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
second quarter and first half ended June 30, 20131.
Financial Highlights for
Second Quarter
of 2013
- Total net revenues: RMB421.3 million (US$68.6
million), representing an increase of 2.8% from the corresponding
period in 2012.
- Operating income: RMB0.2
million (US$31,882) representing a decrease of 98.9% from the
corresponding period in 2012.
- Non-GAAP
operating
income: RMB10.4 million (US$1.7
million), which excludes share-based compensation expenses,
representing a decrease of 80.9% from the corresponding period in
2012.
- Net income attributable to the Company's
shareholders: RMB20.9 million (US$3.4 million),
representing a decrease of 36.3% from the corresponding period in
2012.
- Non-GAAP net income attributable to the Company's
shareholders: RMB31.1 million (US$5.1 million), which
excludes share-based compensation expenses, representing a decrease
of 55.2% from the corresponding period in 2012.
- Basic and diluted net income per ADS: RMB0.42
(US$0.07) and RMB0.42 (US$0.07), respectively, representing
decreases of 36.0% and 36.2%, respectively, from the corresponding
period in 2012.
- Non-GAAP basic and
diluted net income per ADS: RMB0.62 (US$0.10) and RMB0.62
(US$0.10), respectively, representing decreases of 55.1% and 55.2%,
respectively, from the corresponding period in 2012.
Financial Highlights for First Half of
2013
- Total net revenues: RMB822.6 million (US$134.0
million), representing an increase of 10.1% from the corresponding
period in 2012.
- Operating income: RMB1.8
million (US$0.3 million) representing a decrease of 96.8% from the
corresponding period in 2012.
- Non-GAAP
operating
income: RMB24.8 million (US$4.0
million), which excludes share-based compensation expenses,
representing a decrease of 74.5% from the corresponding period in
2012.
- Net income attributable to the Company's
shareholders: RMB42.0 million (US$6.8 million),
representing a decrease of 52.0% from the corresponding period in
2012.
- Non-GAAP net income attributable to the Company's
shareholders: RMB64.9 million (US$10.6 million), which
excludes share-based compensation expenses, representing a decrease
of 49.4% from the corresponding period in 2012.
- Basic and diluted net income per ADS: RMB0.84
(US$0.14) and RMB0.84 (US$0.14), respectively, representing
decreases of 52.1% and 51.8%, respectively, from the corresponding
period in 2012.
- Non-GAAP basic and
diluted net income per ADS: RMB1.30 (US$0.21) and RMB1.30
(US$0.21), respectively, representing decreases of 49.2% and 49.0%,
respectively, from the corresponding period in 2012.
Commenting on the second quarter financial results, Mr. Chunlin
Wang, CNinsure's chief executive officer, stated, "Amid the
industry trend towards the protection business, we adjusted our
life insurance product strategy during the second quarter of 2013
by shifting our sales focus from participating policies to
traditional protection policies which generally generates lower per
policy premiums but have a higher imbedded value. This shift was
one of the major reasons for the drastic decline of our first year
life insurance premiums and the lower-than-expected growth of our
total net revenues, although the number of new life insurance
policies during the period remained flat year-over-year. Despite
the negative impact on life insurance business volume in the
near-term, we believe this move is conducive to enhancing the
long-term sustainability of our life insurance business and
prepares us well for capitalizing on the growth opportunities
arising from the deregulation of prices for traditional life
insurance products.
"While margins remained under pressure during the second quarter
of 2013, largely as a result of rising labor costs and increased
competition in the property and casualty (the "P&C") insurance
market, we were excited to see the progress in the promotion and
use of CNpad, which aims to enhance efficiency and reduce operating
expenses for sales agents and the Company. During the second
quarter of 2013, CNpad sparked growing enthusiasm with our sales
agents, sales channel partners and underwriters looking for more
cost-effective ways to conduct business. Pilot operations or
internal testing of CNpad has been extended to a total of five
provinces, and auto insurance products from 12 P&C insurance
companies are now available through the system. The aggregate
number of CNpad units sold exceeded 480 as of June 30, 2013, and
those units contributed over RMB30 million in premiums during the
second quarter of 2013.
