Fanhua Reports Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results
Financial Highlights for the Fourth Quarter of 2021:
(In thousands, except per ADS) | 2020Q4 (RMB) |
2021Q4 (RMB) |
2021Q4 (US$) |
Change % | ||||
Total net revenues | 851,974 | 802,629 | 125,950 | (5.8 | ) | |||
Operating income | 71,874 | 82,336 | 12,921 | 14.6 | ||||
Impairment on investment in an affiliate | (22,958 | ) | (29,316 | ) | (4,600 | ) | 27.7 | |
Net income attributable to the Company’s shareholders | 47,826 | 10,949 | 1,718 | (77.1 | ) | |||
Non-GAAP net income attributable to the Company’s shareholders2 | 70,784 | 40,265 | 6,318 | (43.1 | ) | |||
Diluted net income per ADS | 0.89 | 0.20 | 0.03 | (77.5 | ) | |||
Non-GAAP diluted net income per ADS3 | 1.32 | 0.75 | 0.12 | (43.2 | ) | |||
Cash, cash equivalents and short- term investments (As of December, 31, 2020 and 2021) | 1,553,293 | 1,435,306 | 225,231 | (7.6 | ) |
Financial Highlights for Year 2021:
(In thousands, except per ADS) | 2020 (RMB) |
2021 (RMB) |
2021 (US$) |
Change % | ||||
Total net revenues | 3,268,145 | 3,271,114 | 513,310 | 0.1 | ||||
Operating income | 302,186 | 301,905 | 47,376 | (0.1 | ) | |||
Impairment on investment in an affiliate | (22,958 | ) | (29,316 | ) | (4,600 | ) | 27.7 | |
Net income attributable to the Company’s shareholders | 268,254 | 250,989 | 39,386 | (6.4 | ) | |||
Non-GAAP net income attributable to the Company’s shareholders2 | 291,212 | 280,305 | 43,986 | (3.7 | ) | |||
Diluted net income per ADS | 4.99 | 4.67 | 0.73 | (6.4 | ) | |||
Non-GAAP diluted net income per ADS3 | 5.42 | 5.22 | 0.82 | (3.7 | ) |
Mr.
“Against the backdrop of industry transformation, we see tremendous opportunities despite mounting challenges. In 2022, people reaching the retirement age are expected to grow from 9 million in 2021 to 25 million in
“In response to evolving trends, we began implementing our new strategy of “Professionalization, Digitalization and Open Platform” in full strength in 2021, in an attempt to fully empower and cultivate professional talents and also empower the industry to take full advantage of the great opportunities brought by the rising demand for elderly care and family legacy management. Despite mounting challenges in 2021 faced by the life insurance industry in
“Building on the foundation laid in 2021, we will continue to execute our development strategy with a focus on the following initiatives, among others, (i) tapping into the high-end market by offering referral of insurance trust services, (ii) growing the premium contributions from high-performing sales agents, and (iii) accelerating market exploration of Fanhua’s open platform model to empower the industry.”
“Our goal is to transform
Financial Results for the Fourth Quarter of 2021
Total net revenues were
- Net revenues for agency business were
RMB672.3 million (US$105.5 million ) for the fourth quarter of 2021, representing a decrease of 7.6% fromRMB727.5 million for the corresponding period in 2020. In the fourth quarter of 2021, total GWP increased by 8.5% year-over-year toRMB3.2 billion , of which first year premiums grew by 8.1% year-over-year toRMB858.2 million while renewal premiums increased by 8.6% year-over-year toRMB2,338.3 million .- Net revenues for the life insurance business were
RMB642.5 million (US$100.8 million ) for the fourth quarter of 2021, representing a decrease of 7.9% fromRMB697.6 million for the corresponding period in 2020. The decrease was mainly due to changes in product mix, as the net revenues in the fourth quarter of 2020 were mainly derived from critical illness insurance products with longer renewal term and thus higher commission, while the net revenues in the fourth quarter of 2021 were mainly derived from whole life insurance products with shorter renewal term. In the fourth quarter of 2021, total life insurance GWP increased by 8.1% year-over-year toRMB3,109.3 million , of which first year premiums increased by 6.5% year-over-year toRMB771.0 million and renewal premiums increased by 8.6% year-over-year toRMB2,338.3 million .Net revenues generated from our life insurance business accounted for 80.1% of our total net revenues in the fourth quarter of 2021.
