CNinsure Inc. |
||||
By: | /s/ Yinan Hu | |||
Name: | Yinan Hu | |||
Title: | Chief Executive Officer | |||
| Total net revenues: RMB297.8 million (US$43.6 million),
representing an increase of 41.1% from the corresponding
period of 2008, which exceeded the previous guidance of
approximately 35% growth from the corresponding period
of 2008. |
|
| Income from operations: RMB87.7 million (US$12.9
million), representing an increase of 54.4% from the
corresponding period of 2008. |
|
| Net income attributable to the Companys shareholders:
RMB76.9 million (US$11.3 million), representing an
increase of 47.3% from the corresponding period of 2008. |
|
| Basic and diluted net income per American Depositary
Share (ADS): RMB1.686 (US$0.247) and RMB1.641
(US$0.240), respectively, representing an increase of
47.3% and 43.4%, respectively, from the corresponding
period of 2008. |
1 | This announcement contains translations of certain Renminbi (RMB) amounts into U.S.
dollars (US$) 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 RMB6.8262 to US$1.00, the effective
noon buying rate as of September 30, 2009 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. |
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(1) | increases in headcounts, particularly the recruitment of more senior managers, and higher
base salaries for the managerial and administrative staff; |
(2) | increases in depreciation of fixed assets as a result of the operation of our upgraded IT
system in affiliated entities; |
(3) | increases in amortization of intangible assets as a result of the acquisitions that we made
in 2008 and 2009; and |
(4) | increases in office rental expense and telecom expense and expenses incurred by newly
acquired entities and the expansion of distribution and service network. |
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| On October 18, 2009, Datong, the life insurance business segment
of CNinsure, announced cooperation with Sino Life Insurance Co.,
Ltd. for exclusive distribution of Fumantang, a custom-designed
participating whole life insurance product with critical illness
benefit rider. Up to now, CNinsure has established partnerships
with four insurance companies for exclusive distribution of five
custom-designed insurance products. |
|
| On October 1, 2009, CNinsure announced that it entered into
agreements to acquire 20.58% equity interest in China Financial
Services Group Limited (CFSG), a consumer credit brokerage
company specializing in the distribution of personal auto loans
and residential mortgage loans, marking its expansion into the
consumer financial services sector. The transaction has been
approved by the boards of directors of both CFSG and CNinsure and
was subsequently completed on November 1, 2009. |
Page 3 of 11
| During the third quarter of 2009, CNinsure established two new
life insurance agencies. As of September 30, 2009, its
distribution and service network consisted of 47 insurance
agencies, four insurance brokerages and four claims adjusting
firms with 472 sales and services outlets operating in 22
provinces, compared to 33 insurance agencies, four insurance
brokerages and three claims adjusting firms with 305 sales and
service outlets operating in 15 provinces as of September 30,
2008. CNinsure had 36,227 sales agents and 1,449 professional
claims adjustors as of September 30, 2009, compared to 23,042
sales agents and 641 professional claims adjustors as of September
30, 2008. |
|
| According to the Insurance Intermediary Market Development Report
published by the CIRC, based on revenues in the third quarter of
2009, CNinsure had eight affiliated insurance agencies, one
affiliated insurance brokerage, and three affiliated claims
adjusting firms among Chinas top 20 of their respective
categories, each accounting for 11.93%, 1.09% and 12.44% of the
total revenues of all insurance agencies, brokerages and claims
adjusting firms, respectively, in China. |
|
| During the third quarter of 2009, net revenues from commissions
and fees derived from Property and Casualty (P&C) Insurance,
Life Insurance and Claims Adjusting businesses grew by 33.0%,
95.3% and 28.4% year-over-year, respectively, each contributing
68.2%, 19.8% and 12.0% of the total net revenues in the third
quarter of 2009, respectively. |
|
| As of September 30, 2009, CNinsure had achieved the following in
its IT platform construction: (1) the Core Business System and a
financial and accounting system were installed in all affiliated
subsidiaries of its Life Insurance and Datong segments, and most
of the affiliated subsidiaries of its P&C Insurance and Claims
Adjusting segments; (2) the human resources system, office
automation system and E-learning system were put into use and the
sales automation system was at user acceptance test stage; and (3)
a module for data transmission with insurance companies and an
image & workflow system were under construction. |
|
| On July 29, 2009, CNinsure announced strategic partnership with
China United Property Insurance Company Limited for product
distribution and outsourcing of claims adjusting services. This
was the second strategic partnership agreement CNinsure has signed
with property and casualty insurance companies at the group level.