The roll out of our comprehensive financial services strategy is
also progressing well. We sold RMB240 million worth of wealth
management products during the quarter, and the total number of
customers who purchased wealth management products through us
increased by 460 from the previous quarter."
Mr. Wang concluded, "While there remains a lot of work to do, we
are optimistic that CNpad and comprehensive financial services
strategy will create value for our sales agents and clients, and
position us well for long-term sustainable growth."
Financial Results for the Second
Quarter of
2013
Total net revenues were RMB421.3 million
(US$68.6 million) for the second quarter of 2013, representing an
increase of 2.8% from RMB409.9 million for the corresponding period
in 2012, 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
slight increases in commission rates received from insurance
underwriters, while the growth of the claims adjusting segment was
mainly attributable to growth in the auto insurance-related claims
adjusting business. Net revenues from commissions and fees derived
from the P&C insurance, life insurance and claims adjusting
businesses for the second quarter of 2013 contributed 71.4%, 14.2%,
and 14.4% of the Company's total net revenues, respectively,
compared to 66.1%, 21.0% and 12.9%, respectively, for the
corresponding period in 2012.
Total operating costs and expenses were
RMB421.1 million (US$68.6 million) for the second quarter of 2013,
representing an increase of 7.4% from RMB392.1 million for the
corresponding period in 2012.
Commissions and fees expenses were RMB313.0
million (US$51.0 million) for the second quarter of 2013,
representing an increase of 17.6% from RMB266.3 million for the
corresponding period in 2012. The increase was primarily due to
further increases in commissions paid to our P&C sales agents
driven by (1) increased competition in the auto insurance market,
and (2) nationwide rising labor costs.
Selling expenses were RMB24.4 million (US$4.0
million) for the second quarter of 2013, representing an increase
of 16.1% from RMB21.0 million for the corresponding period in 2012,
primarily due to increases in travel, gasoline and office expenses
mostly incurred by the claims adjusting business segment.
General and administrative expenses were
RMB83.7 million (US$13.6 million) for the second quarter of 2013,
representing a decrease of 20.2% from RMB104.8 million for the
corresponding period in 2012. The decrease was primarily due to the
net effect of the following factors:
(1) a decrease of 72.2% in share-based compensation expenses,
from RMB36.7 million for the second quarter of 2012 to RMB10.2
million (US$1.7 million) for the second quarter of 2013.
Share-based compensation expenses for the second quarter of 2013
were mainly associated with stock options granted to certain
employees in March 2012, which were recognized on an accelerated
basis and such expenses are expected to decrease each year after
the grant; offset by
(2) an increase of 39.2% in depreciation expense from RMB4.4
million for the second quarter of 2012 to RMB6.1 million (US$1.0
million) for the second quarter of 2013 due to the purchase of more
fixed assets for our e-commerce operations during 2012.
As a result of the foregoing factors, operating
income was RMB0.2 million (US$31,882) for the second
quarter of 2013, representing a decrease of 98.9% from RMB17.8
million for the corresponding period in 2012.
Non-GAAP operating income, which excludes
share-based compensation expenses was RMB10.4 million (US$1.7
million) for the second quarter of 2013, representing a decrease of
80.9% from RMB54.5 million for the corresponding period in
2012.
Operating margin was 0.05% for the second
quarter of 2013, compared with 4.4% for the corresponding period in
2012. Non-GAAP operating margin was 2.4% for the second quarter of
2013, compared with 13.4% for the corresponding period in 2012.
Interest income was RMB20.3 million (US$3.3
million) for the second quarter of 2013, representing a decrease of
9.5% from RMB22.5 million for the corresponding period in 2012. The
decrease in interest income was primarily due to (1) a decrease in
the bank deposits as we increased short-term investments and (2) a
decrease in interest rates from the corresponding period in
2012.
Income tax expense was RMB5.8 million (US$0.9
million) for the second quarter of 2013, representing a decrease of
59.7% from RMB14.4 million for the corresponding period in 2012 due
to the decrease in operating income. The effective tax rate for the
second quarter of 2013 was 24.8% compared with 33.8% for the
corresponding period in 2012. The decrease in effective tax rate
was mainly due to the decrease in share-based compensation expenses
which are non tax-deductible.
