UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
_______________________
 
FORM 6-K
_______________________

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of November 2014
 
Commission File Number: 001-33768
 
_______________________
 
CNINSURE INC.
_______________________
 
22/F, Yinhai Building
No. 299 Yanjiang Zhong Road
Guangzhou, Guangdong 510110
People’s Republic of China
(Address of principal executive offices)

 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
 Form 20-F x        Form 40-F ¨
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 	

 	
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 	CNinsure Inc.	

 	By: 	/s/ Chunlin Wang	 	
 	Name: 	Chunlin Wang	
 	Title:	Chief Executive Officer	

  
 
Date: November 26, 2014

 

 	

Exhibit Index
 
Exhibit No.  	Description 	
 	 	
Exhibit 99.1	Press Release	

 

Exhibit 99.1

 
	IR-178	
 
 CNinsure Reports Third Quarter 2014 Unaudited Financial Results
 
- Quarterly Net Revenues Beat Guidance, Up 25.9%

GUANGZHOU, China, November 25, 2014 (GLOBE NEWSWIRE) -- CNinsure Inc, (Nasdaq: CISG), (the “Company” or “CNinsure”), a leading independent insurance intermediary company operating in China, today announced its unaudited financial results for the third quarter ended September 30, 2014 1 .
 
Financial Highlights for Third Quarter of 2014
 
 	l	Total net revenues: RMB542.3 million (US$88.4 million), representing an increase of 25.9% from the corresponding period in 2013.	
 
 	l	Operating income: RMB0.9 million (US$0.1 million), representing a decrease of 50.5% from the corresponding period in 2013.	
 
 	l	Adjusted operating income2: RMB17.9 million (US$2.9 million), representing an increase of 98.7% from the corresponding period in 2013.	
 
 	l	Net income attributable to the Company’s shareholders: RMB34.8 million (US$5.7 million), representing an increase of 20.0% from the corresponding period in 2013.	
 
 	l	Basic and diluted net income per ADS: RMB0.70 (US$0.11) and RMB0.69 (US$0.11), respectively, representing an increase of 19.8% and 19.3% from the corresponding period in 2013, respectively.	
 
Business Highlights:
 
 	l	CNpad: As of September 30, 2014, 40,350 copies of CNpad application (“CNpad App”) had been downloaded and activated and there were 21,933 CNpad App users (defined as those who have made at least one transaction through CNpad App on their mobile devices since downloading the CNpad App). For the nine months ended September 30 2014, insurance premiums generated through CNpad App were RMB785.8 million, up 800% year-over-year and revenues derived from CNpad App were 173.8 million, accounting for 11.4% of our total net revenues.	

 
 
1This 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 RMB6.1380 to US$1.00, the effective noon buying rate as of September 30, 2014 in The City of New York for cable transfers of RMB as set forth in H.10 weekly statistical release of the Federal Reserve Board.
 
2 Adjusted operating income is defined as operating income excluding expenses incurred by online/mobile initiatives including CNpad, eHuzhu and chetong.net.

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 	IR-178	
During the third quarter of 2014, total expenses associated with CNpad were RMB8.4 million (US$1.4 million), representing an increase of 15.9% from RMB7.3 million for the corresponding period in 2013.
 
 	l	Chetong.net: On August 28, 2014, the Company launched chetong.net, an O2O auto insurance after-sales service platform dedicated to offering location-based auto services such as car accident inspections, loss assessment, emergency assistance, quick repair, and valet driving, for beta-testing. As of September 30, 2014, the total number of service representatives registered on the platform was 3,218 and the service network covered 201 prefecture-level cities.	
 
During the third quarter of 2014, total expenses associated with chetong.net were RMB1.1 million (US$0.2 million).
 
 	l	eHuzhu: As of September 30, 2014, the total number of paying members of eHuzhu, an online mutual aid platform launched by CNinsure on July 3, 2014, reached 146,161 and the total fund balance under the platform was RMB1.2 million (US$0.2 million).	
 
During the third quarter of 2014, total expenses associated with eHuzhu were RMB7.6 million (US$1.2 million).
 
Commenting on the third quarter financial results, Mr. Chunlin Wang, CNinsure’s chief executive officer, stated, “We are pleased to report 25.9% year-over-year revenue growth in the third quarter of 2014, far exceeding our guidance of 15%. This stellar growth was mainly driven by the strong performance of our property and casualty insurance agency business and insurance brokerage business, and also reflects increasing premium contributions from CNpad App since it was made available for free download in May 2014. During the third quarter of 2014, revenues generated via CNpad App grew by 618.5% year-over-year, accounting for 14.2% of our total net revenues.
 
