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 2010
 
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 þ     Form 40-F o
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): o
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): o

 

 

Incorporation by Reference
The document attached as Exhibit 99.1 to this 6-K shall be incorporated by reference into the Registrant’s Registration Statement on Form F-3 as filed on November 5, 2009, as amended (No. 333-162895).

 

 
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/ Yinan Hu 	 	
 	Name:  	Yinan Hu 	 	
 	Title:  	Chief Executive Officer 	 	
Date: November 24, 2010

 

 
Exhibit Index
Exhibit 99.1 — Press Release

 

Exhibit 99.1

 	
CNinsure Reports Third Quarter 2010 Unaudited Financial Results
— Quarterly Earnings Exceed Prior Guidance —
— Quarterly Basic and Diluted EPS up 30.4% and 29.7% Year-over-Year, Respectively —
GUANGZHOU, November 22, 2010 (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 2010 ended September 30, 2010. 1
Financial Highlights:
Highlights for Third Quarter 2010
•	 	Total net revenues: RMB388.2 million (US$58.0 million), representing an increase of 30.4% from the corresponding period of 2009.	
 	 	 	
•	 	Income from operations: RMB119.1 million (US$17.8 million), representing an increase of 35.7% from the corresponding period of 2009.	
 	 	 	
•	 	Net income attributable to the Company’s shareholders: RMB109.8 million (US$16.4 million), representing an increase of 42.7% from the corresponding period of 2009, which exceeded the previous guidance of approximately 38% year-over-year growth.	
 	 	 	
•	 	Basic and diluted net income per American Depositary Share (“ADS”): RMB2.198 (US$0.329) and RMB2.128 (US$0.318), respectively, representing an increase of 30.4% and 29.7%, respectively, from the corresponding period of 2009.	

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 RMB6.6905 to US$1.00, the effective noon buying rate as of September 30, 2010 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.	

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Financial Results for the Third Quarter Ended September 30, 2010
Total net revenues for the third quarter ended September 30, 2010 were RMB388.2 million (US$58.0 million), representing an increase of 30.4% from RMB297.8 million for the corresponding period of 2009. The increase was primarily driven by the significant growth of the life insurance business as a result of the growth in sales volume, the increase in commission rate for new life insurance policies and the growth in renewal commissions.
Total operating costs and expenses were RMB269.2 million (US$40.2 million) for the third quarter of 2010, representing an increase of 28.1% from RMB210.1 million for the corresponding period of 2009.

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Commissions and fees expenses were RMB180.4 million (US$27.0 million) for the third quarter of 2010, representing an increase of 29.1% from RMB139.7 million for the corresponding period of 2009. The increase was primarily due to sales growth and largely tracked the increase in net revenues from commissions and fees.
Selling expenses were RMB17.5 million (US$2.6 million) for the third quarter of 2010, representing an increase of 18.3% from RMB14.8 million for the corresponding period of 2009, primarily due to sales growth and an increase in expenses incurred in connection with the establishment of new outlets.
General and administrative expenses were RMB71.3 million (US$10.7 million) for the third quarter of 2010, representing an increase of 28.3% from RMB55.6 million for the corresponding period of 2009. The increase was primarily due to increases in the following non-cash items:
(1)	 	an increase of 47.0% in depreciation of fixed assets from RMB4.3 million for the third quarter of 2009 to RMB6.3 million (US$0.9 million) for the third quarter of 2010, largely as a result of the operation of the upgraded IT system in more affiliated entities in the third quarter of 2010;	
 	 	 	
(2)	 	an increase of 94.5% in amortization of intangible assets from RMB2.7 million for the third quarter of 2009 to RMB5.3 million (US$0.8 million) for the third quarter of 2010, largely as a result of the acquisitions we made in 2010; and	
 	 	 	
