Fanhua Inc. (Nasdaq:FANH) (the "Company" or "Fanhua"), a
leading independent online-to-offline financial services provider
operating in China, today announced that, with effect from
September 18, 2017, Mr. Chunlin Wang ("Mr. Wang"), chief executive
officer and director of the Company, has been appointed by the
Company’s board of directors (the "Board") to be its chairman,
filling the vacancy left by the resignation of Mr. Yinan Hu ("Mr.
Hu"), the former chairman of the Board. Mr. Hu has informed us that
his resignation is due to personal reasons, though he will remain a
director of the Company.
Mr. Hu is one of the co-founders of Fanhua and
had been Chairman of the Board since 1998. He was also the CEO of
Fanhua between 1998 and 2011.
Mr. Wang joined Fanhua in 1998. He has served as
the CEO of Fanhua since October 2011 and as one of its executive
directors since March 2016.
Commenting on the change, Mr. Hu stated, "I am
glad that Fanhua has established an effective business model over
its 20 years of development and that Fanhua has now embarked on a
journey of sustainable profitability. The management team headed by
Mr. Wang has also aptly demonstrated their business sophistication.
I am convinced that Mr. Wang is fully capable of leading the
Company through a new stage of development as the Chairman of the
Board and CEO of the Company.
Mr. Wang stated, "On behalf of the Board, I’d
like to thank Mr. Hu for his tremendous contributions to Fanhua.
Mr. Hu’s great vision and insights have guided Fanhua to pinpoint
market opportunities amid industry transformations, which
culminated in its rise to leadership in the insurance intermediary
industry. My thanks also go to Mr. Hu and the rest of the Board for
their trust and support. I will try my best to live up to the
expectations that Fanhua’s shareholders have placed in us. I will
work to the best of my ability to realize the goal of propelling
Fanhua to become one of the world’s top insurance
intermediaries."
A Letter To Shareholders
By Chunlin Wang
Dear Shareholders:
Twenty years ago, in the state-monopolized
financial services industry in China, Fanhua was born in Guangzhou,
the forefront of the storied Chinese economic reform. It is hard to
imagine all the dreams and hopes, fame and triumphs as well as
struggles and misunderstandings, trials and hardships that Fanhua
has experienced on this journey. It was even harder to imagine then
that Fanhua would be able to achieve its current market position as
one of the top insurance intermediaries in China and Asia and one
of the top 20 globally1.
I would like to express our deepest gratitude to
the founders of Fanhua, Mr. Yinan Hu and Mr. Qiuping Lai. It is
their professionalism and perseverance, their wisdom and discipline
and their fairness and conviction that led many through their
challenges. Their courage in time of failure, their steadfastness
in the face of turmoil have guided Fanhua into an age of growth and
prosperity twenty years later. Fanhua’s tried-and-true growth
model entails: central focus on building its sales force, targeting
growth in life insurance, enhancing its market competence by
offering a wide spectrum of financial products and services and
best-in-class technology, fostering entrepreneurship systems and
helping individual sales agents and sales team leaders to achieve
the highest income in the industry, which we believe are the keys
to achieving the Company's goal to become an enterprise with more
than RMB100 billion in annual insurance premiums generated.
The success of Fanhua’s growth model is built on
investment in lessons learned from many failed business models over
twenty years. It has developed into an unprecedented model
that is uniquely suitable for the Chinese insurance industry, for
the Chinese marketplace, for Chinese culture and for individuals.
If Fanhua’s history of development can be analogous to a
magnificent symphony, then the growth model would be its
cadenza.
According to the Chinese government’s “two
one-hundred year” goals, China will become a prosperous society in
which all people will be lifted out of poverty by 2020. By the
middle of this century, Chinese GDP will reach the level of
medium-developed nations and achieve modernization.
Currently, there are more than 1 billion people living in developed
countries in the world, which implies that within the next thirty
years, more than half of the population in developed countries will
reside in China. It also implies that China will become the
largest economic power in the world. It is only natural that the
Chinese insurance market will also be the largest insurance market
in the world. Consequently, the largest insurance companies
and insurance intermediaries will also be Chinese companies.
However, China’s life insurance market and asset management market
are only on the cusp of potentially explosive growth. This is
evidenced by the exponential growth in Fanhua’s own life insurance
business in the last two years. Moreover, Fanhua’s ability to
attract the best talent in the industry by leveraging its support
platform also bears witness to the nascent development stage of
China’s insurance service industry.
