GUANGZHOU, China, Dec. 13 /Xinhua-PRNewswire-FirstCall/ -- CNinsure
Inc., (NASDAQ:CISG), a leading independent insurance agency and
brokerage company operating in China, today announced its unaudited
financial results for the third quarter ended September 30,
2007.(1) Highlights for Third Quarter 2007 -- Total net revenues
were RMB116.9 million (US$15.6 million), representing an increase
of 14.8% from the second quarter of 2007 and 124.8% from the third
quarter of 2006 -- Net revenues from commissions and fees were
RMB116.2 million (US$15.5 million), representing an increase of
14.2% from the second quarter of 2007 and 124.7% from the third
quarter of 2006 -- Net income was RMB42.4 million (US$5.7 million),
representing an increase of 28.9% from the second quarter of 2007
and 508.0% from the third quarter of 2006 -- Basic and diluted net
income per ADS were RMB 1.247 (US$0.166) and RMB 1.244 (US$0.166),
respectively. Commenting on the third quarter results, Yinan Hu,
Chairman and CEO of CNinsure stated: "We are encouraged by the
strong top and bottom line growth achieved during the third quarter
of 2007. CNinsure's leading position among professional insurance
intermediaries in China and our unified operating platform give us
extensive reach to distribute insurance products underwritten by
many insurance companies operating in China. With an innovative
entrepreneurial agent program, an extensive distribution network
and a large customer database, I'm optimistic about our future
growth prospects." "Looking forward, we will remain focused on
executing on our strategy of further expanding our property and
casualty insurance business, developing new opportunities in the
life insurance sector, and expanding our business through selective
acquisitions and other measures," continued Mr. Hu, "Building upon
our successful listing on the Nasdaq in October, we will continue
to bring on top talent, expand our distribution networks and invest
in the necessary technology and resources to further scale up our
operating platform." Financial Results for the Third Quarter of
2007 Total net revenues for the third quarter ended September 30,
2007 were RMB116.9 million (US$15.6 million), representing a 14.8%
increase over RMB101.8 (US$13.6 million) for the preceding quarter,
and a 124.8% increase from RMB52.0 million (US$6.9 million) for the
third quarter in 2006, primarily reflecting the increase in
revenues from commissions and fees. Revenues from commissions and
fees were RMB116.2 million (US$15.5 million) for the third quarter
of 2007, representing an increase of 14.2 % as compared to RMB101.7
million (US$13.6 million) for the previous quarter and an increase
of 124.7% as compared to RMB51.7 million (US$6.9 million) for the
third quarter of 2006. We derive commissions and fees from the
distributions of property and casualty and life insurance products.
The substantial year-over- year increase was primarily attributable
to the further expansion of our business and the fact that our
commissions and fees in the third quarter of 2006 had experienced a
temporary decline due to the introduction of mandatory third party
automobile liability insurance by the PRC government. Revenues from
other service fees were RMB0.7 million (US$0.1 million) for the
third quarter of 2007. Total operating costs and expenses were
RMB77.1 million (US$10.3 million) for the third quarter of 2007,
representing growth of 8.8% as compared to RMB70.9 million
(US$9.5million) for the previous quarter and an increase of 61.1%
as compared to RMB47.9 million (US$6.4 million) for the third
quarter of 2006. Commissions and fees expenses were RMB62.2 million
(US$8.3 million) for the third quarter of 2007, representing growth
of 14.6% as compared to RMB54.3 million (US$7.2 million) for the
previous quarter and an increase of 98.6% as compared to RMB31.3
million (US$4.2 million) for the third quarter of 2006, primarily
due to the increase in the distribution of insurance products..
Selling expenses were RMB2.3 million (US$0.3 million) for the third
quarter of 2007, representing growth of 16.8% as compared to RMB2.0
million (US$0.3 million) for the previous quarter and a decrease of
21.5% as compared to RMB3.0 million (US$0.4 million) for the third
quarter of 2006. The quarter- over-quarter increase reflects
results largely from the overall growth of our business. The
year-over-year decrease was primarily due to decreases in office
expenses following further centralization of management functions.
