For its fiscal year ended June 30, 2009, China INSOnline Corp.
(NASDAQ: CHIO), a rapidly growing integrated licensed insurance
services provider, which operates www.soobao.cn, one of China's
leading insurance services web portals, reported that net revenues
advanced 31% to $17,976,529 from $13,735,376 in prior year, while
net income grew 10% to $9,177,601 compared with $8,336,357 in the
prior fiscal year. Earnings per share for the year ended June 30,
2009 were $0.23 on 40,000,000 weighted average shares outstanding
as compared with $0.25 on 33,946,666 weighted average shares in the
prior fiscal year.
While the Company saw gains in each of its three reportable
business segments, it cited the 51% increase in Software
Development revenues as the main driver of fiscal year results, as
this unit completed four major software development projects during
the year, generating approximately $6.5 million in revenues.
Additionally, the Company said revenues from Online Insurance
Advertising -- representing 61% of total revenues during the year
-- increased 19% to approximately $11.24 million as of June 20,
2009, while Insurance Agency revenues grew 65% to $510,332,
following the Company's acquisition of Guang Hua Insurance Agency
Company Limited ("GHIA") in October, 2008.
For the year ended June 30, 2009, the Company said its Cost of
Sales increased 62% to 12% of net revenues, or approximately $3.13
million, primarily as a result of higher amortization and an
increase in business tax. The Company also noted that during the
most recent fiscal year, selling expenses increased to 2% of net
revenues, primarily in connection with the growth in the operations
of its insurance agency company. It also recorded growth related
increases in advertising and general and administrative
expenses.
The gross profit contribution of Software Development increased
approximately $2.2 million, or 52%, to approximately $6.4 million
during the most recent fiscal year, while Online Insurance
Advertising gross profit increased approximately $1.45 million, or
16%, to approximately $10.33 million. The Insurance Agency
generated a gross loss during the fiscal year of $225,047.
Ms. Betty Xu, CEO of China INSOnline, stated, "In 2009, China
has become the largest Internet market in the world, with an
estimated 400 million users by year end, and our insurance website
www.soobao.cn is becoming an increasingly important part of the
landscape. Growing Internet use makes our site an ideal media for
insurance trade professionals and insurance companies for
concentrated advertising to potential insurance customers. Our plan
is to steadily increase our brand popularity in the industry, to
seek regional channel agents for ads and introduce Soobao to first
and second-level cities across the country with an aim toward
national distribution of direct-marketing of insurance."
"To date," Ms. Xu said, "we also have provided website
construction services to more than 7,340 insurance agents in the
Beijing area and we fully expect to sustain our leading position by
continuing to build our brand name."
She added, "As a result of our acquisition of GHIA in 2008, we
also are qualified to do business as an insurance agent throughout
all of China. While insurance services to date have been a small
fraction of our revenues, we are looking to expand this business
and see insurance sales commissions as a vital business for profit
and growth."
Mr. Zhenyu Wang, Chairman of the Company, stated, "I believe we
have been able to adjust the Company's strategies to reflect the
ongoing changes in the economy. Property and life insurance
offerings will continue to expand along with our focus on online
auto insurance, which is operating in a strong growth environment
as China's auto sales have resumed the double digit growth they
experienced before 2008. While we believe our www.soobao.cn portal
will continue to pave the way for future growth, we remain focused
on supplementing online activity with a comprehensive chain
insurance supermarket entity."
About China INSOnline Corp.
China INSOnline Corp., incorporated in Delaware and
headquartered in Beijing, is a rapidly growing licensed insurance
agency in The People's Republic of China. Representing major
insurance underwriting firms in China, the Company offers online
automobile, property and life insurance services through its
industry web portal, www.soobao.cn. The Company's online platform
also provides consumers, agents and insurance companies with online
transaction capabilities, advertising, online inquiry, news
circulation, statistical analysis and software development
services. For more information, please visit
www.china-insonline.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995:
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on current expectations
or beliefs, including, but not limited to, statements concerning
the Company's operations, financial performance and condition. For
this purpose, statements that are not statements of historical fact
may be deemed to be forward-looking statements. The Company
cautions that these statements by their nature involve risks and
uncertainties, and actual results may differ materially depending
on a variety of important factors, including, but not limited to,
the impact of competitive products, pricing and new technology;
changes in consumer preferences and tastes; and effectiveness of
marketing; changes in laws and regulations; fluctuations in costs,
and other factors as those discussed in the Company's reports filed
with the Securities and Exchange Commission from time to time. In
addition, the Company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof.
CHINA INSONLINE CORP.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
Year Ended Year Ended
June 30, 2009 June 30, 2008
------------- -------------
REVENUES, NET $ 17,976,529 $ 13,735,376
COST OF SALES 2,133,169 1,313,582
------------- -------------
GROSS PROFIT 15,843,360 12,421,794
Selling expenses 281,540 167,903
Advertising expenses 1,912,725 962,160
General and administrative expenses 1,311,384 808,432
------------- -------------
INCOME FROM OPERATIONS 12,337,711 10,483,299
------------- -------------
Interest income, net 24,718 19,904
------------- -------------
INCOME FROM OPERATIONS BEFORE INCOME TAXES 12,362,429 10,503,203
Income taxes 3,184,828 2,166,846
------------- -------------
NET INCOME 9,177,601 8,336,357
OTHER COMPREHENSIVE INCOME
Foreign currency translation (loss) gain (13,398) 725,006
------------- -------------
COMPREHENSIVE INCOME $ 9,164,203 $ 9,061,363
============= =============
NET INCOME PER SHARE
BASIC AND DILUTED $ 0.23 $ 0.25
============= =============
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC AND DILUTED 40,000,000 33,946,666
============= =============
Contacts: HM Yun Chief Operating Officer Email: man@soobao.cn
www.china-insonline.com Ken Donenfeld DGI Investor Relations
donfgroup@aol.com
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