Fanhua Inc., (Nasdaq: FANH), (the “Company” or “Fanhua”), a leading
independent financial services provider in China, today announced
its unaudited financial results for the first quarter ended March
31, 20211.
Financial Highlights for the First Quarter
of 2021:
(In thousands, except per ADS) |
2020Q1(RMB) |
2021Q1(RMB) |
2021Q1(US$) |
Change % |
Total net revenues |
722,623 |
1,095,029 |
167,134 |
51.5 |
|
Operating income |
60,044 |
140,401 |
21,429 |
133.8 |
|
Net income attributable to the Company’s shareholders |
45,793 |
138,385 |
21,121 |
202.2 |
|
Basic and diluted net income per ADS2 |
0.85 |
2.58 |
0.39 |
203.5 |
|
Cash, cash equivalents and short- term investments (As of March,
31, 2020 and 2021) |
1,843,238 |
1,624,399 |
247,932 |
(11.9 |
) |
Commenting on the financial results of first
quarter of 2021, Mr. Chunlin Wang, chairman and chief executive
officer of Fanhua, stated, “We are glad to record strong growth
across various operating metrics. During the first quarter of 2021,
our total insurance gross written premiums (“GWP”) grew by 27.9%
year over year to RMB3.1 billion, of which first year premiums was
up 57.0% year-over-year to RMB892.7 million. Our net revenues was
up 51.5% year-over-year to RMB1.1 billion and our operating income
grew by 133.8% to RMB140.4 million.
“China’s life insurance market is undergoing
deep reform which brings about both challenges and opportunities.
With our ‘Professionalization, Digitalization and Open Platform’
strategy, we believe we are well positioned to capture these
opportunities. We are glad that we’ve made steady progress in
pushing forward the new strategy. Up to date, we have approved the
establishment of nine Yuntong (literally translated as Cloud
Phoenixtree)3 branches as part of our efforts to strengthen our
sales force and we expect to have two of the Yuntong branches in
operation by July. To digitalize our operation, we started to
promote our enterprise Wechat application among direct consumers on
a trial basis in certain regions, which will help facilitate our
agents to engage with their prospective customers more efficiently.
In addition, our digital marketing center has so far recruited 100
service representatives to facilitate online and telemarketing
transactions. Meanwhile, for open platform initiative, our Cloud
Service Division has established partnerships with approximately 16
channel partners and is in the process of facilitating system
connections and testing business processes.
“For the second quarter of 2021, amid persistent
headwinds and a difficult year-on-year comparison due to 2020 Q2
post-Covid recovery, life insurance industry in China overall is
expected to record a negative growth in new business. Against this
backdrop, we expect our total GWP facilitated to be approximately
RMB2.6 billion, representing a year-over-year growth of 6.7%. After
considering incremental expenditures required for implementing the
new strategy, we expect our operating income will be no less than
RMB50 million.
“For the second half of 2021, we will continue
to step up investment in executing on our new strategy while
ensuring the achievement of no less than RMB300 million operating
income for the full year of 2021.”
Financial Results for the First quarter of
2021
Total net revenues were
RMB1,095.0 million (US$167.1 million) for the first quarter of
2021, representing an increase of 51.5% from RMB722.6 million for
the corresponding period in 2020.
-
Net revenues for agency business were RMB1,000.1
million (US$152.6 million) for the first quarter of 2021,
representing an increase of 53.8% from RMB650.2 million for the
corresponding period in 2020.
-
Net revenues for the life insurance business were
RMB969.2 million (US$147.9 million) for the first quarter of 2021,
representing an increase of 55.0% from RMB625.2 million for the
corresponding period in 2020. The increase was mainly due to a
year-over-year growth of 64.7% in first year premiums of our life
insurance business to RMB822.5 million, primarily reflecting the
strong sales of life insurance business during the jumpstart sales
season, and the year-over-year growth of 19.1% to RMB2,242.3
million in renewal premiums.During the current period, estimated
variable renewal commissions related to long-term life insurance
products of RMB81.5 million was recognized in our financial
statements. The estimated renewal commissions are contingent on
future renewals of initial policies or achievement of certain
performance targets. Given the material uncertainty around the
subsequent renewal of the insurance policies, the estimated renewal
commissions expected to be collected are recognized as revenue only
to the extent that it is probable that a significant reversal in
the amount of cumulative revenue recognized will not occur when the
uncertainty is subsequently resolved. With the passing of time and
accumulation of historical experiences and data, the judgment and
assumptions will be continuously re-evaluated and adjusted as
needed when more information becomes available. Actual renewal
commissions in the future may differ significantly from those
previously estimated.Revenues generated from our life insurance
business, which includes health insurance, accounted for 88.5% of
our total net revenues in the first quarter of 2021.
