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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.
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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.
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Financial Highlights for the Third Quarter of 2017:
(In thousands, except per ADS) | 2016Q3 (RMB) | 2017Q3 (RMB) | 2017Q3 (US$) | Change % |
Total net revenues | 1,192,242 | 1,077,278 | 161,916 | -9.6 |
Operating income | 7,524 | 83,200 | 12,505 | 1,005.8 |
Net income attributable to the Company's shareholders | 32,093 | 112,268 | 16,874 | 249.8 |
Diluted net income per ADS | 0.53 | 1.77 | 0.27 | 234.0 |
Quarterly Dividend:
On
Commenting on the third quarter
2017 financial results, Mr.
"Driven by the accelerated growth of life insurance business, we beat our prior guidance with
"In view of the impact of a new regulation on product design taking effect on
Financial Results for the Third Quarter of 2017
Total net revenues were
Total operating costs and expenses were
As a result of the preceding factors, we had an operating income of
Operating margin was 7.7% for the third quarter of 2017, compared to 0.6% for the corresponding period in 2016.
Investment income was
Interest income was
Income tax expense was
Share of income of affiliates was
Net income attributable to the Company's shareholders was
Net margin was 10.4% for the third quarter of 2017 compared with 2.7% for the corresponding period in 2016.
Basic and diluted net income per ADS were
As of
Key Operational Metrics for Fanhua's Online Initiatives for the Third Quarter of 2017:
Business Outlook
Fanhua expects its operating income to be no less than
Conference Call
The Company will host a conference call to discuss its third quarter 2017 financial results as per the following details.
Time: | |
or | |
The toll free dial-in numbers: | |
1-855-500-8701 | |
0800-015-9724 | |
0800-918-648 | |
0800-184-4876 | |
1-300-713-759 | |
1-855-757-1565 | |
0080-665-1951 | |
800-906-606 | |
The toll dial-in numbers: | |
400-120-0654 | |
+65-6713-5440 | |
Conference ID #: | 4795899 |
Additionally, a live and archived web cast of this call will be available at: http://ir.cninsure.net/events.cfm
About
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
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
FANHUA INC. | ||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
As of | As of | As of | ||||||
2016 | 2017 | 2017 | ||||||
RMB | RMB | US$ | ||||||
ASSETS: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 240,242 | 397,191 | 59,698 | |||||
Restricted cash | 33,737 | 92,704 | 13,934 | |||||
Short term investments | 2,797,842 | 2,264,100 | 340,297 | |||||
Accounts receivable, net | 502,975 | 767,955 | 115,425 | |||||
Insurance premium receivables | 187 | 1,951 | 293 | |||||
Other receivables | 49,186 | 587,467 | 88,297 | |||||
Amounts due from related parties | 32,495 | 280,472 | 42,155 | |||||
Other current assets | 37,900 | 53,406 | 8,027 | |||||
3,694,564 | 4,445,246 | 668,126 | ||||||
Total current assets | ||||||||
Non-current assets: | ||||||||
Property, plant, and equipment, net | 31,414 | 35,032 | 5,265 | |||||
181,549 | 156,116 | 23,464 | ||||||
Deferred tax assets | 8,277 | 32,511 | 4,886 | |||||
Investment in affiliates | 294,576 | 348,671 | 52,406 | |||||
Other non-current assets | 28,188 | 28,189 | 4,237 | |||||
