- Quarterly and Fiscal Year Net Revenues Exceed Prior Guidance -
- Quarterly Basic Net Income Per ADS up 114.4% to RMB2.055 (US$0.301) and Fiscal Year Basic Net Income Per ADS up 56.9% to RMB6.594 (US$0.966) -
- 30% Year-Over-Year Growth for Net Income Attributable to the Company's Shareholders Expected For First Quarter 2010 -
GUANGZHOU, China, March 3 /PRNewswire-Asia/ -- 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 fourth quarter and fiscal year ended December 31, 2009.(1)
Financial Highlights：
Highlights for Fourth Quarter 2009
-- Total net revenues: RMB355.5 million (US$52.1 million), representing an
increase of 26.3% from the corresponding period of 2008, which exceeded
the previous guidance of approximately 26% growth from the
corresponding period of 2008.
-- Income from operations: RMB110.2 million (US$16.1 million),
representing an increase of 117.8% from the corresponding period of
2008.
-- Net income attributable to the Company's shareholders: RMB93.8 million
(US$13.7 million), representing an increase of 114. 4% from the
corresponding period of 2008, and an increase of 27.8% from adjusted
net income attributable to the Company's shareholders excluding
one-time share-based compensation expense (non-GAAP) for the
corresponding period of 2008.
-- Basic and diluted net income per American Depositary Share ("ADS"):
RMB2.055 (US$0.301) and RMB1.995 (US$0.292), respectively, representing
an increase of 114.4% and 109.1%, respectively, from the corresponding
period of 2008.
Highlights for Fiscal Year 2009
-- Total net revenues: RMB1,154.9 million (US$169.2 million), representing
an increase of 36.8% from 2008, exceeding the previous guidance of
approximately 36% growth from 2008.
-- Income from operations: RMB326.2 million (US$47.8 million),
representing an increase of 55.5% from 2008.
-- Net income attributable to the Company's shareholders: RMB300.8 million
(US$44.1 million), representing an increase of 56.9% from 2008, and an
increase of 35.9% from adjusted net income attributable to the
Company's shareholders excluding the one-time share-based compensation
expense (non-GAAP) in fiscal year 2008.
-- Basic and diluted net income per ADS: RMB6.594 (US$0.966) and RMB6.481
(US$0.950), respectively, representing an increase of 56.9% and 55.0%,
respectively, from 2008.
"We are pleased to report continuing solid performance and net revenues in the fourth quarter of 2009 exceeding our previous guidance. This demonstrates our ability to execute on our strategy and deliver consistent results," commenting on the fourth quarter and 2009 full year financial results, Mr. Yinan Hu, Chairman and CEO of CNinsure, stated. "We are also pleased to report the further refinement of our business mix, which resulted from increased efforts to develop our life distribution capability as well as the recent industry-wide life insurance product mix restructuring campaign strongly advocated by the China Insurance Regulatory Commission ("CIRC")."
"Our leadership and values enabled us to further strengthen our partnership with insurers in 2009, making significant progress in achieving corporate-to-corporate arrangements not only within life insurance segments but also within the P&C insurance and claims adjusting segments, which translated into higher performance bonuses and strengthened margins as a whole."
"While continuing to deliver near-term profitability, we took multiple actions during 2009 to further improve our competitiveness to ensure sustainable growth in the long term. These initiatives include:
(i) diversifying our product and service offerings by introducing more
customized insurance policies;
(ii) extending our service offerings to consumer finance brokerage
through acquisition; and
(iii) rolling out our new operating platform company-wide."
Mr. Hu concluded, "Looking ahead to 2010, we expect to deliver strong growth of over 30% in net income with improving gross margin, driven by a few strong initiatives in the pipeline. These include build-out of new distribution channels (e.g. tele-marketing, online sales, brokerage business channel and bancassurance), introduction of more customized products for exclusive sales, and launching of bundled-sales campaigns. In addition, we expect to implement a fee-based revenue model, which has been successfully used by several of our P&C insurance agencies in 2009, on a wider-scale among our affiliated subsidiaries. With these moves, we believe that CNinsure's competitiveness and its leading position will be further enhanced amid the steadily recovering economy and a well regulated insurance market."