General and administrative expenses were RMB12.6 million (US$1.7
million) for the third quarter of 2007, representing a decrease of
13.8% as compared to RMB14.6 million (US$1.9 million) for the
previous quarter and a decrease of 7.5% as compared to RMB13.6
million (US$1.8 million) for the third quarter of 2006. The
quarter-over-quarter decrease was primarily due to the recognition
of certain IPO-related expenses during the second quarter of 2007.
The year- over-year decrease was primarily due to a decrease in
share-based compensation expenses. Operating margin was 34.0% for
the third quarter of 2007 as compared with 30.4% for the previous
quarter and 7.9% for the third quarter of 2006. Interest income for
the third quarter of 2007 was RMB2.7 million (US$0.4 million),
representing an increase of 181.1% as compared to RMB1.0 million
(US$0.1 million) for the previous quarter and an increase of 36.4%
as compared to RMB2.0 million (US$0.4 million) for the third
quarter of 2006. The increases resulted primarily from an increase
in cash and cash equivalents arising from overall positive cash
flows and increases in interest rates in China. Net income was
RMB42.4 million (US$5.7 million) for the third quarter of 2007,
representing growth of 28.9% as compared to RMB32.9 million (US$4.4
million) for the previous quarter, and an increase of 508.0% as
compared to RMB7.0 million (US$0.9 million) for the third quarter
of 2006. Net margin was 36.3% for the third quarter of 2007 as
compared to 32.3% for the previous quarter and 13.4% for the third
quarter of 2006. As of September 30, 2007, the Company had RMB419.9
million (US$56.0 million) in cash and cash equivalents. Business
Outlook For the fourth quarter 2007, CNinsure expects its total net
revenues to be between RMB135 million (US$18.0 million) and RMB150
million (US$20.0 million). This forecast reflects CNinsure's
current and preliminary view, which is subject to change.
Conference Call The Company will host a conference call to discuss
the third quarter results at Time: 8:00 pm Eastern Standard Time on
December 13, 2007 or 9:00 am Beijing/Hong Kong Time on December 14,
2007 The Toll Free dial-in number: US: 1866-549-1292 UK:
0808-234-6305 Singapore: 800-852-3576 Taiwan: 0080-185-6004 Hong
Kong: 3005-2050 China (Mainland): 800-869-7678 China (Mainland)
local dial-in number: 400-733-1511 Password: 573031# A replay of
the call will be available for three days as follows: 3005-2020
(Hong Kong) +852-3005-2020 (international) PIN number: 133470#
Additionally, a live and archived web cast of this call will be
available at:
http://www.corpasia.net/us/CISG/irwebsite/index.php?mod=event (1)
This announcement contains translations of certain Renminbi (RMB)
amounts into U.S. dollars (US$) 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 RMB7.4928 to
US$1.00, the effective noon buying rate as of September 28, 2007 in
The City of New York for cable transfers of RMB as certified for
customs purposes by the Federal Reserve Bank of New York. About
CNinsure Inc. CNinsure is a leading independent insurance agency
and brokerage company operating in China. CNinsure's distribution
network reaches some of China's most economically developed regions
and affluent cities. The Company distributes a wide variety of
property and casualty and life insurance products underwritten by
domestic and foreign insurance companies operating in China and
provides insurance-related services. Forward-looking Statements
This press release contains statements of a forward-looking nature.