“Operationally, we continued to see exciting progress in our O2O strategic initiatives. eHuzhu and chetong.net, since their launch in July and August, respectively, have witnessed vigorous growth in terms of the number of registered members. While these initiatives require continuous investments in both IT infrastructure and talent, which have and may continue to impact our bottom line in the near term, we believe these strategic investments will further extend our core competence and position us for sustainable profit growth over the long run.”
 
Changes in Segment Reporting
 
In the first quarter of 2014, the Company realigned its financial reporting structure into four business segments that more accurately reflect its organizational structure and changing business mix. Historical results reflecting the new business segments for the corresponding period of the previous year are also presented in the Company’s interim financial statements. Under the realigned business structure, the four business segments are as follows:
 
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 	IR-178	
(1) insurance agency business segment, which mainly consists of providing agency services for property and casualty (“P&C”) insurance products and life insurance products to individual clients,
 
(2) insurance brokerage business segment, which mainly consists of providing P&C and life insurance brokerage services to institutional clients,
 
(3) claims adjusting segment, which consists of providing pre-underwriting survey, claim adjusting, disposal of residual value, loading and unloading supervision and consulting services, and
 
(4) other services, which include non-insurance related services which we provided in 2013.
 
Financial Results for the Third Quarter of 2014
 
Total net revenues were RMB542.3 million (US$88.4 million) for the third quarter of 2014, representing an increase of 25.9% from RMB430.6 million for the corresponding period in 2013.
 
Net revenues of insurance agency business were RMB404.7 million (US$65.9 million) for the third quarter of 2014, representing an increase of 18.2% from RMB342.4 million for the corresponding period in 2013. The increase was primarily driven by a 22.4% increase in net revenues derived from the P&C insurance agency business, offset by a 7.2% decline in net revenues derived from the life insurance agency business. The growth of the P&C insurance agency business was primarily due to a 26.9% growth in sales volume, attributable to both solid organic growth and contributions from the acquisitions of three insurance agencies in the third quarter of 2014, offset by a slight decline in the commission rates that we received from the insurance companies for which we act as their agents. The decrease in net revenues derived from the life insurance agency business was primarily due to a decline in renewal commission resulting from a decline in new policy sales in the past two years and a decline in commissions derived from the sales of short term life insurance products, albeit a moderate increase in commissions derived from new long term life insurance policy sales. Revenues generated from the insurance agency business accounted for 74.6% of total net revenues.
 
Net revenues of insurance brokerage business were RMB67.8 million (US$11.0 million) for the third quarter of 2014, representing an increase of 215.6% from RMB21.5 million for the corresponding period in 2013. The increase was primarily attributable to 1) an increase in our customer base as a result of efforts to expand sales channels, develop innovative product offerings and cultivate markets in the past three years and 2) the low base in this segment during the third quarter of 2013. Revenues generated from the insurance brokerage business accounted for 12.5% of total net revenues.
 
Net revenues of claims adjusting business were RMB69.9 million (US$11.4 million) for the third quarter of 2014, representing an increase of 9.5% from RMB63.8 million for the corresponding period in 2013. Revenues generated from the claims adjusting business accounted for 12.9% of total net revenues.
 
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 	IR-178	
Total operating costs and expenses were RMB541.5 million (US$88.2 million) for the third quarter of 2014, representing an increase of 26.3% from RMB428.8 million for the corresponding period in 2013.
 
Total operating costs were RMB418.1 million (US$68.1 million) for the third quarter of 2014, representing an increase of 31.7% from RMB317.3 million for the corresponding period in 2013. The increase was primarily due to sales growth.
 
Costs of insurance agency business were RMB318.8 million (US$51.9 million) for the third quarter of 2014, representing an increase of 22.0% from RMB261.4 million for the corresponding period in 2013, primarily driven by a 26.4% increase in costs for the P&C insurance agency business and offset by a 7.6% decrease in costs for the life insurance agency business. The growth in costs for the P&C insurance agency business was largely in line with the growth in net revenues of P&C insurance agency business while the decline in costs for the life insurance business was primarily attributable to a decline in costs associated with the life insurance renewal business. Costs incurred by the insurance agency business accounted for 76.3% of operating costs.
 
Costs of insurance brokerage business were RMB54.4 million (US$8.9 million) for the third quarter of 2014, representing an increase of 239.1% from RMB16.0 million for the corresponding period in 2013. The increase was primarily due to sales growth. Costs incurred by the insurance brokerage business accounted for 13.0% of operating costs.
 
Costs of claims adjusting business were RMB44.9 million (US$7.3 million) for the third quarter of 2014, representing an increase of 19.6% from RMB37.5 million for the corresponding period in 2013. The increase was primarily attributable to sales growth and increased salaries for claims adjustors. Costs incurred by the claims adjusting business accounted for 10.7% of operating costs.
 