|
|
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Time: | 8:00 pm Eastern Standard Time on November 23, 2009 or 9:00 am Beijing/Hong Kong Time on November 24, 2009 |
The Toll Free dial-in numbers: |
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United States:
|
1866-549-1292 | |
United Kingdom:
|
0808-234-6305 | |
Canada:
|
1866-8691-825 | |
Singapore:
|
800-852-3576 | |
Taiwan:
|
0080-185-6004 | |
China (Mainland):
|
400-681-6949 | |
Hong Kong & Other Areas:
|
+852-3005-2050 |
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Page 6 of 11
As of December 31, | As of September 30, | As of September 30, | ||||||||||
20082 (As Adjusted) | 2009 | 2009 | ||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS: |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
1,510,432 | 1,570,007 | 229,997 | |||||||||
Restricted cash |
4,200 | 2,811 | 412 | |||||||||
Accounts receivable, net |
90,452 | 141,666 | 20,753 | |||||||||
Insurance premium receivables |
21 | 302 | 44 | |||||||||
Other receivables |
57,151 | 53,974 | 7,907 | |||||||||
Deferred tax assets |
1,808 | 4,556 | 667 | |||||||||
Amounts due from related parties |
207,595 | 19,775 | 2,897 | |||||||||
Other current assets |
5,224 | 6,817 | 999 | |||||||||
Total current assets |
1,876,883 | 1,799,908 | 263,676 | |||||||||
Non-current assets: |
||||||||||||
Property, plant, and equipment, net |
72,538 | 102,232 | 14,977 | |||||||||
Goodwill |
37,888 | 325,843 | 47,734 | |||||||||
Intangible assets |
53,518 | 84,279 | 12,346 | |||||||||
Deferred tax assets |
4,836 | 2,747 | 403 | |||||||||
Investment in an affiliate |
427 | 390 | 57 | |||||||||
Other non-current assets |
425 | 2,634 | 386 | |||||||||
Total assets |
2,046,515 | 2,318,033 | 339,579 | |||||||||
2 | Effective from January 1, 2009, the Company adopted Financial Accounting Standards
Board (FASB) Accounting Standards Codification 810 (ASC 810) Non-controlling Interests, (formerly
FASB Statement (SFAS) No. 160, Non-controlling Interests in Consolidated Financial Statements).
As a result, the presentation and disclosure requirements had applied retrospectively for all
periods presented, requires noncontrolling interests to be separately presented as a component of
stockholders equity on the consolidated balance sheets. The balance sheet data as of December 31,
2008 were extracted from the Form 20-F for the year ended December 31, 2008, as adjusted to give
the effect of the adoption of FASB ACS 810. |
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As of December 31, | As of September 30, | As of September 30, | ||||||||||
20082 (As Adjusted) | 2009 | 2009 | ||||||||||
RMB | RMB | US$ | ||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY: |
||||||||||||
Current liabilities: |
||||||||||||
Accounts payable |
59,867 | 55,306 | 8,102 | |||||||||
Insurance premium payables |
4,200 | 2,811 | 412 | |||||||||
Other payables and accrued expenses |
73,712 | 96,310 | 14,109 | |||||||||
Accrued payroll |
15,336 | 21,531 | 3,154 | |||||||||
Income tax payable |
26,140 | 32,198 | 4,716 | |||||||||
Amounts due to related parties |
10,967 | 4,177 | 612 | |||||||||
Total current liabilities |
190,222 | 212,333 | 31,105 | |||||||||
Non-current liabilities: |
||||||||||||
Long-term borrowings |
| 20 | 3 | |||||||||
Other tax liabilities |
1,871 | 2,341 | 343 | |||||||||
Deferred tax liabilities |
8,351 | 19,773 | 2,897 | |||||||||
Total liabilities |
200,444 | 234,467 | 34,348 | |||||||||
Common stock |
7,036 | 7,036 | 1,031 | |||||||||
Additional paid-in capital |
1,666,723 | 1,603,270 | 234,870 | |||||||||
Statutory reserves |
71,237 | 71,237 | 10,436 | |||||||||
Retained earnings |
80,462 | 287,528 | 42,121 | |||||||||
Accumulated other comprehensive loss |
(73,810 | ) | (72,523 | ) | (10,624 | ) | ||||||
Total CNinsure Inc. shareholders
equity |
1,751,648 | 1,896,548 | 277,834 | |||||||||
