Fanhua Inc., (Nasdaq:FANH), (the "Company" or "Fanhua"), a leading
independent online-to-offline ("O2O") financial services provider
in China, today announced its unaudited financial results for the
fourth quarter and fiscal year ended December 31, 20161.
Financial Highlights for
the Fourth Quarter of
2016:
(In thousands, except per ADS) |
2015 Q4 (RMB) |
2016 Q4 (RMB) |
2016 Q4 (US$) |
Change % |
Total net revenues |
860,003 |
1,534,462 |
221,008 |
78.4 |
Operating income |
32,827 |
34,696 |
4,997 |
5.7 |
Marketing expenses2 |
19,503 |
134,670 |
19,397 |
590.5 |
Net income attributable to the Company’s shareholders |
55,089 |
74,594 |
10,743 |
35.4 |
Basic net income per ADS |
0.96 |
1.28 |
0.18 |
34.1 |
Financial Highlights for
2016:
(In thousands, except per ADS) |
2015(RMB) |
2016(RMB) |
2016 (US$) |
Change % |
Total net revenues |
2,828,308 |
4,700,622 |
677,031 |
66.2 |
Operating income |
78,522 |
14,040 |
2,023 |
-82.1 |
Marketing expenses |
20,712 |
415,492 |
59,843 |
1,906.0 |
Net income attributable to the Company’s shareholders |
210,086 |
157,047 |
22,618 |
-25.2 |
Basic net income per ADS |
3.65 |
2.71 |
0.39 |
-25.9 |
Commenting on the fourth quarter and 2016
financial results, Mr. Chunlin Wang, Chief Executive Officer
of Fanhua, stated, "We had exceptional growth in 2016, during which
our insurance premiums increased by 49.7% year-over-year to RMB14.6
billion and net revenues increased by 66.2% year-over-year to
RMB4.7 billion. We generated positive operating income for two
consecutive quarters in the second half of 2016, which boosted
total operating income in 2016 to RMB14.0 million. These
positive results were primarily due to the significant growth of
our life insurance business, effective cost controls and the
substantial progress we have made in implementing multiple
strategic initiatives, including the expansion of our sales
network, enhanced cross-selling efforts, the upgrade and promotion
of CNpad and the initiation of several marketing campaigns."
"The outstanding performance in 2016 shows the
success of our business strategies. In 2017, we plan to further
increase our profitability by investing more on our life insurance
business. We remain optimistic about our growth momentum, and
expect to generate no less than RMB180 million of operating income
in 2017."
Financial Results for the Fourth
quarter of 2016
Total net revenues were RMB1.5
billion (US$221.0 million) for the fourth quarter of 2016,
representing an increase of 78.4% from RMB860.0 million for the
corresponding period in 2015.
- Net revenues for the insurance agency business
were RMB1.2 billion (US$175.7 million) for the fourth quarter of
2016, representing an increase of 82.5% from RMB668.4 million for
the corresponding period in 2015. The increase was primarily driven
by a 52.8% increase in net revenues derived from the P&C
insurance agency business, from RMB561.1 million for the fourth
quarter of 2015 to RMB857.4 million (US$123.5 million) for the
fourth quarter of 2016, and a 237.9% increase in net revenues
derived from the life insurance agency business, from RMB107.2
million for the fourth quarter of 2015 to RMB362.3 million (US$52.2
million) for the fourth quarter of 2016. The growth of the P&C
insurance agency business was primarily due to a 38.6% 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 284.8% increase in commissions
derived from new long-term life insurance policy sales, primarily
driven by the successful implementation of our cross-selling
strategy and industry growth. Revenues generated from the insurance
agency business accounted for 79.5% of total net revenues in the
fourth quarter of 2016.
- Net revenues for the insurance brokerage
business were RMB211.1 million (US$30.4 million) for the
fourth quarter of 2016, representing an increase of 122.1% from
RMB95.0 million for the corresponding period in 2015. Revenues
generated from the insurance brokerage business accounted for 13.8%
of total net revenues in the fourth quarter of 2016.
- Net revenues for the claims adjusting business
were RMB103.7 million (US$14.9 million) for the fourth quarter of
2016, representing an increase of 7.3% from RMB96.6 million for the
corresponding period in 2015. Revenues generated from the claims
adjusting business accounted for 6.7% of total net revenues in the
fourth quarter of 2016.
Total operating costs and
expenses were RMB1.5 billion (US$216.0 million) for the
fourth quarter of 2016, representing an increase of 81.3% from
RMB827.2 million for the corresponding period in 2015.
