Fanhua Announces Quarterly Dividend Policy and Increase of Dividend Payout Ratio
September 18 2017 - 9:28AM
Fanhua Inc. (Nasdaq:FANH) (the "Company" or "Fanhua"), a leading
independent online-to-offline financial services provider operating
in China, today announced that its board of directors (the “Board”)
has modified its dividend policy to adopt a quarterly payment
schedule in lieu of an annual dividend. Under the revised policy,
dividends will be declared and paid on a quarterly basis, at an
amount equivalent to no less than 50% of net income attributable to
the Company's shareholders in each quarter instead of no less than
30% under the annual dividend policy previously announced on April
20, 2017. The Company expects to declare the first quarterly
dividend by the end of November.
Mr. Chunlin Wang, Chairman of the Board and
Chief Executive Officer of Fanhua, stated, "My team and I believe
that no business, large or small, can be considered successful
without making a profit. We also believe that management's value
lies in their ability to create long term value for shareholders
while enabling employees and, in our case, our sales agents, to
have a highly respected and fulfilling career that can provide them
a strong sense of accomplishment.
"We have enjoyed strong growth in operating
profit over the past consecutive four quarters. Fanhua has shown
great potential for sustained profitability and operating cash
flow, which demonstrates the success of the adjustment to our
business strategy over the past seven years. Therefore, with the
approval of the Board, management has decided to implement a more
generous dividend policy to better reward our shareholders for
their trust and support.
"We believe our ability to generate strong cash
flow and our solid cash position will provide sufficient capital to
support both the boost in dividend payments and our long term
business development."
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
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