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, 20161.
(In thousands, except per ADS) |
2015 Q3
(RMB) |
2016 Q3 (RMB) |
2016 Q3 (US$) |
Change % |
Total net revenues |
716,744 |
1,192,242 |
178,787 |
66.3 |
Operating income |
22,548 |
7,524 |
1,128 |
-66.6 |
Marketing campaign expenses2 |
269 |
108,031 |
16,200 |
40,060.2 |
Net income attributable to the Company’s shareholders |
41,876 |
32,093 |
4,813 |
-23.4 |
Basic net income per ADS |
0.73 |
0.55 |
0.08 |
-24.1 |
Financial Highlights for Third Quarter
of 2016:
Key Operational Metrics for CNinsure's Online
Initiatives for the Third Quarter of
2016:
- CNpad Mobile Application ("CNpad App") - Our
proprietary mobile sales support system:
- CNpad App has been downloaded and activated
165,638 times as of September 30, 2016, as compared to 136,909
times as of June 30, 2016 and 93,230 times as of September 30,
2015;
- The number of active users3 of CNpad App
was 36,219 in the third quarter of 2016, as compared to 28,675 in
the second quarter of 2016 and 30,752 in the third quarter of
2015;
- Insurance premiums generated
through CNpad App were
approximately RMB976.1 million (US$146.6 million) in the third
quarter of 2016, as compared to RMB 750.2 million in the second
quarter of 2016 and RMB795.7 million in the third quarter of 2015.
Total insurance premiums generated through CNpad App accounted for
26.6% of our total insurance premiums in the third quarter of 2016
as compared to 22.0% in the second quarter of 2016 and 33.0% in the
third quarter of 2015.
- eHuzhu - Our online non-profit mutual aid
platform:
- The number of registered members was
approximately 1.1 million as of September 30, 2016, as compared to
872,922 as of June 30, 2016 and 540,000 as of September 30,
2015.
- Baoxian.com - Our online insurance platform:
- The number of registered customer accounts was
493,120 in the third quarter of 2016, as compared to approximately
375,000 in the second quarter of 2016 and approximately 268,000 in
the third quarter of 2015;
- The number of active customer
accounts4 was 53,386 in the third quarter of 2016, as
compared to 24,727 in the second quarter of 2016 and 13,469 in the
third quarter of 2015;
- Insurance premiums generated on or through
Baoxian.com was RMB19.4 million (US$2.9 million) in the
third quarter of 2016, as compared to RMB19.3 million in the second
quarter of 2016 and RMB10.6 million in the third quarter of 2015.
The moderate increase was primarily due to lower average purchase
per active customer despite a significant increase in the number of
active customer accounts.
Operating Data:
- As of September 30, 2016, CNinsure’s distribution network
consisted of 608 sales outlets operating in 21 provinces, compared
with 409 sales outlets operating in 17 provinces as of September
30, 2015. Its claims adjusting service network covered 29 provinces
with 153 service outlets as of September 30, 2016, compared with
161 service outlets in 27 provinces as of September 30, 2015.
CNinsure had 190,261 sales agents and 1,347 professional claims
adjustors as of September 30, 2016, compared with 93,240 sales
agents, and 1,447 professional claims adjustors as of September 30,
2015.
Commenting on the third quarter of 2016
financial results, Mr. Chunlin Wang, chief executive officer of
CNinsure, stated, "We continued to record accelerated growth for
the third quarter of 2016, with insurance premiums growing 52.0%
year-over-year and revenues increasing 66.3% year-over-year,
leading to RMB7.5 million (US$1.1 million) in operating
profit."
"Our positive operating profit in the third
quarter of 2016, compared to an operating loss of RMB8.2 million in
the second quarter of 2016, exceeded our expectations. We believe
this growth was attributable to 1) the positive results of our
marketing strategy in propelling the growth of both our property
and casualty (P&C) insurance and our life insurance businesses;
and 2) improvements in our internet technology, which led to
improved back-office efficiency and cost reductions in operating
costs."
Financial Results for the
Third Quarter of 2016
Total net revenues were RMB1.2
billion (US$178.8 million) for the third quarter of 2016,
representing an increase of 66.3% from RMB716.7 million for the
corresponding period in 2015.