- Total operating costs were RMB1.2 billion
(US$168.4 million) for the fourth quarter of 2016, representing an
increase of 81.9% from RMB642.7 million for the corresponding
period in 2015. The increase was primarily due to sales
growth.- Costs of insurance agency business were
RMB932.6 million (US$134.3 million) for the fourth quarter of 2016,
representing an increase of 81.3% from RMB514.4 million for the
corresponding period in 2015, primarily driven by a 53.4% increase
in costs for the P&C insurance agency business to RMB687.5
million (US$99.0 million) for the fourth quarter of 2016, and a
269.9% increase in costs for the life insurance agency business to
RMB245.1 million (US$35.3 million) for the fourth quarter of 2016.
The increase in costs for the P&C insurance agency business was
primarily driven by sales growth and increased commissions paid to
sales agents in the highly competitive auto insurance market. The
increase in the costs for the life insurance agency business was
generally in line with the increase in revenues in that business in
the fourth quarter of 2016. Costs incurred by the insurance agency
business accounted for 79.8% of total operating costs in the fourth
quarter of 2016.- Costs of insurance brokerage
business were RMB179.5 million (US$25.8 million) for the
fourth quarter of 2016, representing an increase of 137.3% from
RMB75.6 million for the corresponding period in 2016. The increase
was primarily due to sales growth. Costs incurred by the insurance
brokerage business accounted for 15.3% of total operating costs in
the fourth quarter of 2016.- Costs of claims adjusting
business were RMB57.3 million (US$8.2 million) for the
fourth quarter of 2016, representing an increase of 8.7% from
RMB52.7 million for the corresponding period in 2015. Costs
incurred by the claims adjusting business accounted for 4.9% of
total operating costs in the fourth quarter of 2016.
- Selling expenses were RMB185.2 million
(US$26.7 million) for the fourth quarter of 2016, representing an
increase of 227.2% from RMB56.6 million for the corresponding
period in 2015, primarily attributable to RMB134.7 million (US$19.4
million) in marketing expenses in the fourth quarter of the
year.
- General and administrative expenses were
RMB145.3 million (US$20.9 million) for the fourth quarter of 2016,
representing an increase of 13.6% from RMB127.9 million for the
corresponding period in 2015. The increase was primarily due to
increases in payroll and rental expenses, partially offset by
declines in share-based compensation expense and depreciation
expenses.
As a result of the preceding factors, we had an
operating income of RMB34.7 million (US$5.0
million) for the fourth quarter of 2016, representing an increase
of 5.7% from RMB32.8 million for the corresponding period in
2015.
Operating margin was 2.3% for
the fourth quarter of 2016, compared to 3.8% for the corresponding
period in 2015. The decrease in operating margin for the fourth
quarter of 2016 was mainly due to enhanced marketing efforts to
develop market shares in 2016.
Investment income was RMB53.8
million (US$7.8 million) for the fourth quarter of 2016,
representing an increase of 157.8% from RMB20.9 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, which pay interest 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 RMB0.4
million (US$0.1 million) for the fourth quarter of 2016,
representing a decrease of 96.1% from RMB9.2 million for the
corresponding period in 2015. The decrease in interest income was
primarily due to decreases in term deposits as a result of an
increase in short-term investments.
Income tax expense was RMB20.5
million (US$3.0 million) for the fourth quarter of 2016,
representing an increase of 131.1% from RMB8.9 million for the
corresponding period in 2015. The increase was primarily due to an
increase in investment income. The effective tax rate for the
fourth quarter of 2016 was 23.2% compared with 13.1% for the
corresponding period in 2015.
Share of income of affiliates
was RMB13.9 million (US$2.0 million) for the fourth quarter of
2016, representing an increase of 460.3% from RMB2.5 million for
the corresponding period in 2015, mainly attributable to an
increase of 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 RMB74.6 million (US$10.7 million) for the
fourth quarter of 2016, representing an increase of 35.4% from
RMB55.1 million for the corresponding period in 2015.
Net margin was 4.9% for the
fourth quarter of 2016 compared with 6.4% for the corresponding
period in 2015. The decrease in net margin for the fourth quarter
of 2016 was mainly due to enhanced marketing efforts to increase
market shares in 2016.
Basic and
diluted net income per ADS were RMB1.28
(US$0.18) and RMB1.23 (US$0.18) for the fourth quarter of 2016,
respectively, representing increases of 34.1% and 34.6% from
RMB0.96 and RMB0.91 for the corresponding period in 2015.
