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
fourth quarter and fiscal year ended December 31, 2012.1
Financial Highlights:
Highlights for Fourth Quarter 2012
- Total net revenues: RMB435.8 million (US$70.0
million), representing an increase of 4.1% from the corresponding
period in 2011.
- Operating income: RMB6.4
million (US$1.0 million), compared to operating loss of RMB1.0
billion for the corresponding period in 2011.
- Non-GAAP
operating
income: RMB19.3 million (US$3.1
million), which excluded share-based compensation expenses,
representing a decrease of 73.6% from the corresponding period of
2011. Non-GAAP operating income for the fourth quarter of 2011
excluded impairment losses on goodwill and intangible assets and
share-based compensation expenses.
- Net income attributable to the Company's
shareholders: RMB20.1 million (US$3.2 million), compared
to net loss attributable to the Company's shareholders of RMB718.6
million for the corresponding period of 2011.
- Non-GAAP net income attributable to the Company's
shareholders: RMB28.5 million (US$4.6 million), which
excluded share-based compensation expenses and refunds from the
selling shareholder of an acquired subsidiary, representing a
decrease of 62.6% from the corresponding period in 2011. Non-GAAP
net income attributable to the Company's shareholders for the
fourth quarter of 2011 excluded impairment losses on goodwill and
intangible assets, share-based compensation expenses,refunds from
the selling shareholder of certain acquired subsidiaries, and net
income from discontinued operations2.
- Basic and diluted net
income per ADS: RMB0.40 (US$0.06) and
RMB0.40 (US$0.06), compared to basic and diluted net loss per ADS
of RMB14.34 and RMB14.34 for the corresponding period in 2011
respectively.
- Non-GAAP basic and diluted
net income per ADS: RMB0.57 (US$0.09) and RMB0.57
(US$0.09), representing decreases of 62.5% and62.7% from the
corresponding period in 2011 respectively.
Highlights for Fiscal Year 2012
- Total net revenues: RMB1.6 billion (US$254.6
million), representing an increase of 4.6% from 2011.
- Operating income: RMB65.8
million (US$10.6 million), compared to operating loss of RMB748.8
million for 2011.
- Non-GAAP operating income: RMB132.7 million
(US$21.3 million), which excluded share-based compensation expenses
in 2012, representing a decrease of 64.7% from 2011. Non-GAAP
operating income for 2011 excluded impairment loss on goodwill and
intangible assets, share-based compensation expenses, and
professional fees relating to a non-binding going-private proposal
that was later withdrawn.
- Net income attributable to the
Company's shareholders: RMB130.5
million (US$20.9 million) compared to net loss attributable to the
Company's shareholders of RMB299.4 million for 2011.
- Non-GAAP net income attributable to the Company's
shareholders: RMB192.9 million (US$31.0 million), which
excluded share-based compensation expenses and refunds from the
selling shareholder of an acquired subsidiary, representing a
decrease of 47.5% from 2011. Non-GAAP net income attributable to
the Company's shareholders for 2011 excluded impairment losses on
goodwill and intangible assets, share-based compensation expenses,
profession fees relating to a non-binding going-private proposal
that was later withdrawn, refunds from the selling shareholder of
certain acquired subsidiaries and cash bonus received from the
Shenzhen municipal government, and net income from discontinued
operations.
- Basic and diluted net
income per ADS: RMB2.60 (US$0.42) and RMB2.60 (US$0.42),
compared to basic and diluted net loss per ADS of RMB5.97 and
RMB5.97 for 2011 respectively.
- Non-GAAP basic and diluted net income per ADS:
RMB3.85 (US$0.62) and RMB3.84 (US$0.62), respectively, representing
decreases of 47.5% and 47.7%, respectively, from 2011.
Commenting on the fourth quarter and fiscal year 2012 financial
results, Mr. Chunlin Wang, CNinsure's chief executive officer,
stated, "We are pleased that our top line for the fourth quarter
and full year of 2012 grew 4.1% and 4.6%, respectively, which were
above our expectations. We are also pleased that our gross margin
for the fourth quarter of 2012 was slightly improved over last
quarter. While maintaining our market position in the property and
casualty ("P&C") insurance business amidst a challenging market
environment, we are encouraged by the stellar performance of our
other business lines, such as the continued high persistency rate
of the term life insurance business, the strong growth of our
insurance brokerage business, and that our claims adjusting
business further gaining market shares, closing its gap with the
market top player.
"During 2012 we achieved many important milestones along the way
to our goal of incorporating more technology into our business.
These milestones included, among others, 1) the launch of CNpad,
our proprietary mobile sales support device, which aims at helping
our sales agents to serve their clients more effectively, 2)
enhancing our life insurance platform by broadening product
offerings to include financial products, expanding the market
presence of our life insurance distribution network in major cities
and strengthening our elite sales force, and 3) the establishment
of the sales service group company. Looking ahead to 2013, we will
continue to execute our growth strategies in order to create
long-term shareholder value."
