- Quarterly Net Revenues Beat Guidance, up
32.2%
- Diluted Adjusted EBITDA per ADS up 18.1% to
US$0.16
CNinsure Inc, (Nasdaq:CISG), (the "Company" or "CNinsure"), a
leading independent online-to-offline ("O2O") financial services
provider in China, today announced its unaudited financial results
for the third quarter ended September 30, 20151.
Financial Highlights for Third
quarter of 2015
|
|
2014 Q3 |
2015 Q3 |
2015 Q3 |
|
(In thousands, except per
ADS) |
(RMB) |
(RMB) |
(US$) |
Change
% |
Total net revenues |
542,335 |
716,744 |
112,774 |
32.2% |
Operating income |
883 |
22,548 |
3,548 |
2,453.6% |
Online spending expenses (1) |
17,013 |
19,375 |
3,048 |
13.9% |
Non-GAAP operating income (2) |
17,896 |
41,923 |
6,596 |
134.3% |
Net income attributable to |
34,788 |
41,876 |
6,589 |
20.4% |
the Company's shareholders |
|
|
|
|
Adjusted EBITDA (3) |
43,463 |
61,351 |
9,652 |
41.2% |
Basic net income per ADS |
0.70 |
0.73 |
0.11 |
4.6% |
Diluted Adjusted EBITDA Per
ADS |
0.87 |
1.02 |
0.16 |
18.1% |
(1) Online spending expenses is
defined as 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. Chetong.net was
disposed in the third quarter of 2015 and expenses related to
Chetong.net were not included in online spending expenses starting
from the third quarter of 2015. |
|
|
|
|
|
(2) Non-GAAP operating
income is defined as operating income excluding online spending
expenses. |
|
|
|
|
|
(3) Adjusted EBITDA is
defined as net income before income tax expense, investment income,
interest income, depreciation, amortization, compensation expenses
associated with stock options, and online spending expenses. |
Business Highlights:
- CNpad Mobile App, a mobile insurance
transaction platform: During the third quarter of
2015, an additional 17,127 copies of CNpad application ("CNpad
App") were downloaded and activated, increasing the total number of
downloaded and activated CNpad Apps to 93,230 as of September 30,
2015. CNpad App had approximately 30,752 active users2 during the
third quarter of 2015 compared with 28,000 active users during the
second quarter of 2015. In the third quarter of 2015, total
insurance premiums generated by CNpad App increased by 127.8%
compared to the third quarter of 2014 and 25.4% over the second
quarter of 2015 to approximately RMB795.7 million (US$125.2
million).
- Baoxian.com, an online entry portal for
comparing and purchasing health, accident, travel and homeowner
insurance products: During the third quarter of 2015, Baoxian.com
had 13,469 active customer accounts compared with 13,460 active
customer accounts during the second quarter of 20153. In the third
quarter of 2015, transaction volume from Baoxian.com decreased 50%
quarter-over-quarter to RMB10.6 million (US$1.7 million).
- eHuzhu, a non-profit online mutual aid
platform in China: During the third quarter of
2015, the total number of registered members of eHuzhu increased
54.3% compared to the second quarter of 2015 to approximately
540,000.
Commenting on the third quarter 2015 financial results, Mr.
Chunlin Wang, chief executive officer of CNinsure, said, "Despite
slower economic growth in China, we had a strong third quarter. We
delivered solid top line growth and our operating margins expanded,
which translated into a twenty-five fold year-over-year growth in
operating income, reflecting the positive results of our
organizational restructuring and strategic transformation.
"Our total net revenues again grew more than expected,
increasing by 32.2% year-over-year in the third quarter of 2015,
due to the outstanding performance across our various businesses
and contribution from CNpad mobile App. A few key driving factors
include:
1) Strong growth within our life insurance business. Benefiting
from the rising demand for traditional life insurance products in a
low interest rate environment, along with the successful
implementation of our cross-selling strategy, new term life
insurance policy sales went up by 117.8% year-over-year, pushing up
revenues from our life insurance business by 91.6%
year-over-year;
2) Recovery of our claims adjusting business. Our claims
adjusting business rebounded from its downturn in the past three
quarters to achieve 17.2% year-over-year growth;
3) Continued robust growth of property and casualty ("P&C")
insurance business. Net revenues from P&C insurance agency
business and insurance brokerage business grew 27.1% and 34.2%
year-over-year, respectively. P&C insurance premiums (which
combines our P&C insurance agency and insurance brokerage
businesses) were up 15.0% year-over-year, consistently outpacing
the 10.1% growth in the overall P&C insurance sector in China;
and
4) Increasing contribution from CNpad mobile App. With continued
migration to mobile, insurance premiums generated through CNpad App
exceeded RMB795.7 million in the third quarter of 2015, an increase
of 127.8% year-over-year, and over 60% of our auto insurance
business and over 50% of new term life insurance business were
transacted through CNpad App. Revenue attributable to CNpad App
accounted for 32.9% of our total net revenues, as compared to 25.8%
during the previous quarter.