Net income attributable to the Company's
shareholders was RMB20.9 million (US$3.4 million) for the
second quarter of 2013, representing a decrease of 36.3% from
RMB32.8 million for the corresponding period in 2012.
Non-GAAP net income attributable to the Company's
shareholders, which excludes share-based compensation
expenses was RMB31.1 million (US$5.1 million) for the second
quarter of 2013, representing a decrease of 55.2% from RMB69.5
million for the corresponding period in 2012.
Net margin was 5.0% for the second quarter of
2013 compared with 8.0% for the corresponding period in 2012.
Non-GAAP net margin was 7.4% for the second
quarter of 2013 compared with 17.0% for the corresponding period in
2012.
Basic and diluted net
income per ADS were RMB0.42 (US$0.07) and RMB0.42
(US$0.07) for the second quarter of 2013, respectively,
representing decreases of 36.0% and 36.2% from RMB0.66 and RMB0.65
for the corresponding period in 2012, respectively.
Non-GAAP basic and diluted
net income per ADS were RMB0.62 (US$0.10) and
RMB0.62 (US$0.10) for the second quarter of 2013, respectively,
representing decreases of 55.1% and 55.2% from RMB1.39 and RMB1.38
for the corresponding period in 2012, respectively.
Financial Results for the First
Half of 2013
Total net revenues were RMB822.6 million
(US$134.0 million) for the first half of 2013, representing an
increase of 10.1% from RMB747.3 million for the corresponding
period in 2012, 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
slight increases in commission rates received from insurance
underwriters and sales volume growth. The growth of the claims
adjusting segment was mainly attributable to growth in the auto
insurance-related claims adjusting business. Net revenues from
commissions and fees derived from the P&C insurance, life
insurance and claims adjusting businesses for the first half of
2013 contributed 71.0%, 15.3%, and 13.7% of the Company's total net
revenues, respectively, compared to 66.8%, 20.3% and 12.9%,
respectively, for the corresponding period in 2012.
Total operating costs and expenses were
RMB820.7 million (US$133.7 million) for the first half of 2013,
representing an increase of 18.8% from RMB690.8 million for the
corresponding period in 2012.
Commissions and fees expenses were RMB610.2
million (US$99.4 million) for the first half of 2013, representing
an increase of 27.2% from RMB479.7 million for the corresponding
period in 2012. The increase was primarily due to further increases
in commissions paid to our P&C sales agents driven by (1)
increased competition in the auto insurance market, and (2)
nationwide rising labor costs.
Selling expenses were RMB44.5 million (US$7.2
million) for the first half of 2013, representing an increase of
12.1% from RMB39.7 million for the corresponding period in 2012,
primarily due to growth in sales volume.
General and administrative expenses were
RMB166.1 million (US$27.1 million) for the first half of 2013,
representing a decrease of 3.1% from RMB171.4 million for the
corresponding period in 2012. The decrease was primarily due to the
net effect of the following factors:
(1) a decrease of 43.7% in share-based compensation expenses,
from RMB40.8 million for the first half of 2012 to RMB23.0 million
(US$3.7 million) for the first half of 2013. Share-based
compensation expenses for the first half of 2013 were mainly
associated with the grant of stock options in March, 2012 which
were recognized on an accelerated basis and such expenses are
expected to decrease each year after the grant; offset by
(2) an increase of 6.1% in payroll and social insurance expenses
from RMB63.3 million for the first half of 2012 to RMB67.1 million
(US$10.9 million) for the first half of 2013 primarily due to pay
raises for our administrative staff; and
(3) an increase of 40.4% in depreciation expenses, from RMB8.8
million for the first half of 2012 to RMB12.3 million (US$2.0
million) for the first half of 2013, due to the purchase of more
fixed assets for our e-commerce operations during 2012.
As a result of the foregoing factors, operating
income was RMB1.8 million (US$0.3 million) for the first
half of 2013, representing a decrease of 96.8% from RMB56.5 million
for the corresponding period in 2012.
Non-GAAP operating income, which excludes
share-based compensation expenses was RMB24.8 million (US$4.0
million) for the first half of 2013, representing a decrease of
74.5% from RMB97.3 million for the corresponding period in
2012.