Financial Results for the Fourth Quarter Ended December
31, 2012
Total net revenues were RMB435.8 million
(US$70.0 million) for the fourth quarter of 2012, representing an
increase of 4.1% from RMB418.6million for the corresponding period
in 2011, primarily due to increases in net revenues from our
"P&C" insurance and claims adjusting business segments. The
increase in the P&C business segment was mainly driven by
increases in commission rates received from insurance underwriters,
and the growth of the claims adjusting segment was mainly
attributable to an increase in claims relating to automobile
insurance. Net revenues from commissions and fees derived from the
P&C insurance, life insurance and claims adjusting businesses
for the fourth quarter of 2012 contributed 71.3%, 14.0% and 14.7%
of the Company's total net revenues, respectively, compared to
69.7%, 15.7% and 14.6%, respectively, for the corresponding period
in 2011.
Total operating costs and expenses were
RMB429.4 million (US$68.9 million) for the fourth quarter of 2012,
representing a decrease of 70.0% from RMB1.4billion for the
corresponding period of 2011.
Commissions and fees expenses were RMB311.8
million (US$50.0 million) for the fourth quarter of 2012,
representing an increase of 27.1% from RMB245.3 million for the
corresponding period of 2011. The increase was primarily due to an
increase in commissions paid to our sales agents within the P&C
segment as greater competition among P&C insurance companies
has driven up commission rates in the auto insurance market, and
increased competition, largely resulting from telemarketing by
other insurance companies, has pushed up our per policy acquisition
cost.
Selling expenses were RMB19.3 million (US$3.1
million) for the fourth quarter of 2012, representing a decrease of
2.8% from RMB19.9 million for the corresponding period in 2011.
General and administrative expenses were
RMB98.3 million (US$15.8 million) for the fourth quarter of 2012,
representing a decrease of 24.3% from RMB129.8 million for the
corresponding period in 2011. The decrease was primarily due to a
73.9% decrease in share-based compensation expenses, from RMB49.5
million for the fourth quarter of 2011 to RMB12.9 million (US$2.1
million) for the corresponding period in 2012. The large
Share-based compensation expenses for the fourth quarter of 2011
were mainly arisen from the cancellation of certain stock options
in November 2011.
Impairment loss on intangible assets and
goodwill was nil for the fourth quarter of 2012, as compared to
RMB1.0 billion for the corresponding period in 2011, which
reflected a material decline in the fair value of the Company as at
December 31, 2011 and the expected adverse impact of overall
economic uncertainties in China, growth slowdown within the Chinese
insurance market and our strategic business transition on its
earnings over the following two years.
As a result of the foregoing factors, income from
operations was RMB6.4 million (US$1.0 million) for the
fourth quarter of 2012, compared to loss from operations of RMB1.0
billion for the corresponding period in 2011.
Non-GAAP operating income, which excluded (1)
impairment losses on intangible assets and goodwill for the fourth
quarter of 2011 and (2) share-based compensation expenses for the
fourth quarter of 2012 and the corresponding period in 2011, was
RMB19.3 million (US$3.1 million) for the fourth quarter of 2012,
representing a decrease of 73.6% from RMB73.2 million for the
corresponding period in 2011.
Operating margin was 1.5% for the fourth
quarter of 2012, compared to negative 242.2% for the corresponding
period in 2011. Non-GAAP operating margin was 4.4% for the fourth
quarter of 2012, compared to 17.5% for the corresponding period in
2011.
Interest income was RMB20.1 million (US$3.2
million) for the fourth quarter of 2012, representing an increase
of 21.0% from RMB16.6 million for the corresponding period in 2011.
The increase in interest income was primarily due to (1) RMB1.0
million (US$0.2 million) in interest charged on the related parties
and (2) increases in interest-bearing bank balances from the
corresponding period in 2011.
Income tax expense was RMB9.5 million (US$1.5
million) for the fourth quarter of 2012, representing a decrease of
48.7% from RMB18.6 million for the corresponding period in 2011.
The decrease was primarily due to a decrease of taxable income in
the fourth quarter of 2012 from the corresponding period of 2011
and significant impairment losses on goodwill and intangible assets
in 2011 which was not tax-deductible, offset by an increase of the
preferential tax rate enjoyed by one of our subsidiaries from tax
exemption to 12.5% starting from January 2012.
Net income attributable to the Company's
shareholders was RMB20.1 million (US$3.2 million) for the
fourth quarter of 2012, compared to net loss attributable to the
Company's shareholders of RMB718.6 million for the corresponding
period in 2011.
Net margin was 4.6% for the fourth quarter of
2012 compared to negative171.7% for the corresponding period in
2011.
Non-GAAP net income attributable to the Company's
shareholders, which excluded(1) impairment losses on
goodwill and intangible assets for the fourth quarter of 2011, (2)
share-based compensation expenses for the fourth quarter of 2012
and the corresponding period in 2011,(3) refunds from the selling
shareholder of certain acquired subsidiaries for the fourth quarter
of 2012 and the corresponding period in 2011,and (4) net income
from discontinued operations for the fourth quarter of 2011, was
RMB28.5 million (US$4.6 million) for the fourth quarter of 2012,
representing a decrease of 62.6% from RMB76.0 million for the
corresponding period in 2011. Non-GAAP net margin
was 6.5% for the fourth quarter of 2012 compared to 18.2% for the
corresponding period in 2011.
