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 August 2011
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):            
This Form 6-K is being incorporated by reference into the Registrant’s Registration Statement on Form F-3, filed with the Securities and Exchange Commission on November 5, 2009 (File No. 333-162895, as amended by Amendment No. 1, filed on November 19, 2009).

 

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/ Peng Ge	

Name:	 	Peng Ge	
Title:	 	Chief Financial Officer	
Date: August 30, 2011

Exhibit Index
Exhibit 99.1 – Press Release

Exhibit 99.1

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CNinsure Reports Second Quarter and First Half 2011 Unaudited Financial Results
–Non-GAAP Net Income Attributable to the Company’s Shareholders Up 19.5% Year-over-Year–
GUANGZHOU, August 29, 2011 (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 second quarter and first half ended June 30, 2011. 1
Financial Highlights:
Highlights for Second Quarter 2011
 
•	 	Total net revenues: RMB400.7 million (US$62.0 million), representing an increase of 32.2% from the corresponding period of 2010.	
 
•	 	Operating income: RMB103.8 million (US$16.1 million), representing an increase of 15.1% from the corresponding period of 2010.	
 
•	 	Excluding net income from discontinued operations2, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business, adjusted net income attributable to the Company’s shareholders (non-GAAP): RMB108.1 million (US$16.7 million), representing an increase of 19.5% from the corresponding period of 2010.	
 
•	 	Excluding net income from discontinued operations, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business, diluted net income per ADS(non-GAAP): RMB2.114 (US$0.327), representing an increase of 11.2%, respectively, from the corresponding period of 2010.	
Highlights for First Half 2011
 
•	 	Total net revenues: RMB714.4 million (US$110.5 million), representing an increase of 30.5% from the corresponding period of 2010.	
 
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 RMB6.4635 to US$1.00, the effective noon buying rate as of Jun 30, 2011 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 	Following the sale of Beijing Datong Investment Management Co., Ltd. (“Datong”), a company primarily engaged in the distribution of life insurance products, to Winner Sight Global Limited, an affiliated entity of Warburg Pincus LLC, on March 25, 2011, the Company is required to present its financial results on a continuing and discontinued basis. Profits and losses related to Datong are presented as discontinued operations while profits and losses for the remaining business are presented as continuing operations.	
 
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•	 	Operating income: RMB192.5 million (US$29.8 million), representing an increase of 23.0% from the corresponding period of 2010.	
 
•	 	Excluding net income from discontinued operations, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business, adjusted net income attributable to the Company’s shareholders (non-GAAP): RMB190.8 million (US$29.5 million), representing an increase of 27.3% from the corresponding period of 2010. Net income from discontinued operations: RMB157.3 million (US$24.3 million), representing an increase of 778.6% from the corresponding period of 2010.	
 
•	 	Excluding net income from discontinued operations, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business, adjusted diluted net income per ADS (non-GAAP): RMB3.724 (US$0.576), respectively, representing an increase of 17.6% from the corresponding period of 2010.	
Financial Results for the Second Quarter Ended June 30, 2011
Total net revenues were RMB400.7 million (US$62.0 million) for the second quarter of 2011, representing an increase of 32.2% from RMB303.1 million for the corresponding period of 2010. The increase was primarily driven by the growth of sales volume and rising P&C insurance commission rate.
Total operating costs and expenses were RMB296.9 million (US$45.9 million) for the second quarter of 2011, representing an increase of 39.4% from RMB212.9 million for the corresponding period of 2010.
Commissions and fees expenses were RMB205.2 million (US$31.7 million) for the second quarter of 2011, representing an increase of 48.1% from RMB138.5 million for the corresponding period of 2010. The increase was primarily due to sales growth and largely tracked the increase in commission paid-out ratio to sales agents.
Selling expenses were RMB19.3 million (US$3.0 million) for the second quarter of 2011, representing an increase of 22.4% from RMB15.8 million for the corresponding period of 2010, primarily due to sales growth and increased headcount and salary for sales outlets.
General and administrative expenses were RMB72.4 million (US$11.2 million) for the second quarter of 2011, representing an increase of 23.5% from RMB58.6 million for the corresponding period of 2010. The increase was primarily attributable to the following:
 
(1)	an increase of 31.3% in payroll expense from RMB20.1 million for the second quarter of 2010 to RMB26.4 million (US$4.1 million) for the second quarter of 2011 primarily due to pay raises; and	
 
