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, 20221.
Financial Highlights for the Third
Quarter of 2022
(In thousands, except per ADS data) |
2021Q3(RMB) |
2022Q3(RMB) |
2022Q3(US$) |
Change % |
Total net revenues |
683,537 |
624,746 |
87,825 |
(8.6 |
) |
Operating income |
28,163 |
32,165 |
4,522 |
14.2 |
|
Net income attributable to the Company’s shareholders |
34,250 |
35,371 |
4,972 |
3.3 |
|
Diluted net income per ADS |
0.64 |
0.66 |
0.09 |
3.1 |
|
Cash, cash equivalents and short-term investments and others (as of
September 30, 2021 and 2022) |
1,397,727 |
1,296,9262 |
182,319 |
(7.2 |
) |
Mr. Yinan Hu, chairman and chief executive
officer of Fanhua, commented on the financial results of third
quarter of 2022, “Despite macroeconomic and industry headwinds,
Fanhua maintained steady growth in the third quarter of 2022,
reflecting continued resilience in our business. Gross written
premiums (“GWP”) of our life insurance business grew by 6.2%
year-over-year to RMB2.8 billion, of which our regular life
insurance first-year premiums (“FYP”) increased by 9.1%
year-over-year to RMB529.7 million. While we continued to increase
investments in technology and training, we delivered an operating
income of RMB32.2 million, representing a growth of 14.2%
year-over-year, in line with our previous expectation.”
“We are pleased to witness a continuous
improvement in the quality of our sales force during the third
quarter. In accordance with our plan, the total number of
performing agents declined, while the per capita productivity of
performing agents grew by nearly 20% year-over-year. The
contribution from high-performing agents increased even further,
with the number of ‘100K Premium Agents’3 growing by 46%
year-over-year, representing 48% of our FYP during the quarter,
compared to 39% for the corresponding period in 2021. This is yet
another testament to the positive effects of our
professionalization and career-based strategies.”
“Centering around the needs for high-quality
senior care, wealth management and inheritance solutions from the
mass affluent and high-net-worth families, Fanhua continues to
focus on magnifying our platform’s empowering capabilities through
the following initiatives: i) supporting our agents to provide
whole life journey services by offering a wide spectrum of product
and services that match the demands throughout customer’s
lifecycle; ii) empowering our agents to achieve professional growth
through a combination of our 3F (‘Family Officer Consultant, Fanhua
Retirement Planner and Family Policy Custodian’) professional
trainings, scenario-based marketing and the support from 3R
(‘Account Responsibility, Solution Responsibility and Fulfillment
Responsibility’) marketing model, leveraging on our resources in
trust and health care services and our proprietary insurance policy
custody technology; and iii) improving the efficiency of customer
services through our digitalization efforts.”
“For the fourth quarter of 2022, considering the
ongoing resurgences of COVID-19 cases across the country, the
growth prospect of Chinese insurance industry remains challenging.
Against this backdrop, Fanhua will continue with our established
development strategies to empower agents and create value for
customers.”
Financial Results for the Third Quarter
of 2022
Total net revenues were
RMB624.7 million (US$87.8 million) for the third quarter of 2022,
representing a decrease of 8.6% from RMB683.5 million for the
corresponding period in 2021.
- Net revenues for agency
business were RMB522.7 million (US$73.5 million) for the
third quarter of 2022, representing a decrease of 7.0% from
RMB562.1 million for the corresponding period in 2021. In the third
quarter of 2022, total GWP increased by 6.0% year-over-year to
RMB2,871.1 million, of which FYP grew by 7.7% year-over-year to
RMB610.9 million while renewal premiums increased by 5.6%
year-over-year to RMB2,260.1 million.