Financial Results for the Fourth Quarter Ended December 31, 2009
Total net revenues for the fourth quarter ended December 31, 2009 were RMB355.5 million (US$52.1 million), representing an increase of 26.3% from RMB281.4 million for the corresponding period of 2008. The increase was primarily driven by the significant growth of the life insurance business, and the increase in performance bonuses paid by life insurers as a result of growth in sales volume and more contracts entered into with life insurers at group levels.
Total operating costs and expenses were RMB245.3 million (US$35.9 million) for the fourth quarter of 2009, representing an increase of 6.2% from RMB230.9 million for the corresponding period of 2008, and an increase of 21.9% from adjusted operating costs and expenses of RMB201.2 million (non-GAAP) for the fourth quarter of 2008, which excluded a one-time charge of RMB29.6 million in share-based compensation expenses in the fourth quarter of 2008 that was associated with the surrender and cancellation of options to purchase an aggregate of 30,804,500 ordinary shares by various option holders.
Commissions and fees expenses were RMB177.2 million (US$26.0 million) for the fourth quarter of 2009, representing an increase of 21.5% from RMB145.9 million for the corresponding period of 2008. The increase was primarily due to sales growth and largely tracked the increase in net revenues from commissions and fees.
Selling expenses were RMB15.3 million (US$2.2 million) for the fourth quarter of 2009, representing an increase of 146.8% from RMB6.2 million for the corresponding period of 2008, primarily due to sales growth and the increase in expenses incurred by newly acquired entities.
General and administrative expenses were RMB52.8 million (US$7.7 million) for the fourth quarter of 2009, representing a decrease of 33.0% from RMB78.8 million for the corresponding period of 2008, and an increase of 7.5% from adjusted general and administrative expenses of RMB49.1 million (non-GAAP) for the fourth quarter of 2008, which excluded the aforementioned one-time share-based compensation expense. The increase was primarily due to the following factors:
1. increases in depreciation of fixed assets as a result of the
commencement of the operation of the upgraded IT system in affiliated
entities in 2009; and
2. increases in amortization of intangible assets as a result of the
acquisitions that we made in 2008 and 2009;
As a result of the foregoing factors, income from operations was RMB110.2 million (US$16.1 million) for the fourth quarter of 2009, representing an increase of 117.8% from RMB50.6 million for the corresponding period of 2008, and an increase of 37.4% from adjusted income from operations of RMB80.2 million (non-GAAP) for the fourth quarter of 2008, which excluded the aforementioned one-time share-based compensation expense. Operating margin was 31.0% for the fourth quarter of 2009, compared to 18.0% for the corresponding period of 2008.
Interest income for the fourth quarter of 2009 was RMB7.2 million (US$1.1 million), representing a decrease of 36.8% from RMB11.4 million for the corresponding period of 2008, primarily due to a decrease in bank deposit interest rates.
Income tax expense for the fourth quarter of 2009 was RMB28.3 million (US$4.2 million), representing an increase of 60.8% from RMB17.6 million for the corresponding period of 2008. The increase was primarily attributable to the increases of operating income and effective income tax rate in Shenzhen from 18% in 2008 to 20% in 2009. The effective income tax rate applicable to the Company was 24.1% for the fourth quarter of 2009, compared to 28.3% for the corresponding period of 2008.
Net income attributable to the Company's shareholders was RMB93.8 million (US$13.7 million) for the fourth quarter of 2009, representing an increase of 114.4% from RMB43.7 million for the corresponding period of 2008, and an increase of 27.8% from adjusted net income attributable to the Company's shareholders of RMB73.4 million (non-GAAP) for the corresponding period of 2008, which excluded the aforementioned share-based compensation expense.
Net margin was 26.4% for the fourth quarter of 2009 compared to 15.6% for the corresponding period of 2008.