Total non-current assets | 544,004 | 600,519 | 90,258 | |||||
Total assets | 4,238,568 | 5,045,765 | 758,384 | |||||
Current liabilities: | ||||||||
Accounts payable | 278,188 | 566,229 | 85,105 | |||||
Insurance premium payables | 5,491 | 10,558 | 1,587 | |||||
Other payables and accrued expenses | 314,051 | 223,247 | 33,554 | |||||
Accrued payroll | 59,201 | 83,577 | 12,562 | |||||
Income tax payable | 90,188 | 152,523 | 22,924 | |||||
Dividend payable | — | 14,754 | 2,218 | |||||
Total current liabilities | 747,119 | 1,050,888 | 157,950 | |||||
Non-current liabilities: | ||||||||
Other tax liabilities | 72,778 | 72,612 | 10,913 | |||||
Deferred tax liabilities | 14,577 | 22,048 | 3,313 | |||||
Total non-current liabilities | 87,355 | 94,660 | 14,226 | |||||
Total liabilities | 834,474 | 1,145,548 | 172,176 | |||||
Ordinary shares | 8,658 | 9,328 | 1,402 | |||||
Additional paid-in capital | 2,301,655 | 2,461,774 | 370,008 | |||||
Statutory reserves | 311,590 | 301,590 | 45,329 | |||||
Retained earnings | 1,018,928 | 1,351,283 | 203,100 | |||||
Accumulated other comprehensive loss | (65,844 | ) | (84,272 | ) | (12,666 | ) | ||
Subscription receivables | (288,135 | ) | (254,337 | ) | (38,227 | ) | ||
Total shareholders' equity | 3,286,852 | 3,785,366 | 568,946 | |||||
Non-controlling interests | 117,242 | 114,851 | 17,262 | |||||
Total equity | 3,404,094 | 3,900,217 | 586,208 | |||||
Total liabilities and equity | 4,238,568 | 5,045,765 | 758,384 | |||||
FANHUA INC. | ||||||||||||
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 Nine Months Ended | |||||||||||
2016 | 2017 | 2017 | 2016 | 2017 | 2017 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Net revenues: | ||||||||||||
Life insurance Business | 263,243 | 730,476 | 109,792 | 628,194 | 1,934,125 | 290,702 | ||||||
P&C insurance Business | 844,311 | 274,119 | 41,200 | 2,305,227 | 1,413,549 | 212,458 | ||||||
Claims adjusting Business | 84,688 | 72,683 | 10,924 | 232,739 | 209,956 | 31,557 | ||||||
Total net revenues | 1,192,242 | 1,077,278 | 161,916 | 3,166,160 | 3,557,630 | 534,717 | ||||||
Operating costs and expenses: | ||||||||||||
Life insurance Business | (181,900 | ) | (511,412 | ) | (76,866 | ) | (428,145 | ) | (1,321,804 | ) | (198,669 | ) |
P&C insurance Business | (681,740 | ) | (236,584 | ) | (35,559 | ) | (1,870,556 | ) | (1,294,368 | ) | (194,545 | ) |
Claims adjusting Business | (48,838 | ) | (43,547 | ) | (6,545 | ) | (142,537 | ) | (136,883 | ) | (20,574 | ) |
Total operating costs | (912,478 | ) | (791,543 | ) | (118,970 | ) | (2,441,238 | ) | (2,753,055 | ) | (413,788 | ) |
Selling expenses | (154,085 | ) | (54,270 | ) | (8,157 | ) | (403,612 | ) | (160,388 | ) | (24,107 | ) |
General and administrative expenses | (118,155 | ) | (148,265 | ) | (22,284 | ) | (341,966 | ) | (426,577 | ) | (64,115 | ) |
Total operating costs and expenses | (1,184,718 | ) | (994,078 | ) | (149,411 | ) | (3,186,816 | ) | (3,340,020 | ) | (502,010 | ) |
Income (loss) from operations | 7,524 | 83,200 | 12,505 | -20,656 | 217,610 | 32,707 | ||||||
Other income, net: | ||||||||||||
Investment income | 18,352 | 43,960 | 6,607 | 61,438 | 152,138 | 22,867 | ||||||
Interest income | 220 | 10,998 | 1,653 | 6,573 | 13,522 | 2,032 | ||||||
Others, net | 2377 | 1,817 | 273 | 11,859 | 12,618 | 1,896 | ||||||
Income before income taxes and income of affiliates | 28,473 | 139,975 | 21,038 | 59,214 | 395,888 | 59,502 | ||||||
