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
first quarter ended March 31, 2011.(1)
Financial Highlights:
Highlights for First Quarter 2011
- Total net revenues: RMB313.7 million (US$47.9 million),
representing an increase of 28.3% from the corresponding period of
2010.
- Operating Income: RMB88.7 million (US$13.6 million),
representing an increase of 33.8% from the corresponding period of
2010.
- Net income from continuing operations: RMB80.1 million (US$12.2
million), representing an increase of 23.1% from the corresponding
period of 2010. After incorporating net income from discontinued
operations(2) of RMB157.3 million (US$24.0 million), total net
income was RMB237.4 million (US$36.3 million), representing an
increase of 240.0% from the corresponding period of 2010.
- Excluding net income from discontinued operations, investment
income incurred by business combination achieved in stages, net of
tax and share-based compensation expense, adjusted net income
attributable to the Company's shareholders (non-GAAP): RMB81.1
million (US$ 12.4 million), representing an increase of 36.4% from
the corresponding period of 2010.
- Basic and diluted net income per American Depositary Share
("ADS"): RMB4.796 (US$0.732) and RMB4.693 (US$0.717), respectively,
representing an increase of 224.9% and 228.4%, respectively, from
the corresponding period of 2010. -- Basic and diluted net income
per ADS from continuing operations: RMB1.665 (US$0.254) and
RMB1.629 (US$0.249), respectively, representing an increase of
21.3% and 22.6%, respectively, from the corresponding period of
2010. -- Basic and diluted net income per ADS from discontinued
operations: RMB3.131 (US$0.478) and RMB3.064 (US$0.468),
respectively, representing an increase of 2,913.7% and 2,945.8%,
respectively, from the corresponding period of 2010.
Commenting on the first quarter financial results, Mr. Yinan Hu,
CNinsure's chairman and chief executive officer, stated, "Despite a
slower insurance sector growth, the Company continued to deliver
solid results, with our property and casualty ("P&C") insurance
business and life insurance business, in particular, growing 31.7%
and 35.0% year over year, respectively, in terms of net revenues in
the first quarter of 2011.
"First quarter of 2011 kicked off a year of internal
restructuring for the Company, with a focus on streamlining
operations, unifying corporate culture, optimizing profit models
and strengthening organization development at subsidiary levels. We
sold Datong to concentrate our resources on developing other life
insurance business units. Meanwhile, we finalized our strategic
plan for the development of e-commerce insurance business in the
next three years in an effort to explore the fast-growing
e-commerce insurance market in China. In addition, we established
one affiliated insurance agency with national operating license and
are in the process of establishing another one with a goal to
integrate our P&C and life insurance subsidiaries in due
course.
"We still see tremendous opportunities in the burgeoning
financial services market in China. I believe that the internal
restructuring will place the Company on a more solid base for
future business expansion. Currently, we have built seven profit
centers and are committed to building a three-dimensional
distribution structure that will encompass online sales,
telemarketing and on-the-ground sales force. With our capital
strength and leading position in the professional insurance
intermediary sector, we are well prepared to capitalize on the
opportunities and turn CNinsure's long-term vision into
reality."
Financial Results for the
First Quarter Ended
March
31,
2011
Total net revenues for the first quarter ended March 31, 2011
were RMB313.7 million (US$47.9 million), representing an increase
of 28.3% from RMB244.5 million for the corresponding period of
2010. The increase was primarily driven by (i) the growth of the
sales volume and commission rate of the property and casualty
insurance business and (ii) the growth of renewal life insurance
policies.
Total operating costs and expenses were RMB225.0 million
(US$34.4 million) for the first quarter of 2011, representing an
increase of 26.3% from RMB178.2 million for the corresponding
period of 2010.
Commissions and fees expenses were RMB153.5 million (US$23.4
million) for the first quarter of 2011, representing an increase of
30.2% from RMB117.9 million for the corresponding period of 2010.
The increase was primarily due to sales growth and largely tracked
the increase in net revenues from commissions and fees.
Selling expenses were RMB18.7 million (US$2.9 million) for the
first quarter of 2011, representing an increase of 60.2% from
RMB11.7 million for the corresponding period of 2010, primarily due
to sales growth and increased headcount and salary in sales
outlets.
