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, 20141.
Financial Highlights for
First Quarter
of 2014
- Total net revenues: RMB466.2 million (US$75.0
million), representing an increase of 16.2% from the corresponding
period in 2013.
- Operating income: RMB13.2
million (US$2.1 million), representing an increase of 721.0% from
the corresponding period in 2013.
- Net income attributable to the Company's
shareholders: RMB44.7 million (US$7.2 million),
representing an increase of 112.6% from the corresponding period in
2013.
- Adjusted EBITDA2: RMB38.5 million (US$6.2
million), representing an increase of 23.6% from the corresponding
period in 2013.
- Adjusted EBITDA per ADS: RMB0.77 (US$0.12),
representing an increase of 23.6%,from the corresponding period in
2013.
Commenting on the first quarter financial results, Mr. Chunlin
Wang, CNinsure's chief executive officer, stated, "Our commitment
to offering superior value-added services and introducing our
mobile sales support system to a broader user base began to yield
meaningful contributions to our revenue during the beginning of
2014. In the first quarter of 2014, our insurance brokerage
business saw robust growth with its revenues up 1,488.3%
year-over-year and 81.3% quarter-over-quarter. This business
segment is one of the important drivers that brought us back to
both top-line and bottom-line growth. In addition to
higher-than-expected revenue growth of 16.2% compared to the first
quarter of 2013, we were encouraged to see improvements in
profitability as a result of increases in operating income,
adjusted EBITDA, and net income attributable to the Company's
shareholders, all of which outpaced revenue growth, reflecting our
effective cost and expense control. These inspiring results are a
good start towards achieving our targets for the full year.
"We were also excited about the contributions from CNpad, the
workstation of our proprietary mobile sales support system.
Insurance premiums generated via CNpad reached RMB199 million in
the first quarter, up 921.5% year-over-year and 67.4%
quarter-over-quarter, accounting for 14.6% of the total premiums of
our property and casualty ("P&C") insurance agency business as
compared to 8.2% in the previous quarter. In order to speed up the
introduction of our mobile sales support system to a broader user
base, we revised our marketing strategy from bundling hardware and
software sales to launching applications designed for mobile
devices that can be downloaded for free by sales agents and third
party channels onto their own devices. As a result, we stopped
promoting CNpad in March 2014 with an intent to roll out a new
marketing program on June 1, 2014. Our goal is to have a user base
of 50,000 sales agents by the end of 2014.
"As the first independent insurance intermediary that actively
invests in mobile internet technology and offers one-stop
comprehensive financial services and risk management solutions, we
believe our first quarter results demonstrate the strengthen of our
first-mover advantage and put us in a good position to fully
capitalize on the opportunities in the internet finance market by
executing on our strategies."
Changes in Segment Reporting
The Company has realigned its financial reporting structure into
four business segments to reflect its organizational restructuring
and changing business mix. Under the realigned business structure,
the four business segments are as follows:
(1) insurance agency business segment, which mainly provides
agency services of P&C insurance products and life insurance
products to individual clients,
(2) insurance brokerage business segment, which mainly provides
P&C and life insurance brokerage services to institutional
clients,
(3) claims adjusting segment, which provides pre-underwriting
survey, claim adjusting, disposal of residual value, loading and
unloading supervision and consulting services, and
(4) other services, which include non-insurance related
services.
The Company will begin to report results under the new reporting
segments starting the first quarter ended March 31, 2014.
Historical results reflecting the new business segments for the
corresponding period of the previous year are also presented in the
Company's financial reports.
Financial Results for the First
quarter of
2014
Total net revenues were RMB466.2 million
(US$75.0 million) for the first quarter of 2014, representing an
increase of 16.2% from RMB401.3 million for the corresponding
period in 2013.
Net revenues of insurance agency business were
RMB351.6 million (US$56.6 million) for the first quarter of 2014,
representing an increase of 2.4% from RMB343.3 million for the
corresponding period in 2013. The increase was primarily driven by
a 7.0% increase in P&C insurance agency business and offset by
a 20.6% decrease of life insurance agency business. Revenues
generated from insurance agency business accounted for 75.4% of the
total net revenues.
Net revenues of insurance brokerage business
were RMB51.1 million (US$8.2 million) for the first quarter of
2014, representing an increase of 1,488.3% from RMB3.2 million for
the corresponding period in 2013. The increase was primarily
attributable to the low base in this segment during the first
quarter of 2013 and more aggressive marketing strategies starting
from the fourth quarter of 2013 that resulted in an increase in
customer base. Revenues generated from the insurance brokerage
business accounted for 11.0% of the total net revenues.
