— Quarterly Operating Income Up 48.7%
YoY— Quarterly Diluted Net Income Per ADS Up
69.5% YoY
Fanhua Inc., (Nasdaq: FANH), (the "Company" or "Fanhua"), a leading
independent financial services provider in China, today announced
its unaudited financial results for the third quarter ended
September 30, 20181 and declared a quarterly dividend.
Quarterly Dividend:
On November 17, 2018, Fanhua's Board of
Directors declared a quarterly dividend of US$0.0125 per ordinary
share, or US$0.25 per American Depositary Shares ("ADSs"),
amounting to a total of US$16.0 million. The dividend will be
payable on or around December 20, 2018 to shareholders of record on
December 5, 2018.
Share Buyback Program:
As part of the share buyback program previously
announced to repurchase up to 6.5 million ADSs from the open market
by December 31, 2018, Fanhua has repurchased 1,289,496 ADSs in the
period from August 28, 2018 to November 19, 2018. The ADSs were
repurchased at an average price of US$25.6 per ADS for a total
amount of US$33.1 million.
(In thousands, except per ADS) |
2017Q3(RMB) |
2018Q3(RMB) |
2018Q3(US$) |
Change % |
Total net
revenues |
1,061,928 |
|
783,948 |
|
114,145 |
|
-26.2 |
|
Operating income |
83,755 |
|
124,573 |
|
18,138 |
|
48.7 |
|
Net income attributable to the Company’s shareholders |
112,268 |
|
195,248 |
|
28,429 |
|
73.9 |
|
Diluted net income per ADS |
1.77 |
|
3.00 |
|
0.44 |
|
69.5 |
|
Net cash generated from (used in) operating activities |
(25,677 |
) |
305,657 |
|
44,505 |
|
/ |
|
Financial Highlights for the Third
Quarter of 2018:
Commenting on the third quarter of 2018
financial results, Chunlin Wang, chairman and chief executive
officer of the Company, said, “We continued to report strong
profits in the third quarter of 2018, with operating income
increasing 48.7% year-over-year to RMB124.6 million, once again
beating guidance, and net income attributable to shareholders
growing 73.9% year-over-year to RMB195.2 million.
“Total life insurance premiums grew 10.6%
year-over-year to RMB1.5 billion, of which annualized premiums
equivalent (“APE2”), dropped 28.9% year-over-year to approximately
RMB394.5 million, as the management had previously estimated,
primarily due to the high base in the same period last year.
However, our health insurance business, in terms of APE, still
recorded stellar growth of 101.4% year-over-year, accounting for
82.1% of total life insurance APE in the third quarter of 2018 as
compared to 28.0% a year-ago.
“In the meantime, our consistent focus on long
term regular protection insurance business continued to pay
dividends. Renewal premiums maintained strong growth, increasing by
101.5% year-over-year to RMB960.7 million, which is one of the
major drivers behind the rapid increase of the Company’s operating
income during the quarter. It fully reflects the intrinsic value of
our regular life insurance business and demonstrates the
sustainability of our operating profit growth in the long term as
our renewal businesses continue to accumulate.
“Net operating cash flow increased significantly
during the third quarter of 2018 to RMB305.7 million, as Fanhua
Lianxin Insurance Sales Co., Ltd., (“Lianxin”), a wholly-owned
subsidiary of the Company, completed the relocation of its
headoffice on August 27, 2018 and has since resumed collection of
headquarters-to-headquarters commissions receivable from our life
insurance company business partners which had been temporarily
suspended due to the relocation since February 2018. We expect our
operating cashflow will return to normal level in the next
quarter.
“Looking ahead to the fourth quarter of 2018, we
expect APE of our life insurance business to grow no less than 35%
year-over-year to RMB460 million, with operating income of no less
than RMB80 million. For full year 2018, we expect APE of our life
insurance business to achieve positive growth year-over-year and
operating income to increase by no less than 50% year-over-year. We
have full confidence in achieving these operating targets.”