(3)	 	an increase of 285.5% in share-based compensation expenses from RMB1.5 million for the third quarter of 2009 to RMB5.9 million (US$0.9 million) for the third quarter of 2010, associated with the grant of options to various directors, officers and employees in February 2010.	
As a result of the foregoing factors, income from operations was RMB119.1 million (US$17.8 million) for the third quarter of 2010, representing an increase of 35.7% from RMB87.7 million for the corresponding period of 2009. Operating margin was 30.7% for the third quarter of 2010, compared to 29.5% for the corresponding period of 2009.
Interest income for the third quarter of 2010 was RMB7.2 million (US$1.1 million), representing a decrease of 3.7% from RMB7.5 million for the corresponding period of 2009.
Income tax expense for the third quarter of 2010 was RMB21.5 million (US$3.2 million), representing an increase of 0.5% from RMB21.4 million for the corresponding period of 2009. The effective income tax rate applicable to the Company was 17.0% for the third quarter of 2010, compared to 22.4% for the corresponding period of 2009. The decrease was primarily attributable to a tax holiday enjoyed by an affiliated subsidiary of the Company.
Net income attributable to the Company’s shareholders was RMB109.8 million (US$16.4 million) for the third quarter of 2010, representing an increase of 42.7% from RMB76.9 million for the corresponding period of 2009.

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Net margin was 28.3% for the third quarter of 2010 compared to 25.8% for the corresponding period of 2009.
Basic net income per ADS was RMB2.198 (US$0.329) for the third quarter of 2010, representing an increase of 30.4% from RMB1.686 for the corresponding period of 2009. Fully diluted net income per ADS was RMB2.128 (US$0.318) for the third quarter of 2010, representing an increase of 29.7% from RMB1.641 for the corresponding period of 2009.
As of September 30, 2010, the Company had RMB2.0 billion (US$297.6 million) in cash and cash equivalents.
Recent developments:
•	 	On November 19, 2010, CNinsure’s Board of Directors approved the retirement of Mr. Chengbin Li, vice president of human resources management and strategic planning, due to health reasons. The retirement will be effective December 1, 2010.	
 	 	 	
•	 	On November 1, 2010, CNinsure completed the acquisition of 65.1% equity interest in InsCom Holding Limited (“InsCom”), which was announced on July 29, 2010. Total consideration was RMB84.0 million in cash. The selling shareholders, Inscom’s original management, will stay as managing minority shareholders.	
 	 	 	
 	 	As part of the corporate restructuring of Inscom, CNinsure’s equity interests in six of its affiliated property and casualty insurance agencies will be transferred to an affiliated subsidiary of InsCom to facilitate smooth integration of online and offline services, in exchange for preference shares newly issued by the restructured InsCom. With the holding of the preference shares, CNinsure is entitled to all of the profits of the restructured InsCom for a certain period and reserves the right to require the restructured InsCom to redeem the preference shares for cash at RMB400 million.	
 	 	 	
•	 	On September 28, 2010, CNinsure announced that it had signed an agreement with Shanghai Puyi Investment Consulting Co., Limited (“Shanghai Puyi”) and Chengdu Ronghai Investment Co., Ltd. (“Chengdu Ronghai”), to set up a joint venture, named Fanhua Puyi Investment Management Co., Limited (“Fanhua Puyi”), to engage in independent investment research and provision of wealth management services. CNinsure, Shanghai Puyi and Chengdu Ronghai hold 19.48%, 44.61% and 35.91%, respectively, of the equity interest in Fanhua Puyi which will be capitalized at RMB51.48 million.	
 	 	 	
 	 	It is expected that Fanhua Puyi will become profitable in 2012. CNinsure is entitled to increase its shareholdings in Fanhua Puyi to gain a controlling interest when its business becomes more mature. The joint venture was subsequently established on November 19, 2010.	
 	 	 	
•	 	On September 28, 2010, CNinsure announced the acquisition of an additional 46% equity interest in Shenyang Fangda Insurance Agency Co., Ltd. (“Shenyang Fangda”) for RMB40 million in cash, increasing its total shareholdings in Shenyang Fangda from 5% to 51%. The transaction was subsequently closed on October 1, 2010.	

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 	 	Shenyang Fangda was co-founded on April 23, 2008 by Chengdu Jingshi and CNinsure, each holding 95% and 5%, respectively, of the equity interest. It was agreed that after the establishment of Shenyang Fangda, Chengdu Jingshi would take responsibility for providing capital support and recruiting sales teams, while CNinsure would set forth management requirements and provide back-office support, and the management of Shenyang Fangda would manage day-to-day operations of the business. As of September 30, 2010, Shenyang Fangda had 432 effective sales agents and it is anticipated that its effective sales force will increase to 600 in 2011. Shenyang Fangda’s guaranteed profits shall be no less than RMB5.2 million in 2011 and shall grow at a compound annual growth rate of over 30% from 2011 to 2013.	
 	 	 	
