Fanhua Announces Completion of Share Option Cash Exercises by Key Employees
July 23 2024 - 8:43AM
Fanhua Inc. (Nasdaq: FANH) (the “Company” or “Fanhua”), a leading
independent technology-driven financial services provider in China,
today announced that all share options previously granted to its
key employees by the Board of Directors (the “Board”) have recently
been fully exercised through cash payment at an exercise price of
US$1.92 per American Depository Share (“ADS”), representing a
premium of approximately 21.4% from the Company’s closing price on
the last trading day prior to the cash exercise. This move not only
highlights its key employees’ strong confidence in the Company’s
future development but also demonstrates their commitment to
growing with the company and sharing in its success.
As previously disclosed, on July 2, 2024 the
Board authorized the issuance of share options to purchase up to
138,000,000 ordinary shares (“shares”), representing 6,900,000 ADSs
of the Company, to 15 management team members of the Company’s
major subsidiaries, to align their interests with the long-term
success of the Company. Upon cash exercise of the share options,
these key employees collectively held approximately 10.8% of the
Company’s shares. The Company offered several of these key
employees a loan at an interest rate of 3% per annum to facilitate
the exercise of the share options. They also committed to serving
the Company for no less than three years.
Mr. Yinan Hu, founder and Chief Executive
Officer of Fanhua, remarked: “Our core management team members have
exercised their share options at a premium, fully demonstrating
their confidence in the Company’s long-term growth and business
value. The Company currently has over RMB1.4 billion in net cash,
representing approximately $3.2 in net cash per ADR, which is much
higher than the current stock price of Fanhua. Our strong cash
reserves not only further enhance our financial resilience and
market competitiveness but also provide strong support for the
effective implementation of the Company’s strategic initiatives,
ensuring that we continue to maintain a leading position in future
development. We believe that with the joint efforts of all
employees, the Company will achieve greater growth and create more
value for our shareholders in the long run.”
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.
For more information, please
contact:
Fanhua Inc.Investor
RelationsTel: +86 (20) 8388-3191Email: ir@fanhgroup.com
Source: Fanhua Inc.
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