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, 20211.
Financial Highlights for the Third
Quarter of 2021:
|
(In thousands, except per ADS) |
2020Q3(RMB) |
2021Q3(RMB) |
2021Q3(US$) |
Change % |
|
Total net revenues |
812,003 |
683,537 |
106,083 |
(15.8 |
) |
|
Operating income |
73,326 |
28,163 |
4,371 |
(61.6 |
) |
|
Net income attributable to the Company’s shareholders |
75,322 |
34,250 |
5,316 |
(54.5 |
) |
|
Diluted net income per ADS |
1.40 |
0.64 |
0.10 |
(54.3 |
) |
|
Cash, cash equivalents and short- term investments (As of September
30, 2020 and 2021) |
1,700,472 |
1,397,727 |
216,923 |
(17.8 |
) |
Commenting on the financial results of third
quarter of 2021, Mr. Chunlin Wang, chairman and chief executive
officer of Fanhua, stated, “China's life insurance industry
continues to be under pressure in 2021, as consumer confidence has
not yet fully recovered from concerns over macroeconomic
uncertainties, especially for products such as life insurance that
are not considered to be imminently-needed. Total gross written
premiums (“GWP”) in the life insurance industry fell by 1.9%
year-over-year in the third quarter of 2021.
“Fanhua's overall performance in the third
quarter of 2021 was in line with our expectations: total GWP hit
RMB2.7 billion, representing a year-over-year increase of 8.9%,
outperforming the industry. New policy sales reached RMB567.0
million, growing by 11.2% quarter-over-quarter. Operating income
achieved RMB28.2 million, surpassing previous guidance.
“We are happy that we made good progress in
executing Fanhua’s ‘Professionalization, Digitalization and Open
Platform’ strategy in the third quarter of 2021, among which, we
completed the target of building 10,000 digital entrepreneurial
teams well ahead of schedule. We are currently focused on operating
WeCom-based chat groups of these digital entrepreneurial teams to
drive conversion.
“Meanwhile, Fanhua is actively advancing product
customization and has made remarkable achievements. Since the
beginning of this year, Fanhua, together with insurers and
reinsurers, has co-launched 9 customized products, ranging from
whole life, annuity, critical illness and term life insurance to
million-yuan medical insurance. In the third quarter of 2021,
customized products contributed over 30% to our total new policy
sales.
“Looking forward to the fourth quarter of 2021,
we see both challenges and opportunities. The Notice on Further
Regulating the Internet Life Insurance Business of Insurance
Institutions (referred to as the ‘New Regulation’) issued by China
Banking and Insurance Regulatory Commission on October 22, 2021 has
become a trending topic in the industry. The rationale behind the
New Regulation is to refocus on offline insurance distribution,
particularly for longer term high-value products. Insurers and
brokers with extensive offline sales network coverage will
significantly benefit from the New Regulation and usher in broader
development opportunities over the long run.
“We believe that our Professionalization,
Digitalization and Open Platform strategy and our positioning of
catering to the needs of 400 million middle-class families for
family asset-allocation services well align with market trends and
we are on the right track to fully capitalizing on the market
opportunities.
“In the fourth quarter of 2021, Fanhua remains
focused on the execution of our growth strategy, and get well
prepared for the Jumpstart Sales Campaign 2022 to achieve our full
year target for 2021 while winning a good start for 2022. Operating
income is expected to reach approximately RMB80 million for the
fourth quarter of 2021.”
Financial Results for the Third Quarter of
2021
Total net revenues were
RMB683.5 million (US$106.1 million) for the third quarter of 2021,
representing a decrease of 15.8% from RMB812.0 million for the
corresponding period in 2020.
-
Net revenues for agency business were RMB562.1
million (US$87.2 million) for the third quarter of 2021,
representing a decrease of 18.7% from RMB691.6 million for the
corresponding period in 2020. In the third quarter of 2021, total
GWP increased by 8.9% year-over-year to RMB2.7 billion, of which
first year premiums decreased by 14.2% year-over-year and increased
by 11.2% quarter-over-quarter to RMB567.0 million while renewal
premiums grew by 17.2% year-over-year to RMB2,140.9 million.
