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, 20221.
Financial Highlights for the First
Quarter of 2022:
(In thousands, except per ADS) |
2021Q1(RMB) |
2022Q1(RMB) |
2022Q1(US$) |
Change % |
Total net revenues |
1,095,029 |
|
686,387 |
|
108,275 |
|
(37.3 |
) |
Operating income |
140,401 |
|
20,589 |
|
3,248 |
|
(85.3 |
) |
Impairment on investment in an affiliate |
— |
|
(78,277 |
) |
(12,348 |
) |
N/A |
|
Net income (loss) attributable to the Company’s shareholders |
138,385 |
|
(37,838 |
) |
(5,969 |
) |
N/A |
|
Non-GAAP net income attributable to the Company’s
shareholders2 |
138,385 |
|
40,439 |
|
6,379 |
|
(70.8 |
) |
Basic and diluted net income (loss) per ADS |
2.58 |
|
(0.70 |
) |
(0.11 |
) |
N/A |
|
Non-GAAP diluted net income per
ADS3 |
2.58 |
|
0.75 |
|
0.12 |
|
(70.9 |
) |
Cash, cash equivalents and short-term investments (As of March 31,
2021 and 2022) |
1,624,399 |
|
1,281,469 |
|
202,146 |
|
(21.1 |
) |
Mr. Yinan Hu, chairman and chief executive
officer of Fanhua, commented on the financial results of first
quarter of 2022, “Since the beginning of 2022, the Omicron COVID-19
variant has been fueling outbreaks in certain areas in China,
dealing a severe blow to offline activities and trainings of our
sales teams, and in the most COVID-stricken areas, Fanhua’s claims
adjusting business almost ground to a halt, leading to a loss in
the segment in the first quarter of 2022.
“The COVID-19 resurgences and economic
uncertainties to some extent restrained the release of consumer
demands for insurance. Along with the high base effect resulted
from the transition to the new critical illness definition
framework in the first quarter of 2021, China’s life insurance
industry reported a decline of 3.1% by gross written premiums
(“GWP”) in the first quarter of 2022 from the same period in 2021.
Against this backdrop, despite a decline in our first-year premiums
of life insurance business, our life insurance business still
managed to grow by 10.1% year over year in terms of GWP, and our
operating income reached RMB20.6 million, meeting our
expectations.
“Despite mounting external challenges, we have
continued to execute on our ‘Professionalization, Career-based,
Digitalization and Open Platform’ strategy and made steady progress
in key initiatives: i) achieving cost reductions and efficiency
improvements by optimizing staffing and closing low-performing
outlets; ii) further tapping into the mid-to-high-net worth market
by offering referral of insurance trust and family trust services;
iii) completing training and certification programs for over 1500
Family Office Consultants (“FOC”) and getting ready with the
training courses for Fanhua retirement planners, helping agents
transform from experts on insurance products to experts on
family-based asset allocation, and then to experts on elderly care
and legacy management; (iv) recruiting high-performing elites; v)
preparing for the launch of Lanzhanggui APP 3.0, a symbol of
Fanhua’s strong technological prowess; vi) working on establishing
standard operating procedures of a 3R (“Account Responsibility,
Solution Responsibility and Fulfill Responsibility”) marketing
model, featuring platform-supported team work to enable our agents
to provide more professional and all-around services to their
clients and (vii) accelerating market development of our open
platform strategy.
“We still face tremendous challenges in the
second quarter of 2022. COVID-19 continues to adversely affect
offline activities of our sales agents. Meanwhile, the regulatory
requirement for double-recording is set to be implemented in Hebei
Province and other areas starting from June 2022, which may also
temporarily cause adverse impact on the insurance industry. Despite
the headwinds, our management team is still confident in achieving
operating profit in the second quarter of 2022.”
Financial Results for the First Quarter
of 2022
Total net revenues were
RMB686.4 million (US$108.3 million) for the first quarter of 2022,
representing a decrease of 37.3% from RMB1,095.0 million for the
corresponding period in 2021.