Operating margin was 0.2% for the first half of
2013, compared with 7.6% for the corresponding period in 2012.
Non-GAAP operating margin was 3.0% for the first half of 2013,
compared with13.1% for the corresponding period in 2012.
Interest income was RMB41.9 million (US$6.8
million) for the first half of 2013, representing a decrease of
6.8% from RMB44.9 million for the corresponding period in 2012. The
slight decrease in interest income was primarily due to (1) a
decrease in the bank interest rate from the corresponding period in
2012 and (2) a decrease in the bank deposits as we increased
short-term investments.
Income tax expense was RMB12.0 million (US$2.0
million) for the first half of 2013, representing a decrease of
57.2% from RMB28.1 million for the corresponding period in 2012 due
to the significant decrease in operating income. The effective tax
rate for the first half of 2013 was 25.8% compared with 26.9% for
the corresponding period in 2012.The decrease in effective tax rate
was mainly due to the decrease in share-based compensation
expenses, which are non tax-deductible.
Net income attributable to the Company's
shareholders was RMB42.0 million (US$6.9 million) for the
first half of 2013, representing a decrease of 52.0% from RMB87.5
million for the corresponding period in 2012.
Non-GAAP net income attributable to the Company's
shareholders, which excludes share-based compensation
expenses, was RMB64.9 million (US$10.6 million) for the first half
of 2013, representing a decrease of 49.4% from RMB128.3 million for
the corresponding period in 2012.
Net margin was 5.1% for the first half of 2013
compared with 11.7% for the corresponding period in 2012.
Non-GAAP net margin was 7.9% for the first half of
2013, compared with 17.2% for the corresponding period in 2012.
Basic and diluted net
income per ADS were RMB0.84 (US$0.14) and RMB0.84
(US$0.14) for the first half of 2013, respectively, representing
decreases of 52.1% and 51.8% from RMB1.75 and RMB1.74 for the
corresponding period in 2012, respectively.
Non-GAAP basic and diluted
net income per ADS were RMB1.30 (US$0.21) and
RMB1.30 (US$0.21) for the first half of 2013, respectively,
representing decreases of 49.2% and 49.0% from RMB2.56 and RMB2.55
for the corresponding period in 2012, respectively.
As of June 30, 2013, the Company had RMB2.3 billion (US$377.3
million) in cash and cash
equivalents.
Business Highlights:
- As of June 30, 2013, CNinsure's distribution and service
network consisted of 479 sales and services outlets operating in 27
provinces, compared with 508 sales and service outlets operating in
23 provinces as of June 30, 2012. CNinsure had 47,554 sales agents
and representatives and 1,344 professional claims adjustors as of
June 30, 2013, compared with 47,162 sales agents and
representatives, and 1,341 professional claims adjustors as of June
30, 2012. The increase in the number of sales agents and
professional claims adjustors was primarily a result of enhanced
recruitment efforts during the second quarter of 2013 while the
decrease in the number of sales outlets was primarily because we
closed sales outlets that were less productive during the second
and third quarters of 2012.
Business Outlook
CNinsure expects its total net revenues to grow by approximately
5% for the third quarter of 2013 compared with 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 second
quarter and first half 2013 results at
Time: 9:00 PM Eastern
Daylight Time on August 20, 2013
or 9:00 AM Beijing/Hong Kong Time on August 21, 2013
The dial-in numbers:
| United States |
1-845-675-0438 |
| 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 three days by dialing
the following number: + 61 2 8199 0299
Conference ID #: 27587592
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 August 20,
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,
which are adjusted to exclude share-based compensation expenses.
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 these non-GAAP measures exclude the item that was
significant in the second quarter of 2013 and the corresponding
period of 2012. 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.