Selling expenses were RMB27.0 million (US$4.4 million) for the third quarter of 2014, representing a decrease of 1.4% from RMB27.3 million for the corresponding period in 2013. This represents a decline in staff salary and social security contributions as a result of combining the operations of our P&C insurance and life insurance businesses in the fourth quarter of 2013, offset by increases in vehicle, office and marketing expenses.
 
General and administrative expenses were RMB96.4 million (US$15.7 million) for the third quarter of 2014, representing an increase of 14.6% from RMB84.2 million for the corresponding period in 2013. The increase was primarily due to:
 
(1) a 135.6% increase in expenses incurred by CNpad, eHuzhu and chetong.net from RMB7.2 million in the third quarter of 2013 to RMB17.0 million (US$2.8 million) for the corresponding period in 2014; offset by
 
(2) a 39.9% decrease in share-based compensation expenses, from RMB7.6 million for the third quarter of 2013 to RMB4.6 million (US$0.7 million) for the third quarter of 2014. Share-based compensation expenses were mainly associated with stock options granted to certain employees in March 2012, which were recognized on an accelerated basis and such expenses are expected to decrease each year after the grant.
 
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 	IR-178	
As a result of the preceding factors, income from operations was RMB0.9 million (US$0.1 million) for the third quarter of 2014, representing a decrease of 50.5% from RMB1.8 million for the corresponding period in 2013.
 
Operating margin was 0.2% for the third quarter of 2014, compared with 0.4% for the corresponding period in 2013.
 
Adjusted operating income which excludes spending associated with online and mobile initiatives was RMB17.9 million (US$2.9 million), representing an increase of 98.7% from RMB9.0 million for the corresponding period in 2013.
 
Adjusted operating margin was 3.3%, compared with 2.1% for the corresponding period in 2013.
 
Investment income was RMB8.8 million (US$1.4 million) for the third quarter of 2014, representing an increase of 190.9% from RMB3.0 million for the corresponding period in 2013. The increase was primarily attributable to an increase in short term investment products.
 
Interest income was RMB19.5 million (US$3.2 million) for the third quarter of 2014, representing a decrease of 6.2 % from RMB20.7 million for the corresponding period in 2013. The decrease in interest income was primarily due to a decrease in term deposits as a result of the increased short-term investment.
 
Income tax expense was RMB4.2 million (US$0.7 million) for the third quarter of 2014, representing a decrease of 11.7% from RMB4.7 million for the corresponding period in 2013. The effective tax rate for the third quarter of 2014 was 13.9% compared with 17.6% for the corresponding period in 2013. The decrease in effective tax rate was primarily due to a tax exemption for two years and a 50% tax reduction for the succeeding three years enjoyed by one of our subsidiaries starting from January 1, 2014.
 
Share of income of affiliates was RMB8.0 million (US$1.3 million) for the third quarter of 2014, representing an increase of 28.1% from RMB6.2 million for the corresponding period in 2013, mainly representing an increase of profits from Sincere Fame International Limited, in which we own 20.6% of the equity interests.
 
Net income attributable to the Company’s shareholders was RMB34.8 million (US$5.7 million) for the third quarter of 2014, representing an increase of 20.0% from RMB29.0 million for the corresponding period in 2013.
 
Net margin was 6.4% for the third quarter of 2014 compared with 6.7% for the corresponding period in 2013.
 
Page 5 of 18	

 	IR-178	
Basic and diluted net income per ADS were RMB0.70 (US$0.11) and RMB0.69 (US$0.11) for the third quarter of 2014, respectively, representing increases of 19.8% and 19.3% from RMB0.58 and RMB0.58 for the corresponding period in 2013, respectively.
 
Adjusted EBITDA3 was RMB26.5 million (US$4.3 million) for the third quarter of 2014, representing a decrease of 5.4% from RMB28.0 million for the corresponding period in 2013.
 
Adjusted EBITDA margin was 4.9% for the third quarter of 2014, compared with 6.5% for the corresponding period in 2013.
 
Diluted adjusted EBITDA per ADS was RMB0.53 (US$0.09) for the third quarter of 2014, representing a decrease of 5.9% from RMB0.56 for the corresponding period in 2013.
 
As of September 30, 2014, the Company had RMB2.0 billion (US$327.1 million) in cash and cash equivalents.
 
Other Business Highlight:
 
 	l	As of September 30, 2014, CNinsure’s distribution and service network consisted of 548 sales and services outlets operating in 28 provinces, compared with 476 sales and service outlets operating in 27 provinces as of September 30, 2013. CNinsure had 57,143 sales agents and 1,473 professional claims adjustors as of September 30, 2014, compared with 50,356 sales agents and representatives, and 1,341 professional claims adjustors as of September 30, 2013.	
 
Business Outlook
 
CNinsure expects its total net revenues to grow by approximately 20% for the fourth quarter of 2014 compared with the corresponding period in 2013. This forecast reflects CNinsure’s current view, which is subject to change.
 