-
Net revenues for agency business were RMB588.0
million (US$92.8 million) for the first quarter of 2022,
representing a decrease of 41.2% from RMB1,000.1 million for the
corresponding period in 2021. In the first quarter of 2022, total
GWP increased by 9.9% year-over-year to RMB3.4 billion, of which
first year premiums decreased by 37.0% year-over-year to RMB562.8
million while renewal premiums increased by 28.6% year-over-year to
RMB2,883.2 million.
-
Net revenues for the life insurance business were
RMB558.6 million (US$88.1 million) for the first quarter of 2022,
representing a decrease of 42.4% from RMB969.2 million for the
corresponding period in 2021. The decrease was mainly due to i)
disruption of offline sales activities of our sales agents in the
first quarter of 2022 due to outbreaks of COVID-19 pandemic in
multiple regions of China, ii) subdued customer demands for
insurance due to concerns on resurgences of the pandemic and
increased economic uncertainty and iii) high base in the first
quarter of 2021 as a result of the strong sales of critical illness
products prior to the transition to the new critical illness
definition framework resulting in continued weakened demand for
critical illness insurance products post the transition. In the
first quarter of 2022, total life insurance GWP increased by 10.1%
year-over-year to RMB3,375.8 million, of which first year premiums
decreased by 40.1% year-over-year to RMB492.6 million and renewal
premiums increased by 28.6% year-over-year to RMB2,883.2
million.Net revenues generated from our life insurance business
accounted for 81.4% of our total net revenues in the first quarter
of 2022.
-
Net revenues for the P&C insurance business
were RMB29.4 million (US$4.6 million) for the first quarter of
2022, representing a slight decrease of 4.9% from RMB30.9 million
for the corresponding period in 2021. Net revenues for the P&C
insurance business are mainly derived from commissions for medical
insurance, accident insurance, travel insurance and homeowner
insurance products facilitated on Baowang (www.baoxian.com). Net
revenues generated from the P&C insurance business accounted
for 4.3% of our total net revenues in the first quarter of
2022.
-
Net revenues for the claims adjusting business
were RMB98.4 million (US$15.5 million) for the first quarter of
2022, representing an increase of 3.7% from RMB94.9 million for the
corresponding period in 2021. Net revenues generated from the
claims adjusting business accounted for 14.3% of our total net
revenues in the first quarter of 2022.
Total operating costs and
expenses were RMB665.8 million (US105.0 million) for the
first quarter of 2022, representing a decrease of 30.3% from
RMB954.6 million for the corresponding period in 2021.
-
Commission costs were RMB450.7 million (US$71.1
million) for the first quarter of 2022, representing a decrease of
38.9% from RMB737.6 million for the corresponding period in 2021.
-
Commission cost for agency business were RMB383.4
million (US$60.5 million) for the first quarter of 2022,
representing a decrease of 43.1% from RMB674.0 million for the
corresponding period in 2021.
-
Costs of the life insurance business were RMB363.5
million (US$57.3 million) for the first quarter of 2022,
representing a decrease of 44.3% from RMB652.7 million for the
corresponding period in 2021. 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 80.7%
of our total commission costs in the first quarter of 2022.
-
Costs of the P&C insurance business were
RMB19.9 million (US$3.1 million) for the first quarter of 2022,
representing a decrease of 6.6% from RMB21.3 million for the
corresponding period in 2021. The costs of the P&C insurance
business mainly represent commission costs we incurred for
operating Baowang (www.baoxian.com). The decrease in the costs of
P&C insurance business was in line with the decrease in net
revenue of P&C insurance business. Costs incurred by the
P&C insurance business accounted for 4.4% of our total
commission costs in the first quarter of 2022.
-
Costs of claims adjusting business were RMB67.2
million (US$10.6 million) for the first quarter of 2022,
representing an increase of 5.7% from RMB63.6 million for the
corresponding period in 2021. Costs incurred by the claims
adjusting business accounted for 14.9% of our total commission
costs in the first quarter of 2022.
-
Selling expenses were RMB74.9 million (US$11.8
million) for the first quarter of 2022, representing a decrease of
4.5% from RMB78.4 million for the corresponding period in 2021. The
decrease was due to decreased sales events and decreased rental
costs of our sales outlets, partially offset by increased headcount
in Yuntong branches established in 2021.
