Fanhua’s Life Insurance Operation Completes Relocation of Its Head Office
November 05 2018 - 7:57AM
Fanhua Inc. (“Fanhua” or “the Company”) (Nasdaq: FANH), a leading
independent financial services provider in China, today announced
that Fanhua Lianxin Insurance Sales Co., Ltd., a wholly-owned
subsidiary of the Company, which serves as the holding company of
its life insurance operation, has completed the relocation and
registration of its head office from Beijing to Tianfu New Area of
Sichuan Province, which is the 11th state-level new area in China.
The Company expects the relocation to positively
impact its financial results in the following ways:
- On November 2, 2018, the Company received a one-time
reward of RMB8 million from the local government of Tianfu New
Area, which is expected to be recognized in the Company’s financial
statements for the fourth quarter of 2018;
- Fanhua Lianxin will be eligible to benefit from certain
supportive policies provided by the local government on taxation
and financial incentives in accordance with its contribution to the
local economy, which is expected to be reflected in the Company’s
financial statements starting from the fourth quarter of 2018;
- Fanhua Lianxin has resumed collection of
headquarters-to-headquarters commissions receivable from the
Company’s life insurance company partners which had been
temporarily suspended since February 2018 due to the relocation. As
of September 30, 2018, a total of RMB374.0 million
headquarters-to-headquarters commissions receivable has been
collected. As a result, the Company’s operating net cash inflow had
increased significantly in the third quarter of 2018 and is
expected to resume to normal level in the future.
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, 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, a mobile sales support application; (3) eHuzhu
(www.ehuzhu.com), an online mutual aid platform 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.
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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