Fanhua Inc. (Nasdaq: FANH) (the “Company” or “Fanhua”), a leading
independent financial services provider in China, today announced
its unaudited financial results for the fourth quarter and fiscal
year ended December 31, 20221.
Financial Highlights for the Fourth
Quarter of 2022:
(In thousands, except per ADS) |
2021Q4 (RMB) |
2022Q4 (RMB) |
|
2022Q4(US$) |
|
Change % |
Total net revenues |
802,629 |
|
767,365 |
|
111,258 |
|
(4.4 |
) |
Operating income |
82,336 |
|
84,893 |
|
12,309 |
|
3.1 |
|
Impairment on investment in an affiliate |
(29,316 |
) |
— |
|
— |
|
N/A |
|
Net income attributable to the Company’s shareholders |
10,949 |
|
70,616 |
|
10,239 |
|
545.0 |
|
Non-GAAP net income attributable to the Company’s
shareholders2 |
40,265 |
|
70,915 |
|
10,282 |
|
76.1 |
|
Diluted net income per ADS |
0.20 |
|
1.31 |
|
0.19 |
|
555.0 |
|
Non-GAAP diluted net income per ADS3 |
0.75 |
|
1.32 |
|
0.19 |
|
76.0 |
|
Cash, cash equivalents, short- term investments and others (As of
December, 31, 2021 and 2022) |
1,435,306 |
|
1,488,6324 |
|
215,831 |
|
3.7 |
|
Financial Highlights for Year
2022:
(In thousands, except per ADS) |
2021(RMB) |
2022(RMB) |
2022(US$) |
Change % |
Total net revenues |
3,271,114 |
|
2,781,614 |
|
403,296 |
|
(15.0 |
) |
Operating income |
301,905 |
|
168,675 |
|
24,455 |
|
(44.1 |
) |
Impairment on investment in an affiliate |
(29,316 |
) |
(78,277 |
) |
(11,349 |
) |
167.0 |
|
Net income attributable to the Company’s shareholders |
250,989 |
|
100,272 |
|
14,538 |
|
(60.0 |
) |
Non-GAAP net income attributable to the Company’s
shareholders2 |
280,305 |
|
179,010 |
|
25,954 |
|
(36.1 |
) |
Diluted net income per ADS |
4.67 |
|
1.87 |
|
0.27 |
|
(60.0 |
) |
Non-GAAP diluted net income per ADS3 |
5.22 |
|
3.33 |
|
0.48 |
|
(36.2 |
) |
Mr. Yinan Hu, chairman and chief executive
officer of Fanhua, commented on the financial results of fourth
quarter and fiscal year of 2022, “China’s insurance market is
undergoing profound transformation. We believe life insurance sales
intermediaries will become increasingly more professional,
personalized and fragmented, while the service providers of
supporting platforms will become more concentrated.
“To fully capitalize on the growth opportunities
amid industry transformation, Fanhua has been steadfastly
implementing the “Professionalization, Career-based, Digitalization
and Open-Platform” strategy, aiming to transform the company from a
sole insurance distributor to a technology-driven digital platform
that empowers the industry.
“As we focused on executing the new strategy in
2022, we continued to see fruitful results with steady growth
across various operating metrics. During the fourth quarter of
2022, despite challenges from surge of COVID-19 cases in December
2022, we delivered approximately RMB3.6 billion in total gross
written premiums (“GWP”), up 11.7% year-over-year, of which first
year premiums (“FYP”) grew by 19.6% year-over-year. We had
operating income of RMB84.9 million, far ahead of our previous
expectations, while non-GAAP net income attributable to the
Company’s shareholders grew by 76.1% year-over-year to RMB70.9
million. For 2022, total GWP facilitated by Fanhua grew by 10.3%
year over year to RMB12.8 billion, of which the FYP reached RMB2.9
billion, up 3.5% year over year. Excluding the business in January
of 2021 and 2022 when a regulatory change had created a high base
in January 2022, our FYP in the last 11 months of 2022 grew by
approximately 20.1% year over year. Operating income for 2022
reached RMB168.7 million.
“As we accelerate our strategic transformation
in 2023, we aim to gain more market share by focusing on the
following initiatives: (i) enhancing efforts on the
professionalization and career-based development of our sales
force; (ii) increasing investment in enhancing digital operation
capabilities; and (iii) speeding up strategic acquisitions. Our
target is to achieve no less than 50% year-over-year growth in both
life insurance FYP and operating income in 2023.”
Share Repurchase Program
On December 20, 2022, the Company’s board of
directors announced a share repurchase program which authorized the
Company to repurchase up to US$20 million of its American
depositary shares (“ADS”). As of December 31, 2022, the Company had
repurchased an aggregate of 72,465 ADS, at an average price of
approximately US$7.85 per ADS for a total amount of approximately
US$0.6 million. The repurchased shares are intended to be used to
fund strategic acquisitions.
Financial Results for the Fourth Quarter
of 2022
Total net revenues were
RMB767.4 million (US$111.3 million) for the fourth quarter of 2022,
representing a decrease of 4.4% from RMB802.6 million for the
corresponding period in 2021.