Financial Results for
the Year Ended December 31,
2016
Total net revenues were RMB4.7
billion (US$677.0 million) for fiscal year 2016, representing an
increase of 66.2% from RMB2.8 billion in fiscal year 2015.
- Net revenues of insurance agency business were
RMB3.7 billion (US$539.6 million) for fiscal year 2016,
representing an increase of 73.8% from RMB2.2 billion in fiscal
year 2015. The increase was primarily driven by (i) a 50.2%
increase in net revenues derived from the P&C insurance agency
business, from RMB1.8 billion for 2015 to RMB2.8 billion (US$396.9
million) for the year of 2016, and (ii) a 209.6% increase in net
revenues derived from the life insurance agency business, from
RMB319.9 million for 2015 to RMB990.5 million (US$142.7 million)
for 2016. The growth of the P&C insurance agency business was
primarily due to a 41.4% 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 244.1% increase in commissions derived from new long-term life
insurance policy sales, which was primarily driven by the
successful implementation of our cross-selling strategy and overall
industry growth. Revenues generated from the insurance agency
business accounted for 79.7% of total net revenues in 2016.
- Net revenues of insurance brokerage business
were RMB617.7 million (US$89.0 million) for fiscal year 2016,
representing an increase of 67.3% from RMB369.2 million in fiscal
year 2015. Revenues generated from the insurance brokerage business
accounted for 13.1% of total net revenues in 2016.
- Net revenues of claims adjusting business were
RMB336.4 million (US$48.5 million) for fiscal year 2016,
representing an increase of 10.7% from RMB303.8 million in fiscal
year 2015. Revenues generated from the claims adjusting business
accounted for 7.2% of total net revenues in 2016.
Total operating costs and
expenses were RMB4.7 billion (US$675.0 million) for fiscal
year 2016, representing an increase of 70.4% from
RMB2.7 billion in fiscal year 2015.
- Total operating costs were RMB3.6 billion
(US$520.0 million) for fiscal year 2016, representing an increase
of 67.9% from RMB2.2 billion in fiscal year 2015.- Costs of
insurance agency business were RMB2.9 billion (US$418.7
million) for fiscal year 2016, representing an increase of 73.5%
from RMB1.7 billion in fiscal year 2015, primarily driven by an
increase of 51.9% in costs for the P&C insurance agency
business, and an increase of 227.9% in costs for the life insurance
agency business, largely in line with the growth in net revenues of
the P&C and life insurance agency businesses. Costs incurred by
the insurance agency business accounted for 80.5% of total
operating costs in 2016.- Costs of insurance brokerage
business were RMB503.9 million (US$72.6 million) for
fiscal year 2016, representing an increase of 71.5% from RMB293.9
million in fiscal year 2015. The increase was primarily due to
sales growth. Costs incurred by the insurance brokerage business
accounted for 14.0% of total operating costs in 2016.-
Costs of claims adjusting business were RMB199.8 million
(US$28.8 million) for fiscal year 2016, representing an increase of
10.2% from RMB181.4 million in fiscal year 2015. The increase was
primarily attributable to sales growth and the increased average
salaries for claims adjustors. Costs incurred by the claims
adjusting business accounted for 5.5% of total operating costs in
2016.
- Selling expenses were RMB588.8 million
(US$84.8 million) for fiscal year 2016, representing an increase of
311.0% from RMB143.3 million in fiscal year 2015, primarily
attributable to RMB415.5 million (US$59.8 million) of marketing
expenses in the year.
- General and administrative expenses were
RMB487.2 million (US$70.2 million) for fiscal year 2016,
representing an increase of 6.8% from RMB456.0 million in fiscal
year 2015. The increase was primarily due to the increase in
payroll and rental expenses, though partially offset by the
decrease in share-based compensation expenses and depreciation
expenses.
As a result of the preceding factors,
operating income was RMB14.0 million (US$2.0
million) for fiscal year 2016, representing a decrease of 82.1%
from RMB78.5 million in fiscal year 2015.
Operating margin was 0.3% for
fiscal year 2016, compared with 2.8% in fiscal year 2015. The
decrease in operating margin for fiscal year 2016 was mainly due to
enhanced marketing efforts to increase market shares in
2016.
Investment income was RMB118.4
million (US$17.1 million) for fiscal year 2016, representing an
increase of 80.5% from RMB65.6 million in fiscal year 2015. The
increase was primarily attributable to an increase in short term
investment products.