"We also saw back-office efficiency improvement as a result of
the increased adoption of CNpad App, evidenced by a drop in
non-GAAP operating expense ratio from 18.8% a year-ago to 17.4%,
continuing a trend that has been witnessed in the past two
quarters.
"Given the strong performance of our business and the Chinese
Insurance Regulatory Commission's recent relaxation of regulations
over the establishment of insurance intermediary companies and
removal of the certificate requirement for sales agents to conduct
business, we believe the opportunity for us to consolidate market
resources has never looked more promising. During the third quarter
of 2015, we made steady progress in further extending our sales
network footprint and expanding our sales force. We also showed
that our migration to the Internet channel, marked by strong mobile
adoption, continued undeterred and ahead of plan, with strong
annual and quarterly increases in active users and even faster
increase in monetization. As we execute these plans to drive
further business growth and gain market share, we remain confident
about our growth outlook going forward. "
Financial Results for the Third Quarter
of 2015
Total net revenues were RMB716.7 million
(US$112.8 million) for the third quarter of 2015, representing an
increase of 32.2% from RMB542.3 million for the corresponding
period in 2014.
Net revenues for the insurance
agency business were RMB543.8 million (US$85.6 million)
for the third quarter of 2015, representing an increase of 34.4%
from RMB404.7 million for the corresponding period in 2014. The
increase was primarily driven by a 27.1% increase in net revenues
derived from the P&C insurance agency business, from RMB359.0
million for the third quarter of 2014 to RMB456.2 million (US$71.8
million) for the third quarter of 2015, and a 91.6% increase in net
revenues derived from the life insurance agency business, from
RMB45.7 million for the third quarter of 2014 to RMB87.6 million
(US$13.8 million) for the third quarter of 2015. 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 agent. The increase in net revenues generated from the life
insurance agency business was primarily due to a 130.2% increase in
commissions derived from new long-term life insurance policy sales
and an 11.2% increase in renewal commissions, offset by a decline
in commissions derived from short term life insurance products. The
strong sales of new long-term life insurance products was because
life insurance products became more attractive due to a narrowing
of the gap in yields between life insurance products and savings
deposits or wealth management products because of lower interest
rates. Revenues generated from the insurance agency business
accounted for 75.9% of total net revenues in the third quarter of
2015.
Net revenues for the insurance
brokerage business were RMB91.0 million (US$14.3 million)
for the third quarter of 2015, representing an increase of 34.2%
from RMB67.8 million for the corresponding period in 2014. This
growth was primarily attributable to continued efforts to cultivate
markets and build customer relationship. Revenues generated from
the insurance brokerage business accounted for 12.7% of total net
revenues in the third quarter of 2015.
Net revenues for the claims
adjusting business were RMB81.9 million (US$12.9 million)
for the third quarter of 2015, representing an increase of 17.2%
from RMB69.9 million for the corresponding period in 2014. The
increase was primarily due to increased marketing efforts during
the quarter. Revenues generated from the claims adjusting business
accounted for 11.4% of total net revenues in the third quarter of
2015.
Total operating costs and expenses were
RMB694.2 million (US$109.2 million) for the third quarter of 2015,
representing an increase of 28.2% from RMB541.5 million for the
corresponding period in 2014.
Total operating costs
were RMB544.1 million (US$85.6 million) for the third quarter of
2015, representing an increase of 30.1% from RMB418.1 million for
the corresponding period in 2014. The increase was primarily due to
sales growth.
Costs of insurance agency
business were RMB424.0 million (US$66.7 million) for the
third quarter of 2015, representing an increase of 33.0% from
RMB318.8 million for the corresponding period in 2014, primarily
driven by a 27.7% increase in costs for the P&C insurance
agency business, from RMB287.0 million for the third quarter of
2014 to RMB366.5 million (US$57.7 million) for the third quarter of
2015, and a 80.8% increase in costs for the life insurance agency
business, from RMB31.8 million for the third quarter of 2014 to
RMB57.5 million (US$9.1 million) for the third quarter of 2015.