Financial Results for the Third Quarter
of 2018
Total net revenues were
RMB783.9 million (US$114.1 million) for the third quarter of 2018,
representing a decrease of 26.2% from RMB1,061.9 million for the
corresponding period in 2017.
• Net revenues for the
life insurance
business were RMB654.5 million (US$95.3 million)
for the third quarter of 2018, representing a decrease of 10.4%
from RMB730.5 million for the corresponding period in 2017. The
decrease was mainly due to the decrease in first year premiums due
to the high base in the same period last year. Revenues generated
from our life insurance business accounted for 83.5% of our total
net revenues in the third quarter of 2018.
• Net revenues for the P&C insurance
business were RMB49.5 million (US$7.2 million) for the
third quarter of 2018, representing a decrease of 80.9% from
RMB258.8 million for the corresponding period in 2017. The decrease
was primarily due to i) the disposal of the equity interests of
some entities in the P&C insurance division in October 2017;
and ii) the transition of our auto insurance business from a
commission-based business model towards a platform business model
starting from the fourth quarter of 2017. Revenues for the P&C
insurance business are mainly derived from commissions generated
from Baoxian.com and the technology service fees based on the
volume of insurance premiums transacted through CNpad. Revenues
generated from the P&C insurance business accounted for 6.3% of
our total net revenues in the third quarter of 2018.
• Net revenues for the claims adjusting
business were RMB79.9 million (US$11.6 million) for the
third quarter of 2018, representing an increase of 9.9% from
RMB72.7 million for the corresponding period in 2017. Revenues
generated from the claims adjusting business accounted for 10.2% of
our total net revenues in the third quarter of 2018.
Total operating costs and
expenses were RMB659.4 million (US$96.0 million) for the
third quarter of 2018, representing a decrease of 32.6% from
RMB978.2 million for the corresponding period in 2017.
• Commission costs were
RMB481.4 million (US$70.1 million) for the third quarter of 2018,
representing a decrease of 38.0% from RMB776.7 million for the
corresponding period in 2017. The decrease was mainly due to the
decrease in commission costs of P&C insurance business and life
insurance business.
- Costs of the life insurance business were
RMB404.7 million (US$58.9 million) for the third quarter of 2018,
representing a decrease of 20.9% from RMB511.4 million for the
corresponding period in 2017. The decrease was in line with the
decrease in the first year premiums. Costs incurred by the life
insurance business accounted for 84.1% of our total commission
costs in the third quarter of 2018.
- Costs of the P&C
insurance business were RMB32.5 million (US$4.7 million)
for the third quarter of 2018, representing a decrease of 85.3%
from RMB221.7 million for the corresponding period in 2017. The
decrease was in line with the decrease in sales, and primarily
caused by i) the disposal of the equity interests of some entities
in the P&C insurance division in October 2017; and ii) the
transition of our P&C insurance business from a
commission-based business model towards a platform business model
starting from the fourth quarter of 2017. The costs of the P&C
insurance business mainly represent commission costs incurred for
business on Baoxian.com. Costs incurred by the P&C insurance
business accounted for 6.8% of our total commission costs in the
third quarter of 2018.
- Costs of claims adjusting business were
RMB44.1 million (US$6.4 million) for the third quarter of 2018,
representing an increase of 1.4% from RMB43.5 million for the
corresponding period in 2017. Costs incurred by the claims
adjusting business accounted for 9.1% of our total commission costs
in the third quarter of 2018.
• Selling expenses were RMB57.0 million (US$8.3
million) for the third quarter of 2018, representing an increase of
5.2% from RMB54.2 million for the corresponding period in 2017.