Interest income was RMB6.9
million (US$1.0 million) for fiscal year 2016, representing a
decrease of 87.9% from RMB57.2 million in fiscal year 2015. The
decrease in interest income was primarily due to decreases in term
deposits as a result of an increase in short-term investments.
Income tax expense was RMB28.4
million (US$4.1 million) for fiscal year 2016, representing an
increase of 9.6% from RMB25.9 million in fiscal year 2015. The
effective tax rate for fiscal year 2016 was 19.2% compared with
12.1% in fiscal year 2015. The increase in effective tax rate was
primarily due to preferential tax treatment enjoyed by one of our
subsidiaries in 2015, which was not available in 2016.
Share of income of affiliates
was RMB48.3 million (US$7.0 million) for fiscal year 2016,
representing an increase of 79.4% from RMB26.9 million in fiscal
year 2015, mainly attributable to an increase of 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 RMB157.0 million (US$22.6 million) for
fiscal year 2016, representing a decrease of 25.2% from RMB210.1
million in fiscal year 2015.
Net margin was 3.3% for fiscal
year 2016 compared with 7.4% in fiscal year 2015. The decrease in
net margin for fiscal year 2016 was mainly due to enhanced
marketing efforts to increase market shares in 2016.
Basic and
diluted net income per ADS was RMB2.71
(US$0.39) and RMB2.60 (US$0.37) for fiscal year 2016, respectively,
representing decreases of 25.9% and 25.6% from RMB3.65 and RMB3.49
respectively in fiscal year 2015.
As of December 31, 2016, the Company had RMB240.2 million
(US$34.6 million) in cash and cash
equivalents.
Key Operational Metrics for Fanhua's Online Initiatives
for Year 2016:
- CNpad Mobile Application("CNpad App") - Our proprietary
mobile sales support system:- CNpad App
has been downloaded and activated 212,317 times as of December 31,
2016, representing an increase of 93.4% from 109,784 times as of
December 31, 2015;- The number of active
users3 of CNpad App was 78,216 in
2016, representing an increase of 23.0% 63,591 in 2015;-
Insurance premiums generated through
CNpad App were RMB3.8 billion
(US$547.6 million), representing an increase of 29.0% from RMB2.9
billion in 2015 and accounted for 26.0% of our total
insurance premiums in 2016 as compared to 30.2% in 2015.
- eHuzhu - Our online non-profit mutual aid
platform:- The number of registered
members was 1,352,084 as of December 31, 2016,
representing an increase of 99.3% from 678,547 as of December 31,
2015.
- Baoxian.com - Our online insurance
platform:- The number of active customer
accounts4 was 158,683 in 2016, representing an
increase of 118.1% from 72,745 in 2015;- Insurance premiums
generated on or through Baoxian.com RMB91.2 million
(US$13.1 million) in 2016, representing an increase of 88.8% from
RMB48.3 million in 2015.
Recent Development
- On December 28, 2016, Fanhua entered into a strategic
partnership with Tian’an Property Insurance Co., Ltd ("Tian’an"),
pursuant to which the two parties agreed to cooperate with each
other closely on business areas such as insurance product
innovation, insurance claims adjustment and internet
insurance.
- Fanhua had 231,592 sales agents and 1,304 professional claims
adjustors as of December 31, 2016, compared with 116,164 sales
agents, and 1,451 professional claims adjustors as of December 31,
2015. As of December 31, 2016, Fanhua’s distribution network
consisted of 746 sales outlets operating in 21 provinces, compared
with 412 sales outlets operating in 17 provinces as of December 31,
2015. Its claims adjusting service network covered 29 provinces
with 161 service outlets as of December 31, 2016, compared with 162
service outlets in 27 provinces as of December 31, 2015.
Business Outlook
Fanhua expects its operating income to be no
less than RMB40 million for the first quarter of 2017 and no less
than RMB180 million for 2017. This forecast reflects Fanhua’s
current view, which is subject to change.
Conference Call
The Company will host a conference call to
discuss its fourth quarter and fiscal year 2016 financial results
as per the following details.
Time: 8:00 PM Eastern Time on March 6, 2017
or 9:00 AM Beijing/Hong Kong Time on March
7, 2017
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 #:
70494822 |
|
|
Additionally, a live and archived web cast of this call will be
available at: http://ir.fanhuaholdings.com/events.cfm
About Fanhua Inc.
Fanhua 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 Fanhua Inc., please
visit http://ir.fanhuaholdings.com/.