- Net revenues for the life insurance business
were RMB480.6 million (US$67.6 million) for the third quarter of
2022, representing a decrease of 8.5% from RMB525.2 million for the
corresponding period in 2021. The decrease was mainly due to the
decrease in the weighted average renewal commission rate of renewal
premium collected, and to a lesser extent, due to the change in the
product mix. For the long term life insurance policies that we
sell, renewal commissions are paid throughout the policy payment
period but the renewal commission rates are higher in the first few
years after the sales of the insurance policies and recede year by
year. In the third quarter of 2022, total life insurance GWP
increased by 6.2% year-over-year to RMB2,789.9 million, of which
FYP increased by 9.1% year-over-year to RMB529.7 million and
renewal premiums increased by 5.6% year-over-year to RMB2,260.1
million.Net revenues generated from our life insurance business
accounted for 76.9% of our total net revenues in the third quarter
of 2022.
- Net revenues for the P&C insurance
business were RMB42.1 million (US$5.9 million) for the
third quarter of 2022, representing an increase of 14.1% from
RMB36.9 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 6.8% of our total net revenues in
the third quarter of 2022.
- Net revenues for the claims
adjusting business were RMB102.0 million (US$14.3 million)
for the third quarter of 2022, representing a decrease of 16.0%
from RMB121.4 million for the corresponding period in 2021. The
decrease was due to the disruption to our claims adjusting business
as a result of the lockdowns in response to the COVID-19 outbreaks
in several areas in China and contraction of our medical-insurance
related claims adjusting business. Net revenues generated from the
claims adjusting business accounted for 16.3% of our total net
revenues in the third quarter of 2022.
Total operating costs and
expenses were RMB592.6 million (US$83.3 million) for the
third quarter of 2022, representing a decrease of 9.6% from
RMB655.4 million for the corresponding period in 2021.
- Commission costs
were RMB393.4 million (US$55.3 million) for the third quarter of
2022, representing a decrease of 10.8% from RMB440.9 million for
the corresponding period in 2021.
- Commission costs for agency business were
RMB324.1 million (US$45.6 million) for the third quarter of 2022,
representing a decrease of 11.8% from RMB367.5 million for the
corresponding period in 2021.
- Costs of the life insurance business were
RMB298.9 million (US$42.0 million) for the third quarter of 2022,
representing a decrease of 12.5% from RMB341.6 million for the
corresponding period in 2021. The decrease was in line with the
decrease in net revenues generated from our life insurance
business. Costs incurred by the life insurance business accounted
for 76.0% of our total commission costs in the third quarter of
2022.
- Costs of the P&C insurance business were
RMB25.2 million (US$3.5 million) for the third quarter of 2022,
representing a decrease of 2.7% from RMB25.9 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). Costs incurred by the P&C
insurance business accounted for 6.4% of our total commission costs
in the third quarter of 2022.
- Costs of claims adjusting business were
RMB69.3 million (US$9.7 million) for the third quarter of 2022,
representing a decrease of 5.6% from RMB73.4 million for the
corresponding period in 2021. Costs incurred by the claims
adjusting business accounted for 17.6% of our total commission
costs in the third quarter of 2022.
- Selling expenses
were RMB69.3 million (US$9.7 million) for the third quarter of
2022, representing a decrease of 3.2% from RMB71.6 million for the
corresponding period in 2021.
- General and administrative
expenses were RMB129.8 million (US$18.3 million) for the
third quarter of 2022, representing a decrease of 9.2% from
RMB142.9 million for the corresponding period in 2021. The decrease
was mainly due to cost savings from personnel optimization,
partially offset by increased expenditures on IT infrastructure and
trainings.
As a result of the foregoing factors, we
recorded an operating income of RMB32.2 million
(US$4.5 million) for the third quarter of 2022, representing an
increase of 14.2% from RMB28.2 million for the corresponding period
in 2021.
Operating margin was 5.1% for
the third quarter of 2022, compared to 4.1% for the corresponding
period in 2021.
Investment income was RMB2.8
million (US$0.4 million) for the third quarter of 2022, as compared
to investment income of RMB8.8 million for the corresponding period
in 2021. The investment income in the third quarter of 2022
consisted of yields from short-term investments in financial
products, and is recognized when the investment matures or is
disposed of.