- Net revenues for the P&C insurance business were
RMB29.8 million (US$4.7 million ) for the fourth quarter of 2021, which remained relatively stable compared withRMB29.9 million for the corresponding period in 2020. Net revenues for the P&C insurance business are mainly derived from commissions for medical insurance, accident insurance, travel insurance and homeowner insurance products facilitated on Baowang (www.baoxian.com). Net revenues generated from the P&C insurance business accounted for 3.7% of our total net revenues in the fourth quarter of 2021.
- Net revenues for the life insurance business were
- Net revenues for the claims adjusting business were
RMB130.4 million (US$20.5 million ) for the fourth quarter of 2021, representing an increase of 4.7% fromRMB124.5 million for the corresponding period in 2020. Net revenues generated from the claims adjusting business accounted for 16.2% of our total net revenues in the fourth quarter of 2021.
Total operating costs and expenses were
- Commission costs were
RMB504.9 million (US$79.2 million ) for the fourth quarter of 2021, representing a decrease of 13.2% fromRMB581.9 million for the corresponding period in 2020.- Commission cost for agency business were
RMB430.7 million (US$67.6 million ) for the fourth quarter of 2021, representing a decrease of 14.1% fromRMB501.6 million for the corresponding period in 2020.- Costs of the life insurance business were
RMB411.1 million (US$64.5 million ) for the fourth quarter of 2021, representing a decrease of 15.1% fromRMB484.3 million for the corresponding period in 2020. The decrease was in line with the decline in net revenues generated from our life insurance business. Costs incurred by the life insurance business accounted for 81.4% of our total commission costs in the fourth quarter of 2021. - Costs of the P&C insurance business were
RMB19.6 million (US$3.1 million ) for the fourth quarter of 2021, representing an increase of 13.3% fromRMB17.3 million for the corresponding period in 2020. The costs of the P&C insurance business mainly represent commission costs we incurred for operating Baowang (www.baoxian.com). The increase in the costs of P&C insurance business was mainly due to increases in our payroll as we recruited more employees at our call center. Costs incurred by the P&C insurance business accounted for 3.9% of our total commission costs in the fourth quarter of 2021.
- Costs of the life insurance business were
- Costs of claims adjusting business were
RMB74.2 million (US$11.6 million ) for the fourth quarter of 2021, representing a decrease of 7.5% fromRMB80.2 million for the corresponding period in 2020. Costs incurred by the claims adjusting business accounted for 14.7% of our total commission costs in the fourth quarter of 2021.
- Commission cost for agency business were
- Selling expenses were
RMB77.1 million (US$12.1 million ) for the fourth quarter of 2021, representing a decrease of 1.9% fromRMB78.6 million for the corresponding period in 2020. The decrease was due to decreased sales events, partially offset by increased contributions to employees’ government-mandated social benefits plans which had a lower base in the same period of 2020 as the government waived certain contributions in 2020 in view of the impact of COVID-19. - General and administrative expenses were
RMB138.3 million (US$21.7 million ) for the fourth quarter of 2021, representing an increase of 15.6% fromRMB119.6 million for the corresponding period in 2020. The increase was mainly due to increased expenditures for execution of the Professionalization, Digitalization and Open Platform strategy and increased contributions to employees’ government-mandated social benefits plans which had a lower base in the same period of last year.
As a result of the foregoing factors, we recorded an operating income of
Operating margin was 10.3% for the fourth quarter of 2021, compared to 8.4% for the corresponding period in 2020.
Investment income was
Income tax expense was
Share of loss and impairment of affiliates was
Net income was
Net income attributable to the Company’s shareholders was
Non-GAAP net income attributable to the Company’s shareholders2, (exclusive of impairment on investment in
Net margin was 1.4% for the fourth quarter of 2021 as compared to 5.6% for the corresponding period in 2020.
Non-GAAP net margin4 was 5.0% for the fourth quarter of 2021 as compared to 8.3% for the corresponding period in 2020.