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 Fanhua 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 Fanhua 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 Fanhua 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 Fanhua is
included in Fanhua's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F.
|
FANHUA INC. |
Unaudited Condensed Consolidated Balance
Sheets |
(In thousands) |
|
|
|
|
|
As of December 31, |
|
As of December 31, |
|
As of December 31, |
|
2015 |
|
2016 |
|
2016 |
|
RMB |
RMB |
US$ |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash
and cash equivalents |
1,115,266 |
|
|
240,242 |
|
|
34,602 |
|
Restricted cash |
17,585 |
|
|
33,737 |
|
|
4,859 |
|
Short
term investments |
2,026,256 |
|
|
2,797,842 |
|
|
402,973 |
|
Accounts receivable, net |
241,264 |
|
|
502,975 |
|
|
72,443 |
|
Insurance premium receivables |
1,526 |
|
|
187 |
|
|
27 |
|
Other
receivables |
51,828 |
|
|
49,186 |
|
|
7,084 |
|
Amounts due from related parties |
36,508 |
|
|
32,495 |
|
|
4,680 |
|
Other
current assets |
22,828 |
|
|
37,900 |
|
|
5,459 |
|
Total current assets |
3,513,061 |
|
|
3,694,564 |
|
|
532,127 |
|
|
|
|
|
Non-current assets: |
|
|
|
Property, plant, and equipment, net |
34,145 |
|
|
31,414 |
|
|
4,525 |
|
Goodwill and intangible assets, net |
153,182 |
|
|
181,549 |
|
|
26,149 |
|
Deferred tax assets |
1,658 |
|
|
8,277 |
|
|
1,192 |
|
Investment in affiliates |
284,194 |
|
|
294,576 |
|
|
42,427 |
|
Other
non-current assets |
28,188 |
|
|
28,188 |
|
|
4,060 |
|
Total non-current assets |
501,367 |
|
|
544,004 |
|
|
78,353 |
|
Total assets |
4,014,428 |
|
|
4,238,568 |
|
|
610,480 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable (including accounts payable of the consolidated
variable interest entities ("VIEs") without recourse to Fanhua Inc.
of RMB4,141 and nil as of December 31, 2015 and 2016,
respectively) |
160,891 |
|
|
278,188 |
|
|
40,067 |
|
Insurance premium payables (including insurance premium payables of
the consolidated VIEs without recourse to Fanhua Inc. of RMB1,680
and nil as of December 31, 2015 and 2016, respectively) |
5,187 |
|
|
5,491 |
|
|
791 |
|
Other
payables and accrued expenses (including other payables and accrued
expense of the consolidated VIEs without recourse to Fanhua Inc. of
RMB5,720 and nil as of December 31, 2015 and 2016,
respectively) |
213,562 |
|
|
314,051 |
|
|
45,233 |
|
Accrued payroll (including accrued payroll of the consolidated VIEs
without recourse to Fanhua Inc. of RMB1,625 and nil as
of December 31, 2015 and 2016, respectively) |
48,150 |
|
|
59,201 |
|
|
8,527 |
|
Income tax payable (including income tax payable of the
consolidated of VIEs without recourse to Fanhua Inc. of RMB1,152
and nil as of December 31, 2015 and 2016,
respectively) |
60,658 |
|
|
90,188 |
|
|
12,990 |
|
Total current liabilities |
488,448 |
|
|
747,119 |
|
|
107,608 |
|
|
Non-current
liabilities: |
|
|
|
Other tax
liabilities |
70,354 |
|
|
72,778 |
|
|
10,482 |
|
Deferred tax
liabilities |
22,057 |
|
|
14,577 |
|
|
2, 099 |
|
Total
non-current liabilities |
92,411 |
|
|
87,355 |
|
|
12,581 |
|
Total
liabilities |
580,859 |
|
|
834,474 |
|
|
120,189 |
|
|
|
|
|
|
|
|
|
|
Ordinary shares |
8,592 |
|
|
8,658 |
|
|
1,247 |
|
Additional paid-in
capital |
2,454,244 |
|
|
2,301,655 |
|
|