-
Net revenues for the life insurance business were
RMB525.2 million (US$81.5 million) for the third quarter of 2021,
representing a decrease of 19.5% from RMB652.4 million for the
corresponding period in 2020. The decrease was mainly due to the
continued adverse impact on demand for critical illness insurance
after the strong sales prior to the transition to the new critical
illness definition framework in the first quarter of 2021. In the
third quarter of 2021, total life insurance GWP increased by 9.0%
year-over-year to RMB2.6 billion, of which first year premiums
decreased by 16.7% year-over-year to RMB485.3 million and renewal
premiums increased by 17.2% year-over-year to RMB2,140.9
million. During the current period, estimated variable
renewal commissions related to long-term life insurance products of
RMB50.3 million (US$7.8 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.Revenues generated from our life insurance
business accounted for 76.8% of our total net revenues in the third
quarter of 2021.
-
Net revenues for the P&C insurance business
were RMB36.9 million (US$5.7 million) for the third quarter of
2021, representing a decrease of 5.9% from RMB39.2 million for the
corresponding period in 2020. Net revenues for the P&C
insurance business are mainly derived from commissions for short
term products, including accident insurance, medical insurance,
travel insurance and homeowner insurance products facilitated on
Baowang (www.baoxian.com). The decrease was primarily due to a
slight decrease in average commission rate due to changes in
product mix. Revenues generated from the P&C insurance business
accounted for 5.4% of our total net revenues in the third quarter
of 2021.
-
Net revenues for the claims adjusting business
were RMB121.4 million (US$18.8 million) for the third quarter of
2021, representing an increase of 0.8% from RMB120.4 million for
the corresponding period in 2020. Revenues generated from the
claims adjusting business accounted for 17.8% of our total net
revenues in the third quarter of 2021.
Total operating costs and
expenses were RMB655.4 million (US$101.7 million) for the
third quarter of 2021, representing a decrease of 11.3% from
RMB738.7 million for the corresponding period in 2020.
-
Commission costs were RMB440.9 million (US$68.4
million) for the third quarter of 2021, representing a decrease of
18.6% from RMB541.4 million for the corresponding period in
2020.
-
Commission cost for agency business were RMB367.5
million (US$57.0 million) for the third quarter of 2021,
representing a decrease of 22.2% from RMB472.5 million for the
corresponding period in 2020.
-
Costs of the life insurance business were RMB341.6
million (US$53.0 million) for the third quarter of 2021,
representing a decrease of 23.7% from RMB447.6 million for the
corresponding period in 2020. The decrease was in line with the
decline in net revenues generated from our life insurance business.
Costs incurred by the life insurance business accounted for 77.5%
of our total commission costs in the third quarter of 2021.
-
Costs of the P&C insurance business were
RMB25.9 million (US$4.0 million) for the third quarter of 2021,
representing an increase of 4.0% from RMB24.9 million for the
corresponding period in 2020. The costs of the P&C insurance
business mainly represent commission costs we incurred for
operating Baowang (www.baoxian.com). The increase in the cost of
P&C insurance business was mainly due to a slight increase in
rates of commission costs paid to agents. Costs incurred by the
P&C insurance business accounted for 5.9% of our total
commission costs in the third quarter of 2021.
- Costs
of claims adjusting business were RMB73.4 million (US$11.4
million) for the third quarter of 2021, representing an increase of
6.5% from RMB68.9 million for the corresponding period in 2020.
Costs incurred by the claims adjusting business accounted for 16.6%
of our total commission costs in the third quarter of 2021.
-
Selling expenses were RMB71.6 million (US$11.1
million) for the third quarter of 2021, representing a decrease of
8.8% from RMB78.5 million for the corresponding period in 2020. The
decrease was due to decreased sales events, offset by increased
contributions to employees' defined contribution plans which had a
lower base in the same period of last year as the government waived
the contribution in 2020 in view of the impact of COVID-19.
-
General and administrative expenses were RMB142.9
million (US$22.2 million) for the third quarter of 2021,
representing an increase of 20.2% from RMB118.9 million for the
corresponding period in 2020. The increase was mainly due to
increased expenditures for execution of the Professionalization,
Digitalization and Open Platform strategy and increased
contributions to employees' defined contribution plans which had a
lower base in the same period of last year as the government waived
the contribution in 2020 in view of the impact of COVID-19.