- Net revenues for the insurance agency business
were RMB978.4 million (US$146.7 million) for the third quarter of
2016, representing an increase of 79.9% from RMB543.8 million for
the corresponding period in 2015. The increase was primarily driven
by a 56.8% increase in net revenues derived from the P&C
insurance agency business, from RMB456.2 million for the third
quarter of 2015 to RMB715.2 million (US$107.2 million) for the
third quarter of 2016, and a 200.5% increase in net revenues
derived from the life insurance agency business, from RMB87.6
million for the third quarter of 2015 to RMB263.2 million (US$39.5
million) for the third quarter of 2016. The growth of the P&C
insurance agency business was primarily due to a 46.9% growth in
insurance premiums as a result of enhanced marketing efforts. The
increase in net revenues generated from the life insurance agency
business was primarily due to a 216.0% increase in commissions
derived from new long-term life insurance policy sales, primarily
driven by the successful implementation of our cross-selling
strategy and enhanced marketing efforts. Revenues generated from
the insurance agency business accounted for 82.1% of total net
revenues in the third quarter of 2016.
- Net revenues for the insurance brokerage
business were RMB129.1 million (US$19.4 million) for the
third quarter of 2016, representing an increase of 41.9% from
RMB91.0 million for the corresponding period in 2015. Revenues
generated from the insurance brokerage business accounted for 10.8%
of total net revenues in the third quarter of 2016.
- Net revenues for the claims adjusting business
were RMB84.7 million (US$12.7 million) for the third quarter of
2016, representing an increase of 3.4% from RMB81.9 million for the
corresponding period in 2015. Revenues generated from the claims
adjusting business accounted for 7.1% of total net revenues in the
third quarter of 2016.
Total operating costs and
expenses were RMB1.2 billion (US$177.7 million) for the
third quarter of 2016, representing an increase of 70.7% from
RMB694.2 million for the corresponding period in 2015.
- Total operating costs were RMB912.5 million
(US$136.8 million) for the third quarter of 2016, representing an
increase of 67.7% from RMB544.1 million for the corresponding
period in 2015. The increase was primarily due to sales growth.
- Costs of insurance agency business were
RMB760.2 million (US$114.0 million) for the third quarter of 2016,
representing an increase of 79.3% from RMB424.0 million for the
corresponding period in 2015, primarily driven by a 57.8% increase
in costs for the P&C insurance agency business from RMB366.5
million for the third quarter of 2015 to RMB578.3 million (US$86.7
million) for the third quarter of 2016, and a 216.0% increase in
costs for the life insurance agency business from RMB57.5 million
for the third quarter of 2015 to RMB181.9 million (US$27.3 million)
for the third quarter of 2016. The increase in costs for the
P&C insurance agency business largely tracked sales growth and
an increase in average commission level paid to sales agents in the
market driven by increased competition in the auto insurance
market. Costs for the life insurance agency business increased in
line with revenues growth in the third quarter of 2016. Costs
incurred by the insurance agency business accounted for 83.3% of
total operating costs in the third quarter of 2016.
- Costs of insurance brokerage business were
RMB103.5 million (US$15.5 million) for the third quarter of 2016,
representing an increase of 42.9% from RMB72.5 million for the
corresponding period in 2015. The increase was primarily due to
sales growth. Costs incurred by the insurance brokerage business
accounted for 11.3% of total operating costs in the third quarter
of 2016.
- Costs of claims adjusting business were
RMB48.8 million (US$7.3 million) for the third quarter of 2016,
representing an increase of 2.6% from RMB47.6 million for the
corresponding period in 2015. The increase was primarily due to
sales growth. Costs incurred by the claims adjusting business
accounted for 5.4% of total operating costs in the third quarter of
2016.
- Selling expenses were RMB154.1 million
(US$23.1 million) for the third quarter of 2016, representing an
increase of 427.1% from RMB29.2 million for the corresponding
period in 2015, primarily attributable to RMB108.0 million (US$16.2
million) in marketing expenses in the third quarter of 2016.
- General and administrative expenses were
RMB118.2 million (US$17.7 million) for the third quarter of 2016,
representing a decrease of 2.3% from RMB120.9 million for the
corresponding period in 2015. The decrease was primarily due to
decreases in share-based compensation expenses.
As a result of the preceding factors, we had an
operating income of RMB7.5 million (US$1.1 million) for the third
quarter of 2016, representing a decrease of 66.6% from RMB22.5
million for the corresponding period in 2015.
Operating margin was 0.6% for
the third quarter of 2016, compared with 3.1% for the corresponding
period in 2015.