Net revenues of claims adjusting business were
RMB63.5 million (US$10.2 million) for the first quarter of 2014,
representing an increase of 21.7% from RMB52.2 million for the
corresponding period in 2013. The increase was primarily
attributable to the growth of the non-auto insurance related claims
adjusting business which grew 40.5% in the first quarter of 2014
from the corresponding period in 2013 as a result of significant
increase in cases assigned to us and settled during the first
quarter of 2014. Revenues generated from the claims adjusting
business accounted for 13.6% of the total net revenues.
Net revenues of other services
were nil for the first quarter of 2014, representing a decrease of
100.0% from RMB2.5 million for the corresponding period in
2013.
Total operating costs and expenses were
RMB453.0 million (US$72.9 million) for the first quarter of 2014,
representing an increase of 13.3% from RMB399.7 million for the
corresponding period in 2013.
Total operating costs were RMB342.5 million
(US$55.1 million) for the first quarter of 2014, representing an
increase of 15.3% from RMB297.2 million for the corresponding
period in 2013. The increase was primarily due to sales growth.
Costs of insurance agency business were
RMB265.2 million (US$42.7 million) for the first quarter of 2014,
representing an increase of 0.2% from RMB264.7 million for the
corresponding period in 2013, primarily driven by a 5.3% increase
in cost of P&C insurance agency business and offset by a 30.2%
decrease in cost of life insurance agency business. The slower
growth of cost than net revenues of the insurance agency business
was primarily attributable to 1) slower decline of commission rates
that we received from insurance companies for the P&C agency
business than what we paid to our sales agents, and 2) growth of
renewal life insurance business which generally generates higher
gross margin than first year life insurance policies. Costs
incurred by the insurance agency business accounted for 77.4% of
the operating costs.
Costs of insurance brokerage business were
RMB39.8 million (US$6.4 million) for the first quarter of 2014,
representing an increase of 1,503.8% from RMB2.5 million for the
corresponding period in 2013. The increase was primarily due to
sales growth. Costs incurred by the insurance brokerage business
accounted for 11.6% of the operating costs.
Costs of claims adjusting business were RMB37.5
million (US$6.0 million) for the first quarter of 2014,
representing an increase of 34.4% from RMB27.9 million for the
corresponding period in 2013. The increase was primarily
attributable to sales growth and increased salaries for the claims
adjustors. Costs incurred by the claims adjusting business
accounted for 11.0% of the operating costs.
Cost of other services were nil for the first
quarter of 2014, representing a decrease of 100.0% from RMB2.0
million for the corresponding period in 2013.
Selling expenses were RMB24.2 million (US$3.9
million) for the first quarter of 2014, representing an increase of
20.4% from RMB20.1 million for the corresponding period in 2013.
The increase was primarily due to increases in vehicle, office and
marketing expenses.
General and administrative expenses were
RMB86.3 million (US$13.9 million) for the first quarter of 2014,
representing an increase of 4.7% from RMB82.4 million for the
corresponding period in 2013. The slight increase was primarily due
to:
(1) an 85.2% increase in research and development expenses from
RMB2.7 million for the first quarter of 2013 to RMB4.9 million
(US$0.8 million) for the corresponding period in 2014;
(2) a 17.5% increases in staff salary expenses from RMB28.2
million for the first quarter of 2013 to 33.2 million (US$5.3
million) for the corresponding period in 2014, offset by;
(3) a decrease of 40.5% in share-based compensation expenses,
from RMB12.8 million for the first quarter of 2013 to RMB7.6
million (US$1.2 million) for the first quarter of 2014. Share-based
compensation expenses 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.
As a result of the preceding factors, income from
operations was RMB13.2 million (US$2.1 million) for the
first quarter of 2014, representing an increase of 721.0% from
RMB1.6 million for the corresponding period in 2013.
Operating margin was 2.8% for the first quarter
of 2014, compared with 0.4% for the corresponding period in
2013.
Investment income was RMB 7.2 million (US$1.2
million) for the first quarter of 2014 as compared to nil for the
corresponding period in 2013, mainly representing yields from
collective trust products in which we've invested starting in March
2013.
Interest income was RMB22.2 million (US$3.6
million) for the first quarter of 2014, representing an increase of
3.2% from RMB21.5 million for the corresponding period in 2013. The
increase in interest income was primarily due to an increase in
interest bearing receivables from related parties.