Income tax expense was RMB8.6
million (US$1.2 million) for the third quarter of 2022,
representing a decrease of 7.5% from RMB9.3 million for the
corresponding period in 2021. The effective tax rate for the third
quarter of 2022 was 20.2% compared with 21.4% for the corresponding
period in 2021.
Net income was RMB33.2 million
(US$4.7 million) for the third quarter of 2022, representing a
decrease of 9.8% from RMB36.8 million for the corresponding period
in 2021.
Net income attributable to the Company’s
shareholders was RMB35.4 million (US$5.0 million) for the
third quarter of 2022, representing an increase of 3.3% from
RMB34.3 million for the corresponding period in 2021.
Net margin was 5.7% for the
third quarter of 2022 as compared to 5.0% for the corresponding
period in 2021.
Basic and diluted net income per
ADS were RMB0.66 (US$0.09) and RMB0.66 (US$0.09) for the
third quarter of 2022, respectively, representing increases of 3.1%
and 3.1% from RMB0.64 and RMB0.64 for the corresponding period in
2021, respectively.
As of September 30, 2022, the Company had
RMB1,296.9 million (US$182.3 million) in cash,
cash equivalents, short-term investments and
others. The amount included short term loans to third
parties of RMB189.0 million and an advance payment of RMB190.0
million for the purchase of short-term investment products.
Other Key Operational
Metrics:
- Lan Zhanggui - Our one-stop
insurance service platform:
- The number of active users
of Lan Zhanggui4 was 17,822 in the third
quarter of 2022, as compared to 16,745 in the same period of 2021
which excluded the number of active users for selling auto
insurance.
- Insurance premiums
generated from Lan Zhanggui were RMB454.2 million (US$63.8
million) in the third quarter of 2022, as compared to RMB452.6
million in the corresponding period of 2021 which excluded auto
insurance premiums.
- 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 active
customer accounts5 was 57,575 in the
third quarter of 2022, as compared to 116,991 in the corresponding
period of 2021;
- Insurance premiums
generated on Baoxian.com were RMB88.4 million (US$12.4
million) in the third quarter of 2022, representing a decrease of
0.5% from RMB88.8 million in the corresponding period of 2021. The
insurance premiums generated per active customer account were
RMB1,535 in the third quarter of 2022, as compared to RMB760 in the
corresponding period of 2021.
- The number of performing agents6
was 32,884 in the third quarter of 2022, compared to 60,887 in the
corresponding period of 2021. The number of performing agents for
selling life insurance products was 7,598 in the third quarter of
2022, compared to 16,576 in the corresponding period of 2021. The
decrease in the number of performing agents for selling life
insurance products was primarily because we shifted focus to
serving high-end customers and high-performing agents, to an
elite-based agent pool. As of September 30, 2022, Fanhua’s
distribution network consisted of 697 sales outlets in 23 provinces
and 100 services outlets in 31 provinces, compared with 750 sales
outlets in 23 provinces and 110 service outlets in 31 provinces as
of September 30, 2021.
Recent Developments
- As of
September 30, 2022, eHuzhu, our online mutual aid platform which
serves to provide alternative risk-protection programs to
lower-income group at more affordable costs, gather over 1.9
million paying members and assisted 10,323 families in raising
about RMB1.2 billion funds to cover their medical costs and help
them get through tough times.
- On
September 25th, 2022, Fanhua was selected into the Top 100
Digitalized Insurance Institutions of 2022 by virtue of its
innovative RONS Open Platform at the first International Insurance
Agency Summit jointly sponsored by All-gen Group, an international
business communication platform builder, and InsurView, a
well-known professional insurtech media in China.
Business Outlook
Fanhua expects its operating income to be no
less than RMB30.0 million for the fourth 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 third quarter 2022 financial results as per the
following details.
Time: 8:00 p.m. Eastern Standard Time on November 21, 2022
or 9:00 a.m. Beijing/Hong Kong Time on November 22, 2022
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:
https://register.vevent.com/register/BI1b627f239d87469890614c8be638bfd4
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/5mcc7ydk
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 for their policy holders 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 September 30, 2022, our distribution and
service network consisted of 697 sales outlets covering 23
provinces, autonomous regions and centrally-administered
municipalities and 100 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.