 	 	Pursuant to the acquisition agreements with the selling shareholder, all of Shenyang Fangda’s net income from 2010 to 2015 will be distributed to CNinsure. If Shenyang Fangda fails to achieve the guaranteed profit and sales force targets, the total consideration for the acquisition is subject to downward adjustment, and CNinsure’s shareholdings in Shenyang Fangda will be adjusted upwards.	
 	 	 	
•	 	On September 1, 2010, CNinsure announced that Mr. Bo Zhao, former general manager of Property Insurance Department and Commercial Risk Insurance for Large Projects Department at PICC Property & Casualty Company Limited, had joined CNinsure to head its insurance brokerage business unit and assist the Company’s effort to expand its product and service offering from retail to commercial line.	
 	 	 	
•	 	As of September 30, 2010, CNinsure’s distribution and service network consisted of 49 insurance agencies, three insurance brokerages 2  and three claims adjusting firms 3  with 636 sales and services outlets operating in 23 provinces, compared to 47 insurance agencies, four insurance brokerages and four claims adjusting firms with 472 sales and service outlets operating in 22 provinces as of September 30, 2009. CNinsure had 48,714 sales agents and 1,488 professional claims adjustors as of September 30, 2010, compared to 36,227 sales agents and 1,449 professional claims adjustors as of September 30, 2009.	

2	 	During the first quarter of 2010, CNinsure sold its 51% equity interest in Guangdong Qicheng Insurance Brokerage Co., Ltd. (“Qicheng”) to its managing minority shareholder at net asset value as Qicheng did not perform up to CNinsure’s requirements.	
 	 	 	
3	 	On June 11, 2010, Fanhua Fangzhong Insurance Surveyors & Loss Adjustors Co., Ltd, was restructured into a holding company with three subsidiaries and renamed Guangdong Fanhua Fangzhong Investment Management Co., Ltd.. The three subsidiaries include CNinsure Surveyors & Loss Adjustors Co., Ltd., Shanghai Fanhua Teamhead Insurance Surveyors & Loss Adjustors Co., Ltd., and Shenzhen Fanhua Property Insurance Surveyors & Loss Adjustors Co., Ltd. (formerly known as Shenzhen Hongzhengda Insurance Surveyors & Loss Adjustors Co., Ltd.).	

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•	 	Net revenues from commissions and fees derived from the property and casualty insurance, life insurance and claims adjusting businesses for the third quarter of 2010 each contributed 55.8%, 31.9% and 12.3% of the Company’s total net revenues, respectively, compared to 68.2%, 19.8%, 12.0%, respectively, for the same period of 2009.	
 	 	 	
•	 	CNinsure ranked 39th in Forbes Asia’s “Best Under A Billion” List for 2010, making it the only insurance intermediary company to be in the List in the Asia-Pacific region. The selection was based on earnings growth, sales growth, and shareholders’ return on equity over the past 12 months as well as over the past three years.	
Conference Call
The Company will host a conference call to discuss the third quarter 2010 results at
Time: 8:00 pm Eastern Standard Time on November 22, 2010
or 9:00 am Beijing/Hong Kong Time on November 23, 2010
 	 	 	
The dial-in numbers:	 	 	
 	 	 	
United States:	 	+1-866-549-1292	
 	 	 	
United Kingdom:	 	0808-234-6305	
 	 	 	
Canada:	 	+1-866-8691-825	
 	 	 	
Singapore:	 	800-852-3576	
 	 	 	
Taiwan:	 	0080-185-6004	
 	 	 	
Hong Kong & Other Areas:	 	+852-3005-2050	
 	 	 	
China (Mainland):	 	400-681-6949	
 	 	 	
Password: 885507#	 	 	

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A replay of the call will be available for 30 days as follows:
 	 	 	
+852-3005-2020	 	(Hong Kong & other areas)	
 	 	 	