Income tax expense was RMB7.3 million (US$1.2
million) for the first quarter of 2014, representing an increase of
16.6% from RMB6.2 million for the corresponding period in 2013
mainly due to an increase in operating income. The effective tax
rate for the first quarter of 2014 was 17.0% compared with 26.8%
for the corresponding period in 2013.
Share of income of affiliates was RMB6.4
million (US$1.0 million) for the first quarter of 2014,
representing an increase of 20.3% from RMB5.3 million for the
corresponding period in 2013,mainly representing an increase of
share of profits from China Financial Services Group Limited, in
which we owned 20.58% equity interest.
Net income attributable to the Company's
shareholders was RMB44.7 million (US$7.2 million) for the
first quarter of 2014, representing an increase of 112.6% from
RMB21.0 million for the corresponding period in 2013.
Net margin was 9.6% for the first quarter of
2014 compared with 5.2% for the corresponding period in 2013.
Basic and diluted net
income per ADS were RMB0.89 (US$0.14) and RMB0.89
(US$0.14)for the first quarter of 2014, respectively, representing
increases of 112.6% and 112.3% from RMB0.42 and RMB0.42 for the
corresponding period in 2013, respectively.
Adjusted EBITDA was RMB38.5 million
(US$6.2 million) for the first quarter of 2014, representing an
increase of 23.6% from RMB31.2 million for the corresponding period
in 2013.
Adjusted EBITDA margin
was 8.3% for the first quarter of 2014, compared with 7.8% for the
corresponding period in 2013.
Adjusted EBITDA per ADS was RMB0.77
(US$0.12) for the first quarter of 2014, representing an increase
of 23.6% for the corresponding period in 2013.
As of March 31, 2014, the Company had RMB2.2 billion (US$356.7
million) in cash and cash
equivalents.
Business Highlights:
- As of March 31, 2014, CNinsure's distribution and service
network consisted of 492 sales and services outlets operating in 28
provinces, compared with 481 sales and service outlets operating in
27 provinces as of March 31, 2013. CNinsure had 52,860 sales agents
and representatives and 1,401 professional claims adjustors as of
March 31, 2014, compared with 47,312 sales agents and
representatives, and 1,258 professional claims adjustors as of
March 31, 2013.
- In the first quarter 2014, CNinsure initiated projects to
develop electronic data interchange (the "EDI") connections with
PICC Property and Casualty Company Limited, China Life Property
& Casualty Insurance Company Limited and Sunshine Property and
Casualty Insurance Company Limited. The connections will facilitate
smoother data exchange for real-time quotations, applications,
transactions and underwriting of the auto insurance products
offered by the aforementioned companies through CNinsure's mobile
sales support system. As of March 31, 2014, the Company had already
established EDI connections with Taiping General Insurance Co.,
Ltd., Huatai Property Insurance Company, Ltd., Hua'an Property
Insurance Co., Ltd. Dinghe Property Insurance Co., Ltd. and
Alltrust Property Insurance Company Ltd.
- On April 30, 2014, CNinsure Times Insurance & Sales Service
Co., Ltd. ("CNinsure Times"), a wholly-owned subsidiary of
CNinsure, entered into a definitive agreement to acquire an
additional 70% equity interest of Jiaxing Lianbao Insurance Agency
Co., Ltd. ("Jiaxing Lianbao"), increasing the Company's
shareholdings in Jiaxing Lianbao to 100% from the 30% it previously
owned. The total consideration was RMB21 million, subject to the
fulfillment of certain earnings targets in 2014, 2015 and 2016,
respectively. Jiaxing Lianbao, founded in 2011, is primarily
engaged in the distribution of property and casualty insurance
products.
- On April 30, 2014, CNinsure Times entered into definite
agreements to acquire 100% equity interest of Wenzhou Huilian
Insurance Agency Co., Ltd. ("Wenzhou Huilian") and Nanjing Yukai
("Nanjing Yukai") Insurance Agency Co., Ltd., in order to expand
the Company's market presence in Wenzhou and Nanjing. The total
considerations for the acquisition of Wenzhou Huilian and Nanjing
Yukai are RMB16 million and RMB27 million, respectively, subject to
fulfillment of certain earnings targets for 2014, 2015 and 2016.
Wenzhou Huilian and Nanjing Yukai, which were founded in 2011 and
2008, respectively, are primarily engaged in the distribution of
property and casualty insurance products.