FANHUA INC.Unaudited
Condensed Consolidated Balance Sheets(In
thousands)
|
As of December 31, |
|
|
As of September 30, |
|
|
As of September 30, |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
564,624 |
|
|
377,310 |
|
|
53,041 |
|
Restricted cash |
76,303 |
|
|
64,949 |
|
|
9,130 |
|
Short term investments |
870,682 |
|
|
540,591 |
|
|
75,995 |
|
Accounts receivable, net |
653,757 |
|
|
582,905 |
|
|
81,943 |
|
Other receivables |
60,755 |
|
|
279,627 |
|
|
39,309 |
|
Other current assets |
39,947 |
|
|
220,901 |
|
|
31,054 |
|
Total current assets |
2,266,068 |
|
|
2,066,283 |
|
|
290,472 |
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Restricted bank deposit – non-current |
15,595 |
|
|
20,578 |
|
|
2,893 |
|
Contract assets, net - non-current |
192,114 |
|
|
323,137 |
|
|
45,426 |
|
Property, plant, and equipment, net |
46,800 |
|
|
103,233 |
|
|
14,512 |
|
Goodwill and intangible assets, net |
109,869 |
|
|
109,997 |
|
|
15,463 |
|
Deferred tax assets |
18,728 |
|
|
22,035 |
|
|
3,098 |
|
Investment in affiliates |
335,808 |
|
|
4,877 |
|
|
686 |
|
Other non-current assets |
31,459 |
|
|
31,310 |
|
|
4,401 |
|
Right of use assets |
225,677 |
|
|
175,849 |
|
|
24,720 |
|
Total non-current assets |
976,050 |
|
|
791,016 |
|
|
111,199 |
|
Total assets |
3,242,118 |
|
|
2,857,299 |
|
|
401,671 |
|
Current liabilities: |
|
|
|
Accounts payable |
377,558 |
|
|
294,935 |
|
|
41,461 |
|
Insurance premium payables |
24,054 |
|
|
18,614 |
|
|
2,617 |
|
Other payables and accrued expenses |
178,157 |
|
|
184,049 |
|
|
25,873 |
|
Accrued payroll |
111,672 |
|
|
94,825 |
|
|
13,330 |
|
Income tax payable |
130,222 |
|
|
121,610 |
|
|
17,096 |
|
Current operating lease liability |
87,012 |
|
|
72,495 |
|
|
10,191 |
|
Total current liabilities |
908,675 |
|
|
786,528 |
|
|
110,568 |
|
|
|
|
|
Non-current liabilities: |
|
|
|
Accounts payable – non-current |
97,869 |
|
|
164,617 |
|
|
23,141 |
|
Other tax liabilities |
73,213 |
|
|
45,788 |
|
|
6,437 |
|
Deferred tax liabilities |
73,716 |
|
|
93,413 |
|
|
13,132 |
|
Non-current operating lease liability |
128,283 |
|
|
93,270 |
|
|
13,111 |
|
Total non-current liabilities |
373,081 |
|
|
397,088 |
|
|
55,821 |
|
Total liabilities |
1,281,756 |
|
|
1,183,616 |
|
|
166,389 |
|
|
|
|
|
Ordinary shares |
8,089 |
|
|
8,091 |
|
|
1,137 |
|
Additional Paid-in capital |
— |
|
|
162 |
|
|
23 |
|
Statutory reserves |
557,221 |
|
|
557,221 |
|
|
78,333 |
|
Retained earnings |
1,311,715 |
|
|
1,023,641 |
|
|
143,901 |
|
Accumulated other comprehensive loss |
(39,140 |
) |
|
(28,468 |
) |
|
(4,002 |
) |
Total shareholders’ equity |
1,837,885 |
|
|
1,560,647 |
|
|
219,392 |
|
Non-controlling interests |
122,477 |
|
|
113,036 |
|
|
15,890 |
|
Total equity |
1,960,362 |
|
|
1,673,683 |
|
|
235,282 |
|
Total liabilities and equity |
3,242,118 |
|
|
2,857,299 |
|
|
401,671 |