• General and administrative
expenses were RMB121.0
million (US$17.6 million) for the third quarter of 2018,
representing a decrease of 17.9% from RMB147.3 million for the
corresponding period in 2017. The decrease was mainly due to a
significant reduction in expenses incurred by our P&C insurance
agencies as a result of the migration to the platform business
model since the fourth quarter of 2017 as well as the disposal of
certain P&C insurance agencies, though partially offset by an
increase in expenses incurred by new office setup and staff
recruitment in relation to regional expansion.
As a result of the preceding factors, we had an
operating income of RMB124.6 million (US$18.1
million) for the third quarter of 2018, representing an increase of
48.7% from RMB83.8 million for the corresponding period in
2017.
Operating margin was 15.9% for
the third quarter of 2018, compared to 7.9% for the corresponding
period in 2017. The increase was primarily due to (i) the increased
contribution of life insurance business, which have higher profit
margins and (ii) the disposal of lower-profit business of the
P&C insurance division in October 2017.
Investment income was RMB75.5
million (US$11.0 million) for the third quarter of 2018,
representing an increase of 70.8% from RMB44.2 million for the
corresponding period in 2017. The investment income represented
yields from short-term investments in financial products which
mainly consist of inter-bank deposits or collective trust products
with terms ranging from half a year to two years and interest
payable on a quarterly, semi-annual or annual basis. Our investment
income fluctuates from quarter to quarter because these investments
are classified as available for sales and investment income is
recognized when received.Interest income was
RMB13.5 million (US$2.0 million) for the third quarter of 2018,
representing an increase of 22.7% from RMB11.0 million for the
corresponding period in 2017, primarily due to interest related to
amounts due from Shenzhen Chuangjia Investment Limited Partnership
(“Chuangjia”) which previously held 84.59% of the equity interests
in Fanhua Puyi Fund Sales Co. Ltd. The principle and interests
receivable related to the loan to Chuangjia were fully collected in
August 2018.Income tax expense was RMB66.4 million
(US$9.7 million) for the third quarter of 2018, representing an
increase of 30.5% from RMB50.9 million for the corresponding period
in 2017.
Share of income of affiliates
was RMB48.3 million (US$7.0 million) for the third quarter of 2018,
representing an increase of 100.4% from RMB24.1 million for the
corresponding period in 2017 mainly attributable to an increase of
profits from CNFinance Holdings Limited (“CNfinance”).
Net income from continuing
operations was RMB196.6 million (US$28.6 million) for the
third quarter of 2018, representing an increase of 72.9% from
RMB113.7 million for the corresponding period in 2017.
Net income from discontinued
operations3 was nil for the third quarter of 2018, as
compared to a net income of RMB0.01 million for the corresponding
period in 2017, representing the net income from the Company’s
brokerage segment, which was disposed of in November 2017.
Net income attributable to the Company’s
shareholders was RMB195.2 million (US$28.4 million) for
the third quarter of 2018, representing an increase of 73.9% from
RMB112.3 million for the corresponding period in 2017.
Net margin was 24.9% for the
third quarter of 2018 compared with 10.6% for the corresponding
period in 2017.
Basic and
diluted net income per ADS were RMB3.01
(US$0.44) and RMB3.00 (US$0.44) for the third quarter of 2018,
respectively, representing increases of 67.2% and 69.5% from
RMB1.80 and RMB1.77 for the corresponding period in 2017.
As of September 30, 2018, the Company had RMB2.3 billion
(US$340.9 million) in cash,
cash equivalents and short term
investments.
Key Operational Metrics for Fanhua's Online Initiatives
for the Third Quarter of 2018:
• Lan Zhanggui - Our one-stop
insurance service platform that integrates the key functions of
both CNpad Auto Insurance and CNpad Life Insurance App, which was
launched in October 2017. All CNpad Life Insurance App accounts
have been converted to Lan Zhanggui.
