GUANGZHOU, China, Nov. 23 / PRNewswire-Asia-FirstCall/ -- CNinsure
Inc., (NASDAQ:CISG), (the "Company" or "CNinsure"), a leading
independent insurance intermediary company operating in China,
today announced its unaudited financial results for the third
quarter ended September 30, 2009.(1) Financial Highlights:
Highlights for Third Quarter 2009 -- Total net revenues: RMB297.8
million (US$43.6 million), representing an increase of 41.1% from
the corresponding period of 2008, which exceeded the previous
guidance of approximately 35% growth from the corresponding period
of 2008. -- Income from operations: RMB87.7 million (US$12.9
million), representing an increase of 54.4% from the corresponding
period of 2008. -- Net income attributable to the Company's
shareholders: RMB76.9 million (US$11.3 million), representing an
increase of 47.3% from the corresponding period of 2008. -- Basic
and diluted net income per American Depositary Share ("ADS"):
RMB1.686 (US$0.247) and RMB1.641 (US$0.240), respectively,
representing an increase of 47.3% and 43.4%, respectively, from the
corresponding period of 2008. Commenting on the third quarter
results, Yinan Hu, Chairman and CEO of CNinsure stated: "The
Company continued to deliver strong financial results during the
third quarter with total net revenues up 41.1% and net income
attributable to the Company's shareholders up 47.3% compared to the
same period of last year, and we are encouraged to see a
significant year-over-year growth of 95.3% in our life insurance
business, which was mainly attributable to the growth of our Datong
segment and the increase in renewal commissions. "The strong
financial results once again proved the Company had successfully
adopted effective measures to weather the financial crisis and
capitalize on the opportunities to further enhance its
competitiveness and solidify its leading position within the
insurance intermediary industry. With a unified operating platform
and an expanding distribution and service network in place, the
Company stands to benefit from the steady recovery of China's
economy and the tightening regulation of the insurance industry and
achieve faster development." Financial Results for the Third
Quarter Ended September 30, 2009 Total net revenues for the third
quarter ended September 30, 2009 were RMB297.8 million (US$43.6
million), representing an increase of 41.1% from RMB211.0 million
for the corresponding period of 2008. The increase was primarily
attributable to: (1) an increase in the number of our sales
professionals and claims adjusters by 57.2% to 36,227 and 126.1% to
1,449, respectively, by the third quarter of 2009, with operations
in 22 provinces as of September 30, 2009 compared to 15 provinces
as of September 30, 2008, (2) newly acquired entities including the
subsidiaries under the Datong segment, and (3) an increase in
performance bonuses as a result of growth in sales volume. Total
operating costs and expenses were RMB210.1 million (US$30.8
million) for the third quarter of 2009, representing an increase of
36.3% from RMB154.2 million for the corresponding period of 2008.
Commissions and fees expenses were RMB139.7 million (US$20.5
million) for the third quarter of 2009, representing an increase of
26.7% from RMB110.3 million for the corresponding period of 2008.