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(2)	an increase of 29.9% in amortization of intangible assets from RMB5.0 million for the second quarter of 2010 to RMB6.5 million (US$1.0 million) for the second quarter of 2011, largely as a result of the acquisitions made in the second half of 2010;	
As a result of the foregoing factors, operating income was RMB103.8 million (US$16.1 million) for the second quarter of 2011, representing an increase of 15.1% from RMB90.2 million for the corresponding period of 2010. Operating margin was 25.9% for the second quarter of 2011, compared to 29.7% for the corresponding period of 2010.
Interest income for the second quarter of 2011 was RMB13.1 million (US$2.0 million), representing an increase of 114.6% from RMB6.1 million for the corresponding period of 2010, primarily due to increase in bank deposits and RMB interest rate.
Income tax expense for the second quarter of 2011 was RMB22.8 million (US$3.5 million), representing a decrease of 4.7% from RMB23.9 million for the corresponding period of 2010. The effective income tax rate applicable to the Company was 19.5% for the second quarter of 2011, compared to 19.2% for the corresponding period of 2010.
Net income from continuing operations was RMB97.5 million (US$15.1 million) for the second quarter of 2011, representing a decrease of 6.4% from RMB104.2 million for the corresponding period of 2010. Net income from continuing operations from the second quarter of 2010 included a RMB20.9 million one-off investment income incurred by business combination achieved in stages, net of tax, related to the Company’s acquisitions of additional 41% equity interests in each of two insurance agencies to increase its equity interests in both agencies from 10% to 51% in the second quarter of 2010.
Net margin for the continuing operations was 24.3% for the second quarter of 2011 compared to 34.4% for the corresponding period of 2010. Excluding one-off investment income incurred by business combination achieved in stages, net of tax, adjusted net margin for the second quarter of 2010 was 27.5%.
Net income from discontinued operations was nil for the second quarter of 2011. Net income from discontinued operations was RMB13.2 million for the second quarter of 2010.
Net income attributable to the Company’s shareholders was RMB100.2 million (US$15.5 million) for the second quarter of 2011, representing a decrease of 15.5% from RMB118.6 million for the corresponding period of 2010.
Excluding net income from discontinued operations and the afore-mentioned investment income incurred by business combination achieved in stages, net of tax,  share-based compensation expense and strategic spending on e-commerce insurance business,  net income attributable to the Company’s shareholders  (non-GAAP) was RMB108.1 million (US$16.7 million) for the second quarter of 2011, representing an increase of 19.5% from RMB90.4 million from the corresponding period of 2010.
 
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Basic net income per ADS from continuing operations was RMB2.001 (US$0.310) for the second quarter of 2011, representing a decrease of 13.4% from RMB2.312 for the corresponding period of 2010. Fully diluted net income per ADS from continuing operations was RMB1.961 (US$0.303) for the second quarter of 2011, representing a decrease of 11.6% from RMB2.218 from the corresponding period of 2010.
Basic net income per ADS was RMB2.001 (US$0.310) for the second quarter of 2011, representing a decrease of 23.0% from RMB2.600 for the corresponding period of 2010. Fully diluted net income per ADS was RMB1.961 (US$0.303) for the second quarter of 2011, representing a decrease of 21.4% from RMB2.494 for the corresponding period of 2010.
Non-GAAP adjusted fully diluted net income per ADS which excluded net income from discontinued operations and the afore-mentioned investment income incurred by business combination achieved in stages, net of tax,  share-based compensation expense and strategic spending on e-commerce insurance business, was RMB2.114 (US$0.327), representing an increase of 11.2% from RMB1.901 for the corresponding period of 2010.
As of June 30, 2011, the Company had RMB2.4 billion (US$379.0 million) in cash and cash equivalents.
Financial Results for the First Half Ended June 30, 2011
Total net revenues for the first half ended June 30, 2011 were RMB714.4 million (US$110.5 million), representing an increase of 30.5% from RMB547.6 million for the corresponding period of 2010. The increase was primarily driven by the growth of sales volume and rising P&C insurance commission rate.
Total operating costs and expenses were RMB521.9 million (US$80.7 million) for the first half of 2011, representing an increase of 33.4% from RMB391.1 million for the corresponding period of 2010.
Commissions and fees expenses were RMB358.7 million (US$55.5 million) for the first half of 2011, representing an increase of 39.9% from RMB256.5 million for the corresponding period of 2010. The increase was primarily due to sales growth and largely tracked the increase in commissions paid-out to sales agents.
Selling expenses were RMB38.0 million (US$5.9 million) for the first half of 2011, representing an increase of 38.5% from RMB27.4 million for the corresponding period of 2010, primarily due to sales growth and increased headcount and salary in sales outlets.
General and administrative expenses were RMB125.3 million (US$19.4 million) for the first half of 2011, representing an increase of 16.8% from RMB107.2 million for the corresponding period of 2010. The increase was primarily attributable to the following:
 
(1)	an increase of 60.4% in amortization of intangible assets from RMB8.3 million for the first half of 2010 to RMB13.3 million (US$2.1 million) for the first half of 2011, largely as a result of the acquisitions in 2010;	
 
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(2)	an increase of 27.2% in payroll expense from RMB38.3 million for the first half of 2010 to RMB48.7 million (US$7.5 million) for the first half of 2011, largely as a result of the raise in salary for employees starting from the first quarter of 2011; and	
 
