CNinsure Inc, (Nasdaq:CISG), (the "Company" or "CNinsure"), a
leading independent online-to-offline ("O2O") financial services
provider in China, today announced its unaudited financial results
for the first quarter ended March 31, 20151.
Financial Highlights for First
Quarter of 2015
- Total net revenues: RMB579.5 million (US$93.5
million), representing an increase of 24.3% from the corresponding
period in 2014.
- Operating income: RMB0.9
million (US$0.1million), representing a decrease of 93.6% from the
corresponding period in 2014.
- Non-GAAP operating income2: RMB25.0 million
(US$4.0 million), representing an increase of 24.3% from the
corresponding period in 2014. Total expenses incurred by online and
mobile initiatives were RMB24.1 million (US$3.9 million),
representing an increase of 249.8% from the corresponding period in
2014.
- Net income attributable to the Company's
shareholders: RMB33.0million (US$5.3 million),
representing a decrease of 26.2% from the corresponding period in
2014.
- Adjusted
EBITDA3 was RMB25.6 million
(US$4.1 million), representing a decrease of 33.7% from the
corresponding period in 2014.
- Basic and diluted net
income per ADS: RMB0.57 (US$0.09) and
RMB0.55 (US$0.09), respectively,representing a decrease of 35.9%
and 38.4%, respectively, from the corresponding period in
2014.
Business Highlights:
- CNpad Mobile App, a mobile insurance
transaction platform: During the first quarter of
2015, 8,338 copies of CNpad application ("CNpad App") were
downloaded and activated and CNpad App had 20,512 active users4. As
of March 31, 2015, 63,611 copies of CNpad App had been downloaded
and activated. In the first quarter of 2015, 173,000 insurance
policies were generated through CNpad App, with total insurance
premiums increasing by 163.7% year-over-year to approximately
RMB527.2 million (US$85.0 million), accounting for 30.4% of our
total retail insurance premiums.
- Baoxian.com, an online entry portal for
comparing and purchasing health, accident, travel and homeowner
insurance products: During the first quarter of 2015, Baoxian.com
had added 4,900 active customer accounts5. As of March 31, 2015,
Baoxian.com had approximately 180,000 registered customer accounts.
In the first quarter of 2015, transaction volume from Baoxian.com
increased 159.5% year-over-year to RMB5.7 million (US$0.9 million).
- Chetong.net, a public service platform for the
insurance industry integrating claims adjustment and auto service
resources: As of March 31, 2015, the total number
of service representatives registered on www.chetong.net was 13,724
and approximately 34,000 insurance claims submitted to the platform
were processed.
- eHuzhu, a non-profit online mutual aid
platform in China: As of March 31, 2015, the total
number of registered members of eHuzhu reached 291,716.
Commenting on the first quarter financial results, Mr. Chunlin
Wang, CNinsure's chief executive officer, stated, "The dynamics in
the Chinese insurance industry are changing rapidly. We are seeing
increasing labor costs imposing great challenges to the traditional
labor-driven business model and the rapid growth of the internet is
revolutionizing the insurance industry.
"Against this backdrop, we believe the best way to survive and
distinguish ourselves is to optimize the value of our professional
sales team by leveraging the internet and technology tools for
low-cost policy acquisition and service resources aggregation,
offering customized life insurance products and services based on
customers' personalized needs, and providing commercial insurance
brokerage and risk management advisory services. As such, we
remained focused on developing our online initiatives, life
insurance and brokerage businesses and we are glad that these
efforts have further enhanced our market position during the first
quarter of 2015. Our total insurance premiums reached RMB2.1
billion, up 17.7% year-over-year, marking a good start towards our
target of RMB10 billion in insurance premiums for 2015. This solid
growth was attributable to both strong property and casualty
("P&C") and life insurance sales. Our P&C business
experienced 18.7% year-over-year growth in insurance premiums,
ahead of the 12.6% growth in the overall P&C insurance sector
in China, with the portion consummated on CNpad App increasing from
14.6% to 34.7% of the retail P&C business year-over-year and
the insurance brokerage segment growing by over 80% in insurance
premiums year-over-year. We also had double-digit growth in life
insurance sales with new policy sales for long term life insurance
products up by over 50% year-over-year.