Basic and diluted net
income per ADS was RMB0.40 (US$0.06) and RMB0.40
(US$0.06)for the fourth quarter of 2012 respectively, compared to
basic and diluted net loss per ADS of RMB14.34 and RMB14.34 for the
corresponding period in 2011 respectively.
Non-GAAP basic net income per ADS was RMB0.57
(US$0.09)for the fourth quarter of 2012, representing a decrease of
62.5% from RMB1.52 for the corresponding period in 2011.
Non-GAAP diluted net income per ADS was RMB0.57
(US$0.09) for the fourth quarter of 2012, representing a decrease
of 62.7% from RMB1.52 for the corresponding period in 2011.
As of December 31, 2012, the Company had RMB2.5 billion
(US$405.4 million) in cash and cash
equivalents.
Financial Results for the Year Ended December 31,
2012
Total net revenues for fiscal year 2012 were
RMB1.6 billion (US$254.6 million), representing an increase of 4.6%
from RMB1.5 billion in fiscal year 2011, which reflected the growth
of the P&C insurance and claims adjusting business segments.
The growth of the P&C insurance segment was primarily driven by
rising auto insurance commission rates, while the increase in
claims adjusting segment was mainly attributable to the growth in
an increase in claims relating to automobile insurance. Net
revenues from commissions and fees derived from the P&C
insurance, life insurance and claims adjusting businesses for
fiscal year 2012 contributed 68.9, 17.3% and 13.8% of the Company's
total net revenues, respectively, compared to 68.3%, 18.3% and
13.4%, respectively, for fiscal year 2011.
Total operating costs and expenses were RMB1.5
billion (US$244.0 million) for fiscal year 2012, representing a
decrease of 32.9% from RMB2.3 billion in fiscal year 2011.
Commissions and fees expenses were RMB1.1 billion (US$174.3
million) for fiscal year 2012, representing an increase of 36.3%
from RMB796.8 million in fiscal year 2011. The increase was
primarily due to an increase in commissions paid to our sales
agents within the P&C segment as greater competition among
P&C insurance companies has driven up commission rates in the
auto insurance market, and increased competition largely resulting
from telemarketing by other insurance companies has pushed up our
per policy acquisition cost.
Selling expenses were RMB78.4 million (US$12.6
million) for fiscal year 2012, representing an increase of 0.8%
from RMB77.8 million in fiscal year 2011.
General and administrative expenses were
RMB356.0 million (US$57.1 million) for fiscal year 2012,
representing an increase of 6.8% from RMB333.3 million in fiscal
year 2011. The increase was primarily due to the net effect of the
following items:
(1) 17.3% increase in share-based compensation expenses, from
RMB57.0 million for fiscal year 2011 to RMB66.9 million (US$10.7
million) for fiscal year 2012. Share-based compensation expenses
for fiscal year 2012 were mainly associated with options granted to
employees in March 2012, which were recognized on an accelerated
basis. Share-based compensation expenses for fiscal year 2011 were
mainly related to the cancellation of certain stock options in
November 2011;
(2) 11.4% increase in payroll expense from RMB100.7 million for
fiscal year 2011 to RMB112.2 million (US$18.0 million) for the
fiscal year 2012; offset by
(3) the recognition of approximately RMB10.0 million in
financial advisor and legal fees incurred in the third quarter of
2011 in relation to a non-binding going-private proposal which was
later withdrawn.
Impairment loss on intangible assets and
goodwill was nil for fiscal year 2012, as compared to RMB1.1
billion for the corresponding period in 2011, which reflected a
material decline in the fair value of the Company as at December
31, 2011 and the expected adverse impact of the overall economic
uncertainties in China, growth slowdown within the Chinese
insurance market and our strategic business transition on its
earnings over the following two years.
As a result of the foregoing factors, income from
operations was RMB65.8 million (US$10.6 million) for
fiscal year 2012, compared to loss from operation of RMB748.8
million in fiscal year 2011.
Operating margin was 4.2% for fiscal year 2012,
compared to negative 49.3% in fiscal year 2011.
Non-GAAP operating
margin was 8.4% for fiscal year
2012, compared to 24.8% in fiscal year 2011.
Non-GAAP operating income
which excluded (1) impairment losses on intangible assets and
goodwill for fiscal year of 2011, (2) share-based compensation
expenses for fiscal year 2012 and 2011, and (3) professional fees
relating to a non-binding going-private proposal that was later
withdrawn, was RMB132.7 million (US$21.3 million) for fiscal year
2012, representing a decrease of 64.7% from RMB375.8 million for
the corresponding period in 2011.
Interest income for fiscal year 2012 was
RMB90.3 million (US$14.5 million), representing an increase of
73.6% from RMB52.0 million in fiscal year 2011. The increase in
interest income was primarily due to (1) RMB10.3 million (US$1.7
million) in interest charged on the related parties for fiscal year
2012 and (2) increases in interest-bearing bank balances and bank
interest rates from fiscal year 2011.
Income tax expense for fiscal year 2012 was
RMB50.4 million (US$8.1 million), representing a decrease of 40.1%
from RMB84.0 million in fiscal year 2011. The decrease was
primarily due to a decrease of taxable income in 2012 from 2011 and
significant impairment losses on goodwill and intangible assets in
2011 which was not tax-deductible, offset by an increase of the
preferential tax rate enjoyed by one of our subsidiaries from tax
exemption to 12.5% starting from 2012.
