NEW YORK, July 27, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on CNinsure Inc.
(NASDAQ: CISG). Select highlights from the internally released
reports are being made available to the general public (included
below), with access to the entirety of the research available to
new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=CISG
Highlights from our CISG Report include:
- Strong Top-line Growth - On
May 19, 2015, CNinsure Inc. announced
its financial results for the first quarter ended March 31, 2015. The China-based online-to-offline financial
services provider recorded a 24.3% YoY growth in total net revenues
at RMB579.5 million (US$93.5 million), primarily driven by strong
growth in insurance agency and insurance brokerage businesses. For
the next quarter ending June 2015,
CNinsure Inc. remains hopeful for c. 30% YoY increase in its total
net revenues.
- A Closer Look at the Segmental Revenue - Revenue
from the insurance agency business grew by 23.3% YoY to
RMB433.5 million (US$69.9 million) during the quarter, supported by
a 22.3% YoY increase in net revenues from the property and casualty
(P&C) insurance agency business and a 29.9% YoY increase in net
revenues from the life insurance agency business. Additionally, the
insurance brokerage business registered a robust growth of 68.5%
YoY to RMB86.1 million (US$13.9 million) for Q1 2015, driven by
CNinsure's efforts to expand sales channels, develop innovative
product offerings and cultivate markets in the past years.
Meanwhile, net revenues for the claims adjusting business decreased
5.7% YoY in Q1 2015 to RMB59.9
million (US$9.7 million),
reflecting a decline in non-automobile adjusting business and a
slight decrease in automobile-related claims adjusting
business.
- Operating Performance at a Glance - During
the quarter under review, operating income declined 93.6% YoY to
RMB0.9 million (US$0.1 million) due to a notable increase in
total operating costs and expenses. Total operating costs and
expenses grew 27.7% YoY to RMB578.6
million (US$93.3million), of
which total operating costs accounted for RMB449.1 million (US$72.4
million). However, on a non-GAAP basis, operating income
grew 24.3% YoY to RMB25.0 million
(US$4.0 million), while non-GAAP
operating margin remained unchanged at 4.3% in Q1 2015.
- Bottom-line Remained Positive- Net income
attributable to the Company's shareholders declined 26.2% YoY to
RMB33.0 million (US$5.3 million). Consequently, diluted net income
per ADS came in at RMB0.55
(US$0.09), down 38.4% YoY. Factors
like decrease in investment and interest income impacted the
bottom-line. While investment income declined 59.5% to RMB2.9 million (US$0.5
million) in Q1 2015, interest income fell 16.5% YoY to
RMB18.6 million (US$3.0 million). 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.
To find out how this influences our rating on CNinsure Inc.,
read the full report in its entirety here:
http://www.aciassociation.com/?c=CISG
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