Basic net income per ADS was RMB2.055 (US$0.301) for the fourth quarter of 2009, representing an increase of 114.4% from RMB0.959 for the corresponding period of 2008. Fully diluted net income per ADS was RMB1.995 (US$0.292) for the fourth quarter of 2009, representing an increase of 109.1% from RMB0.954 for the corresponding period of 2008.
As of December 31, 2009, the Company had RMB1,457.9 million (US$213.6 million) in cash and cash equivalents.
Financial Results for the Year Ended December 31, 2009
Total net revenues for fiscal year 2009 were RMB1,154.9 million (US$169.2 million), representing an increase of 36.8% from RMB844.0 million in fiscal year 2008.
The increase was primarily attributable to (1) enhanced sales and marketing efforts with the number of sales agents increasing by 33.9% year-over-year to 38,675 and claims adjusters increasing by 86.6% year-over-year to 1,556 in 2009 respectively; (2) newly acquired and established entities, including the subsidiaries under the Datong segment; and (3) the increase in performance bonuses paid by life insurers as a result of growth in sales volume and more contracts entered into with life insurers at group levels.
Total operating costs and expenses were RMB828.7 million (US$121.4 million) for fiscal year 2009, representing an increase of 30.7% from RMB634.2 million in fiscal year 2008, and an increase of 37.1% from adjusted operating costs and expenses of RMB604.5 million (non-GAAP) for the fourth quarter of 2008, which excluded the aforementioned one-time share-based compensation expense.
Commissions and fees expenses were RMB579.9 million (US$85.0 million) for fiscal year 2009, representing an increase of 32.8% from RMB436.8 million in fiscal year 2008. The increase was primarily due to sales growth and largely tracked the increase in net revenues from commissions and fees.
Selling expenses were RMB49.5 million (US$7.3 million) for fiscal year 2009, representing an increase of 186.1% from RMB17.3 million in fiscal year 2008. The increase was primarily due to the establishment of more new branches and subsidiaries under the Datong and Claims Adjusting segments and an increase in sales promotion expenses.
General and administrative expenses were RMB199.2 million (US$29.2 million) for fiscal year 2009, representing an increase of 10.7% from RMB180.0 million in fiscal year 2008, and an increase of 32.4% from adjusted general and administrative expenses of RMB150.4 million (non-GAAP) in fiscal year 2008, which excluded the aforementioned one-time share-based compensation expense. The increase was primarily due to the following factors:
1. increases in depreciation of fixed assets as a result of the
commencement of the operation of our upgraded IT system in affiliated
entities in 2009;
2. increases in headcount, primarily as result of the recruitment of more
high-caliber senior managers, and higher base salaries for the
managerial and administrative staff;
3. increases in amortization of intangible assets as a result of the
acquisitions we made in 2008 and 2009; and
4. increases in office rental expenses and expenses incurred by newly
acquired entities and the expansion of distribution and service
network.
As a result of the foregoing factors, income from operations was RMB326.2 million (US$47.8 million) for fiscal year 2009, representing an increase of 55.5% from RMB209.8 million in fiscal year 2008, and an increase of 36.3% from adjusted income from operations of RMB239.4 million (non-GAAP) in fiscal year 2008, which excluded the aforementioned one-time charge of share-based compensation expense recognized in the fourth quarter of 2008. Operating margin was 28.2% for fiscal year 2009 as compared to 24.9% for fiscal year 2008.
Interest income for fiscal year 2009 was RMB33.3 million (US$4.9 million), representing a decrease of 30.6% from RMB48.0 million in fiscal year 2008, primarily attributable to a decrease in bank deposit interest rates.
Income tax expense for fiscal year 2009 was RMB95.6 million (US$14.0 million), representing an increase of 53.2% from RMB62.4 million in fiscal year 2008. The increase was primarily attributable to the increase of operating income and the increase of effective income tax rate in Shenzhen from 18% in 2008 to 20% in 2009. The effective income tax rate applicable to the Company was 25.6% for fiscal year 2009, compared to 24.2% for fiscal year 2008.