The increase was primarily due to sales volume growth. Selling
expenses were RMB14.8 million (US$2.2 million) for the third
quarter of 2009, representing an increase of 261.0% from RMB4.1
million for the corresponding period of 2008. The increase was
primarily due to the establishment of additional branches and
companies under the Datong and Claims Adjusting segments and an
increase in sales promotion expenses. General and administrative
expenses were RMB55.6 million (US$8.1 million) for the third
quarter of 2009, representing an increase of 40.1% from RMB39.7
million for the corresponding period of 2008. The increase was
primarily due to the following factors: (1) increases in
headcounts, particularly the recruitment of more senior managers,
and higher base salaries for the managerial and administrative
staff; (2) increases in depreciation of fixed assets as a result of
the operation of our upgraded IT system in affiliated entities; (3)
increases in amortization of intangible assets as a result of the
acquisitions that we made in 2008 and 2009; and (4) increases in
office rental expense and telecom expense and expenses incurred by
newly acquired entities and the expansion of distribution and
service network. As a result of the foregoing factors, income from
operations was RMB87.7 million (US$12.9 million) for the third
quarter of 2009, representing an increase of 54.4% from RMB56.8
million for the corresponding period of 2008. Operating margin was
29.5% for the third quarter of 2009 compared to 26.9% for the
corresponding period of 2008. Interest income for the third quarter
of 2009 was RMB7.5 million (US$1.1 million), representing a
decrease of 41.4% from RMB12.9 million for the corresponding period
of 2008, primarily due to a decrease in bank deposit interest
rates. Income tax expense for the third quarter of 2009 was RMB21.4
million (US$3.1 million), representing an increase of 30.5% from
RMB16.4 million for the corresponding period of 2008. The increase
was primarily attributable to the increase of income from
operations. Effective income tax rate was 22.4% for the third
quarter of 2009 compared to 23.5% for the corresponding period of
2008. Net income attributable to the Company's shareholders was
RMB76.9 million (US$11.3 million) for the third quarter of 2009,
representing an increase of 47.3% from RMB52.2 million for the
corresponding period of 2008. Net margin was 25.8% for the third
quarter of 2009, compared to 24.7% for the corresponding period of
2008. Basic net income per ADS was RMB1.686 (US$0.247) for the
third quarter of 2009, representing an increase of 47.3% from
RMB1.144 for the corresponding period of 2008. Fully diluted net
income per ADS was RMB1.641 (US$0.240) for the third quarter of
2009, representing an increase of 43.4% from RMB1.144 for the
corresponding period of 2008. As of September 30, 2009, the Company
had RMB1.6 billion (US$230.0 million) in cash and cash equivalents.
Recent developments: -- On October 18, 2009, Datong, the life
insurance business segment of CNinsure, announced cooperation with
Sino Life Insurance Co., Ltd. for exclusive distribution of
"Fumantang", a custom-designed participating whole life insurance
product with critical illness benefit rider. Up to now, CNinsure
has established partnerships with four insurance companies for
exclusive distribution of five custom-designed insurance products.
-- On October 1, 2009, CNinsure announced that it entered into
agreements to acquire 20.58% equity interest in China Financial
Services Group Limited ("CFSG"), a consumer credit brokerage
company specializing in the distribution of personal auto loans and
residential mortgage loans, marking its expansion into the consumer
financial services sector. The transaction has been approved by the
boards of directors of both CFSG and CNinsure and was subsequently
completed on November 1, 2009. -- During the third quarter of 2009,
CNinsure established two new life insurance agencies. As of
September 30, 2009, its distribution and service network consisted
of 47 insurance agencies, four insurance brokerages and four claims
adjusting firms with 472 sales and services outlets operating in 22
provinces, compared to 33 insurance agencies, four insurance
brokerages and three claims adjusting firms with 305 sales and
service outlets operating in 15 provinces as of September 30, 2008.
CNinsure had 36,227 sales agents and 1,449 professional claims
adjustors as of September 30, 2009, compared to 23,042 sales agents
and 641 professional claims adjustors as of September 30, 2008. --
According to the Insurance Intermediary Market Development Report
