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Financial Highlights for Fourth Quarter of 2013
Highlights for Fiscal Year 2013
Commenting on the fourth quarter financial results, Mr.
"We are particularly encouraged by this quarter's financial results as we saw more benefits from our investment in CNpad in the past three years. During 2013, CNpad generated
"In 2014, we will continue our commitment to introducing CNpad to a broader user base internally and externally, driving cross-selling and offering high value products and services to our clients. We believe these growth initiatives will pay dividends and lead the company to strong and sustained profitable growth."
Financial Results for the Fourth quarter of 2013
Total net revenues were
Total operating costs and expenses were
Commissions and fees expenses were
Selling expenses were
General and administrative expenses were
As a result of the foregoing factors, income from operations was
Operating margin was 2.9% for the fourth quarter of 2013, compared with 1.5% for the corresponding period in 2012.
Interest income was
Income tax expense was
Net income attributable to the Company's shareholders was
Net margin was 4.9% for the fourth quarter of 2013 compared with 4.6% for the corresponding period in 2012.
Basic and diluted net income per ADS were
Adjusted EBITDA was
Adjusted EBITDA margin was 7.2% for the fourth quarter of 2013 compared with 7.7% for the corresponding period in 2012.
Financial Result for the Year Ended
Total net revenues were
Total operating costs and expenses were
Commissions and fees expenses were
Selling expenses were
General and administrative expenses were
As a result of the foregoing factors, income from operations was
Operating margin was 1.0% for fiscal year 2013, compared with 4.2% for fiscal year 2012.
Interest income was
Income tax expense was
Net income attributable to the Company's shareholders was
Net margin was 5.4% for fiscal year 2013 compared with 8.2% for fiscal year 2012.
Basic and diluted net income per ADS were
Adjusted EBITDA was
Adjusted EBITDA margin was 7.1% for fiscal year 2013 compared with 12.3% for fiscal year 2012.
As of
Business Highlights:
Business Outlook
Conference Call
The Company will host a conference call to discuss the fourth quarter and fiscal year 2013 results at
Time:
The toll free dial-in numbers:
United States | 1-855-500-8701 | |
United Kingdom | 0800-015-9724 | |
Canada | 1-855-757-1565 | |
|
0080-665-1951 | |
Hong Kong | 800-903-737 |
The toll dial-in numbers:
|
400-120-0654 | |
Singapore & Other Areas | +65-6723-9385 |
A replay of the call will be available for three days by dialing the following number: +61 2 8199 0299
Conference ID #: 17694257
Additionally, a live and archived web cast of this call will be available at: http://ir.cninsure.net/events.cfm
About
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, the 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
About Non-GAAP Financial Measures
In addition to the Company's consolidated financial results under GAAP, the Company also provides adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. Adjusted EBITDA is defined as net income before income tax expense, investment income and interest income, depreciation, amortization and share-based compensation expenses. Adjusted EBITDA margin is defined as adjusted EBITDA divided by total net revenues. 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. One limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude the items that were significant in the fourth quarter of 2013, the fiscal year of 2013 and the corresponding period of 2012, and these items have been, and will continue to be, a significant recurring factor in our business.
In light of the limitations, the presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for 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 Net Income to Adjusted EBITDA and Adjusted EBITDA Margin" set forth at the end of this release.