Basic and diluted net income per ADS were
Non-GAAP basic5 and diluted net income per ADS3 were
Financial Results for Year 2021
Total net revenues were
- Net revenues for the agency business were
RMB2,811.9 million (US$441.2 million ) for 2021, representing a decrease of 0.8% fromRMB2,835.0 million in 2020, primarily due to changes in product mix of our life insurance business, despite an increase in total GWP. In 2021, total GWP increased by 12.2% year-over-year toRMB11.6 billion , of which first year premiums increased by 3.6% year-over-yearRMB2,828.1 million while renewal premiums increased by 15.3% year-over-year toRMB8,752.8 million .- Net revenues for the life insurance business were
RMB2,679.7 million (US$420.5 million ) for 2021, representing a decrease of 0.9% fromRMB2,703.6 million in 2020. The slight decrease was mainly due to changes in product mix, despite an increase in total life insurance GWP. The net revenues in 2020 were mainly derived from critical illness insurance products with longer renewal term and thus higher commission, while the net revenues in 2021 were mainly derived from whole life insurance products with shorter renewal term. In 2021, total life insurance GWP increased by 12.5% year-over-year toRMB11.3 billion , of which first year premiums increased by 3.7% year-over-year toRMB2,507.9 million and renewal premiums increased by 15.3% year-over-year toRMB8,752.8 million .Net revenues generated from our life insurance business accounted for 81.9% of our total net revenues in 2021.
- Net revenues for the P&C insurance business were
RMB132.2 million (US$20.7 million ) for 2021, which remained relatively stable compared withRMB131.4 million in 2020. Net revenues for the P&C insurance business are mainly derived from commissions for internet-based insurance products sold on Baowang, including medical insurance, accident insurance, travel insurance and homeowner insurance products. Revenues generated from the P&C insurance business accounted for 4.1% of our total net revenues in 2021.
- Net revenues for the life insurance business were
- Net revenues for the claims adjusting business were
RMB459.2 million (US$72.1 million ) for 2021, representing an increase of 6.0% fromRMB433.1 million in 2020. Revenues generated from the claims adjusting business accounted for 14.0% of our total net revenues in 2021.
Total operating costs and expenses were
- Commission costs were
RMB2,115.2 million (US$331.9 million ) for 2021, representing a decrease of 4.5% fromRMB2,213.9 million in 2020.- Commission costs for the agency business were
RMB1,835.8 million (US288.1 million) for 2021, representing a decrease of 6.0% fromRMB1,953.7 million in 2020.- Costs of the life insurance business were
RMB1,742.6 million (US$273.5 million ) for 2021, representing a decrease of 6.6% fromRMB1,866.2 million in 2020. The decrease was in line with the decline in net revenues generated from our life insurance business. Costs incurred by the life insurance business accounted for 82.4% of our total commission costs in 2021. - Costs of the P&C insurance business were
RMB93.2 million (US$14.6 million ) for 2021, representing an increase of 6.5% fromRMB87.5 million in 2020. The costs of the P&C insurance business mainly represent commission costs we incurred for operating Baowang (www.baoxian.com). The increase in the cost of P&C insurance business was mainly due to increases in payroll as we recruited more employees at our call center. Costs incurred by the P&C insurance business accounted for 4.4% of our total commission costs in 2021.
- Costs of the life insurance business were
- Costs of claims adjusting business were
RMB279.3 million (US$43.8 million ) for 2021, representing an increase of 7.4% fromRMB260.1 million in 2020. Costs incurred by the claims adjusting business accounted for 13.2% of our total commission costs in 2021.
- Commission costs for the agency business were
- Selling expenses were
RMB306.5 million (US$48.1 million ) for 2021, representing an increase of 6.2% fromRMB288.5 million in 2020. The increase was due to increased contributions to employees’ government-mandated social benefits plans which had a lower base in 2020 as the government waived certain contribution in 2020 in view of the impact of COVID-19. - General and administrative expenses were
RMB547.6 million (US$85.9 million ) for 2021, representing an increase of 18.1% fromRMB463.6 million in 2020. The increase was mainly due to increased expenditures for execution of the Professionalization, Digitalization and Open Platform strategy and increased contributions to employees’ government-mandated social benefits plans which had a lower base in last year as the government waived certain contribution in 2020 in view of the impact of COVID-19.
As a result of the foregoing factors, we recorded an operating income of
Operating margin was 9.2% for 2021, compared to 9.2% in 2020.
Investment income was
Income tax expense was
Share of income and impairment of affiliates was
Net income was
Net income attributable to the Company’s shareholders was
Non-GAAP net income attributable to the Company’s shareholders2, which excluded impairment on investment in
Net margin was 7.7% for 2021 as compared to 8.2% in 2020.
Non-GAAP net margin4 was 8.6% for 2021 as compared to 8.9% in 2020.