Investment income was RMB18.4
million (US$2.8 million) for the third quarter of 2016,
representing an increase of 77.2% from RMB10.4 million for the
corresponding period in 2015. The investment income represented
yields from short-term investments in financial products which
mainly consist of inter-bank deposits or collective trust products
with a term of half a year to two years and interest payments on a
quarterly, semi-annual or annual basis. Our investment income
fluctuates from quarter to quarter because these investments are
classified as available for sales and investment income is
recognized when received.
Interest income was RMB0.2
million (US$33,000) for the third quarter of 2016, representing a
decrease of 98.3% from RMB12.9 million for the corresponding period
in 2015. The decrease in interest income was primarily due to
decrease in term deposits as a result of an increase in short-term
investments.
Income tax expense was RMB5.8
million (US$0.9 million) for the third quarter of 2016,
representing an increase of 45.9% from RMB4.0 million for the
corresponding period in 2015. The increase was primarily due to the
relatively low income tax expense incurred in the corresponding
period in 2015 as a result of non-taxable capital gains generated
from the disposal of Chetong.net and the utilization of tax loss
carryforward previously recognized as deferred tax allowance. The
effective tax rate for the third quarter of 2016 was 20.2% compared
with 8.1% for the corresponding period in 2015.
Share of income of affiliates
was RMB13.1 million (US$2.0 million) for the third quarter of 2016,
representing an increase of 219.5% from RMB4.1 million for the
corresponding period in 2015, mainly attributable to an increase in
profits from Sincere Fame International Limited, in which the
Company owns 20.6% of the equity interests.
Net income attributable to the Company’s
shareholders was RMB32.1 million (US$4.8 million) for the
third quarter of 2016, representing a decrease of 23.4% from
RMB41.9 million for the corresponding period in 2015.
Net margin was 2.7% for the
third quarter of 2016 compared with 5.8% for the corresponding
period in 2015.
Basic and
diluted net income per ADS were RMB0.55
(US$0.08) and RMB0.53 (US$0.08) for the third quarter of 2016,
respectively, representing respective decreases of 24.1% and 24.1%
from RMB0.73 and RMB0.70 for the corresponding period in 2015.
As of September 30, 2016, the Company had RMB231.5 million
(US$34.7 million) in cash and cash
equivalents.
Business
Outlook
CNinsure expects its total net revenues to grow
by approximately 40% for the fourth quarter of 2016 compared with
the corresponding period in 2015. 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 2016 financial results as per the
following details.
Time: 8:00 PM Eastern Time on November 21, 2016
or 9:00 AM Beijing/Hong Kong Time on
November 22, 2016
The toll free dial-in
numbers: |
|
United States |
1-855-500-8701 |
United Kingdom |
0800-015-9724 |
France |
0800-918-648 |
Germany |
0800-184-4876 |
Australia |
1-300-713-759 |
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 #:
12420951 |
|
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.
Our online platforms include (1) CNpad, a mobile
sales support application, (2) Baoxian.com, an online entry portal
for comparing and purchasing health, accident, travel and homeowner
insurance products; and (3) eHuzhu (www.ehuzhu.com), a non-profit
online mutual aid platform in China. Our extensive distribution and
service network covers 29 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 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.