-
Net revenues for the P&C insurance business
were RMB30.9 million (US$4.7 million) for the first quarter of
2021, representing an increase of 23.6% from RMB25.0 million for
the corresponding period in 2020. Net revenues for the P&C
insurance business are mainly derived from commissions for accident
insurance, short-term medical insurance, travel insurance and
homeowner insurance products facilitated on Baowang
(www.baoxian.com). The increase was primarily due to growth of
short-term medical insurance sales through Baowang. Revenues
generated from the P&C insurance business accounted for 2.8% of
our total net revenues in the first quarter of 2021.
-
Net revenues for the claims adjusting business
were RMB94.9 million (US$14.5 million) for the first quarter of
2021, representing an increase of 31.1% from RMB72.4 million for
the corresponding period in 2020. The increase was mainly due to
the growth in our medical insurance-related claims adjusting
business. Revenues generated from the claims adjusting business
accounted for 8.7% of our total net revenues in the first quarter
of 2021.
Total
operating costs and expenses were RMB954.6 million
(US$145.7 million) for the first quarter of 2021, representing an
increase of 44.1% from RMB662.6 million for the corresponding
period in 2020. |
|
Commission costs were RMB737.6 million (US$112.6
million) for the first quarter of 2021, representing an increase of
50.3% from RMB490.9 million for the corresponding period in
2020. |
-
Commission cost for agency business were RMB674.0
million (US$102.9 million) for the first quarter of 2021,
representing an increase of 51.8% from RMB444.1 million for the
corresponding period in 2020.
-
Costs of the life insurance business were RMB652.7
million (US$99.6 million) for the first quarter of 2021,
representing an increase of 52.7% from RMB427.4 million for the
corresponding period in 2020. The increase was in-line with the
growth in net revenues generated from our life insurance business.
Costs incurred by the life insurance business accounted for 88.5%
of our total commission costs in the first quarter of 2021.
-
Costs of the P&C insurance business were
RMB21.3 million (US$3.3 million) for the first quarter of 2021,
representing an increase of 27.5% from RMB16.7 million for the
corresponding period in 2020. The increase was in line with the
growth in net revenues generated from P&C insurance business.
Costs incurred by the P&C insurance business accounted for 2.9%
of our total commission costs in the first quarter of 2021.
-
Costs of claims adjusting business were RMB63.6
million (US$9.7 million) for the first quarter of 2021,
representing an increase of 35.9% from RMB46.8 million for the
corresponding period in 2020. Costs incurred by the claims
adjusting business accounted for 8.6% of our total commission costs
in the first quarter of 2021. The increase was due to the growth in
our medical insurance-related claims adjusting business.
-
Selling expenses were RMB78.4 million (US$12.0
million) for the first quarter of 2021, representing an increase of
27.9% from RMB61.3 million for the corresponding period in 2020.
The increase was mainly contributed by i) sales outlet expansion in
our claims adjusting and life insurance business; and ii) increased
marketing expenditures related to the jumpstart sales
campaigns.
-
General and administrative expenses were RMB138.6
million (US$21.1 million) for the first quarter of 2021,
representing an increase of 25.5% from RMB110.4 million for the
corresponding period in 2020. The increase was mainly contributed
one-off performance bonus for the jumpstart sales campaigns in the
first quarter and the expenditure related to the Company’s new
strategies.
As a result of the preceding factors, we had an
operating income of RMB140.4 million (US$21.4
million) for the first quarter of 2021, representing an increase of
133.8% from RMB60.0 million for the corresponding period in
2020.
Operating margin was 12.8% for
the first quarter of 2021, compared to 8.3% for the corresponding
period in 2020.
Investment income was RMB10.2
million (US$1.6 million) for the first quarter of 2021,
representing an increase of 14.6% from RMB8.9 million for the
corresponding period in 2020. The investment income in the first
quarter of 2021 consisted of yields from short-term investments in
financial products. Our investment income fluctuates from quarter
to quarter as investment income is recognized when investments
matured or disposed.