-
Net revenues for agency business were RMB662.8
million (US$96.1 million) for 2022, representing a decrease of 1.4%
from RMB672.3 million for the corresponding period in 2021. Total
GWP increased by 11.7% year-over-year to RMB3,572.5 million, of
which FYP grew by 19.6% year-over-year to RMB1,026.1 million while
renewal premiums increased by 8.9% year-over-year to RMB2,546.4
million.
-
Net revenues for the life insurance business were
RMB627.5 million (US$91.0 million) for the fourth quarter of 2022,
representing a decrease of 2.3% from RMB642.5 million for the
corresponding period in 2021. Total life insurance GWP increased by
11.4% year-over-year to RMB3,465.3 million, of which FYP increased
by 19.1% year-over-year to RMB918.9 million and renewal premiums
increased by 8.9% year-over-year to RMB2,546.4 million. The
decrease in net revenues for the life insurance business was mainly
due to the decrease in renewal commission income as a result of the
decreased weighted average renewal commission rate of renewal
premium collected, and to a lesser extent, due to changes in the
product mix. For 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 in subsequent
periods. Net revenues generated from our life insurance business
accounted for 81.8% of our total net revenues in the fourth quarter
of 2022, as compared to 80.1% in the same period of 2021.
- Net revenues for the P&C insurance
business were RMB35.3 million (US$5.1 million) for the
fourth quarter of 2022, representing an increase of 18.5% from
RMB29.8 million for the corresponding period in 2021. The increase
was mainly due to the contribution from a newly acquired brokerage
firm. 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 4.6% of our total net revenues in
the fourth quarter of 2022, as compared to 3.7% in the same period
of 2021.
- Net revenues for the claims adjusting business
were RMB104.6 million (US$15.2 million) for the fourth quarter of
2022, representing a decrease of 19.8% from RMB130.4 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 multiple areas
in China and contraction of our medical-insurance related claims
adjusting business. Net revenues generated from the claims
adjusting business accounted for 13.6% of our total net revenues in
the fourth quarter of 2022, as compared to 16.2% in the same period
of 2021.
Total operating costs and
expenses were RMB682.5 million (US$99.0 million) for the
fourth quarter of 2022, representing a decrease of 5.2% from
RMB720.3 million for the corresponding period in 2021.
-
Commission costs were RMB494.4 million
(US$71.7million) for the fourth quarter of 2022, representing a
decrease of 2.1% from RMB504.9 million for the corresponding period
in 2021.
-
Commission costs for agency business were RMB428.7
million (US$62.2 million) for the fourth quarter of 2022,
representing a decrease of 0.5% from RMB430.7 million for the
corresponding period in 2021.
-
Costs of the life insurance business were RMB406.2
million (US$58.9 million) for the fourth quarter of 2022,
representing a decrease of 1.2% from RMB411.1 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 82.2% of our total commission costs in the fourth quarter of
2022, as compared to 81.4% in the same period of 2021.
-
Costs of the P&C insurance business were
RMB22.5 million (US$3.3 million) for the fourth quarter of 2022,
representing an increase of 14.8% from RMB19.6 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 4.5% of our total commission costs
in the fourth quarter of 2022, as compared to 3.9% in the same
period of 2021.
- Costs
of claims adjusting business were RMB65.7 million (US$9.5
million) for the fourth quarter of 2022, representing a decrease of
11.5% from RMB74.2 million for the corresponding period in 2021.
Costs incurred by the claims adjusting business accounted for 13.3%
of our total commission costs in the fourth quarter of 2022, as
compared to 14.7% in the same period of 2021.
-
Selling expenses were RMB61.8 million (US$9.0
million) for the fourth quarter of 2022, representing a decrease of
19.8% from RMB77.1 million for the corresponding period in 2021.
The decrease was due to cost savings from personnel optimization
and decreased sales events and rental costs of our sales
outlets.
-
General and administrative expenses were RMB126.3
million (US$18.3 million) for the fourth quarter of 2022,
representing a decrease of 8.7% from RMB138.3 million for the
corresponding period in 2021. The decrease was mainly due to
decreased Yuntong branches in the fourth quarter of 2022.
As a result of the foregoing factors, we
recorded operating income of RMB84.9 million
(US$12.3million) for the fourth quarter of 2022, representing an
increase of 3.1% from RMB82.3 million for the corresponding period
in 2021.
Operating margin was 11.1% for
the fourth quarter of 2022, compared to 10.3% for the corresponding
period in 2021.
Investment income was RMB8.8
million (US$1.3 million) for the fourth quarter of 2022,
representing an increase of 17.3% from RMB7.5 million for the
corresponding period in 2021. The investment income in the fourth
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 RMB18.5
million (US$2.7 million) for the fourth quarter of 2022,
representing a decrease of 43.4% from RMB32.7 million for the
corresponding period in 2021. The effective tax rate for the fourth
quarter of 2022 was 21.8% compared with 32.5% for the corresponding
period in 2021.