Net income attributable to the Company's shareholders was RMB300.8 million (US$44.1 million) for fiscal year 2009, representing an increase of 56.9% from RMB191.7 million in fiscal year 2008, and an increase of 35.9% from adjusted net income attributable to the Company's shareholders of RMB221.4 million (non-GAAP) in fiscal year 2008, which excluded the aforementioned one-time charge of share-based compensation expense recognized in the fourth quarter of 2008.
Net margin was 26.1% for fiscal year 2009, compared to 22.7% in fiscal year 2008.
Basic net income per ADS was RMB6.594 (US$0.966) for fiscal year 2009, representing an increase of 56.9% from RMB4.202 in fiscal year 2008. Fully diluted net income per ADS was RMB6.481 (US$0.938) for fiscal year 2009, representing an increase of 55.0% from RMB4.180 in fiscal year 2008.
Recent developments:
-- On February 23, 2010 and November 26, 2009, CNinsure signed strategic
partnership agreements with Sunshine Property and Casualty ("P&C")
Insurance Co., Ltd. and China Pacific Property Insurance Co., Ltd,
respectively, for collaboration in product distribution, development
and exclusive distribution of customized products as well as provision
of claims adjusting services. CNinsure has so far entered into
strategic partnerships with four P&C insurers in total.
-- On February 08, 2010, the Company's board of directors approved the
grant of options to purchase an aggregate of 48,000,000 ordinary shares
of the Company to various directors, officers and employees under the
Company's amended and restated 2007 Share Incentive Plan. The exercise
price of these options is US$0.840 per ordinary share, equal to the
closing price of the Company's ADS on the Nasdaq Global Select Market
at the grant date (after adjusting for the 20 ordinary shares to 1 ADS
ratio). The options granted to senior management and key employees will
be vested according to their Key Performance Indicator (KPI) results
for the fiscal year of 2010. The options will vest over a four-year
period starting from March 31, 2011.
-- As of December 31, 2009, CNinsure's distribution and service network
consisted of 47 insurance agencies, four insurance brokerages and four
claims adjusting firms with 501 sales and services outlets operating in
22 provinces, compared to 40 insurance agencies, five insurance
brokerages and three claims adjusting firms with 352 sales and service
outlets operating in 17 provinces as of December 31, 2008. CNinsure had
38,675 sales agents and 1,556 claims adjustors as of December 31, 2009,
compared to 28,886 sales agents and 834 claims adjustors as of December
31, 2008.
-- Net revenues from commissions and fees derived from the "P&C" Insurance,
Life Insurance and Claims Adjusting businesses for the fiscal year 2009
each contributed 67.8%, 20.0% and 12.2% of its total net revenues,
respectively, in 2009, compared to 75.0%, 14.4% and 10.6%, respectively,
in 2008.
-- On December 31, 2009, CNinsure announced the acquisition of an
additional 41% equity interest in Hebei Fanlian Insurance Agency Co.,
Ltd., increasing its stake from 10% to 51%. The transaction has been
completed in January 2010.
-- On December 30, 2009, Datong Insurance Sales & Service Company Limited,
a wholly-owned subsidiary of Beijing Fanhua Datong Investment and
Management Co., Ltd ("Datong"), which is 55% owned by CNinsure, was
granted the first nationwide insurance agency operating license by the
CIRC. The license will enable Datong and its branches to operate
insurance distribution business nationally without additional licensing
requirements.
-- According to the Insurance Intermediary Market Development Report
published by the CIRC, based on revenues for fiscal year 2009, CNinsure
had eight affiliated insurance agencies and three affiliated claims
adjusting firms among China's top 20 of their respective categories,
each accounting for 11.53% and 13.18% of the total revenues of all
insurance agencies and claims adjusting firms, respectively, in China.