|
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, |
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net revenues: |
|
|
|
|
|
|
Agency |
562,127 |
|
|
522,702 |
|
|
73,480 |
|
|
2,139,684 |
|
|
1,714,096 |
|
|
240,964 |
|
Life insurance business |
525,241 |
|
|
480,605 |
|
|
67,562 |
|
|
2,037,264 |
|
|
1,609,833 |
|
|
226,307 |
|
P&C insurance business |
36,886 |
|
|
42,097 |
|
|
5,918 |
|
|
102,420 |
|
|
104,263 |
|
|
14,657 |
|
Claims adjusting |
121,410 |
|
|
102,044 |
|
|
14,345 |
|
|
328,801 |
|
|
300,153 |
|
|
42,195 |
|
Total net revenues |
683,537 |
|
|
624,746 |
|
|
87,825 |
|
|
2,468,485 |
|
|
2,014,249 |
|
|
283,159 |
|
Operating costs and expenses: |
|
|
|
|
|
|
Agency |
(367,452 |
) |
|
(324,164 |
) |
|
(45,570 |
) |
|
(1,405,090 |
) |
|
(1,098,865 |
) |
|
(154,476 |
) |
Life insurance Business |
(341,577 |
) |
|
(298,915 |
) |
|
(42,021 |
) |
|
(1,331,519 |
) |
|
(1,030,418 |
) |
|
(144,854 |
) |
P&C insurance Business |
(25,875 |
) |
|
(25,249 |
) |
|
(3,549 |
) |
|
(73,571 |
) |
|
(68,447 |
) |
|
(9,622 |
) |
Claims adjusting |
(73,426 |
) |
|
(69,253 |
) |
|
(9,735 |
) |
|
(205,182 |
) |
|
(202,329 |
) |
|
(28,443 |
) |
Total operating costs |
(440,878 |
) |
|
(393,417 |
) |
|
(55,305 |
) |
|
(1,610,272 |
) |
|
(1,301,194 |
) |
|
(182,919 |
) |
Selling expenses |
(71,627 |
) |
|
(69,323 |
) |
|
(9,745 |
) |
|
(229,352 |
) |
|
(210,952 |
) |
|
(29,655 |
) |
General and administrative expenses |
(142,869 |
) |
|
(129,841 |
) |
|
(18,253 |
) |
|
(409,292 |
) |
|
(418,321 |
) |
|
(58,807 |
) |
Total operating costs and expenses |
(655,374 |
) |
|
(592,581 |
) |
|
(83,303 |
) |
|
(2,248,916 |
) |
|
(1,930,467 |
) |
|
(271,381 |
) |
Income from operations |
28,163 |
|
|
32,165 |
|
|
4,522 |
|
|
219,569 |
|
|
83,782 |
|
|
11,778 |
|
Other income, net: |
|
|
|
|
|
|
Investment income |
8,847 |
|
|
2,770 |
|
|
389 |
|
|
25,388 |
|
|
9,044 |
|
|
1,271 |
|
Interest income |
468 |
|
|
7,938 |
|
|
1,116 |
|
|
1,510 |
|
|
9,775 |
|
|
1,374 |
|
Others, net |
6,116 |
|
|
(488 |
) |
|
(69 |
) |
|
24,111 |
|
|
8,920 |
|
|
1,254 |
|
Income from operations before income taxes and share of
income of affiliates |
43,594 |
|
|
42,385 |
|
|
5,958 |
|
|
270,578 |
|
|
111,521 |
|
|
15,677 |
|
Income tax expense |
(9,315 |
) |
|
(8,562 |
) |
|
(1,204 |
) |
|
(57,906 |
) |
|
(22,551 |
) |
|
(3,170 |
) |
Share income of
affiliates |
2,486 |
|
|
(621 |
) |
|
(87 |
) |
|
28,813 |
|
|
(68,755 |
) |
|
(9,665 |
) |
Net income |
36,765 |
|
|
33,202 |
|
|
4,667 |
|
|
241,485 |
|
|
20,215 |
|
|
2,842 |
|
Less: net income (loss) attributable to non-controlling
interests |
2,515 |
|
|
(2,169 |
) |
|
(305 |
) |
|
1,445 |
|
|
(9,441 |
) |
|
(1,327 |
) |
Net income
attributable to the Company’s shareholders |
34,250 |
|
|
35,371 |
|
|
4,972 |
|
|
240,040 |
|
|
29,656 |
|
|
4,169 |
|
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, |