Net income was RMB65.5 million
(US$9.5 million) for the fourth quarter of 2022, representing an
increase of 254.1% from RMB18.5 million for the corresponding
period in 2021.
Net income attributable to the Company’s
shareholders was RMB70.6 million (US$10.2 million) for the
fourth quarter of 2022, representing an increase of 545.0% from
RMB10.9 million for the corresponding period in 2021.
Non-GAAP net income attributable to the
Company’s shareholders2,
which excluded impairment on investment in CNFinance Holdings
Limited (NYSE:CNF), or CNFinance, and share-based compensation
expenses, was RMB70.9 million (US$10.3 million) for the fourth
quarter of 2022, representing an increase of 76.1% from RMB40.3
million for the corresponding period in 2021.
Net margin was 9.2% for the
fourth quarter of 2022 as compared to 1.4% for the corresponding
period in 2021.
Non-GAAP net margin5 was 9.2%
for the fourth quarter of 2022 as compared to 5.0% for the
corresponding period in 2021.
Basic and diluted net income per
ADS were RMB1.31 (US$0.19) and RMB1.31 (US$0.19) for the
fourth quarter of 2022, respectively, representing increases of
555.0% and 555.0% from RMB0.20 and RMB0.20 for the corresponding
period in 2021, respectively.
Non-GAAP
basic6 and diluted net income per
ADS3 were RMB1.32 (US$0.19) and RMB1.32
(US$0.19) for the fourth quarter of 2022, respectively,
representing increases of 76.0% and 76.0% from RMB0.75 and RMB0.75
for the corresponding period in 2021, respectively.
Financial Results for Year
2022
Total net revenues were
RMB2,781.6 million (US$403.3 million) for 2022, representing a
decrease of 15.0% from RMB3,271.1 million in 2021.
-
Net revenues for agency business were RMB2,376.8
million (US$344.6 million) for 2022, representing a decrease of
15.5% from RMB2,811.9 million in 2021. Total GWP increased by 10.3%
year-over-year to RMB12,778.5 million, of which FYP increased by
3.5% year-over-year to RMB2,926.4 million while renewal premiums
increased by 12.6% year-over-year to RMB9,852.1 million.
-
Net revenues for the life insurance business were
RMB2,237.3 million (US$324.4 million) for 2022, representing a
decrease of 16.5% from RMB2,679.7 million in 2021. The decrease was
mainly due to (i) 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
(ii) 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. In 2022, total life insurance GWP
increased by 10.2% year-over-year to RMB12,409.0 million, of which
FYP increased by 2.0% year-over-year to RMB2,556.9 million and
renewal premiums increased by 12.6% year-over-year to RMB9,852.1
million. Net revenues generated from our life insurance business
accounted for 80.4% of our total net revenues in 2022, as compared
to 81.9% in 2021.
- Net revenues for the P&C insurance
business were RMB139.5 million (US$20.2 million) for 2022,
representing an increase of 5.5% from RMB132.2 million 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 5.0% of our total net revenues in
2022, as compared to 4.1% in 2021.
-
Net revenues for the claims adjusting business
were RMB404.8 million (US$58.7 million) for 2022, representing a
decrease of 11.8% from RMB459.2 million 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 multiple
areas in China and contraction of our medical-insurance related
claims adjusting business. Net revenues generated from the claims
adjusting business accounted for 14.6% of our total net revenues in
2022, as compared to 14.0% in 2021.
Total operating costs and
expenses were RMB2,612.9 million (US$378.8 million) for
2022, representing a decrease of 12.0% from RMB2,969.2 million in
2021.
-
Commission costs were RMB1,795.6 million (US$260.3
million) for 2022, representing a decrease of 15.1% from RMB2,115.2
million in 2021.
-
Commission costs for agency business were
RMB1,527.6 million (US$221.5 million) for 2022, representing a
decrease of 16.8% from RMB1,835.8 million in 2021.
-
Costs of the life insurance business were
RMB1,436.6 million (US$208.3 million) for 2022, representing a
decrease of 17.6% from RMB1,742.6 million 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 80.0% of our total commission costs in 2022, as
compared to 82.4% in 2021.
-
Costs of the P&C insurance business were
RMB91.0 million (US$13.2 million) for 2022, representing a decrease
of 2.4% from RMB93.2 million 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 5.1% of our total
commission costs in 2022, as compared to 4.4% in 2021.
- Costs
of claims adjusting business were RMB268.0 million
(US$38.9 million) for 2022, representing a decrease of 4.0% from
RMB279.3 million in 2021. Costs incurred by the claims adjusting
business accounted for 14.9% of our total commission costs in 2022,
as compared to 13.2% in 2021.
-
Selling expenses were RMB272.7 million (US$39.5
million) for 2022, representing a decrease of 11.0% from RMB306.5
million in 2021. The decrease was due to decreased sales events and
rental costs of our sales outlets, partially offset by increased
headcount in our Yuntong branches.