Basic and diluted net income per ADS were
Non-GAAP basic5 and diluted net income per ADS3 were
As of
Key Operational Metrics for Fanhua’s Online Initiatives in 2021:
- Baowang (www.baoxian.com) - Our Direct-to-Consumer (“DTC”) online insurance platform for
Accident & Short Term Health insurance(“A&H”), travel and homeowner insurance:- The number of registered customer accounts was 3.4 million as of
December 31, 2021 , as compared to 3.4 million as ofDecember 31, 2020 ; - The number of active customer accounts6 was 275,395 in 2021, representing a decrease of 6.5% from 294,389 in 2020;
- Insurance premiums generated on Baoxian.com was
RMB335.6 million (US$52.7 million ) in 2021 representing an increase of 6.7% fromRMB314.5 million in 2020.
- The number of registered customer accounts was 3.4 million as of
- Lan Zhanggui - Our one-stop insurance service platform:
- The number of active users of Lan Zhanggui7 was 78,288 in 2021, as compared to 172,847 in 2020. The number of active users of Lan Zhanggui who have sold at least one life insurance policy was 51,693 in 2021, as compared to 79,012 in 2020. The decrease was mainly due to the weakened demand for critical illness insurance after the strong sales prior to the transition to the new critical illness definition framework in the first quarter of 2021;
- Insurance premiums generated through Lan Zhanggui were
RMB2,700.2 million (US$423.7 million ) in 2021, consisting of (i) life insurance premiums ofRMB2,366.1 million (US$371.3 million ) and (ii) non-life insurance premiums ofRMB334.1 million (US$52.4 million ), respectively, as compared toRMB2,738.5 million total insurance premiums generated through Lan Zhanggui consisting of (i)RMB2,186.7 million life insurance premiums and (ii)RMB551.8 million non-life insurance premiums in 2020.
- eHuzhu - Our online mutual aid platform:
- The number of paying members was 2.7 million as of
December 31, 2021 , as compared to 3.0 million as ofDecember 31, 2020 .
- The number of paying members was 2.7 million as of
Recent Developments
- As of
December 31, 2021 ,Fanhua had 284,053 sales agents and 2,156 professional claims adjusters, compared with 362,580 sales agents and 1,736 professional claims adjusters as ofDecember 31, 2020 . The decrease in the number of sales agents was mainly due to our efforts to streamline sales force and focus more on high-performing sales agents. The number of performing agents8 was 111,602 in 2021, compared to 222,203 in 2020 and the number of performing agents for selling life insurance products was 53,322 in 2021, compared to 80,768 in 2020. The decrease in the number of performing agents for selling life insurance products was mainly due to the continued weakened demand for critical illness insurance products post the transition to the new critical illness definition framework in the first quarter of 2021. As ofDecember 31, 2021 , Fanhua’s distribution network consisted of 771 sales outlets in 23 provinces and 109 services outlets in 31 provinces, compared with 763 sales outlets in 23 provinces and 118 service outlets in 31 provinces as ofDecember 31, 2020 . - According to the list of “Outstanding Cases of Digital Transformation of
China's Insurance Industry in 2021” published byChina Banking and Insurance News in December, 2021, Fanhua’s case of “WeCom-based Insurance Digital Marketing Program” was selected as one of the “Outstanding Digital Marketing Cases in 2021” and included in the China Insurance Informatization Cases in 2021 published by China Financial Publishing House. - In
January 2022 ,Fanhua won the “Innovative Insurance Intermediary of the Year” award in the second “China Insurance White Elephant List” sponsored by Insurance Today, a magazine generally regarded as a prominent publication in the insurance industry.
Business Outlook
Conference Call
The Company will host a conference call to discuss its fourth quarter and fiscal year 2021 financial results as per the following details.
Time:
or
The toll free dial-in numbers:
1-833-239-5565 | |
800-906-601 | |
080-850-0474 |
The toll dial-in numbers:
400-820-5286 | |
+852 30-186-771 | |
+44 203-692-8125 |
Conference ID #: 5289638
Additionally, a live and archived web cast of this call will be available at: https://edge.media-server.com/mmc/p/e362qhbd
About
Our online platforms include: (i) Lan Zhanggui, an all-in-one platform which allows our agents to access and purchase a wide variety of insurance products, including life insurance, auto insurance, accident insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (ii) Baowang (www.baoxian.com), an online entry portal for comparing and purchasing short term health, accident, travel and homeowner insurance products and (iii) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.