Interest income was RMB0.5
million (US$0.1 million) for the first quarter of 2021,
representing a decrease of 82.8% from RMB2.9 million for the
corresponding period in 2020.
Income tax expense was RMB32.7
million (US$5.0 million) for the first quarter of 2021,
representing an increase of 74.9% from RMB18.7 million for the
corresponding period in 2020 due to the increase in operating
income. The effective tax rate for the first quarter of 2021 was
21.4% compared with 25.3% for the corresponding period in 2020.
Share of income of affiliates
was RMB15.4 million (US$2.3 million) for the first quarter of 2021,
compared with share of loss of affiliates of RMB12.3 million for
the corresponding period in 2020, mainly attributable to the
increase in income from CNFinance Holdings Limited.
Net income was RMB135.3 million
(US$20.7 million) for the first quarter of 2021, representing an
increase of 216.1% from RMB42.8 million for the corresponding
period in 2020.
Net income attributable to the Company’s
shareholders was RMB138.4 million (US$21.1 million) for
the first quarter of 2021, representing an increase of 202.2% from
RMB45.8 million for the corresponding period in 2020. The increase
was mainly due to the increases in operating income.
Net margin was 12.6% for the
first quarter of 2021 as compared to 6.3% for the corresponding
period in 2020.
Basic and diluted net income per
ADS were RMB2.58 (US$0.39) and RMB2.58 (US$0.39) for the
first quarter of 2021, respectively, representing increases of
203.5% and 203.5% from RMB0.85 and RMB0.85 for the corresponding
period in 2020.
As of March 31, 2021, the Company had RMB1,624.4
million (US$247.9 million) in cash, cash
equivalents and short term investments.
Key Operational Metrics for Fanhua’s
Online Initiatives in the First Quarter of 2021:
-
Lan Zhanggui - Our one-stop insurance service
platform:
- The
number of active users of Lan Zhanggui 4 was 46,723 in the
first quarter of 2021, as compared to 34,278 in the corresponding
period of 2020. The number of active users of Lan Zhanggui who have
sold at least one life insurance policy was 30,585 in the first
quarter of 2021, as compared to 30,489 in the corresponding period
of 2020;
-
Insurance premiums generated through Lan Zhanggui
were RMB998.2 million (US$152.3 million) in the first quarter of
2021, consisting of life insurance premiums of RMB810.5 million
(US$123.7 million), auto insurance premiums of RMB119.5 million
(US$18.2 million) and accidental & health (“A&H”) insurance
premiums of RMB68.2 million (US$10.4 million). Insurance premiums
generated through Lan Zhanggui were RMB451.7 million in the first
quarter of 2020, consisting of life insurance premiums of RMB438.4
million, auto insurance premiums of RMB13.4 million and A&H
insurance premiums of RMB650,000, respectively.
-
eHuzhu - Our online mutual aid platform:
- The number of paying
members was 2.8 million as of March 31, 2021, as compared
to 3.4 million as of March 31, 2020.
-
Baowang (www.baoxian.com)
- Our online insurance platform:
- The
number of registered customer accounts was 3.1 million as
of March 31, 2021, representing an increase of 9.1% from
approximately 2.8 million as of March 31, 2020;
- The
number of active customer accounts5was
59,296 in the first quarter of 2021, representing a decrease of
58.2% from 142,004 in the corresponding period of 2020. The
decrease mainly reflected the high base in the first quarter of
2020 due to the provision of complimentary COVID-19 health
insurance products during the COVID-19 pandemic.
-
Insurance premiums generated on Baoxian.com was
RMB82.7 million (US$9.8 million) in the first quarter of 2021,
representing an increase of 19.3% from RMB69.3 million in the
corresponding period of 2020.
Recent Developments
- As
of March 31, 2021, Fanhua had 350,565 sales agents and 1,829
professional claims adjusters, compared with 650,065 sales agents
and 1,668 claims adjusters as of March 31, 2020. The decrease in
the number of sales agents was mainly due to our efforts to
streamline sales force and focus more on higher quality sales
agents. The number of performing agents6 was
79,194, and the number of performing agents for selling life
insurance products was approximately 33,633 in the first quarter of
2021 as compared to 95,932 performing agents and 33,152 performing
agents for selling life insurance products in the first quarter of
2020. As of March 31, 2021, Fanhua’s distribution network consisted
of 771 sales outlets in 23 provinces and 113 services outlets in 31
provinces, compared with 763 sales outlets in 21 provinces and 159
service outlets in 31 provinces as of March 31, 2020.