(3)	an increase of 10.1% in depreciation of fixed assets from RMB8.9 million for the first half of 2010 to RMB9.8 million (US$1.5 million) for the first half of 2011.	
This increase in the general and administrative expenses was offset by a decrease of 71.5% in share-based compensation expenses from RMB10.4 million for the first half of 2010 to RMB3.0 million (US$0.5 million) for the first half of 2011, as a result of stock option forfeiture in the first quarter of 2011 as various directors, officers and employees failed to meet certain key performance targets in 2010.
Excluding share-based compensation expenses and strategic spending on e-commerce insurance business, general and administrative expenses were RMB118.3 million (US$18.3 million) for the first half of 2011, representing an increase of 22.1% from RMB96.9 million for the corresponding period of 2010.
As a result of the foregoing factors, operating income was RMB192.5 million (US$29.8 million) for the first half of 2011, representing an increase of 23.0% from RMB156.5 million for the corresponding period of 2010. Operating margin was 26.9% for the first half of 2011, compared to 28.6% for the corresponding period of 2010.
Interest income for the first half of 2011 was RMB21.8 million (US$3.4 million), representing an increase of 76.8% from RMB12.3 million for the corresponding period of 2010, primarily due to increase in bank deposits and RMB interest rate.
Income tax expense for the first half of 2011 was RMB43.2 million (US$6.7 million), representing a decrease of 4.5% from RMB45.2 million for the corresponding period of 2010. The effective income tax rate applicable to the Company was 20.0% for the first half of 2011, compared to 21.8% for the corresponding period of 2010.
Net income from continuing operations was RMB177.6 million (US$27.5 million) for the first half of 2011, representing an increase of 4.9% from RMB169.3 million for the corresponding period of 2010. Net income from continuing operations for the first half of 2010 included a RMB28.5 million one-off investment income incurred by business combination achieved in stages, net of tax, related to the acquisitions of additional 41% equity interests in each of three insurance agencies to increase its equity interests in the agencies from 10% to 51% in the first half of 2010.
Net margin for the continuing operations was 24.9% for the first half of 2011 compared to 30.9% for the corresponding period of 2010. Excluding one-off investment income incurred by business combination achieved in stages, adjusted net margin for the first half of 2010 was 25.7%.
 
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Net income from discontinued operations was RMB157.3 million (US$24.3 million) for the first half of 2011, mainly representing a disposal gain from the sale of Datong in the first quarter of 2011. Net income from discontinued operations was RMB17.9 million for the first half of 2010, representing net income from operations of Datong contributed to the group. The year-over-year increase was 778.6%.
Net income attributable to the Company’s shareholders was RMB341.1 million (US$52.8 million) for the first half of 2011, representing an increase of 83.4% from RMB186.0 million for the corresponding period of 2010.
Excluding net income from discontinued operations, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business, net income attributable to the Company’s shareholders  (non-GAAP) was RMB190.8 million (US$29.5 million) for the first half of 2011, representing an increase of 27.3% from RMB149.9 million from the corresponding period of 2010.
Basic net income per ADS from continuing operations was RMB3.665 (US$0.567) for the first half of 2011, representing a decrease of 0.5% from RMB3.684 for the corresponding period of 2010. Fully diluted net income per ADS from continuing operations was RMB3.588 (US$0.555) for the first half of 2011, representing an increase of 1.1% from RMB3.550 from the corresponding period of 2010.
Basic net income per ADS from discontinued operations was RMB3.135 (US$0.485) for the first half of 2011, representing an increase of 699.2% from RMB0.392 for the corresponding period of 2010. Fully diluted net income per ADS from discontinued operations was RMB3.070 (US$0.475) for the first half of 2011, representing an increase of 711.9% from RMB0.378 from the corresponding period of 2010.
Basic net income per ADS was RMB6.800 (US$1.052) for the first half of 2011, representing an increase of 66.8% from RMB4.076 for the corresponding period of 2010. Fully diluted net income per ADS was RMB6.658 (US$1.030) for the first half of 2011, representing an increase of 69.5% from RMB3.928 for the corresponding period of 2010.
Non-GAAP adjusted fully diluted net income per ADS which excluded net income from discontinued operations, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business was RMB3.724 (US$0.576), representing an increase of 17.6% from RMB3.166 for the corresponding period of 2010.
Recent Developments:
 
•	 	On August 17 and June 27, 2011, Shenzhen Inscom E-commerce Co. Ltd. (“Inscom”), an affiliated subsidiary of CNinsure, entered into an e-commerce strategic partnership with China Pacific Property Insurance Co. Ltd. and Sunshine Property and Casualty Insurance Co., Ltd., respectively, pursuant to which both parties of the agreements will expand their scope of cooperation to include online sales and telesales through Inscom’s e-commerce platform. They also agree to enhance collaboration on market development, product design and customer services. Both parties’ network platforms will be interconnected to each other in order to facilitate transaction processing.	
 
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•	 	On July 15, 2011, CNinsure announced that its affiliated subsidiary, Fanhua Insurance Surveyors & Loss Adjustors Co., Ltd., was granted a three-year Financial Institution Headquarter Treatment (“FIHT”) by Shenzhen Municipal Government. Upon obtaining FIHT, Fanhua Insurance Surveyors & Loss Adjustors Co., Ltd. was awarded a RMB8,000,000 cash bonus including a one-off registration bonus and tax benefits, which will be recognized in the third quarter 2011 financial statements. It will also enjoy preferential treatment in the purchase of land and property and housing allowance for its senior management.	
 