Costs incurred by the insurance agency business accounted for 77.9%
of total operating costs in the third quarter of 2015.
Costs of insurance brokerage
business were RMB72.4 million (US$11.4 million) for the
third quarter of 2015, representing an increase of 33.2% from
RMB54.4 million for the corresponding period in 2014. The increase
largely tracked sales growth. Costs incurred by the insurance
brokerage business accounted for 13.3% of total operating costs in
the third quarter of 2015.
Costs of claims adjusting
business were RMB47.6 million (US$7.5 million) for the
third quarter of 2015, representing a slight increase of 6.1% from
RMB44.9 million for the corresponding period in 2014. The increase
was consistent with the increase in net revenues. Costs incurred by
the claims adjusting business accounted for 8.8% of total operating
costs in the third quarter of 2015.
Selling expenses were
RMB29.2 million (US$4.6 million) for the third quarter of 2015,
representing an increase of 8.4% from RMB27.0 million for the
corresponding period in 2014, primarily due to an increase in sales
and marketing activities.
General and administrative
expenses were RMB120.9 million (US$19.0 million) for the
third quarter of 2015, representing an increase of 25.4% from
RMB96.4 million for the corresponding period in 2014. The increase
was primarily due to a combination of the following factors:
1) an increase of 13.9% in expenses
incurred by online and mobile initiatives, from RMB17.0 million in
the third quarter of 2014 to RMB19.4 million (US$3.0 million) for
the same period in 2015;
2) an increase of 34.9% in share-based
compensation expenses from RMB4.6 million for the third quarter of
2014 to RMB6.2 million (US$1.0 million) for the same period in
2015. The increase in share-based compensation expenses was mainly
due to a share incentive charge incurred by CNinsure Insurance
Surveyors & Loss Adjustors Holding Co., Ltd. ("CISLA"), a
subsidiary of CNinsure; offset by
3) a decrease of depreciation expenses
from RMB7.1 million for the third quarter of 2014 to RMB3.5 million
(US$0.5 million) for the same period in 2015.
As a result of the preceding factors, operating
income was RMB22.5 million (US$3.5 million) for the third
quarter of 2015, representing an increase of 2,453.6% from RMB0.9
million for the corresponding period in 2014.
Operating margin was 3.1% for the third quarter
of 2015, compared with 0.2% for the corresponding period in
2014.
Non-GAAP operating income was RMB41.9 million
(US$6.6 million) for the third quarter of 2015, representing an
increase of 134.3% from RMB17.9 million for the corresponding
period in 2014.
Non-GAAP operating margin was 5.8% for the
third quarter of 2015, as compared to 3.3% for the corresponding
period in 2014.
Investment income was RMB10.4 million (US$1.6
million) for the third quarter of 2015, representing an increase of
17.6% from RMB8.8 million for the corresponding period in 2014,
primarily due to the capital gains derived from the disposal of
Shenzhen Chetong Network Co., Ltd., a subsidiary of CNinsure,
during the third quarter of 2015, offset by a decrease in
investment income derived from the short-term investment in
financial products during the quarter. These short-term investments
mainly represented inter-bank deposits with a term of one to two
years, which pay interests on a semi-annual and annual basis.
Because these investments are classified as available for sale and
investment income is recognized when received, investment income
may fluctuate from quarter to quarter.
Interest income was RMB12.9 million (US$2.0
million) for the third quarter of 2015, representing a decrease of
33.4% from RMB19.4 million for the corresponding period in 2014.
The decrease in interest income was primarily due to decreases in
interest rates and term deposits as a result of an increase in
short-term investments.
Income tax expense was RMB4.0 million (US$0.6
million) for the third quarter of 2015, representing a decrease of
5.7% from RMB4.2 million for the corresponding period in 2014. The
decrease was primarily due to non-taxable capital gains generated
from the disposal of Chetong.net and utilization of tax loss
carryforward which was previously recognized as deferred tax
allowance . The effective tax rate for the third quarter of 2015
was 8.1% compared with 13.9% for the corresponding period in
2014.