Conference Call
 
The Company will host a conference call to discuss the third quarter 2014 results as per the following details.
 
Time: 8:00 PM Eastern Standard Time on November 25, 2014
      or 9:00 AM Beijing/Hong Kong Time on November 26, 2014

 

3 Adjusted EBITDA is defined as net income before income tax expense, investment income, interest income, depreciation, amortization, and compensation expenses associated with stock option.
 
Page 6 of 18	

 	IR-178	
The toll free dial-in numbers:
 
United States	1-855-500-8701	
United Kingdom	0800-015-9724	
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	+65-6723-9385	
 
A replay of the call will be available for 7 days by dialing the following number:
+61-2-9003-4211
Conference ID #:30544278
Additionally, a live and archived web cast of this call will be available at:
http://ir.cninsure.net/events.cfm
 
About CNinsure Inc.
 
CNinsure is a leading independent insurance intermediary company operating in China. CNinsure’s distribution network reaches many of China’s most economically developed regions and affluent cities. The Company distributes a wide variety of property and casualty and life insurance products underwritten by domestic and foreign insurance companies operating in China, and provides insurance claims adjusting as well as other insurance-related services.
 
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 CNinsure and the industry. Potential risks and uncertainties include, but are not limited to, those relating to CNinsure’s limited operating history, especially its limited experience in selling life insurance products, 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 CNinsure 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 CNinsure 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 CNinsure is included in CNinsure’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.
 
Page 7 of 18	

 	IR-178	
About Non-GAAP Financial Measures
 
In addition to the Company’s consolidated financial results under GAAP, the Company also provides adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin and diluted adjusted EBITDA per ADS, which are non-GAAP financial measures. Adjusted operating income is defined as operating income before expenses associated with the Company’s online initiatives including CNpad, chetong.net and eHuzhu. Adjusted operating margin is defined as adjusted operating income divided by total net revenues. Adjusted EBITDA is defined as net income before income tax expense, investment income, interest income, depreciation, amortization and compensation expenses associated with stock option. Adjusted EBITDA margin is defined as adjusted EBITDA divided by total net revenues. Diluted adjusted EBITDA per ADS is defined as adjusted EBITDA divided by total number of ADS on a diluted basis. 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 items that were significant in the third quarter of 2014 and the corresponding period of 2013, 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” and “Reconciliations of A djusted Operating Income and Adjusted Operating Income Margin ” set forth at the end of this release.
 
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 	IR-178	
CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)

 	 	As of December 31,	 	 	As of September 30,	 	 	As of September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	
ASSETS:	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents 	 	 	2,288,623	 	 	 	2,007,621	 	 	 	327,081	 	
Restricted cash 	 	 	11,100	 	 	 	10,155	 	 	 	1,654	 	
Short term investments 	 	 	253,900	 	 	 	718,900	 	 	 	117,123	 	
Accounts receivable, net 	 	 	199,482	 	 	 	200,330	 	 	 	32,638	 	
Insurance premium receivables 	 	 	57	 	 	 	262	 	 	 	43	 	
Other receivables 	 	 	254,776	 	 	 	81,798	 	 	 	13,326	 	
Deferred tax assets 	 	 	4,858	 	 	 	-	 	 	 	-	 	
Amounts due from related parties 	 	 	144,371	 	 	 	205,735	 	 	 	33,518	 	
Other current assets 	 	 	20,634	 	 	 	23,475	 	 	 	3,824	 	
Total current assets 	 	 	3,177,801	 	 	 	3,248,276	 	 	 	529,207	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-current assets:	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant, and equipment, net 	 	 	69,562	 	 	 	52,043	 	 	 	8,479	 	
Goodwill and intangible assets, net 	 	 	107,668	 	 	 	169,799	 	 	 	27,664	 	
Deferred tax assets 	 	 	3,382	 	 	 	2,865	 	 	 	467	 	
Investment in affiliates 	 	 	189,241	 	 	 	211,475	 	 	 	34,453	 	
Other non-current assets 	 	 	13,076	 	 	 	12,176	 	 	 	1,984	 	
Total non-current assets 	 	 	382,929	 	 	 	448,358	 	 	 	73,047	 	
Total assets 	 	 	3,560,730	 	 	 	3,696,634	 	 	 	602,254	 	

Page 9 of 18	

 	IR-178	
CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets-(Continued)
(In thousands)