General and administrative expenses were RMB52.8 million (US$8.1
million) for the first quarter of 2011, representing an increase of
8.7% from RMB48.6 million for the corresponding period of 2010. The
increase was primarily attributable to the following:
(1) an increase of 107.4% in amortization of intangible assets
from RMB3.3 million for the first quarter of 2010 to RMB6.7 million
(US$1.0 million) for the first quarter of 2011, largely as a result
of the acquisitions made since the second quarter of 2010;
(2) an increase of 72.7% in depreciation of fixed assets from
RMB3.0 million for the first quarter of 2010 to RMB5.2 million
(US$0.8 million) for the first quarter of 2011, largely as a result
of the operation of the upgraded IT system in more affiliated
entities in the first quarter of 2011;
(3) an increase of 22.8% in payroll expense from RMB18.2 million
for the first quarter of 2010 to RMB22.3 million (US$3.4 million)
for the first quarter of 2011, largely as a result of the raise in
salary for employees starting from the first quarter of 2011.
This increase in the general and administrative expenses was
offset by a decrease of 154.1% in share-based compensation expenses
from RMB4.5 million for the first quarter of 2010 to a credit of
RMB2.5 million (negative US$0.4 million) for the first quarter of
2011, as a result of stock option forfeiture as various directors,
officers and employees failed to meet certain key performance
targets in 2010.
As a result of the foregoing factors, operating income was
RMB88.7 million (US$13.6 million) for the first quarter of 2011,
representing an increase of 33.8% from RMB66.3 million for the
corresponding period of 2010. Operating margin was 28.3% for the
first quarter of 2011, compared to 27.1% for the corresponding
period of 2010.
Interest income for the first quarter of 2011 was RMB8.7 million
(US$1.3 million), representing an increase of 39.6% from RMB6.2
million for the corresponding period of 2010.
Income tax expense for the first quarter of 2011 was RMB20.4
million (US$3.1 million), representing a decrease of 4.3% from
RMB21.3 million for the corresponding period of 2010. The effective
income tax rate applicable to the Company was 20.7% for the first
quarter of 2011, compared to 25.7% for the corresponding period of
2010. The decrease was primarily attributable to a tax holiday
enjoyed by an affiliated subsidiary of the Company since the second
quarter of 2010.
Net income from continuing operations was RMB80.1 million
(US$12.2 million) for the first quarter of 2011, representing an
increase of 23.1% from RMB65.1 million for the corresponding period
of 2010. Net margin for the continuing operations was 25.5% for the
first quarter of 2011 compared to 26.6% for the corresponding
period of 2010.
Net income from discontinued operations was RMB157.3 million
(US$24.0 million) for the first quarter of 2011, mainly
representing a disposal gain from the sale of Datong. Net income
from discontinued operations was RMB4.7 million for the first
quarter of 2010, representing net income from operations of Datong
contributed to the group.
Total net income was RMB237.4 million (US$36.3 million) for the
first quarter of 2011, representing an increase of 240.0% from
RMB69.8 million for the corresponding period of 2010.
Net income attributable to the Company's shareholders was
RMB240.8 million (US$36.8 million) for the first quarter of 2011,
representing an increase of 257.6% from RMB67.3 million for the
corresponding period of 2010.
Excluding net income from discontinued operations, investment
income incurred by business combination achieved in stages, net of
tax and share-based compensation expenses, net income attributable
to the Company's shareholders (non-GAAP) was RMB81.1 million
(US$12.4 million) for the first quarter of 2011, representing an
increase of 36.4% from RMB59.5 million from the corresponding
period of 2010.
Basic net income per ADS from continuing operations was RMB1.665
(US$0.254) for the first quarter of 2011, representing an increase
of 21.3% from RMB1.372 for the corresponding period of 2010. Fully
diluted net income per ADS from continuing operations was RMB1.629
(US$0.249) for the first quarter of 2011, representing an increase
of 22.6% from RMB1.328 from the corresponding period of 2010.