- Lan Zhanggui had been downloaded and activated
716,397 times as of September 30, 2018, representing an increase of
114.7% from 333,744 downloads of CNpad Life Insurance App as of
September 30, 2017;
- The number of active users of Lan Zhanggui4
was 53,713 including 44,686 users who have sold at least one life
insurance policy and 11,342 users who have sold at least one
P&C insurance policy through Lan Zhanggui in the third quarter
of 2018. The number of active users of CNpad Life Insurance App was
45,988 in the third quarter of 2017;
- Insurance premiums generated
through Lan Zhanggui were RMB 482.6
million (US$70.2 million) in the third quarter of 2018, among which
life insurance premiums accounted for RMB 445.3 million (US$64.8
million) and property and casualty insurance premiums were RMB37.3
million (US$5.4 million).
• CNpad Auto Insurance Mobile Application ("CNpad Auto
Insurance App") - Our proprietary mobile sales support
system:
- CNpad App had been downloaded and activated
496,930 times as of September 30, 2018, representing an increase of
49.0% from 333,595 times as of September 30, 2017;
- The number of active users of CNpad
App5 was 56,304 in the third quarter
of 2018, representing a decrease of 2.9% from 57,974 in the third
quarter of 2017;
- Insurance premiums generated
through CNpad App were
RMB 490.0 million (US$71.3 million) in the third quarter of 2018,
representing a decrease of 5.2% from RMB516.9 million for the
corresponding period of 2017.
• eHuzhu - Our online non-profit mutual aid
platform:
- The number of registered members was 3.8
million as of September 30, 2018, representing an increase of 72.7%
from 2.2 million as of September 30, 2017.
• Baoxian.com - Our online insurance
platform:
- The number of registered customer accounts was
2.0 million as of September 30, 2018, representing an increase of
66.7% from approximately 1.2 million as of September 30, 2017.
- The number of active customer accounts6 was
140,300 in the third quarter of 2018, representing an increase of
98.3% from 70,765 in the corresponding period of 2017;
- Insurance premiums generated on or through
Baoxian.com was RMB72.4 million (US$10.5 million) in the
third quarter of 2018, representing a decrease of 37.0% from
RMB114.9 million in the corresponding period of 2017.
Recent Development
• On September 3, 2018, Fanhua Fanlian
Investment Co., Ltd. (“Fanlian”), a wholly-owned subsidiary of
Fanhua, entered into a share transfer agreement with Puyi Inc., a
wealth management service provider, which beneficially owned 84.59%
equity interests in Fanhua Puyi Fund Sales Co., Ltd. (“Puyi Fund
Sales Company”). Pursuant to the agreement, Fanlian agreed to
transfer the 15.41% equity interests in Puyi Fund Sales Company
held by Fanlian to Puyi Inc. In exchange, on September 5, 2018,
Puyi Inc. issued 4,033,600 new ordinary shares to Fanhua. After the
transactions, Fanhua now holds 4.8% of the equity interests in Puyi
Inc. which beneficially owns 100% of Puyi Fund Sales Company.
• On November 7, 2018, CNfinance, a leading home
equity service provider in China, completed its initial public
offering of 6.5 million ADSs, at a price of US$7.5 per ADS for a
total offering price of US$48.75 million. CNfinance is now listed
on the New York Stock Exchange under the ticker symbol of CNF.
Immediately after the offering, Fanhua’s shareholdings in CNfinance
were diluted from 20.58% to 18.6%.
• As of September 30, 2018, Fanhua had 716,397
sales agents and 1,169 professional claims adjustors, compared with
413,946 sales agents and 1,264 claims adjustors as of September 30,
2017. As of September 30, 2018, Fanhua's distribution network
consisted of 626 sales outlets in 22 provinces and 128 services
outlets in 31 provinces, compared with 897 sales outlets in 21
provinces and 156 service outlets in 29 provinces as of September
30, 2017.
Business Outlook
Fanhua expects its operating income to be no
less than RMB80.0 million for the fourth quarter of 2018. This
forecast reflects Fanhua’s current view, which is subject to
change.