331,507 |
|
Statutory reserves |
302,115 |
|
|
311,590 |
|
|
44,878 |
|
Retained earnings |
871,356 |
|
|
1,018,928 |
|
|
146,756 |
|
Accumulated other
comprehensive loss |
(50,048 |
) |
|
(65,844 |
) |
|
(9,483 |
) |
Subscription
receivables |
(268,829 |
) |
|
(288,135 |
) |
|
(41,500 |
) |
Total The
Company's shareholders’ equity |
3,317,430 |
|
|
3,286,852 |
|
|
473,405 |
|
Non-controlling
interests |
116,139 |
|
|
117,242 |
|
|
16,886 |
|
Total
equity |
3,433,569 |
|
|
3,404,094 |
|
|
490,291 |
|
Total
liabilities and equity |
4,014,428 |
|
|
4,238,568 |
|
|
610,480 |
|
|
|
|
|
|
|
|
|
|
FANHUA 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 Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net
revenues: |
|
|
|
|
|
|
Agency |
668,356 |
|
|
1,219,704 |
|
|
175,674 |
|
|
2,155,264 |
|
|
3,746,471 |
|
|
539,604 |
|
Brokerage |
95,034 |
|
|
211,084 |
|
|
30,402 |
|
|
369,198 |
|
|
617,738 |
|
|
88,973 |
|
Claims adjusting |
96,613 |
|
|
103,674 |
|
|
14,932 |
|
|
303,846 |
|
|
336,413 |
|
|
48,454 |
|
Total net
revenues |
860,003 |
|
|
1,534,462 |
|
|
221,008 |
|
|
2,828,308 |
|
|
4,700,622 |
|
|
677,031 |
|
Operating costs
and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
(514,350 |
) |
|
(932,564 |
) |
|
(134,317 |
) |
|
(1,675,261 |
) |
|
(2,906,791 |
) |
|
(418,665 |
) |
Brokerage |
(75,620 |
) |
|
(179,451 |
) |
|
(25,846 |
) |
|
(293,875 |
) |
|
(503,925 |
) |
|
(72,580 |
) |
Claims adjusting |
(52,691 |
) |
|
(57,273 |
) |
|
(8,249 |
) |
|
(181,370 |
) |
|
(199,810 |
) |
|
(28,779 |
) |
Total operating
costs |
(642,661 |
) |
|
(1,169,288 |
) |
|
(168,412 |
) |
|
(2,150,506 |
) |
|
(3,610,526 |
) |
|
(520,024 |
) |
Selling expenses |
(56,609 |
) |
|
(185,210 |
) |
|
(26,676 |
) |
|
(143,279 |
) |
|
(588,822 |
) |
|
(84,808 |
) |
General and
administrative expenses |
(127,906 |
) |
|
(145,268 |
) |
|
(20,923 |
) |
|
(456,001 |
) |
|
(487,234 |
) |
|
(70,176 |
) |
Total operating
costs and expenses |
(827,176 |
) |
|
(1,499,766 |
) |
|
(216,011 |
) |
|
(2,749,786 |
) |
|
(4,686,582 |
) |
|
(675,008 |
) |
Income from
operations |
32,827 |
|
|
34,696 |
|
|
4,997 |
|
|
78,522 |
|
|
14,040 |
|
|
2,023 |
|
Other income,
net: |
|
|
|
|
|
|
Investment income |
20,886 |
|
|
53,837 |
|
|
7,754 |
|
|
65,624 |
|
|
118,421 |
|
|
17,056 |
|
Interest
income |
9,206 |
|
|
358 |
|
|
52 |
|
|
57,234 |
|
|
6,931 |
|
|
998 |
|
Others,
net |
5,033 |
|
|
(407 |
) |
|
(59 |
) |
|
13,042 |
|
|
8,306 |
|
|
1,196 |
|
Income before
income taxes and income of affiliates |
67,952 |
|
|
88,484 |
|
|
12,744 |
|
|
214,422 |
|
|
147,698 |
|
|
21,273 |
|
Income tax expense |
(8,876 |
) |
|
(20,511 |
) |
|
(2,954 |
) |
|
(25,865 |
) |
|
(28,353 |
) |
|
(4,084 |
) |
Share of income of
affiliates |
2,480 |
|
|
13,895 |
|
|
2,001 |
|
|
26,924 |
|
|
48,293 |
|
|
6,955 |
|
Net
income |
61,556 |
|
|
81,868 |
|
|
11,791 |
|
|
215,481 |
|
|
167,638 |
|
|
24,144 |
|
less: net income
attributable to noncontrolling interests |
6,467 |
|
|
7,274 |
|
|
1,048 |
|
|
5,395 |
|
|
10,591 |
|
|
1,526 |
|
Net income
attributable to the Company’s shareholders |
55,089 |
|
|
74,594 |
|
|
10,743 |
|
|
210,086 |
|
|
157,047 |
|
|
22,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.05 |
|
|
0.06 |
|
|
0.01 |
|
|
0.18 |
|
|
0.14 |
|
|
0.02 |
|
Diluted |
0.05 |
|
|
0.06 |
|
|
0.01 |
|
|
