Fanhua Announces Strategic Investment from Fosun
April 06 2017 - 8:20AM
Fanhua Inc. ( “Fanhua” or “the Company”) (Nasdaq:FANH), a leading
independent online-to-offline ("O2O") financial services provider
in China, today announced the completion of a private placement of
66,000,000 ordinary shares (equivalent to 3,300,000 ADS) of the
Company, at purchase price of US$0.44185 per ordinary share
(equivalent to US$8.837 per ADS), for a total investment of
US$29,162,100, by Fosun Industrial Holdings Limited ("Fosun"), a
wholly-owned subsidiary of Fosun International Limited (00656.HK)
("Fosun International"). The purchase price represents the average
closing price of the past 20 trading days prior to the signing of
the share purchase agreement between Fosun and the Company on March
29, 2017. Fosun holds 5.34% of the equity interests in the Company
post-closing and its purchased shares are subject to a contractual
one-year lock-up.
In connection with this investment, Fosun and
Fanhua agreed to establish a long term strategic partnership to
pursue strategic collaboration in areas such as insurance,
healthcare, investment and financial services. Fanhua expects to
strengthen business cooperation with Fosun's affiliated insurance
companies to leverage Fosun’s brand name and variety of insurance
offerings with its own extensive insurance sales and service
network.
Commenting on Fosun's strategic investment in
Fanhua, Mr. Chunlin Wang, chief executive officer of Fanhua, said,
“Fosun’s strategic investment in Fanhua validates Fanhua's business
value and its leading position in the professional insurance
intermediary sector. It also constitutes a vote of confidence by
Fosun in Fanhua’s business and long-term growth prospects. Fosun is
a world-class investment group with outstanding industrial
integration capabilities and global asset allocation capabilities.
Fosun has already invested in a number of insurance companies in
China and abroad and its global footprint includes a number of new
business areas including healthcare and internet of vehicles. We
believe Fosun’s investment in and cooperation with the Company will
be instrumental to further diversifying our product offerings,
improving customer experience and strengthening our leadership in
the insurance intermediary sector. Over the long term, we believe
this relationship provides strong momentum towards realizing our
goal of becoming a diversified financial services provider and
achieving sustainable and profitable growth.
“We look forward to exploring opportunities for
deeper cooperation with Fosun in many aspects by leveraging both
parties’ resources and complementary strengths to provide
continuous mutual benefits for the foreseeable future.”
About Fosun Industrial Holdings
Limited
Fosun Industrial Holdings Limited is a
wholly-owned subsidiary of Fosun International, a leading
international investment group based in China. Its main businesses
include integrated finance (wealth) (insurance, investment, wealth
management and innovative finance) and industrial operations
(health, happiness, property development and sales and resources).
Fosun International ranked among the top 100 Chinese companies and
Fortune top 500 listed companies in 2016. Its total assets were
RMB486.8 billion and the total assets of its insurance segment were
RMB203.3 billion as of December 31, 2016. As of date, Fosun
International has invested in a number of insurance companies,
including Yong'an Property Insurance Company Limited, Pramerica
Fosun Life Insurance Co., Ltd., Fosun United Health Insurance
Company Limited, Peak Reinsurance Company Limited,
Fidelidade-Companhia de Seguros, S.A., Meadowbrook Insurance Group,
Inc. and New China Life Insurance Co., Ltd.
About Fanhua
Inc.
Fanhua Inc., formerly known as 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 App, a mobile sales support
application and (3) eHuzhu (www.ehuzhu.com), a non-profit online
mutual aid platform in China.
As of December 31, 2016, our distribution network consisted of
746 sales outlets operating in 21 provinces and its claims
adjusting service network covered 29 provinces with 161 service
outlets.
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, Fanhua’s ability to attract and retain key personnel
and productive 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.
For more information about Fanhua Inc., please visit
http://ir.fanhuaholdings.com/.
CONTACT: Oasis Qiu
Investor Relations Manager
Tel: (8620) 83883191
Email: qiusr@fanhuaholdings.com
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