 	 	As of December 31,	 	 	As of September 30,	 	 	As of September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	
LIABILITIES AND EQUITY:	 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable (including accounts payable of the consolidated variable interest entities (“VIEs”) without recourse to CNinsure Inc. of RMB10,282 and RMB3,491 (US$569) as of December 31, 2013 and September 30, 2014, respectively) 	 	 	92,324	 	 	 	107,804	 	 	 	17,564	 	
Insurance premium payables (including insurance premium payables of the consolidated VIEs without recourse to CNinsure Inc. of RMB223 and RMB1,198 (US$195) as of December 31, 2013 and September 30, 2014, respectively) 	 	 	4,066	 	 	 	5,152	 	 	 	839	 	
Other payables and accrued expenses (including other payables and accrued expense of the consolidated VIEs without recourse to CNinsure Inc. of RMB21,129 and RMB1,473 (US$240) as of December 31, 2013 and September 30, 2014, respectively) 	 	 	147,954	 	 	 	122,159	 	 	 	19,902	 	
Accrued payroll (including accrued payroll of the consolidated VIEs without recourse to CNinsure Inc. of RMB2,172 and RMB772 (US$126) as of December 31, 2013 and September 30, 2014, respectively)  	 	 	39,089	 	 	 	36,710	 	 	 	5,981	 	
Income tax payable (including income tax payable of the consolidated of VIEs without recourse to CNinsure Inc. of RMB2,603 and RMB2,706 (US$441) as of December 31, 2013 and September 30, 2014, respectively) 	 	 	55,992	 	 	 	52,242	 	 	 	8,511	 	
Total current liabilities 	 	 	339,425	 	 	 	324,067	 	 	 	52,797	 	
 
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 	IR-178	
CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets-(Continued)
 (In thousands)

 	 	As of December 31,	 	 	As of September 30,	 	 	As of September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	
Non-current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	
Other tax liabilities 	 	 	50,735	 	 	 	50,842	 	 	 	8,283	 	
Deferred tax liabilities 	 	 	23,808	 	 	 	25,900	 	 	 	4,220	 	
Total non-current liabilities 	 	 	74,543	 	 	 	76,742	 	 	 	12,503	 	
Total liabilities 	 	 	413,968	 	 	 	400,809	 	 	 	65,300	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary shares 	 	 	7,624	 	 	 	7,634	 	 	 	1,244	 	
Additional paid-in capital 	 	 	2,329,962	 	 	 	2,340,525	 	 	 	381,317	 	
Statutory reserves 	 	 	182,740	 	 	 	182,740	 	 	 	29,772	 	
Retained earnings 	 	 	618,885	 	 	 	753,577	 	 	 	122,772	 	
Accumulated other comprehensive loss 	 	 	(111,114	)	 	 	(107,911	)	 	 	(17,581	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total CNinsure Inc. shareholders’ equity 	 	 	3,028,097	 	 	 	3,176,565	 	 	 	517,524	 	
Non-controlling interests 	 	 	118,665	 	 	 	119,260	 	 	 	19,430	 	
Total equity 	 	 	3,146,762	 	 	 	3,295,825	 	 	 	536,954	 	
Total liabilities and equity 	 	 	3,560,730	 	 	 	3,696,634	 	 	 	602,254	 	