published by the CIRC, based on revenues in the third quarter of
2009, CNinsure had eight affiliated insurance agencies, one
affiliated insurance brokerage, and three affiliated claims
adjusting firms among China's top 20 of their respective
categories, each accounting for 11.93%, 1.09% and 12.44% of the
total revenues of all insurance agencies, brokerages and claims
adjusting firms, respectively, in China. -- During the third
quarter of 2009, net revenues from commissions and fees derived
from Property and Casualty ("P&C") Insurance, Life Insurance
and Claims Adjusting businesses grew by 33.0%, 95.3% and 28.4%
year-over-year, respectively, each contributing 68.2%, 19.8% and
12.0% of the total net revenues in the third quarter of 2009,
respectively. -- As of September 30, 2009, CNinsure had achieved
the following in its IT platform construction: (1) the Core
Business System and a financial and accounting system were
installed in all affiliated subsidiaries of its Life Insurance and
Datong segments, and most of the affiliated subsidiaries of its
P&C Insurance and Claims Adjusting segments; (2) the human
resources system, office automation system and E-learning system
were put into use and the sales automation system was at user
acceptance test stage; and (3) a module for data transmission with
insurance companies and an image & workflow system were under
construction. -- On July 29, 2009, CNinsure announced strategic
partnership with China United Property Insurance Company Limited
for product distribution and outsourcing of claims adjusting
services. This was the second strategic partnership agreement
CNinsure has signed with property and casualty insurance companies
at the group level. Business Outlook CNinsure expects its total net
revenues to grow by approximately 26% for the fourth quarter 2009
and approximately 36% for the fiscal year 2009 compared to the
corresponding period of 2008. 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 2009 results at Time: 8:00 pm Eastern Standard
Time on November 23, 2009 or 9:00 am Beijing/Hong Kong Time on
November 24, 2009 The Toll Free dial-in numbers: United States:
1866-549-1292 United Kingdom: 0808-234-6305 Canada: 1866-8691-825
Singapore: 800-852-3576 Taiwan: 0080-185-6004 China (Mainland):
400-681-6949 Hong Kong & Other Areas: +852-3005-2050 Password:
618842# A replay of the call will be available for three days as
follows: +852-3005-2020 (Hong Kong & other areas) PIN number:
147257# 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 intermediary
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, and provides
insurance claims adjusting 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 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 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 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 November 23,
2009, 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 annual report on Form 20-F.
CNINSURE INC. Unaudited Condensed Consolidated Balance Sheets (In
thousands) As of December As of As of 31, 2008(2) September 30,
September 30, (As Adjusted) 2009 2009 RMB RMB US$ ASSETS: Current
assets: Cash and cash equivalents 1,510,432 1,570,007 229,997
Restricted cash 4,200 2,811 412 Accounts receivable, net 90,452
141,666 20,753 Insurance premium receivables 21 302 44 Other
receivables 57,151 53,974 7,907 Deferred tax assets 1,808 4,556 667
Amounts due from related parties 207,595 19,775 2,897 Other current
assets 5,224 6,817 999 Total current assets 1,876,883 1,799,908
263,676 Non-current assets: Property, plant, and equipment, net
72,538 102,232 14,977 Goodwill 37,888 325,843 47,734 Intangible
assets 53,518 84,279 12,346 Deferred tax assets 4,836 2,747 403
Investment in an affiliate 427 390 57 Other non-current assets 425
2,634 386 Total assets 2,046,515 2,318,033 339,579 LIABILITIES AND
SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable 59,867
55,306 8,102 Insurance premium payables 4,200 2,811 412 Other
payables and accrued expenses 73,712 96,310 14,109 Accrued payroll
15,336 21,531 3,154 Income tax payable 26,140 32,198 4,716 Amounts
due to related parties 10,967 4,177 612 Total current liabilities
190,222 212,333 31,105 Non-current liabilities: Long-term
borrowings -- 20 3 Other tax liabilities 1,871 2,341 343 Deferred
tax liabilities 8,351 19,773 2,897 Total liabilities 200,444
234,467 34,348 Common stock 7,036 7,036 1,031 Additional paid-in
capital 1,666,723 1,603,270 234,870 Statutory reserves 71,237
71,237 10,436 Retained earnings 80,462 287,528 42,121 Accumulated
other comprehensive loss (73,810) (72,523) (10,624) Total CNinsure