Share of income of affiliates was RMB4.1
million (US$0.6 million) for the third quarter of 2015,
representing a decrease of 48.6% from RMB8.0 million for the
corresponding period in 2014, mainly attributable to a decrease of
profit from China Financial Services Group, in which the Company
owns 20.6% of the equity interests, largely due to 1) narrower
interest spread as a result of downwards adjustment in interest
rates that it charged its customers for retail loans because of
higher liquidity in the market; and 2) increased marketing expenses
related to its online platform.
Net income attributable to the Company's
shareholders was RMB41.9 million (US$6.6 million) for the
third quarter of 2015, representing an increase of 20.4% from
RMB34.8 million for the corresponding period in 2014.
Net margin was 5.8% for the third quarter of
2015 compared with 6.4% for the corresponding period in 2014.
Basic and diluted net
income per ADS were RMB0.73 (US$0.11) and RMB0.70
(US$0.11) for the third quarter of 2015, respectively, representing
an increase of 4.6% and 0.7% from RMB0.70 and RMB0.69 for the
corresponding period in 2014, respectively.
Adjusted EBITDA was RMB61.4
million (US$9.7 million) for the third quarter of 2015,
representing an increase of 41.2% from RMB43.5 million for the
corresponding period in 2014.
Adjusted EBITDA margin was
8.6% for the third quarter of 2015, compared with 8.0% for the
corresponding period in 2014.
Diluted adjusted EBITDA per ADS was
RMB1.02 (US$0.16) for the third quarter of 2015, representing an
increase of 18.1% from RMB0.87 for the corresponding period in
2014. As of September 30, 2015, the Company had RMB1.5 billion
(US$238.1 million) in cash and cash
equivalents.
Recent Developments:
- On November 9, 2015, CNinsure's subsidiary, CISLA filed an
application with the National Equities Exchange and Quotations to
list on the New Third Board, an emerging over-the-counter stock
exchange in China. In order to facilitate the listing, CISLA
commenced a series of corporate restructurings and issued new
shares to CISLA's management and key employees. As a result of the
restructuring and the new share issuance, CNinsure's shareholdings
in CISLA was diluted from 51% to 44.7% and the remaining equity
interests of CISLA were jointly owned by its founders, management
and employees. CNinsure remains the largest shareholder of CISLA
and will continue to exercise substantial control over CISLA after
the proposed listing through agreements made with minority
shareholders. Meanwhile, in order to align the interests of the
founding team of Chetong.net with the growth of the platform,
Guangdong CNinsure Fangzhong Investment Management Co., Ltd., in
which CNinsure owns 51% of the equity interests, transferred its
equity interests in Shenzhen Chetong Network Co., Ltd. ("Chetong
Network"), the operating entity of Chetong.net, to CISLA and the
management and employees of Chetong Network. As a result, CISLA and
the management and employees of Chetong Network hold 19.9% and
80.1% of the equity interests of Chetong Network, respectively.
- On November 7, 2015, in recognition of its outstanding
performance in 2015, CNinsure was awarded Insurance Intermediary of
the Year 2015 at the 10th China Insurance Innovation Award
Ceremony.
- As of September 30, 2015, CNinsure's distribution and service
network consisted of 574 sales and services outlets operating in 27
provinces, compared with 548 sales and service outlets operating in
27 provinces as of September 30, 2014. CNinsure had 77,260 sales
agents and 1,501 professional claims adjustors as of September 30,
2015, compared with 57,143 sales agents, and 1,473 professional
claims adjustors as of September 30, 2014.
Business Outlook
CNinsure expects its total net revenues to grow approximately
30% in the fourth 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 its third
quarter 2015 results as per the following details.
Time: 8:00 PM Eastern Daylight Time on November 19, 2015 or 9:00
AM Beijing/Hong Kong Time on November 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 |
+65-6713-5440 |
|
|
Conference ID #:68836026 |
|
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 and (3) 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. Along with other sections, management
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. Following the disposal of
Chetong.net in the third quarter of 2015, expenses related to
Chetong.net were not included in online expenses starting from the
third quarter of 2015. 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 and share-based
compensation expenses divided by total net revenues. Adjusted
EBITDA is defined as net income before income tax expense,
investment income, interest income, depreciation, amortization,
compensation expenses associated with stock option and expenses
incurred on online and mobile initiatives. 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 third quarter
of 2015 and the corresponding period of 2014, 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 Non-GAAP Operating Income and
Non-GAAP Operating Income Margin", "Reconciliation of Non-GAAP
Expenses Ratio" and "Reconciliations of Net Income to Adjusted
EBITDA and Adjusted EBITDA Margin" set forth at the end of this
release.
