GUANGZHOU, China, Nov. 20, 2017 (GLOBE NEWSWIRE) -- Fanhua Inc., (Nasdaq:FANH), (the "Company" or "Fanhua"), a
leading independent online-to-offline ("O2O") financial services provider in China, today announced its unaudited financial results
for the third quarter ended September 30, 20171 and declared quarterly Dividend.
Financial Highlights for the Third Quarter of 2017:
| |
|
|
|
|
| (In
thousands, except per ADS) |
2016Q3
（RMB） |
2017Q3
(RMB) |
2017Q3
(US$) |
Change
% |
| Total net
revenues |
1,192,242 |
1,077,278 |
161,916 |
-9.6 |
| Operating
income |
7,524 |
83,200 |
12,505 |
1,005.8 |
| Net income
attributable to the Company’s shareholders |
32,093 |
112,268 |
16,874 |
249.8 |
| Diluted net
income per ADS |
0.53 |
1.77 |
0.27 |
234.0 |
| |
|
|
|
|
Quarterly Dividend:
On November 19, 2017, Fanhua's Board of Directors declared a quarterly dividend of US$0.01 per ordinary share,
or US$0.20 per ADS, amounting to a total of US$12.7 million, which represents 75.3% of the Company's net income attributable to
shareholders for the third quarter of 2017. The dividend will be payable on or around December 22, 2017 to shareholders of record
on December 10, 2017.
Commenting on the third quarter 2017 financial results, Mr. Chunlin Wang, chairman and chief executive officer
of Fanhua, stated, "We are glad that the strong growth momentum in our life insurance business continued into the third quarter of
2017, with the total first year premiums on life insurance business growing by 197.5% year over year to RMB851 million.
"Driven by the accelerated growth of life insurance business, we beat our prior guidance with RMB83.2 million
operating income for the third quarter of 2017, which also means that we've exceeded our full year target of RMB180 million
operating income, three months ahead of schedule. Our net income attributable to shareholders grew by 249.8% year-over-year to
RMB112.3million, providing for a strong base on which to initiate our quarterly dividend policy.
"In view of the impact of a new regulation on product design taking effect on October 1, 2017 and the industry
norm whereby all life insurance companies and distributors will focus on preparing for 2018 open year sales in the fourth quarter
of 2017, we expect that our life insurance business will slow down quarter-over-quarter but we are still optimistic about achieving
no less than RMB60 million operating income for the fourth quarter of 2017."
Financial Results for the Third Quarter of 2017
Total net revenues were RMB1.1 billion (US$161.9 million) for the third quarter of 2017,
representing a decrease of 9.6% from RMB1.2 billion for the corresponding period in2016.
- Net revenues for the life insurance business were RMB730.5 million (US$109.8 million) for the third quarter
of 2017, representing an increase of 177.5% from RMB263.2 million for the corresponding period in 2016. The increase was due to
the growth in the number of sales agents. Revenues generated from our life insurance business accounted for 67.8% of our total
net revenues in the third quarter of 2017.
- Net revenues for the P&C insurance business were RMB274.1 million (US$41.2 million) for the third
quarter of 2017, representing a decrease of 67.5% from RMB844.3 million for the corresponding period in 2016. The decrease was
primarily due to i) the suspension of business cooperation with PICC Property and Casualty Company Limited ("PICC P&C")
starting from March 1, 2017; and ii) our efforts to spin off lower margin channel businesses starting from the second quarter of
2017. Revenues generated from the P&C insurance business accounted for 25.5% of our total net revenues in the third quarter
of 2017.
- Net revenues for the claims adjusting business were RMB72.7 million (US$10.9 million) for the third quarter
of 2017, representing a decrease of 14.2% from RMB84.7 million for the corresponding period in 2016. Revenues generated from the
claims adjusting business accounted for 6.7% of our total net revenues in the third quarter of 2017.
Total operating costs and expenses were RMB994.1 million (US$149.4 million) for the third
quarter of 2017, representing a decrease of 16.1% from RMB1,184.7 million for the corresponding period in 2016.
- Commission costs were RMB791.5 million (US$119.0 million) for the third quarter of 2017, representing a
decrease of 13.3% from RMB912.5 million for the corresponding period in 2016.