-
General and administrative expenses were RMB140.2
million (US$22.1 million) for the first quarter of 2022,
representing an increase of 1.2% from RMB138.6 million for the
corresponding period in 2021. The increase was mainly due to
increased expenditures for execution of the Professionalization,
Digitalization and Open Platform strategy.
As a result of the foregoing factors, we
recorded an operating income of RMB20.6 million (US$3.2 million)
for the first quarter of 2022, representing a decrease of 85.3%
from RMB140.4 million for the corresponding period in 2021.
Operating margin was 3.0% for
the first quarter of 2022, compared to 12.8% for the corresponding
period in 2021.
Investment income was RMB4.1
million (US$0.6 million) for the first quarter of 2022,
representing a decrease of 59.8% from RMB10.2 million for the
corresponding period in 2021. The investment income in the first
quarter of 2022 consisted of yields from short-term investments in
financial products. Our investment income fluctuates from quarter
to quarter as investment income is recognized when the investment
matures or is disposed of.
Income tax expense was RMB6.3
million (US$1.0 million) for the first quarter of 2022,
representing a decrease of 80.7% from RMB32.7 million for the
corresponding period in 2021. The effective tax rate for the first
quarter of 2022 was 18.0% compared with 21.4% for the corresponding
period in 2021.
Share of income of affiliates, net of
impairment was negative RMB70.6 million (US$11.1 million)
for the first quarter of 2022, compared to RMB15.4 million for the
corresponding period in 2021. The share of income of affiliates,
net of impairment mainly included (i) an other than temporary
impairment loss of RMB78.3 million (US$12.3 million) on investment
in CNFinance Holdings Limited (“CNFinance”) in the first quarter of
2022, reflecting a write-down to the fair value of the investment
as measured by its closing market price on March 31, 2022, and (ii)
share of income from CNFinance of RMB8.0 million (US$1.3 million)
in the first quarter of 2022, compared to share of income from
CNFinance of RMB15.7 million in the same period of 2021.
Net loss was RMB41.7 million
(US$6.6 million) for the first quarter of 2022, as compared to net
income of RMB135.3 million for the corresponding period in
2021.
Net loss attributable to the Company’s
shareholders was RMB37.8 million (US$6.0 million) for the
first quarter of 2022, as compared to net income attributable to
the Company’s shareholders of RMB138.4 in 2021 mainly due to the
share of income of affiliates, net of impairment.
Non-GAAP net income attributable to the
Company’s shareholders2 (exclusive of
impairment on investment in CNFinance) was RMB40.4 million (US$6.4
million) for the first quarter of 2022, representing a decrease of
70.8% from RMB138.4 million for the corresponding period in
2021.
Net margin was negative 5.5%
for the first quarter of 2022 as compared to 12.6% for the
corresponding period in 2021.
Non-GAAP net margin4 was 5.9%
for the first quarter of 2022 as compared to 12.6% or the
corresponding period in 2021.
Basic and diluted net loss per
ADS were RMB0.70 (US$0.11) and RMB0.70 (US$0.11) for the
first quarter of 2022, respectively, as compared to basic and
diluted net income of RMB2.58 and RMB2.58 per ADS for the
corresponding period in 2021, respectively.
Non-GAAP basic and diluted net income
per ADS3 were RMB0.75 (US$0.12) and RMB0.75 (US$0.12) for
the first quarter of 2022, respectively, as compared to RMB2.58 and
RMB2.58 per ADS for the corresponding period in 2021,
respectively.
As of March 31, 2022, the Company had RMB1,281.5
million (US$202.1 million) in cash, cash equivalents and
short-term investments.
Key Operational Metrics for Fanhua’s
Online Initiatives in 2022:
-
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 March 31, 2022, as compared to 3.1 million as of
March 31, 2021;
-
The number of active customer accounts5 was 88,192
in the first quarter of 2022, representing an increase of 48.7%
from 59,296 in the corresponding period of 2021
-
Insurance premiums generated on Baoxian.com was
RMB82.9 million (US$13.1 million) in the first quarter of 2022,
representing an increase of 0.2% from RMB82.7 million in the
corresponding period of 2021.