CNINSURE
INC. |
Unaudited Condensed
Consolidated Balance Sheets |
(In
thousands) |
|
|
|
|
|
As of December 31, |
As of September 30, |
As of September 30, |
|
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,103,068 |
1,513,438 |
238,127 |
Restricted cash |
7,478 |
15,814 |
2,488 |
Short term investments |
688,900 |
1,375,000 |
216,345 |
Accounts receivable, net |
186,150 |
249,111 |
39,195 |
Insurance premium receivables |
472 |
316 |
50 |
Other receivables |
88,149 |
75,055 |
11,809 |
Amounts due from related parties |
209,601 |
105,153 |
16,545 |
Other current assets |
17,908 |
22,003 |
3,462 |
Total current assets |
3,301,726 |
3,355,890 |
528,021 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant, and equipment,
net |
47,171 |
35,391 |
5,568 |
Goodwill and intangible assets,
net |
165,072 |
155,452 |
24,459 |
Deferred tax assets |
2,638 |
1,826 |
287 |
Investment in affiliates |
219,703 |
244,147 |
38,415 |
Other non-current assets |
12,176 |
24,208 |
3,809 |
Total non-current
assets |
446,760 |
461,024 |
72,538 |
Total assets |
3,748,486 |
3,816,914 |
600,559 |
|
|
|
|
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 RMB3,087 (US$486) as of
December 31, 2014 and September 30, 2015, respectively) |
128,765 |
155,832 |
24,519 |
Insurance premium payables (including
insurance premium payables of the consolidated VIEs without
recourse to CNinsure Inc. of RMB268 and RMB1,959 (US$308) as of
December 31, 2014 and September 30, 2015, respectively) |
2,942 |
5,089 |
801 |
Other payables and accrued expenses
(including other payables and accrued expense of the consolidated
VIEs without recourse to CNinsure Inc. of RMB7,099 and RMB2,978
(US$469) as of December 31, 2014 and September 30, 2015,
respectively) |
109,412 |
130,130 |
20,475 |
Accrued payroll (including accrued payroll of
the consolidated VIEs without recourse to CNinsure Inc. of RMB1,083
and RMB1,146 (US$180) as of December 31, 2014 and September 30,
2015, respectively) |
40,096 |
41,341 |
6,504 |
Income tax payable (including income tax
payable of the consolidated of VIEs without recourse to CNinsure
Inc. of RMB2,571 and RMB1,520 (US$239) as of December 31, 2014 and
September 30, 2015, respectively) |
54,225 |
56,553 |
8,898 |
Total current
liabilities |
335,440 |
388,945 |
61,197 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Other tax liabilities |
53,855 |
66,331 |
10,437 |
Deferred tax liabilities |
24,931 |
22,619 |
3,559 |
Total non-current
liabilities |
78,786 |
88,950 |
13,996 |
Total liabilities |
414,226 |
477,895 |
75,193 |
|
|
|
|
Ordinary shares |
8,563 |
8,573 |
1,349 |
Additional paid-in capital |
2,601,401 |
2,465,131 |
387,868 |
Statutory reserves |
198,422 |
197,702 |
31,107 |
Retained earnings |
764,963 |
920,680 |
144,861 |
Accumulated other comprehensive
loss |
(105,106) |
(93,697) |
(14,743) |
Subscription receivables |
(257,491) |
(263,757) |
(41,500) |
Total CNinsure Inc. shareholders'
equity |
3,210,752 |
3,234,632 |
508,942 |
Non-controlling interests |
123,508 |
104,387 |
16,424 |
Total equity |
3,334,260 |
3,339,019 |
525,366 |
Total liabilities and
equity |
3,748,486 |
3,816,914 |
600,559 |
|
|
|
|
|
|
|
|
CNINSURE
INC. |
|
|
|
|
|
|
|
Unaudited Condensed
Consolidated Statements of Income and Comprehensive
Income |
(In thousands, except
for shares and per share data) |
|
|
|
|
|
|
|
|
For
The Three Months Ended |
For
The Nine Months Ended |
|
September 30, |