Income tax expense | (5,765 | ) | (50,340 | ) | (7,566 | ) | (7,842 | ) | (129,676 | ) | (19,490 | ) |
Share of income of affiliates | 13,059 | 24,059 | 3,616 | 34,398 | 53,752 | 8,079 | ||||||
Net income | 35,767 | 113,694 | 17,088 | 85,770 | 319,964 | 48,091 | ||||||
less: net income (loss) attributable to noncontrolling interests | 3,674 | 1,426 | 214 | 3,318 | (2,391 | ) | (359 | ) | ||||
Net income attributable to the Company's shareholders | 32,093 | 112,268 | 16,874 | 82,452 | 322,355 | 48,450 | ||||||
Net income per share: | ||||||||||||
Basic | 0.03 | 0.09 | 0.01 | 0.07 | 0.27 | 0.04 | ||||||
Diluted | 0.03 | 0.09 | 0.01 | 0.07 | 0.26 | 0.04 | ||||||
Net income per ADS: | ||||||||||||
Basic | 0.55 | 1.8 | 0.27 | 1.42 | 5.31 | 0.8 | ||||||
Diluted | 0.53 | 1.77 | 0.27 | 1.37 | 5.15 | 0.77 | ||||||
Shares used in calculating net income per share: | ||||||||||||
Basic | 1,163,302,341 | 1,247,356,127 | 1,247,356,127 | 1,159,295,688 | 1,214,639,385 | 1,214,639,385 | ||||||
Diluted | 1,212,231,308 | 1,269,932,904 | 1,269,932,904 | 1,207,220,255 | 1,252,939,633 | 1,252,939,633 | ||||||
Net income | 35,767 | 113,694 | 17,088 | 85,770 | 319,964 | 48,091 | ||||||
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments | 4,431 | (8,367 | ) | (1,258 | ) | 9,328 | (11,346 | ) | (1,705 | ) | ||
Fair value changes | — | — | — | — | (632 | ) | (95 | ) | ||||
Share of other comprehensive gain (loss) of affiliates | (10,505 | ) | 889 | 134 | (38,866 | ) | 343 | 52 | ||||
Comprehensive income | 29,693 | 106,216 | 15,964 | 56,232 | 308,329 | 46,343 | ||||||
Less: Comprehensive income (loss) attributable to the noncontrolling interests | 3,674 | 1,426 | 214 | 3,318 | (2,391 | ) | (359 | ) | ||||
Comprehensive income attributable to the Company's shareholders | 26,019 | 104,790 | 15,750 | 52,914 | 310,720 | 46,702 | ||||||
FANHUA INC. | |||||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flow | |||||||||||||||||
(In thousands) | |||||||||||||||||
For The Three Months Ended | For The Nine Months Ended | ||||||||||||||||
| |||||||||||||||||
2016 | 2017 | 2017 | 2016 | 2017 | 2017 | ||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net income | 35,767 | 113,694 | 17,088 | 85,770 | 319,964 | 48,091 | |||||||||||
Adjustments to reconcile net income to net cash generated from (used in) operating activities: | |||||||||||||||||
Depreciation | 3,529 | 4,351 | 653 | 10,204 | 12,079 | 1,815 | |||||||||||
Amortization of intangible assets | 8,806 | 8,417 | 1,265 | 11,432 | 25,433 | 3,823 | |||||||||||
Allowance for doubtful receivables | 1,577 | 2,822 | 424 | 542 | 11,728 | 1,763 | |||||||||||
Compensation expenses associated with stock option | — | — | — | 4,937 | — | — | |||||||||||
Investment income | (13,907 | ) | (41,288 | ) | (6,206 | ) | (34,844 | ) | (141,201 | ) | (21,223 | ) | |||||
Gain on disposal of subsidiaries | — | (193 | ) | (29 | ) | (3,082 | ) | (1,495 | ) | (225 | ) | ||||||
Loss (gain) on disposal of property, plant and equipment | 99 | (38 | ) | (6 | ) | 101 | (40 | ) | (6 | ) | |||||||
Share of income of affiliates | (13,059 | ) | (24,059 | ) | (3,616 | ) | (34,398 | ) | (53,752 | ) | (8,079 | ) | |||||
Changes in operating assets and liabilities | 6,784 | (89,383 | ) | (13,431 | ) | (66,332 | ) | (80,440 | ) | (12,090 | ) | ||||||