"Led by the strength of our insurance distribution business
segments, we continued to enjoy double-digit growth in the first
quarter of 2015, as we had for the past five quarters, with net
revenues up 24.3% year-over-year, again beating our guidance. We
were also pleased that the adoption of CNpad mobile App has
contributed significantly to decreasing costs and improving
operating efficiency, as evidenced by a decline in non-GAAP expense
ratio6 to 18.2% in the first quarter of 2015 from 22.2% in the same
period last year. Increased investments in our online initiatives
resulted in a decrease in operating income by 93.6% during the
quarter. However, if adjusted to exclude these investments,
operating income was up 24.3% year-over-year.
"With solid performance in the first quarter, we believe that we
are implementing the right strategy to drive our sales and improve
operating efficiency. Going forward, we will continue to step up
investments in technology and marketing to gain market share and
strengthen our leading market position."
Financial Results for the First Quarter
of 2015
Total net revenues were RMB579.5 million
(US$93.5 million) for the first quarter of 2015, representing an
increase of 24.3% from RMB466.2 million for the corresponding
period in 2014.
Net revenues for the insurance
agency business were RMB433.5 million (US$69.9 million)
for the first quarter of 2015, representing an increase of 23.3%
from RMB351.6 million for the corresponding period in 2014. The
increase was primarily driven by a 22.3% increase in net revenues
derived from the P&C insurance agency business and a 29.9%
increase in net revenues derived from the life insurance agency
business. The growth of the P&C insurance agency business was
primarily due to the growth of sales volume and an increase in the
commission rates that the Company received from the insurance
companies for whom the Company acts as their agents. The increase
in net revenues generated from the life insurance agency business
was primarily due to a 60% increase in commissions derived from new
long term life insurance policy sales, offsetting decreased renewal
commissions. Revenues generated from the insurance agency business
accounted for 74.8% of total net revenues in the first quarter of
2015.
Net revenues for the insurance
brokerage business were RMB86.1 million (US$13.9 million)
for the first quarter of 2015, representing an increase of 68.5%
from RMB51.1 million for the corresponding period in 2014. The
increase was primarily attributable to increased efforts to expand
sales channels, develop innovative product offerings and cultivate
markets in the past years. Revenues generated from the insurance
brokerage business accounted for 14.9% of total net revenues in the
first quarter of 2015.
Net revenues for the claims
adjusting business were RMB59.9 million (US$9.7 million)
for the first quarter of 2015, representing a decrease of 5.7% from
RMB63.5 million for the corresponding period in 2014. The decrease
was primarily due to (1) a decrease in non-automobile adjusting
business as there were fewer natural disasters as compared to the
same period last year, and (2) a slight decrease in a flattish the
automobile-related claims adjusting business primarily due to less
business commissioned by from one of our major clients who cut back
on outsourcing claims adjusting business to third party service
providers during the quarter. Revenues generated from the claims
adjusting business accounted for 10.3% of total net revenues in the
first quarter of 2015.
Total operating costs and expenses were
RMB578.6 million (US$93.3million) for the first quarter of 2015,
representing an increase of 27.7% from RMB453.0 million for the
corresponding period in 2014.
Total operating costs
were RMB449.1 million (US$72.4 million) for the first quarter of
2015, representing an increase of 31.1% from RMB342.5 million for
the corresponding period in 2014. The increase was primarily due to
sales growth.
Costs of insurance agency
business were RMB339.3 million (US$54.7 million) for the
first quarter of 2015, representing an increase of 27.9% from
RMB265.2 million for the corresponding period in 2014, primarily
driven by a 26.7% increase in costs for the P&C insurance
agency business and a 39.1% increase in costs for the life
insurance agency business. The costs grew faster than net revenues
for the P&C insurance agency business primarily due to
increased commissions paid-out to sales agents as a result of
increased market competition, offsetting the increase in commission
rates that we received from insurance companies. Costs incurred by
the insurance agency business accounted for 75.6% of total
operating costs in the first quarter of 2015.
Costs of insurance brokerage
business were RMB68.5 million (US$11.0 million) for the
first quarter of 2015, representing an increase of 72.1% from
RMB39.8 million for the corresponding period in 2014. The increase
was primarily due to sales growth. Costs incurred by the insurance
brokerage business accounted for 15.2% of total operating costs in
the first quarter of 2015.
Costs of claims adjusting
business were RMB41.3 million (US$6.7 million) for the
first quarter of 2015, representing an increase of 10.1% from
RMB37.5 million for the corresponding period in 2014. The increase
was primarily attributable to increased salaries for claims
adjustors. Costs incurred by the claims adjusting business
accounted for 9.2% of total operating costs in the first quarter of
2015.