-
General and administrative expenses were RMB544.6
million (US$79.0 million) for 2022, representing a decrease of 0.5%
from RMB547.6 million in 2021. The decrease was mainly due to cost
savings from office expenses, partially offset by increased
headcount in our IT center.
As a result of the foregoing factors, we
recorded operating income of RMB168.7 million
(US$24.5 million) for 2022, representing a decrease of 44.1% from
RMB301.9 million in 2021.
Operating margin was 6.1% for
2022, compared to 9.2% in 2021.
Investment income was RMB17.8
million (US$2.6 million) for 2022, as compared to investment income
of RMB32.9 million in 2021. The investment income in 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 RMB41.0
million (US$5.9 million) for 2022, representing a decrease of 54.7%
from RMB90.6 million in 2021. The effective tax rate for 2022 was
20.9% compared with 24.4% in 2021.
Net income was RMB85.7 million
(US$12.4 million) for 2022, representing a decrease of 67.0% from
RMB259.9 million in 2021.
Net income attributable to the Company’s
shareholders was RMB100.3 million (US$14.5 million) for
2022, representing a decrease of 60.0% from RMB251.0 million in
2021.
Non-GAAP net income attributable to the
Company’s shareholders2, which excluded
impairment on investment in CNFinance and share-based compensation
expenses, was RMB179.0 million (US$26.0 million) for 2022,
representing a decrease of 36.1% from RMB280.3 million in 2021.
Net margin was 3.6% for 2022 as
compared to 7.7% in 2021.
Non-GAAP net margin4 was 6.4%
for 2022 as compared to 8.6% in 2021.
Basic and diluted net income per
ADS were RMB1.87 (US$0.27) and RMB1.87 (US$0.27) for 2022,
respectively, representing decreases of 60.0% and 60.0% from
RMB4.67 and RMB4.67 in 2021, respectively.
Non-GAAP
basic5 and diluted net income per
ADS3 were RMB3.33 (US$0.48) and RMB3.33
(US$0.48) for 2022, respectively, representing decreases of 36.2%
and 36.2% from RMB5.22 and RMB5.22 in 2021, respectively.
As of December 31, 2022, the Company had
RMB1,488.6 million (US$215.8million) in cash, cash
equivalents, short-term investments and others.
The amount included short term loans to third parties of RMB183.4
million as recorded in other receivables and an advance payment of
RMB390.0 million for the purchase of short-term investment products
as recorded in other current assets.
Fanhua’s Insurance Sales and Service
Distribution Network:
- As of
December 31, 2022, Fanhua had 141,088 registered sales agents7 as
compared with 284,053 as of December 31, 2021. Fanhua’s
distribution network consisted of 675 sales outlets in 24 provinces
and 99 services outlets in 31 provinces as of December 31, 2022,
compared with 771 sales outlets in 23 provinces and 109 service
outlets in 31 provinces as of December 31, 2021.
- The number of performing agents8 was 60,942 in 2022, compared
to 111,602 in 2021. Insurance premiums facilitated per performing
agent were RMB47,664 in 2022, representing a growth of 90.3%
year-over-year from RMB25,049 in 2021. The decrease in the number
of performing agents was primarily due to (i) slow down of new
recruits as a result of the impact of COVID-19 pandemic during the
year and the Company’s shifted focus to serving high-end customers
and high-performing agents and maintaining an elite-based agent
pool, and (ii) the high base in the first quarter of 2021 on strong
sales of critical illness products prior to the transition to the
new critical illness definition framework.
- The
number of performing agents for selling life insurance products in
2022 was 26,344 in 2022, compared to 53,322 in 2021. Insurance
premiums facilitated per performing agents for selling life
insurance products were RMB97,057 in 2022, representing a growth of
106.4% year-over-year from RMB47,033 in 2021.
Recent Developments
- As of
December 31, 2022, eHuzhu, our online mutual aid platform which
serves to provide alternative risk-protection programs to
lower-income group at more affordable costs, have over 1.8 million
paying members and assisted 11,046 families in raising
approximately RMB1.2 billion to cover their medical costs and help
them get through tough times.
- On
January 13th, 2023, Fanhua Insurance Sales & Service Group Co.,
Ltd., a subsidiary wholly owned by Fanhua, was awarded “Piloting
Insurance Intermediary of the Year” in the 3rd China Insurance
White Elephant List published by Insurance Today, a well-known
Chinese insurance trade media.
- On
January 9th, 2023, Fanhua Open Platform was listed among “Top 100
Insurance Technologies in China of 2022” by Molecular Laboratory, a
leading research institution of China’s insurance technology.
Business Outlook
Fanhua expects its operating income to be no
less than RMB30.0 million for the first quarter of 2023. 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 fourth quarter and fiscal year 2022 financial results
as per the following details.
Time: 9:00 p.m. Eastern Daylight Time on March 13, 2023 or 9:00
a.m. Beijing/Hong Kong Time on March 14, 2023
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/BI1f6414ce731248b190436eb44d1b011d
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/8w878j8d
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 December 31, 2022, our distribution and
service network consisted of 675 sales outlets covering 24
provinces, autonomous regions and centrally-administered
municipalities and 99 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 and share-based compensation expenses.
