GUANGZHOU, China, May 19 /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 first quarter ended March 31, 2008.(1)
(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
RMB7.0120 to US$1.00, the effective noon buying rate as of March
31, 2008 in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of New
York. Financial Highlights for First Quarter 2008 -- Total net
revenues: RMB136.6 million (US$19.5 million), representing a
decrease of 13.9% from the fourth quarter of 2007 and an increase
of 93.2% from the first quarter of 2007. -- Net income: RMB35.0
million (US$5.0 million), representing a decrease of 34.9% from the
fourth quarter of 2007 and an increase of 36.0% from the first
quarter of 2007. -- Basic and diluted net income per ADS: RMB0.768
(US$0.110), RMB0.768(US$0.110), respectively. Commenting on the
first quarter results, Yinan Hu, Chairman and CEO of CNinsure
stated: "We are pleased with the strong first quarter results,
especially the 93.2% growth in total net revenues over the
corresponding period in 2007, despite the snow storms that hit
large parts of China earlier this year. Of the total net revenues,
94.4% were contributed by existing operations, reflecting a strong
momentum for our organic growth. Meanwhile, life insurance business
has also played an important role in driving the growth of our top
line for this quarter. "Looking ahead to the remainder of 2008, we
believe that our business will be even stronger, primarily driven
by continued acquisitions and integration of the acquired
companies, increasing bargaining power with insurance companies,
further cooperation with insurance companies in the exclusive
distribution of customized products and addition of a nationwide
insurance claims adjusting service network. We expect that these
new initiatives, which we have already launched or aim to launch
before the end of this year, will improve our business structure
and diversify our revenue, adding new momentum to our growth not
only for this year but also in the long run.' Mr.Hu continued. "The
recent earthquake in Sichuan, China may adversely affect our
operations in Sichuan temporarily. However, we believe the
earthquake's impact on our overall business will be limited as our
distribution network spreads across many other provinces of China.
"We remain focused on our long term strategies, such as expanding
the distribution network through selective acquisitions, our
entrepreneurial agent program and franchising, further expanding
the life insurance business, seeking higher bargaining power with
insurance companies by expanding product and service offerings and
further improving our unified operating platform. I have great
faith in the ability of our management team to deliver these
strategic objectives and further enhance our leading position in
the insurance intermediary sector." Financial Results for the First
Quarter 2008 Total net revenues for the first quarter ended March
31, 2008 were RMB136.6 million (US$19.5 million), representing a
decrease of 13.9% from RMB158.7 million for the previous quarter,
and an increase of 93.2% from RMB70.7 million for the first quarter
in 2007. Net revenues from commissions and fees were RMB136.5
million (US$19.5 million) for the first quarter of 2008,
representing a decrease of 13.9% from RMB158.5 million for the
fourth quarter of 2007 and an increase of 93.3% from RMB70.6
million for the first quarter of 2007. The decrease as compared to
the fourth quarter of 2007 was primarily due to the seasonality of
our business. Historically, our net revenues from commissions and
fees for the first quarter of a year have generally been the lowest
among all four quarters. Business activities, including buying and
selling insurance, slow down during the Chinese New Year
festivities, which occur during the first quarter of each year. The
increase as compared to the first quarter of 2007 was primarily
attributable to an increase in commission rates, higher
productivity of sales agents in the distribution of life insurance
products, an increase in the number of sales agents and
contributions from newly acquired entities. Net revenues from other
service fees were RMB0.1 million (US$0.02 million) for the first
quarter of 2008. Total operating costs and expenses were RMB104.0
million (US$14.8 million) for the first quarter of 2008,
representing a decrease of 7.6% from RMB112.5 million for the
previous quarter and an increase of 123.5% from RMB46.5 million for
the first quarter of 2007. Commissions and fees expenses were
RMB71.1 million (US$10.1 million) for the first quarter of 2008,
representing a decrease of 14.6% from RMB83.2 million for the
previous quarter and an increase of 115.5% from RMB33.0 million for
the first quarter of 2007. The decrease as compared to the fourth
quarter of 2007 corresponded with the decrease in net revenues from
commissions and fees. The increase as compared to the first quarter
of 2007 corresponded with the increase in net revenues from
commissions and fees. The percentage increase of commissions and
fees expenses was higher than that of net revenues from commissions
and fees in the first quarter of 2007 primarily due to the
expiration of business tax exemptions for most of our affiliated
insurance intermediaries, which had a negative impact on the growth
rate of net revenues from commissions and fees, and increase in the
mix of life insurance sales, which generate lower gross margin than
the sales of property and casualty insurance products. Selling
expenses were RMB4.1 million (US$0.6 million) for the first quarter
of 2008, representing an increase of 45.4% from RMB2.8 million for
the previous quarter and an increase of 88.1% from RMB2.2 million
for the first quarter of 2007. The increases as compared to the
fourth quarter of 2007 and the first quarter of 2007 were primarily
due to selling expenses incurred by newly acquired entities in the
first quarter of 2008. General and administrative expenses were
RMB28.8 million (US$4.1 million) for the first quarter of 2008,
representing an increase of 8.8% from RMB26.4 million for the
previous quarter and an increase of 153.7% from RMB11.3 million for
the first quarter of 2007. The increase as compared to the fourth
quarter of 2007 was primarily due to an increase in share-based
compensation expenses. The increase as compared to the first
quarter of 2007 was primarily due to an increase in share-based
compensation expenses, salaries for administrative staff primarily
as a result of increased headcount, ongoing expenses for
professional services and Sarbanes-Oxley Act compliance-related
expenses. Income from operations were RMB32.7 million (US$4.7
million) for the first quarter of 2008, representing a decrease of
29.4% from RMB46.2 million for the previous quarter and an increase
of 34.9% from RMB24.2 million for the first quarter of 2007.