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 	IR-178	
 CNINSURE 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,	 	
 	 	2013	 	 	2014	 	 	2014	 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
Net revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues of insurance agency business 	 	 	342,438	 	 	 	404,694	 	 	 	65,932	 	 	 	1,031,642	 	 	 	1,135,697	 	 	 	185,027	 	
Revenues of insurance brokerage business 	 	 	21,469	 	 	 	67,761	 	 	 	11,040	 	 	 	35,259	 	 	 	173,948	 	 	 	28,340	 	
Revenues of claims adjusting business 	 	 	63,846	 	 	 	69,880	 	 	 	11,385	 	 	 	176,712	 	 	 	207,747	 	 	 	33,846	 	
Revenues of other services 	 	 	2,881	 	 	 	-	 	 	 	-	 	 	 	9,572	 	 	 	-	 	 	 	-	 	
Total net revenues 	 	 	430,634	 	 	 	542,335	 	 	 	88,357	 	 	 	1,253,185	 	 	 	1,517,392	 	 	 	247,213	 	
Operating costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs of insurance agency business 	 	 	(261,417	)	 	 	(318,806	)	 	 	(51,940	)	 	 	(795,010	)	 	 	(875,739	)	 	 	(142,675	)	
Costs of insurance brokerage business 	 	 	(16,031	)	 	 	(54,364	)	 	 	(8,857	)	 	 	(26,500	)	 	 	(138,500	)	 	 	(22,564	)	
Costs of claims adjusting business 	 	 	(37,537	)	 	 	(44,898	)	 	 	(7,315	)	 	 	(99,574	)	 	 	(122,431	)	 	 	(19,947	)	
Costs of other services 	 	 	(2,345	)	 	 	-	 	 	 	-	 	 	 	(6,459	)	 	 	-	 	 	 	-	 	
Total operating costs 	 	 	(317,330	)	 	 	(418,068	)	 	 	(68,112	)	 	 	(927,543	)	 	 	(1,136,670	)	 	 	(185,186	)	
Selling expenses 	 	 	(27,337	)	 	 	(26,955	)	 	 	(4,391	)	 	 	(71,804	)	 	 	(75,523	)	 	 	(12,304	)	
General and administrative expenses 	 	 	(84,181	)	 	 	(96,429	)	 	 	(15,710	)	 	 	(250,248	)	 	 	(272,389	)	 	 	(44,377	)	
Total operating costs and expenses 	 	 	(428,848	)	 	 	(541,452	)	 	 	(88,213	)	 	 	(1,249,595	)	 	 	(1,484,582	)	 	 	(241,867	)	
Income from operations 	 	 	1,786	 	 	 	883	 	 	 	144	 	 	 	3,590	 	 	 	32,810	 	 	 	5,346	 	
Other income, net:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investment income 	 	 	3,028	 	 	 	8,811	 	 	 	1,435	 	 	 	4,348	 	 	 	33,062	 	 	 	5,386	 	
Interest income 	 	 	20,721	 	 	 	19,446	 	 	 	3,168	 	 	 	62,589	 	 	 	63,462	 	 	 	10,339	 	
Others, net 	 	 	1,397	 	 	 	1,075	 	 	 	175	 	 	 	3,039	 	 	 	1,735	 	 	 	283	 	
Income before income taxes and income of affiliates 	 	 	26,932	 	 	 	30,215	 	 	 	4,922	 	 	 	73,566	 	 	 	131,069	 	 	 	21,354	 	
Income tax expense 	 	 	(4,743	)	 	 	(4,190	)	 	 	(682	)	 	 	(16,778	)	 	 	(18,726	)	 	 	(3,051	)	
Share of income of affiliates 	 	 	6,207	 	 	 	7,952	 	 	 	1,296	 	 	 	16,851	 	 	 	22,421	 	 	 	3,653	 	
Net income 	 	 	28,396	 	 	 	33,977	 	 	 	5,536	 	 	 	73,639	 	 	 	134,764	 	 	 	21,956	 	
Less: net (loss) income attributable to noncontrolling interests 	 	 	(592	)	 	 	(811	)	 	 	(132	)	 	 	2,697	 	 	 	72	 	 	 	12	 	
Net income attributable to the Company’s shareholders 	 	 	28,988	 	 	 	34,788	 	 	 	5,668	 	 	 	70,942	 	 	 	134,692	 	 	 	21,944	 	

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	  IR-167	 	
 
CNINSURE INC.
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income-(Continued)
(In thousands, except for shares and per share data)

 	 	For The Three Months Ended	 	 	For The Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
Net income per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.03	 	 	 	0.03	 	 	 	0.01	 	 	 	0.07	 	 	 	0.13	 	 	 	0.02	 	
Diluted	 	 	0.03	 	 	 	0.03	 	 	 	0.01	 	 	 	0.07	 	 	 	0.13	 	 	 	0.02	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income per ADS:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.58	 	 	 	0.70	 	 	 	0.11	 	 	 	1.42	 	 	 	2.69	 	 	 	0.44	 	
Diluted	 	 	0.58	 	 	 	0.69	 	 	 	0.11	 	 	 	1.42	 	 	 	2.68	 	 	 	0.44	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares used in calculating net income per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic 	 	 	998,861,526	 	 	 	1,000,565,906	 	 	 	1,000,565,906	 	 	 	998,861,526	 	 	 	999,928,000	 	 	 	999,928,000	 	
Diluted	 	 	998,861,526	 	 	 	1,004,883,981	 	 	 	1,004,883,981	 	 	 	1,001,139,515	 	 	 	1,004,700,996	 	 	 	1,004,700,996	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income 
	 	 	28,396	 	 	 	33,977	 	 	 	5,536	 	 	 	73,639	 	 	 	134,764	 	 	 	21,956	 	
Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments	 	 	(693	)	 	 	(2,434	)	 	 	(396	)	 	 	(4,379	)	 	 	3,203	 	 	 	522	 	
Comprehensive income	 	 	27,703	 	 	 	31,543	 	 	 	5,140	 	 	 	69,260	 	 	 	137,967	 	 	 	22,478	 	
 Less: Comprehensive (loss) income attributable to the noncontrolling interests	 	 	(592	)	 	 	(811	)	 	 	(132	)	 	 	2,697	 	 	 	72	 	 	 	12	 	
Comprehensive income attributable to the CNinsure Inc.’s shareholders	 	 	28,295	 	 	 	32,354	 	 	 	5,272	 	 	 	66,563	 	 	 	137,895	 	 	 	22,466	 	

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	  IR-167	 	
  
CNINSURE INC.
Unaudited Condensed Consolidated Statements of Cash Flow
(In thousands)