Selling expenses were RMB27.2 million (US$4.4
million) for the first quarter of 2015, representing an increase of
12.3% from RMB24.2million for the corresponding period in 2014,
primarily attributable to increases in vehicle, office and
marketing expenses.
General and administrative expenses were
RMB102.4 million (US$16.5 million) for the first quarter of 2015,
representing an increase of 18.7% from RMB86.3 million for the
corresponding period in 2014. The increase was primarily due to:
(1) an increase of 20% in research and development expenses
incurred by CNpad and Baoxian.com to RMB8.3 million (US$1.3
million) in the first quarter of 2015 from RMB6.9 million for the
corresponding period in 2014, and (2) expenses of RMB15.9 million
(US$2.6 million) incurred by eHuzhu and Chetong.net in the first
quarter of 2015, offset by a decrease of 39% in share-based
compensation expenses from RMB7.6 million for the first quarter of
2014 to RMB4.6 million (US$0.7 million) for the corresponding
period of 2015. 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, operating
income was RMB0.9 million (US$0.1 million) for the first
quarter of 2015, representing a decrease of 93.6% from RMB13.2
million for the corresponding period in 2014.
Operating margin was 0.1% for the first quarter
of 2015, compared with 2.8% for the corresponding period in
2014.
Non-GAAP operating income was RMB25.0 million
(US$4.0 million) for the first quarter of 2015, representing an
increase of 24.3% from RMB20.1 million for the corresponding period
in 2014.
Non-GAAP operating margin was 4.3% for the
first quarter of 2015, as compared to 4.3% for the corresponding
period in 2014.
Investment income was RMB2.9 million (US$0.5
million) for the first quarter of 2015, representing a decrease of
59.5% from RMB7.2 million for the corresponding period in 2014.
Investment income represented income received from inter-bank
deposits in 2014 and collective trust funds in 2013. These
investments are classified as available for sales and investment
income is recognized when received. The decrease is due to less
investment income received in the first quarter of 2015.
Interest income was RMB18.6 million (US$3.0
million) for the first quarter of 2015, representing a decrease of
16.5% from RMB22.2 million for the corresponding period in 2014.
The decrease in interest income was primarily due to a decrease in
term deposits as a result of an increase in short-term investment,
and interest rate.
Income tax expense was RMB3.1 million (US$0.5
million) for the first quarter of 2015, representing a decrease of
57.2% from RMB7.3 million for the corresponding period in 2014. The
decrease was primarily due to decrease in operating income. The
effective tax rate for the first quarter of 2015 was 12.8% compared
with 17.0% for the corresponding period in 2014.
Share of income of affiliates was RMB7.8million
(US$1.3 million) for the first quarter of 2015, representing an
increase of 22.2% from RMB6.4 million for the corresponding period
in 2014, mainly attributable to an increase of profits from China
Financial Services Group, in which the Company owns 20.6% of the
equity interests.
Net income attributable to the Company's
shareholders was RMB33.0 million (US$5.3 million) for the
first quarter of 2015, representing a decrease of 26.2% from
RMB44.7million for the corresponding period in 2014.
Net margin was 5.7% for the first quarter of
2015 compared with 9.6% for the corresponding period in 2014.
Basic and diluted net
income per ADS were RMB0.57 (US$0.09) and
RMB0.55(US$0.09)for the first quarter of 2015, respectively,
representing a decrease of 35.9% and 38.4% from RMB0.89for the
corresponding period in 2014.
Adjusted EBITDA was
RMB25.6million (US$4.1 million) for the first quarter of 2015,
representing a decrease of 33.7% from RMB38.5 million for the
corresponding period in 2014.
Adjusted EBITDA margin was
4.4% for the first quarter of 2015, compared with 8.3% for the
corresponding period in 2014.
Diluted adjusted EBITDA per ADS was
RMB0.43 (US$0.07) for the first quarter of 2015, representing a
decrease of 44.6% from RMB0.77 for the corresponding period in
2014.
As of March 31, 2015, the Company had RMB2.0 billion
(US$318.0 million) in cash and cash
equivalents.