-
Lan Zhanggui - Our one-stop insurance service
platform:
-
The number of active users of Lan
Zhanggui6 was 18,086 in the first quarter
of 2022, as compared to 46,723 in the same period of 2021. The
number of active users of Lan Zhanggui who had sold at least one
life insurance policy was 9,371 in the first quarter of 2022, as
compared to 30,585 in the same period of 2021. The decrease was
mainly due to the high base in the first quarter of 2021 as a
result of the strong sales of critical illness insurance products
prior to the transition to the new critical illness definition
framework.
-
Insurance premiums generated from Lan Zhanggui
were RMB442.7 million (US$69.8 million) in the first quarter of
2022, consisting of (i) life insurance premiums of RMB415.4 million
(US$65.5 million) and (ii) non-life insurance premiums of RMB27.3
million (US$4.3 million), respectively, as compared to RMB998.2
million total insurance premiums generated from Lan Zhanggui
consisting of (i) RMB810.5 million life insurance premiums and (ii)
RMB187.7 million non-life insurance premiums in the same period of
2021.
-
eHuzhu - Our online mutual aid platform:
-
The number of paying members was 2.1 million as of
March 31, 2022, as compared to 2.8 million as of March 31,
2021.
Recent Developments
- The
number of performing agents7 was 38,580 in the
first quarter of 2022, compared to 79,194 in the same period of
2021 including 11,656 performing agents for selling life insurance
products in the first quarter of 2022, compared to 33,633 in the
same period of 2021. The decrease in the number of performing
agents was mainly due to the (i) disruption of offline sales
activities of our sales agents in the first quarter of 2022
resulting from outbreaks of COVID-19 pandemic in certain areas of
China, (ii) the high base in the first quarter of 2021 as a result
of the strong sales of critical illness products prior to the
transition to the new critical illness definition framework and
continued weakened demand for critical illness insurance products
post the transition; and (iii) decrease of sales of auto insurance
in the first quarter of 2022. As of March 31, 2022, Fanhua’s
distribution network consisted of 734 sales outlets in 23 provinces
and 109 services outlets with 2,174 professional claims adjusters
in 31 provinces, compared with 771 sales outlets in 23 provinces
and 113 service outlets with 1,829 professional claims adjusters in
31 provinces as of March 31, 2021.
- In May 2022, Fanhua was awarded
“Insurance Intermediary Service Provider of the Year” in the
“Insurance Intermediary List 2022” published by Insurance Today, a
magazine generally regarded as a prominent publication in the
insurance industry. Furthermore, in the Jinnuo Awards organized by
China Banking and Insurance News, one of the most authoritative
publication in the banking and insurance industries, one of the
customized products co-developed by Fanhua and Evergrande won the
award of “Innovative Insurance Product of the Year 2021”, and
Fanhua eHuzhu’s “Marketing Program of Top 10 Cancer Fighting Cases”
was selected as one of the “Outstanding Social Responsibility
Projects in the Finance Industry of the Year”.
Business Outlook
Fanhua expects its operating income to remain
positive for the second quarter of 2022. 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 first quarter 2022 financial results as per the
following details.
Time: 9:00 p.m. Eastern Daylight Time on May 26,
2022or 9:00 a.m. Beijing/Hong Kong Time on May 27, 2022
The toll free dial-in numbers:
United States |
|
1-833-239-5565 |
Hong Kong, China |
|
800-906-601 |
South Korea |
|
080-850-0474 |
The toll dial-in numbers:
China (Mainland) |
|
400-820-5286 |
Hong Kong, China & Other Areas |
|
+852 30-186-771 |
United Kingdom |
|
+44 203-692-8125 |
Conference ID #: 4067079
Additionally, a live and archived web cast of
this call will be available at:
https://edge.media-server.com/mmc/p/h4u2gjx5
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: (i) 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; (ii) Baowang (www.baoxian.com),
an online entry portal for comparing and purchasing short term
health, accident, travel and homeowner insurance products and (iii)
eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in
China.