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
RMB6.1374 to US$1.00, the effective noon buying rate as of June 28,
2013 in The City of New York for cable transfers of RMB as set
forth in H.10 weekly statistical release of the Federal Reserve
Board.
| CNINSURE
INC. |
| Unaudited Condensed
Consolidated Balance Sheets |
| (In
thousands) |
| |
|
|
|
| |
As of Dec. 31,
2012 |
As of June 30,
2013 |
As of June 30,
2013 |
| |
RMB |
RMB |
US$ |
| ASSETS: |
|
|
|
| Current assets: |
|
|
|
| Cash and cash equivalents |
2,525,618 |
2,315,545 |
377,284 |
| Restricted cash |
10,871 |
12,050 |
1,963 |
| Short term investments |
600 |
233,900 |
38,111 |
| Accounts receivable, net |
196,244 |
218,844 |
35,658 |
| Insurance premium receivables |
10 |
749 |
122 |
| Other receivables |
86,565 |
62,272 |
10,146 |
| Deferred tax assets |
4,942 |
4,996 |
814 |
| Amounts due from related parties |
151,785 |
136,644 |
22,264 |
| Other current assets |
17,265 |
20,242 |
3,298 |
| Total current assets |
2,993,900 |
3,005,242 |
489,660 |
| |
|
|
|
| Non-current assets: |
|
|
|
| Property, plant, and equipment,
net |
94,921 |
81,732 |
13,317 |
| Goodwill and intangible assets,
net |
121,333 |
114,500 |
18,656 |
| Deferred tax assets |
3,967 |
6,349 |
1,034 |
| Investment in affiliates |
168,620 |
179,264 |
29,209 |
| Other non-current assets |
18,048 |
16,648 |
2,713 |
| Total non-current
assets |
406,889 |
398,493 |
64,929 |
| Total assets |
3,400,789 |
3,403,735 |
554,589 |
| |
|
|
|
| LIABILITIES AND EQUITY: |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable (including accounts payable
of the consolidated variable interest entities ("VIEs") without
recourse to CNinsure Inc. of RMB30,689 and RMB24,384
(US$3,973) as of December 31, 2012 and June 30, 2013,
respectively) |
98,124 |
81,078 |
13,210 |
| Insurance premium payables (including
insurance premium payables of the consolidated VIEs without
recourse to CNinsure Inc. of RMB202 and RMB502 (US$82) as of
December 31, 2012 and June 30, 2013, respectively) |
2,941 |
4,160 |
678 |
| Other payables and accrued expenses
(including other payables and accrued expense of the consolidated
VIEs without recourse to CNinsure Inc. of RMB35,000 and RMB20,850
(US$3,397) as of December 31, 2012 and June 30, 2013,
respectively) |
116,124 |
75,275 |
12,265 |
| Accrued payroll (including accrued payroll of
the consolidated VIEs without recourse to CNinsure Inc. of RMB4,382
and RMB3,758 (US$612) as of December 31, 2012 and June 30, 2013,
respectively) |
42,317 |
35,508 |
5,785 |
| Income tax payable (including income tax
payable of the consolidated of VIEs without recourse to CNinsure
Inc. of RMB2,037 and RMB2,042 (US$333) as of December 31, 2012 and
June 30, 2013, respectively) |
56,003 |
54,449 |
8,872 |
| Amounts due to related parties (including
amounts due to related parties of the consolidated of VIEs without
recourse to CNinsure Inc. of RMB3,030 and RMB3,030 (US$494) as of
December 31, 2012 and June 30, 2013, respectively) |
3,030 |
3,030 |
494 |
| Total current
liabilities |
318,539 |
253,500 |
41,304 |
| |
|
|
|
| Non-current
liabilities: |
|
|
|
| Other tax liabilities |
47,589 |
50,060 |
8,157 |
| Deferred tax liabilities |
26,754 |
25,281 |
4,119 |
| Total non-current
liabilities |
74,343 |
75,341 |
12,276 |