•	 	As of June 30, 2011, CNinsure’s distribution and service network consisted of 582 sales and services outlets operating in 23 provinces, compared to 537 3  sales and service outlets operating in 23 provinces as of June 30, 2010. CNinsure had 44,971 sales agents and 1,364 professional claims adjustors as of June 30, 2011, compared to 35,751 4  sales agents and 1,358 professional claims adjustors as of June 30, 2010.	
 
•	 	On June 7, 2011, CNinsure was awarded 2010 Insurance Intermediary Star at the 1st Insurance Industry Brand Competitiveness Summit co-hosted by prestigious financial media and websites including  Securities Daily  and www. jrj.com .	
 
•	 	Net revenues from commissions and fees derived from the property and casualty insurance, life insurance and claims adjusting businesses for the second quarter of 2011 each contributed 68.1%, 19.7% and 12.2% of the Company’s total net revenues, respectively, compared to 63.8%, 22.9% 5 , 13.3%, respectively, in the corresponding period of 2010.	
 
•	 	Total spending for the construction of e-commerce platform for the second quarter of 2011 was RMB2.4 million (US$0.4 million), primarily incurred by research and development and payroll for the R&D professionals.	
 
3 	Excluding the sales outlets of Datong.	
4 	Excluding the sales agents of Datong.	
5 	Excluding the operations of Datong.	
 
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About CNinsure Inc.
CNinsure is a leading independent 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 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 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 August 29, 2011, 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.
 
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About Non-GAAP Financial Measures
In addition to CNinsure’s consolidated financial results under GAAP, the Company also provides non-GAAP financial measures, including 1) non-GAAP net income attributable to shareholders for the second quarter and first half of 2011 and the corresponding period of 2010, representing net income attributable to shareholders excluding net income from discontinued operations, net of tax, and investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business; and 2) non-GAAP diluted net income per ADS for the second quarter and first half of 2011 and the corresponding period of 2010, representing diluted net income per ADS excluding net income from discontinued operations, net of tax, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business.
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. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude the net income from discontinued operations, net of tax, and investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business for the second quarter and the first half of 2011 and the corresponding period of 2010, which were significant in the second quarter and first half of 2011 and the corresponding period of 2010. 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. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of GAAP financial measures to non-GAAP financial measures” set forth at the end of this release.
 
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CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)

 	  	As of December 31,
2010	 	  	As of June 30,
2011	 	  	As of June  30,
2011	 	
 	  	RMB	 	  	RMB	 	  	US$	 	
 	 	 	 	
ASSETS:	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	
Current assets:	  	 	 	 	  	 	 	 	  	 	 	 	
Cash and cash equivalents	  	 	1,924,884	  	  	 	2,449,849	  	  	 	379,028	  	
Restricted cash	  	 	9,177	  	  	 	6,183	  	  	 	957	  	
Short term investment	  	 	—  	  	  	 	15,150	  	  	 	2,344	  	
Accounts receivable, net	  	 	243,175	  	  	 	167,736	  	  	 	25,951	  	
Insurance premium receivables	  	 	92	  	  	 	133	  	  	 	21	  	
Other receivables	  	 	67,034	  	  	 	61,994	  	  	 	9,591	  	
Deferred tax assets	  	 	5,691	  	  	 	2,574	  	  	 	398	  	
Amounts due from related parties	  	 	40,000	  	  	 	—  	  	  	 	—  	  	
Other current assets	  	 	12,372	  	  	 	14,628	  	  	 	2,263	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total current assets	  	 	2,302,425	  	  	 	2,718,247	  	  	 	420,553	  	
 	 	 	 	
Non-current assets:	  	 	 	 	  	 	 	 	  	 	 	 	
Property, plant, and equipment, net	  	 	102,175	  	  	 	93,444	  	  	 	14,457	  	
Goodwill	  	 	1,154,373	  	  	 	1,037,985	  	  	 	160,592	  	
Intangible assets, net	  	 	145,653	  	  	 	117,085	  	  	 	18,115	  	
Deferred tax assets	  	 	6,755	  	  	 	1,635	  	  	 	253	  	
Investment in affiliates	  	 	139,116	  	  	 	144,444	  	  	 	22,348	  	
Other non-current assets	  	 	3,959	  	  	 	3,708	  	  	 	573	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total non-current assets	  	 	1,552,031	  	  	 	1,398,301	  	  	 	216,338	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total assets	  	 	3,854,456	  	  	 	4,116,548	  	  	 	636,891	  	