As of
For more information about
Forward-looking Statements
This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the
About Non-GAAP Financial Measures
In addition to the Company’s consolidated financial results under generally accepted accounting principles in
The Company’s non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations. Specifically, the Company’s non-GAAP measures exclude impairment on investment in an affiliate. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies, including peer companies. The presentation of these non-GAAP financial measures has limitations as analytical tools, and investors should not consider them in isolation from, or as a substitute for analysis of, 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 GAAP Financial Measures to Non-GAAP Financial Measures” set forth at the end of this press release.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
As of |
As of |
As of |
||||||
2020 | 2021 | 2021 | ||||||
RMB | RMB | US$ | ||||||
ASSETS: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 245,428 | 564,624 | 88,602 | |||||
Restricted cash | 83,981 | 76,303 | 11,974 | |||||
Short term investments | 1,307,865 | 870,682 | 136,629 | |||||
Accounts receivable, net | 583,116 | 653,757 | 102,589 | |||||
Other receivables | 50,242 | 60,755 | 9,534 | |||||
Other current assets | 41,148 | 39,947 | 6,268 | |||||
Total current assets | 2,311,780 | 2,266,068 | 355,596 | |||||
Non-current assets: | ||||||||
Restricted bank deposit - non current | 20,689 | 15,595 | 2,447 | |||||
Accounts receivable, net - non-current | — | 192,114 | 30,147 | |||||
Property, plant, and equipment, net | 36,778 | 46,800 | 7,344 | |||||
109,913 | 109,869 | 17,241 | ||||||
Deferred tax assets | 10,032 | 18,728 | 2,939 | |||||
Investment in affiliates | 357,661 | 335,808 | 52,696 | |||||
Other non-current assets | 33,743 | 31,459 | 4,936 | |||||
Right of use assets | 200,403 | 225,677 | 35,413 | |||||
Total non-current assets | 769,219 | 976,050 | 153,163 | |||||
Total assets | 3,080,999 | 3,242,118 | 508,759 |
Current liabilities: | ||||||||
Accounts payable | 377,386 | 377,558 | 59,247 | |||||
Insurance premium payables | 25,421 | 24,054 | 3,775 | |||||
Other payables and accrued expenses | 188,448 | 178,157 | 27,957 | |||||
Accrued payroll | 105,739 | 111,672 | 17,524 | |||||
Income tax payable | 145,983 | 130,222 | 20,435 | |||||
Current operating lease liability | 86,233 | 87,012 | 13,653 | |||||
Total current liabilities | 929,210 | 908,675 | 142,591 | |||||
Non-current liabilities: | ||||||||
Accounts payable – non-current | — | 97,869 | 15,357 | |||||
Other tax liabilities | 67,219 | 73,213 | 11,489 | |||||
Deferred tax liabilities | 26,380 | 73,716 | 11,568 | |||||
Non-current operating lease liability | 103,526 | 128,283 | 20,130 | |||||
Total non-current liabilities | 197,125 | 373,081 | 58,544 | |||||
Total liabilities | 1,126,335 | 1,281,756 | 201,135 | |||||
Ordinary shares | 8,089 | 8,089 | 1,269 | |||||
Statutory reserves | 553,911 | 557,221 | 87,440 | |||||
Retained earnings | 1,306,554 | 1,311,715 | 205,837 | |||||
Accumulated other comprehensive loss | (34,995 | ) | (39,140 | ) | (6,142 | ) | ||
Total shareholders’ equity | 1,833,559 | 1,837,885 | 288,404 | |||||
Non-controlling interests | 121,105 | 122,477 | 19,220 | |||||
Total equity | 1,954,664 | 1,960,362 | 307,624 | |||||
Total liabilities and equity | 3,080,999 | 3,242,118 | 508,759 |
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 Twelve Months Ended | ||||||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||
RMB | RMB | USD | RMB | RMB | US$ | ||||||||||||
Net revenues: | |||||||||||||||||
Agency | 727,486 | 672,252 | 105,491 | 2,834,997 | 2,811,936 | 441,255 | |||||||||||
