CNinsure Announces Non-cash Intangible Assets and Goodwill Impairment Charge in Fourth Quarter 2011
February 23 2012 - 8:53AM
CNinsure Inc. (Nasdaq:CISG) ("CNinsure" or the "Company"), a
leading independent insurance intermediary company operating in
China, today announced that it expects to record a non-cash
impairment charge in the range of RMB800 million to RMB1,181
million for intangible assets and goodwill in the fourth quarter of
2011, based on preliminary results of the Company's intangible
assets impairment assessment and annual goodwill impairment test,
in accordance with Accounting Standards Codification 350,
Intangibles - Goodwill and Other. The above charge is an estimate
subject to the completion of the Company's impairment assessments.
The intangible asset and goodwill impairment charge reflects a
material decline in the fair value of the Company as of December
31, 2011 and the expected adverse impact of the overall economic
uncertainties in China, growth slowdown within the Chinese
insurance market and the Company's strategic business transition on
its earnings in the next two to three years.
The Company does not expect the non-cash impairment charge to
have an adverse impact on its normal business operations, cash
position or cash flows from operating activities.
About CNinsure Inc.
CNinsure is a leading independent insurance intermediary company
operating in China. CNinsure's distribution network reaches many of
China's most 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. 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, 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 February 23, 2012, 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.
CONTACT: Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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