As of March 31, 2022, our distribution and
service network consisted of 734 sales outlets covering 23
provinces, autonomous regions and centrally-administered
municipalities and 109 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. Except
as otherwise indicated, all information provided in this press
release speaks 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.
About Non-GAAP Financial
Measures
In addition to the Company’s consolidated
financial results under generally accepted accounting principles in
the United States (“GAAP”), the Company also provides non-GAAP net
income attributable to the Company’s shareholders, non-GAAP net
margin and non-GAAP basic and diluted net income per ADS, all of
which are non-GAAP financial measures, as supplemental measures to
review and assess operating performance. Non-GAAP net income
attributable to the Company’s shareholders is defined as net income
attributable to the Company’s shareholders before impairment on
investment in an affiliate. Non-GAAP net margin is defined as
non-GAAP net income attributable to the Company's shareholders3 as
a percentage of net revenues. Non-GAAP basic net income per ADS is
defined as non-GAAP net income attributable to the Company’s
shareholders divided by total weighted average number of ADSs of
the Company outstanding during the period. Non-GAAP diluted net
income per ADS is defined as non-GAAP net income attributable to
the Company’s shareholders divided by total weighted average number
of diluted ADSs of the Company outstanding during the period. The
Company believes that both management and investors benefit from
referring to these non-GAAP financial measures in assessing the
Company’s performance and when planning and forecasting future
periods. The Company’s non-GAAP financial measures do not reflect
all items of income and expenses that affect the Company’s
operations. Specifically, the Company’s non-GAAP measures exclude
impairment on investment in an affiliate. Further, these non-GAAP
financial measures may not be comparable to similarly titled
measures presented by other companies, including peer companies.
The presentation of these non-GAAP financial measures has
limitations as analytical tools, and investors should not consider
them in isolation from, or as a substitute for analysis of, the
financial information prepared and presented in accordance with
GAAP. We encourage investors and other interested persons to review
our financial information in its entirety and not rely on a single
financial measure.
For more information on these non-GAAP financial
measures, please see the tables captioned “Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures” set forth at the
end of this press release.
|
FANHUA
INC.Unaudited Condensed Consolidated Balance
Sheets(In thousands) |
|
|
|
|
|
As of December 31, |
|
As of March 31, |
|
As of March 31, |
|
2,021 |
|
2,022 |
|
2,022 |
|
RMB |
|
RMB |
|
US$ |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
564,624 |
|
|
629,551 |
|
|
99,309 |
|
Restricted cash |
76,303 |
|
|
76,229 |
|
|
12,025 |
|
Short
term investments |
870,682 |
|
|
651,918 |
|
|
102,837 |
|
Accounts
receivable and contract assets, net |
653,757 |
|
|
638,082 |
|
|
100,655 |
|
Other
receivables |
60,755 |
|
|
71,650 |
|
|
11,302 |
|
Investment in affiliates |
— |
|
|
258,419 |
|
|
40,765 |
|
Other
current assets |
39,947 |
|
|
45,120 |
|
|
7,118 |
|
Total current assets |