 	 	For the Three Months Ended	 	 	For the Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
OPERATING ACTIVITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	28,396	 	 	 	33,977	 	 	 	5,536	 	 	 	73,639	 	 	 	134,764	 	 	 	21,956	 	
Adjustments to reconcile net income to net cash generated from operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	 	 	7,512	 	 	 	7,088	 	 	 	1,155	 	 	 	23,521	 	 	 	22,227	 	 	 	3,621	 	
Amortization of intangible assets	 	 	3,416	 	 	 	4,864	 	 	 	792	 	 	 	10,248	 	 	 	12,098	 	 	 	1,971	 	
Allowance for doubtful receivables	 	 	1,446	 	 	 	784	 	 	 	128	 	 	 	2,642	 	 	 	3,912	 	 	 	637	 	
Compensation expenses associated with stock option	 	 	7,633	 	 	 	4,588	 	 	 	747	 	 	 	30,615	 	 	 	18,914	 	 	 	3,081	 	
Loss (gain) on disposal of property, plant and equipment	 	 	15	 	 	 	134	 	 	 	22	 	 	 	(1	)	 	 	49	 	 	 	8	 	
Investment income	 	 	-	 	 	 	(3,983	)	 	 	(649	)	 	 	-	 	 	 	(14,653	)	 	 	(2,387	)	
Share of income of affiliates	 	 	(6,207	)	 	 	(7,952	)	 	 	(1,296	)	 	 	(16,851	)	 	 	(22,421	)	 	 	(3,653	)	
Changes in operating assets and liabilities	 	 	3,647	 	 	 	15,948	 	 	 	2,598	 	 	 	(34,764	)	 	 	33,316	 	 	 	5,428	 	
Net cash generated from operating activities	 	 	45,858	 	 	 	55,448	 	 	 	9,033	 	 	 	89,049	 	 	 	188,206	 	 	 	30,662	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows used in investing activities:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchase of property, plant and equipment	 	 	(1,731	)	 	 	(1,638	)	 	 	(267	)	 	 	(34,450	)	 	 	(4,583	)	 	 	(747	)	
Proceeds from disposal of property and equipment	 	 	127	 	 	 	8	 	 	 	1	 	 	 	157	 	 	 	366	 	 	 	60	 	
Proceeds from disposal of short term investments	 	 	30,000	 	 	 	53,983	 	 	 	8,795	 	 	 	30,600	 	 	 	70,842	 	 	 	11,542	 	
Purchase of short term investments	 	 	(20,000	)	 	 	(170,000	)	 	 	(27,696	)	 	 	(253,900	)	 	 	(530,000	)	 	 	(86,347	)	
Acquisition of subsidiaries, net of cash	 	 	-	 	 	 	(63,724	)	 	 	(10,382	)	 	 	-	 	 	 	(62,709	)	 	 	(10,216	)	
(Increase) decrease in restricted cash	 	 	(220	)	 	 	463	 	 	 	75	 	 	 	(1,399	)	 	 	945	 	 	 	154	 	
Decrease in other receivables	 	 	-	 	 	 	127,687	 	 	 	20,803	 	 	 	-	 	 	 	122,632	 	 	 	19,979	 	
Purchase of intangible assets	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(118	)	 	 	(19	)	
Return of investment in non-current assets	 	 	-	 	 	 	3,500	 	 	 	570	 	 	 	-	 	 	 	3,900	 	 	 	635	 	
Addition in investment in non-current assets	 	 	-	 	 	 	(7,019	)	 	 	(1,144	)	 	 	-	 	 	 	(7,019	)	 	 	(1,144	)	
(Increase) decrease in amounts due from related parties	 	 	(100,106	)	 	 	13,739	 	 	 	2,239	 	 	 	(84,966	)	 	 	(58,850	)	 	 	(9,588	)	
Net cash used in investing activities	 	 	(91,930	)	 	 	(43,001	)	 	 	(7,006	)	 	 	(343,958	)	 	 	(464,594	)	 	 	(75,691	)	

 
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	  IR-167	 	
 
CNINSURE INC.
Unaudited Condensed Consolidated Statements of Cash Flow-(Continued)
(In thousands)