Recent Developments:
- On April 28, 2015, CNinsure entered into an agreement to bring
in Alltrust Insurance Company of China Limited, or Alltrust
Insurance, as a strategic investor. Pursuant to the agreement,
CNinsure will issue and sell 93,000,000 of its ordinary shares to
Alltrust Insurance, for an aggregate purchase price of US$42.32
million, or $0.455 per ordinary share ($9.10 per ADS), which is the
average closing price of the 20 trading days prior to the signing
date of the agreement. Upon completion of the transaction, Alltrust
Insurance will hold 7.5% of CNinsure's total share
capital. Completion of the transaction is subject to customary
closing conditions.
- In January 2015, CNinsure acquired an additional 36.5% of the
equity interest in Hebei Fanlian Insurance Agency Co., Ltd., or
Hebei Fanlian, for total consideration consisting of RMB40 million
(US$6.5 million) in cash and a 12.5% share of profit or loss in
Hebei Branch of CNinsure Lianxing Insurance Sales Co., Ltd.,
increasing our shareholdings in Hebei Fanlian from 51% to 87.5%.
- In January 2015, CNinsure acquired the remaining 49% of the
equity interest in Henan CNinsure Anlian Insurance Agency Co., Ltd.
or Henan Anlian, for a total consideration of RMB68 million
(US$11.0 million), increasing our shareholdings in Henan Anlian
from 51% to 100%.
- As of March 31, 2015, CNinsure's distribution and service
network consisted of 574 sales and services outlets operating in 27
provinces, compared with 492 sales and service outlets operating in
28 provinces as of March 31, 2014. CNinsure had 66,859 sales agents
and 1,434 professional claims adjustors as of March 31, 2015,
compared with 52,860 sales agents and representatives, and 1,401
professional claims adjustors as of March 31, 2014.
Business Outlook
CNinsure expects its total net revenues to grow approximately
30% for the second quarter of 2015 compared with the corresponding
period in 2014. 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 2015 results as per the following details.
Time: 9:00 PM Eastern Daylight Time on May 19, 2015
or 9:00 AM
Beijing/Hong Kong Time on May 20, 2015
The toll free 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 |
800-906-606 |
|
|
The toll dial-in numbers: |
|
China (Mainland) |
400-120-0654 |
Singapore & Other Areas |
+65-6723-9385 |
|
|
Conference ID #:41583585 |
|
Additionally, a live and archived web cast of this
call will be available at: http://ir.cninsure.net/events.cfm
About CNinsure Inc.
CNinsure Inc. is a leading independent online-to-offline
financial services provider. Through our online platforms and
offline sales and service network, we offer a wide variety of
financial products and services to individuals and businesses
including property and casualty and life insurance products. We
also provide insurance claims adjusting services, such as damage
assessments, surveys, authentications and loss estimations, as well
as value-added services, such as emergency vehicle roadside
assistance.
Our online platforms include (1) Baoxian.com, an online entry
portal for comparing and purchasing health, accident, travel and
homeowner insurance products; (2) CNpad, a mobile sales support
application; (3) Chetong.net, a public service platform for the
insurance industry and (4) eHuzhu (www.ehuzhu.com), a non-profit
online mutual aid platform in China. Our extensive distribution and
service network covers 27 provinces in China, including most
economically developed regions and cities.
For more information about CNinsure Inc., please visit
http://ir.cninsure.net/.
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, 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 non-GAAP operating income,
non-GAAP operating income margin, non-GAAP expense ratio, adjusted
EBITDA, adjusted EBITDA margin and diluted adjusted EBITDA per ADS,
which are non-GAAP financial measures. Non-GAAP operating income is
defined as operating income before expenses associated with the
Company's online and mobile initiatives including expenses relating
to the development, implementation and support of CNpad,
Baoxian.com, eHuzhu and Chetong.net. Non-GAAP operating income
margin is defined as non-GAAP operating income divided by total net
revenues. Non-GAAP expense ratio is defined as selling expenses and
general and administration expenses excluding expenses associated
with the Company's online and mobile initiatives. Adjusted EBITDA
is defined as net income before income tax expense, investment
income, interest income, depreciation, amortization and
compensation expenses associated with stock option. Adjusted EBITDA
margin is defined as adjusted EBITDA divided by total net revenues.
Diluted adjusted EBITDA per ADS is defined as adjusted EBITDA
divided by total number of ADS on a diluted basis. 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 such
measures exclude items that were significant in the first quarter
of 2015 and the corresponding period of 2014 as well as during the
fiscal year of 2014 and 2015, and these items have been, and will
continue to be, significant recurring factors in our business.