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net income per
share: |
|
|
|
|
|
|
Basic |
0.03 |
|
|
0.03 |
|
|
0.01 |
|
|
0.22 |
|
|
0.03 |
|
|
0.01 |
|
Diluted |
0.03 |
|
|
0.03 |
|
|
0.01 |
|
|
0.22 |
|
|
0.03 |
|
|
0.01 |
|
Net income per
ADS: |
|
|
|
|
|
|
Basic |
0.64 |
|
|
0.66 |
|
|
0.09 |
|
|
4.47 |
|
|
0.55 |
|
|
0.08 |
|
Diluted |
0.64 |
|
|
0.66 |
|
|
0.09 |
|
|
4.47 |
|
|
0.55 |
|
|
0.08 |
|
Shares used in
calculating net income per share:Basic |
1,073,891,784 |
|
|
1,074,291,784 |
|
|
1,074,291,784 |
|
|
1,073,891,784 |
|
|
1,074,193,616 |
|
|
1,074,193,616 |
|
Diluted |
1,074,291,210 |
|
|
1,074,500,364 |
|
|
1,074,500,364 |
|
|
1,074,291,220 |
|
|
1,074,262,500 |
|
|
1,074,262,500 |
|
Net
income |
36,765 |
|
|
33,202 |
|
|
4,667 |
|
|
241,485 |
|
|
20,215 |
|
|
2,842 |
|
Other comprehensive (loss)
income, net of tax: Foreign currency translation adjustments |
(279 |
) |
|
3,950 |
|
|
555 |
|
|
(7,968 |
) |
|
4,746 |
|
|
667 |
|
Share of other comprehensive (loss) income of affiliates |
197 |
|
|
— |
|
|
— |
|
|
(299 |
) |
|
4,688 |
|
|
659 |
|
Unrealized net gains on available-for-sale investments |
4,469 |
|
|
1,848 |
|
|
260 |
|
|
1,775 |
|
|
1,238 |
|
|
174 |
|
Comprehensive
income |
41,152 |
|
|
39,000 |
|
|
5,482 |
|
|
234,993 |
|
|
30,887 |
|
|
4,342 |
|
Less: Comprehensive income (loss) attributable to the
non-controlling interests |
2,515 |
|
|
(2,169 |
) |
|
(305 |
) |
|
1,445 |
|
|
(9,441 |
) |
|
(1,327 |
) |
Comprehensive income
attributable to the Company’s shareholders |
38,637 |
|
|
41,169 |
|
|
5,787 |
|
|
233,548 |
|
|
40,328 |
|
|
5,669 |
|
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, |
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net
income |
36,765 |
|
|
33,202 |
|
|
4,667 |
|
|
241,485 |
|
|
20,215 |
|
|
2,842 |
|
Adjustments to
reconcile net income to net cash generated from operating
activities: |
|
|
|
|
|
|
Investment income |
(1,736 |
) |
|
(1,133 |
) |
|
(159 |
) |
|
(3,163 |
) |
|
(2,931 |
) |
|
(412 |
) |
Share
of income of affiliates |
(2,486 |
) |
|
621 |
|
|
87 |
|
|
(28,813 |
) |
|
68,755 |
|
|
9,665 |
|
Other
non-cash adjustments |
38,694 |
|
|
35,027 |
|
|
4,924 |
|
|
102,880 |
|
|
115,076 |
|
|
16,177 |
|
Changes in operating assets and liabilities |
(53,532 |
) |
|
(47,929 |
) |
|
(6,738 |
) |
|
(254,307 |
) |
|
(218,280 |
) |
|
(30,685 |
) |
Net cash generated
from (used in) operating activities |
17,705 |
|
|
19,788 |
|
|
2,781 |
|
|
58,082 |
|
|
(17,165 |
) |
|
(2,413 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
Purchase of short term investments |
(1,510,370 |
) |
|
(452,760 |
) |
|
(63,648 |
) |
|
(7,255,010 |
) |
|
(1,993,760 |
) |
|
(280,278 |
) |
Proceeds from disposal of short-term investments |
1,842,576 |
|
|
653,531 |
|
|
91,872 |
|
|
7,798,830 |
|
|
2,487,862 |
|
|
349,738 |
|