Business Outlook
Fanhua expects its operating income to be no
less than RMB50.0 million for the second quarter of 2021. This
forecast is based on the current market conditions and reflects
Fanhua’s preliminary estimate, which is subject to change caused by
various uncertainties.
Conference Call
The Company will host a conference call to
discuss its first quarter 2021 financial results as per the
following details.
Time: 9:00
PM Eastern Daylight Time on May 27, 2021 |
or 9:00 AM Beijing/Hong Kong Time on May 28, 2021 |
Please pre-register online in advance to join the conference
call by navigating to the link provided below and dial-in 10
minutes before the call is scheduled to begin. Conference call
details will be provided upon registration.
Conference Call Preregistration:
http://apac.directeventreg.com/registration/event/2097592
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/adb5oqrv
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 short-term
health, accident, travel and homeowner insurance products and (3)
eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform
in China.
As of March 31, 2021, our distribution and
service network is consisted of 771 sales outlets covering 23
provinces and 113 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.
|
FANHUA INC. Unaudited Condensed
Consolidated Balance Sheets (In
thousands) |
|
|
|
|
|
|
|
As of December 31, |
|
As of March 31, |
|
As of March 31, |
|
2020 |
|
2021 |
|
2021 |
|
RMB |
|
RMB |
|
US$ |
ASSETS: |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
245,428 |
|
765,657 |
|
116,862 |
Restricted cash |
83,981 |
|
87,970 |
|
13,427 |
Short term investments |
1,307,865 |
|
858,742 |
|
131,070 |
Accounts receivable, net |
583,116 |
|
583,276 |
|
89,025 |
Insurance premium receivables |
— |
|
559 |
|
85 |
Other receivables |
50,242 |
|
67,177 |
|
10,253 |
Other current assets |
41,148 |
|
34,400 |
|
5,250 |
Total current assets |
2,311,780 |
|
2,397,781 |
|
365,972 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
Restricted bank deposit – non-current |
20,689 |
|
15,711 |
|
2,398 |
Accounts receivable, net – non-current |
— |
|
58,421 |
|
8,917 |
Property, plant, and equipment, net |
36,778 |
|
39,788 |
|
6,073 |
Goodwill and intangible assets, net |
109,913 |
|
109,894 |
|
16,773 |
Deferred tax assets |
10,032 |
|
13,697 |
|
2,091 |
Investment in affiliates |
357,661 |
|
373,564 |
|
57,017 |
Other non-current assets |
33,743 |
|
32,847 |
|
5,014 |
Right of use assets |
200,403 |
|
191,957 |
|
29,298 |
Total non-current assets |
769,219 |
|
835,879 |
|
127,581 |
Total assets |
3,080,999 |
|
3,233,660 |
|
493,553 |
Current liabilities: |
|
|
|
|
|
Accounts payable |
377,386 |
|
356,228 |
|
54,371 |
Insurance premium
payables |
25,421 |
|
27,510 |
|
4,199 |
Other payables and accrued
expenses |
188,448 |
|
193,213 |
|
29,490 |
Accrued payroll |
105,739 |
|
102,974 |
|
15,717 |
Income tax payable |
145,983 |
|
145,944 |
|
22,275 |
Dividend payable |
— |
|
87,951 |
|
13,424 |
Current operating lease
liability |
86,233 |
|
83,522 |
|
12,748 |
Total current
liabilities |
929,210 |
|
997,342 |
|
152,224 |
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
Accounts payable -
non-current |
— |
|
30,312 |
|
4,627 |
Other tax liabilities |
67,219 |
|
67,219 |
|
10,260 |
Deferred tax liabilities |
26,380 |
|
48,425 |
|
7,391 |
Non-current operating lease
liability |
103,526 |
|
101,166 |
|
15,441 |
Total non-current
liabilities |
197,125 |
|
247,122 |
|
37,719 |
Total
liabilities |
1,126,335 |
