GUANGZHOU, China, July 8, 2024
/PRNewswire/ -- Fanhua Inc. (Nasdaq: FANH) (the "Company" or
"Fanhua"), a leading independent technology-driven financial
services provider in China, today
announced that its board of directors (the "Board") has
authorized the expansion of the Company's share repurchase program
by an additional US$20 million,
bringing the total authorized amount of share repurchase to
US$40 million. The share repurchase
program was intended to enhance shareholder returns and signals the
Company's confidence in its long-term growth prospects.
As of June 30, 2024, approximately
726,616 American Depository Shares had been repurchased at an
aggregate purchase price of approximately US$5.4 million since the inception of the share
repurchase program in December
2022.
Alongside the Company's expansion of the share repurchase
program, several of Fanhua's senior executives including Mr.
Yinan Hu, founder and Chief
Executive Officer, Mr. Peng Ge, Chief Financial Officer, and Mr.
Ben Lin, Chief Strategy Officer, and
Mr. Allen Lueth, independent
director and chairman of the Audit Committee of the Board, have
indicated that they will increase their personal shareholdings of
Fanhua. Over the next 12 months, they intend to purchase up to
US$5 million worth of shares of
Fanhua.
The share repurchases will be made from time to time in the open
market at prevailing market prices and/or in privately negotiated
transactions, depending on market conditions and in accordance with
applicable rules and regulations and the Company's insider trading
policy. Fanhua plans to fund the corporate share repurchase program
with its available cash reserve while the senior executives and
director will use their personal funds.
Commenting on the expanded share repurchase program and
management share buyback, Mr. Yinan
Hu, founder and Chief Executive Officer of Fanhua, said,
"The Board's authorization to expand the share repurchase program
demonstrates its confidence in our strategic plan for long-term
growth and commitment to shareholder value. We firmly believe that
the current stock price is significantly undervalued, as the stock
trades at a substantial discount to our net cash value and net
asset value and fails to reflect our long-term growth
potential."
"While the implementation of the commission cap since the second
quarter of 2024 has posed significant challenges to the insurance
intermediary industry in China,
causing short-term fluctuations in our stock price, we believe the
market is gradually adapting to these changes, and a new balance is
forming. We remain confident in the robust prospects of
China's insurance industry.
Insurance assets, as defensive assets, will continue to grow, and
insurance intermediaries, as independent third parties, possess
unique advantages, serving as indispensable sales channels for both
insurance companies and consumers. The deep integration of
technology, particularly advancements in artificial intelligence,
will drive down consumer acquisition costs, improve operational
efficiency, and become a powerful catalyst for industry growth.
He continued, "In response to the rapid changes in the industry,
we have implemented proactive and effective measures to maintain
stable operations. Bolstered by our strong cash generation
capabilities, our balance sheet remains robust, providing us with
significant financial flexibility to execute our growth strategies
for sustainable long-term growth. Additionally, we have made
notable progress in our intelligent strategic upgrades. Our AI
agent 'Du Xiaobao,' developed in collaboration with Baidu Smart
Cloud, will officially launch in August. This innovation is
expected to significantly enhance our customer service capabilities
and operational efficiency, further solidifying our leading
position and continuously creating value for our shareholders."
"Our decision to invest personal funds in Fanhua reflects our
strong belief in the company's future and our dedication to driving
sustainable growth. We are confident in our strategic direction and
are committed to delivering long-term value to our shareholders."
said Mr. Hu.
About Highest Performances Holdings Inc. (NASDAQ:
HPH)
HPH was founded in 2010 with the aim of becoming a top provider
of smart home and enterprise services. Its mission is to improve
the quality of life for families worldwide, focusing on two main
driving forces: "technological intelligence" and "capital
investments."HPH has a global strategic perspective and identifies
high-quality enterprises with global potential for investment and
operations. Its areas of focus include asset allocation, education
and study tours, cultural tours, sports events, healthcare and
elderly care and family governance.
HPH currently holds controlling interests in two leading
financial service providers in China, namely Fanhua Inc., a technology-driven
platform, and Fanhua Puyi Fund Distribution Co., Ltd., an
independent wealth management service provider.
Highest Performances Holdings Inc., formerly known as Puyi Inc.,
was renamed on March 13, 2024 to
reflect its strategic transformation.
About Fanhua
Established in Guangzhou in
1998 and listed on NASDAQ in 2007 (Nasdaq: FANH), Fanhua is a
leading independent financial services provider in China with
strong technology capabilities and a commitment to empowering
financial advisors and fostering sustained value creation for
customers.
Our mission revolves around creating an inclusive and
collaborative platform for independent financial advisors, as well
as various insurance/financial sales organizations, enabling our
partners to optimize their practices by offering them end-to-end
business solutions spanning compliance, technology, products,
services, operations, capital flow, and professional training.
Leveraging advanced technology, artificial intelligence, and
data-driven insights, Fanhua is at the forefront of revolutionizing
financial services delivery, accelerating digital transformation,
and driving industry growth.
With a comprehensive approach to financial services, we connect
millions of Chinese families with various financial institutions
and service providers, offering a diverse range of opportunities
and personalized solutions for insurance protection, retirement
planning, health management, asset management, and family
governance services, covering the full lifecycle of our customers'
needs.
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
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 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.
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SOURCE Highest Performances Holdings Inc.