PIN number: 142589#	 	 	
Additionally, a live and archived web cast of this call will be available at:
http://www.corpasia.net/us/CISG/irwebsite/index.php?mod=event
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 November 22, 2010, and CNinsure undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or to 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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CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	As of December 31,	 	 	As of September 30,	 	 	As of September 30,	 	
 	 	2009	 	 	2010	 	 	2010	 	
 	 	RMB	 	 	RMB	 	 	US$	 	
ASSETS:	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	 	1,457,890	 	 	 	1,991,214	 	 	 	297,618	 	
Restricted cash	 	 	1,957	 	 	 	9,613	 	 	 	1,437	 	
Accounts receivable, net	 	 	181,360	 	 	 	243,293	 	 	 	36,364	 	
Insurance premium receivables	 	 	230	 	 	 	324	 	 	 	48	 	
Other receivables	 	 	52,108	 	 	 	49,428	 	 	 	7,388	 	
Deferred tax assets	 	 	2,602	 	 	 	9,100	 	 	 	1,360	 	
Amounts due from related parties	 	 	25,337	 	 	 	27,200	 	 	 	4,065	 	
Other current assets	 	 	6,015	 	 	 	8,438	 	 	 	1,261	 	
 	 	 	 	 	 	 	 	 	 	
Total current assets	 	 	1,727,499	 	 	 	2,338,610	 	 	 	349,541	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-current assets:	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant, and equipment, net	 	 	108,318	 	 	 	105,160	 	 	 	15,718	 	
Goodwill	 	 	535,911	 	 	 	986,197	 	 	 	147,403	 	
Intangible assets, net	 	 	81,485	 	 	 	127,725	 	 	 	19,091	 	
Deferred tax assets	 	 	3,801	 	 	 	2,214	 	 	 	330	 	
Investment in affiliates	 	 	86,701	 	 	 	136,019	 	 	 	20,330	 	
Other non-current assets	 	 	2,250	 	 	 	2,225	 	 	 	333	 	
 	 	 	 	 	 	 	 	 	 	
Total assets	 	 	2,545,965	 	 	 	3,698,150	 	 	 	552,746	 	

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CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets-(Continued)
(In thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	As of December 31,	 	 	As of September 30,	 	 	As of September 30,	 	
 	 	2009	 	 	2010	 	 	2010	 	
 	 	RMB	 	 	RMB	 	 	US$	 	
LIABILITIES AND EQUITY:	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable	 	 	72,716	 	 	 	101,925	 	 	 	15,234	 	
Insurance premium payables	 	 	1,957	 	 	 	2,052	 	 	 	307	 	
Other payables and accrued expenses	 	 	182,139	 	 	 	131,115	 	 	 	19,597	 	
Accrued payroll	 	 	24,152	 	 	 	28,091	 	 	 	4,199	 	
Income tax payable	 	 	37,410	 	 	 	23,508	 	 	 	3,513	 	
Amounts due to related parties	 	 	19,274	 	 	 	15,000	 	 	 	2,242	 	
 	 	 	 	 	 	 	 	 	 	
Total current liabilities	 	 	337,648	 	 	 	301,691	 	 	 	45,092	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	
Other tax liabilities	 	 	2,537	 	 	 	5,540	 	 	 	828	 	
Deferred tax liabilities	 	 	19,075	 	 	 	38,121	 	 	 	5,698	 	
 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	359,260	 	 	 	345,352	 	 	 	51,618	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary shares	 	 	7,036	 	 	 	7,668	 	 	 	1,146	 	
Additional paid-in capital	 	 	1,604,774	 	 	 	2,286,195	 	 	 	341,708	 	
Statutory reserves	 	 	103,877	 	 	 	103,874	 	 	 	15,526	 	
Retained earnings	 	 	348,663	 	 	 	644,437	 	 	 	96,321	 	
Accumulated other comprehensive loss	 	 	(72,542	)	 	 	(79,963	)	 	 	(11,952	)	
 	 	 	 	 	 	 	 	 	 	
Total CNinsure Inc. shareholders’ equity	 	 	1,991,808	 	 	 	2,962,211	 	 	 	442,749	 	
 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests	 	 	194,897	 	 	 	390,587	 	 	 	58,379	 	
 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	2,186,705	 	 	 	3,352,798	 	 	 	501,128	 	
 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	 	 	2,545,965	 	 	 	3,698,150	 	 	 	552,746	 	

