Fanhua Announces Third Quarter 2020 Conference Call and Provides Preliminary Third Quarter 2020 Financial Results
November 05 2020 - 5:00PM
Fanhua Inc. (“Fanhua” or “the Company”) (Nasdaq: FANH), a leading
independent financial services provider in China, today announced
that it will release its unaudited financial results for the third
quarter 2020 after the close of the U.S. financial markets on
November 24, 2020 Eastern Time.
Mr. Chunlin Wang, chairman & CEO and Mr.
Peng Ge, CFO will host a conference call to discuss the third
quarter 2020 financial results at:
Time: |
8:00 p.m. Eastern Standard Time on November 24, 2020 |
|
|
|
or 9:00 a.m.
Beijing/Hong Kong Time on November 25, 2020 |
Conference Call Preregistration:
http://apac.directeventreg.com/registration/event/3674096
Additionally, a live and archived webcast of the
conference call will be available at Fanhua’s investor relations
website: https://edge.media-server.com/mmc/p/2enqmuag
The Company also provided its preliminary
unaudited financial results for the third quarter of 2020. The
Company’s new life insurance business in annualized premiums
equivalent is estimated to be approximately RMB330 million;
revenues are estimated to be approximately RMB810 million, and
adjusted operating income excluding share-based compensation
expenses is estimated to be approximately RMB70 million for the
third quarter of 2020.
The Company had originally expected a strong
finish to the third quarter of 2020, following the post Covid-19
economic recovery in China. However, the industry was in a more
challenging situation than the Company had anticipated. In the past
two years, the industry has seen a gradual transformation in the
insurance distribution model, a trend that has been further
accelerated by the pandemic. In response, both insurance companies
and our competitors have been aggressively recruiting and retaining
agents. By contrast, due to the changing internal and external
environment of China’s post-pandemic insurance industry, Fanhua has
further refined its business strategy with an increased focus on
the quality of its agents by building a “a professional sales
force, digital capability and open platform”, shifting from its
previous expansion model that largely focused on increasing
headcount. With intensified competition amid industry downturn and
the Company’s strategy refinement, the Company’s agent recruitment
slowed in the third quarter of 2020 and as a result, the Company’s
premium growth during the quarter was negatively affected. The
Company anticipates over time the increased agent productivity will
be a core driver of increased profit growth.
Mr. Wang Chunlin, Chairman and CEO of Fanhua
said, “Although the strategy refinement may not provide immediate
sales boost, we believe it is the right strategy to drive
competitiveness and growth over the long term. With that in place,
management is confident that we will be back on track for rapid
growth in the second half of 2021.”
Fanhua estimates that its life insurance gross
written premiums will be approximately RMB2.3 billion during the
third quarter of 2020, increasing by 13% year-on-year. As it
expects its main business and operating cash flow to remain stable,
the Company will continue its 2020 quarterly dividend policy of
$0.25 for the third quarter and fourth quarter of 2020.
About Fanhua Inc.
Fanhua Inc. is a leading independent 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, including life and property and
casualty 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) Baowang (www.baoxian.com),
an online entry portal for comparing and purchasing health,
accident, travel and homeowner insurance products and (3) eHuzhu
(www.ehuzhu.com), a non-profit online mutual aid platform in
China.
As of June 30, 2020, our distribution and
service network are consisted of 775 sales outlets covering 21
provinces and 118 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, future development of COVID-19 outbreak 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.
CONTACT: Investor Relations
Tel: (8620) 83883191
Email: qiusr@fanhuaholdings.com
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