September 30, |
|
2014 |
2015 |
2015 |
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
|
Agency |
404,694 |
543,846 |
85,570 |
1,135,697 |
1,486,908 |
233,953 |
Brokerage |
67,761 |
90,969 |
14,313 |
173,948 |
274,164 |
43,137 |
Claims adjusting |
69,880 |
81,929 |
12,891 |
207,747 |
207,233 |
32,606 |
Total net revenues |
542,335 |
716,744 |
112,774 |
1,517,392 |
1,968,305 |
309,696 |
Operating costs and
expenses: |
|
|
|
|
|
|
Agency |
(318,806) |
(424,048) |
(66,720) |
(875,739) |
(1,160,911) |
(182,659) |
Brokerage |
(54,364) |
(72,415) |
(11,394) |
(138,500) |
(218,255) |
(34,340) |
Claims adjusting |
(44,898) |
(47,621) |
(7,493) |
(122,431) |
(128,679) |
(20,247) |
Total operating costs |
(418,068) |
(544,084) |
(85,607) |
(1,136,670) |
(1,507,845) |
(237,246) |
Selling expenses |
(26,955) |
(29,231) |
(4,599) |
(75,523) |
(86,670) |
(13,637) |
General and administrative
expenses |
(96,429) |
(120,881) |
(19,020) |
(272,389) |
(328,095) |
(51,623) |
Total operating costs and
expenses |
(541,452) |
(694,196) |
(109,226) |
(1,484,582) |
(1,922,610) |
(302,506) |
Income from operations |
883 |
22,548 |
3,548 |
32,810 |
45,695 |
7,190 |
Other income, net: |
|
|
|
|
|
|
Investment income |
8,811 |
10,358 |
1,630 |
33,062 |
44,738 |
7,039 |
Interest income |
19,446 |
12,947 |
2,037 |
63,462 |
48,028 |
7,557 |
Others, net |
1,075 |
3,062 |
481 |
1,735 |
8,009 |
1,260 |
Income before income taxes and income
of affiliates |
30,215 |
48,915 |
7,696 |
131,069 |
146,470 |
23,046 |
Income tax expense |
(4,190) |
(3,950) |
(621) |
(18,726) |
(16,989) |
(2,673) |
Share of income of affiliates |
7,952 |
4,087 |
643 |
22,421 |
24,444 |
3,846 |
Net income |
33,977 |
49,052 |
7,718 |
134,764 |
153,925 |
24,219 |
Less: net (loss) gain attributable to
noncontrolling interests |
(811) |
7,176 |
1,129 |
72 |
(1,072) |
(168) |
Net income attributable to the
Company's shareholders |
34,788 |
41,876 |
6,589 |
134,692 |
154,997 |
24,387 |
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
Basic |
0.03 |
0.04 |
0.01 |
0.13 |
0.13 |
0.02 |
Diluted |
0.03 |
0.03 |
0.01 |
0.13 |
0.13 |
0.02 |
|
|
|
|
|
|
|
Net income per
ADS: |
|
|
|
|
|
|
Basic |
0.70 |
0.73 |
0.11 |
2.69 |
2.69 |
0.42 |
Diluted |
0.69 |
0.70 |
0.11 |
2.68 |
2.58 |
0.41 |
|
|
|
|
|
|
|
Shares used in
calculating net income per share: |
|
|
|
|
|
|
Basic |
1,000,565,906 |
1,151,945,764 |
1,151,945,764 |
999,928,000 |
1,151,327,395 |
1,151,327,395 |
Diluted |
1,004,883,981 |
1,200,958,840 |
1,200,958,840 |
1,004,700,996 |
1,202,347,993 |
1,202,347,993 |
|
|
|
|
|
|
|
Net income |
33,977 |
49,052 |
7,718 |
134,764 |
153,925 |
24,219 |
Other comprehensive (loss)
income, net of tax: Foreign currency translation
adjustments |
(2,434) |
5,318 |
837 |
3,203 |
5,143 |
809 |
Comprehensive income |
31,543 |
54,370 |
8,555 |
137,967 |
159,068 |
25,028 |
Less: Comprehensive income
attributable to the noncontrolling interests |
(811) |
7,176 |
1,129 |
72 |
(1,072) |
(168) |
Comprehensive income attributable to
the CNinsure Inc's shareholders |
32,354 |
47,194 |
7,426 |
137,895 |
160,140 |
25,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNINSURE
INC. |
Unaudited Condensed
Consolidated Statements of Cash Flow |
(In
thousands) |
|
|
|
|
|
|
|
|
For
The Three Months Ended |
For
The Nine Months Ended |
|
September 30, |
September 30, |
|
2014 |
2015 |
2015 |
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income |
33,977 |