• Costs of the life insurance business were RMB511.4 million (US$76.9 million) for the third quarter of 2017,
representing an increase of 181.2% from RMB181.9 million for the corresponding period in 2016. The increase was in line with the
growth in sales. Costs incurred by the life insurance business accounted for 64.6% of our total commission costs in the third
quarter of 2017.
• Costs of the P&C insurance business were RMB236.6 million (US$35.6 million) for the third quarter of
2017, representing a decrease of 65.3% from RMB681.7 million for the corresponding period in 2016. The decrease was primarily in
line with the decline in channel businesses. Costs incurred by the P&C insurance business accounted for 29.9% of our total
commission costs in the third quarter of 2017.
• Costs of claims adjusting business were RMB43.5 million (US$6.5 million) for the third quarter of 2017,
representing a decrease of 10.8% from RMB48.8 million for the corresponding period in 2016. Costs incurred by the claims
adjusting business accounted for 5.5% of our total commission costs in the third quarter of 2017.
- Selling expenses were RMB54.3million (US$8.2 million) for the third quarter of 2017, representing a decrease
of 64.8% from RMB154.1 million for the corresponding period in 2016. The decrease was primarily because promotional marketing
expenses were paid to sales agents in the third quarter of 2016 while there was no such promotional marketing plan in 2017.
- General and administrative expenses were RMB148.3million (US$22.3 million) for the third quarter of 2017,
representing an increase of 25.5% from RMB118.2 million for the corresponding period in 2016. The increase was primarily due to
an increase in expenses incurred for setting up new offices and staff recruitment as a result of regional expansion.
As a result of the preceding factors, we had an operating income of RMB83.2 million
(US$12.5million) for the third quarter of 2017, representing an increase of 1,005.8% from RMB7.5 million for the corresponding
period in 2016.
Operating margin was 7.7% for the third quarter of 2017, compared to 0.6% for the corresponding
period in 2016.
Investment income was RMB44.0 million (US$6.6 million) for the third quarter of 2017,
representing an increase of 139.5% from RMB18.4 million for the corresponding period in 2016. The investment income represented
yields from short-term investments in financial products which mainly consist of inter-bank deposits or collective trust products
with terms ranging from half a year to two years and interest payable on a quarterly, semi-annual or annual basis. Our investment
income fluctuates from quarter to quarter because investment income is recognized when received.
Interest income was RMB11.0 million (US$1.7 million) for the third quarter of 2017,
representing an increase of 49 times from RMB0.2 million for the corresponding period in 2016, primarily due to interest related to
amounts due from Sincere Fame International Limited ("Sincere Fame") and Shenzhen Chuangjia Investment Limited Partnership, which
beneficially owns 84.6% of Fanhua Puyi Fund Sales Limited.
Income tax expense was RMB50.3 million (US$7.6 million) for the third quarter of 2017,
representing an increase of 773.2% from RMB5.8 million for the corresponding period in 2016. The effective tax rate for the third
quarter of 2017 was 36.0% compared with 20.2% for the corresponding period in 2016. The increase in effective tax rate was
primarily due to the provided deferred income tax pursuant to dividend payments in the third quarter of 2017.
Share of income of affiliates was RMB24.1 million (US$3.6 million) for the third quarter of
2017, representing an increase of 84.2% from RMB13.1 million for the corresponding period in 2016, mainly attributable to an
increase of profits from Sincere Fame, a company in which we own 20.6% of the equity interest.
Net income attributable to the Company's shareholders was RMB112.3 million (US$16.9 million)
for the third quarter of 2017, representing an increase of 249.8% from RMB32.1 million for the corresponding period in 2016.
Net margin was 10.4% for the third quarter of 2017 compared with 2.7% for the corresponding
period in 2016.
Basic and diluted net income per ADS were RMB1.80 (US$0.27) and RMB1.77 (US$0.27) for the third
quarter of 2017, respectively, representing increases of 227.3% and 234.0% from RMB0.55 and RMB0.53 for the corresponding period in
2016.
As of September 30, 2017, the Company had RMB2.7 billion (US$400.0 million) in cash, cash equivalents and short term
investments.