Life insurance business | 697,554 | 642,456 | 100,815 | 2,703,584 | 2,679,720 | 420,507 | |||||||||||
P&C insurance business | 29,932 | 29,796 | 4,676 | 131,413 | 132,216 | 20,748 | |||||||||||
Claims adjusting | 124,488 | 130,377 | 20,459 | 433,148 | 459,178 | 72,055 | |||||||||||
Total net revenues | 851,974 | 802,629 | 125,950 | 3,268,145 | 3,271,114 | 513,310 | |||||||||||
Operating costs and expenses: | |||||||||||||||||
Agency | (501,667 | ) | (430,735 | ) | (67,592 | ) | (1,953,744 | ) | (1,835,825 | ) | (288,081 | ) | |||||
Life insurance Business | (484,329 | ) | (411,121 | ) | (64,514 | ) | (1,866,227 | ) | (1,742,640 | ) | (273,458 | ) | |||||
P&C insurance Business | (17,338 | ) | (19,614 | ) | (3,078 | ) | (87,517 | ) | (93,185 | ) | (14,623 | ) | |||||
Claims adjusting | (80,204 | ) | (74,160 | ) | (11,637 | ) | (260,121 | ) | (279,342 | ) | (43,835 | ) | |||||
Total operating costs | (581,871 | ) | (504,895 | ) | (79,229 | ) | (2,213,865 | ) | (2,115,167 | ) | (331,916 | ) | |||||
Selling expenses | (78,601 | ) | (77,111 | ) | (12,100 | ) | (288,460 | ) | (306,463 | ) | (48,091 | ) | |||||
General and administrative expenses | (119,628 | ) | (138,287 | ) | (21,700 | ) | (463,634 | ) | (547,579 | ) | (85,927 | ) | |||||
Total operating costs and expenses | (780,100 | ) | (720,293 | ) | (113,029 | ) | (2,965,959 | ) | (2,969,209 | ) | (465,934 | ) | |||||
Income from operations | 71,874 | 82,336 | 12,921 | 302,186 | 301,905 | 47,376 | |||||||||||
Other income, net: | |||||||||||||||||
Investment income | 7,750 | 7,510 | 1,178 | 34,789 | 32,898 | 5,162 | |||||||||||
Interest income | 2,280 | 1,461 | 229 | 13,420 | 2,971 | 466 | |||||||||||
Others, net | (16,840 | ) | 9,203 | 1,444 | 11,907 | 33,314 | 5,228 | ||||||||||
Income from operations before income taxes and share income of affiliates | 65,064 | 100,510 | 15,772 | 362,302 | 371,088 | 58,232 | |||||||||||
Income tax expense | (13,477 | ) | (32,668 | ) | (5,126 | ) | (83,387 | ) | (90,574 | ) | (14,213 | ) | |||||
Share of income (loss) and impairment of affiliates, net | (4,165 | ) | (49,386 | ) | (7,750 | ) | (2,738 | ) | (20,573 | ) | (3,228 | ) | |||||
Net income | 47,422 | 18,456 | 2,896 | 276,177 | 259,941 | 40,791 | |||||||||||
Less: net income attributable to non-controlling interests | (404 | ) | 7,507 | 1,178 | 7,923 | 8,952 | 1,405 | ||||||||||
Net income attributable to the Company’s shareholders | 47,826 | 10,949 | 1,718 | 268,254 | 250,989 | 39,386 |
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 Twelve Months Ended | ||||||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
Net income per share: | |||||||||||||||||
Basic | 0.04 | 0.01 | 0.01 | 0.25 | 0.23 | 0.04 | |||||||||||
Diluted | 0.04 | 0.01 | 0.01 | 0.25 | 0.23 | 0.04 | |||||||||||
Net income per ADS: | |||||||||||||||||
Basic | 0.89 | 0.20 | 0.03 | 5.00 | 4.67 | 0.73 | |||||||||||
Diluted | 0.89 | 0.20 | 0.03 | 4.99 | 4.67 | 0.73 | |||||||||||
Shares used in calculating net income per share: | |||||||||||||||||
Basic | 1,073,891,784 | 1,073,891,784 | 1,073,891,784 | 1,073,891,784 | 1,073,891,784 | 1,073,891,784 | |||||||||||
Diluted | 1,074,291,242 | 1,074,291,118 | 1,074,291,118 | 1,074,291,360 | 1,074,291,194 | 1,074,291,194 | |||||||||||
Net income | 47,422 | 18,456 | 2,896 | 276,177 | 259,941 | 40,791 | |||||||||||
Other comprehensive income, net of tax: Foreign currency translation adjustments | (520 | ) | (1,148 | ) | (180 | ) | 9,639 | (9,116 | ) | (1,430 | ) | ||||||
Share of other comprehensive (loss) gain of affiliates | (2,322 | ) | (982 | ) | (154 | ) | (3,016 | ) | (1,281 | ) | (201 | ) | |||||
Unrealized net gains on available-for-sale investments | 8,109 | 4,477 | 702 | 23,811 | 6,252 | 981 | |||||||||||
Comprehensive income | 52,689 | 20,803 | 3,264 | 306,611 | 255,796 | 40,141 | |||||||||||