-- CNinsure was selected by Forbes China as one of the most promising up
and comers in 2010, ranking 14th among the top 200 SMEs with greatest
growth potentials. Rankings are based on revenue growth, net income
growth, ROTA, ROE and operating margins of the candidates for the
previous three years.
-- Mr. Yinan Hu, CNinsure's Chairman and Chief Executive Officer, and Mr.
Yongwei Ma, CNinsure's independent director, former Chairman of the
CIRC, were named among "the 60 Greatest Insurance leaders in 60 Years
of New China's History" by the China Insurance News, in recognition of
their outstanding contributions to the growth of the insurance industry
in China
Business Outlook
Going forward, the Company will offer quarterly guidance for net income attributable to the Company's shareholders instead of total net revenues in view of the increased uncertainty in its revenues due to the adoption of the new fee-based revenue model by some of its subsidiaries.
CNinsure expects its net income attributable to the Company's shareholders to grow by approximately 30% for the first quarter 2010 compared to the corresponding period of 2009. This forecast reflects CNinsure's current and preliminary view, which is subject to change.
Conference Call
The Company will host a conference call to discuss the fourth quarter 2009 results at
Time: 8:00 pm Eastern Standard Time on March 2, 2010
or 9:00 am Beijing/Hong Kong Time on March 3, 2010
The dial-in numbers:
United States: +1-877-538-6619
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: 618842#
A replay of the call will be available for 30 days as follows:
+852-3005-2020 (Hong Kong & other areas)
PIN number: 147257#
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 March 2, 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.
About Non-GAAP Financial Measures
To supplement CNinsure's consolidated financial results presented in accordance with GAAP, CNinsure uses in this release the following non-GAAP financial measures: adjusted total operating costs and expenses, adjusted general and administrative expenses, adjusted net income from operations and adjusted net income attributable the Company's shareholders, which exclude the one-time charge of RMB 29.6 million recognized as share-based compensation expenses in the fourth quarter of 2008, as a result of the surrender and cancellation of options to purchase an aggregate of 30,804,500 ordinary shares by various option holders in December 2008. 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 non-GAAP financial measures to comparable GAAP measures" set forth at the end of this release.
CNinsure believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating results. 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 adjusted operating costs and expenses, adjusted general and administrative expenses, adjusted operating income and adjusted net income is that these non-GAAP measures exclude the one-time share-based compensation charge that was a significant expense in the fourth quarter of 2008. Management compensates for this limitation by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are comparable to non-GAAP financial measures.
CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
As of As of As of
December 31, December 31, December 31,
2008(2) 2009 2009
(As Adjusted)
RMB RMB US$
ASSETS:
Current assets:
Cash and cash equivalents 1,510,432 1,457,890 213,582
Restricted cash 4,200 1,957 287
Accounts receivable, net 90,452 181,360 26,569
Insurance premium receivables 21 230 34
Other receivables 57,151 52,108 7,634
Deferred tax assets 1,808 2,602 381
Amounts due from related parties 207,595 25,337 3,712
Other current assets 5,224 6,015 881
Total current assets 1,876,883 1,727,499 253,080
Non-current assets:
Property, plant, and
equipment, net 72,538 108,318 15,869
Goodwill 37,888 535,911 78,511
Intangible assets 53,518 81,485 11,938
Deferred tax assets 4,836 3,801 557
Investment in affiliates 427 86,701 12,701
Other non-current assets 425 2,250 330
Total assets 2,046,515 2,545,965 372,986
CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets-(Continued)
(In thousands)
As of As of As of
December 31, December 31, December 31,
2008(2) 2009 2009
(As adjusted)
RMB RMB US$
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable 59,867 72,716 10,653
Insurance premium payables 4,200 1,957 287
Other payables and accrued expenses 73,712 182,139 26,684
Accrued payroll 15,336 24,152 3,538
Income tax payable 26,140 37,410 5,480
Amounts due to related parties 10,967 19,274 2,824
Total current liabilities 190,222 337,648 49,466
Non-current liabilities:
Other tax liabilities 1,871 2,537 372
Deferred tax liabilities 8,351 19,075 2,794
Total liabilities 200,444 359,260 52,632
Common stock 7,036 7,036 1,031
Additional paid-in capital 1,666,723 1,604,774 235,101
Statutory reserves 71,237 103,877 15,218
Retained earnings 80,462 348,663 51,079
Accumulated other comprehensive
loss (73,810) (72,542) (10,628)
Total CNinsure Inc.