|
|
CNINSURE INC. |
|
Unaudited Condensed Consolidated Balance
Sheets |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
As of September 30, |
|
As of September 30, |
|
|
2015 |
|
2016 |
|
2016 |
|
|
RMB |
|
RMB |
|
US$ |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
1,115,266 |
|
|
|
231,512 |
|
|
|
34,717 |
|
|
Restricted cash |
|
17,585 |
|
|
|
26,721 |
|
|
|
4,007 |
|
|
Short
term investments |
|
2,026,256 |
|
|
|
2,656,500 |
|
|
|
398,366 |
|
|
Accounts
receivable, net |
|
241,264 |
|
|
|
440,701 |
|
|
|
66,087 |
|
|
Insurance premium receivables |
|
1,526 |
|
|
|
756 |
|
|
|
113 |
|
|
Other
receivables |
|
51,828 |
|
|
|
50,129 |
|
|
|
7,517 |
|
|
Amounts
due from related parties |
|
36,508 |
|
|
|
32,654 |
|
|
|
4,897 |
|
|
Other
current assets |
|
22,828 |
|
|
|
34,177 |
|
|
|
5,125 |
|
|
Total current assets |
|
3,513,061 |
|
|
|
3,473,150 |
|
|
|
520,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment, net |
|
34,145 |
|
|
|
30,370 |
|
|
|
4,554 |
|
|
Goodwill
and intangible assets, net |
|
153,182 |
|
|
|
190,349 |
|
|
|
28,545 |
|
|
Deferred
tax assets |
|
1,658 |
|
|
|
14,427 |
|
|
|
2,163 |
|
|
Investment in affiliates |
|
284,194 |
|
|
|
279,725 |
|
|
|
41,947 |
|
|
Other
non-current assets |
|
28,188 |
|
|
|
28,188 |
|
|
|
4,227 |
|
|
Total non-current assets |
|
501,367 |
|
|
|
543,059 |
|
|
|
81,436 |
|
|
Total assets |
|
4,014,428 |
|
|
|
4,016,209 |
|
|
|
602,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable (including accounts payable of the consolidated variable
interest entities ("VIEs") without recourse to CNinsure Inc. of
RMB4,141 and nil as of December 31, 2015 and September 30, 2016,
respectively) |
|
160,891 |
|
|
|
196,031 |
|
|
|
29,397 |
|
|
Insurance premium payables (including insurance premium payables of
the consolidated VIEs without recourse to CNinsure Inc. of RMB1,680
and nil as of December 31, 2015 and September 30, 2016,
respectively) |
|
5,187 |
|
|
|
5,485 |
|
|
|
823 |
|
|
Other
payables and accrued expenses (including other payables and accrued
expense of the consolidated VIEs without recourse to CNinsure Inc.
of RMB5,720 and nil as of December 31, 2015 and September 30, 2016,
respectively) |
|
213,562 |
|
|
|
283,931 |
|
|
|
42,578 |
|
|
Accrued
payroll (including accrued payroll of the consolidated VIEs without
recourse to CNinsure Inc. of RMB1,625 and nil as of December 31,
2015 and September 30, 2016, respectively) |
|
48,150 |
|
|
|
47,975 |
|
|
|
7,194 |
|
|
Income
tax payable (including income tax payable of the consolidated of
VIEs without recourse to CNinsure Inc. of RMB1,152 and nil as of
December 31, 2015 and September 30, 2016, respectively) |
|
60,658 |
|
|
|
77,211 |
|
|
|
11,578 |
|
|
Total current liabilities |
|
488,448 |
|
|
|
610,633 |
|
|
|
91,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Other
tax liabilities |
|
70,354 |
|
|
|
71,412 |
|
|
|
10,709 |
|
|
Deferred
tax liabilities |
|
22,057 |
|
|
|
14,687 |
|
|
|
2,202 |
|
|
Total non-current liabilities |
|
92,411 |
|
|
|
86,099 |
|
|
|
12,911 |
|
|
Total liabilities |
|
580,859 |
|
|
|
696,732 |
|
|
|
104,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary
shares |
|
8,592 |
|
|
|
8,652 |
|
|
|
1,297 |
|
|
Additional paid-in capital |
|
2,454,244 |
|
|
|
2,301,261 |
|
|
|
345,094 |
|
|