Business Outlook
CNinsure expects its total net revenues to grow by approximately
15% for the second quarter of 2014 compared with the corresponding
period in 2013. This forecast reflects CNinsure's current view,
which is subject to change.
Conference Call
The Company will host a conference call to discuss the first
quarter 2014 results as per the following details.
Time: |
9:00 PM Eastern Daylight Time on May 21,
2014 |
|
or 9:00 AM Beijing/Hong Kong Time on May 22,
2014 |
|
Regional toll free
dial-in numbers are as follows: |
|
United States |
1-855-500-8701 |
United Kingdom |
0800-015-9724 |
Canada |
1-855-757-1565 |
Taiwan |
0080-665-1951 |
Hong Kong |
800-903-737 |
|
|
Regional toll dial-in
numbers are as follows: |
|
|
China (Mainland) |
400-120-0654 |
Singapore & Other Areas |
+65-6723-9385 |
A replay of the call will be available for seven days by dialing
the following number: +61 2 9003 4211
Conference ID #: 43135839
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 the date
hereof, 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 adjusted EBITDA, adjusted
EBITDA margin and adjusted EBITDA per ADS, which are non-GAAP
financial measures. Adjusted EBITDA is defined as net income before
income tax expense, investment income, interest income,
depreciation, amortization and share-based compensation expenses.
Adjusted EBITDA margin is defined as adjusted EBITDA divided by
total net revenues. Adjusted EBITDA per ADS is defined as adjusted
EBITDA divided by total number of diluted shares. 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 items that were significant in the
first quarter of 2014 and the corresponding period of 2013, and
these items 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 Net Income to Adjusted EBITDA
and Adjusted EBITDA Margin" set forth at the end of this
release.
1 This announcement contains currency conversions 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
RMB6.2164 to US$1.00, the effective noon buying rate as of March
31, 2014 in The City of New York for cable transfers of RMB as set
forth in H.10 weekly statistical release of the Federal Reserve
Board.
2 Adjusted EBITDA is defined as net income before
income tax expense, investment income, interest income,
depreciation, amortization and share-based compensation
expenses.
CNINSURE
INC. |
Condensed Consolidated
Balance Sheets |
(In
thousands) |
|
|
|
|
|
As of December 31, |
As of March 31, |
As of March 31, |
|
2013 |
2014 |
2014 |
|
RMB |
RMB |
US$ |
|
(audited) |
(unaudited) |
(unaudited) |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,288,623 |
2,217,629 |
356,738 |
Restricted cash |
11,100 |
18,785 |
3,022 |
Short term investments |
253,900 |
303,900 |
48,887 |
Accounts receivable, net |
199,482 |
207,576 |
33,392 |
Insurance premium receivables |
57 |
246 |
40 |
Other receivables |
254,776 |
290,995 |
46,811 |
Deferred tax assets |
4,858 |
5,179 |
833 |
Amounts due from related parties |
144,371 |
175,986 |
28,310 |
Other current assets |
20,634 |
21,378 |
3,439 |
Total current assets |
3,177,801 |
3,241,674 |
521,472 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant, and equipment,
net |
69,562 |
63,303 |
10,183 |
Goodwill and intangible assets,
net |
107,668 |
104,252 |
16,770 |
Deferred tax assets |
3,382 |
2,523 |
406 |
Investment in affiliates |
189,241 |
195,660 |
31,475 |
Other non-current assets |
13,076 |
12,676 |
2,039 |
Total non-current
assets |
382,929 |
378,414 |
60,873 |
Total assets |
3,560,730 |
3,620,088 |
582,345 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable (including accounts payable
of the consolidated variable interest entities ("VIEs") without
recourse to CNinsure Inc. of RMB10,282 and RMB8,519 (US$1,370) as
of December 31, 2013 and March 31, 2014, respectively) |