Basic net income per ADS from discontinued operations was
RMB3.131 (US$0.478) for the first quarter of 2011, representing an
increase of 2,913.7% from RMB0.104 for the corresponding period of
2010. Fully diluted net income per ADS from discontinued operations
was RMB3.064 (US$0.468) for the first quarter of 2011, representing
an increase of 2,945.8% from RMB0.101 from the corresponding period
of 2010.
Basic net income per ADS was RMB4.796 (US$0.732) for the first
quarter of 2011, representing an increase of 224.9% from RMB1.476
for the corresponding period of 2010. Fully diluted net income per
ADS was RMB4.693 (US$0.717) for the first quarter of 2011,
representing an increase of 228.4% from RMB1.429 for the
corresponding period of 2010.
Fully diluted non-GAAP net income per ADS was RMB1.581
(US$0.241), representing an increase of 25.3% from RMB1.262 for the
corresponding period of 2010.
As of March 31, 2011, the Company had RMB2.3 billion (US$351.5
million) in cash and cash equivalents.
Recent
Developments:
- On May 20, 2011, the Company's Board of Directors approved the
establishment of a trust fund for employees and sales agents to
invest in investment products, including but not limited to, the
Company's stocks on the open market, the shares of the Company's
affiliated subsidiaries, or low risk wealth management
products. The trust fund will be under custody by a third
party custodian and will be funded by advances from the Company.
Such advances will be settled by employees and sales agents, who
are the beneficiaries of the trust fund, over the benefit period.
- On May 16, 2011, the Company announced that its Board of
Directors had received a preliminary non-binding proposal letter
dated May 14, 2011, from TPG Asia V MU, Inc., Kingsford Resources
Limited, a company controlled by Mr. Yinan Hu, chairman of the
Board of Directors and chief executive officer of the Company, and
entities affiliated with him (collectively, the "Founder"), and CDH
Inservice Limited ("CDH"), to acquire all of the outstanding
ordinary shares of the Company, other than certain ADSs or ordinary
shares held by the Founder and CDH, in a going private transaction
for $19.00 per ADS, or $0.95 per ordinary share, in cash, subject
to certain conditions.
- On April 29, 2011, CNinsure entered into a strategic
partnership agreement with Tianping Auto Insurance Co., Ltd.,
pursuant to which, both parties agree to work closely on auto
insurance distribution, outsourcing of claims adjusting services
and other business such as online product distribution.
- On April 28, 2011, the Company's board of directors approved
the grant of options to purchase an aggregate of 28,400,000
ordinary shares of the Company to various directors, officers and
employees. The exercise price of these options is US$0.734 per
ordinary share, equal to the closing price of the Company's ADS on
the Nasdaq Global Select Market at the grant date (after adjusting
for the 20 ordinary shares to 1 ADS ratio). The options granted
will vest over a four-year period starting from March 31, 2012.
- On April 19, 2011, Fanhua Shiji Insurance Sales Co., Ltd
("Fanhua Shiji"), which will be engaged in the distribution of
property & casualty insurance business, was granted an
insurance agency license for nation-wide operation by the China
Insurance Regulatory Commission. Fanhua Shiji, which is still in
the process of completing the procedures for its establishment,
will be indirectly wholly-owned by CNinsure through its affiliated
subsidiaries. It will have a registered capital of RMB50 million
and headquartered in Shenzhen. Previously, CNinsure obtained a
nationwide operating license for one affiliated life insurance
agency which is indirectly wholly owned by CNinsure through its
affiliated subsidiaries.
- As of March 31, 2011, CNinsure's distribution and service
network consisted of 534 sales and services outlets operating in 23
provinces, compared to 519 sales and service outlets(3) operating
in 23 provinces as of March 31, 2010. CNinsure had 44,253 sales
agents and 1, 367 professional claims adjustors as of March 31,
2011, compared to 36,014 sales agents(4) and 1,421
professional claims adjustors as of March 31, 2010.
- On March 25, 2011, CNinsure completed the sale of its 55%
equity interest in Datong to Winner Sight Global Limited, an
affiliated entity of Warburg Pincus LLC. The cash consideration for
the sale was approximately USD63.69 million, representing a P/E
multiple of 26 times based on Datong's net profit in 2010. In
addition, Datong agreed to pay a cash dividend of RMB10 million
exclusively to CNinsure.