Key Operational Metrics for Fanhua's Online Initiatives for the Third Quarter of 2017:
- CNpad Mobile Application("CNpad App") - Our proprietary mobile sales support system:
• CNpad App had been downloaded and activated 333,595 times as of September 30, 2017, representing an
increase of 101.4% from 165,638 times as of September 30, 2016;
• The number of active users2 of CNpad App3 was 99,828 in the third quarter of 2017,
representing an increase of 91.9% from 52,011 in the third quarter of 2016:
- The number of active users of CNpad Auto Insurance App was 57,974 in the third quarter of 2017,
representing an increase of 60.1% from 36,219 in the third quarter of 2016;
- The number of active users of CNpad Life Insurance App was 50,056 in the third quarter of 2017,
representing an increase of 160.7% from 19,204 in the third quarter of 2016;
• Insurance premiums generated through CNpad App were RMB1,356.7 million (US$203.9 million) in the third
quarter of 2017, representing an increase of 39.0% from RMB976.1 million for the corresponding period of 2016 and accounted for
55.9% of our total insurance premiums in the third quarter of 2017 as compared to 26.6% for the corresponding period of 2016.
- eHuzhu - Our online non-profit mutual aid platform:
• The number of registered members was 2.2 million as of September 30, 2017, representing an increase of 110.4% from 1.1
million as of September 30, 2016.
- Baoxian.com - Our online insurance platform:
• The number of registered customer accounts was 1.2 million as of September 30, 2017, representing
an increase of 155.6% from approximately 493,000 as of September 30, 2016.
• The number of active customer accounts4 was 70,765 in the third quarter of 2017, representing an
increase of 32.6% from53,386 in the corresponding period of 2016;
• Insurance premiums generated on or through Baoxian.com was RMB114.9 million (US$17.3 million) in the third
quarter of 2017, representing an increase of 492.3% from RMB19.4 million in the corresponding period of 2016.
Recent Development
- Fanhua Inc. was ranked No. 17 in the annual ranking of global brokers, according to the July 2017 edition of Best's Review
published by A. M. Best, based on 2016 total revenue. The ranking moved up three places from No. 20 in the previous year. Fanhua
has been ranked among top 20 global insurance brokers for three consecutive years.
- As of September 30, 2017, Fanhua had 413,946 sales agents and 1,264 professional claims, compared with 190,261 sales agents
and 1,347 claims adjustors as of September 30, 2016. As of September 30, 2017, Fanhua's distribution network consisted of 897
sales outlets in 21 provinces and 156 services outlets in 29 provinces, compared with 608 sales outlets in 21 provinces and 153
service outlets in 29 provinces.
- On September 6, 2017, Fanhua has signed a Headquarter-to-Headquarter Strategic Cooperation Agreement with Pramerica Fosun
Life Insurance Limited, pursuant to which both parties will engage in a deep and comprehensive cooperation in a wide range of
areas including product sales, technology service and product design.
Business Outlook
Fanhua expects its operating income to be no less than RMB60.0 million for the four quarter of 2017. This
forecast reflects Fanhua's current view, which is subject to change.
Conference Call
The Company will host a conference call to discuss its third quarter 2017 financial results as per the following
details.
| |
| Time: 20:00 PM Eastern Daylight Time on November 20, 2017 |
| or 9:00 AM Beijing/Hong Kong Time on November 21, 2017 |
| |
| The toll free dial-in numbers: |
| United States |
1-855-500-8701 |
| United Kingdom |
0800-015-9724 |
| France |
0800-918-648 |
| Germany |
0800-184-4876 |
| Australia |
1-300-713-759 |
| Canada |
1-855-757-1565 |
| Taiwan |
0080-665-1951 |
| Hong Kong |
800-906-606 |
| |
|
| The toll dial-in numbers: |
|
| China (Mainland) |
400-120-0654 |
| Singapore & Other Areas |
+65-6713-5440 |
| |
|
| Conference ID #: |
4795899 |
| |
|
Additionally, a live and archived web cast of this call will be available at: http://ir.cninsure.net/events.cfm
About Fanhua Inc.
Fanhua Inc. is a leading independent online-to-offline 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 and businesses,
including property and casualty and life insurance products. We also provide insurance claims adjusting services, such as damage
assessments, surveys, authentications and loss estimations.