1This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of
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Condensed Consolidated Balance Sheets | |||
(In thousands) | |||
As of |
As of |
As of |
|
RMB | RMB | US$ | |
(audited) | (unaudited) | (unaudited) | |
ASSETS: | |||
Current assets: | |||
Cash and cash equivalents | 2,525,618 | 2,288,623 | 378,054 |
Restricted cash | 10,871 | 11,100 | 1,834 |
Short term investments | 600 | 253,900 | 41,941 |
Accounts receivable, net | 196,244 | 199,482 | 32,952 |
Insurance premium receivables | 10 | 57 | 9 |
Other receivables | 86,565 | 214,670 | 35,461 |
Deferred tax assets | 4,942 | 4,858 | 802 |
Amounts due from related parties | 151,785 | 144,371 | 23,848 |
Other current assets | 17,265 | 20,634 | 3,409 |
Total current assets | 2,993,900 | 3,137,695 | 518,310 |
Non-current assets: | |||
Property, plant, and equipment, net | 94,921 | 69,562 | 11,491 |
Goodwill and intangible assets, net | 121,333 | 107,668 | 17,785 |
Deferred tax assets | 3,967 | 3,382 | 559 |
Investment in affiliates | 168,620 | 189,241 | 31,260 |
Other non-current assets | 18,048 | 13,076 | 2,160 |
Total non-current assets | 406,889 | 382,929 | 63,255 |
Total assets | 3,400,789 | 3,520,624 | 581,565 |
LIABILITIES AND EQUITY: | |||
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated variable interest entities ("VIEs") without recourse to |
98,124 | 92,324 | 15,251 |
Insurance premium payables (including insurance premium payables of the consolidated VIEs without recourse to |
2,941 | 4,066 | 672 |
Other payables and accrued expenses (including other payables and accrued expense of the consolidated VIEs without recourse to |
116,124 | 107,848 | 17,815 |
Accrued payroll (including accrued payroll of the consolidated VIEs without recourse to |
42,317 | 39,089 | 6,457 |
Income tax payable (including income tax payable of the consolidated of VIEs without recourse to |
56,003 | 55,992 | 9,249 |
Amounts due to related parties (including amounts due to related parties of the consolidated of VIEs without recourse to |
3,030 | — | — |
Total current liabilities | 318,539 | 299,319 | 49,444 |
Non-current liabilities: | |||
Other tax liabilities | 47,589 | 50,735 | 8,381 |
Deferred tax liabilities | 26,754 | 23,808 | 3,933 |
Total non-current liabilities | 74,343 | 74,543 | 12,314 |
Total liabilities | 392,882 | 373,862 | 61,758 |
Ordinary shares | 7,624 | 7,624 | 1,259 |
Additional paid-in capital | 2,284,906 | 2,329,962 | 384,882 |
Statutory reserves | 178,440 | 182,740 | 30,186 |
Retained earnings | 527,542 | 618,885 | 102,233 |
Accumulated other comprehensive loss | (104,132) | (111,114) | (18,355) |
Total |
2,894,380 | 3,028,097 | 500,205 |
Noncontrolling interests | 113,527 | 118,665 | 19,602 |
Total equity | 3,007,907 | 3,146,762 | 519,807 |
Total liabilities and equity | 3,400,789 | 3,520,624 | 581,565 |
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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 | |||||
|
|
|||||
2012 | 2013 | 2013 | 2012 | 2013 | 2013 | |
RMB | RMB | US$ | RMB | RMB | US$ | |
(unaudited) | (unaudited) | (unaudited) | (audited) | (unaudited) | (unaudited) | |
Net revenues: | ||||||
Commissions and fees | 430,137 | 502,411 | 82,992 | 1,580,234 | 1,755,545 | 289,995 |
Other service fees | 5,690 | 1,428 | 236 | 5,883 | 1,479 | 244 |
Total net revenues | 435,827 | 503,839 | 83,228 | 1,586,117 | 1,757,024 | 290,239 |
Operating costs and expenses: | ||||||
Commissions and fees | (311,821) | (365,829) | (60,431) | (1,085,809) | (1,293,372) | (213,650) |
Selling expenses | (19,332) | (24,657) | (4,073) | (78,449) | (96,461) | (15,934) |