|
1,244,464 |
|
189,943 |
|
|
|
|
|
|
Ordinary shares |
8,088 |
|
8,088 |
|
1,234 |
Statutory reserves |
553,911 |
|
553,911 |
|
84,543 |
Retained earnings |
1,306,554 |
|
1,356,990 |
|
207,117 |
Accumulated other
comprehensive loss |
(34,994) |
|
(47,810) |
|
(7,297) |
Total shareholders’
equity |
1,833,559 |
|
1,871,179 |
|
285,597 |
Non-controlling interests |
121,105 |
|
118,017 |
|
18,013 |
Total
equity |
1,954,664 |
|
1,989,196 |
|
303,610 |
Total liabilities and
equity |
3,080,999 |
|
3,233,660 |
|
493,553 |
|
|
|
|
|
|
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 |
|
|
|
March 31, |
|
2020 |
|
2021 |
|
2021 |
|
RMB |
|
RMB |
|
US$ |
Net revenues: |
|
|
|
|
|
|
|
|
Agency |
650,211 |
|
|
1,000,104 |
|
|
152,646 |
|
Life insurance business |
625,205 |
|
|
969,234 |
|
|
147,934 |
|
P&C insurance business |
25,006 |
|
|
30,870 |
|
|
4,712 |
|
Claims adjusting |
72,412 |
|
|
94,925 |
|
|
14,488 |
|
Total net revenues |
722,623 |
|
|
1,095,029 |
|
|
167,134 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Agency |
(444,097 |
) |
|
(674,018 |
) |
|
(102,876 |
) |
Life insurance business |
(427,419 |
) |
|
(652,682 |
) |
|
(99,619 |
) |
P&C insurance business |
(16,678 |
) |
|
(21,336 |
) |
|
(3,257 |
) |
Claims adjusting |
(46,816 |
) |
|
(63,639 |
) |
|
(9,713 |
) |
Total operating costs |
(490,913 |
) |
|
(737,657 |
) |
|
(112,589 |
) |
Selling expenses |
(61,255 |
) |
|
(78,403 |
) |
|
(11,967 |
) |
General and administrative expenses |
(110,411 |
) |
|
(138,568 |
) |
|
(21,149 |
) |
Total operating costs and expenses |
(662,579 |
) |
|
(954,628 |
) |
|
(145,705 |
) |
Income from operations |
60,044 |
|
|
140,401 |
|
|
21,429 |
|
Other income, net: |
|
|
|
|
|
|
|
|
Investment income |
8,860 |
|
|
10,233 |
|
|
1,562 |
|
Interest income |
2,895 |
|
|
526 |
|
|
80 |
|
Others, net |
2,014 |
|
|
1,477 |
|
|
225 |
|
Income from operations before income taxes and
share |
|
|
|
|
|
|
|
|
income of affiliates |
73,813 |
|
|
152,637 |
|
|
23,296 |
|
Income tax expense |
(18,657 |
) |
|
(32,701 |
) |
|
(4,991 |
) |
Share of (loss) income of affiliates, net |
(12,339 |
) |
|
15,362 |
|
|
2,345 |
|
Net income |
42,817 |
|
|
135,298 |
|
|
20,650 |
|
Less: net loss attributable to noncontrolling interests |
(2,976 |
) |
|
(3,087 |
) |
|
(471 |
) |
Net income attributable to the
Company’s |
|
|
|
|
|
|
|
|
shareholders |
45,793 |
|
|
138,385 |
|
|
21,121 |
|
|
|
|
|
|
|
|
|
|
FANHUA INC.Unaudited Condensed
Consolidated Statements of Income and Comprehensive
Income-(Continued)(In thousands,
except for shares and per share
data) |
|
|
|
For The Three Months Ended |
|
March 31, |
|
2020 |
|
2021 |
|
2021 |
|
RMB |
|
RMB |
|
US$ |
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
0.04 |
|
|
0.13 |
|
|
0.02 |
|
Diluted |
0.04 |
|
|
0.13 |
|
|
0.02 |
|
Net income per ADS: |
|
|
|
|
|
|
|
|
Basic |
0.85 |
|
|
2.58 |
|
|
0.39 |
|
Diluted |
0.85 |
|
|
2.58 |
|
|
0.39 |
|
Shares used in calculating net income per
share: |
|
|
|
|
|
|
|
|
Basic |
1,073,891,784 |
|
|
1,073,891,784 |
|
|
1,073,891,784 |
|
Diluted |
1,074,291,427 |
|
|
1,074,291,239 |
|
|
1,074,291,239 |
|
|
|
|
|
|
|
|
|
|
Net
income |
42,817 |
|
|
135,298 |
|
|
20,650 |
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
3,720 |
|
|
(6,378 |
) |
|
(974 |
) |
Share of other comprehensive gain of affiliates |
850 |
|
|
542 |
|
|
83 |
|
Unrealized net gains (loss) on available-for-sale |
|
|
|
|
|
|
|
|
investments |
2,561 |
|
|
(6,980 |
) |
|
(1,065 |
) |
Comprehensive
income |
49,948 |
|
|
122,482 |
|