Our online platforms include (1) CNpad, a mobile sales support application, (2) Baoxian.com, an online entry
portal for comparing and purchasing health, accident, travel and homeowner insurance products; and (3) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.
As of September 30, 2017, our distribution and service network is consisted of 1,012 sales and service outlets
covering 29 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 and their potential impact on the sales of
insurance products. All information provided in this press release is 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, |
|
| |
2016 |
|
|
2017 |
|
|
2017 |
|
| |
RMB |
|
|
RMB |
|
|
US$ |
|
| ASSETS: |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
240,242 |
|
|
397,191 |
|
|
59,698 |
|
| Restricted cash |
33,737 |
|
|
92,704 |
|
|
13,934 |
|
| Short term investments |
2,797,842 |
|
|
2,264,100 |
|
|
340,297 |
|
| Accounts receivable, net |
502,975 |
|
|
767,955 |
|
|
115,425 |
|
| Insurance premium receivables |
187 |
|
|
1,951 |
|
|
293 |
|
| Other receivables |
49,186 |
|
|
587,467 |
|
|
88,297 |
|
| Amounts due from related parties |
32,495 |
|
|
280,472 |
|
|
42,155 |
|
| Other current assets |
37,900 |
|
|
53,406 |
|
|
8,027 |
|
| |
3,694,564 |
|
|
4,445,246 |
|
|
668,126 |
|
| Total current assets |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Non-current assets: |
|
|
|
|
|
|
|
|
| Property, plant, and equipment, net |
31,414 |
|
|
35,032 |
|
|
5,265 |
|
| Goodwill and intangible assets, net |
181,549 |
|
|
156,116 |
|
|
23,464 |
|
| Deferred tax assets |
8,277 |
|
|
32,511 |
|
|
4,886 |
|
| Investment in affiliates |
294,576 |
|
|
348,671 |
|
|
52,406 |
|
| Other non-current assets |
28,188 |
|
|
28,189 |
|
|
4,237 |
|
| Total non-current assets |
544,004 |
|
|
600,519 |
|
|
90,258 |
|
| Total assets |
4,238,568 |
|
|
5,045,765 |
|
|
758,384 |
|
| |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable |
278,188 |
|
|
566,229 |
|
|
85,105 |
|
| Insurance premium payables |
5,491 |
|
|
10,558 |
|
|
1,587 |
|
| Other payables and accrued expenses |
314,051 |
|
|
223,247 |
|
|
33,554 |
|
| Accrued payroll |
59,201 |
|
|
83,577 |
|
|
12,562 |
|
| Income tax payable |
90,188 |
|
|
152,523 |
|
|
22,924 |
|
| Dividend payable |
— |
|
|
14,754 |
|
|
2,218 |
|
| Total current liabilities |
747,119 |
|
|
1,050,888 |
|
|
157,950 |
|
| |
|
|
|
|
|
|
|
|
| Non-current liabilities: |
|
|
|
|
|
|
|
|
| Other tax liabilities |
72,778 |
|
|
72,612 |
|
|
10,913 |
|
| Deferred tax liabilities |
14,577 |
|
|
22,048 |
|
|
3,313 |
|
| Total non-current liabilities |
87,355 |
|
|
94,660 |
|
|
14,226 |
|
| Total liabilities |
834,474 |
|
|
1,145,548 |
|
|
172,176 |
|
| |
|
|
|
|
|
|
|
|
| Ordinary shares |
8,658 |
|
|
9,328 |
|
|
1,402 |
|
| Additional paid-in capital |
2,301,655 |
|
|
2,461,774 |
|
|
370,008 |
|
| Statutory reserves |
311,590 |
|
|
301,590 |
|
|
45,329 |
|
| Retained earnings |
1,018,928 |
|
|
1,351,283 |
|
|
203,100 |
|
| Accumulated other comprehensive loss |
(65,844 |
) |
|
(84,272 |
) |
|
(12,666 |
) |
| Subscription receivables |
(288,135 |
) |
|
(254,337 |
) |
|
(38,227 |
) |
| Total shareholders’
equity |
3,286,852 |
|
|
3,785,366 |
|
|
568,946 |
|
| Non-controlling interests |
117,242 |
|
|
