||747,119||921,288||133,846|
|Other tax liabilities||72,778||72,612||10,549|
|Deferred tax liabilities||14,577||14,404||2,093|
|Total non-current liabilities||87,355||87,016||12,642|
|Additional paid-in capital||2,301,655||2,306,209||335,049|
|Accumulated other comprehensive loss||(65,844)||(69,678)||(10,123)|
|Total The Company's shareholders’ equity||3,286,852||3,359,820||488,119|
|Total liabilities and equity||4,238,568||4,480,438||650,924|
|Unaudited Condensed Consolidated Statements of Income and Comprehensive Income|
|(In thousands, except for shares and per share data)|
|For The Three Months Ended|
|Total net revenues||907,864||1,467,380||213,183|
|Operating costs and expenses:|
|Total operating costs||(708,775)||(1,217,582)||(176,892)|
|General and administrative expenses||(109,955)||(134,188)||(19,495)|
|Total operating costs and expenses||(927,862)||(1,404,178)||(204,001)|
|(Loss) income from operations||(19,998)||63,202||9,182|
|Other income, net:|
|Income before income taxes and income of affiliates||6,221||75,668||10,993|
|Income tax expense||(394)||(28,525)||(4,144)|
|Share of income of affiliates||10,090||17,669||2,567|
|less: net loss attributable to noncontrolling interests||(3,443)||(4,928)||(716)|
|Net income attributable to the Company’s shareholders||19,360||69,740||10,132|
|Net income per share:|
|Net income per ADS:|
|Shares used in calculating net income per share:|
|Other comprehensive loss, net of tax: Foreign currency translation adjustments||(1,298)||(159)||(23)|
|Fair value changes||—||264||38|
|Share of other comprehensive loss of affiliates||(19,643)||(1,457)||(212)|
|Comprehensive (loss) income||(5,024)||63,460||9,219|
|Less: Comprehensive loss attributable to the noncontrolling interests||(3,443)||(4,928)||(716)|
|Comprehensive income attributable to the Company’s shareholders||(1,581)||68,388||9,935|
|Unaudited Condensed Consolidated Statements of Cash Flow|
|For The Three Months Ended|
|Adjustments to reconcile net income to net cash generated from operating activities:|
|Amortization of intangible assets||1,317||8,563||1,244|
|Allowance for doubtful receivables||(690)||7,669||1,114|
|Compensation expenses associated with stock option||2,895||—||—|
|Gain on disposal of subsidiaries||(3,030)||(1,302)||(189)|
|Loss (gain) on disposal of property, plant and equipment||2||(34)||(5)|
|Share of income of affiliates||(10,090)||(17,669)||(2,567)|
|Changes in operating assets and liabilities||22,140||(50,383)||(7,319)|
|Net cash generated from operating activities||22,707||9,095||1,322|
|Cash flows (used in) generated from investing activities:|
|Purchase of property, plant and equipment||(1,633)||(2,872)||(417)|
|Proceeds from disposal of property and equipment||24||38||5|
|Purchase of short term investments||(2,205,000)||(1,119,194)||(162,598)|
|Proceeds from disposal of short term investments||1,667,599||1,276,264||185,417|
|Disposal of subsidiaries, net of cash disposed||6,436||(6,517)||(947)|
|Increase in amounts due from related parties||—||(30,000)||(4,358)|
|Net cash (used in) generated from investing activities||(532,574)||117,719||17,102|
|Cash flows (used in) generated fromfinancing activities:|
|Acquisition of additional interest in subsidiaries||(1,200)||—||—|
|Proceeds on exercise of stock options||1||3,836||557|
|Net cash (used in) generated from financing activities||(1,199)||3,836||557|
|Net (decrease) increase in cash, cash equivalents and restricted cash||(511,066)||130,650||18,981|
|Cash, cash equivalents and restricted cash at beginning of period||1,132,851||273,979||39,804|
|Effect of exchange rate changes on cash and cash equivalents||(61)||(194)||(28)|
|Cash, cash equivalents and restricted cash at end of period||621,724||404,435||58,757|
|Income taxes paid||2,607||7,129||1,036|
In November 2016, the FASB issued ASU No. 2016-18 ("ASU 2016-18"), Statement of Cash Flows (Topic 230) - Restricted Cash. This ASU requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The provisions of ASU 2016-18 are effective for reporting periods beginning after December 15, 2017 and are to be applied retrospectively; early adoption is permitted. We elected to early adopt ASU 2016-18 in the first quarter of 2017. In connection with the adoption of this update, we have reclassified RMB1.1 million of restricted cash from investing activities to the cash, cash equivalents, and restricted cash balance in the three-month period ended March 31, 2016 to be consistent with the 2017 presentation.
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 RMB 6.8832 to US$ 1.00, the effective noon buying rate as of March 31, 2017 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.
2 Active users are defined as users who made at least one purchase through CNpad App during the specified period.
3 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:
Investor Relations Manager
Tel: +86 (20) 8388-3191
Source: Fanhua Inc.