General and administrative expenses | (98,280) | (98,957) | (16,346) | (356,033) | (349,205) | (57,684) |
Total operating costs and expenses | (429,433) | (489,443) | (80,850) | (1,520,291) | (1,739,038) | (287,268) |
Income from operations | 6,394 | 14,396 | 2,378 | 65,826 | 17,986 | 2,971 |
Other income, net: | ||||||
Investment income | — | 4,538 | 750 | — | 8,886 | 1,468 |
Interest income | 20,055 | 21,661 | 3,578 | 90,323 | 84,250 | 13,917 |
Financial cost | (2,439) | — | — | (2,439) | — | — |
Others, net | 3,396 | (7,640) | (1,262) | 6,742 | (4,601) | (760) |
Income before income taxes and income of affiliates | 27,406 | 32,955 | 5,444 | 160,452 | 106,521 | 17,596 |
Income tax expense | (9,541) | (10,380) | (1,715) | (50,373) | (27,158) | (4,486) |
Share of income of affiliates | 610 | 3,770 | 623 | 14,658 | 20,621 | 3,406 |
Net income | 18,475 | 26,345 | 4,352 | 124,737 | 99,984 | 16,516 |
Less: net gain (loss) attributable to noncontrolling interests | (1,581) | 1,644 | 271 | (5,773) | 4,341 | 717 |
Net income attributable to the Company's shareholders | 20,056 | 24,701 | 4,081 | 130,510 | 95,643 | 15,799 |
Net income per share: | ||||||
Basic | 0.02 | 0.02 | — | 0.13 | 0.10 | 0.02 |
Diluted | 0.02 | 0.02 | — | 0.13 | 0.10 | 0.02 |
Net income per ADS: | ||||||
Basic | 0.40 | 0.49 | 0.08 | 2.60 | 1.92 | 0.32 |
Diluted | 0.40 | 0.49 | 0.08 | 2.60 | 1.91 | 0.32 |
Shares used in calculating net income per share: | ||||||
Basic | 1,001,558,815 | 998,861,526 | 998,861,526 | 1,002,308,275 | 998,861,526 | 998,861,526 |
Diluted | 1,005,461,258 | 998,861,526 | 998,861,526 | 1,005,301,969 | 1,000,570,018 | 1,000,570,018 |
Net income | 18,475 | 26,345 | 4,352 | 124,737 | 99,984 | 16,516 |
Other comprehensive loss, net of tax: Foreign currency translation adjustments | (2,110) | (2,602) | (430) | (2,568) | (6,981) | (1,153) |
Comprehensive income | 16,365 | 23,743 | 3,922 | 122,169 | 93,003 | 15,363 |
Less: Comprehensive income (loss) attributable to the noncontrolling interests | (1,581) | 1,644 | 271 | (5,773) | 4,341 | 717 |
Comprehensive income attributable to the |
17,946 | 22,099 | 3,651 | 127,942 | 88,662 | 14,646 |
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Condensed Consolidated Statements of |
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(In thousands) | ||||||
For The Three Months Ended | For The Twelve Months Ended | |||||
|
|
|||||
2012 | 2013 | 2013 | 2012 | 2013 | 2013 | |
RMB | RMB | US$ | RMB | RMB | US$ | |
(unaudited) | (unaudited) | (unaudited) | (audited) | (unaudited) | (unaudited) | |
OPERATING ACTIVITIES | ||||||
Net income | 18,475 | 26,345 | 4,352 | 124,737 | 99,984 | 16,516 |
Adjustments to reconcile net income to net cash generated from operating activities: | ||||||
Depreciation | 6,539 | 7,732 | 1,277 | 26,349 | 31,253 | 5,163 |
Amortization of intangible assets | 3,725 | 3,416 | 564 | 15,285 | 13,664 | 2,257 |
Allowance for doubtful receivables | 1,323 | 2,661 | 440 | 4,523 | 5,303 | 876 |
Compensation expenses associated with stock option | 12,920 | 14,702 | 2,428 | 66,878 | 45,317 | 7,485 |
Loss (gain) on disposal of property, plant and equipment | 2,363 | (16) | (2) | 3,662 | (17) | (2) |
Financial cost | 2,439 | — | — | 2,439 | — | — |
Write down of dividend receivables | — | 7,561 | 1,249 | — | 7,561 | 1,249 |
Investment income | — | (4,538) | (750) | — | (8,886) | (1,468) |
Share of income of affiliates | (610) | (3,770) | (623) | (14,658) | (20,621) | (3,406) |
Changes in operating assets and liabilities | (24,835) | 40,964 | 6,767 | (71,407) | 6,200 | 1,024 |
Net cash generated from operating activities | 22,339 | 95,057 | 15,702 | 157,808 | 179,758 | 29,694 |