114,851 |
|
|
17,262 |
|
| Total equity |
3,404,094 |
|
|
3,900,217 |
|
|
586,208 |
|
Total liabilities and equity
|
4,238,568 |
|
|
5,045,765 |
|
|
758,384 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| 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,
|
|
| |
2016 |
|
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
| |
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
| Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life insurance Business |
263,243 |
|
730,476 |
|
109,792 |
|
628,194 |
|
1,934,125 |
|
290,702 |
|
| P&C insurance Business |
844,311 |
|
274,119 |
|
41,200 |
|
2,305,227 |
|
1,413,549 |
|
212,458 |
|
| Claims adjusting Business |
84,688 |
|
72,683 |
|
10,924 |
|
232,739 |
|
209,956 |
|
31,557 |
|
| Total net revenues |
1,192,242 |
|
1,077,278 |
|
161,916 |
|
3,166,160 |
|
3,557,630 |
|
534,717 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life insurance Business |
(181,900 |
) |
(511,412 |
) |
(76,866 |
) |
(428,145 |
) |
(1,321,804 |
) |
(198,669 |
) |
| P&C insurance Business |
(681,740 |
) |
(236,584 |
) |
(35,559 |
) |
(1,870,556 |
) |
(1,294,368 |
) |
(194,545 |
) |
| Claims adjusting Business |
(48,838 |
) |
(43,547 |
) |
(6,545 |
) |
(142,537 |
) |
(136,883 |
) |
(20,574 |
) |
| Total operating costs |
(912,478 |
) |
(791,543 |
) |
(118,970 |
) |
(2,441,238 |
) |
(2,753,055 |
) |
(413,788 |
) |
| Selling expenses |
(154,085 |
) |
(54,270 |
) |
(8,157 |
) |
(403,612 |
) |
(160,388 |
) |
(24,107 |
) |
| General and administrative expenses |
(118,155 |
) |
(148,265 |
) |
(22,284 |
) |
(341,966 |
) |
(426,577 |
) |
(64,115 |
) |
| Total operating costs and expenses |
(1,184,718 |
) |
(994,078 |
) |
(149,411 |
) |
(3,186,816 |
) |
(3,340,020 |
) |
(502,010 |
) |
| Income (loss) from operations |
7,524 |
|
83,200 |
|
12,505 |
|
-20,656 |
|
217,610 |
|
32,707 |
|
| Other income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income |
18,352 |
|
43,960 |
|
6,607 |
|
61,438 |
|
152,138 |
|
22,867 |
|
| Interest income |
220 |
|
10,998 |
|
1,653 |
|
6,573 |
|
13,522 |
|
2,032 |
|
| Others, net |
2377 |
|
1,817 |
|
273 |
|
11,859 |
|
12,618 |
|
1,896 |
|
| Income before income taxes and income of
affiliates |
28,473 |
|
139,975 |
|
21,038 |
|
59,214 |
|
395,888 |
|
59,502 |
|
| Income tax expense |
(5,765 |
) |
(50,340 |
) |
(7,566 |
) |
(7,842 |
) |
(129,676 |
) |
(19,490 |
) |
| Share of income of affiliates |
13,059 |
|
24,059 |
|
3,616 |
|
34,398 |
|
53,752 |
|
8,079 |
|
| Net income |
35,767 |
|
113,694 |
|
17,088 |
|
85,770 |
|
319,964 |
|
48,091 |
|
| less: net income (loss) attributable to noncontrolling
interests |
3,674 |
|
1,426 |
|
214 |
|
3,318 |
|
(2,391 |
) |
(359 |
) |
| Net income attributable to the Company’s
shareholders |
32,093 |
|
112,268 |
|
16,874 |
|
82,452 |
|
322,355 |
|
48,450 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
0.03 |
|
0.09 |
|
0.01 |
|
0.07 |
|
0.27 |
|
0.04 |
|
| Diluted |
0.03 |
|
0.09 |
|
0.01 |
|
0.07 |
|
0.26 |
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per ADS: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Basic |
0.55 |
|
1.8 |
|
0.27 |
|
1.42 |
|
5.31 |
|
0.8 |
|
| Diluted |
0.53 |
|
1.77 |
|
0.27 |
|
1.37 |
|
5.15 |
|
0.77 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in calculating net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