Net income attributable to the
Company's shareholders was RMB130.5 million (US$20.9
million) for fiscal year 2012, compared to net loss attributable to
the Company's shareholders of RMB299.4 million for fiscal year
2011.
Net margin was 8.2% for fiscal year 2012,
compared to negative 19.7% for fiscal year 2011.
Non-GAAP net income attributable to the Company's
shareholders, which excluded (1) impairment losses on
goodwill and intangible assets, net of tax, for fiscal year 2011,
(2) share-based compensation expense for fiscal year 2011 and 2012,
(3) professional fees relating to a non-binding going-private
proposal that was later withdrawn for fiscal year 2011, (4) refunds
from the selling shareholders of certain acquired subsidiaries for
fiscal year 2011 and 2012, (5) cash bonus received from the
Shenzhen municipal government for fiscal year 2011 and (6) net
income from discontinued operations for fiscal year 2011, was
RMB192.9 million (US$31.0 million) for fiscal year 2012,
representing a decrease of 47.5% from RMB367.6 million for fiscal
year 2011.
Non-GAAP net margin was 12.2% for fiscal
year 2012, compared to 24.2% for fiscal year 2011.
Basic and diluted net
income per ADS was RMB2.60 (US$0.42) and RMB2.60 (US$0.42)
for fiscal year 2012 respectively, compared to basic and diluted
net loss per ADS of RMB5.97 and RMB5.97 for fiscal year 2011
respectively.
Non-GAAP basic net income per ADS was RMB3.85
(US$0.62) for fiscal year 2012, representing a decrease of 47.5%
from RMB7.33 for fiscal year 2011.
Non-GAAP diluted net income per ADS was RMB3.84
(US$0.62) for fiscal year 2012, representing a decrease of 47.7%
from RMB7.33 for fiscal year 2011.
Recent developments:
- On November 21, 2012, CNinsure was named Best Insurance
Intermediary of the Year 2012 at the Tenth China Financial
Billboard hosted by www.hexun.com.
- On November 5, 2012, CNinsure was awarded Best Insurance Agency
of the Year at Preferred Insurance Brand of China's Millions of
Middle-class Families Billboard of 2012 hosted by Money Week of the
21st Century, and was concurrently honored with the Culture
Management Innovation Award of the Year 2012 at the Seventh
Insurance Innovation Award of China.
- Following the approval of a share repurchase program
authorizing the Company to repurchase up to US$30 million of its
American depositary shares by its board of directors on November 6,
2012, CNinsure had repurchased a total of 193,165 ADSs,
representing 3,863,300 ordinary shares of the Company during fourth
quarter of 2012. In addition, Mr. Yinan Hu, Chairman of the board,
had repurchased 503,500 ADSs, representing 10,070,000 ordinary
shares of the Company during 2012.
- As of December 31, 2012, CNinsure's distribution and service
network consisted of 472 sales and services outlets operating in 26
provinces, compared to 605 sales and service outlets operating in
23 provinces as of December 31, 2011. CNinsure had 46,940 sales
agents and 1,287 professional claims adjustors as of December 31,
2012, compared to 46,137 sales agents and 1,474 professional claims
adjustors as of December 31, 2011.
Business Outlook
CNinsure expects its total net revenues to grow by approximately
5% for the first quarter of 2013 compared to the corresponding
period in 2012. This forecast reflects CNinsure's current view,
which is subject to change.
Conference Call
The Company will host a conference call to discuss the fourth
quarter and fiscal year 2012 results at
Time: |
8:00 pm Eastern Standard Time on March 4,
2013 or 9:00 am Beijing/Hong Kong Time on March 5, 2013 |
|
|
The dial-in numbers: |
|
|
|
United States |
1-855-500-8701 |
United Kingdom |
0800-015-9724 |
Canada |
1-855-757-1565 |
Taiwan |
0080-665-1951 |
Hong Kong |
852-3051-2745 |
China (Mainland) |
400-120-0654 |
Singapore & Other Areas |
+65-6723-9385 |
|
|
A replay of the call will be
available for 3 days by dialing the following number:
+61-2-8199-299 |
|
|
Conference ID #: 96102600 |
|
|
|
Additionally, a live and archived
web cast of this call will be available
at: http://ir.cninsure.net/events.cfm |
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, including the statements relating to the
Company's future financial and operating results, 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 March 5, 2013,
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 the Company's consolidated financial results
under GAAP, the Company also provides non-GAAP financial measures,
excluding net income from discontinued operations, share-based
compensation expenses, professional fees relating to the
non-binding going-private proposal that was later withdrawn,
impairment losses on intangible asset and goodwill and refunds from
selling shareholders of certain acquired subsidiaries and cash
bonus received from the Shenzhen municipal government. 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. One
limitation of using these non-GAAP financial measures is that they
exclude the items that were significant in the fourth quarter of
2012 and the corresponding period of 2011, and in fiscal year 2012
and 2011. Another is that items such as share-based compensation
expenses have been, and will continue to be, a significant
recurring factor in our business.