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

 	  	As of December 31,
2010	 	  	As of June  30,
2011	 	  	As of June 30,
2011	 	
 	  	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 RMB75,285 and RMB76,408 (US$11,821) as of December 31, 2010 and June 30, 2011, respectively)	  	 	89,573	  	  	 	90,446	  	  	 	13,993	  	
Insurance premium payables (including insurance premium payables of the consolidated VIEs without recourse to CNinsure Inc. of RMB1,364 and RMB291 (US$45) as of December 31, 2010 and June 30, 2011, respectively)	  	 	1,364	  	  	 	291	  	  	 	45	  	
Other payables and accrued expenses (including other payables and accrued expense of the consolidated VIEs without recourse to CNinsure Inc. of RMB52,725 and RMB43,350 (US$6,707) as of December 31, 2010 and June 30, 2011, respectively)	  	 	93,460	  	  	 	71,029	  	  	 	10,989	  	
Accrued payroll (including accrued payroll of the consolidated VIEs without recourse to CNinsure Inc. of RMB27,158 and RMB25,022 (US$3,871) as of December 31, 2010 and June 30, 2011, respectively)	  	 	31,237	  	  	 	28,915	  	  	 	4,474	  	
Income tax payable (including income tax payable of the consolidated of VIEs without recourse to CNinsure Inc. of RMB32,134 and RMB13,986 (US$2,164) as of December 31, 2010 and June 30, 2011, respectively)	  	 	34,927	  	  	 	50,326	  	  	 	7,786	  	
Amounts due to related parties (including amounts due to related parties of the consolidated of VIEs without recourse to CNinsure Inc. of RMB7,800 and Nil as of December 31, 2010 and June 30, 2011, respectively)	  	 	37,800	  	  	 	—  	  	  	 	—  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total current liabilities	  	 	288,361	  	  	 	241,007	  	  	 	37,287	  	
 
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CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets-(Continued)
(In thousands)

 	  	As of December 31,
2010	 	 	As of June  30,
2011	 	 	As of June  30,
2011	 	
 	  	RMB	 	 	RMB	 	 	US$	 	
 	 	 	 	
Non-current liabilities:	  	 	 	 	 	 	 	 	 	 	 	 	
Other tax liabilities (including non-current portion of other tax liabilities of the consolidated VIEs without recourse to CNinsure Inc. of Nil and Nil as of December 31, 2010 and June 30, 2011, respectively)	  	 	5,519	  	 	 	10,331	  	 	 	1,598	  	
Deferred tax liabilities (including non-current portion of deferred tax liabilities of the consolidated VIEs without recourse to CNinsure Inc. of Nil and Nil as of December 31, 2010 and June 30, 2011, respectively)	  	 	43,513	  	 	 	36,597	  	 	 	5,662	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total non-current liabilities	  	 	49,032	  	 	 	46,928	  	 	 	7,260	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	337,393	  	 	 	287,935	  	 	 	44,547	  	
 	 	 	 	
Ordinary shares	  	 	7,649	  	 	 	7,645	  	 	 	1,183	  	
Additional paid-in capital	  	 	2,261,849	  	 	 	2,255,852	  	 	 	349,014	  	
Statutory reserves	  	 	136,681	  	 	 	133,148	  	 	 	20,600	  	
Retained earnings	  	 	738,165	  	 	 	1,082,788	  	 	 	167,523	  	
Accumulated other comprehensive loss	  	 	(83,360	) 	 	 	(91,098	) 	 	 	(14,094	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total CNinsure Inc. shareholders’ equity	  	 	3,060,984	  	 	 	3,388,335	  	 	 	524,226	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests	  	 	456,079	  	 	 	440,278	  	 	 	68,118	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	3,517,063	  	 	 	3,828,613	  	 	 	592,344	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	 	3,854,456	  	 	 	4,116,548	  	 	 	636,891	  	

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CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except for shares and per share data)

 	 	For The Three Months Ended	 	 	For The Six Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	2010	 	 	2011	 	 	2011	 	 	2010	 	 	2011	 	 	2011	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
 	 	 	 	 	 	 	