0.17 |
|
|
0.13 |
|
|
0.02 |
|
Net income per ADS: |
|
|
|
|
|
|
Basic |
0.96 |
|
|
1.28 |
|
|
0.18 |
|
|
3.65 |
|
|
2.71 |
|
|
0.39 |
|
Diluted |
0.91 |
|
|
1.23 |
|
|
0.18 |
|
|
3.49 |
|
|
2.60 |
|
|
0.37 |
|
|
|
|
|
|
|
|
Shares used in calculating net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1,152,826,984 |
|
|
1,164,454,046 |
|
|
1,164,454,046 |
|
|
1,151,705,374 |
|
|
1,160,592,325 |
|
|
1,160,592,325 |
|
Diluted |
1,206,237,783 |
|
|
1,213,598,234 |
|
|
1,213,598,234 |
|
|
1,203,323,521 |
|
|
1,208,821,796 |
|
|
1,208,821,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
61,556 |
|
|
81,868 |
|
|
11,791 |
|
|
215,481 |
|
|
167,638 |
|
|
24,144 |
|
Other
comprehensive income (loss), net of tax: Foreign currency
translation adjustments |
1,010 |
|
|
(7,151 |
) |
|
(1,030 |
) |
|
6,153 |
|
|
2,177 |
|
|
314 |
|
Fair
value changes |
— |
|
|
632 |
|
|
91 |
|
|
— |
|
|
632 |
|
|
91 |
|
Share of
other comprehensive gain (loss) of affiliates |
37,567 |
|
|
(955 |
) |
|
(138 |
) |
|
37,567 |
|
|
(37,911 |
) |
|
(5,460 |
) |
Comprehensive
income |
100,113 |
|
|
74,394 |
|
|
10, 714 |
|
|
259,201 |
|
|
132,536 |
|
|
19,089 |
|
Less:
Comprehensive income attributable to the noncontrolling
interests |
6,467 |
|
|
7,274 |
|
|
1,048 |
|
|
5,395 |
|
|
10,591 |
|
|
1,526 |
|
Comprehensive
income attributable to the Company’s shareholders |
93,666 |
|
|
67,120 |
|
|
9,666 |
|
|
253,806 |
|
|
121,945 |
|
|
17,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FANHUA INC. |
Unaudited Condensed
Consolidated Statements of Cash Flow |
(In thousands) |
|
|
|
|
For The Three Months Ended |
|
For The Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income |
61,556 |
|
|
81,868 |
|
|
11,791 |
|
|
215,481 |
|
|
167,638 |
|
|
24,144 |
|
Adjustments to reconcile net income to net cash generated
from operating activities: |
|
|
|
|
|
|
Depreciation |
4,075 |
|
|
3,288 |
|
|
474 |
|
|
18,383 |
|
|
13,492 |
|
|
1,943 |
|
Amortization of intangible assets |
2,270 |
|
|
8,800 |
|
|
1,267 |
|
|
11,571 |
|
|
20,232 |
|
|
2,914 |
|
Allowance for doubtful receivables |
4,694 |
|
|
1,839 |
|
|
265 |
|
|
7,597 |
|
|
2,381 |
|
|
343 |
|
Compensation expenses associated with stock option |
2,829 |
|
|
— |
|
|
— |
|
|
17,653 |
|
|
4,937 |
|
|
711 |
|
Investment income |
(1,352 |
) |
|
(45,755 |
) |
|
(6,590 |
) |
|
(31,091 |
) |
|
(83,681 |
) |
|
(12,053 |
) |
(Gain) loss on disposal of property, plant and equipment |
(143 |
) |
|
14 |
|
|
2 |
|
|
(126 |
) |
|
115 |
|
|
17 |
|
Share
of income of affiliates |
(2,480 |
) |
|
(13,895 |
) |
|
(2,001 |
) |
|
(26,924 |
) |
|
(48,293 |
) |
|
(6,955 |
) |
Changes in operating assets and liabilities |
101,951 |
|
|
77,357 |
|
|
11,142 |
|
|
68,760 |
|
|
11,025 |
|
|
1,588 |
|
Net cash generated from operating activities |
173,400 |
|
|
113,516 |
|
|
16,350 |
|
|
281,304 |
|
|
87,846 |
|
|
12,652 |
|
Cash flows used in investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
(2,845 |
) |
|
(4,345 |
) |
|
(626 |
) |
|
(6,663 |
) |
|
(11,885 |
) |
|
(1,712 |
) |
Proceeds from disposal of property and equipment |
159 |
|
|
— |
|
|
— |
|
|
539 |
|
|
48 |
|
|
7 |
|
Purchase of short term investments |
(1,353,956 |
) |
|
(2,973,700 |
) |
|
(428,302 |
) |
|
(2,308,956 |
) |
|
(9,515,500 |
) |
|
(1,370,517 |
) |