|
18,694 |
|
Less: Comprehensive loss attributable to the non- |
|
|
|
|
|
|
|
|
controlling interests |
(2,976 |
) |
|
(3,087 |
) |
|
(471 |
) |
Comprehensive income
attributable to the |
|
|
|
|
|
|
|
|
Company’s shareholders |
52,924 |
|
|
125,569 |
|
|
19,165 |
|
|
|
|
|
|
|
|
|
|
FANHUA INC.Unaudited Condensed
Consolidated Statements of Cash
Flow(In thousands, except for
shares and per share data) |
|
|
|
For The Three Months Ended |
|
March 31, |
|
2020 |
|
2021 |
|
2021 |
|
RMB |
|
RMB |
|
US$ |
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net
income |
42,817 |
|
|
135,298 |
|
|
20,650 |
|
Adjustments to
reconcile net income to net cash |
|
|
|
|
|
|
|
|
generated from operating activities: |
|
|
|
|
|
|
|
|
Investment income |
(5,102 |
) |
|
(92 |
) |
|
(14 |
) |
Share
of loss (income) of affiliates |
12,339 |
|
|
(15,362 |
) |
|
(2,345 |
) |
Other
non-cash adjustments |
33,064 |
|
|
1,257 |
|
|
192 |
|
Changes in operating assets and liabilities |
51,444 |
|
|
(40,650 |
) |
|
(6,203 |
) |
Net cash generated
from operating activities |
134,562 |
|
|
80,451 |
|
|
12,280 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchase of short term investments |
(2,780,732 |
) |
|
(2,767,430 |
) |
|
(422,392 |
) |
Proceeds from disposal of short term investments |
3,060,832 |
|
|
3,220,073 |
|
|
491,479 |
|
Cash
received from disposal of nominee shareholding |
— |
|
|
10,200 |
|
|
1,557 |
|
Cash
paid for loan to a third party |
(60,000 |
) |
|
— |
|
|
— |
|
Others |
(2,189 |
) |
|
(7,326 |
) |
|
(1,118 |
) |
Net cash generated from investing activities |
217,911 |
|
|
455,517 |
|
|
69,526 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Repayment of borrowing related to nominee |
|
|
|
|
|
|
|
|
shareholding |
— |
|
|
(10,200 |
) |
|
(1,557 |
) |
Net cash used in financing
activities |
— |
|
|
(10,200 |
) |
|
(1,557 |
) |
Net increase in cash
and cash equivalents, and |
|
|
|
|
|
|
|
|
restricted
cash |
352,473 |
|
|
525,768 |
|
|
80,249 |
|
Cash and cash
equivalents and restricted cash at |
|
|
|
|
|
|
|
|
beginning of period |
265,605 |
|
|
350,098 |
|
|
53,435 |
|
Effect of exchange rate
changes on cash and cash |
|
|
|
|
|
|
|
|
equivalents |
8,282 |
|
|
(6,528 |
) |
|
(997 |
) |
Cash and cash
equivalents and restricted cash at end |
|
|
|
|
|
|
|
|
of period |
626,360 |
|
|
869,338 |
|
|
132,687 |
|
|
|
|
|
|
|
|
|
|
Source: Fanhua Inc.
_________________________________1 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
RMB6.5518 to US$1.00, the effective noon buying rate as of March
31, 2021 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.
2 "ADS” refers to our American depositary
shares, each of which represents 20 ordinary shares;
3 Yuntong, or Cloud Phoenixtree is a
high-end brand designated for our branches for elite and
professional sales force in major cities
4 Active users of Lan Zhanggui included users
who sold at least one insurance policy through Lan Zhanggui
(through either its mobile application or WeChat public account)
during the specific period.
5 Active customer accounts are defined as
customer accounts that made at least one purchase directly
throughwww.baoxian.com, its mobile application, or WeChat public
account during the specified period.
6 Performing agents are defined as agents
who have sold at least one insurance policy during the specified
period.
For more information, please contact:
Investor Relations
Tel: +86 (20) 8388-3191
Email: qiusr@fanhuaholdings.com
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