| Total liabilities |
392,882 |
328,841 |
53,580 |
| |
|
|
|
| Ordinary shares |
7,624 |
7,624 |
1,242 |
| Additional paid-in capital |
2,284,906 |
2,307,888 |
376,037 |
| Statutory reserves |
178,440 |
178,440 |
29,074 |
| Retained earnings |
527,542 |
569,495 |
92,791 |
| Accumulated other comprehensive
loss |
(104,132) |
(107,819) |
(17,568) |
| Total CNinsure Inc. shareholders'
equity |
2,894,380 |
2,955,628 |
481,576 |
| Noncontrolling interests |
113,527 |
119,266 |
19,433 |
| Total equity |
3,007,907 |
3,074,894 |
501,009 |
| Total liabilities and
equity |
3,400,789 |
3,403,735 |
554,589 |
| |
| |
| CNINSURE
INC. |
| Unaudited Condensed
Consolidated Statements of Income and Comprehensive
Income |
| (In thousands, except
for shares and per share data) |
| |
| |
For The Three
Months Ended June 30, |
For The Six
Months Ended June 30, |
| |
2012 |
2013 |
2013 |
2012 |
2013 |
2013 |
| |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
| Net revenues: |
|
|
|
|
|
|
| Commissions and fees |
409,827 |
421,282 |
68,642 |
747,108 |
822,537 |
134,020 |
| Other service fees |
104 |
7 |
1 |
165 |
14 |
2 |
| Total net revenues |
409,931 |
421,289 |
68,643 |
747,273 |
822,551 |
134,022 |
| Operating costs and
expenses: |
|
|
|
|
|
|
| Commissions and fees |
(266,256) |
(313,044) |
(51,006) |
(479,734) |
(610,213) |
(99,425) |
| Selling expenses |
(20,995) |
(24,364) |
(3,970) |
(39,675) |
(44,467) |
(7,245) |
| General and administrative expenses |
(104,841) |
(83,686) |
(13,635) |
(171,363) |
(166,067) |
(27,058) |
| Total operating costs and
expenses |
(392,092) |
(421,094) |
(68,611) |
(690,772) |
(820,747) |
(133,728) |
| Income from operations |
17,839 |
195 |
32 |
56,501 |
1,804 |
294 |
| Other income, net: |
|
|
|
|
|
|
| Investment income |
— |
1,320 |
215 |
— |
1,320 |
215 |
| Interest income |
22,467 |
20,323 |
3,311 |
44,922 |
41,868 |
6,822 |
| Others, net |
2,234 |
1,533 |
250 |
3,131 |
1,642 |
268 |
| Income before income taxes and income
of affiliates |
42,540 |
23,371 |
3,808 |
104,554 |
46,634 |
7,599 |
| Income tax expense |
(14,392) |
(5,802) |
(945) |
(28,097) |
(12,035) |
(1,961) |
| Share of income of affiliates |
4,894 |
5,310 |
865 |
9,419 |
10,644 |
1,734 |
| |
|
|
|
|
|
|
| Net income |
33,042 |
22,879 |
3,728 |
85,876 |
45,243 |
7,372 |
| Less: net gain (loss) attributable to
noncontrolling interests |
199 |
1,953 |
318 |
(1,578) |
3,289 |
536 |
| Net income attributable to the
Company's shareholders |
32,843 |
20,926 |
3,410 |
87,454 |
41,954 |
6,836 |
| |
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
| Basic |
0.03 |
0.02 |
— |
0.09 |
0.04 |
0.01 |
| Diluted |
0.03 |
0.02 |
— |
0.09 |
0.04 |
0.01 |
| |
|
|
|
|
|
|
| Net income per ADS: |
|
|
|
|
|
|
| Basic |
0.66 |
0.42 |
0.07 |
1.75 |
0.84 |
0.14 |
| Diluted |
0.65 |
0.42 |
0.07 |
1.74 |
0.84 |
0.14 |
| |
|
|
|
|
|
|
| Shares used in calculating net income
per share: |
|
|
|
|
|
|
| Basic |
1,002,564,246 |
998,861,526 |
998,861,526 |
1,002,557,732 |
998,861,526 |
998,861,526 |
| Diluted |
1,004,316,034 |
1,002,321,530 |
1,002,321,530 |
1,006,123,724 |
1,002,278,510 |
1,002,278,510 |
| |
|
|
|
|
|
|
| Net income |
33,042 |
22,879 |
3,728 |
85,876 |
45,243 |
7,372 |
| Other comprehensive income (loss), net of
tax: Foreign currency translation adjustments |
1,874 |