As a result of the preceding factors, we
recorded an operating income of RMB28.2 million (US$4.4 million)
for the third quarter of 2021, representing a decrease of 61.6%
from RMB73.3 million for the corresponding period in 2020.
Operating margin was 4.1% for
the third quarter of 2021, compared to 9.0% for the corresponding
period in 2020.
Investment income was RMB8.8
million (US$1.4 million) for the third quarter of 2021,
representing a decrease of 31.8% from RMB12.9 million for the
corresponding period in 2020. The investment income in the third
quarter of 2021 consisted of yields from short-term investments in
financial products. The decrease in investment income was mainly
due to a decrease in cash available for investment in short-term
investment products.
Income tax expense was RMB9.3
million (US$1.4 million) for the third quarter of 2021,
representing a decrease of 56.3% from RMB21.3 million for the
corresponding period in 2020 due to the decrease in taxable income.
The effective tax rate for the third quarter of 2021 was 21.4%
compared with 22.9% for the corresponding period in
2020.
Share of income of affiliates
was RMB2.5 million (US$0.4 million) for the third quarter of 2021,
representing a decrease of 73.1% from RMB9.3 million for the
corresponding period in 2020, mainly attributable to the decrease
in income from CNFinance Holdings Limited.
Net income was RMB36.8 million
(US$5.7 million) for the third quarter of 2021, representing a
decrease of 54.5% from RMB80.8 million for the corresponding period
in 2020.
Net income attributable to the Company’s
shareholders was RMB34.3 million (US$5.3 million) for the
third quarter of 2021, representing a decrease of 54.5% from
RMB75.3 million for the corresponding period in 2020.
Net margin was 5.0% for the
third quarter of 2021 as compared to 9.3% for the corresponding
period in 2020.
Basic and diluted net income per
ADS were RMB0.64 (US$0.10) and RMB0.64 (US$0.10) for the
third quarter of 2021, respectively, representing decreases of
54.3% and 54.3% from RMB1.40 and RMB1.40 for the corresponding
period in 2020.
As of September 30, 2021, the Company had
RMB1,397.7 million (US$216.9 million) in cash,
cash equivalents and short-term
investments.
Key Operational Metrics for Fanhua’s
Online Initiatives in the Third Quarter of 2021:
-
Baowang (www.baoxian.com)
- Our direct-to-consumer (“DTC”) online insurance platform for
Accident & Short Term Health insurance(“A&H”), travel and
homeowner insurance:
- The
number of registered customer accounts was 3.5 million as
of September 30, 2021, representing an increase of 16.7% from
approximately 3.0 million as of September 30, 2020;
- The
number of active customer accounts2 was
116,991 in the third quarter of 2021, representing an increase of
25.3% from 93,374 in the corresponding period of 2020
-
Insurance premiums generated on Baoxian.com was
RMB88.8 million (US$13.8 million) in the third quarter of 2021
representing an increase of 8.7% from RMB81.7 million in the
corresponding period of 2020.
-
Lan Zhanggui - Our one-stop insurance service
platform:
- The
number of active users of Lan Zhanggui3
was 28,960 in the third quarter of 2021, as compared to 45,635 in
the corresponding period in 2020. The number of active users of Lan
Zhanggui who have sold at least one life insurance policy was
16,083 in the third quarter of 2021, as compared to 27,908 in the
corresponding period in 2020. The decrease was mainly due to the
weakened demand for critical illness insurance after the strong
sales prior to the transition to the new critical illness
definition framework in the first quarter of 2021;
-
Insurance premiums generated through Lan Zhanggui
were RMB531.3 million (US$82.5 million) in the third quarter of
2021, among which life insurance premiums was RMB451.5 million
(US$70.1 million) and non-life insurance premiums were RMB79.8
million (US$12.4 million), respectively, as compared to RMB693.2
million total insurance premiums generated through Lan Zhanggui
which included RMB552.3 million life insurance premiums and
RMB140.9 million non-life insurance premiums in the corresponding
period in 2020.
-
eHuzhu - Our online mutual aid platform:
- The number of paying
members was 2.3 million as of September 30, 2021, as
compared to 3.0 million as of September 30, 2020.
Recent Developments
- As
of September 30, 2021, Fanhua had 307,835 sales agents and 2,054
professional claims adjusters, compared with 424,510 sales agents
and 1,615 professional claims adjusters as of September 30, 2020.