92,324 |
99,426 |
15,994 |
Insurance premium payables (including
insurance premium payables of the consolidated VIEs without
recourse to CNinsure Inc. of RMB223 and RMB534 (US$86) as of
December 31, 2013 and March 31, 2014, respectively) |
4,066 |
11,633 |
1,871 |
Other payables and accrued expenses
(including other payables and accrued expense of the consolidated
VIEs without recourse to CNinsure Inc. of RMB21,129 and RMB22,323
(US$3,591) as of December 31, 2013 and March 31, 2014,
respectively) |
147,954 |
144,639 |
23,267 |
Accrued payroll (including accrued payroll of
the consolidated VIEs without recourse to CNinsure Inc. of RMB2,172
and RMB1,106 (US$178) as of December 31, 2013 and March 31, 2014,
respectively) |
39,089 |
30,347 |
4,882 |
Income tax payable (including income tax
payable of the consolidated of VIEs without recourse to CNinsure
Inc. of RMB2,603 and RMB2,603 (US$419) as of December 31, 2013 and
March 31, 2014, respectively) |
55,992 |
53,566 |
8,617 |
|
|
|
|
|
|
|
|
Total current
liabilities |
339,425 |
339,611 |
54,631 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Other tax liabilities |
50,735 |
52,638 |
8,468 |
Deferred tax liabilities |
23,808 |
23,071 |
3,711 |
Total non-current
liabilities |
74,543 |
75,709 |
12,179 |
Total liabilities |
413,968 |
415,320 |
66,810 |
|
|
|
|
Ordinary shares |
7,624 |
7,631 |
1,228 |
Additional paid-in capital |
2,329,962 |
2,338,298 |
376,150 |
Statutory reserves |
182,740 |
182,740 |
29,396 |
Retained earnings |
618,885 |
663,586 |
106,748 |
Accumulated other comprehensive
loss |
(111,114) |
(105,009) |
(16,892) |
Total CNinsure Inc. shareholders'
equity |
3,028,097 |
3,087,246 |
496,630 |
Non-controlling interests |
118,665 |
117,522 |
18,905 |
Total equity |
3,146,762 |
3,204,768 |
515,535 |
Total liabilities and
equity |
3,560,730 |
3,620,088 |
582,345 |
|
|
|
|
|
|
|
|
CNINSURE
INC. |
|
|
|
|
Condensed Consolidated
Statements of Income and Comprehensive Income |
(In thousands, except
for shares and per share data) |
|
|
|
|
|
For
The Three Months Ended |
|
March
31, |
|
2013 |
2014 |
2014 |
|
RMB |
RMB |
US$ |
|
(unaudited) |
(unaudited) |
(unaudited) |
Net revenues: |
|
|
|
Revenues of insurance agency
business |
343,297 |
351,598 |
56,560 |
Revenues of insurance brokerage
business |
3,215 |
51,063 |
8,214 |
Revenues of claims adjusting
business |
52,221 |
63,543 |
10,222 |
Revenues of other services |
2,529 |
— |
— |
Total net revenues |
401,262 |
466,204 |
74,996 |
Operating costs and
expenses: |
|
|
|
Costs of insurance agency business |
(264,717) |
(265,189) |
(42,659) |
Costs of insurance brokerage
business |
(2,481) |
(39,790) |
(6,401) |
Costs of claims adjusting Business |
(27,927) |
(37,520) |
(6,036) |
Costs of other services |
(2,044) |
— |
— |
Total operating costs |
(297,169) |
(342,499) |
(55,096) |
Selling expenses |
(20,103) |
(24,206) |
(3,894) |
General and administrative
expenses |
(82,381) |
(86,289) |
(13,881) |
Total operating costs and
expenses |
(399,653) |
(452,994) |
(72,871) |
Income from operations |
1,609 |
13,210 |
2,125 |
Other income, net: |
|
|
|
Investment income |
— |
7,173 |
1,154 |
Interest income |
21,545 |
22,225 |
3,575 |
Others, net |
109 |
194 |
31 |
Income before income taxes and income
of affiliates |
23,263 |
42,802 |
6,885 |
Income tax expense |
(6,233) |
(7,268) |
(1,169) |
Share of income of affiliates |
5,334 |
6,419 |
1,033 |
Net income |
22,364 |
41,953 |
6,749 |
Less: net income (loss) attributable to
non-controlling interests |
1,336 |
(2,748) |
(442) |
Net income attributable to the
Company's shareholders |
21,028 |
44,701 |
7,191 |
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
0.02 |
0.04 |
0.01 |
Diluted |
0.02 |
0.04 |
0.01 |
|
|
|
|