1,163,302,341 |
|
1,247,356,127 |
|
1,247,356,127 |
|
1,159,295,688 |
|
1,214,639,385 |
|
1,214,639,385 |
|
| Diluted |
1,212,231,308 |
|
1,269,932,904 |
|
1,269,932,904 |
|
1,207,220,255 |
|
1,252,939,633 |
|
1,252,939,633 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
35,767 |
|
113,694 |
|
17,088 |
|
85,770 |
|
319,964 |
|
48,091 |
|
| Other comprehensive income (loss), net of tax: Foreign currency
translation adjustments |
4,431 |
|
(8,367 |
) |
(1,258 |
) |
9,328 |
|
(11,346 |
) |
(1,705 |
) |
| Fair value changes |
— |
|
— |
|
— |
|
— |
|
(632 |
) |
(95 |
) |
| Share of other comprehensive gain (loss) of affiliates |
(10,505 |
) |
889 |
|
134 |
|
(38,866 |
) |
343 |
|
52 |
|
| Comprehensive income |
29,693 |
|
106,216 |
|
15,964 |
|
56,232 |
|
308,329 |
|
46,343 |
|
| Less: Comprehensive income (loss) attributable to the noncontrolling
interests |
3,674 |
|
1,426 |
|
214 |
|
3,318 |
|
(2,391 |
) |
(359 |
) |
| Comprehensive income attributable to the Company’s
shareholders |
26,019 |
|
104,790 |
|
15,750 |
|
52,914 |
|
310,720 |
|
46,702 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| FANHUA INC. |
| Unaudited Condensed Consolidated Statements
of Cash Flow |
| (In
thousands) |
| |
|
|
| |
For The Three Months
Ended |
|
|
For The Nine Months
Ended |
|
| |
September
30, |
|
|
September
30, |
|
| |
2016 |
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2017 |
|
| |
RMB |
|
|
RMB |
|
|
US$
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
| OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
35,767 |
|
|
113,694 |
|
|
17,088 |
|
|
85,770 |
|
|
319,964 |
|
|
48,091 |
|
| Adjustments to reconcile net income to net cash generated
from (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation |
3,529 |
|
|
4,351 |
|
|
653 |
|
|
10,204 |
|
|
12,079 |
|
|
1,815 |
|
| Amortization of intangible assets |
8,806 |
|
|
8,417 |
|
|
1,265 |
|
|
11,432 |
|
|
25,433 |
|
|
3,823 |
|
| Allowance for doubtful receivables |
1,577 |
|
|
2,822 |
|
|
424 |
|
|
542 |
|
|
11,728 |
|
|
1,763 |
|
| Compensation expenses associated with stock option |
— |
|
|
— |
|
|
— |
|
|
4,937 |
|
|
— |
|
|
— |
|
| Investment income |
(13,907 |
) |
|
(41,288 |
) |
|
(6,206 |
) |
|
(34,844 |
) |
|
(141,201 |
) |
|
(21,223 |
) |
| Gain on disposal of subsidiaries |
— |
|
|
(193 |
) |
|
(29 |
) |
|
(3,082 |
) |
|
(1,495 |
) |
|
(225 |
) |
| Loss (gain) on disposal of property, plant and equipment |
99 |
|
|
(38 |
) |
|
(6 |
) |
|
101 |
|
|
(40 |
) |
|
(6 |
) |
| Share of income of affiliates |
(13,059 |
) |
|
(24,059 |
) |
|
(3,616 |
) |
|
(34,398 |
) |
|
(53,752 |
) |
|
(8,079 |
) |
| Changes in operating assets and liabilities |
6,784 |
|
|
(89,383 |
) |
|
(13,431 |
) |
|
(66,332 |
) |
|
(80,440 |
) |
|
(12,090 |
) |
| Net cash generated from (used in) operating activities |
29,596 |
|
|
(25,677 |
) |
|
(3,858 |
) |
|
(25,670 |
) |
|
92,276 |
|
|
13,869 |
|
| Cash flows (used in) generated from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchase of property, plant and equipment |
(3,523 |
) |
|
(7,729 |
) |
|
(1,162 |
) |
|
(7,540 |
) |
|
(15,934 |
) |
|
(2,395 |
) |
| Proceeds from disposal of property and equipment |
— |
|
|
35 |
|
|
5 |
|
|