The decrease in the number of sales agents was mainly due to our
efforts to streamline sales force and focus more on high-performing
sales agents. The number of performing agents4 was
60,887, and the number of performing agents for selling life
insurance products was approximately 16,576 in the third quarter of
2021. As of September 30, 2021, Fanhua’s distribution network
consisted of 750 sales outlets in 23 provinces and 110 services
outlets in 31 provinces, compared with 764 sales outlets in 22
provinces and 121 service outlets in 31 provinces as of September
30, 2020.
Business Outlook
Fanhua expects its operating income to be
approximately RMB80 million for the fourth 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 factors.
Conference Call
The Company will host a conference call to
discuss its third quarter 2021 financial results as per the
following details.
Time: 8:00 PM Eastern Daylight Time on November 23, 2021
or 9:00 AM Beijing/Hong Kong Time on November 24, 2021
The toll free dial-in numbers:
|
United States |
1-833-239-5565 |
| United Kingdom |
0800-279-8057 |
| France |
0805-101-226 |
| Germany |
0800-182-0671 |
| Australia |
1-300-717-205 |
| Hong Kong, China |
800-906-601 |
| Japan |
0120-925-376 |
| South Korea |
080-850-0474 |
|
|
|
|
| The toll dial-in
numbers: |
|
| China
(Mainland) |
400-820-5286 |
| Hong Kong, China
& Other Areas |
+852 30186771 |
| |
|
|
| Conference ID #:
6049226 |
| |
|
|
Additionally, a live and archived web cast of this call will be
available at:
https://edge.media-server.com/mmc/p/swgrgv7o
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 September 30, 2021, our distribution and
service network is consisted of 750 sales outlets covering 23
provinces, autonomous regions and centrally-administered
municipalities and 110 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 September 30, |
|
As of September 30, |
|
|
2020 |
|
2021 |
|
2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
245,428 |
|
|
615,534 |
|
|
95,529 |
|
|
Restricted cash |
83,981 |
|
|
92,830 |
|
|
14,407 |
|
|
Short term investments |
1,307,865 |
|
|
782,193 |
|
|
121,394 |
|
|
Accounts receivable, net |
583,116 |
|
|
563,235 |
|
|
87,413 |
|
|
Other receivables |
50,242 |
|
|
66,547 |
|
|
10,328 |
|
|
Other current assets |
41,148 |
|
|
39,222 |
|
|
6,087 |
|
|
Total current assets |
2,311,780 |
|
|
2,159,561 |
|
|
335,158 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
Restricted bank deposit - non current |
20,689 |
|
|
15,735 |
|
|
2,442 |
|
|
Accounts receivable, net - non-current |
— |
|
|
139,553 |
|
|
21,658 |
|
|
Property, plant, and equipment, net |
36,778 |
|
|
44,190 |
|
|
6,858 |
|
|
Goodwill and intangible assets, net |
109,913 |
|
|
109,869 |
|
|
17,051 |
|
|
Deferred tax assets |
10,032 |
|
|
16,128 |
|
|
2,503 |
|
|
Investment in affiliates |
357,661 |
|
|
386,175 |
|
|
59,933 |
|
|
Other non-current assets |
33,743 |
|
|
31,686 |
|
|
4,918 |
|
|
Right of use assets |
200,403 |
|
|
202,902 |
|
|
31,490 |
|
|
Total non-current assets |
769,219 |
|
|
946,238 |
|
|
146,853 |
|
|
Total assets |
3,080,999 |
|
|