- On March 25, 2011, CNinsure announced that it plans to invest a
total of RMB500 million from 2011 to 2013 to build up its
e-commerce insurance platform. Approximately 80% of the investment
will be spent on marketing and advertising, and approximately 20%
on the construction of the IT infrastructure and call center.
Currently, the platform is under construction which has incurred
expenses amounting to RMB1.6 million expenses, primarily related to
research and development ("R&D") and payroll for the e-commerce
insurance platform R&D professionals.
- Net revenues from commissions and fees derived from the
property and casualty insurance, life insurance and claims
adjusting businesses for the first quarter of 2011 each contributed
66.0%, 21.5% and 12.5% of the Company's total net revenues,
respectively, compared to 64.3%, 20.5%, 15.2%(5) in the
corresponding period of 2010.
- On December 3, 2010, CNinsure's board of directors approved a
corporate share repurchase program, authorizing up to US$100
million in ADS repurchases by June 30, 2011. Currently, the Company
had repurchased 486,370 ADS for an aggregate price of approximately
US$7.7 million on the open market.
Business Outlook
CNinsure expects its net income attributable to the Company's
shareholders, excluding investment income incurred by business
combination achieved in stages and the estimated strategic spending
on e-commerce insurance, to grow by approximately 18% in the second
quarter 2011 compared to the corresponding period of 2010. 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 2011 results at
Time: |
9:00 pm Eastern Daylight Time on May 23,
2011 |
|
or 9:00 am Beijing/Hong Kong Time on May 24,
2011 |
The dial-in numbers: |
|
United States: |
+1-866-549-1292 |
United Kingdom: |
0808-234-6305 |
Canada: |
+1-866-8691-825 |
Singapore: |
800-852-3576 |
Taiwan: |
0080-185-6004 |
Hong Kong & Other Areas: |
+852-3005-2050 |
China (Mainland): |
400-681-6949 |
Password: 885507# |
|
A replay of the call will be
available for 30 days as follows: |
|
+852-3005-2020 (Hong Kong &
other areas) |
|
PIN number: 142589# |
|
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 May 23, 2011, and CNinsure 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 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.
About Non-GAAP Financial Measures
In addition to CNinsure's consolidated financial results under
GAAP, the Company also provides non-GAAP financial measures,
including 1) non-GAAP net income attributable to shareholders,
representing net income attributable to shareholders excluding net
income from discontinued operations, net of tax, investment income
incurred by business combination achieved in stages, net of tax and
share-based compensation expenses, and 2) diluted non-GAAP net
income per ADS. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP. For more information on these non-GAAP
financial measures, please see the tables captioned
"Reconciliations of GAAP financial measures to non-GAAP financial
measures" set forth at the end of this release.
The Company believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
the Company's performance and when planning and forecasting future
periods. A limitation of using these non-GAAP financial measures is
that these non-GAAP measures exclude the net income from
discontinued operations, net of tax and share-based compensation
expenses in the first quarter of 2011 and the corresponding period
of 2010, and investment income net of tax in the first quarter of
2010, which were significant in the first quarter of 2011 and the
corresponding period of 2010.
(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
RMB6.5483 to US$1.00, the effective noon buying rate as of March
31, 2011 in The City of New York for cable transfers of RMB as set
forth in H.10 weekly statistical release of the Federal Reserve
Board.
(2) Following the sale of Beijing Datong Investment
Management Co., Ltd. ("Datong"), a company primarily engaged
in the distribution of life insurance products, to Winner Sight
Global Limited, an affiliated entity of Warburg Pincus LLC, the
Company is required to present its financial results on a
continuing and discontinued basis. Profits and losses related to
Datong are presented as discontinued operations while profits and
losses for the remaining business are presented as continuing
operations.
(3) Excluding the sales outlets of Datong.
(4) Excluding the sales agents of Datong.