2,266,068 |
|
|
2,370,969 |
|
|
374,011 |
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Restricted bank deposit - non current |
15,595 |
|
|
15,608 |
|
|
2,462 |
|
Contract
assets, net - non-current |
192,114 |
|
|
223,097 |
|
|
35,193 |
|
Property,
plant, and equipment, net |
46,800 |
|
|
103,453 |
|
|
16,319 |
|
Goodwill
and intangible assets, net |
109,869 |
|
|
109,869 |
|
|
17,332 |
|
Deferred
tax assets |
18,728 |
|
|
25,669 |
|
|
4,049 |
|
Investment in affiliates |
335,808 |
|
|
6,342 |
|
|
1,000 |
|
Other
non-current assets |
31,459 |
|
|
31,310 |
|
|
4,939 |
|
Right of
use assets |
225,677 |
|
|
201,138 |
|
|
31,729 |
|
Total non-current assets |
976,050 |
|
|
716,486 |
|
|
113,023 |
|
Total assets |
3,242,118 |
|
|
3,087,455 |
|
|
487,034 |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable and accrued commissions |
377,558 |
|
|
315,358 |
|
|
49,746 |
|
Insurance
premium payables |
24,054 |
|
|
25,703 |
|
|
4,055 |
|
Other
payables and accrued expenses |
178,157 |
|
|
165,392 |
|
|
26,090 |
|
Accrued
payroll |
111,672 |
|
|
87,386 |
|
|
13,785 |
|
Income
tax payable |
130,222 |
|
|
132,090 |
|
|
20,837 |
|
Dividend
payable |
— |
|
|
51,079 |
|
|
8,057 |
|
Current
operating lease liability |
87,012 |
|
|
87,072 |
|
|
13,735 |
|
Total current liabilities |
908,675 |
|
|
864,080 |
|
|
136,305 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Accrued
commissions – non-current |
97,869 |
|
|
113,653 |
|
|
17,929 |
|
Other tax
liabilities |
73,213 |
|
|
64,072 |
|
|
10,107 |
|
Deferred
tax liabilities |
73,716 |
|
|
76,217 |
|
|
12,023 |
|
Non-current operating lease liability |
128,283 |
|
|
107,269 |
|
|
16,921 |
|
Total non-current liabilities |
373,081 |
|
|
361,211 |
|
|
56,980 |
|
Total liabilities |
1,281,756 |
|
|
1,225,291 |
|
|
193,285 |
|
|
|
|
|
|
|
|
|
|
Ordinary
shares |
8,089 |
|
|
8,091 |
|
|
1,276 |
|
Statutory
reserves |
557,221 |
|
|
557,221 |
|
|
87,900 |
|
Retained
earnings |
1,311,715 |
|
|
1,222,799 |
|
|
192,892 |
|
Accumulated other comprehensive loss |
(39,140 |
) |
|
(44,575 |
) |
|
(7,032 |
) |
Total shareholders’ equity |
1,837,885 |
|
|
1,743,536 |
|
|
275,036 |
|
Non-controlling interests |
122,477 |
|
|
118,628 |
|
|
18,713 |
|
Total equity |
1,960,362 |
|
|
1,862,164 |
|
|
293,749 |
|
Total liabilities and equity |
3,242,118 |
|
|
3,087,455 |
|
|
487,034 |
|
|
|
|
|
|
|
|
|
|
|
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, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
Net revenues: |
|
|
|
|
|
|
|
|
Agency |
1,000,104 |
|
|
587,988 |
|
|
92,753 |
|
Life insurance business |
969,234 |
|
|
558,574 |
|
|
88,113 |
|
P&C insurance business |
30,870 |
|
|
29,414 |
|
|
4,640 |
|
Claims adjusting |
94,925 |
|
|
98,399 |
|
|
15,522 |
|
Total net revenues |
1,095,029 |
|
|
686,387 |
|
|
108,275 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Agency |
(674,018 |
) |
|
(383,443 |
) |
|
(60,487 |
) |
Life insurance Business |
(652,682 |
) |
|
(363,527 |
) |
|
(57,345 |
) |
P&C insurance Business |
(21,336 |
) |
|
(19,916 |
) |
|
(3,142 |
) |
Claims adjusting |
(63,639 |
) |
|
(67,249 |
) |
|
(10,608 |
) |
Total operating costs |
(737,657 |
) |
|
(450,692 |
) |
|
(71,095 |
) |
Selling expenses |
(78,403 |
) |
|
(74,868 |
) |
|
(11,810 |
) |
General and administrative expenses |
(138,568 |
) |
|
(140,238 |
) |
|
(22,122 |
) |
Total operating costs and expenses |
(954,628 |
) |
|
(665,798 |
) |
|