3,105,799 |
|
|
482,011 |
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
377,386 |
|
|
300,076 |
|
|
46,571 |
|
|
Insurance premium payables |
25,421 |
|
|
36,844 |
|
|
5,718 |
|
|
Other payables and accrued expenses |
188,448 |
|
|
164,644 |
|
|
25,552 |
|
|
Accrued payroll |
105,739 |
|
|
97,733 |
|
|
15,169 |
|
|
Income tax payable |
145,983 |
|
|
123,090 |
|
|
19,103 |
|
|
Current operating lease liability |
86,233 |
|
|
87,070 |
|
|
13,513 |
|
|
Total current liabilities |
929,210 |
|
|
809,457 |
|
|
125,626 |
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
Accounts payable – non-current |
— |
|
|
72,409 |
|
|
11,238 |
|
|
Other tax liabilities |
67,219 |
|
|
67,219 |
|
|
10,432 |
|
|
Deferred tax liabilities |
26,380 |
|
|
61,199 |
|
|
9,498 |
|
|
Non-current operating lease liability |
103,526 |
|
|
104,866 |
|
|
16,274 |
|
|
Total non-current liabilities |
197,125 |
|
|
305,693 |
|
|
47,442 |
|
|
Total liabilities |
1,126,335 |
|
|
1,115,150 |
|
|
173,068 |
|
|
|
|
|
|
|
Ordinary shares |
8,088 |
|
|
8,088 |
|
|
1,255 |
|
|
Statutory reserves |
553,911 |
|
|
553,911 |
|
|
85,966 |
|
|
Retained earnings |
1,306,554 |
|
|
1,355,166 |
|
|
210,318 |
|
|
Accumulated other comprehensive loss |
(34,994 |
) |
|
(41,486 |
) |
|
(6,439 |
) |
|
Total shareholders’ equity |
1,833,559 |
|
|
1,875,679 |
|
|
291,100 |
|
|
Non-controlling interests |
121,105 |
|
|
114,970 |
|
|
17,843 |
|
|
Total equity |
1,954,664 |
|
|
1,990,649 |
|
|
308,943 |
|
|
Total liabilities and equity |
3,080,999 |
|
|
3,105,799 |
|
|
482,011 |
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
|
RMB |
|
RMB |
|
USD |
|
RMB |
|
RMB |
|
US$ |
|
Net revenues: |
|
|
|
|
|
|
|
Agency |
691,593 |
|
|
562,127 |
|
|
87,241 |
|
|
2,107,511 |
|
|
2,139,684 |
|
|
332,073 |
|
|
Life insurance business |
652,370 |
|
|
525,241 |
|
|
81,516 |
|
|
2,006,030 |
|
|
2,037,264 |
|
|
316,178 |
|
|
P&C insurance business |
39,223 |
|
|
36,886 |
|
|
5,725 |
|
|
101,481 |
|
|
102,420 |
|
|
15,895 |
|
|
Claims adjusting |
120,410 |
|
|
121,410 |
|
|
18,842 |
|
|
308,660 |
|
|
328,801 |
|
|
51,029 |
|
|
Total net revenues |
812,003 |
|
|
683,537 |
|
|
106,083 |
|
|
2,416,171 |
|
|
2,468,485 |
|
|
383,102 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Agency |
(472,512 |
) |
|
(367,452 |
) |
|
(57,028 |
) |
|
(1,452,077 |
) |
|
(1,405,090 |
) |
|
(218,066 |
) |
|
Life insurance Business |
(447,634 |
) |
|
(341,577 |
) |
|
(53,012 |
) |
|
(1,381,898 |
) |
|
(1,331,519 |
) |
|
(206,648 |
) |
|
P&C insurance Business |
(24,878 |
) |
|
(25,875 |
) |
|
(4,016 |
) |
|
(70,179 |
) |
|
(73,571 |
) |
|
(11,418 |
) |
|
Claims adjusting |
(68,851 |
) |
|
(73,426 |
) |
|
(11,396 |
) |
|
(179,917 |
) |
|
(205,182 |
) |
|
(31,844 |
) |
|
Total operating costs |
(541,363 |
) |
|
(440,878 |
) |
|
(68,424 |
) |
|
(1,631,994 |
) |
|
(1,610,272 |
) |
|
(249,910 |
) |
|
Selling expenses |
(78,460 |
) |
|
(71,627 |
) |
|
(11,116 |
) |
|
(209,859 |
) |
|
(229,352 |
) |
|
(35,595 |
) |
|
General and administrative expenses |
(118,854 |
) |
|
(142,869 |
) |
|
(22,172 |
) |
|
(344,006 |
) |
|
(409,292 |
) |
|
(63,521 |