(2,931) |
(478) |
2,093 |
(3,686) |
(601) |
| Comprehensive
income |
34,916 |
19,948 |
3,250 |
87,969 |
41,557 |
6,771 |
| Less: Comprehensive income (loss)
attributable to the noncontrolling interests |
199 |
1,953 |
318 |
(1,578) |
3,289 |
536 |
| Comprehensive income attributable to
the CNinsure Inc's shareholders |
34,717 |
17,995 |
2,932 |
89,547 |
38,268 |
6,235 |
| |
| |
| CNINSURE
INC. |
| Unaudited Condensed
Consolidated Statements of Cash Flow |
| (In
thousands) |
| |
|
|
|
|
|
|
| |
For The Three
Months Ended June 30, |
For The Six
Months Ended June 30, |
| |
2012 |
2013 |
2013 |
2012 |
2013 |
2013 |
| |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
| OPERATING ACTIVITIES |
|
|
|
|
|
|
| Net income |
33,042 |
22,879 |
3,728 |
85,876 |
45,243 |
7,372 |
| Adjustments to reconcile net income
to net cash generated from operating activities: |
|
|
|
|
|
|
| Depreciation |
6,587 |
8,073 |
1,315 |
13,337 |
16,009 |
2,608 |
| Amortization of intangible assets |
3,806 |
3,416 |
557 |
7,834 |
6,832 |
1,113 |
| Allowance for doubtful receivables |
1,497 |
447 |
73 |
2,513 |
1,196 |
195 |
| Compensation expenses associated with stock
option |
36,702 |
10,202 |
1,662 |
40,799 |
22,982 |
3,745 |
| Gain on disposal of property, plant and
equipment |
(36) |
(16) |
(3) |
(36) |
(16) |
(3) |
| Share of income of affiliates |
(4,894) |
(5,310) |
(865) |
(9,419) |
(10,644) |
(1,734) |
| Changes in operating assets and
liabilities |
(4,868) |
11,900 |
1,939 |
(66,940) |
(38,411) |
(6,258) |
| Net cash generated from operating
activities |
71,836 |
51,591 |
8,406 |
73,964 |
43,191 |
7,038 |
| |
|
|
|
|
|
|
| Cash flows used in investing
activities: |
|
|
|
|
|
|
| Purchase of property, plant and
equipment |
(4,472) |
(27,221) |
(4,435) |
(6,195) |
(32,719) |
(5,331) |
| Proceeds from disposal of property and
equipment |
390 |
16 |
3 |
577 |
30 |
5 |
| Proceeds from disposal of short term
investments |
57,450 |
600 |
97 |
71,080 |
600 |
97 |
| Purchase of short term investments |
(40,600) |
(138,900) |
(22,632) |
(40,600) |
(233,900) |
(38,111) |
| Disposal of subsidiaries, net of
cash |
(80) |
— |
— |
(33) |
— |
— |
| Increase in restricted cash |
(2,577) |
(1,013) |
(165) |
(1,923) |
(1,179) |
(192) |
| Increase in other receivables |
(3,400) |
— |
— |
(3,400) |
— |
— |
| Addition in investment in non-current
assets |
— |
— |
— |
(1,948) |
— |
— |
| Return of investment in non-current
assets |
300 |
— |
— |
1,300 |
— |
— |
| Refund of contingent consideration |
— |
4,500 |
733 |
12,500 |
4,500 |
733 |
| Decrease (increase) in amounts due from
related parties |
70,677 |
(29,431) |
(4,795) |
163,368 |
10,640 |
1,734 |
| Net cash generated from (used in)
investing activities |
77,688 |
(191,449) |
(31,194) |
194,726 |
(252,028) |
(41,065) |
| |
|
|
|
|
|
|
| Cash flows (used in ) generated from
financing activities: |
|
|
|
|
|
|
| Acquisition of additional interest in
subsidiaries |
(20,455) |
— |
— |
(20,455) |
— |
— |
| Capital injection by noncontrolling
interests |
4,830 |
— |
— |
11,360 |
2,450 |
399 |
| Proceeds on exercise of stock options
res |
— |
— |
— |
48 |
— |
— |
| Net cash (used in) generated from
financing activities |
(15,625) |
— |
— |
(9,047) |
2,450 |
399 |
| |
|
|
|
|
|
|
| Net increase (decrease) in cash and
cash equivalents |