In light of these 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" and "Reconciliations of
Non-GAAP Operating Income and Non-GAAP Operating Income Margin" set
forth at the end of this release.
|
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets |
(In
thousands) |
|
|
As of December 31, |
As of March
31, |
As of March
31, |
|
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,103,068 |
1,971,727 |
318,072 |
Restricted cash |
7,478 |
9,153 |
1,477 |
Short term investments |
688,900 |
668,900 |
107,904 |
Accounts receivable, net |
186,150 |
215,307 |
34,733 |
Insurance premium receivables |
472 |
873 |
141 |
Other receivables |
88,149 |
84,944 |
13,702 |
Amounts due from related parties |
209,601 |
248,782 |
40,133 |
Other current assets |
17,908 |
20,210 |
3,260 |
Total current assets |
3,301,726 |
3,219,896 |
519,422 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant, and equipment, net |
47,171 |
41,984 |
6,773 |
Goodwill and intangible assets,
net |
165,072 |
161,199 |
26,004 |
Deferred tax assets |
2,638 |
4,674 |
754 |
Investment in affiliates |
219,703 |
227,549 |
36,707 |
Other non-current assets |
12,176 |
12,176 |
1,964 |
Total non-current
assets |
446,760 |
447,582 |
72,202 |
Total assets |
3,748,486 |
3,667,478 |
591,624 |
|
|
|
|
LIABILITIES AND EQUITY: |
Current liabilities: |
|
|
|
Accounts payable (including accounts payable
of the consolidated variable interest entities ("VIEs") without
recourse to CNinsure Inc. of RMB4,453 and RMB3,205 (US$517) as of
December 31, 2014 and March 31, 2015, respectively). |
128,765 |
119,169 |
19,224 |
Insurance premium payables (including
insurance premium payables of the consolidated VIEs without
recourse to CNinsure Inc. of RMB268 and RMB141 (US$23) as of
December 31, 2014 and March 31, 2015, respectively) |
2,942 |
2,420 |
390 |
Other payables and accrued expenses
(including other payables and accrued expense of the consolidated
VIEs without recourse to CNinsure Inc. of RMB7,099 and RMB1,468
(US$237) as of December 31, 2014 and March 31, 2015,
respectively) |
109,412 |
119,549 |
19,285 |
Accrued payroll (including accrued payroll of
the consolidated VIEs without recourse to CNinsure Inc. of RMB1,083
and RMB869 (US$140) as of December 31, 2014 and March 31, 2015,
respectively) |
40,096 |
33,296 |
5,371 |
Income tax payable (including income tax
payable of the consolidated of VIEs without recourse to CNinsure
Inc. of RMB2,571 and RMB2,644 (US$427) as of December 31, 2014 and
March 31, 2015, respectively) |
54,225 |
55,314 |
8,923 |
Total current
liabilities |
335,440 |
329,748 |
53,193 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Other tax liabilities |
53,855 |
56,938 |
9,185 |
Deferred tax liabilities |
24,931 |
24,047 |
3,879 |
Total
non-current liabilities |
78,786 |
80,985 |
13,064 |
Total liabilities |
414,226 |
410,733 |
66,257 |
|
|
|
|
Ordinary shares |
8,563 |
8,563 |
1,381 |
Additional paid-in capital |
2,601,401 |
2,509,512 |
404,826 |
Statutory reserves |
198,422 |
198,422 |
32,009 |
Retained earnings |
764,963 |
797,965 |
128,725 |
Accumulated other comprehensive loss |
(105,106) |
(106,153) |
(17,124) |
Subscription receivables |
(257,491) |
(257,259) |
(41,500) |
Total CNinsure Inc. shareholders'
equity |
3,210,752 |
3,151,050 |
508,317 |
Non-controlling interests |
123,508 |
105,695 |
17,050 |
Total equity |
3,334,260 |
3,256,745 |
525,367 |
Total liabilities and
equity |
3,748,486 |
3,667,478 |
591,624 |
|
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Statements of Income and Comprehensive
Income |
(In thousands, except
for shares and per share data) |
|
|
For The Three
Months Ended |
|
March
31, |
|
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
Net revenues: |
|
|
|
Agency |
351,598 |
433,532 |
69,936 |