Proceeds from disposal of short term investments |
704,052 |
|
|
2,878,955 |
|
|
414,656 |
|
|
994,839 |
|
|
8,825,355 |
|
|
1,271,116 |
|
Acquisition of subsidiaries, net of cash |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,185 |
) |
|
(603 |
) |
Disposal of subsidiaries, net of cash |
— |
|
|
— |
|
|
— |
|
|
15,476 |
|
|
29,376 |
|
|
4,231 |
|
Increase in restricted cash |
(1,771 |
) |
|
(7,016 |
) |
|
(1,011 |
) |
|
(10,107 |
) |
|
(16,152 |
) |
|
(2,326 |
) |
Decrease in other receivables |
16,120 |
|
|
— |
|
|
— |
|
|
16,120 |
|
|
— |
|
|
— |
|
Purchase of intangible assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(60,000 |
) |
|
(8,642 |
) |
Addition in investment in non-current assets |
(3,980 |
) |
|
— |
|
|
— |
|
|
(13,980 |
) |
|
— |
|
|
— |
|
Decrease in amounts due from related parties |
69,242 |
|
|
— |
|
|
— |
|
|
181,181 |
|
|
— |
|
|
— |
|
Net cash used in investing activities |
(572,979 |
) |
|
(106,106 |
) |
|
(15,283 |
) |
|
(1,131,551 |
) |
|
(752,943 |
) |
|
(108,446 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
generated from (used in) financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
additional interest in subsidiaries |
— |
|
|
— |
|
|
— |
|
|
(153,500 |
) |
|
(213,534 |
) |
|
(30,755 |
) |
Dividend distributed to
noncontrolling interests |
— |
|
|
— |
|
|
— |
|
|
(2,450 |
) |
|
— |
|
|
— |
|
Repurchase of ordinary
shares |
— |
|
|
— |
|
|
— |
|
|
(6,276 |
) |
|
— |
|
|
— |
|
Capital injection by
noncontrolling interests |
— |
|
|
— |
|
|
— |
|
|
17,000 |
|
|
— |
|
|
— |
|
Proceeds on exercise of
stock options |
397 |
|
|
399 |
|
|
57 |
|
|
1,518 |
|
|
1,144 |
|
|
165 |
|
Net cash
generated from (used in) financing activities |
397 |
|
|
399 |
|
|
57 |
|
|
(143,708 |
) |
|
(212,390 |
) |
|
(30,590 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents |
(399,182 |
) |
|
7,809 |
|
|
1,124 |
|
|
(993,955 |
) |
|
(877,487 |
) |
|
(126,384 |
) |
Cash and cash
equivalents at beginning of period |
1,513,438 |
|
|
231,512 |
|
|
33,345 |
|
|
2,103,068 |
|
|
1,115,266 |
|
|
160,632 |
|
Effect of exchange rate
changes on cash and cash equivalents |
1,010 |
|
|
921 |
|
|
133 |
|
|
6,153 |
|
|
2,463 |
|
|
354 |
|
Cash and cash
equivalents at end of period |
1,115,266 |
|
|
240,242 |
|
|
34,602 |
|
|
1,115,266 |
|
|
240,242 |
|
|
34,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
paid |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Income
taxes paid |
534 |
|
|
589 |
|
|
85 |
|
|
4,383 |
|
|
4,133 |
|
|
595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
RMB6.943 to US$1.00, the effective noon buying rate as of December
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 expenses” are defined as expenses related to
marketing activities aimed at promoting sales and gaining market
share. Such expenses are included in selling expenses in the
Company’s unaudited condensed consolidated statement of income and
comprehensive income attached hereto. The marketing expenses were
mainly related to P&C insurance business during 2016, which we
expect to significantly decrease in 2017 while we intend to
increase commissions paid to sales agents for P&C insurance
business in 2017.
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@fanhuaholdings.com
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jul 2023 to Jul 2024