Inc. shareholders' equity 1,751,648 1,896,548 277,834
Noncontrolling interests(2) 94,423 187,018 27,397 Total
shareholders' equity 1,846,071 2,083,566 305,231 Total liabilities
and shareholders' equity 2,046,515 2,318,033 339,579 CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations (In
thousands, except for shares and per share and per ADS data) For
The Three Months Ended September 30, 2008(3) (As Adjusted) 2009
2009 RMB RMB US$ Net revenues: Commissions and fees 210,577 297,680
43,609 Other service fees 414 125 18 Total net revenues 210,991
297,805 43,627 Operating costs and expenses: Commissions and fees
(110,322) (139,707) (20,466) Selling expenses (4,141) (14,799)
(2,168) General and administrative expenses (39,739) (55,576)
(8,142) Total operating costs and expenses (154,202) (210,082)
(30,776) Net income from operations 56,789 87,723 12,851 Other
income, net: Investment income -- -- -- Interest income 12,851
7,528 1,103 Interest expense (29) (1) - Others, net 135 78 11
Changes in fair value of contingent consideration payables -- -- --
Net income before income taxes 69,746 95,328 13,965 Income tax
expense (16,385) (21,350) (3,128) Share of loss of an affiliated
company (86) (10) (1) Net income 53,275 73,968 10,836 Less: Net
income (loss) attributable to the noncontrolling interests 1,069
(2,955) (433) Net income attributable to the Company's shareholders
52,206 76,923 11,269 For The Three Months Ended September 30,
2008(3) (As Adjusted) 2009 2009 RMB RMB US$ Net income per share:
Basic 0.057 0.084 0.012 Diluted 0.057 0.082 0.012 Net income per
ADS: Basic 1.144 1.686 0.247 Diluted 1.144 1.641 0.240 Shares used
in calculating net income per share and ADS: Basic 912,497,726
912,497,726 912,497,726 Diluted 912,497,726 937,397,373 937,397,373
For The Nine Months Ended September 30, 2008(3) (As Adjusted) 2009
2009 RMB RMB US$ Net revenues: Commissions and fees 561,757 798,873
117,031 Other service fees 700 484 71 Total net revenues 562,457
799,357 117,102 Operating costs and expenses: Commissions and fees
(290,727) (402,731) (58,998) Selling expenses (11,105) (34,157)
(5,004) General and administrative expenses (100,450) (146,437)
(21,452) Total operating costs and expenses (402,282) (583,325)
(85,454) Net income from operations 160,175 216,032 31,648 Other
income, net: Investment income -- 18,905 2,769 Interest income
36,553 26,103 3,824 Interest expense (66) (4) (1) Others, net 127
1,035 152 Changes in fair value of contingent consideration
payables -- (5,946) (871) Net income before income taxes 196,789
256,125 37,521 Income tax expense (46,755) (67,289) (9,858) Share
of loss of an affiliated company (1) (37) (5) Net income 150,033
188,799 27,658 Less: Net income (loss) attributable to the
noncontrolling interests 2,156 (18,267) (2,676) Net income
attributable to the Company's shareholders 147,877 207,066 30,334
For The Nine Months Ended September 30, 2008(3) (As Adjusted) 2009
2009 RMB RMB US$ Net income per share: Basic 0.162 0.227 0.033
Diluted 0.162 0.224 0.033 Net income per ADS: Basic 3.241 4.538
0.665 Diluted 3.241 4.476 0.656 Shares used in calculating net
income per share and ADS: Basic 912,497,726 912,497,726 912,497,726
Diluted 912,497,726 925,236,583 925,236,583 (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 RMB6.8262 to US$1.00, the effective
noon buying rate as of September 30, 2009 in The City of New York
for cable transfers of RMB as set forth in the H.10 weekly
statistical release of the Federal Reserve Board. (2) Effective
from January 1, 2009, the Company adopted Financial Accounting
Standards Board (FASB) Accounting Standards Codification 810 ("ASC
810") Non-controlling Interests, (formerly FASB Statement ("SFAS")
No. 160, Non-controlling Interests in Consolidated Financial
Statements). As a result, the presentation and disclosure
requirements had applied retrospectively for all periods presented,
requires noncontrolling interests to be separately presented as a
component of stockholders' equity on the consolidated balance
sheets. The balance sheet data as of December 31, 2008 were
extracted from the Form 20-F for the year ended December 31, 2008,
as adjusted to give the effect of the adoption of FASB ACS 810. (3)
Amounts were extracted from the current report on Form 6-K filed on
November 25, 2008, as adjusted to give the effect of the adoption
of SFAS ACS 810, Non-controlling Interests, (formerly SFAS No.
160). DATASOURCE: CNinsure Inc. CONTACT: Oasis Qiu, Investor
Relations Manager, +86-20-6122-2777 x850, Web site:
http://www.corpasia.net/us/CISG/irwebsite/index.php?mod=event
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