Brokerage |
51,063 |
86,066 |
13,884 |
Claims adjusting |
63,543 |
59,903 |
9,663 |
Total net revenues |
466,204 |
579,501 |
93,483 |
Operating costs and
expenses: |
|
|
|
Agency |
(265,189) |
(339,280) |
(54,731) |
Brokerage |
(39,790) |
(68,470) |
(11,045) |
Claims adjusting |
(37,520) |
(41,307) |
(6,664) |
Total operating costs |
(342,499) |
(449,057) |
(72,440) |
Selling expenses |
(24,206) |
(27,184) |
(4,385) |
General and administrative
expenses |
(86,289) |
(102,408) |
(16,520) |
Total operating costs and
expenses |
(452,994) |
(578,649) |
(93,345) |
Income from
operations |
13,210 |
852 |
138 |
Other income, net: |
|
|
|
Investment income |
7,173 |
2,907 |
469 |
Interest income |
22,225 |
18,562 |
2,994 |
Others, net |
194 |
2,051 |
331 |
Income
before income taxes and income of affiliates |
42,802 |
24,372 |
3,932 |
Income tax expense |
(7,268) |
(3,109) |
(502) |
Share of income of affiliates |
6,419 |
7,846 |
1,266 |
Net income |
41,953 |
29,109 |
4,696 |
less: net loss attributable to noncontrolling
interests |
(2,748) |
(3,893) |
(628) |
Net income attributable to the
Company's shareholders |
44,701 |
33,002 |
5,324 |
|
|
|
|
Net income per
share: |
|
|
|
Basic |
0.04 |
0.03 |
— |
Diluted |
0.04 |
0.03 |
— |
|
|
|
|
Net income per
ADS: |
|
|
|
Basic |
0.89 |
0.57 |
0.09 |
Diluted |
0.89 |
0.55 |
0.09 |
|
|
|
|
Shares used in
calculating net income per share: Basic |
998,904,897 |
1,150,565,906 |
1,150,565,906 |
Diluted |
1,003,350,569 |
1,201,532,908 |
1,201,532,908 |
Net
income |
41,953 |
29,109 |
4,696 |
Other comprehensive income
(loss), net of tax: Foreign currency translation adjustments |
6,105 |
(815) |
(131) |
Comprehensive income |
48,058 |
28,294 |
4,565 |
Less: Comprehensive loss
attributable to the noncontrolling interests |
(2,748) |
(3,893) |
(628) |
Comprehensive income attributable to
the CNinsure Inc's shareholders |
50,806 |
32,187 |
5,193 |
|
|
CNINSURE
INC. |
Unaudited
Condensed Consolidated Statements of Cash
Flow |
(In
thousands) |
|
|
For The Three
Months Ended |
|
March
31, |
|
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
Net income |
41,953 |
29,109 |
4,696 |
Adjustments to reconcile net income
to net cash generated from (used in) operating
activities: |
|
|
|
Depreciation |
7,692 |
6,623 |
1,068 |
Amortization of intangible assets |
3,416 |
3,554 |
573 |
Allowance for doubtful receivables |
1,709 |
399 |
64 |
Compensation expenses associated with stock
option |
7,604 |
4,641 |
749 |
Investment income |
— |
(2,108) |
(340) |
Gain on disposal of property, plant and
equipment |
(31) |
(29) |
(5) |
Share of income of affiliates |
(6,419) |
(7,846) |
(1,266) |
Changes in operating assets and
liabilities |
(6,827) |
(37,991) |
(6,128) |
Net cash generated
from (used in) operating
activities |
49,097 |
(3,648) |
(589) |
Cash
flows used in investing activities: |
|
|
|
Purchase of property, plant and
equipment |
(1,452) |
(1,336) |
(215) |
Proceeds from disposal of property and
equipment |
51 |
248 |
40 |
Purchase of short term investments |
(50,000) |
— |
— |
Proceeds from short term
investments |
— |
22,108 |
3,566 |
Increase in restricted cash |
(7,685) |
(1,675) |
(270) |
Increase in other receivable |
(40,755) |
— |
— |
Return of investment in non-current
assets |
400 |
— |
— |
Increase in amounts due from related
parties |
(29,101) |
(35,773) |
(5,771) |
Net cash used in
investing activities |
(128,542) |
(16,428) |
(2,650) |
|
|
|
|
Cash
flows generated from
(used in) financing
activities: |
|
|
|
Acquisition of additional interests in
subsidiaries |
— |
(108,000) |
(17,422) |
Dividend distributed to noncontrolling
interests |
— |
(2,450) |
(395) |
Proceeds on exercise of stock
options |
2,346 |
— |
— |
Net cash generated from
(used in)financing
activities |
2,346 |