133,899 |
(139,858) |
(22,788) |
259,643 |
(206,387) |
(33,628) |
| Cash and cash equivalents at
beginning of period |
2,348,123 |
2,458,334 |
400,550 |
2,222,160 |
2,525,618 |
411,513 |
| Effect of exchange rate changes on cash and
cash equivalents |
1,874 |
(2,931) |
(478) |
2,093 |
(3,686) |
(601) |
| Cash and cash equivalents at end of
period |
2,483,896 |
2,315,545 |
377,284 |
2,483,896 |
2,315,545 |
377,284 |
| |
|
|
|
|
|
|
| Interest paid |
— |
— |
— |
— |
— |
— |
| Income taxes paid |
15,603 |
5,275 |
859 |
44,885 |
14,772 |
2,407 |
| |
| |
| 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 June 30, 2012 |
| |
GAAP |
<1> |
Non-GAAP |
| Operating income |
17,839 |
36,702 |
54,541 |
| Operating margin |
4.4% |
9.0% |
13.4% |
| |
|
|
|
| Net income attributable to the Company's
shareholders |
32,843 |
36,702 |
69,545 |
| Net margin |
8.0% |
9.0% |
17.0% |
| |
|
|
|
| Shares used in calculating basic net income
per share |
1,002,564,246 |
— |
1,002,564,246 |
| |
|
|
|
| Basic net income per ADS |
0.66 |
0.73 |
1.39 |
| Shares used in calculating diluted net income
per share |
1,004,316,034 |
— |
1,004,316,034 |
| |
|
|
|
| Diluted net income per ADS |
0.65 |
0.73 |
1.38 |
| |
|
|
|
| |
For The Three
Months Ended June 30, 2013 |
| |
GAAP |
<1> |
Non-GAAP |
| Operating income |
195 |
10,202 |
10,397 |
| Operating margin |
0.0% |
2.4% |
2.4% |
| |
|
|
|
| Net income attributable to the Company's
shareholders |
20,926 |
10,202 |
31,128 |
| Net margin |
5.0% |
2.4% |
7.4% |
| |
|
|
|
| Shares used in calculating basic net income
per share |
998,861,526 |
— |
998,861,526 |
| |
|
|
|
| Basic net income per ADS |
0.42 |
0.20 |
0.62 |
| Shares used in calculating diluted net income
per share |
1,002,321,530 |
— |
1,002,321,530 |
| |
|
|
|
| Diluted net income per ADS |
0.42 |
0.20 |
0.62 |
| |
|
|
|
| <1> share-based
compensation expenses. |
| |
|
|
|
| |
|
|
|
| |
For The Six
Months Ended June 30, 2012 |
| |
GAAP |
<1> |
Non-GAAP |
| Operating income |
56,501 |
40,799 |
97,300 |
| Operating margin |
7.6% |
5.5% |
13.1% |
| |
|
|
|
| Net income attributable to the Company's
shareholders |
87,454 |
40,799 |
128,253 |
| Net margin |
11.7% |
5.5% |
17.2% |
| |
|
|
|
| Shares used in calculating basic net income
per share |
1,002,557,732 |
— |
1,002,557,732 |
| |
|
|
|
| Basic net income per ADS |
1.75 |
0.81 |
2.56 |
| Shares used in calculating diluted net income
per share |
1,006,123,724 |
— |
1,006,123,724 |
| |
|
|
|
| Diluted net income per ADS |
1.74 |
0.81 |
2.55 |
| |
|
|
|
| |
For The Six
Months Ended June 30, 2013 |
| |
GAAP |
<1> |
Non-GAAP |
| Operating income |
1,804 |
22,982 |
24,786 |
| Operating margin |
0.2% |
2.8% |
3.0% |
| |
|
|
|
| Net income attributable to the Company's
shareholders |
41,954 |
22,982 |
64,936 |
| Net margin |
5.1% |
2.8% |
7.9% |
| |
|
|
|
| Shares used in calculating basic net income
per share |
998,861,526 |
— |
998,861,526 |
| |
|
|
|
| Basic net income per ADS |
0.84 |
0.46 |
1.30 |
| Shares used in calculating diluted net income
per share |
1,002,278,510 |
— |
1,002,278,510 |
| |
|
|
|
| Diluted net income per ADS |
0.84 |
0.46 |
1.30 |
| |
|
|
|
| <1> share-based
compensation expenses. |
CONTACT: Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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