Less: Comprehensive income attributable to the non-controlling interests | (404 | ) | 7,507 | 1,178 | 7,923 | 8,952 | 1,405 | ||||||||||
Comprehensive income attributable to the Company’s shareholders | 53,093 | 13,296 | 2,086 | 298,688 | 246,844 | 38,736 |
Unaudited Condensed Consolidated Statements of Cash Flow
(In thousands, except for shares and per share data)
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net income | 47,422 | 18,456 | 2,896 | 276,177 | 259,941 | 40,791 | |||||||||||
Adjustments to reconcile net income to net cash generated from operating activities: | |||||||||||||||||
Investment income | (1,188 | ) | (8 | ) | (1 | ) | (14,321 | ) | (3,171 | ) | (498 | ) | |||||
Share of loss (income) and impairment of affiliates, net | 4,165 | 49,386 | 7,750 | 2,738 | 20,573 | 3,228 | |||||||||||
Other non-cash adjustments | 46,788 | 18,070 | 2,835 | 148,879 | 23,839 | 3,741 | |||||||||||
Changes in operating assets and liabilities | 3,292 | (17,787 | ) | (2,791 | ) | (11,173 | ) | (174,983 | ) | (27,459 | ) | ||||||
Net cash generated from operating activities | 100,479 | 68,117 | 10,689 | 402,300 | 126,199 | 19,803 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchase of short term investments | (1,012,700 | ) | (929,353 | ) | (145,836 | ) | (7,947,662 | ) | (8,184,363 | ) | (1,284,305 | ) | |||||
Proceeds from disposal of short term investments | 1,209,294 | 847,702 | 133,023 | 8,287,924 | 8,646,532 | 1,356,830 | |||||||||||
Cash paid for loan receivables to a third party | — | — | — | (90,000 | ) | — | — | ||||||||||
Repayment of loan receivables from a third party | 90,000 | 6,830 | 1,072 | 90,000 | 6,830 | 1,072 | |||||||||||
Others | (5,351 | ) | (8,568 | ) | (1,344 | ) | (14,926 | ) | (18,600 | ) | (2,919 | ) | |||||
Net cash generated from (used in) investing activities | 281,243 | (83,389 | ) | (13,085 | ) | 325,336 | 450,399 | 70,678 | |||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayment of subscription from the 521 Plan participants | (250,312 | ) | — | — | (250,312 | ) | — | — | |||||||||
Dividends paid | (87,804 | ) | (51,092 | ) | (8,017 | ) | (388,499 | ) | (242,519 | ) | (38,057 | ) | |||||
Dividend distributed to non-controlling interest | — | — | — | — | (7,580 | ) | (1,189 | ) | |||||||||
Others | — | — | — | — | (10,200 | ) | (1,600 | ) | |||||||||
Net cash used in financing activities | (338,116 | ) | (51,092 | ) | (8,017 | ) | (638,811 | ) | (260,299 | ) | (40,846 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 43,606 | (66,364 | ) | (10,413 | ) | 88,825 | 316,299 | 49,635 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 318,160 | 724,099 | 113,626 | 265,605 | 350,098 | 54,938 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (11,668 | ) | (1,213 | ) | (190 | ) | (4,332 | ) | (9,875 | ) | (1,550 | ) | |||||
Cash, cash equivalents and restricted cash at end of period | 350,098 | 656,522 | 103,023 | 350,098 | 656,522 | 103,023 |
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
(In RMB in thousands, except shares and per share data)
For The Three Months Ended |
||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||
GAAP | Impairment on investment in affiliates | Non-GAAP | GAAP | Impairment on investment in affiliates | Non-GAAP | Change% | ||||||||||||||
Net revenues | 851,974 | — | 851,974 | 802,629 | — | 802,629 | (5.8 | ) | ||||||||||||
Income from operations | 71,874 | — | 71,874 | 82,336 | — | 82,336 | 14.6 | |||||||||||||
Operating margin | 8.4 | % | — | 8.4 | % | 10.3 | % | 10.3 | % | 22.6 | ||||||||||
Share of income (loss) and impairment of affiliates, net | (4,165 | ) | (22,958 | ) | 18,793 | (49,386 | ) | (29,316 | ) | (20,070 | ) | (206.8 | ) | |||||||
