Fanhua Announces Completion of its Expanded Share Repurchase Program and New Share Issuance under its 521 Development Plan
January 24 2019 - 7:30AM
Fanhua Inc. (Nasdaq: FANH) (the "Company" or "Fanhua"), a leading
independent financial services provider operating in China, today
announced the completion of its expanded share repurchase program
previously authorized by its board of directors (the “Board”) and
completion of the new share issuance under its 521 development
plan.
In August 2018, the Company was authorized by
the Board to repurchase up to 6.5 million American Depository
Shares (“ADS”) of the Company up to $29.00 per ADS before December
30, 2018. As of December 30, 2018, the Company has repurchased
1,423,774 ADS (one ADS representing 20 ordinary shares of the
Company) at an average price of US$25.5285 per ADS, for a total
amount of US$ 36.3 million under the program.
Pursuant to Board approval previously announced
in August 2018, on January 24, 2019, the Company resold the
1,423,774 ADSs which were held in treasury to participants in
Fanhua’s 521 development plans (the “Participants”), at $25.52 per
ADS, or the weighted average of the closing prices of the share
repurchases under the share repurchase program. In the meantime,
the Company was approved by the Board to newly issue and sell
101,524,520 ordinary shares (representing 5,076,226 ADSs) to the
Participants at the same price.
As of the date of the announcement, combined
with the 7.5 million ADS previously purchased by the Participants
at US$29.0 per ADS, a total of 14 million ADSs, representing 19.95%
of the Company’s expanded share capital, have been purchased by the
Participants under the 521 development plan, at the weighted
average price of US$27.38 per ADS. These shares are subject to a
five year lock-up period and the Participants must fulfill certain
performance goals in the next five years in order to enjoy the full
appreciation in the value of the ADSs.
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) 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, 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
Source: Fanhua Inc.
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