In light of the limitations, 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. We encourage investors and other
interested persons to review our financial information in its
entirety and not rely on a single financial measure. 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.
1This 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 RMB
6.2301 to US$1.00, the effective noon buying rate as of December
31, 2012 in The City of New York for cable transfers of RMB as set
forth in H.10 weekly statistical release of the Federal Reserve
Board.
2Following the sale of Beijing Datong Investment
Management Co., Ltd. ("Datong") on March 25, 2011, the Company was
required to present its financial results on both a continuing and
discontinued basis. Profits and losses related to Datong are
presented as discontinued operations while profits and losses for
the remaining business are presented as continuing operations.
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets |
(In
thousands) |
|
|
|
|
|
As of December 31, |
As of December 31, |
As of December 31, |
|
2011 |
2012 |
2012 |
|
RMB |
RMB |
US$ |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,222,160 |
2,525,618 |
405,390 |
Restricted cash |
10,076 |
10,871 |
1,745 |
Short term investments |
31,230 |
600 |
96 |
Accounts receivable, net |
166,363 |
196,244 |
31,499 |
Insurance premium receivables |
3 |
10 |
2 |
Other receivables |
82,736 |
86,565 |
13,895 |
Deferred tax assets |
7,369 |
4,942 |
793 |
Amounts due from related parties |
365,636 |
151,785 |
24,363 |
Other current assets |
12,841 |
17,265 |
2,771 |
Total current assets |
2,898,414 |
2,993,900 |
480,554 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant, and equipment,
net |
84,712 |
94,921 |
15,236 |
Goodwill and intangible assets,
net |
136,607 |
121,333 |
19,476 |
Deferred tax assets |
1,892 |
3,967 |
637 |
Investment in affiliates |
153,962 |
168,620 |
27,065 |
Other non-current assets |
5,409 |
18,048 |
2,897 |
Total non-current
assets |
382,582 |
406,889 |
65,311 |
Total assets |
3,280,996 |
3,400,789 |
545,865 |
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets-(Continued) |
(In
thousands) |
|
|
|
|
|
As of December 31, |
As of December 31, |
As of December
31, |
|
2011 |
2012 |
2012 |
|
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 RMB99,776 and RMB30,689 (US$4,926) as
of December 31, 2011 and 2012, respectively) |
107,042 |
98,124 |
15,750 |
Insurance premium payables (including
insurance premium payables of the consolidated VIEs without
recourse to CNinsure Inc. of RMB2,684 and RMB202 (US$32) as of
December 31, 2011 and 2012, respectively) |
2,684 |
2,941 |
472 |
Other payables and accrued expenses
(including other payables and accrued expenses of the consolidated
VIEs without recourse to CNinsure Inc. of RMB49,645 and RMB35,000
(US$5,618) as of December 31, 2011 and 2012,
respectively) |
92,682 |
116,124 |
18,639 |
Accrued payroll (including accrued payroll of
the consolidated VIEs without recourse to CNinsure Inc. of
RMB30,989 and RMB4,382 (US$703) as of December 31, 2011 and 2012,
respectively) |
35,219 |
42,317 |
6,792 |
Income taxes payable (including income taxes
payable of the consolidated of VIEs without recourse to CNinsure
Inc. of RMB22,502 and RMB2,037 (US$327) as of December 31,
2011 and 2012, respectively) |
70,377 |
56,003 |
8,989 |
Amounts due to related parties (including
amounts due to related parties of the consolidated of VIEs without
recourse to CNinsure Inc. of RMB20,305 and RMB3,030 (US$487) as of
December 31, 2011 and 2012, respectively) |
20,305 |
3,030 |
487 |
Total current
liabilities |
328,309 |
318,539 |
51,129 |
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets-(Continued) |
(In
thousands) |
|
As of December 31, |
As of December 31, |
As of December 31, |
|
2011 |
2012 |
2012 |
|
RMB |
RMB |
US$ |
Non-current
liabilities: |
|
|
|
Other tax liabilities |
43,586 |
47,589 |
7,639 |
Deferred tax liabilities |
30,106 |
26,754 |
4,294 |
Total non-current
liabilities |
73,692 |
74,343 |
11,933 |
Total liabilities |
402,001 |
392,882 |
63,062 |
|
|
|
|
Ordinary shares |
7,646 |
7,624 |
1,224 |
Additional paid-in capital |