) |
|
Total operating costs and expenses |
(738,677 |
) |
|
(655,374 |
) |
|
(101,712 |
) |
|
(2,185,859 |
) |
|
(2,248,916 |
) |
|
(349,026 |
) |
|
Income from operations |
73,326 |
|
|
28,163 |
|
|
4,371 |
|
|
230,312 |
|
|
219,569 |
|
|
34,076 |
|
|
Other income, net: |
|
|
|
|
|
|
|
Investment income |
12,910 |
|
|
8,847 |
|
|
1,373 |
|
|
27,039 |
|
|
25,388 |
|
|
3,940 |
|
|
Interest income |
3,196 |
|
|
468 |
|
|
73 |
|
|
11,140 |
|
|
1,510 |
|
|
234 |
|
|
Others, net |
3,359 |
|
|
6,116 |
|
|
949 |
|
|
28,747 |
|
|
24,111 |
|
|
3,742 |
|
|
Income from operations before income taxes and share income
of affiliates |
92,791 |
|
|
43,594 |
|
|
6,766 |
|
|
297,238 |
|
|
270,578 |
|
|
41,992 |
|
|
Income tax expense |
(21,286 |
) |
|
(9,315 |
) |
|
(1,446 |
) |
|
(69,910 |
) |
|
(57,906 |
) |
|
(8,987 |
) |
|
Share of income of affiliates |
9,279 |
|
|
2,486 |
|
|
386 |
|
|
1,427 |
|
|
28,813 |
|
|
4,472 |
|
|
Net income |
80,784 |
|
|
36,765 |
|
|
5,706 |
|
|
228,755 |
|
|
241,485 |
|
|
37,477 |
|
|
Less: net income attributable to noncontrolling interests |
5,462 |
|
|
2,515 |
|
|
390 |
|
|
8,327 |
|
|
1,445 |
|
|
224 |
|
|
Net income attributable to the Company’s
shareholders |
75,322 |
|
|
34,250 |
|
|
5,316 |
|
|
220,428 |
|
|
240,040 |
|
|
37,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
For The Nine Months Ended |
| |
September 30, |
|
September 30, |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
|
RMB |
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
0.07 |
|
|
0.03 |
|
|
0.01 |
|
|
0.21 |
|
|
0.22 |
|
|
0.03 |
|
|
Diluted |
0.07 |
|
|
0.03 |
|
|
0.01 |
|
|
0.21 |
|
|
0.22 |
|
|
0.03 |
|
|
Net income per ADS: |
|
|
|
|
|
|
|
Basic |
1.40 |
|
|
0.64 |
|
|
0.10 |
|
|
4.11 |
|
|
4.47 |
|
|
0.69 |
|
|
Diluted |
1.40 |
|
|
0.64 |
|
|
0.10 |
|
|
4.10 |
|
|
4.47 |
|
|
0.69 |
|
|
|
|
|
|
|
|
|
|
Shares used in calculating net income per
share:Basic |
1,073,891,784 |
|
|
1,073,891,784 |
|
|
1,073,891,784 |
|
|
1,073,891,784 |
|
|
1,073,891,784 |
|
|
1,073,891,784 |
|
|
Diluted |
1,074,291,392 |
|
|
1,074,291,210 |
|
|
1,074,291,210 |
|
|
1,074,291,409 |
|
|
1,074,291,220 |
|
|
1,074,291,220 |
|
| Net
income |
80,784 |
|
|
36,765 |
|
|
5,706 |
|
|
228,755 |
|
|
241,485 |
|
|
37,477 |
|
|
Other comprehensive income, net of tax: Foreign currency
translation adjustments |
6,302 |
|
|
(279 |
) |
|
(43 |
) |
|
10,159 |
|
|
(7,968 |
) |
|
(1,237 |
) |
|
Share of other comprehensive (loss) gain of affiliates |
(1,553 |
) |
|
197 |
|
|
31 |
|
|
(694 |
) |
|
(299 |
) |
|
(46 |
) |
|
Unrealized net gains on available-for-sale investments |
3,917 |
|
|
4,469 |
|
|
694 |
|
|
15,702 |
|
|
1,775 |
|
|
276 |
|
| Comprehensive
income |
89,450 |
|
|
41,152 |
|
|
6,388 |
|
|
253,922 |
|
|
234,993 |
|
|
36,470 |
|
|
Less: Comprehensive income attributable to the noncontrolling
interests |
5,462 |
|
|
2,515 |
|
|
390 |
|
|
8,327 |
|
|
1,445 |
|
|
224 |
|
| Comprehensive income
attributable to the Company’s shareholders |
83,988 |
|
|
38,637 |
|
|
5,998 |
|
|
245,595 |
|
|
233,548 |
|
|
36,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FANHUA INC.