Conference Call
The Company will host a conference call to
discuss its third quarter 2018 financial results as per the
following details.
Time: 20:00 PM Eastern Daylight Time on November 20, 2018
or 9:00 AM Beijing/Hong Kong Time on
November 21, 2018
The toll free dial-in numbers:
United
States |
1-855-500-8701
|
United Kingdom
|
0800-015-9724 |
France
|
0800-918-648 |
Germany |
0800-184-4876 |
Australia
|
1-300-713-759 |
Canada
|
1-855-757-1565 |
Taiwan |
0080-665-1951 |
Hong Kong |
800-906-606 |
The toll dial-in
numbers: |
400-120-0654 |
China
(Mainland) |
+65-6713-5440 |
Singapore & Other
Areas |
|
Conference ID #:
3447409 |
|
Additionally, a live and archived web cast of this call will be
available at:
http://ir.fanhuaholdings.com/events-and-presentations
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.
Our online platforms include: (1) 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; (2) CNpad, a mobile sales
support application; (3) Baoxian.com, an online entry portal for
comparing and purchasing health, accident, travel and homeowner
insurance products and (4) eHuzhu (www.ehuzhu.com), a non-profit
online mutual aid platform in China.
As of September 30, 2018, our distribution and
service network is consisted of 754 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, those relating to its ability to attract and retain
productive agents, especially entrepreneurial 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.
FANHUA INC.
Unaudited Condensed Consolidated Balance
Sheets (In thousands)
|
As
of December 31, |
As of
September30, |
|
As of
September 30, |
|
|
2017 |
|
2018 |
|
2018 |
|
|
RMB |
|
RMB |
|
US$ |
|
ASSETS: |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash
and cash equivalents |
363,746 |
|
661,056 |
|
96,251 |
|
Restricted cash |
75,287 |
|
80,552 |
|
11,729 |
|
Short
term investments |
2,498,730 |
|
1,680,560 |
|
244,694 |
|
Accounts receivable, net |
515,194 |
|
551,444 |
|
80,292 |
|
Insurance premium receivables |
4,325 |
|
5,214 |
|
759 |
|
Other
receivables. |
631,381 |
|
128,096 |
|
18,651 |
|
Amount due from related party |
— |
|
50,547 |
|
7,360 |
|
Other
current assets |
43,864 |
|
55,982 |
|
8,151 |
|
Total current assets |
4,132,527 |
|
3,213,451 |
|
467,887 |
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Property, plant, and equipment, net |
26,075 |
|
34,849 |
|
5,074 |
|
Goodwill and intangible assets, net |
127,079 |
|
111,368 |
|
16,216 |
|
Deferred tax assets |
2,091 |
|
9,446 |
|
1,375 |
|
Investment in affiliates |
404,783 |
|
546,841 |
|
79,622 |
|
Other
non-current assets |
45,187 |
|
60,226 |
|
8,769 |
|
Total non-current assets |
605,215 |
|
762,730 |
|
111,056 |
|
Total assets |
4,737,742 |
|
3,976,181 |
|
578,943 |
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
203,024 |
|
312,212 |
|
45,459 |
|
Insurance premium payables |
9,553 |
|
29,480 |
|
4,292 |
|
Other
payables and accrued expenses |
241,894 |
|
238,152 |
|
34,676 |
|
Accrued payroll |
77,424 |
|
80,101 |
|
11,663 |
|
Income tax payable |
129,965 |
|
204,466 |
|
29,771 |
|
Dividend payable |
— |
|
4,791 |
|
698 |
|
Total current liabilities |
661,860 |
|
869,202 |
|
126,559 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Other
non-current liabilities* |
— |
|
125,024 |
|
18,204 |
|
Other
tax liabilities |
70,350 |
|
70,350 |
|
10,243 |
|
Deferred tax liabilities |
17,139 |
|
10,478 |
|
1,526 |
|
Total non-current
liabilities |
87,489 |
|
205,852 |
|
29,973 |
|
Total liabilities |
749,349 |
|
1,075,054 |
|
156,532 |
|
Total shareholders’ equity* |
3,877,051 |
|
2,792,989 |
|
406,666 |
|
Non-controlling interests |
111,342 |
|
108,138 |
|
15,745 |
|
Total equity |
3,988,393 |
|
2,901,127 |
|
422,411 |
|
Total liabilities and equity |
4,737,742 |
|
3,976,181 |
|
578,943 |
|
* The decrease in shareholders' equity was mainly attributable
to the purchase of 6.4 million ADSs from Master Trend Limited at a
consideration of RMB1, 250 million. The share purchase was executed
under the 521 development plan and these shares will be subject to
a five-year lock-up period.