Ten years ago, Mr. Yinan Hu, then chairman of
the board, shared his vision of Fanhua's future, “What kind of
company will Fanhua become in the future? It will definitely
not be a company that only cares about making money. It will be a
company with social responsibilities, with clear values and with
great aspirations; it will be a company that is admired for its
moral standards; it will be a company that is committed to
satisfying customers' needs throughout their life cycle; it will be
a company that grows with its employees and partners; and it will
be a company with humility, dedication, kindness and love.”
After twenty years of exploration and the
accumulation of experiences, on the strength of Mr. Hu and Mr.
Lai’s operating principles, Fanhua has started on the road to high
growth, sustained profitability and cash generation. Mr. Hu
and Mr. Lai’s corporate values and corporate culture have become
the foundation and motivation of Fanhua’s future growth. In
this pivotal moment, Mr. Hu has chosen to step down as the chairman
of the board and hand the baton to me and the Fanhua management
team. I deeply appreciate his foresight and wisdom. I am also
grateful for his faith and trust in me and the management team.
We also want to thank Mr. Paul Wolansky and Mr.
Hermann Leung from the Cathay Funds, Mr. Shangzhi Wu and Ms.
Xiaojun Shang from CDH, for your continued support of Fanhua
through difficult periods in which the market tended to
misunderstand our business and also for your strong support and
trust in the management team. After 16 years, Mr. Wolansky and Mr.
Leung still remain as our major shareholders. Without your trust
and support, Fanhua would not be able to achieve what it has
accomplished today. Today, Fanhua has established a well-proven
growth model and is able to show great potential for profitability
and sustained operating cash flow. On behalf of all of us from
Fanhua, our highest respect to you all!
I joined Fanhua at its founding, starting as a
low-level employee and progressing one step at a time to reach my
current position. I've witnessed the massive transformation of
China’s insurance intermediary industry. It has been the story of
the birth of insurance intermediaries in China, a journey from
chaos to order. I’ve also witnessed some market participants’
transformation from hope to despair, from success to failure.
However, I’ve never been as confident as I am today that, if China
is to produce the largest insurance intermediary company in the
world, it will be Fanhua! I will lead Fanhua’s management team to
develop, refine and adhere to our profit, operating and growth
models, leveraging the biggest economic entity in the world and
targeting the largest middle-class population. I am confident that
we will build Fanhua into one of the leading insurance sales and
services companies in the world in the next 10 years. Concurrently,
Fanhua will team with the best international partners to build the
world’s best risk management and risk diversification
capabilities.
Fanhua will continue to invest in its support
platform to provide sales training, product development, and
digital sales support tools to millions of sale agents in the
industry. Fanhua will work alongside the “entrepreneur” sales
representatives to provide highly personalized services to tens of
millions of existing and prospective customers. I will remain
dedicated to fulfilling Fanhua’s mission of “assisting
entrepreneurs to achieve their dreams of wealth and helping all
families to achieve financial independence.” I will further
strengthen Fanhua’s value system of “down-to-earth spirit,
inclusiveness, sharing and excellence.” Fanhua will be a haven for
entrepreneurs and Fanhua’s entrepreneurs will represent the best in
the industry and be the most respected by society.
Foresight and innovation, knowledge and
technology, products and services are the core competitiveness of
Fanhua. Together with my team, I will continue to stick to our
asset-light and cashflow-focused business philosophy. We will
strive to achieve steady growth and sustained profitability and to
distribute dividends quarterly while providing long term returns to
our shareholders.
I am acutely aware that achieving excellence is
not a given. It requires constant efforts with no shortcuts or
capitulation. The process is grueling and it is not for the
faint-hearted or those who prefer leisure over hardwork or only
chase fame and fortune. It is for those who take risks, who
innovate, who are dedicated and work hard. I am prepared! My team
and I will lead Fanhua forward for our dreams, our responsibility
and our future!
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 provided by over 90 insurance companies 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, a
consumer-oriented online entry portal for comparing and
purchasing hundreds of health, accident, travel and homeowner
insurance products provided by over 30 insurance companies; (2)
CNpad App, a mobile sales support application that helps insurance
agents provide real-time quotations and online transactions of a
wide spectrum of auto insurance, life insurance and wealth
management products to customers; and (3) eHuzhu (www.ehuzhu.com),
a non-profit online mutual aid platform in China.
Our offline insurance distribution and service
networks cover 29 provinces across China, including most
economically developed cities and regions in China.
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 QiuInvestor Relations ManagerTel: (8620)
83883191Email: qiusr@fanhuaholdings.com
_____________________________1 According to the Top 20 Global
Insurance Brokers Ranked by 2015 Total Revenues presented by Best's
Review, A. M. Best's insurance news magazine.
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