Net income attributable to the Company’s shareholders | 47,826 | (22,958 | ) | 70,784 | 10,949 | (29,316 | ) | 40,265 | (43.1 | ) | ||||||||||
Net margin | 5.6 | % | 8.3 | % | 1.4 | % | 5.0 | % | (39.8 | ) | ||||||||||
Net income per share | ||||||||||||||||||||
Basic | 0.04 | — | 0.07 | 0.01 | — | 0.04 | (42.9 | ) | ||||||||||||
Diluted | 0.04 | — | 0.07 | 0.01 | — | 0.04 | (42.9 | ) | ||||||||||||
Net income per ADS : | ||||||||||||||||||||
Basic | 0.89 | — | 1.32 | 0.20 | — | 0.75 | (43.2 | ) | ||||||||||||
Diluted | 0.89 | — | 1.32 | 0.20 | — | 0.75 | (43.2 | ) | ||||||||||||
Shares used in calculating net income per share : | ||||||||||||||||||||
Basic | 1,073,891,784 | — | 1,073,891,784 | 1,073,891,784 | — | 1,073,891,784 | ||||||||||||||
Diluted | 1,074,291,242 | — | 1,074,291,242 | 1,074,291,118 | — | 1,074,291,118 |
For The Twelve Months Ended |
||||||||||||||||||||
2020 |
2021 |
|||||||||||||||||||
GAAP | Impairment on investment in affiliates | Non-GAAP | GAAP | Impairment on investment in affiliates | Non-GAAP | Change% | ||||||||||||||
Net revenues | 3,268,145 | — | 3,268,145 | 3,271,114 | — | 3,271,114 | 0.1 | |||||||||||||
Income from operations | 302,186 | — | 302,186 | 301,905 | — | 301,905 | (0.1 | ) | ||||||||||||
Operating margin | 9.2 | % | — | 9.2 | % | 9.2 | % | 9.2 | % | — | ||||||||||
Share of income and impairment of affiliates, net | (2,738 | ) | (22,958 | ) | 20,220 | (20,573 | ) | (29,316 | ) | 8,743 | (56.8 | ) | ||||||||
Net income attributable to the Company’s shareholders | 268,254 | (22,958 | ) | 291,212 | 250,989 | (29,316 | ) | 280,305 | (3.7 | ) | ||||||||||
Net margin | 8.2 | % | — | 8.9 | % | 7.7 | % | 8.6 | % | (3.4 | ) | |||||||||
Net income per share | ||||||||||||||||||||
Basic | 0.25 | — | 0.27 | 0.23 | — | 0.26 | (3.7 | ) | ||||||||||||
Diluted | 0.25 | — | 0.27 | 0.23 | — | 0.26 | (3.7 | ) | ||||||||||||
Net income per ADS : | ||||||||||||||||||||
Basic | 5.00 | — | 5.42 | 4.67 | — | 5.22 | (3.7 | ) | ||||||||||||
Diluted | 4.99 | — | 5.42 | 4.67 | — | 5.22 | (3.7 | ) | ||||||||||||
Shares used in calculating net income per share : | ||||||||||||||||||||
Basic | 1,073,891,784 | — | 1,073,891,784 | 1,073,891,784 | — | 1,073,891,784 | ||||||||||||||
Diluted | 1,074,291,360 | — | 1,074,291,360 | 1,074,291,194 | — | 1,074,291,194 |
For more information, please contact:
Investor Relations
Tel: +86 (20) 8388-3191
Email: [email protected]
Source:
1 This announcement contains currency conversions of certain Renminbi (“RMB”) amounts into
2 Non-GAAP net income attributable to the Company’s shareholders is defined as net income attributable to the Company’s shareholders before impairment on investment in an affiliate.
3 Non-GAAP diluted net income per ADS is defined as non-GAAP net income attributable to the Company’s shareholders divided by total weighted average number of diluted ADSs of the Company outstanding during the period.
4 Non-GAAP net margin is defined as non-GAAP net income attributable to the Company's shareholders as a percentage of net revenues.
5 Non-GAAP basic net income per ADS is defined as non-GAAP net income attributable to the Company’s shareholders divided by total weighted average number of ADSs of the Company outstanding during the period.
6 Active customer accounts are defined as customer accounts that made at least one purchase directly through www.baoxian.com, its mobile application, or WeChat public account during the specified period.
7 Active users of Lan Zhanggui included users who sold at least one insurance policy through Lan Zhanggui (through either its mobile application or WeChat public account) during the specific period.
8 Performing agents are defined as agents who have sold at least one insurance policy during the specified period.
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