Net revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commissions and fees	 	 	303,037	  	 	 	400,562	  	 	 	61,973	  	 	 	547,508	  	 	 	713,936	  	 	 	110,456	  	
Other service fees	 	 	57	  	 	 	112	  	 	 	17	  	 	 	86	  	 	 	464	  	 	 	72	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total net revenues	 	 	303,094	  	 	 	400,674	  	 	 	61,990	  	 	 	547,594	  	 	 	714,400	  	 	 	110,528	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commissions and fees	 	 	(138,531	) 	 	 	(205,180	) 	 	 	(31,744	) 	 	 	(256,468	) 	 	 	(358,676	) 	 	 	(55,492	) 	
Selling expenses	 	 	(15,760	) 	 	 	(19,285	) 	 	 	(2,984	) 	 	 	(27,413	) 	 	 	(37,955	) 	 	 	(5,872	) 	
General and administrative expenses	 	 	(58,634	) 	 	 	(72,436	) 	 	 	(11,207	) 	 	 	(107,230	) 	 	 	(125,263	) 	 	 	(19,380	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating costs and expenses	 	 	(212,925	) 	 	 	(296,901	) 	 	 	(45,935	) 	 	 	(391,111	) 	 	 	(521,894	) 	 	 	80,744	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from operations	 	 	90,169	  	 	 	103,773	  	 	 	16,055	  	 	 	156,483	  	 	 	192,506	  	 	 	29,784	  	
Other income, net:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investment income	 	 	27,820	  	 	 	—  	  	 	 	—  	  	 	 	38,050	  	 	 	—  	  	 	 	—  	  	
Interest income	 	 	6,121	  	 	 	13,138	  	 	 	2,033	  	 	 	12,335	  	 	 	21,815	  	 	 	3,375	  	
Others, net	 	 	153	  	 	 	278	  	 	 	43	  	 	 	257	  	 	 	1,131	  	 	 	175	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations before income taxes and income of affiliates and discontinued operations	 	 	124,263	  	 	 	117,189	  	 	 	18,131	  	 	 	207,125	  	 	 	215,452	  	 	 	33,334	  	
Income tax expense	 	 	(23,915	) 	 	 	(22,800	) 	 	 	(3,528	) 	 	 	(45,204	) 	 	 	(43,175	) 	 	 	(6,680	) 	
Share of income of affiliates	 	 	3,835	  	 	 	3,080	  	 	 	477	  	 	 	7,335	  	 	 	5,327	  	 	 	824	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income from continuing operations	 	 	104,183	  	 	 	97,469	  	 	 	15,080	  	 	 	169,256	  	 	 	177,604	  	 	 	27,478	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income from discontinued operations, net of tax	 	 	13,158	  	 	 	—  	  	 	 	—  	  	 	 	17,899	  	 	 	157,253	  	 	 	24,330	  	

Net income	 	 	117,341	  	 	 	97,469	  	 	 	15,080	  	 	 	187,155	  	 	 	334,857	  	 	 	51,808	  	

Less: net gain (loss) attributable to noncontrolling interests	 	 	(1,295	) 	 	 	(2,776	) 	 	 	(429	) 	 	 	1,171	  	 	 	(6,232	) 	 	 	(964	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to the Company’s shareholders	 	 	118,636	  	 	 	100,245	  	 	 	15,509	  	 	 	185,984	  	 	 	341,089	  	 	 	52,772	  	

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

 	 	For The Three Months Ended	 	 	For The Six Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	2010	 	 	2011	 	 	2011	 	 	2010	 	 	2011	 	 	2011	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
Net income per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Net income from continuing operations	 	 	0.116	  	 	 	0.100	  	 	 	0.015	  	 	 	0.184	  	 	 	0.183	  	 	 	0.029	  	
Net income from discontinued operations	 	 	0.014	  	 	 	—  	  	 	 	—  	  	 	 	0.020	  	 	 	0.157	  	 	 	0.024	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	0.130	  	 	 	0.100	  	 	 	0.015	  	 	 	0.204	  	 	 	0.340	  	 	 	0.053	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Net income from continuing operations	 	 	0.111	  	 	 	0.098	  	 	 	0.015	  	 	 	0.177	  	 	 	0.179	  	 	 	0.028	  	
Net income from discontinued operations	 	 	0.014	  	 	 	—  	  	 	 	—  	  	 	 	0.019	  	 	 	0.154	  	 	 	0.024	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	0.125	  	 	 	0.098	  	 	 	0.015	  	 	 	0.196	  	 	 	0.333	  	 	 	0.052	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income per ADS:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Net income from continuing operations	 	 	2.312	  	 	 	2.001	  	 	 	0.310	  	 	 	3.684	  	 	 	3.665	  	 	 	0.567	  	
Net income from discontinued operations	 	 	0.288	  	 	 	—  	  	 	 	—  	  	 	 	0.392	  	 	 	3.135	  	 	 	0.485	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	2.600	  	 	 	2.001	  	 	 	0.310	  	 	 	4.076	  	 	 	6.800	  	 	 	1.052	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Net income from continuing operations	 	 	2.218	  	 	 	1.961	  	 	 	0.303	  	 	 	3.550	  	 	 	3.588	  	 	 	0.555	  	
Net income from discontinued operations	 	 	0.276	  	 	 	—  	  	 	 	—  	  	 	 	0.378	  	 	 	3.070	  	 	 	0.475	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	2.494	  	 	 	1.961	  	 	 	0.303	  	 	 	3.928	  	 	 	6.658	  	 	 	1.030	  	

Shares used in calculating net income per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Basic	 	 	912,561,283	  	 	 	1,002,006,986	  	 	 	1,002,006,986	  	 	 	912,529,329	  	 	 	1,003,179,840	  	 	 	1,003,179,840	  	
Diluted	 	 	951,230,096	  	 	 	1,022,443,935	  	 	 	1,022,443,935	  	 	 	946,882,743	  	 	 	1,024,631,867	  	 	 	1,024,631,867	  	
 
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CNINSURE INC.
Unaudited Condensed Consolidated Statements of Cash Flow
(In thousands)