48 |
|
|
91 |
|
|
14 |
|
| Purchase of short term investments |
(1,689,500 |
) |
|
(3,509,600 |
) |
|
(527,498 |
) |
|
(6,541,800 |
) |
|
(7,787,794 |
) |
|
(1,170,516 |
) |
| Proceeds from disposal of short term investments |
1,703,007 |
|
|
3,667,482 |
|
|
551,228 |
|
|
5,946,400 |
|
|
8,461,895 |
|
|
1,271,834 |
|
| Acquisition of subsidiaries ,net of cash |
(4,185 |
) |
|
— |
|
|
— |
|
|
(4,185 |
) |
|
— |
|
|
— |
|
| Disposal of subsidiaries, net of
cash........................... |
50 |
|
|
— |
|
|
— |
|
|
29,376 |
|
|
14,350 |
|
|
2,157 |
|
| Purchase of intangible assets |
(40,000 |
) |
|
— |
|
|
— |
|
|
(60,000 |
) |
|
— |
|
|
— |
|
| Increase in loan to the third party |
— |
|
|
(500,000 |
) |
|
(75,151 |
) |
|
— |
|
|
(500,000 |
) |
|
(75,151 |
) |
| Decrease (Increase) in amounts due from related parties |
— |
|
|
160,000 |
|
|
24,048 |
|
|
— |
|
|
(240,000 |
) |
|
(36,072 |
) |
| Net cash used in investing activities |
(34,151 |
) |
|
(189,812 |
) |
|
(28,530 |
) |
|
(637,701 |
) |
|
(67,392 |
) |
|
(10,129 |
) |
| Cash flows (used in) generated from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition of additional interest in subsidiaries |
(138,774 |
) |
|
— |
|
|
— |
|
|
(213,534 |
) |
|
— |
|
|
— |
|
| Proceeds on exercise of stock options |
743 |
|
|
154 |
|
|
23 |
|
|
745 |
|
|
10,856 |
|
|
1,631 |
|
| Proceeds of employee subscriptions |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
22,187 |
|
|
3,335 |
|
| Proceeds of issuance of ordinary shares upon private placement |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
201,087 |
|
|
30,224 |
|
| Dividends paid res |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(36,121 |
) |
|
(5,429 |
) |
| Net cash (used in)generated from financing activities |
(138,031 |
) |
|
154 |
|
|
23 |
|
|
(212,789 |
) |
|
198,009 |
|
|
29,761 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (decrease) increase in cash, cash equivalents and restricted
cash |
(142,586 |
) |
|
(215,335 |
) |
|
(32,365 |
) |
|
(876,160 |
) |
|
222,893 |
|
|
33,501 |
|
| Cash, cash equivalents and restricted cash at beginning of
period |
397,313 |
|
|
709,133 |
|
|
106,583 |
|
|
1,132,851 |
|
|
273,979 |
|
|
41,179 |
|
| Effect of exchange rate changes on cash and cash equivalents |
3,506 |
|
|
(3,903 |
) |
|
(587 |
) |
|
1,542 |
|
|
(6,977 |
) |
|
(1,049 |
) |
| Cash, cash equivalents and restricted cash at end of
period |
258,233 |
|
|
489,895 |
|
|
73,631 |
|
|
258,233 |
|
|
489,895 |
|
|
73,631 |
|
| Interest paid |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Income taxes paid |
216 |
|
|
25,198 |
|
|
3,787 |
|
|
3,544 |
|
|
80,360 |
|
|
12,078 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 RMB6.6533 to US$1.00, the effective noon buying rate as of September 30, 2017 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 Active users are defined as users who made at least one purchase through CNpad App during the specified
period.
3 Active users of CNpad App included users who made at least one purchase of life insurance policy and/or P&C
insurance policy during the specific period.
4 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.
For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 8388-3191
Email: qiusr@fanhuaholdings.com