Unaudited Condensed Consolidated
Statements of Cash Flow (In
thousands, except for shares and per share
data)
|
|
For the Three Months Ended |
|
For the Nine
Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
| Net
income |
80,784 |
|
|
36,765 |
|
|
5,706 |
|
|
228,755 |
|
|
241,485 |
|
|
37,477 |
|
| Adjustments to
reconcile net income to net cash generated from operating
activities: |
|
|
|
|
|
|
|
Investment income |
(8,030 |
) |
|
(1,736 |
) |
|
(269 |
) |
|
(13,132 |
) |
|
(3,163 |
) |
|
(491 |
) |
| Share
of income of affiliates |
(9,279 |
) |
|
(2,486 |
) |
|
(386 |
) |
|
(1,427 |
) |
|
(28,813 |
) |
|
(4,472 |
) |
| Other
non-cash adjustments |
31,153 |
|
|
10,390 |
|
|
1,612 |
|
|
102,090 |
|
|
5,769 |
|
|
895 |
|
|
Changes in operating assets and liabilities |
32,625 |
|
|
(25,228 |
) |
|
(3,916 |
) |
|
(14,465 |
) |
|
(157,196 |
) |
|
(24,395 |
) |
| Net cash generated
from operating activities |
127,253 |
|
|
17,705 |
|
|
2,747 |
|
|
301,821 |
|
|
58,082 |
|
|
9,014 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Purchase of short term investments |
(2,326,840 |
) |
|
(1,510,370 |
) |
|
(234,405 |
) |
|
(6,934,962 |
) |
|
(7,255,010 |
) |
|
(1,125,960 |
) |
|
Proceeds from disposal of short term investments |
1,827,416 |
|
|
1,842,576 |
|
|
285,963 |
|
|
7,078,630 |
|
|
7,798,830 |
|
|
1,210,359 |
|
|
Cash received from disposal of nominee shareholding |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10,200 |
|
|
1,583 |
|
|
Cash paid for loan receivables to a third party |
— |
|
|
— |
|
|
— |
|
|
(90,000 |
) |
|
— |
|
|
— |
|
|
Others |
(3,832 |
) |
|
(2,841 |
) |
|
(441 |
) |
|
(9,575 |
) |
|
(20,232 |
) |
|
(3,140 |
) |
|
Net cash (used in) generated from investing
activities |
(503,256 |
) |
|
329,365 |
|
|
51,117 |
|
|
44,093 |
|
|
533,788 |
|
|
82,842 |
|
|
Cash flows from financing activities： |
|
|
|
|
|
|
|
Dividends paid |
(91,865 |
) |
|
(51,958 |
) |
|
(8,064 |
) |
|
(300,695 |
) |
|
(191,427 |
) |
|
(29,709 |
) |
|
Repayment of borrowing related to nominee shareholding |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(10,200 |
) |
|
(1,583 |
) |
|
Dividend distributed to non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7,580 |
) |
|
(1,176 |
) |
|
Net cash used in financing activities |
(91,865 |
) |
|
(51,958 |
) |
|
(8,064 |
) |
|
(300,695 |
) |
|
(209,207 |
) |
|
(32,468 |
) |
|
Net (decrease) increase in cash, cash equivalents and
restricted cash |
(467,868 |
) |
|
295,112 |
|
|
45,800 |
|
|
45,219 |
|
|
382,663 |
|
|
59,388 |
|
|
Cash, cash equivalents and restricted cash at beginning of
period |
786,737 |
|
|
429,330 |
|
|
66,631 |
|
|
265,605 |
|
|
350,098 |
|
|
54,335 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
(709 |
) |
|
(343 |
) |
|
(53 |
) |
|
7,336 |
|
|
(8,662 |
) |
|
(1,345 |
) |
|
Cash, cash equivalents and restricted cash at end of period |
318,160 |
|
|
724,099 |
|
|
112,378 |
|
|
318,160 |
|
|
724,099 |
|
|
112,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
RMB6.4434 to US$1.00, the effective noon buying rate as of
September 30, 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 |
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. |
|
3 |
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. |
|
4 |
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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