Cash flows generated from (used in) investing activities: | ||||||
Purchase of property, plant and equipment | (4,054) | (1,731) | (286) | (11,624) | (36,181) | (5,976) |
Proceeds from disposal of property and equipment | 4 | 92 | 15 | 584 | 249 | 41 |
Proceeds from disposal of short term investments | — | — | — | 71,080 | 30,600 | 5,055 |
Purchase of short term investments | — | (30,000) | (4,955) | (40,600) | (283,900) | (46,897) |
Short-term investment gain | — | 3,528 | 583 | — | 7,876 | 1,301 |
Disposal of subsidiaries, net of cash | — | (1,532) | (253) | 1,967 | (1,532) | (253) |
Decrease (increase) in restricted cash | 916 | 1,170 | 193 | (795) | (229) | (38) |
Increase in other receivables | — | (67,705) | (11,184) | (3,400) | (67,705) | (11,184) |
Purchase of non-current assets | — | — | — | (1,948) | — | — |
Return of investment in non-current assets | — | — | — | 1,300 | — | — |
Decrease (increase) in amounts due from related parties | (99,105) | 22,666 | 3,744 | 218,350 | (62,300) | (10,291) |
Net cash generated from (used in) investing activities | (102,239) | (73,512) | (12,143) | 234,914 | (413,122) | (68,242) |
Cash flows generated from (used in) financing activities: | ||||||
Acquisition of additional interest in subsidiaries | (70,000) | — | — | (90,455) | — | — |
Capital injection by noncontrolling interests | — | — | — | 12,655 | 3,350 | 553 |
Proceeds on exercise of stock options | 300 | — | — | 348 | — | — |
Repurchase of ordinary shares | (9,244) | — | — | (9,244) | — | — |
Net cash generated from (used in) financing activities | (78,944) | — | — | (86,696) | 3,350 | 553 |
Net increase (decrease) in cash and cash equivalents | (158,844) | 21,545 | 3,559 | 306,026 | (230,014) | (37,995) |
Cash and cash equivalents at beginning of period | 2,686,572 | 2,269,680 | 374,925 | 2,222,160 | 2,525,618 | 417,202 |
Effect of exchange rate changes on cash and cash equivalents | (2,110) | (2,602) | (430) | (2,568) | (6,981) | (1,153) |
Cash and cash equivalents at end of period | 2,525,618 | 2,288,623 | 378,054 | 2,525,618 | 2,288,623 | 378,054 |
Interest paid | — | — | — | — | — | — |
Income taxes paid | 8,321 | 6,911 | 1,142 | 63,400 | 27,153 | 4,485 |
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Reconciliations of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin | ||||||
(In thousands) | ||||||
For The Three Months Ended | For The Twelve Months Ended | |||||
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|
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2012 | 2013 | 2013 | 2012 | 2013 | 2013 | |
RMB | RMB | US$ | RMB | RMB | US$ | |
Net income | 18,475 | 26,345 | 4,352 | 124,737 | 99,984 | 16,516 |
Income tax expense | 9,541 | 10,380 | 1,715 | 50,373 | 27,158 | 4,486 |
Investment income | — | (4,538) | (750) | — | (8,886) | (1,468) |
Interest income | (20,055) | (21,661) | (3,578) | (90,323) | (84,250) | (13,917) |
Financial cost | 2,439 | — | — | 2,439 | — | — |
Depreciation | 6,539 | 7,732 | 1,277 | 26,349 | 31,253 | 5,163 |
Amortization of intangible assets | 3,725 | 3,416 | 564 | 15,285 | 13,664 | 2,257 |
Compensation expenses associated with stock option | 12,920 | 14,702 | 2,428 | 66,878 | 45,317 | 7,485 |
Adjusted EBITDA | 33,584 | 36,376 | 6,008 | 195,738 | 124,240 | 20,522 |
Total net revenues | 435,827 | 503,839 | 83,228 | 1,586,117 | 1,757,024 | 290,239 |
Adjusted EBITDA Margin | 7.7% | 7.2% | 7.2% | 12.3% | 7.1% | 7.1% |
CONTACT: For more information, please contact:Source:Oasis Qiu Investor Relations Manager Tel: +86 (20) 6122-2731 Email: qiusr@cninsure.net
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