(105,027 |
) |
Income from operations |
140,401 |
|
|
20,589 |
|
|
3,248 |
|
Other income, net: |
|
|
|
|
|
|
|
|
Investment income |
10,233 |
|
|
4,054 |
|
|
639 |
|
Interest income |
526 |
|
|
679 |
|
|
107 |
|
Others, net |
1,477 |
|
|
9,973 |
|
|
1,573 |
|
Income from operations before income taxes and share income
of affiliates |
152,637 |
|
|
35,295 |
|
|
5,567 |
|
Income tax expense |
(32,701 |
) |
|
(6,348 |
) |
|
(1,001 |
) |
Share of income of affiliates, net of impairment |
15,362 |
|
|
(70,634 |
) |
|
(11,142 |
) |
Net income (loss) |
135,298 |
|
|
(41,687 |
) |
|
(6,576 |
) |
Less: net loss attributable to non-controlling interests |
(3,087 |
) |
|
(3,849 |
) |
|
(607 |
) |
Net income (loss) attributable to the Company’s
shareholders |
138,385 |
|
|
(37,838 |
) |
|
(5,969 |
) |
|
|
|
|
|
|
|
|
|
|
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, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
US$ |
Net income (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
0.13 |
|
|
(0.04 |
) |
|
(0.01 |
) |
Diluted |
0.13 |
|
|
(0.04 |
) |
|
(0.01 |
) |
Net income (loss) per ADS: |
|
|
|
|
|
|
|
|
Basic |
2.58 |
|
|
(0.70 |
) |
|
(0.11 |
) |
Diluted |
2.58 |
|
|
(0.70 |
) |
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
Shares used in calculating net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1,073,891,784 |
|
|
1,073,994,006 |
|
|
1,073,994,006 |
|
Diluted |
1,074,291,239 |
|
|
1,073,994,006 |
|
|
1,073,994,006 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
135,298 |
|
|
(41,687 |
) |
|
(6,576 |
) |
Other comprehensive (loss) income, net of tax: Foreign currency
translation adjustments |
(6,378 |
) |
|
90 |
|
|
14 |
|
Share of other comprehensive gain (loss) of affiliates |
542 |
|
|
(413 |
) |
|
(65 |
) |
Unrealized net loss on available-for-sale investments |
(6,980 |
) |
|
(5,112 |
) |
|
(806 |
) |
Comprehensive income (loss) |
122,482 |
|
|
(47,122 |
) |
|
(7,433 |
) |
Less: Comprehensive loss attributable to the non-controlling
interests |
(3,087 |
) |
|
(3,849 |
) |
|
(607 |
) |
Comprehensive income (loss) attributable to the Company’s
shareholders |
125,569 |
|
|
(43,273 |
) |
|
(6,826 |
) |
|
|
|
|
|
|
|
|
|
|
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, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
US$ |
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income (loss) |
135,298 |
|
|
(41,687 |
) |
|
(6,576 |
) |
Adjustments to reconcile net income to net cash generated
from operating activities: |
|
|
|
|
|
|
|
|
Investment income |
(92 |
) |
|
(1,649 |
) |
|
(260 |
) |
Share of income of affiliates, net of impairment |
(15,362 |
) |
|
70,634 |
|
|
11,142 |
|
Other non-cash adjustments |
37,914 |
|
|
35,655 |
|
|
5,623 |
|
Changes in operating assets and liabilities |
(77,307 |
) |
|
(150,027 |
) |
|
(23,664 |
) |
Net cash generated from (used in) operating
activities |
80,451 |
|
|
(87,074 |
) |
|
(13,735 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of short term investments |
(2,767,430 |
) |
|
(855,000 |
) |
|
(134,873 |
) |
Proceeds from disposal of short term investments |
3,220,073 |
|
|
1,068,447 |
|
|
168,543 |
|
Others |
2,874 |
|
|
(61,764 |
) |
|
(9,743 |
) |
Net cash generated from investing activities |
455,517 |
|
|
151,683 |
|
|
23,927 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Others |
(10,200 |
) |
|
3 |
|
|
— |
|
Net cash (used in) generated from financing
activities |