2,272,580 |
2,284,906 |
366,753 |
Statutory reserves |
167,147 |
178,440 |
28,642 |
Retained earnings |
408,325 |
527,542 |
84,676 |
Accumulated other comprehensive
loss |
(101,651) |
(104,132) |
(16,714) |
Total CNinsure Inc. shareholders'
equity |
2,754,047 |
2,894,380 |
464,581 |
Noncontrolling interests |
124,948 |
113,527 |
18,222 |
Total equity |
2,878,995 |
3,007,907 |
482,803 |
Total liabilities and
equity |
3,280,996 |
3,400,789 |
545,865 |
CNINSURE
INC |
Unaudited Condensed
Consolidated Statements of Operations |
(In thousands, except
for shares and per share data) |
|
|
|
|
|
|
|
|
For
The Three Months Ended |
For
The Twelve Months Ended |
|
December 31, |
December 31, |
|
2011 |
2012 |
2012 |
2011 |
2012 |
2012 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Net revenues: |
|
|
|
|
|
|
Commissions and fees |
415,501 |
430,137 |
69,042 |
1,510,886 |
1,580,234 |
253,645 |
Other service fees |
3,101 |
5,690 |
913 |
5,789 |
5,883 |
944 |
Total net revenues |
418,602 |
435,827 |
69,955 |
1,516,675 |
1,586,117 |
254,589 |
Operating costs and
expenses: |
|
|
|
|
|
|
Commissions and fees |
(245,265) |
(311,821) |
(50,051) |
(796,843) |
(1,085,809) |
(174,285) |
Selling expenses |
(19,884) |
(19,332) |
(3,103) |
(77,802) |
(78,449) |
(12,592) |
General and administrative
expenses |
(129,759) |
(98,280) |
(15,775) |
(333,281) |
(356,033) |
(57,147) |
Impairment loss |
(1,037,657) |
— |
— |
(1,057,522) |
— |
— |
Total operating costs and
expenses |
(1,432,565) |
(429,433) |
(68,929) |
(2,265,448) |
(1,520,291) |
(244,024) |
Income (loss) from
operations |
(1,013,963) |
6,394 |
1,026 |
(748,773) |
65,826 |
10,565 |
Other income and expenses,
net: |
|
|
|
|
|
|
Interest income |
16,581 |
20,055 |
3,219 |
52,031 |
90,323 |
14,498 |
Finance cost |
— |
(2,439) |
(391) |
— |
(2,439) |
(391) |
Others, net |
12,004 |
3,396 |
545 |
22,436 |
6,742 |
1,082 |
Income (loss) from continuing
operations before income taxes and income of affiliates and
discontinued operations |
(985,378) |
27,406 |
4,399 |
(674,306) |
160,452 |
25,754 |
Income tax expense |
(18,583) |
(9,541) |
(1,532) |
(84,030) |
(50,373) |
(8,085) |
Share of income of affiliates |
5,930 |
610 |
98 |
14,246 |
14,658 |
2,353 |
Net income (loss) from continuing
operations |
(998,031) |
18,475 |
2,965 |
(744,090) |
124,737 |
20,022 |
Net income (loss) from discontinued
operations, net of tax |
(29,700) |
— |
— |
127,553 |
— |
— |
Net income (loss) |
(1,027,731) |
18,475 |
2,965 |
(616,537) |
124,737 |
20,022 |
Less: Net loss attributable to the
noncontrolling interests |
(309,097) |
(1,581) |
(254) |
(317,163) |
(5,773) |
(926) |
Net income (loss) attributable to the
Company's shareholders |
(718,634) |
20,056 |
3,219 |
(299,374) |
130,510 |
20,948 |
CNINSURE
INC. |
Unaudited Condensed
Consolidated Statements of Operations-(Continued) |
(In thousands, except
for shares and per share data) |
|
|
|
|
|
|
|
|
For The Three
Months Ended |
For The Twelve
Months Ended |
|
December
31, |
December
31, |
|
2011 |
2012 |
2012 |
2011 |
2012 |
2012 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Net income (loss)per
share: |
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
N Net income (loss) from
continuing operations |
(0.69) |
0.02 |
— |
(0.43) |
0.13 |
0.02 |
Net income (loss) from
discontinued operations |
(0.03) |
— |
— |
0.13 |
— |
— |
Net income (loss) |
(0.72) |
0.02 |
— |
(0.30) |
0.13 |
0.02 |
Diluted: |
|
|
|
|
|
|
Net income (loss) from
continuing operations |
(0.69) |
0.02 |
— |
(0.43) |
0.13 |
0.02 |
Net income (loss) from
discontinued operations |
(0.03) |
— |
— |
0.13 |
— |
— |
Net income (loss) |
(0.72) |
0.02 |
— |
(0.30) |
0.13 |
0.02 |
|
|
|
|
|
|
|
Net income (loss) per
ADS: |
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
Net income (loss) from
continuing operations |
(13.74) |
0.40 |
0.06 |
(8.51) |
2.60 |
0.42 |
Net income (loss) from
discontinued operations |
(0.60) |
— |
— |
2.54 |
— |
— |
Net income |
(14.34) |
0.40 |
0.06 |
(5.97) |
2.60 |
0.42 |
Diluted: |
|
|
|
|
|
|
Net income (loss) from
continuing operations |
(13.74) |
0.40 |
0.06 |
(8.51) |
2.60 |
0.42 |
Net income (loss) from
discontinued operations |
(0.60) |
— |
— |