Non-GAAP net margin is defined as non-GAAP net income attributable
to the Company's shareholders 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 and share-based compensation expenses. 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 December 31, |
|
As of December 31, |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
|
RMB |
|
US$ |
|
ASSETS: |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash
equivalents |
564,624 |
|
567,525 |
|
82,283 |
|
Restricted
cash |
76,303 |
|
59,957 |
|
8,693 |
|
Short term
investments |
870,682 |
|
347,754 |
|
50,420 |
|
Accounts receivable,
net |
653,757 |
|
667,554 |
|
96,786 |
|
Other
receivables |
60,755 |
|
231,049 |
|
33,499 |
|
Other current
assets |
39,947 |
|
419,735 |
|
60,856 |
|
Total current
assets |
2,266,068 |
|
2,293,574 |
|
332,537 |
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Restricted bank deposit –
non-current |
15,595 |
|
20,729 |
|
3,005 |
|
Contract assets, net -
non-current |
192,114 |
|
385,834 |
|
55,941 |
|
Property, plant, and equipment,
net |
46,800 |
|
98,459 |
|
14,275 |
|
Goodwill and intangible assets,
net |
109,869 |
|
109,997 |
|
15,948 |
|
Deferred tax
assets |
18,728 |
|
20,402 |
|
2,958 |
|
Investment in
affiliates |
335,808 |
|
4,035 |
|
585 |
|
Other non-current
assets |
31,459 |
|
11,400 |
|
1,653 |
|
Right of use
assets |
225,677 |
|
145,086 |
|
21,036 |
|
Total non-current
assets |
976,050 |
|
795,942 |
|
115,401 |
|
Total
assets |
3,242,118 |
|
3,089,516 |
|
447,938 |
|
Current liabilities: |
|
|
|
|
|
|
Short-term loan |
— |
|
35,679 |
|
5,173 |
|
Accounts payable |
377,558 |
|
436,784 |
|
63,328 |
|
Insurance premium payables |
24,054 |
|
16,580 |
|
2,404 |
|
Other payables and accrued expenses |
178,157 |
|
174,326 |
|
25,275 |
|
Accrued payroll |
111,672 |
|
96,279 |
|
13,959 |
|
Income tax payable |
130,222 |
|
130,024 |
|
18,852 |
|
Current operating lease liability |
87,012 |
|
62,304 |
|
9,033 |
|
Total current liabilities |
908,675 |
|
951,976 |
|
138,024 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Accounts payable – non-current |
97,869 |
|
192,917 |
|
27,970 |
|
Other tax liabilities |
73,213 |
|
36,647 |
|
5,313 |
|
Deferred tax liabilities |
73,716 |
|
102,455 |
|
14,855 |
|
Non-current operating lease liability |
128,283 |
|
74,190 |
|
10,756 |
|
Total non-current liabilities |
373,081 |
|
406,209 |
|
58,894 |
|
Total liabilities |
1,281,756 |
|
1,358,185 |
|
196,918 |
|
|
|
|
|
|
|
|
Ordinary shares |
8,089 |
|
8,091 |
|
1,173 |
|
Treasury stock |
— |
|
(10 |
) |
(1 |
) |
Additional Paid-in capital |
— |
|
461 |
|
67 |
|
Statutory reserves |
557,221 |
|
559,520 |
|
81,123 |
|
Retained earnings |
1,311,715 |
|
1,087,984 |
|
157,743 |
|
Accumulated other comprehensive loss |
(39,140 |
) |
(32,643 |
) |
(4,733 |
) |
Total shareholders’ equity |
1,837,885 |
|
1,623,403 |
|
235,372 |
|
Non-controlling interests |
122,477 |
|
107,928 |
|
15,648 |
|
Total equity |
1,960,362 |
|
1,731,331 |
|
251,020 |
|
Total liabilities and equity |
3,242,118 |
|
3,089,516 |
|
447,938 |
|
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 Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
|
RMB |
|
USD |
|
RMB |
|
RMB |
|
US$ |
|
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
672,252 |
|
662,755 |
|
96,091 |
|
2,811,936 |
|
2,376,851 |
|
344,611 |
|
Life insurance
business |
642,456 |
|
627,479 |
|
90,976 |
|
2,679,720 |
|
2,237,312 |
|
324,380 |
|
P&C insurance
business |
29,796 |
|
35,276 |
|
5,115 |
|
132,216 |
|
139,539 |
|
20,231 |
|
Claims
adjusting |
130,377 |
|
104,610 |
|
15,167 |
|
459,178 |
|
404,763 |
|
58,685 |
|
Total net
revenues |
802,629 |
|
767,365 |
|
111,258 |
|