Statutory reserves |
|
302,115 |
|
|
|
301,681 |
|
|
|
45,240 |
|
|
Retained
earnings |
|
871,356 |
|
|
|
954,243 |
|
|
|
143,097 |
|
|
Accumulated other comprehensive loss |
|
(50,048 |
) |
|
|
(79,585 |
) |
|
|
(11,935 |
) |
|
Subscription receivables |
|
(268,829 |
) |
|
|
(276,743 |
) |
|
|
(41,500 |
) |
|
Total CNinsure Inc. shareholders’
equity |
|
3,317,430 |
|
|
|
3,209,509 |
|
|
|
481,293 |
|
|
Non-controlling interests |
|
116,139 |
|
|
|
109,968 |
|
|
|
16,491 |
|
|
Total equity |
|
3,433,569 |
|
|
|
3,319,477 |
|
|
|
497,784 |
|
|
Total liabilities and equity |
|
4,014,428 |
|
|
|
4,016,209 |
|
|
|
602,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
543,846 |
|
|
|
978,438 |
|
|
|
146,725 |
|
|
|
1,486,908 |
|
|
|
2,526,767 |
|
|
|
378,911 |
|
Brokerage |
|
90,969 |
|
|
|
129,116 |
|
|
|
19,362 |
|
|
|
274,164 |
|
|
|
406,654 |
|
|
|
60,981 |
|
Claims
adjusting |
|
81,929 |
|
|
|
84,688 |
|
|
|
12,700 |
|
|
|
207,233 |
|
|
|
232,739 |
|
|
|
34,901 |
|
Total net revenues |
|
716,744 |
|
|
|
1,192,242 |
|
|
|
178,787 |
|
|
|
1,968,305 |
|
|
|
3,166,160 |
|
|
|
474,793 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
(424,048 |
) |
|
|
(760,188 |
) |
|
|
(113,997 |
) |
|
|
(1,160,911 |
) |
|
|
(1,974,227 |
) |
|
|
(296,052 |
) |
Brokerage |
|
(72,415 |
) |
|
|
(103,452 |
) |
|
|
(15,514 |
) |
|
|
(218,255 |
) |
|
|
(324,474 |
) |
|
|
(48,658 |
) |
Claims
adjusting |
|
(47,621 |
) |
|
|
(48,838 |
) |
|
|
(7,324 |
) |
|
|
(128,679 |
) |
|
|
(142,537 |
) |
|
|
(21,375 |
) |
Total operating costs |
|
(544,084 |
) |
|
|
(912,478 |
) |
|
|
(136,835 |
) |
|
|
(1,507,845 |
) |
|
|
(2,441,238 |
) |
|
|
(366,085 |
) |
Selling
expenses |
|
(29,231 |
) |
|
|
(154,085 |
) |
|
|
(23,106 |
) |
|
|
(86,670 |
) |
|
|
(403,612 |
) |
|
|
(60,525 |
) |
General and
administrative expenses |
|
(120,881 |
) |
|
|
(118,155 |
) |
|
|
(17,718 |
) |
|
|
(328,095 |
) |
|
|
(341,966 |
) |
|
|
(51,281 |
) |
Total operating costs and expenses |
|
(694,196 |
) |
|
|
(1,184,718 |
) |
|
|
(177,659 |
) |
|
|
(1,922,610 |
) |
|
|
(3,186,816 |
) |
|
|
(477,891 |
) |
Income (loss) from operations |
|
22,548 |
|
|
|
7,524 |
|
|
|
1,128 |
|
|
|
45,695 |
|
|
|
(20,656 |
) |
|
|
(3,098 |
) |
Other income,
net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
|
10,358 |
|
|
|
18,352 |
|
|
|
2,752 |
|
|
|
44,738 |
|
|
|
64,584 |
|
|
|
9,685 |
|
Interest income |
|
12,947 |
|
|
|
220 |
|
|
|
33 |
|
|
|
48,028 |
|
|
|
6,573 |
|
|
|
986 |
|
Others, net |
|
3,062 |
|
|
|
2,377 |
|
|
|
357 |
|
|
|
8,009 |
|
|
|
8,713 |
|
|
|
1,307 |
|
Income before income taxes and income of
affiliates |
|
48,915 |
|
|
|
28,473 |
|
|
|
4,270 |
|
|
|
146,470 |
|
|
|
59,214 |
|
|
|
8,880 |
|
Income tax
expense |
|
(3,950 |
) |
|
|
(5,765 |
) |
|
|
(864 |
) |
|
|
(16,989 |
) |
|
|
(7,842 |
) |
|
|
(1,176 |
) |
Share of
income of affiliates |
|
4,087 |
|
|
|
13,059 |
|
|
|
1,958 |
|
|
|
24,444 |
|
|
|
34,398 |
|
|
|
5,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
49,052 |
|
|
|
35,767 |
|
|
|
5,364 |
|
|
|
153,925 |
|
|
|
85,770 |
|
|
|
12,862 |
|
Less: net gain (loss)
attributable to noncontrolling interests |
|
7,176 |
|
|
|
3,674 |
|
|
|
551 |
|
|
|
(1,072 |
) |
|
|
3,318 |
|
|
|
498 |
|
Net income
attributable to the Company’s shareholders |
|
41,876 |
|
|
|
32,093 |
|
|
|
4,813 |
|
|