Operating margin was 23.9% for the first quarter of 2008 as
compared with 29.1% for the previous quarter and 34.2% for the
first quarter of 2007. Interest income for the first quarter of
2008 was RMB13.0 million (US$1.9 million), representing an increase
of 19.4% from RMB10.9 million for the previous quarter and an
increase of 1,169.2% from RMB1.0 million for the first quarter of
2007, primarily attributable to the proceeds generated by our
initial public offering in October 2007. Income tax expense for the
first quarter of 2008 was RMB11.2 million (US$1.6 million),
representing an increase of 245.6% from RMB3.2 million for the
previous quarter and an increase of 2,996.5% from RMB0.4 million
for the first quarter of 2007. Effective income tax rate was 24.5%
for the first quarter of 2008 compared to 5.7% for the previous
quarter and 1.4% for the first quarter of 2007. The increases in
income tax expense and effective income tax rate were primarily
attributable to the expiration of income tax exemptions. Net income
was RMB35.0 million (US$5.0 million) for the first quarter of 2008,
representing a decrease of 34.9% from RMB53.8 million for the
previous quarter, and an increase of 36.0% from RMB25.8 million for
the first quarter of 2007. Net margin was 25.6% for the first
quarter of 2008 as compared with 33.9% for the previous quarter and
36.4% for the first quarter of 2007. Fully diluted net income per
ADS was RMB0.768 (US$0.110) for the first quarter of 2008, compared
with RMB0.768 for the first quarter of 2007. As of March 31, 2008,
the Company had RMB1,575.4 million (US$224.7 million) in cash and
cash equivalents. Business Highlights CNinsure continued executing
its strategy of expanding its business, with the following
highlights for the first quarter ended March 31, 2008: Expanding
Distribution Network -- As of March 31, 2008, CNinsure's
distribution network has expanded to 11 provinces with a total of
17,137 sales professionals and 232 sales and service outlets, as
compared to 8 provinces, 13,830 sales professionals and 195 outlets
as of the end of 2007. Pursuing Expansion through Acquisitions
while Remaining Focused on Organic Growth Organic Growth --
CNinsure remained focused on organic growth. In the first quarter
of 2008, approximately 94.4% of our total net revenues were
contributed by existing operations. Acquisitions -- In the first
quarter of 2008, CNinsure completed acquisitions of majority
interests in six insurance intermediaries, including Guangdong
Fangzhong Insurance Surveyors & Loss Adjustors Co., Ltd., Hubei
East Century Insurance Agency Co, Ltd., Tianjin Fanhua Xianghe
Insurance Agency Co, Ltd., Changsha Lianyi Insurance Agency Co.,
Ltd., Jiangmen Fanhua Zhicheng Insurance Agency Co., Ltd., and
Hebei Lianda Insurance Agency Co., Ltd., expanding its market
presence into two new geographic markets, Tianjin and Hubei
Province. The acquired entities in aggregate contributed 5.6% of
our total net revenues in the first quarter of 2008. Acquisition
Integration -- CNinsure is in the process of replacing the existing
platforms of the newly acquired entities with CNinsure's
standardized operating platform which includes branding and
marketing strategy, operating procedures, finance and internal
control system and human resources management policies and
procedures. Further Expanding the Life Insurance Business --
Commissions and fees from life insurance have grown significantly.
Apart from increased resources devoted to life insurance business,
another primary reason behind this growth is higher commission
rates for life insurance policies we received from insurance
companies as a result of intensified competition among insurance
companies and our increasing bargaining power. Strengthening
Partnership with Insurance Companies -- CNinsure, which has
established business relationships with over 40 domestic and
foreign insurance companies, entered into strategic partnerships
with Ping An Life Insurance Company of China, Ltd. and Minsheng
Life Insurance Co., Ltd.. It also signed an agreement with Ping An
Life Insurance for the exclusive distribution of an insurance
product custom designed by Ping An Life Insurance for CNinsure.