3,271,114 |
|
2,781,614 |
|
403,296 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
(430,735 |
) |
(428,707 |
) |
(62,157 |
) |
(1,835,825 |
) |
(1,527,572 |
) |
(221,477 |
) |
Life insurance
Business |
(411,121 |
) |
(406,188 |
) |
(58,892 |
) |
(1,742,640 |
) |
(1,436,606 |
) |
(208,288 |
) |
P&C insurance
Business |
(19,614 |
) |
(22,519 |
) |
(3,265 |
) |
(93,185 |
) |
(90,966 |
) |
(13,189 |
) |
Claims
adjusting |
(74,160 |
) |
(65,702 |
) |
(9,526 |
) |
(279,342 |
) |
(268,031 |
) |
(38,861 |
) |
Total operating costs |
(504,895 |
) |
(494,409 |
) |
(71,683 |
) |
(2,115,167 |
) |
(1,795,603 |
) |
(260,338 |
) |
Selling
expenses |
(77,111 |
) |
(61,754 |
) |
(8,953 |
) |
(306,463 |
) |
(272,706 |
) |
(39,539 |
) |
General and administrative
expenses |
(138,287 |
) |
(126,309 |
) |
(18,313 |
) |
(547,579 |
) |
(544,630 |
) |
(78,964 |
) |
Total operating costs and
expenses |
(720,293 |
) |
(682,472 |
) |
(98,949 |
) |
(2,969,209 |
) |
(2,612,939 |
) |
(378,841 |
) |
Income from
operations |
82,336 |
|
84,893 |
|
12,309 |
|
301,905 |
|
168,675 |
|
24,455 |
|
Other income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income |
7,510 |
|
8,765 |
|
1,271 |
|
32,898 |
|
17,809 |
|
2,582 |
|
Interest
income |
1,461 |
|
3,899 |
|
565 |
|
2,971 |
|
13,674 |
|
1,983 |
|
Others, net |
9,203 |
|
(12,743 |
) |
(1,848 |
) |
33,314 |
|
(3,823 |
) |
(554 |
) |
Income from operations before income taxes and share income
of affiliates |
100,510 |
|
84,814 |
|
12,297 |
|
371,088 |
|
196,335 |
|
28,466 |
|
Income tax
expense |
(32,668 |
) |
(18,465 |
) |
(2,677 |
) |
(90,574 |
) |
(41,016 |
) |
(5,947 |
) |
Share of income (loss) and impairment of affiliates, net
|
(49,386 |
) |
(841 |
) |
(122 |
) |
(20,573 |
) |
(69,596 |
) |
(10,090 |
) |
Net
income |
18,456 |
|
65,508 |
|
9,498 |
|
259,941 |
|
85,723 |
|
12,429 |
|
Less: net income attributable to non-controlling
interests |
7,507 |
|
(5,108 |
) |
(741 |
) |
8,952 |
|
(14,549 |
) |
(2,109 |
) |
Net income attributable to the Company’s
shareholders |
10,949 |
|
70,616 |
|
10,239 |
|
250,989 |
|
100,272 |
|
14,538 |
|
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 Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.01 |
|
0.07 |
|
0.01 |
|
0.23 |
|
0.09 |
|
0.01 |
|
Diluted |
0.01 |
|
0.07 |
|
0.01 |
|
0.23 |
|
0.09 |
|
0.01 |
|
Net income per ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.20 |
|
1.31 |
|
0.19 |
|
4.67 |
|
1.87 |
|
0.27 |
|
Diluted |
0.20 |
|
1.31 |
|
0.19 |
|
4.67 |
|
1.87 |
|
0.27 |
|
Shares used in calculating net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1,073,891,784 |
|
1,074,204,304 |
|
1,074,204,304 |
|
1,073,891,784 |
|
1,074,196,310 |
|
1,074,196,310 |
|
Diluted |
1,074,291,118 |
|
1,075,017,689 |
|
1,075,017,689 |
|
1,074,291,194 |
|
1,074,457,821 |
|
1,074,457,821 |
|
Net
income |
18,456 |
|
65,508 |
|
9,498 |
|
259,941 |
|
85,723 |
|
12,429 |
|
Other comprehensive income, net of tax: Foreign currency
translation adjustments |
(1,148 |
) |
(1,018 |
) |
(148 |
) |
(9,116 |
) |
3,728 |
|
541 |
|
Share of other comprehensive (loss) gain of affiliates |
(982 |
) |
— |
|
— |
|
(1,281 |
) |
4,688 |
|
680 |
|
Unrealized net gains on available-for-sale investments |
4,477 |
|
(3,157 |
) |
(458 |
) |
6,252 |
|
(1,919 |
) |
(278 |
) |
Comprehensive
income |
20,803 |
|
61,333 |
|
8,892 |
|
255,796 |
|
92,220 |
|
13,372 |
|
Less: Comprehensive income attributable to the non-controlling
interests |
7,507 |
|
(5,108 |
) |
(741 |
) |
8,952 |
|
(14,549 |
) |
(2,109 |
) |
Comprehensive income
attributable to the Company’s shareholders |
13,296 |
|
66,441 |
|
9,633 |
|
246,844 |
|
106,769 |
|
15,481 |
|
FANHUA INC.