(5) Excluding the operations of Datong;
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets |
(In
thousands) |
|
|
As of December 31, |
As of
March
31, |
As of
March
31, |
|
2010 |
2011 |
2011 |
|
RMB |
RMB |
US$ |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
1,924,884 |
2,301,771 |
351,507 |
Restricted cash |
9,177 |
7,681 |
1,173 |
Short term investment |
— |
45,492 |
6,947 |
Accounts receivable, net |
243,175 |
155,883 |
23,805 |
Insurance premium receivables |
92 |
424 |
65 |
Other receivables |
67,034 |
57,612 |
8,798 |
Deferred tax assets |
5,691 |
3,785 |
578 |
Amounts due from related parties |
40,000 |
— |
— |
Other current assets |
12,372 |
12,202 |
1,863 |
Total current assets |
2,302,425 |
2,584,850 |
394,736 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant, and equipment, net |
102,175 |
87,308 |
13,333 |
Goodwill |
1,154,373 |
1,037,985 |
158,512 |
Intangible assets, net |
145,653 |
123,596 |
18,875 |
Deferred tax assets |
6,755 |
1,808 |
276 |
Investment in affiliates |
139,116 |
141,363 |
21,588 |
Other non-current assets |
3,959 |
3,708 |
566 |
Total non-current
assets |
1,552,031 |
1,395,768 |
213,150 |
Total assets |
3,854,456 |
3,980,618 |
607,886 |
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets-(Continued) |
|
(In
thousands) |
|
|
As of December 31, |
As of
March
31, |
As of
March
31, |
|
2010 |
2011 |
2011 |
|
RMB |
RMB |
US$ |
LIABILITIES AND EQUITY: |
|
Current liabilities: |
|
|
|
Accounts payable (including accounts payable
of the consolidated variable interest entities ("VIEs") without
recourse to CNinsure Inc. of RMB75,285 and RMB66,803
(US$10,202) as of December 31, 2010 and March 31, 2011,
respectively) |
89,573 |
72,420 |
11,059 |
Insurance premium payables (including
insurance premium payables of the consolidated VIEs without
recourse to CNinsure Inc. of RMB1,364 and RMB1,800 (US$275) as
of December 31, 2010 and March 31, 2011,
respectively) |
1,364 |
1,800 |
275 |
Other payables and accrued expenses
(including other payables and accrued expense of the
consolidated VIEs without recourse to CNinsure Inc. of
RMB52,725 and RMB39,613 (US$6,049) as of December
31, 2010 and March 31, 2011, respectively) |
93,460 |
79,057 |
12,073 |
Accrued payroll (including accrued payroll
of the consolidated VIEs without recourse to CNinsure Inc. of
RMB27,158 and RMB22,101 (US$3,375) as of December
31, 2010 and March 31, 2011, respectively) |
31,237 |
27,188 |
4,152 |
Income tax payable (including income tax
payable of the consolidated of VIEs without recourse to
CNinsure Inc. of RMB32,134 and RMB20,531 (US$3,135) as
of December 31, 2010 and March 31, 2011,
respectively) |
34,927 |
27,280 |
4,166 |
Amounts due to related parties (including
amounts due to related parties of the consolidated of VIEs
without recourse to CNinsure Inc. of RMB7,800 and Nil as of
December 31, 2010 and March 31, 2011, respectively) |
37,800 |
— |
— |
Total current
liabilities |
288,361 |
207,745 |
31,725 |
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets-(Continued) |
|
(In
thousands) |
|
|
As of December 31, |
As of March
31, |
As of March
31, |
|
2010 |
2011 |
2011 |
|
RMB |
RMB |
US$ |
Non-current
liabilities: |
|
|
|
Other tax liabilities (including non-current
portion of other tax liabilities of the consolidated VIEs
without recourse to CNinsure Inc. of Nil and Nil as
of December 31, 2010 and March 31, 2011,
respectively) |
5,519 |
8,569 |
1,309 |
Deferred tax liabilities (including
non-current portion of deffered tax liabilities of the consolidated
VIEs without recourse to CNinsure Inc. of Nil and Nil