(10,200 |
) |
|
3 |
|
|
— |
|
Net increase in cash, cash equivalents and restricted
cash |
525,768 |
|
|
64,612 |
|
|
10,192 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
350,098 |
|
|
656,522 |
|
|
103,564 |
|
Effect of exchange rate changes on cash and cash equivalents |
(6,528 |
) |
|
254 |
|
|
40 |
|
Cash, cash equivalents and restricted cash at end of
period |
869,338 |
|
|
721,388 |
|
|
113,796 |
|
|
|
|
|
|
|
|
|
|
|
FANHUA INC.Reconciliations of GAAP
Financial Measures to Non-GAAP Financial
Measures(In RMB in thousands, except shares and
per share data) |
|
|
|
For The Three Months Ended March 31 |
|
2021 |
|
2022 |
|
|
|
GAAP |
|
|
Impairment on investment in affiliates |
|
|
Non-GAAP |
|
|
GAAP |
|
|
Impairment on investment in affiliates |
|
|
Non-GAAP |
|
|
Change% |
|
Net revenues |
1,095,029 |
|
|
— |
|
|
1,095,029 |
|
|
686,387 |
|
|
— |
|
|
686,387 |
|
|
(37.3 |
) |
Income from operations |
140,401 |
|
|
— |
|
|
140,401 |
|
|
20,589 |
|
|
— |
|
|
20,589 |
|
|
(85.3 |
) |
Operating margin |
12.8 |
% |
|
— |
|
|
12.8 |
% |
|
3.0 |
% |
|
|
3.0 |
% |
|
(76.6 |
) |
Share of income of affiliates,
net of impairment |
15,362 |
|
|
— |
|
|
15,362 |
|
|
(70,634 |
) |
|
(78,277 |
) |
|
7,643 |
|
|
(50.2 |
) |
Netincome(loss)
attributable to the Company’s shareholders |
138,385 |
|
|
— |
|
|
138,385 |
|
|
(37,838 |
) |
|
(78,277 |
) |
|
40,439 |
|
|
(70.8 |
) |
Net margin |
12.6 |
% |
|
|
|
|
12.6 |
% |
|
(5.5 |
%) |
|
|
5.9 |
% |
|
(53.2 |
) |
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
Basic |
0.13 |
|
|
— |
|
|
0.13 |
|
|
(0.04 |
) |
|
— |
|
|
0.04 |
|
|
(69.2 |
) |
Diluted |
0.13 |
|
|
— |
|
|
0.13 |
|
|
(0.04 |
) |
|
— |
|
|
0.04 |
|
|
(69.2 |
) |
Net income (loss) per ADS : |
|
|
|
|
|
|
|
|
|
Basic |
2.58 |
|
|
— |
|
|
2.58 |
|
|
(0.70 |
) |
|
— |
|
|
0.75 |
|
|
(70.9 |
) |
Diluted |
2.58 |
|
|
— |
|
|
2.58 |
|
|
(0.70 |
) |
|
— |
|
|
0.75 |
|
|
(70.9 |
) |
Shares used in calculating net income (loss) per share : |
|
|
|
|
|
|
|
|
|
Basic |
1,073,891,784 |
|
|
— |
|
|
1,073,891,784 |
|
|
1,073,994,006 |
|
|
— |
|
|
1,073,994,006 |
|
|
— |
|
Diluted |
1,074,291,239 |
|
|
— |
|
|
1,074,291,239 |
|
|
1,073,994,006 |
|
|
— |
|
|
1,073,994,006 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For more information, please
contact:
Investor Relations
Tel: +86 (20) 8388-3191
Email: qiusr@fanhuaholdings.com
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
RMB6.3393 to US$1.00, the effective noon buying rate as of March
31, 2022 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 Non-GAAP net income attributable to the Company’s
shareholders is defined as net income attributable to the Company’s
shareholders before impairment on investment in an
affiliate.3 Non-GAAP diluted net income per ADS is defined as
non-GAAP net income attributable to the Company’s shareholders
divided by total weighted average number of diluted ADSs of the
Company outstanding during the period.4 Non-GAAP net margin
is defined as non-GAAP net income attributable to the Company's
shareholders as a percentage of net revenues.5 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.6 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.7 Performing agents are defined as agents who
have sold at least one insurance policy during the specified
period.
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fanhua (NASDAQ:FANH)
Historical Stock Chart
From Jul 2023 to Jul 2024