2.54 |
— |
— |
Net income (loss) |
(14.34) |
0.40 |
0.06 |
(5.97) |
2.60 |
0.42 |
|
|
|
|
|
|
|
Shares used in calculating net income
per share: |
1,002,529,466 |
1,001,558,815 |
1,001,558,815 |
1,002,810,673 |
1,002,308,275 |
1,002,308,275 |
Basic |
|
|
|
|
|
|
Diluted |
1,002,529,466 |
1,005,461,258 |
1,005,461,258 |
1,002,810,673 |
1,005,301,969 |
1,005,301,969 |
CNINSURE
INC. |
Unaudited Condensed
Consolidated Statements of Cash Flow |
(In
thousands) |
|
|
|
|
|
|
|
|
For
The Three Months Ended |
For
The Twelve Months Ended |
|
December 31, |
December 31, |
|
2011 |
2012 |
2012 |
2011 |
2012 |
2012 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income (loss) |
(1,027,731) |
18,475 |
2,965 |
(616,537) |
124,737 |
20,022 |
Adjustments to reconcile net income
(loss) to net cash generated from operating
activities: |
|
|
|
|
|
|
Depreciation |
6,712 |
6,539 |
1,050 |
27,370 |
26,349 |
4,229 |
Amortization of intangible assets |
6,483 |
3,725 |
598 |
26,454 |
15,285 |
2,453 |
Impairment loss on goodwill and intangible
assets |
1,037,657 |
— |
— |
1,057,522 |
— |
— |
Allowance for doubtful receivables |
3,004 |
1,323 |
213 |
3,572 |
4,523 |
726 |
Compensation expenses associated with stock
options |
49,501 |
12,920 |
2,074 |
57,003 |
66,878 |
10,735 |
Loss on disposal of property, plant and
equipment |
377 |
2,363 |
379 |
542 |
3,662 |
588 |
Loss (gain) on disposal of
subsidiaries |
29,700 |
— |
— |
(127,553) |
— |
— |
Financial cost |
— |
2,439 |
391 |
— |
2,439 |
391 |
Share of income of affiliates |
(5,930) |
(610) |
(98) |
(14,246) |
(14,658) |
(2,353) |
Changes in fair value of contingent
assets |
(12,500) |
(4,500) |
(722) |
(12,500) |
(4,500) |
(722) |
Changes in operating assets and
liabilities |
76,847 |
(20,335) |
(3,264) |
89,773 |
(66,907) |
(10,739) |
Net cash generated from operating
activities |
164,120 |
22,339 |
3,586 |
491,400 |
157,808 |
25,330 |
|
|
|
|
|
|
|
Cash flows generated from (used in)
investing activities: |
|
|
|
|
|
|
Purchase of property, plant and
equipment |
(2,745) |
(4,054) |
(651) |
(20,859) |
(11,624) |
(1,866) |
Proceeds from disposal of property and
equipment |
(9) |
4 |
1 |
793 |
584 |
94 |
Purchase of short term investments |
— |
— |
— |
(70,242) |
(40,600) |
(6,517) |
Proceeds from disposal of short term
investments |
2,370 |
— |
— |
39,262 |
71,080 |
11,409 |
Acquisition of subsidiaries, net of
cash |
— |
— |
|
(49,996) |
— |
— |
Disposal of subsidiaries, net of
cash |
(3,552) |
— |
— |
390,836 |
1,967 |
316 |
Purchase of intangible asset |
— |
— |
— |
(758) |
— |
— |
(Increase) decrease in restricted
cash |
(2,874) |
916 |
147 |
(899) |
(795) |
(128) |
CNINSURE
INC. |
Unaudited Condensed
Consolidated Statements of Cash Flow-(Continued) |
(In
thousands) |
|
|
|
|
|
|
|
|
For The Three
Months Ended |
For The Twelve
Months Ended |
|
December
31, |
December
31, |
|
2011 |
2012 |
2012 |
2011 |
2012 |
2012 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Increase in other receivables |
— |
— |
— |
— |
(3,400) |
(545) |
Addition in investment in non-current
assets |
(700) |
— |
— |
(1,700) |
(1,948) |
(313) |
Addition in investment in
affiliates |
— |
— |
— |
(600) |
— |
— |
Return of investment in non-current
assets |
— |
— |
— |
— |
1,300 |
209 |
Refund of contingent consideration |
— |
— |
— |
— |
12,500 |
2,006 |
(Increase) decrease in amounts due from
related parties |
(329,860) |
(99,105) |
(15,908) |
(331,860) |
205,850 |
33,041 |
Net cash (used in) generated from
investing activities |
(337,370) |
(102,239) |
(16,411) |
(46,023) |
234,914 |
37,706 |
|
|
|
|
|
|
|
Cash flows used in financing
activities: |
|
|
|
|
|
|
Paid for contingent consideration |
— |
— |
— |
(100,000) |
— |
— |
Acquisition of additional interest
in subsidiaries |
(28,330) |
(70,000) |
(11,235) |
(28,330) |
(90,455) |
(14,519) |
Capital injection by noncontrolling
interests |
4,997 |
— |
— |
6,937 |
12,655 |
2,031 |
Repayment for related parties |
(20,000) |
— |
— |
— |
— |
— |
Proceeds on exercise of stock
options |
63 |
300 |
48 |
5,305 |
348 |
56 |
Repurchase of ordinary shares |
— |
(9,244) |
(1,484) |
(13,722) |
(9,244) |
(1,484) |
Net cash used in financing
activities |