Noncontrolling interests2 |
94,423 | 187,018 | 27,397 | |||||||||
Total shareholders equity |
1,846,071 | 2,083,566 | 305,231 | |||||||||
Total liabilities and shareholders
equity |
2,046,515 | 2,318,033 | 339,579 | |||||||||
Page 8 of 11
For The Three Months Ended | For The Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
20083 | 20083 | |||||||||||||||||||||||
(As Adjusted) | 2009 | 2009 | (As Adjusted) | 2009 | 2009 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net revenues: |
||||||||||||||||||||||||
Commissions and fees |
210,577 | 297,680 | 43,609 | 561,757 | 798,873 | 117,031 | ||||||||||||||||||
Other service fees |
414 | 125 | 18 | 700 | 484 | 71 | ||||||||||||||||||
Total net revenues |
210,991 | 297,805 | 43,627 | 562,457 | 799,357 | 117,102 | ||||||||||||||||||
Operating costs and expenses: |
||||||||||||||||||||||||
Commissions and fees |
(110,322 | ) | (139,707 | ) | (20,466 | ) | (290,727 | ) | (402,731 | ) | (58,998 | ) | ||||||||||||
Selling expenses |
(4,141 | ) | (14,799 | ) | (2,168 | ) | (11,105 | ) | (34,157 | ) | (5,004 | ) | ||||||||||||
General and administrative expenses |
(39,739 | ) | (55,576 | ) | (8,142 | ) | (100,450 | ) | (146,437 | ) | (21,452 | ) | ||||||||||||
Total operating costs and expenses |
(154,202 | ) | (210,082 | ) | (30,776 | ) | (402,282 | ) | (583,325 | ) | (85,454 | ) | ||||||||||||
Net income from operations |
56,789 | 87,723 | 12,851 | 160,175 | 216,032 | 31,648 | ||||||||||||||||||
Other income , net: |
||||||||||||||||||||||||
Investment income |
| | | | 18,905 | 2,769 | ||||||||||||||||||
Interest income |
12,851 | 7,528 | 1,103 | 36,553 | 26,103 | 3,824 | ||||||||||||||||||
Interest expense |
(29 | ) | (1 | ) | | (66 | ) | (4 | ) | (1 | ) | |||||||||||||
Others, net |
135 | 78 | 11 | 127 | 1,035 | 152 | ||||||||||||||||||
Changes in fair value of
contingent consideration
payables |
| | | | (5,946 | ) | (871 | ) | ||||||||||||||||
Net income before income taxes |
69,746 | 95,328 | 13,965 | 196,789 | 256,125 | 37,521 | ||||||||||||||||||
Income tax expense |
(16,385 | ) | (21,350 | ) | (3,128 | ) | (46,755 | ) | (67,289 | ) | (9,858 | ) | ||||||||||||
Share of loss of an affiliated
company |
(86 | ) | (10 | ) | (1 | ) | (1 | ) | (37 | ) | (5 | ) | ||||||||||||
Net income |
53,275 | 73,968 | 10,836 | 150,033 | 188,799 | 27,658 | ||||||||||||||||||
Less: Net income (loss)
attributable to the noncontrolling
interests |
1,069 | (2,955 | ) | (433 | ) | 2,156 | (18,267 | ) | (2,676 | ) | ||||||||||||||
Net income attributable to the
Companys shareholders |
52,206 | 76,923 | 11,269 | 147,877 | 207,066 | 30,334 | ||||||||||||||||||
3 | Amounts were extracted from the current report on Form 6-K filed on November 25, 2008,
as adjusted to give the effect of the adoption of SFAS ACS 810, Non-controlling Interests,
(formerly SFAS No. 160). |
Page 9 of 11
For The Three Months Ended | For The Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
20083 | 20083 | |||||||||||||||||||||||
(As Adjusted) | 2009 | 2009 | (As Adjusted) | 2009 | 2009 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net income per share: |
||||||||||||||||||||||||
Basic |
0.057 | 0.084 | 0.012 | 0.162 | 0.227 | 0.033 | ||||||||||||||||||
Diluted |
0.057 | 0.082 | 0.012 | 0.162 | 0.224 | 0.033 | ||||||||||||||||||
Net income per ADS: |
||||||||||||||||||||||||
Basic |
1.144 | 1.686 | 0.247 | 3.241 | 4.538 | 0.665 | ||||||||||||||||||
Diluted |
1.144 | 1.641 | 0.240 | 3.241 | 4.476 | 0.656 | ||||||||||||||||||
Shares used in calculating
net income per share
and ADS: |
||||||||||||||||||||||||
Basic |
912,497,726 | 912,497,726 | 912,497,726 | 912,497,726 | 912,497,726 | 912,497,726 | ||||||||||||||||||
Diluted |
912,497,726 | 937,397,373 | 937,397,373 | 912,497,726 | 925,236,583 | 925,236,583 |
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