 	 	For the Three Months Ended	 	 	For the Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows generated from financing
activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition of additional interest in
subsidiary	 	 	-	 	 	 	(11,000	)	 	 	(1,792	)	 	 	-	 	 	 	(11,000	)	 	 	(1,792	)	
Capital injection by noncontrolling
interests	 	 	900	 	 	 	-	 	 	 	-	 	 	 	3,350	 	 	 	-	 	 	 	-	 	
Proceeds on exercise of stock options	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	3,183	 	 	 	518	 	
Net cash generated from (used in) financing
activities	 	 	900	 	 	 	(11,000	)	 	 	(1,792	)	 	 	3,350	 	 	 	(7,817	)	 	 	(1,274	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (decrease) increase in cash and cash
equivalents	 	 	(45,172	)	 	 	1,447	 	 	 	235	 	 	 	(251,559	)	 	 	(284,205	)	 	 	(46,303	)	
Cash and cash equivalents at beginning of
period	 	 	2,315,545	 	 	 	2,008,608	 	 	 	327,242	 	 	 	2,525,618	 	 	 	2,288,623	 	 	 	372,862	 	
Effect of exchange rate changes on cash and cash equivalents	 	 	(693	)	 	 	(2,434	)	 	 	(396	)	 	 	(4,379	)	 	 	3,203	 	 	 	522	 	
Cash and cash equivalents at end of
period	 	 	2,269,680	 	 	 	2,007,621	 	 	 	327,081	 	 	 	2,269,680	 	 	 	2,007,621	 	 	 	327,081	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest paid	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Income taxes paid	 	 	5,470	 	 	 	3,480	 	 	 	567	 	 	 	20,242	 	 	 	17,870	 	 	 	2,911	 	
 
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	  IR-167	 	
 
CNINSURE INC.
Reconciliations of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin
(In thousands, unaudited)

 	 	For The Three Months Ended	 	 	For The Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
Net income	 	 	28,396	 	 	 	33,977	 	 	 	5,536	 	 	 	73,639	 	 	 	134,764	 	 	 	21,956	 	
Income tax expense	 	 	4,743	 	 	 	4,190	 	 	 	682	 	 	 	16,778	 	 	 	18,726	 	 	 	3,051	 	
Investment income	 	 	(3,028	)	 	 	(8,811	)	 	 	(1,435	)	 	 	(4,348	)	 	 	(33,062	)	 	 	(5,386	)	
Interest income	 	 	(20,721	)	 	 	(19,446	)	 	 	(3,168	)	 	 	(62,589	)	 	 	(63,462	)	 	 	(10,339	)	
Depreciation	 	 	7,512	 	 	 	7,088	 	 	 	1,155	 	 	 	23,521	 	 	 	22,227	 	 	 	3,621	 	
Amortization of intangible assets	 	 	3,416	 	 	 	4,864	 	 	 	792	 	 	 	10,248	 	 	 	12,098	 	 	 	1,971	 	
Compensation expenses associated with stock option	 	 	7,633	 	 	 	4,588	 	 	 	747	 	 	 	30,615	 	 	 	18,914	 	 	 	3,081	 	
Adjusted EBITDA	 	 	27,951	 	 	 	26,450	 	 	 	4,309	 	 	 	87,864	 	 	 	110,205	 	 	 	17,955	 	
Total net revenues	 	 	430,634	 	 	 	542,335	 	 	 	88,357	 	 	 	1,253,185	 	 	 	1,517,392	 	 	 	247,213	 	
Adjusted EBITDA Margin	 	 	6.5	%	 	 	4.9	%	 	 	4.9	%	 	 	7.0	%	 	 	7.3	%	 	 	7.3	%	
 
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	  IR-167	 	
 
CNINSURE INC.
Reconciliations of Adjusted Operating Income and Adjusted Operating Income Margin
(In thousands, unaudited)

 	 	For The Three Months Ended	 	 	For The Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2013	 	 	2014	 	 	2014	 	 	2013	 	 	2014	 	 	2014	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
Operating income	 	 	1,786	 	 	 	883	 	 	 	144	 	 	 	3,590	 	 	 	32,810	 	 	 	5,346	 	
CNpad’s R&D and promotion expenses	 	 	7,220	 	 	 	8,368	 	 	 	1,363	 	 	 	20,062	 	 	 	23,363	 	 	 	3,806	 	
Chetong.net’s R&D and promotion
expenses	 	 	-	 	 	 	1,060	 	 	 	173	 	 	 	-	 	 	 	1,060	 	 	 	173	 	
eHuzhu’s expenses	 	 	-	 	 	 	7,585	 	 	 	1,236	 	 	 	-	 	 	 	7,585	 	 	 	1,236	 	
Adjusted Operating Income	 	 	9,006	 	 	 	17,896	 	 	 	2,916	 	 	 	23,652	 	 	 	64,818	 	 	 	10,561	 	
Total net revenues	 	 	430,634	 	 	 	542,335	 	 	 	88,357	 	 	 	1,253,185	 	 	 	1,517,392	 	 	 	247,213	 	
Adjusted Operating Income Margin	 	 	2.1	%	 	 	3.3	%	 	 	3.3	%	 	 	1.9	%	 	 	4.3	%	 	 	4.3	%	
 
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	  IR-167	 	

For more information, please contact:
 
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
Source: CNinsure Inc.

 
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