Net cash generated from (used in) operating activities | 29,596 | (25,677 | ) | (3,858 | ) | (25,670 | ) | 92,276 | 13,869 | ||||||||
Cash flows (used in) generated from investing activities: | |||||||||||||||||
Purchase of property, plant and equipment | (3,523 | ) | (7,729 | ) | (1,162 | ) | (7,540 | ) | (15,934 | ) | (2,395 | ) | |||||
Proceeds from disposal of property and equipment | — | 35 | 5 | 48 | 91 | 14 | |||||||||||
Purchase of short term investments | (1,689,500 | ) | (3,509,600 | ) | (527,498 | ) | (6,541,800 | ) | (7,787,794 | ) | (1,170,516 | ) | |||||
Proceeds from disposal of short term investments | 1,703,007 | 3,667,482 | 551,228 | 5,946,400 | 8,461,895 | 1,271,834 | |||||||||||
Acquisition of subsidiaries ,net of cash | (4,185 | ) | — | — | (4,185 | ) | — | — | |||||||||
Disposal of subsidiaries, net of cash........................... | 50 | — | — | 29,376 | 14,350 | 2,157 | |||||||||||
Purchase of intangible assets | (40,000 | ) | — | — | (60,000 | ) | — | — | |||||||||
Increase in loan to the third party | — | (500,000 | ) | (75,151 | ) | — | (500,000 | ) | (75,151 | ) | |||||||
Decrease (Increase) in amounts due from related parties | — | 160,000 | 24,048 | — | (240,000 | ) | (36,072 | ) | |||||||||
Net cash used in investing activities | (34,151 | ) | (189,812 | ) | (28,530 | ) | (637,701 | ) | (67,392 | ) | (10,129 | ) | |||||
Cash flows (used in) generated from financing activities: | |||||||||||||||||
Acquisition of additional interest in subsidiaries | (138,774 | ) | — | — | (213,534 | ) | — | — | |||||||||
Proceeds on exercise of stock options | 743 | 154 | 23 | 745 | 10,856 | 1,631 | |||||||||||
Proceeds of employee subscriptions | — | — | — | — | 22,187 | 3,335 | |||||||||||
Proceeds of issuance of ordinary shares upon private placement | — | — | — | — | 201,087 | 30,224 | |||||||||||
Dividends paid res | — | — | — | — | (36,121 | ) | (5,429 | ) | |||||||||
Net cash (used in)generated from financing activities | (138,031 | ) | 154 | 23 | (212,789 | ) | 198,009 | 29,761 | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (142,586 | ) | (215,335 | ) | (32,365 | ) | (876,160 | ) | 222,893 | 33,501 | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 397,313 | 709,133 | 106,583 | 1,132,851 | 273,979 | 41,179 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 3,506 | (3,903 | ) | (587 | ) | 1,542 | (6,977 | ) | (1,049 | ) | |||||||
Cash, cash equivalents and restricted cash at end of period | 258,233 | 489,895 | 73,631 | 258,233 | 489,895 | 73,631 | |||||||||||
Interest paid | — | — | — | — | — | — | |||||||||||
Income taxes paid | 216 | 25,198 | 3,787 | 3,544 | 80,360 | 12,078 | |||||||||||
1 This announcement contains currency conversions of certain Renminbi (RMB) amounts into
2 Active users are defined as users who made at least one purchase through CNpad App during the specified period.
3 Active users of CNpad App included users who made at least one purchase of life insurance policy and/or P&C insurance policy during the specific period.
4 Active customer accounts are defined as customer accounts that made at least one purchase directly through www.baoxian.com, its mobile application, or Wechat public account during the specified period.
For more information, please contact:
Investor Relations Manager
Tel: +86 (20) 8388-3191
Email: qiusr@fanhuaholdings.com
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