Net income per ADS: |
|
|
|
|
|
|
|
Basic |
0.42 |
0.89 |
0.14 |
Diluted |
0.42 |
0.89 |
0.14 |
|
|
|
|
Shares used in calculating net income
per share: |
|
|
|
|
|
|
|
Basic |
998,861,526 |
998,904,897 |
998,904,897 |
Diluted |
1,002,235,490 |
1,003,350,569 |
1,003,350,569 |
|
|
|
|
Net income |
22,364 |
41,953 |
6,749 |
|
|
|
|
Other comprehensive (loss) income, net of
tax: Foreign currency translation adjustments |
(755) |
6,105 |
982 |
Comprehensive income |
21,609 |
48,058 |
7,731 |
Less: Comprehensive income (loss)
attributable to the non-controlling interests |
1,336 |
(2,748) |
(442) |
Comprehensive income attributable to
the CNinsure Inc's shareholders |
20,273 |
50,806 |
8,173 |
|
|
|
|
|
|
|
|
CNINSURE
INC. |
Condensed Consolidated
Statements of Cash Flow |
(In
thousands) |
|
|
|
|
|
For
The Three Months Ended |
|
March
31, |
|
2013 |
2014 |
2014 |
|
RMB |
RMB |
US$ |
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
Net income |
22,364 |
41,953 |
6,749 |
Adjustments to reconcile net income
to net cash generated from operating activities: |
|
|
|
Depreciation |
7,936 |
7,692 |
1,237 |
Amortization of intangible assets |
3,416 |
3,416 |
550 |
Allowance for doubtful receivables |
749 |
1,709 |
275 |
Compensation expenses associated with stock
option |
12,780 |
7,604 |
1,223 |
Loss (gain) on disposal of property, plant
and equipment |
— |
(31) |
(5) |
Share of income of affiliates |
(5,334) |
(6,419) |
(1,033) |
Changes in operating assets and
liabilities |
(50,311) |
(6,827) |
(1,098) |
Net cash (used in) generated from
operating activities |
(8,400) |
49,097 |
7,898 |
|
|
|
|
Cash flows generated from (used in)
investing activities: |
|
|
|
Purchase of property, plant and
equipment |
(5,498) |
(1,452) |
(234) |
Proceeds from disposal of property and
equipment |
14 |
51 |
8 |
Purchase of short term investments |
(95,000) |
(50,000) |
(8,043) |
Increase in restricted cash |
(166) |
(7,685) |
(1,236) |
Increase in other receivable |
— |
(40,755) |
(6,556) |
Return of investment in non-current
assets |
— |
400 |
64 |
Decrease (increase) in amounts due from
related parties |
40,071 |
(29,101) |
(4,681) |
Net cash used in investing
activities |
(60,579) |
(128,542) |
(20,678) |
|
|
|
|
|
|
|
|
Cash flows generated from financing
activities: |
|
|
|
Capital injection by non-controlling
interests |
2,450 |
— |
— |
Proceeds on exercise of stock
options |
— |
2,346 |
377 |
Net cash generated from financing
activities |
2,450 |
2,346 |
377 |
|
|
|
|
Net decrease in cash and cash
equivalents |
(66,529) |
(77,099) |
(12,403) |
Cash and cash equivalents at
beginning of period |
2,525,618 |
2,288,623 |
368,159 |
Effect of exchange rate changes on cash and
cash equivalents |
(755) |
6,105 |
982 |
Cash and cash equivalents at end of
period |
2,458,334 |
2,217,629 |
356,738 |
Interest paid |
— |
— |
— |
Income taxes paid |
9,497 |
7,971 |
1,282 |
|
|
|
|
|
|
|
|
CNINSURE
INC. |
Reconciliations of Net
Income to Adjusted EBITDA and Adjusted EBITDA Margin |
(In
thousands) |
|
|
|
|
|
For
The Three Months Ended |
|
March
31, |
|
2013 |
2014 |
2014 |
|
RMB |
RMB |
US$ |
|
(unaudited) |
(unaudited) |
(unaudited) |
Net income |
22,364 |
41,953 |
6,749 |
Income tax expense |
6,233 |
7,268 |
1,169 |
Investment income |
— |
(7,173) |
(1,154) |
Interest income |
(21,545) |
(22,225) |
(3,575) |
Depreciation |
7,936 |
7,692 |
1,237 |
Amortization of intangible assets |
3,416 |
3,416 |
550 |
Compensation expenses associated with stock
option |
12,780 |
7,604 |
1,223 |
Adjusted EBITDA |
31,184 |
38,535 |
6,199 |
Total net revenues |
401,262 |
466,204 |
74,996 |
Adjusted EBITDA Margin |
7.8% |
8.3% |
8.3% |
|
|
|
|
CONTACT: For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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