Fanhua Expands Share Purchase Program
August 29 2018 - 7:24AM
Fanhua Inc. (Nasdaq: FANH) (the "Company" or "Fanhua"), a leading
independent financial services provider operating in China, today
announced that its board of directors has approved to expand its
share purchase program, pursuant to which the maximum number of
shares to be purchased will be increased from an initial round of
US$20 million worth of American Depositary Shares (“ADSs”) to 6.5
million ADSs. Purchases will be made from time to time on the open
market or in block trades at prevailing market prices of no more
than US$29.0 per ADS. The expiration date of the share purchase
program is also extended to December 31, 2018.
The purchased shares will be used as treasury
shares and resold to the participants of Fanhua 521 Development
Plan (“Plan Participants”) at the weighted average of the closing
prices of the purchases under the share purchase program. If the
total number of ADSs purchased under the share purchase program is
less than 6.5 million, the shortfall will be issued by the Company
to the Plan Participants at the same price.
Mr. Chunlin Wang, chairman and chief executive
officer of the Company, stated, “We believe that the current stock
price does not reflect the underlying value of the Company. The
adjustment in the share purchase program and the 521 development
plan will help minimize dilution to existing shareholders. In the
meantime, it closely aligns the interests of our employees and
entrepreneurial team leaders with the Company and our shareholders,
which will further motivate them to achieve the goals set in the
521 Development Plan.”
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) CNpad, a mobile
sales support application; (2) Baoxian.com, an online entry portal
for comparing and purchasing health, accident, travel and homeowner
insurance products; (3) eHuzhu (www.ehuzhu.com), a non-profit
online mutual aid platform in China and (4) Lan Zhanggui, an
all-in-one platform which allows our agents to access and purchase
a wide variety of insurance products, including life insurance,
auto insurance, accident insurance, travel insurance and standard
health insurance products from multiple insurance companies on
their mobile devices.
As of June 30, 2018, our distribution and
service network consisted of 712 sales and service outlets covering
31 provinces.
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, 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/.
Source: Fanhua Inc.
Contact: Oasis Qiu
Investor Relations Manager
Tel: (8620) 83883191
Email: qiusr@fanhuaholdings.com
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