49,052 |
7,718 |
134,764 |
153,925 |
24,219 |
Adjustments to reconcile net income
to net cash generated from operating activities: |
|
|
|
|
|
|
Depreciation |
7,088 |
3,469 |
546 |
22,227 |
14,308 |
2,251 |
Amortization of intangible assets |
4,864 |
2,620 |
412 |
12,098 |
9,301 |
1,463 |
Allowance for doubtful receivables |
784 |
2,291 |
360 |
3,912 |
2,903 |
457 |
Compensation expenses associated with stock
options |
4,588 |
6,190 |
974 |
18,914 |
14,824 |
2,332 |
Investment income |
(3,983) |
(10,152) |
(1,597) |
(14,653) |
(29,739) |
(4,679) |
(Gain) loss on disposal of property, plant
and equipment |
134 |
22 |
3 |
49 |
17 |
3 |
Share of income of affiliates |
(7,952) |
(4,087) |
(643) |
(22,421) |
(24,444) |
(3,846) |
Changes in operating assets and
liabilities |
15,948 |
6,908 |
1,087 |
33,316 |
(33,191) |
(5,222) |
Net cash generated from operating
activities |
55,448 |
56,313 |
8,860 |
188,206 |
107,904 |
16,978 |
|
|
|
|
|
|
|
Cash flows used in investing
activities: |
|
|
|
|
|
|
Purchase of property, plant and
equipment |
(1,638) |
(1,654) |
(260) |
(4,583) |
(3,818) |
(601) |
Proceeds from disposal of property and
equipment |
8 |
63 |
10 |
366 |
380 |
60 |
Proceeds from disposal of short term
investment |
53,983 |
22,300 |
3,509 |
70,842 |
290,787 |
45,753 |
Disposal of subsidiaries, net of
cash |
— |
18,892 |
2,972 |
— |
15,476 |
2,435 |
Purchase of short term investments |
(170,000) |
(405,000) |
(63,723) |
(530,000) |
(955,000) |
(150,261) |
Acquisition of subsidiaries, net of
cash |
(63,724) |
— |
— |
(62,709) |
— |
— |
Decrease (increase) in restricted
cash |
463 |
(2,251) |
(354) |
945 |
(8,336) |
(1,312) |
Decrease in other receivables |
127,687 |
— |
— |
122,632 |
— |
— |
Purchase of intangible assets |
— |
— |
— |
(118) |
— |
— |
Return of investment in non-current
assets |
3,500 |
— |
— |
3,900 |
— |
— |
Addition in investment in non-current
assets |
(7,019) |
(9,000) |
(1,416) |
(7,019) |
(10,000) |
(1,573) |
Decrease (increase) in amounts due from
related parties |
13,739 |
27,712 |
4,360 |
(58,850) |
111,939 |
17,613 |
Net cash used in investing
activities |
(43,001) |
(348,938) |
(54,902) |
(464,594) |
(558,572) |
(87,886) |
|
|
|
|
|
|
|
Cash flows generated from (used in)
financing activities: |
|
|
|
|
|
|
Acquisition of additional interests in
subsidiaries |
(11,000) |
(45,500) |
(7,159) |
(11,000) |
(153,500) |
(24,152) |
Increase in capital injection by
noncontrolling interests |
— |
17,000 |
2,675 |
— |
17,000 |
2,675 |
Repurchase of ordinary shares |
— |
(6,276) |
(987) |
— |
(6,276) |
(987) |
Dividend distributed to noncontrolling
interests |
— |
— |
— |
— |
(2,450) |
(386) |
Proceeds on exercise of stock
options |
— |
2 |
— |
3,183 |
1,121 |
176 |
Net cash used in financing
activities |
(11,000) |
(34,774) |
(5,471) |
(7,817) |
(144,105) |
(22,674) |
Net increase (decrease) in cash and
cash equivalents |
1,447 |
(327,399) |
(51,513) |
(284,205) |
(594,773) |
(93,582) |
Cash and cash equivalents at
beginning of period |
2,008,608 |
1,835,519 |
288,803 |
2,288,623 |
2,103,068 |
330,900 |
Effect of exchange rate changes on cash and
cash equivalents |
(2,434) |
5,318 |
837 |
3,203 |
5,143 |
809 |
Cash and cash equivalents at end of
period |
2,007,621 |
1,513,438 |
238,127 |
2,007,621 |
1,513,438 |
238,127 |
Interest paid |
— |
— |
— |
— |
— |
— |
Income taxes paid |
3,480 |
1,104 |
174 |
17,870 |
3,849 |