FANHUA
INC.Unaudited Condensed
Consolidated Statements of
Income and Comprehensive
Income (In thousands, except for shares and per share
data)
|
For The Three Months Ended |
|
For The Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
Net
revenues: |
|
|
|
|
|
|
Agency |
989,244 |
|
704,052 |
|
102,512 |
|
3,188,040 |
|
2,369,570 |
|
345,016 |
|
Life
insurance Business |
730,476 |
|
654,513 |
|
95,299 |
|
1,934,125 |
|
2,135,788 |
|
310,977 |
|
P&C
insurance Business |
258,768 |
|
49,539 |
|
7,213 |
|
1,253,915 |
|
233,782 |
|
34,039 |
|
Claims adjusting |
72,684 |
|
79,896 |
|
11,633 |
|
209,957 |
|
229,757 |
|
33,453 |
|
Total net
revenues |
1,061,928 |
|
783,948 |
|
114,145 |
|
3,397,997 |
|
2,599,327 |
|
378,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses: |
|
|
|
|
|
|
Agency |
(733,103 |
) |
(437,264 |
) |
(63,667 |
) |
(2,466,128 |
) |
(1,612,137 |
) |
(234,731 |
) |
Life insurance Business |
(511,412 |
) |
(404,719 |
) |
(58,928 |
) |
(1,321,804 |
) |
(1,426,396 |
) |
(207,687 |
) |
P&C insurance Business |
(221,691 |
) |
(32,545 |
) |
(4,739 |
) |
(1,144,324 |
) |
(185,741 |
) |
(27,044 |
) |
Claims adjusting |
(43,547 |
) |
(44,118 |
) |
(6,424 |
) |
(136,883 |
) |
(138,319 |
) |
(20,140 |
) |
Total operating
costs |
(776,650 |
) |
(481,382 |
) |
(70,091 |
) |
(2,603,011 |
) |
(1,750,456 |
) |
(254,871 |
) |
Selling expenses |
(54,236 |
) |
(56,959 |
) |
(8,293 |
) |
(160,246 |
) |
(159,556 |
) |
(23,232 |
) |
General and
administrative expenses |
(147,287 |
) |
(121,034 |
) |
(17,623 |
) |
(423,747 |
) |
(346,964 |
) |
(50,519 |
) |
Total operating
costs and expenses |
(978,173 |
) |
(659,375 |
) |
(96,007 |
) |
(3,187,004 |
) |
(2,256,976 |
) |
(328,622 |
) |
Income
from operations |
83,755 |
|
124,573 |
|
18,138 |
|
210,993 |
|
342,351 |
|
49,847 |
|
Other income,
net: |
|
|
|
|
|
|
Investment income |
44,152 |
|
75,458 |
|
10,987 |
|
152,330 |
|
152,510 |
|
22,206 |
|
Interest
income |
10,983 |
|
13,502 |
|
1,966 |
|
13,490 |
|
33,386 |
|
4,861 |
|
Others,
net |
1,620 |
|
1,234 |
|
180 |
|
12,421 |
|
(74 |
) |
(11 |
) |
Income before income
taxes and income of affiliates |
140,510 |
|
214,767 |
|
31,271 |
|
389,234 |
|
528,173 |
|
76,903 |
|
Income tax expense |
(50,885 |
) |
(66,423 |
) |
(9,671 |
) |
(129,677 |
) |
(167,511 |
) |
(24,390 |
) |
Share of income of
affiliates |
24,059 |
|
48,275 |
|
7,029 |
|
53,752 |
|
138,421 |
|
20,154 |
|
Net income from continuing operations |
113,684 |
|
196,619 |
|
28,629 |
|
313,309 |
|
499,083 |
|
72,667 |
|
Net
income from discontinued operations, net of tax |
10 |
|
— |
|
— |
|
6,655 |
|
— |
|
— |
|
Net
income |
113,694 |
|
196,619 |
|
28,629 |
|
319,964 |
|
499,083 |
|
72,667 |
|
less: net income (loss)
attributable to noncontrolling interests |
1,426 |
|
1,371 |
|
200 |
|
(2,391 |
) |
1,775 |
|
258 |
|
Net income
attributable to the Company’s shareholders |
