Fanhua Updates Progress of Share Purchases Under its 521 Development Plan
October 12 2018 - 4:30PM
Fanhua Inc. (Nasdaq: FANH) (the "Company" or "Fanhua"), a leading
independent financial services provider operating in China, further
to its announcement on June 14, 2018, today provided an update on
the progress of its share purchases in relation to the Company’s
521 Development Plan.
Pursuant to a share purchase agreement entered
into between Joy Magnificent Limited (which was later renamed as
Fanhua Employees Holdings Limited), a company established on behalf
of certain key employees and sales agents of the Company and Master
Trend Limited, or Master Trend, Fanhua’s entrepreneurial sales
agent team leaders, key employees and management agreed to purchase
a total of 8.5 million American Depositary Shares (“ADS”, each
representing 20 ordinary shares of the Company) Master Trend, in a
privately negotiated transaction, at a price of US$29 per ADS,
which was the average closing price of the 30 trading days prior to
the approval by its board of directors (the “Board”) on June 14,
2018.
As of October 10, 2018, Fanhua Employees
Holdings Limited has completed the purchase of 7.5 million ADSs
from Master Trend. Upon completion of the share transfer, Fanhua
Employees Holdings Limited beneficially owns 11.6% of the
outstanding share capital of the Company.
In the meantime, Mr. Chunlin Wang, chief
executive officer and chairman of the Board of Fanhua, and Mr. Peng
Ge, chief financial officer of Fanhua, have also completed the
purchase of 800,000 ADSs and 200,000 ADSs, respectively, from
Master Trend at US$29 per ADS. As a result of these purchases, Mr.
Wang’s stake in the Company increases from 1.8% to 3.0% of the
outstanding share capital of the Company, and Mr. Ge’s stake
increases from 3.5% to 3.8%. The purchases were funded with their
personal funds.
“The 521 Development Plan has attracted huge
interests in the China’s insurance industry. We believe that it
will play an important role in helping the Company attract and
retain top talents,” said Mr. Chunlin Wang.
“This year marks the 20th anniversary of
Fanhua’s establishment. As witnesses to all of Fanhua's key
milestones in the past decades, both Mr. Peng Ge and I have strong
confidence in Fanhua’s future growth potential. As such, we’ve
never sold a single share of Fanhua since its initial public
offering. We believe that the implementation of the 521 Plan will
help further fortify Fanhua’s competitive edge while driving its
long term sustainable development. We look forward to sharing this
value with our employees, sales agents, and shareholders as the
Company grows to the next level.”
About Fanhua Inc.
Fanhua Inc., formerly known as CNinsure 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 provided by over 79 insurance companies 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, as well as value-added services, such as emergency
vehicle roadside assistance.
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; (3) eHuzhu (www.ehuzhu.com), a non-profit
online mutual aid platform in China and (4) 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.
As of June 30, 2018, our distribution and
service network consisted of 712 sales and service outlets covering
31 provinces.
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 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, Fanhua’s ability to attract and retain key personnel
and productive 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.
For more information about Fanhua Inc., please
visit http://ir.fanhuaholdings.com/.
Source: Fanhua Inc.
Contact: Oasis Qiu
Investor Relations Manager
Tel: (8620) 83883191
Email: qiusr@fanhuaholdings.com
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