These statements 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, the
management's quotations and "Business Outlook" 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 CNinsure
and the industry. Potential risks and uncertainties include, but
are not limited to, those relating to CNinsure's limited operating
history, especially its limited experience in selling life
insurance products, 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 Chinese
insurance industry, and its ability to compete effectively against
its competitors. All information provided in this press release is
as of December 13, 2007, and CNinsure undertakes no obligation to
update any forward looking statements to reflect subsequent
occurring events or circumstances, or to changes in its
expectations, except as may be required by law. Although CNinsure
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 CNinsure is included in CNinsure's filings
with the U.S. Securities and Exchange Commission, including its
registration statement on Form F-1. CNinsure Inc. Unaudited
Condensed Consolidated Balance Sheets As of As of As of December
September September 31, 2006 30, 2007 30, 2007 RMB RMB USD (In
thousands, except for shares and per share data) ASSETS: Current
assets Cash and cash equivalents 223,926 419,873 56,037 Restricted
cash 7,413 20,136 2,687 Accounts receivable 26,569 16,157 2,156
Insurance premium receivable 994 1,382 184 Other receivables, net
16,988 30,254 4,038 Amounts due from related parties 78,957 1,400
187 Other current assets 856 26,162 3,492 Total current assets
355,703 515,364 68,781 Non-current assets Property, plant, and
equipment, net 9,741 10,924 1,458 Goodwill 7,042 7,042 940
Intangibles 4,471 4,249 567 Deferred tax assets 2,365 3,958 528
Other 300 350 47 Total assets 379,622 541,887 72,321 LIABILITIES
AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payables
14,275 38,501 5,138 Insurance premium payable 7,413 20,136 2,687
Other payables and accrued expenses 12,139 32,101 4,284 Accrued
payroll 4,902 5,341 713 Income tax payable 798 1,795 240 Amounts
due to related parties 3,679 2,394 320 Dividend payable 32,000
39,970 5,335 Current portion of long-term borrowings 318 133 18
Total current liabilities 75,524 140,371 18,735 Non-current
liabilities: Long-term borrowings 237 78 10 Deferred tax
liabilities 560 2,064 275 Total liabilities 76,321 142,513 19,020
Commitments and contingencies Minority interests 13,717 15,858
2,116 Common stock 5,073 5,333 712 Additional paid-in capital
369,781 398,670 53,207 Accumulated (deficit) profit (85,091)
(22,265) (2,971) Accumulated other comprehensive loss (179) 1,778
237 Total owners' equity 289,584 383,516 51,185 Total liabilities
and owners' equity 379,622 541,887 72,321 CNinsure Inc. Unaudited
Condensed Consolidated Statements of Operations For the Three
Months Ended For the Nine Months Ended September 30, September 30,
2006 2007 2007 2006 2007 RMB RMB USD RMB RMB (In thousands, except
for shares and per share data) Net revenues: Commissions and fees
51,700 116,154 15,502 158,243 288,477 Other service fees 305 745 99
553 983 Total net revenues 52,005 116,899 15,601 158,796 289,460
Operating costs and expenses: Commissions and fees (31,315)
(62,205) (8,302) (84,636) (149,480) Selling expenses (2,973)
(2,333) (311) (8,261) (6,529) General and administrative expenses
(13,585) (12,562) (1,677) (39,378) (38,477) Total operating costs
and expenses (47,873) (77,100) (10,290) (132,275) (194,486) Income
from operations 4,132 39,799 5,311 26,521 94,974 Other income
(expense), net: Interest income 1,964 2,679 358 3,560 4,659
Interest expense (2) (4) (1) (30) (70) Others, net (5) (62) (8) 5
(47) Income before income taxes 6,089 42,412 5,660 30,056 99,516
Income tax benefit (expense) 70 (812) (108) 112 (988) Net income
before minority interest 6,159 41,600 5,552 30,168 98,528 Minority
interest 822 841 112 982 2,603 Net income 6,981 42,441 5,664 31,150
101,131 Net income per share, basic 0.011 0.062 0.008 0.048 0.153
Net income per share diluted 0.010 0.062 0.008 0.047 0.150 Net
income per ADS, basic 0.215 1.247 0.166 0.958 3.063 Net income per
ADS, diluted 0.210 1.244 0.166 0.943 2.995 Shares used in
calculating net income per share Basic 650,000,000 680,491,991
680,491,991 650,000,000 660,275,689 Diluted 666,399,739 682,136,595
682,136,595 660,577,708 675,435,546 DATASOURCE: CNinsure Inc.
CONTACT: Phoebe Meng, IR Officer for CNinsure Inc.,
+86-20-6122-2731, or
Copyright
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jul 2023 to Jul 2024