 	  	For the Three Months Ended June 30,	 	 	For The Six Months Ended June 30,	 	
 	  	2010	 	 	2011	 	 	2011	 	 	2010	 	 	2011	 	 	2011	 	
 	  	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
OPERATING ACTIVITIES	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	117,341	  	 	 	97,469	  	 	 	15,080	  	 	 	187,155	  	 	 	334,857	  	 	 	51,808	  	
Adjustments to reconcile net income to net cash generated from operating activities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	7,448	  	 	 	6,746	  	 	 	1,044	  	 	 	13,513	  	 	 	13,954	  	 	 	2,159	  	
Amortization of acquired intangible assets	  	 	5,340	  	 	 	6,511	  	 	 	1,007	  	 	 	8,917	  	 	 	13,252	  	 	 	2,050	  	
Allowance for doubtful receivables	  	 	2,015	  	 	 	496	  	 	 	77	  	 	 	2,795	  	 	 	(747	) 	 	 	(116	) 	
Compensation expenses associated with stock options	  	 	5,817	  	 	 	5,407	  	 	 	837	  	 	 	10,359	  	 	 	2,950	  	 	 	456	  	
Loss (gain) on disposal of property, plant and equipment	  	 	(32	) 	 	 	174	  	 	 	27	  	 	 	(122	) 	 	 	207	  	 	 	32	  	
 	 	 	 	 	 	 	
Gain on disposal of subsidiaries	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(157,253	) 	 	 	(24,329	) 	
 	 	 	 	 	 	 	
Investment income	  	 	(27,820	) 	 	 	—  	  	 	 	—  	  	 	 	(38,050	) 	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	
Share of income of affiliates	  	 	(3,835	) 	 	 	(3,080	) 	 	 	(477	) 	 	 	(7,335	) 	 	 	(5,327	) 	 	 	(824	) 	
 	 	 	 	 	 	 	
Deferred taxes	  	 	5,199	  	 	 	(130	) 	 	 	(20	) 	 	 	4,906	  	 	 	(22,241	) 	 	 	(3,441	) 	
Changes in operating assets and liabilities	  	 	(21,129	) 	 	 	16,159	  	 	 	2,500	  	 	 	(37,663	) 	 	 	68,108	  	 	 	10,537	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash generated from operating activities	  	 	90,344	  	 	 	129,752	  	 	 	20,075	  	 	 	144,475	  	 	 	247,760	  	 	 	38,332	  	

Cash flows from investing activities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Other investments	  	 	—  	  	 	 	30,342	  	 	 	4,694	  	 	 	(325	) 	 	 	(14,900	) 	 	 	(2,305	) 	
Purchase of property, plant and equipment	  	 	(8,255	) 	 	 	(13,652	) 	 	 	(2,112	) 	 	 	(11,845	) 	 	 	(15,862	) 	 	 	(2,454	) 	
Proceeds from disposal of property and equipment	  	 	394	  	 	 	596	  	 	 	92	  	 	 	709	  	 	 	712	  	 	 	110	  	
Acquisition of subsidiaries, net of cash acquired	  	 	(149,021	) 	 	 	—  	  	 	 	—  	  	 	 	(195,318	) 	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	
Repayments to related parties	  	 	(207	) 	 	 	—  	  	 	 	—  	  	 	 	(17,438	) 	 	 	—  	  	 	 	—  	  	
Decrease (increase) in restricted cash	  	 	977	  	 	 	1,497	  	 	 	232	  	 	 	(8,360	) 	 	 	2,993	  	 	 	463	  	
Proceeds from disposal of subsidiaries, net of cash	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(2,527	) 	 	 	394,463	  	 	 	61,029	  	

Net cash generated from (used in) investing activities	  	 	(156,112	) 	 	 	18,783	  	 	 	2,906	  	 	 	(235,104	) 	 	 	367,406	  	 	 	56,843	  	

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 	  	For the Three Months Ended June 30,	 	 	For The Six Months Ended June 30,	 	
 	  	2010	 	 	2011	 	 	2011	 	 	2010	 	 	2011	 	 	2011	 	
 	  	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
 	 	 	 	 	 	 	
Cash flows from financing activities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Payment for contingent consideration	  	 	(17,400	) 	 	 	—  	  	 	 	—  	  	 	 	(102,780	) 	 	 	(100,000	) 	 	 	(15,471	) 	
Acquisition of additional interest in a subsidiary	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(2,410	) 	 	 	—  	  	 	 	—  	  	
Increase in capital injection by noncontrolling interests	  	 	4,605	  	 	 	4,800	  	 	 	743	  	 	 	5,405	  	 	 	6,487	  	 	 	1,004	  	
Repayments from related parties	  	 	50,531	  	 	 	—  	  	 	 	—  	  	 	 	50,657	  	 	 	20,000	  	 	 	3,094	  	
Proceeds on exercise of stock options	  	 	2,640	  	 	 	810	  	 	 	125	  	 	 	2,640	  	 	 	4,772	  	 	 	738	  	
Repurchase of ordinary shares	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(13,722	) 	 	 	(2,123	) 	
 	 	 	 	 	 	 	
Dividends paid	  	 	(40,122	) 	 	 	—  	  	 	 	—  	  	 	 	(40,122	) 	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	254	  	 	 	5,610	  	 	 	868	  	 	 	(86,610	) 	 	 	(82,463	) 	 	 	(12,758	) 	