Unaudited Condensed Consolidated
Statements of Cash Flow (In
thousands, except for shares and per share
data)
|
For the Three Months Ended |
|
For theTwelveMonths
Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
18,456 |
|
65,508 |
|
9,498 |
|
259,941 |
|
85,723 |
|
12,429 |
|
Adjustments to
reconcile net income to net cash generated from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
(8 |
) |
(8,006 |
) |
(1,161 |
) |
(3,171 |
) |
(10,937 |
) |
(1,586 |
) |
Share of income of
affiliates |
49,386 |
|
841 |
|
122 |
|
20,573 |
|
69,596 |
|
10,090 |
|
Other non-cash
adjustments |
137,079 |
|
54,511 |
|
7,904 |
|
142,848 |
|
169,587 |
|
24,587 |
|
Changes in operating assets
and liabilities |
(136,796 |
) |
42,063 |
|
6,097 |
|
(293,993 |
) |
(176,217 |
) |
(25,548 |
) |
Net cash generated
from operating activities |
68,117 |
|
154,917 |
|
22,460 |
|
126,198 |
|
137,752 |
|
19,972 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of short-term
investments |
(929,353 |
) |
(556,540 |
) |
(80,691 |
) |
(8,184,363 |
) |
(2,550,300 |
) |
(369,759 |
) |
Proceeds from disposal of
short-term investments |
847,702 |
|
751,694 |
|
108,985 |
|
8,646,532 |
|
3,239,556 |
|
469,691 |
|
Prepayment for acquisition of
short-term investments |
— |
|
(200,000 |
) |
(28,997 |
) |
— |
|
(540,000 |
) |
(78,293 |
) |
Cash lent to third
parties |
— |
|
— |
|
— |
|
— |
|
(205,800 |
) |
(29,838 |
) |
Repayment of loan receivables
from a third party |
6,830 |
|
4,500 |
|
652 |
|
6,830 |
|
24,500 |
|
3,552 |
|
Others |
(8,568 |
) |
(1,271 |
) |
(183 |
) |
(18,600 |
) |
(95,518 |
) |
(13,848 |
) |
Net cash generated
from (used in) investing activities |
(83,389 |
) |
(1,617 |
) |
(234 |
) |
450,399 |
|
(127,562 |
) |
(18,495 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
(51,092 |
) |
— |
|
— |
|
(242,518 |
) |
(52,069 |
) |
(7,549 |
) |
Repurchase of ordinary shares
from open market |
— |
|
(3,984 |
) |
(578 |
) |
— |
|
(3,984 |
) |
(578 |
) |
Borrowing |
— |
|
35,679 |
|
5,173 |
|
— |
|
35,679 |
|
5,173 |
|
Dividend distributed to
non-controlling interest |
— |
|
— |
|
— |
|
(7,580 |
) |
— |
|
— |
|
Others |
— |
|
— |
|
— |
|
(10,200 |
) |
3 |
|
— |
|
Net cash provided
(used) in financing activities |
(51,092 |
) |
31,695 |
|
4,595 |
|
(260,298 |
) |
(20,371 |
) |
(2,954 |
) |
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
(66,364 |
) |
184,995 |
|
26,821 |
|
316,299 |
|
(10,181 |
) |
(1,477 |
) |
Cash, cash equivalents
and restricted cash at beginning of period |
724,099 |
|
462,837 |
|
67,105 |
|
350,098 |
|
656,522 |
|
95,187 |
|
Effect of exchange rate changes on cash and cash equivalents |
(1,213 |
) |
379 |
|
55 |
|
(9,875 |
) |
1,870 |
|
271 |
|
Cash, cash equivalents and restricted cash at end of
period |
656,522 |
|
648,211 |
|
93,981 |
|
656,522 |
|
648,211 |
|
93,981 |
|
FANHUA
INC.Reconciliations of GAAP Financial Measures to
Non-GAAP Financial Measures (In RMB in thousands,
except shares and per share data)
|
|
|
For Three Months Ended December 31 |
|
|
|
|
2021 |
|
2022 |
|
|
GAAP |
|
Impairment on investment in affiliates |
|
Share-based
compensationexpenses |
|
Non-GAAP |
|
GAAP |
|
Impairment on investment in affiliates |
|
Share-based
compensation expenses |
|
Non-GAAP |
|
Change% |
|
Net revenues |
802,629 |
|
— |
|
— |
|
802,629 |
|
767,365 |
|
— |
|
— |
|
767,365 |
|
(4.4 |
) |
General and administrative
expense |
(138,287 |
) |
— |
|
— |
|
(138,287 |
) |
(126,309 |
) |
— |
|
(299 |
) |
(126,010 |
) |
(8.9 |
) |
Income from operations |
82,336 |
|
— |
|
— |
|
82,336 |
|
84,893 |
|
— |
|
(299 |
) |
85,192 |
|
3.5 |
|
Operating margin |
10.3 |
% |
|
|
|
|
10.3 |
% |
11.1 |
% |
|
|
|
|
11.1 |
% |
7.8 |
|
Share of income (loss) and
impairment of affiliates, net |
(49,386 |
) |
(29,316 |
) |
|
|
(20,070 |
) |
(841 |
) |
— |
|
— |
|
(841 |
) |
(95.8 |
) |
Net income attributable to the