(43,270) |
(78,944) |
(12,671) |
(129,810) |
(86,696) |
(13,916) |
|
|
|
|
|
|
|
Net (decrease) increase in cash and
cash equivalents |
(216,520) |
(158,844) |
(25,496) |
315,567 |
306,026 |
49,120 |
Cash and cash equivalents at
beginning of period |
2,443,488 |
2,686,572 |
431,225 |
1,924,884 |
2,222,160 |
356,681 |
Effect of exchange rate changes on cash and
cash equivalents |
(4,808) |
(2,110) |
(339) |
(18,291) |
(2,568) |
(411) |
Cash and cash equivalents at end of
period |
2,222,160 |
2,525,618 |
405,390 |
2,222,160 |
2,525,618 |
405,390 |
|
|
|
|
|
|
|
Interest paid |
— |
— |
— |
— |
— |
— |
Income taxes paid |
12,904 |
8,321 |
1,336 |
93,913 |
63,400 |
10,176 |
CNinsure
Inc. |
Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures |
(In RMB in thousands,
except shares and per share data) |
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 31, 2011 |
|
GAAP |
|
|
|
|
|
Non-GAAP |
Operating income (loss) |
(1,013,963) |
1,037,657 |
49,501 |
— |
— |
— |
73,195 |
Operating margin |
(242.2%) |
247.9% |
11.8% |
— |
— |
— |
17.5% |
Net income attributable to the Company's
shareholders |
(718,634) |
— |
49,501 |
724,853 |
(9,375) |
29,700 |
76,045 |
Net margin |
(171.7%) |
— |
11.8% |
173.2% |
(2.2%) |
7.1% |
18.2% |
Shares used in calculating basic net income
per ADS |
1,002,529,466 |
— |
— |
— |
— |
— |
1,002,529,466 |
Basic net income per ADS |
(14.34) |
— |
0.99 |
14.46 |
(0.19) |
0.60 |
1.52 |
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 31, 2012 |
|
GAAP |
|
|
|
|
|
Non-GAAP |
Operating income |
6,394 |
— |
12,920 |
— |
— |
— |
19,314 |
Operating margin |
1.5% |
— |
2.9% |
— |
— |
— |
4.4% |
Net income attributable to the Company's
shareholders |
20,056 |
— |
12,920 |
— |
(4,500) |
— |
28,476 |
Net margin |
4.6% |
— |
2.9% |
— |
(1.0%) |
— |
6.5% |
Shares used in calculating basic net income
per ADS |
1,001,558,815 |
— |
— |
— |
— |
— |
1,001,558,815 |
Basic net income per ADS |
0.40 |
— |
0.26 |
— |
(0.09) |
— |
0.57 |
goodwill and intangible assets impairment losses; share-based
compensation expenses; goodwill and intangible asset impairment
attributable to the Company, net of tax; refunds from the selling
shareholder of certain acquired subsidiaries, net of tax;
discontinued operations income, net of tax.
CNinsure
Inc. |
Reconciliations of GAAP
Financial Measures to Non-GAAP Financial
Measures-(Continued) |
(In RMB in thousands,
except shares and per share data) |
|
|
|
|
|
|
|
|
|
|
For
The Twelve Months Ended December 31, 2011 |
|
GAAP |
|
|
|
|
|
|
Non-GAAP |
Operating income (loss) |
(748,773) |
1,057,522 |
57,003 |
10,045 |
— |
— |
— |
375,797 |
Operating margin |
(49.3%) |
69.7% |
3.7% |
0.7% |
— |
— |
— |
24.8% |
Net income attributable to the Company's
shareholders |
(299,374) |
— |
57,003 |
10,045 |
742,968 |
(15,455) |
(127,553) |
367,634 |
Net margin |
(19.7%) |
— |
3.7% |
0.7% |
48.9% |
(1.0%) |
(8.4%) |
24.2% |
Shares used in calculating basic net income
per ADS |
1,002,810,673 |
— |
— |
— |
— |
— |
— |
1,002,810,673 |
Basic net income per ADS |
(5.97) |
— |
1.14 |
0.20 |
14.82 |
(0.31) |
(2.55) |
7.33 |
|
|
|
|
|
|
|
|
|
|
For
The Twelve Months Ended December 31, 2012 |
|
GAAP |
|
|
|
|
|
|
Non-GAAP |
Operating income |
65,826 |
— |
66,878 |
— |
— |
— |
— |
132,704 |
Operating margin |
4.2% |
— |
4.2% |
— |
— |
— |
— |
8.4% |
Net income attributable to the Company's
shareholders |
130,510 |
— |
66,878 |
— |
— |
(4,500) |
— |
192,888 |
Net margin |
8.2% |
— |
4.2% |
— |
— |
(0.2%) |
— |
12.2% |
Shares used in calculating basic net income
per ADS |
1,002,308,275 |
— |
— |
— |
— |
— |
— |
1,002,308,275 |
Basic net income per ADS |
2.60 |
— |
1.34 |
— |
— |
(0.09) |
— |
3.85 |
goodwill and Intangible assets impairment; share-based
compensation expense; one-off professional fees related to the
non-binding going-private proposal; goodwill and intangible asset
impairment attributable to the Company, net of tax; refunds from
the selling shareholder of certain acquired subsidiaries and cash
bonus received from the Shenzhen municipal government, net of
tax; discontinued operations income, net of tax.
CONTACT: For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jul 2023 to Jul 2024