Net increase (decrease) in cash and cash equivalents	  	 	(65,514	) 	 	 	154,145	  	 	 	23,849	  	 	 	(177,239	) 	 	 	532,703	  	 	 	82,417	  	
Cash and cash equivalents at beginning of period	  	 	1,346,181	  	 	 	2,301,771	  	 	 	356,118	  	 	 	1,457,890	  	 	 	1,924,884	  	 	 	297,808	  	
Effect of exchange rate changes on cash and cash equivalents	  	 	(64	) 	 	 	(6,067	) 	 	 	(939	) 	 	 	(48	) 	 	 	(7,738	) 	 	 	(1,197	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	 	1,280,603	  	 	 	2,449,849	  	 	 	379,028	  	 	 	1,280,603	  	 	 	2,449,849	  	 	 	379,028	  	

Interest paid	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Income taxes paid	  	 	26,660	  	 	 	26,520	  	 	 	4,103	  	 	 	48,629	  	 	 	63,189	  	 	 	9,776	  	
 
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CNinsure Inc.
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
(In RMB in thousands, except shares and per share data)

 	  	Three Months Ended June 30, 2010	 	
 	  	GAAP	 	  	<1>	 	 	<2>	 	 	<3>	 	  	<4>	 	  	Non-GAAP	 	
 	 	 	 	 	 	 	
Net income attributable to the Company’s shareholders	  	 	118,636	  	  	 	(20,865	) 	 	 	(13,158	) 	 	 	5,817	  	  	 	—  	  	  	 	90,430	  	
 	 	 	 	 	 	 	
Shares used in calculating diluted net income per ADS	  	 	951,230,096	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	951,230,096	  	
 	 	 	 	 	 	 	
Diluted net income per ADS	  	 	2.494	  	  	 	(0.439	) 	 	 	(0.276	) 	 	 	0.122	  	  	 	—  	  	  	 	1.901	  	
 	 	
 	  	Three Months Ended June 30, 2011	 	
 	  	GAAP	 	  	<1>	 	 	<2>	 	 	<3>	 	  	<4>	 	  	Non-GAAP	 	
 	 	 	 	 	 	 	
Net income attributable to the Company’s shareholders	  	 	100,245	  	  	 	—  	  	 	 	—  	  	 	 	5,407	  	  	 	2,400	  	  	 	108,052	  	
 	 	 	 	 	 	 	
Shares used in calculating diluted net income per ADS	  	 	1,022,443,935	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	1,022,443,935	  	
 	 	 	 	 	 	 	
Diluted net income per ADS	  	 	1.961	  	  	 	—  	  	 	 	—  	  	 	 	0.106	  	  	 	0.047	  	  	 	2.114	  	
 	 	
 	  	Six Months Ended June 30, 2010	 	
 	  	GAAP	 	  	<1>	 	 	<2>	 	 	<3>	 	  	<4>	 	  	Non-GAAP	 	
 	 	 	 	 	 	 	
Net income attributable to the Company’s shareholders	  	 	185,984	  	  	 	(28,538	) 	 	 	(17,899	) 	 	 	10,359	  	  	 	—  	  	  	 	149,906	  	
 	 	 	 	 	 	 	
Shares used in calculating diluted net income per ADS	  	 	946,882,743	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	946,882,743	  	
 	 	 	 	 	 	 	
Diluted net income per ADS	  	 	3.928	  	  	 	(0.603	) 	 	 	(0.378	) 	 	 	0.219	  	  	 	—  	  	  	 	3.166	  	
 
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 	  	IR-125    	
CNinsure Inc.
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures-(Continued)
(In RMB in thousands, except shares and per share data)

 	  	Six Months Ended June 30, 2011	 	
 	  	GAAP	 	  	<1>	 	  	<2>	 	 	<3>	 	  	<4>	 	  	Non-GAAP	 	
Net income attributable to the Company’s shareholders	  	 	341,089	  	  	 	—  	  	  	 	(157,253	) 	 	 	2,950	  	  	 	4,000	  	  	 	190,786	  	
 	 	 	 	 	 	 	
Shares used in calculating diluted net income per ADS	  	 	1,024,631,867	  	  	 	—  	  	  	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	1,024,631,867	  	
 	 	 	 	 	 	 	
Diluted net income per ADS	  	 	6.658	  	  	 	—  	  	  	 	(3.070	) 	 	 	0.058	  	  	 	0.078	  	  	 	3.724	  	
 
<1>	Investment income incurred by business combination achieved in stages, net of tax;	
<2>	Net income from discontinued operations income, net of tax;	
<3>	Share-based compensation expenses, disclosures for second quarter is presented on this basis for comparative purpose;	
<4>	Strategic spending on e-commerce insurance business. In the second quarter and first half of 2011, the Company amended their non-GAAP net income attributable to shareholders as well as their non-GAAP diluted net income per ADS to also exclude strategic spending on e-commerce insurance. Disclosures for previous periods are presented on this basis for comparative period.	
 
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