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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 Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2009	 	 	2010	 	 	2010	 	 	2009	 	 	2010	 	 	2010	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commissions and fees	 	 	297,680	 	 	 	388,004	 	 	 	57,993	 	 	 	798,873	 	 	 	1,035,694	 	 	 	154,800	 	
Other service fees	 	 	125	 	 	 	227	 	 	 	34	 	 	 	484	 	 	 	313	 	 	 	47	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total net revenues	 	 	297,805	 	 	 	388,231	 	 	 	58,027	 	 	 	799,357	 	 	 	1,036,007	 	 	 	154,847	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commissions and fees	 	 	(139,707	)	 	 	(180,372	)	 	 	(26,960	)	 	 	(402,731	)	 	 	(496,168	)	 	 	(74,160	)	
Selling expenses	 	 	(14,799	)	 	 	(17,511	)	 	 	(2,617	)	 	 	(34,157	)	 	 	(50,205	)	 	 	(7,504	)	
General and administrative expenses	 	 	(55,576	)	 	 	(71,288	)	 	 	(10,655	)	 	 	(146,437	)	 	 	(190,686	)	 	 	(28,501	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating costs and expenses	 	 	(210,082	)	 	 	(269,171	)	 	 	(40,232	)	 	 	(583,325	)	 	 	(737,059	)	 	 	(110,165	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from operations	 	 	87,723	 	 	 	119,060	 	 	 	17,795	 	 	 	216,032	 	 	 	298,948	 	 	 	44,682	 	
Other income, net:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investment income	 	 	—	 	 	 	—	 	 	 	—	 	 	 	18,905	 	 	 	38,050	 	 	 	5,687	 	
Interest income	 	 	7,528	 	 	 	7,247	 	 	 	1,083	 	 	 	26,103	 	 	 	19,683	 	 	 	2,942	 	
Interest expense	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	(4	)	 	 	—	 	 	 	—	 	
Others, net	 	 	78	 	 	 	(18	)	 	 	(2	)	 	 	1,035	 	 	 	232	 	 	 	35	 	
Changes in fair value of contingent consideration payables	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(5,946	)	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income before income taxes and income of affiliates	 	 	95,328	 	 	 	126,289	 	 	 	18,876	 	 	 	256,125	 	 	 	356,913	 	 	 	53,346	 	
Income tax expense	 	 	(21,350	)	 	 	(21,456	)	 	 	(3,207	)	 	 	(67,289	)	 	 	(72,260	)	 	 	(10,801	)	
Share of income (loss) of affiliates	 	 	(10	)	 	 	2,472	 	 	 	370	 	 	 	(37	)	 	 	9,807	 	 	 	1,466	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	73,968	 	 	 	107,305	 	 	 	16,039	 	 	 	188,799	 	 	 	294,460	 	 	 	44,011	 	

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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 Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2009	 	 	2010	 	 	2010	 	 	2009	 	 	2010	 	 	2010	 	
 	 	RMB	 	 	RMB	 	 	US$	 	 	RMB	 	 	RMB	 	 	US$	 	
Less: Net loss attributable to the noncontrolling interests	 	 	(2,955	)	 	 	(2,485	)	 	 	(371	)	 	 	(18,267	)	 	 	(1,314	)	 	 	(197	)	
Net income attributable to the Company’s shareholders	 	 	76,923	 	 	 	109,790	 	 	 	16,410	 	 	 	207,066	 	 	 	295,774	 	 	 	44,208	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.084	 	 	 	0.110	 	 	 	0.016	 	 	 	0.227	 	 	 	0.314	 	 	 	0.047	 	
Diluted	 	 	0.082	 	 	 	0.106	 	 	 	0.016	 	 	 	0.224	 	 	 	0.303	 	 	 	0.045	 	
Net income per ADS:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	1.686	 	 	 	2.198	 	 	 	0.329	 	 	 	4.538	 	 	 	6.282	 	 	 	0.939	 	
Diluted	 	 	1.641	 	 	 	2.128	 	 	 	0.318	 	 	 	4.476	 	 	 	6.064	 	 	 	0.906	 	
Shares used in calculating net income per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	912,497,726	 	 	 	998,795,320	 	 	 	998,795,320	 	 	 	912,497,726	 	 	 	941,600,652	 	 	 	941,600,652	 	
Diluted	 	 	937,397,373	 	 	 	1,031,977,186	 	 	 	1,031,977,186	 	 	 	925,236,583	 	 	 	975,563,550	 	 	 	975,563,550	 	

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For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2777 x 850
Email: qiusr@cninsure.net
Source: CNinsure Inc.

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