606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNINSURE
INC. |
Reconciliations of
Non-GAAP Operating Income and Non-GAAP Operating income
Margin |
(In thousands,
unaudited) |
|
|
|
|
|
|
|
|
For
The Three Months Ended |
For
The Nine Months Ended |
|
September 30, |
September 30, |
|
2014 |
2015 |
2015 |
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Operating income |
883 |
22,548 |
3,548 |
32,810 |
45,695 |
7,190 |
Online spending expenses |
17,013 |
19,375 |
3,048 |
32,008 |
61,427 |
9,665 |
Non-GAAP Operating
Income |
17,896 |
41,923 |
6,596 |
64,818 |
107,122 |
16,855 |
Total net revenues |
542,335 |
716,744 |
112,774 |
1,517,392 |
1,968,305 |
309,696 |
Non-GAAP Operating Income
Margin |
3.3% |
5.8% |
5.8% |
4.3% |
5.4% |
5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNINSURE
INC. |
Reconciliation of
Non-GAAP Expenses Ratio |
(In thousands,
unaudited) |
|
|
|
|
|
|
|
|
For
The Three Months Ended |
For
The Nine Months Ended |
|
September 30, |
September 30, |
|
2014 |
2015 |
2015 |
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Selling expenses |
26,955 |
29,231 |
4,599 |
75,523 |
86,670 |
13,637 |
General and administrative
expenses |
96,429 |
120,881 |
19,020 |
272,389 |
328,095 |
51,623 |
Total expenses |
123,384 |
150,112 |
23,619 |
347,912 |
414,765 |
65,260 |
Online spending expenses |
(17,013) |
(19,375) |
(3,048) |
(32,008) |
(61,427) |
(9,665) |
Compensation expenses associated with stock
options |
(4,588) |
(6,190) |
(974) |
(18,914) |
(14,824) |
(2,332) |
Non-GAAP expenses |
101,783 |
124,547 |
19,597 |
296,990 |
338,514 |
53,263 |
Total net revenues |
542,335 |
716,744 |
112,774 |
1,517,392 |
1,968,305 |
309,696 |
Non-GAAP Operating expenses
ratio |
18.8% |
17.4% |
17.4% |
19.6% |
17.2% |
17.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNINSURE
INC. |
Reconciliations of Net
Income to Adjusted EBITDA and Adjusted EBITDA Margin |
(In thousands,
unaudited) |
|
|
|
|
|
|
|
|
For
The Three Months Ended |
For
The Nine Months Ended |
|
September 30, |
September 30, |
|
2014 |
2015 |
2015 |
2014 |
2015 |
2015 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Net income |
33,977 |
49,052 |
7,718 |
134,764 |
153,925 |
24,219 |
Income tax expense |
4,190 |
3,950 |
621 |
18,726 |
16,989 |
2,673 |
Investment income |
(8,811) |
(10,358) |
(1,630) |
(33,062) |
(44,738) |
(7,039) |
Interest income |
(19,446) |
(12,947) |
(2,037) |
(63,462) |
(48,028) |
(7,557) |
Depreciation |
7,088 |
3,469 |
546 |
22,227 |
14,308 |
2,251 |
Amortization of intangible assets |
4,864 |
2,620 |
412 |
12,098 |
9,301 |
1,463 |
Compensation expenses associated with stock
options |
4,588 |
6,190 |
974 |
18,914 |
14,824 |
2,332 |
Online spending expenses |
17,013 |
19,375 |
3,048 |
32,008 |
61,427 |
9,665 |
Adjusted EBITDA |
43,463 |
61,351 |
9,652 |
142,213 |
178,008 |
28,007 |
Total net revenues |
542,335 |
716,744 |
112,774 |
1,517,392 |
1,968,305 |
309,696 |
Adjusted EBITDA Margin |
8.0% |
8.6% |
8.6% |
9.4% |
9.0% |
9.0% |
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
RMB6.3556 to US$1.00, the effective noon buying rate as of
September 30, 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 Active users are defined as users who made at
least one purchase through CNpad App during the specified
period.
3 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.
CONTACT: For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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