112,268 |
|
195,248 |
|
28,429 |
|
322,355 |
|
497,308 |
|
72,409 |
|
Net income per
share:Basic |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income from continuing operations |
0.09 |
|
0.15 |
|
0.02 |
|
0.26 |
|
0.38 |
|
0.06 |
|
Net income from discontinued
operation |
— |
|
— |
|
— |
|
0.01 |
|
— |
|
— |
|
Net
income |
0.09 |
|
0.15 |
|
0.02 |
|
0.27 |
|
0. 38 |
|
0.06 |
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income from continuing operations |
0.09 |
|
0.15 |
|
0.02 |
|
0.25 |
|
0. 38 |
|
0.06 |
|
Net
income from discontinued operation |
— |
|
— |
|
— |
|
0.01 |
|
— |
|
— |
|
Net
income |
0.09 |
|
0.15 |
|
0.02 |
|
0.26 |
|
0. 38 |
|
0.06 |
|
Net income per ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1.80 |
|
3.01 |
|
0.44 |
|
5.20 |
|
7.65 |
|
1.11 |
|
Net
income from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income from discontinued operation |
— |
|
— |
|
— |
|
0.11 |
|
— |
|
— |
|
Net
income |
1.80 |
|
3.01 |
|
0.44 |
|
5.31 |
|
7.65 |
|
1.11 |
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income from continuing operations |
1.77 |
|
3.00 |
|
0.44 |
|
5.04 |
|
7.64 |
|
1.11 |
|
Net
income from discontinued operation |
— |
|
— |
|
— |
|
0.11 |
|
— |
|
— |
|
Net
income |
1.77 |
|
3.00 |
|
0.44 |
|
5.15 |
|
7.64 |
|
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating net income per
share:Basic |
1,247,356,127 |
|
1,299,349,068 |
|
1,299,349,068 |
|
1,214,639,385 |
|
1,299,944,226 |
|
1,299,944,226 |
|
Diluted |
1,269,932,904 |
|
1,300,948,198 |
|
1,300,948,198 |
|
1,252,939,633 |
|
1,301,809,669 |
|
1,301,809,669 |
|
Net
income |
113,694 |
|
196,619 |
|
28,629 |
|
319,964 |
|
499,083 |
|
72,667 |
|
Other
comprehensive income (loss), net of tax: Foreign currency
translation adjustments |
(8,367 |
) |
5,160 |
|
751 |
|
(11,346 |
) |
2,906 |
|
423 |
|
Fair
value changes |
— |
|
— |
|
— |
|
(632 |
) |
— |
|
— |
|
Share of
other comprehensive gain (loss) of affiliates |
889 |
|
(4,666 |
) |
(679 |
) |
343 |
|
(6,392 |
) |
(931 |
) |
Comprehensive
income |
106,216 |
|
197,113 |
|
28,701 |
|
308,329 |
|
495,597 |
|
72,159 |
|
Less:
Comprehensive income (loss) attributable to the noncontrolling
interests |
1,426 |
|
1,371 |
|
200 |
|
(2,391 |
) |
1,775 |
|
258 |
|
Comprehensive income attributable to the
Company’s shareholders |
104,790 |
|
195,742 |
|
28,501 |
|
310,720 |
|
493,822 |
|
71,901 |
|
FANHUA
INC.Unaudited Condensed
Consolidated Statements of Cash Flow(In
thousands)
|
For The Three Months Ended |
|
For The Nine Months
Ended |
|
|
September
30, |
|
September
30, |
|
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net cash generated
from(used in) operating activities |
(25,677 |
) |
305,657 |
|
44,505 |
|
92,276 |
|
331,871 |
|
48,321 |
|
Net
cash generated from (used in) investing activities |
(189,812 |
) |
1,466,148 |
|
213,475 |
|
(67,392 |