|
154,997 |
|
|
|
82,452 |
|
|
|
12,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
0.04 |
|
|
|
0.03 |
|
|
|
0.00 |
|
|
|
0.13 |
|
|
|
0.07 |
|
|
|
0.01 |
|
Diluted |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.00 |
|
|
|
0.13 |
|
|
|
0.07 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
0.73 |
|
|
|
0.55 |
|
|
|
0.08 |
|
|
|
2.69 |
|
|
|
1.42 |
|
|
|
0.21 |
|
Diluted |
|
0.70 |
|
|
|
0.53 |
|
|
|
0.08 |
|
|
|
2.58 |
|
|
|
1.37 |
|
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
1,151,945,764 |
|
|
|
1,163,302,341 |
|
|
|
1,163,302,341 |
|
|
|
1,151,327,395 |
|
|
|
1,159,295,688 |
|
|
|
1,159,295,688 |
|
Diluted |
|
1,200,958,840 |
|
|
|
1,212,231,308 |
|
|
|
1,212,231,308 |
|
|
|
1,202,347,993 |
|
|
|
1,207,220,255 |
|
|
|
1,207,220,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
49,052 |
|
|
|
35,767 |
|
|
|
5,364 |
|
|
|
153,925 |
|
|
|
85,770 |
|
|
|
12,862 |
|
Other comprehensive income, net of
tax: Foreign currency translation adjustments |
|
5,318 |
|
|
|
4,431 |
|
|
|
664 |
|
|
|
5,143 |
|
|
|
9,328 |
|
|
|
1,399 |
|
Share of other comprehensive loss
of affiliates, net of tax |
|
— |
|
|
|
(10,505 |
) |
|
|
(1,575 |
) |
|
|
— |
|
|
|
(38,866 |
) |
|
|
(5,828 |
) |
Comprehensive
income |
|
54,370 |
|
|
|
29,693 |
|
|
|
4,453 |
|
|
|
159,068 |
|
|
|
56,232 |
|
|
|
8,433 |
|
Less: Comprehensive income ( loss)
attributable to the noncontrolling interests |
|
7,176 |
|
|
|
3,674 |
|
|
|
551 |
|
|
|
(1,072 |
) |
|
|
3,318 |
|
|
|
498 |
|
Comprehensive
income attributable to the CNinsure Inc’s
shareholders |
|
47,194 |
|
|
|
26,019 |
|
|
|
3,902 |
|
|
|
160,140 |
|
|
|
52,914 |
|
|
|
7,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
49,052 |
|
|
35,767 |
|
|
5,364 |
|
|
153,925 |
|
|
85,770 |
|
|
12,862 |
|
|
Adjustments to reconcile net income to net cash generated
from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
3,469 |
|
|
3,529 |
|
|
529 |
|
|
14,308 |
|
|
10,204 |
|
|
1,530 |
|
|
Amortization of intangible assets |
|
|
2,620 |
|
|
8,806 |
|
|
1,321 |
|
|
9,301 |
|
|
11,432 |
|
|
1,714 |
|
|
Allowance for doubtful receivables |
|
|
2,291 |
|
|
1,577 |
|
|
236 |
|
|
2,903 |
|
|
542 |
|
|
81 |
|
|
Compensation expenses associated with stock options |
|
|
6,190 |
|
|
— |
|
|
— |
|
|
14,824 |
|
|
4,937 |
|
|
740 |
|
|
Investment income |
|
|
(10,152 |
) |
|
(13,907 |
) |
|
(2,085 |
) |
|
(29,739 |
) |
|
(37,926 |
) |
|
(5,687 |
) |
|
Loss on
disposal of property, plant and equipment |
|
|
22 |
|
|
99 |
|
|
15 |
|
|
17 |
|
|
101 |
|
|
15 |
|
|
Share of
income of affiliates |
|
|
(4,087 |
) |
|
(13,059 |
) |
|
(1,958 |
) |
|
(24,444 |
) |
|
(34,398 |
) |
|
(5,158 |
) |
|
Changes
in operating assets and liabilities |
|
|
6,908 |
|
|
6,784 |
|
|
1,016 |
|
|
(33,191 |
) |
|
(66,332 |
) |
|
(9,947 |
) |
|
Net cash generated from (used in) operating
activities |
|
|
56,313 |
|
|
29,596 |
|
|
4,438 |
|
|
107,904 |
|
|
(25,670 |
) |
|
(3,850 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment |
|
|
(1,654 |
) |
|
(3,523 |
) |
|
(528 |
) |
|
(3,818 |
) |
|
(7,540 |
) |
|
(1,131 |
) |
|
Proceeds
from disposal of property and equipment |
|
|
63 |
|
|
— |
|
|
— |
|
|
380 |
|
|
48 |
|
|
7 |
|
|
Purchase
of short term investments |
|
|
(405,000 |
) |
|
(1,689,500 |
) |
|
(253,355 |
) |
|
(955,000 |
) |
|