as of December 31, 2010 and March 31, 2011,
respectively) |
43,513 |
38,112 |
5,820 |
Total
non-current liabilities |
49,032 |
46,681 |
7,129 |
Total liabilities |
337,393 |
254,426 |
38,854 |
|
|
|
|
Ordinary shares |
7,649 |
7,642 |
1,167 |
Additional paid-in capital |
2,261,849 |
2,249,638 |
343,545 |
Statutory reserves |
136,681 |
133,147 |
20,333 |
Retained earnings |
738,165 |
982,543 |
150,046 |
Accumulated other comprehensive loss |
(83,360) |
(85,031) |
(12,985) |
Total CNinsure Inc. shareholders'
equity |
3,060,984 |
3,287,939 |
502,106 |
Noncontrolling interests |
456,079 |
438,253 |
66,926 |
Total equity |
3,517,063 |
3,726,192 |
569,032 |
Total liabilities and
equity |
3,854,456 |
3,980,618 |
607,886 |
|
CNINSURE
INC. |
|
Unaudited
Condensed Consolidated Statements of Operations |
(In thousands, except
for shares and per share
data) |
|
|
For The Three Months
Ended |
|
|
|
March31, |
|
2010 |
2011 |
2011 |
|
RMB |
RMB |
US$ |
Net revenues: |
|
|
|
Commissions and fees |
244,471 |
313,374 |
47,856 |
Other service fees |
29 |
352 |
54 |
Total net revenues |
244,500 |
313,726 |
47,910 |
Operating costs and
expenses: |
|
|
|
Commissions and fees |
(117,937) |
(153,496) |
(23,441) |
Selling expenses |
(11,653) |
(18,670) |
(2,851) |
General and administrative expenses |
(48,596) |
(52,827) |
(8,067) |
Total operating costs and
expenses |
(178,186) |
(224,993) |
(34,359) |
Income from
operations |
66,314 |
88,733 |
13,551 |
Other income, net: |
|
|
|
Investment income |
10,230 |
— |
— |
Interest income |
6,215 |
8,677 |
1,325 |
Others, net |
104 |
853 |
130 |
Income
from continuing operations before income
taxes and income of affiliates and discontinued
operations |
82,863 |
98,263 |
15,006 |
Income tax expense |
(21,289) |
(20,375) |
(3,111) |
Share of income of affiliates |
3,500 |
2,247 |
343 |
Net income
from continuing operations |
65,074 |
80,135 |
12,238 |
Net income from discontinued
operations, net of tax |
4,741 |
157,253 |
24,014 |
Net income |
69,815 |
237,388 |
36,252 |
Less: net gain (loss) attributable to
noncontrolling interests |
2,466 |
(3,456) |
(528) |
Net income
attributable to the Company's shareholders |
67,349 |
240,844 |
36,780 |
|
CNINSURE INC. |
Unaudited
Condensed Consolidated Statements of
Operations-(Continued) |
(In thousands, except
for shares and per share data) |
|
|
For The Three Months
Ended |
|
|
|
March
31, |
|
2010 |
2011 |
2011 |
|
RMB |
RMB |
US$ |
Net income per share: |
|
|
|
|
|
|
|
Basic: |
|
|
|
Net income from continuing
operations |
0.069 |
0.083 |
0.013 |
Net income from discontinued
operations |
0.005 |
0.157 |
0.024 |
Net income |
0.074 |
0.240 |
0.037 |
Diluted: |
|
|
|
|
|
|
|
Net income from continuing
operations |
0.066 |
0.082 |
0.012 |
Net income from discontinued
operations |
0.005 |
0.153 |
0.024 |
Net income |
0.071 |
0.235 |
0.036 |
Net income per ADS: |
|
|
|
Basic: |
|
|
|
|
|
|
|
Net income from continuing
operations |
1.372 |
1.665 |
0.254 |
Net income from discontinued
operations |
0.104 |
3.131 |
0.478 |
Net income |
1.476 |
4.796 |
0.732 |
Diluted: |
|
|
|
|
|
|
|
Net income from continuing
operations |
1.328 |
1.629 |
0.249 |
Net income from discontinued
operations |
0.101 |
3.064 |
0.468 |
Net income |
1.429 |
4.693 |
0.717 |
|
|
|
|
Shares used in calculating net income
per share: |
|
|
|
Basic |
912,497,726 |
1,004,365,726 |
1,004,365,726 |
Diluted |
942,535,742 |
1,026,497,371 |
1,026,497,371 |
|
CNINSURE INC. |
Unaudited
Condensed Consolidated Statements of
Cash Flow |
(In
thousands) |
|
|
For The Three
Months Ended March 31, |
|
2010 |
2011 |
2011 |
|
RMB |