) |
1,553,449 |
|
226,187 |
|
Net cash generated from
(used in) financing activities |
154 |
|
(1,414,663 |
) |
(205,979 |
) |
198,009 |
|
(1,578,072 |
) |
(229,772 |
) |
Net
increase (decrease)in
cash, cash equivalents
and restricted cash |
(215,335 |
) |
357,142 |
|
52,001 |
|
222,893 |
|
307,248 |
|
44,736 |
|
Cash, cash
equivalents and restricted cash
at beginning of period |
709,133 |
|
379,306 |
|
55,228 |
|
273,979 |
|
439,033 |
|
63,924 |
|
Effect of exchange rate
changes on cash and cash equivalents |
(3,903 |
) |
5,160 |
|
751 |
|
(6,977 |
) |
(4,673 |
) |
(680 |
) |
Cash, cash
equivalents and restricted cash
at end of period |
489,895 |
|
741,608 |
|
107,980 |
|
489,895 |
|
741,608 |
|
107,980 |
|
_________________________
- This announcement contains currency conversions of certain
Renminbi (RMB) amounts into U.S. dollars (US$) at specified rates
solely for the convenience of the reader. Unless otherwise noted,
all translations from RMB to U.S. dollars are made at a rate of
RMB6.868 to US$1.00, the effective noon buying rate as of September
28, 2018 in The City of New York for cable transfers of RMB as set
forth in the H.10 weekly statistical release of the Federal Reserve
Board.
- Annualized premiums equivalent is a measure used by Fanhua to
compare annual premiums received from life insurance policies with
differing tenures by normalizing annual premiums into the
equivalent annual premium of a policy with a tenure of 20
years.
- Due to the disposal of Fanhua Bocheng Insurance Brokerage Co.,
Ltd. (“Bocheng”) in November 2017, the Company is required to
present its financial results on a continuing and discontinued
basis. The company's results of operations related to discontinued
operations have been restated as discontinued operations on a
retrospective basis for all periods presented accordingly. Profits
and losses related to Bocheng are presented as discontinued
operations while profits and losses for the remaining business are
presented as continuing operations.
- Active users of Lan Zhanggui included users who sold at least
one life insurance policy and/or P&C insurance policy through
Lan Zhanggui (including both its mobile application or WeChat
public account) during the specific period and at least sold one
life insurance policy through CNpad Life Insurance App in the same
period of 2017.
- Active users of CNpad App included users who sold at least one
auto insurance policy during the specific period.
- Active customer accounts are defined as customer accounts that
made at least one purchase directly through www.baoxian.com, its
mobile application, or Wechat public account during the specified
period.
For more information, please contact:Oasis
QiuInvestor Relations ManagerTel: +86 (20) 8388-3191Email:
qiusr@fanhuaholdings.com
Source: Fanhua Inc.
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