Company’s shareholders |
10,949 |
|
(29,316 |
) |
— |
|
40,265 |
|
70,616 |
|
|
|
(299 |
) |
70,915 |
|
76.1 |
|
Net margin |
1.4 |
% |
|
|
|
|
5.0 |
% |
9.2 |
% |
|
|
|
|
9.2 |
% |
84.0 |
|
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.01 |
|
— |
|
— |
|
0.04 |
|
0.07 |
|
— |
|
— |
|
0.07 |
|
75.0 |
|
Diluted |
0.01 |
|
— |
|
— |
|
0.04 |
|
0.07 |
|
— |
|
— |
|
0.07 |
|
75.0 |
|
Net income per
ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.20 |
|
— |
|
— |
|
0.75 |
|
1.31 |
|
— |
|
— |
|
1.32 |
|
76.0 |
|
Diluted |
0.20 |
|
— |
|
— |
|
0.75 |
|
1.31 |
|
— |
|
— |
|
1.32 |
|
76.0 |
|
Shares used in calculating net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1,073,891,784 |
|
— |
|
— |
|
1,073,891,784 |
|
1,074,204,304 |
|
— |
|
— |
|
1,074,204,304 |
|
— |
|
Diluted |
1,074,291,118 |
|
— |
|
— |
|
1,074,291,118 |
|
1,075,017,689 |
|
— |
|
— |
|
1,075,017,689 |
|
— |
|
|
|
|
For The Twelve Months Ended December 31 |
|
|
|
|
2021 |
|
2022 |
|
|
GAAP |
|
Impairment on investment in affiliates |
|
Share-basedCompensation
expenses |
|
Non-GAAP |
|
GAAP |
|
Impairment on investment in affiliates |
|
Share-based compensation expenses |
|
Non-GAAP |
|
Change% |
|
Net revenues |
3,271,114 |
|
— |
|
— |
|
3,271,114 |
|
2,781,614 |
|
— |
|
— |
|
2,781,614 |
|
(15.0 |
) |
General and administrative
expenses |
(547,579 |
) |
— |
|
— |
|
(547,579 |
) |
(544,630 |
) |
— |
|
(461 |
) |
(544,169 |
) |
(0.6 |
) |
Income from operations |
301,905 |
|
— |
|
— |
|
301,905 |
|
168,675 |
|
— |
|
(461 |
) |
169,136 |
|
(44.0 |
) |
Operating margin |
9.2 |
% |
|
|
|
|
9.2 |
% |
6.1 |
% |
|
|
|
|
6.1 |
% |
(33.7 |
) |
Share of income and impairment
of affiliates, net |
(20,573 |
) |
(29,316 |
) |
— |
|
8,743 |
|
(69,596 |
) |
(78,277 |
) |
— |
|
8,681 |
|
(0.7 |
) |
Net income attributable to the
Company’s shareholders |
250,989 |
|
(29,316 |
) |
— |
|
280,305 |
|
100,272 |
|
(78,277 |
) |
(461 |
) |
179,010 |
|
(36.1 |
) |
Net margin |
7.7 |
% |
|
|
|
|
8.6 |
% |
3.6 |
% |
|
|
|
|
6.4 |
% |
(25.6 |
) |
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.23 |
|
— |
|
— |
|
0.26 |
|
0.09 |
|
|
— |
|
0.17 |
|
(34.6 |
) |
Diluted |
0.23 |
|
— |
|
— |
|
0.26 |
|
0.09 |
|
|
— |
|
0.17 |
|
(34.6 |
) |
Net income per
ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
4.67 |
|
— |
|
— |
|
5.22 |
|
1.87 |
|
|
— |
|
3.33 |
|
(36.2 |
) |
Diluted |
4.67 |
|
— |
|
— |
|
5.22 |
|
1.87 |
|
|
— |
|
3.33 |
|
(36.2 |
) |
Shares used in calculating net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1,073,891,784 |
|
— |
|
— |
|
1,073,891,784 |
|
1,074,196,310 |
|
— |
|
|
1,074,196,310 |
|
— |
|
Diluted |
1,074,291,194 |
|
— |
|
— |
|
1,074,291,194 |
|
1,074,457,821 |
|
— |
|
|
1,074,457,821 |
|
— |
|
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 RMB6.8972 to US$1.00, the effective noon
buying rate as of December 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 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 and share-based compensation expenses.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 The amount includes short term loans to third
parties of RMB183.4 million as recorded in other receivables and an
advance payment of RMB390.0 million for the purchase of short-term
investment products as recorded in other current assets.5 Non-GAAP
net margin is defined as non-GAAP net income attributable to the
Company's shareholders as a percentage of net revenues6 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.
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 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.7 Registered agents refer to agents
who have completed practice registration with the CBIRC’s Insurance
Intermediaries Regulatory Information System. 8 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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