(6,541,800 |
) |
|
(981,000 |
) |
|
Proceeds
from disposal of short term investment |
|
|
22,300 |
|
|
1,703,007 |
|
|
255,381 |
|
|
290,787 |
|
|
5,946,400 |
|
|
891,715 |
|
|
Acquisition of subsidiary, net of cash |
|
|
— |
|
|
(4,185 |
) |
|
(628 |
) |
|
— |
|
|
(4,185 |
) |
|
(628 |
) |
|
Disposal
of subsidiaries, net of cash |
|
|
18,892 |
|
|
50 |
|
|
7 |
|
|
15,476 |
|
|
29,376 |
|
|
4,405 |
|
|
Increase
in restricted cash |
|
|
(2,251 |
) |
|
(4,148 |
) |
|
(622 |
) |
|
(8,336 |
) |
|
(9,136 |
) |
|
(1,370 |
) |
|
Purchase
of intangible assets |
|
|
— |
|
|
(40,000 |
) |
|
(5,998 |
) |
|
— |
|
|
(60,000 |
) |
|
(8,997 |
) |
|
Addition
in investment in non-current assets |
|
|
(9,000 |
) |
|
— |
|
|
— |
|
|
(10,000 |
) |
|
— |
|
|
— |
|
|
Decrease
in amounts due from related parties |
|
|
27,712 |
|
|
— |
|
|
— |
|
|
111,939 |
|
|
— |
|
|
— |
|
|
Net cash used in investing activities |
|
|
(348,938 |
) |
|
(38,299 |
) |
|
(5,743 |
) |
|
(558,572 |
) |
|
(646,837 |
) |
|
(96,999 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of additional
interests in subsidiaries |
|
|
(45,500 |
) |
|
(138,774 |
) |
|
(20,810 |
) |
|
(153,500 |
) |
|
(213,534 |
) |
|
(32,021 |
) |
|
Dividend distributed to
noncontrolling interests |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,450 |
) |
|
— |
|
|
— |
|
|
Increase in capital
injection by noncontrolling interests |
|
|
17,000 |
|
|
— |
|
|
— |
|
|
17,000 |
|
|
— |
|
|
— |
|
|
Repurchase of ordinary
shares |
|
|
(6,276 |
) |
|
— |
|
|
— |
|
|
(6,276 |
) |
|
— |
|
|
— |
|
|
Proceeds on
exercise of stock options |
|
|
2 |
|
|
743 |
|
|
111 |
|
|
1,121 |
|
|
745 |
|
|
112 |
|
|
Net
cash used in financing activities |
|
|
(34,774 |
) |
|
(138,031 |
) |
|
(20,699 |
) |
|
(144,105 |
) |
|
(212,789 |
) |
|
(31,909 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents |
|
|
(327,399 |
) |
|
(146,734 |
) |
|
(22,004 |
) |
|
(594,773 |
) |
|
(885,296 |
) |
|
(132,758 |
) |
|
Cash and cash equivalents at beginning of
period |
|
|
1,835,519 |
|
|
374,740 |
|
|
56,195 |
|
|
2,103,068 |
|
|
1,115,266 |
|
|
167,244 |
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
5,318 |
|
|
3,506 |
|
|
526 |
|
|
5,143 |
|
|
1,542 |
|
|
231 |
|
|
Cash and cash equivalents at end of period |
|
|
1,513,438 |
|
|
231,512 |
|
|
34,717 |
|
|
1,513,438 |
|
|
231,512 |
|
|
34,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Income taxes paid |
|
|
1,104 |
|
|
216 |
|
|
32 |
|
|
3,849 |
|
|
3,544 |
|
|
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
RMB6.6685 to US$1.00, the effective noon buying rate as of
September 30, 2016 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 Marketing campaign expenses are defined
as expenses related to targeted marketing activities to promote
sales in order to gain more market shares, which is in line with
the Company's long term growth strategy. Such expenses are included
in selling expenses in the unaudited condensed consolidated income
and comprehensive income.
3 Active users are defined as users who made at least one
purchase through CNpad App during the specified period.
4 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.
For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 8388-3191
Email: qiusr@cninsure.net
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