RMB |
US$ |
OPERATING ACTIVITIES |
|
|
|
Net income |
69,815 |
237,388 |
36,252 |
Adjustments to reconcile net income
to net cash generated from operating activities: |
|
|
|
Depreciation |
6,065 |
7,208 |
1,101 |
Amortization of acquired intangible
assets |
3,577 |
6,741 |
1,029 |
Allowance for doubtful receivables |
780 |
(1,243) |
(190) |
Compensation expenses associated with stock
options |
4,542 |
(2,457) |
(375) |
Loss (gain) on disposal of property, plant
and equipment |
(90) |
33 |
5 |
Gain on disposal of subsidiaries |
— |
(157,253) |
(24,014) |
Investment income |
(10,230) |
— |
— |
Share of income of affiliates |
(3,500) |
(2,247) |
(343) |
Deferred taxes |
(293) |
(22,111) |
(3,377) |
Changes in operating assets and
liabilities |
(16,535) |
51,949 |
7,933 |
Net cash generated
from operating activities |
54,131 |
118,008 |
18,021 |
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Addition in other investments |
(325) |
(45,242) |
(6,909) |
Purchase of property, plant and
equipment |
(3,590) |
(2,210) |
(337) |
Proceeds from disposal of property and
equipment |
315 |
116 |
18 |
Acquisition of subsidiaries, net of cash
acquire |
(46,297) |
— |
— |
Repayments to related parties |
(17,231) |
— |
— |
Decrease (increase) in restricted cash |
(9,337) |
1,496 |
228 |
Proceeds from disposal of subsidiaries, net
of cash |
(2,527) |
394,463 |
60,239 |
Net cash generated
from (used in) investing
activities |
(78,992) |
348,623 |
53,239 |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Payment for contingent consideration |
(85,380) |
(100,000) |
(15,271) |
Acquisition of additional interest in a
subsidiary |
(2,410) |
— |
— |
Increase in capital injection by
noncontrolling interests |
800 |
1,687 |
258 |
Repayments from related parties |
126 |
20,000 |
3,054 |
Proceeds on exercise of stock options |
— |
3,962 |
605 |
Repurchase of ordinary shares |
— |
(13,722) |
(2,096) |
Net cash used in financing
activities |
(86,864) |
(88,073) |
(13,450) |
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
(111,725) |
378,558 |
57,810 |
Cash and cash equivalents at
beginning of period |
1,457,890 |
1,924,884 |
293,952 |
Effect of exchange rate changes on cash and
cash equivalents |
16 |
(1,671) |
(255) |
Cash and cash equivalents at
end of period |
1,346,181 |
2,301,771 |
351,507 |
|
|
|
|
Interest paid |
— |
— |
— |
Income taxes paid |
21,969 |
36,669 |
5,600 |
|
CNinsure
Inc. |
Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures |
(In RMB in thousands,
except shares and per share
data) |
|
|
|
ThreeMonths
Ended March
31,
2010 |
|
|
GAAP |
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
Net income attributable to the
Company's shareholders |
67,349 |
(7,673) |
(4,741) |
4,542 |
59,477 |
Shares used in calculating
diluted net income per ADS |
942,535,742 |
-- |
-- |
-- |
942,535,742 |
Diluted net income per
ADS |
1.429 |
(0.163) |
(0.101) |
0.096 |
1.261 |
|
|
|
|
|
|
|
|
ThreeMonths
Ended March
31,
2011 |
|
|
GAAP |
|
|
Non-GAAP |
|
|
|
|
|
Net income attributable to the
Company's shareholders |
240,844 |
(157,252) |
(2,457) |
81,135 |
Shares used in calculating
diluted net income per ADS |
1,026,497,371 |
-- |
-- |
1,026,497,371 |
Diluted net income per
ADS |
4.693 |
(3.064) |
(0.048) |
1.581 |
|
Investment income incurred by
business combination achieved in stages, net of tax; |
Net income from discontinued
operations income, net of tax; |
Share-based compensation
expense. |
CONTACT: Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2777 x 850
Email: qiusr@cninsure.net
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