(110,450) |
(17,817) |
|
|
|
|
Net
decrease in cash and cash
equivalents |
(77,099) |
(130,526) |
(21,056) |
Cash and cash equivalents at
beginning of period |
2,288,623 |
2,103,068 |
339,259 |
Effect of exchange rate changes on cash and
cash equivalents |
6,105 |
(815) |
(131) |
Cash and cash equivalents at end of
period |
2,217,629 |
1,971,727 |
318,072 |
Interest paid |
— |
— |
— |
Income taxes paid |
7,971 |
2,194 |
354 |
|
|
CNINSURE
INC. |
Reconciliations
of Net Income to Adjusted EBITDA and Adjusted
EBITDA Margin |
(In
thousands,
unaudited) |
|
|
For The Three
Months Ended |
|
March
31, |
|
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
Net income |
41,953 |
29,109 |
4,696 |
Income tax expense |
7,268 |
3,109 |
502 |
Investment income |
(7,173) |
(2,907) |
(469) |
Interest income |
(22,225) |
(18,562) |
(2,994) |
Depreciation |
7,692 |
6,623 |
1,068 |
Amortization of intangible assets |
3,416 |
3,554 |
573 |
Compensation expenses associated with stock
option |
7,604 |
4,641 |
749 |
Adjusted EBITDA |
38,535 |
25,567 |
4,125 |
Total net revenues |
466,204 |
579,501 |
93,483 |
Adjusted EBITDA Margin |
8.3% |
4.4% |
4.4% |
|
|
CNINSURE
INC. |
Reconciliations
of Non-GAAP Operating Income and Non-GAAP
Operating income Margin |
(In
thousands,
unaudited) |
|
|
For The Three
Months Ended |
|
March
31, |
|
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
Operating income |
13,210 |
852 |
138 |
CNpad and Baoxian.com's R&D and promotion
expenses |
6,901 |
8,281 |
1,336 |
Chetong.net's R&D and promotion
expenses |
— |
1,889 |
305 |
eHuzhu's expenses |
— |
13,967 |
2,253 |
Total online spending
expenses |
6,901 |
24,137 |
3,894 |
Non-GAAP Operating
Income |
20,111 |
24,989 |
4,032 |
Total net revenues |
466,204 |
579,501 |
93,483 |
Non-GAAP Operating Income
Margin |
4.3% |
4.3% |
4.3% |
|
|
CNINSURE
INC. |
Reconciliations
of Non-GAAP
Expenses
Ratio |
(In
thousands,
unaudited) |
|
|
For The Three
Months Ended |
|
March
31, |
|
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
Selling expenses |
24,206 |
27,184 |
4,385 |
General and administrative
expenses |
86,289 |
102,408 |
16,520 |
Total expenses |
110,495 |
129,592 |
20,905 |
CNpad and Baoxian.com's R&D and
promotion expenses |
(6,901) |
(8,281) |
(1,336) |
Chetong.net's R&D and promotion
expenses |
— |
(1,889) |
(305) |
eHuzhu's expenses |
— |
(13,967) |
(2,253) |
Total online spending
expenses |
(6,901) |
(24,137) |
(3,894) |
Non-GAAP expenses |
103,594 |
105,455 |
17,011 |
Total net revenues |
466,204 |
579,501 |
93,483 |
Non-GAAP
expenses
ratio |
22.2% |
18.2% |
18.2% |
|
|
|
|
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
RMB6.1990 to US$1.00, the effective noon buying rate as of March
31, 2015 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 Non-GAAP operating income is defined as operating income
excluding expenses incurred by online and mobile initiatives such
as expenses relating to the development, implementation and support
of CNpad, Baoxian.com, eHuzhu and Chetong.net.
3 Adjusted EBITDA is defined as net income before income tax
expense, investment income, interest income, depreciation,
amortization and compensation expenses associated with stock
options.
4 Active users are defined as users who made at least one
purchase through CNpad App during the specified period.
5 Active customer accounts are defined as customer accounts that
made at least one purchase directly through www.baoxian.com or its
mobile application during the specified period.
6 Non-GAAP expense ratio equals the sum of selling expenses and
general and administrative expenses (excluding online spending
expenses) divided by revenue for the period.
CONTACT: For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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