Prepayment for acquisition of short-term investments |
— |
|
|
(240,000 |
) |
|
(33,739 |
) |
|
— |
|
|
(340,000 |
) |
|
(47,797 |
) |
Cash
lent to third parties |
— |
|
|
(105,800 |
) |
|
(14,873 |
) |
|
— |
|
|
(205,800 |
) |
|
(28,931 |
) |
Repayment of loan receivables from a third party |
— |
|
|
20,000 |
|
|
2,812 |
|
|
— |
|
|
20,000 |
|
|
2,812 |
|
Others |
(2,841 |
) |
|
(26,091 |
) |
|
(3,668 |
) |
|
(10,032 |
) |
|
(94,247 |
) |
|
(13,249 |
) |
Net cash generated from (used in) investing
activities |
329,365 |
|
|
(151,120 |
) |
|
(21,244 |
) |
|
533,788 |
|
|
(125,945 |
) |
|
(17,705 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
Dividends paid |
(51,958 |
) |
|
— |
|
|
— |
|
|
(191,427 |
) |
|
(52,069 |
) |
|
(7,320 |
) |
Dividend distributed to non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
(7,580 |
) |
|
— |
|
|
— |
|
Others |
— |
|
|
— |
|
|
— |
|
|
(10,200 |
) |
|
3 |
|
|
— |
|
Net cash used in financing activities |
(51,958 |
) |
|
— |
|
|
— |
|
|
(209,207 |
) |
|
(52,066 |
) |
|
(7,320 |
) |
Net increase (decrease) in cash, cash equivalents and
restricted cash |
295,112 |
|
|
(131,332 |
) |
|
(18,463 |
) |
|
382,663 |
|
|
(195,176 |
) |
|
(27,438 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
429,330 |
|
|
592,425 |
|
|
83,282 |
|
|
350,098 |
|
|
656,522 |
|
|
92,292 |
|
Effect of exchange rate changes on cash and cash equivalents |
(343 |
) |
|
1,744 |
|
|
245 |
|
|
(8,662 |
) |
|
1,491 |
|
|
210 |
|
Cash, cash equivalents and restricted cash at end of
period |
724,099 |
|
|
462,837 |
|
|
65,064 |
|
|
724,099 |
|
|
462,837 |
|
|
65,064 |
|
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
RMB7.1135 to US$1.00, the effective noon buying rate as of
September 30, 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 |
The amount includes short term loans to third parties of RMB189.0
million as recorded in other receivables and an advance payment of
RMB190.0 million for the purchase of short-term investment products
as recorded in other current assets. |
3 |
“100K Premium Agents” refers to agents who have contributed more
than RMB100,000 annualized premiums equivalent during the reporting
period. |
4 |
Active users of Lan Zhanggui in a given period refer to users who
sold at least one insurance policy through Lan Zhanggui (through
either its mobile application or WeChat public account) during such
period. |
5 |
Active customer accounts in a given period refer to customer
accounts that made at least one purchase directly through
www.baoxian.com, its mobile application, or WeChat public account
during such period. |
6 |
Performing agents in a given period refer to agents who sold at
least one insurance policy during such period. |
For more information, please contact:
Investor Relations
Tel: +86 (20) 8388-3191
Email: qiusr@fanhuaholdings.com
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