Enhancing Leading Position in the Chinese Insurance Intermediary
Sector -- According to the Insurance Intermediary Market
Development Report published by the China Insurance Regulatory
Commission of the first quarter of 2008, seven of our affiliated
insurance agencies ranked Nos.2, 4, 6, 12, 13, 16 and 17,
respectively, among China's top 20 insurance agencies in terms of
revenue, one of our affiliated insurance brokerages ranked No. 16
among China's top 20 insurance brokerages for the same period,
while our affiliated insurance adjusting company ranked No.8 among
China's top 20 insurance claims adjusting companies in terms of
revenue. Business Outlook For the second quarter 2008, CNinsure
expects its total net revenues to be between RMB175.0 million
(US$25.0 million) and RMB180.0 million (US$25.7 million), which
reflects its current estimates of the potential impact of the
recent earthquake in Sichuan, China. 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 First quarter of 2008 results at Time: 9:00 pm Eastern
Daylight Time on May 19, 2008 9:00 am Beijing/Hong Kong Time on May
20, 2008 The Toll Free dial-in number: US: 1866-549-1292 UK:
0808-234-6305 Canada: 1866-8691-825 Singapore: 800-852-3576 Taiwan:
0080-185-6004 Hong Kong: +852-3005-2050 China (Mainland):
800-701-1223; China (Mainland) local dial-in number: 400-681-6949
Password: 885507# A replay of the call will be available for three
days as follows: +852-3005-2020 (Hong Kong & International) PIN
number: 135111# 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 About
CNinsure Inc. CNinsure is a leading independent insurance agency
and brokerage company operating in China. CNinsure's distribution
network reaches many 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, as
well as other 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 May 19, 2008, 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. For more information, please contact: Phoebe Meng Investor
Relations Officer Email: Oasis Qiu Investor Relations Tel:
+86(20)6122-2777-850 Email: CNINSURE INC. Unaudited Condensed
Consolidated Balance Sheets As of As of As of December 31, March
31, March 31, 2007 2008 2008 RMB RMB USD (In thousands, except for
shares and per share data) ASSETS: Current assets Cash and cash
equivalents 1,545,501 1,575,395 224,671 Restricted cash 12,863
21,250 3,031 Accounts receivable 18,701 33,704 4,807 Insurance
premium receivable 655 275 39 Other receivables, net 30,510 32,797
4,677 Other current assets 6,136 375 53 Total current assets
1,614,366 1,663,796 237,278 Non-current assets Property, plant, and
equipment, net 11,117 13,552 1,933 Goodwill 9,329 10,515 1,500
Intangibles 4,271 12,090 1,724 Deferred tax assets 2,265 1,746 249
Other 500 8,528 1,216 Total assets 1,641,848 1,710,227 243,900
LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts
payables 10,122 32,549 4,642 Insurance premium payable 12,863
21,250 3,031 Other payables and accrued expenses 17,033 40,110
5,720 Accrued payroll 7,722 6,560 936 Income tax payable 1,966
12,036 1,716 Amounts due to related parties 369 369 53 Current
portion of long-term borrowings 103 113 16 Total current
liabilities 50,178 112,987 16,114 Non-current liabilities:
Long-term borrowings 57 84 12 Deferred tax liabilities 3,195 2,444
348 Total liabilities 53,430 115,515 16,474 Commitments and
contingencies Minority interests 18,248 21,706 3,096 Common stock
7,036 7,036 1,003 Additional paid-in capital 1,621,064 1,627,338
232,079 Accumulated deficit (38,458) (5,005) (714) Accumulated
other comprehensive Loss (19,472) (56,363) (8,038) Total
shareholders' equity 1,570,170 1,573,006 224,330 Total liabilities
and owners' equity 1,641,848 1,710,227 243,900 CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations For The
Three Months Ended March 31, 2007 2008 2008 RMB RMB USD (In
thousands, except for shares and per share data) Net revenues:
Commissions and fees 70,594 136,482 19,464 Other service fees 121
136 19 Total net revenues 70,715 136,618 19,483 Operating costs and
expenses: Commissions and fees (32,979) (71,069) (10,135) Selling
expenses (2,198) (4,135) (590) General and administrative expenses
(11,338) (28,764) (4,102) Total operating costs and expenses
(46,515) (103,968) (14,827) Income from operations 24,200 32,650
4,656 Other income (expense), net: Interest income 1,027 13,033
1,859 Interest expense (22) (7) (1) Others, net 11 1 0 Income
before income taxes 25,216 45,677 6,514 Income tax expense (362)
(11,205) (1,598) Net income before minority interest 24,854 34,472
4,916 Minority interest 914 560 80 Net income 25,768 35,032 4,996
Net Income per share: Basic 0.040 0.038 0.005 Diluted 0.038 0.038
0.005 Net Income per ADS: Basic 0.793 0.768 0.110 Diluted 0.768
0.768* 0.110 Shares used in calculating Net income per share Basic
650,000,000 912,497,726 912,497,726 Diluted 671,013,579 912,497,726
912,497,726 * There is no dilutive effect for the three months
ended March 31, 2008 as the stock options were anti-dilutive.
DATASOURCE: CNinsure Inc. CONTACT: Phoebe Meng, Investor Relations
Officer at ; or Oasis Qiu, Investor Relations at
+86(20)6122-2777-850 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