shareholders' equity 1,751,648 1,991,808 291,801
Noncontrolling Interests(2) 94,423 194,897 28,553
Total shareholders' equity 1,846,071 2,186,705 320,354
Total liabilities and
shareholders' equity 2,046,515 2,545,965 372,986
CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except for shares and per share and per ADS data)
For The Three Months Ended
December 31,
2008(3) 2009 2009
(As Adjusted)
RMB RMB US$
Net revenues:
Commissions and fees 281,266 355,217 52,040
Other service fees 155 278 40
Total net revenues 281,421 355,495 52,080
Operating costs and expenses:
Commissions and fees (145,861) (177,180) (25,957)
Selling expenses (6,222) (15,342) (2,248)
General and administrative
expenses (78,768) (52,809) (7,736)
Total operating costs and
expenses (230,851) (245,331) (35,941)
Net income from operations 50,570 110,164 16,139
Other income, net:
Gain on disposal of a
subsidiary 525 -- --
Investment income -- -- --
Interest income 11,414 7,195 1,054
Interest expense (29) -- --
Others, net (155) 371 54
Changes in fair value of
contingent consideration
payables -- -- --
Net income before income taxes 62,325 117,730 17,247
Income tax expense (17,648) (28,328) (4,150)
Share of income of affiliated
companies 135 811 119
Net income 44,812 90,213 13,216
For The Twelve Months Ended
December 31,
2008(3) 2009 2009
(As Adjusted)
RMB RMB US$
Net revenues:
Commissions and fees 843,107 1,154,090 169,075
Other service fees 855 761 112
Total net revenues 843,962 1,154,851 169,187
Operating costs and expenses:
Commissions and fees (436,803) (579,911) (84,957)
Selling expenses (17,328) (49,498) (7,252)
General and administrative
expenses (180,031) (199,246) (29,190)
Total operating costs and
expenses (634,162) (828,655) (121,399)
Net income from operations 209,800 326,196 47,788
Other income, net:
Gain on disposal of a
Subsidiary 525 -- --
Investment income -- 18,905 2,770
Interest income 47,967 33,299 4,878
Interest expense (95) (4) (1)
Others, net (28) 1,408 206
Changes in fair value of
contingent consideration
payables -- (5,946) (871)
Net income before income taxes 258,169 373,858 54,770
Income tax expense (62,438) (95,618) (14,008)
Share of income of affiliated
companies 135 774 114
Net income 195,866 279,014 40,876
CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations-(Continued)
(In thousands, except for shares and per share and per ADS data)
For The Three Months Ended
December 31,
2008(3) 2009 2009
(As Adjusted)
RMB RMB US$
Less: Net income (loss)
attributable to the
noncontrolling interests 1,076 (3,561) (522)
Net income attributable to the
Company's shareholders 43,736 93,774 13,738
Net income per share:
Basic 0.048 0.103 0.015
Diluted 0.048 0.100 0.015
Net income per ADS:
Basic 0.959 2.055 0.301
Diluted 0.954 1.995 0.292
Shares used in calculating net
income per share and ADS:
Basic 912,497,726 912,497,726 912,497,726
Diluted 916,705,322 940,308,935 940,308,935
For The Twelve Months Ended
December 31,
2008(3) 2009 2009
(As Adjusted)
RMB RMB US$
Less: Net income (loss)
attributable to the
noncontrolling interests 4,129 (21,827) (3,197)
Net income attributable to the
Company's shareholders 191,737 300,841 44,073
Net income per share:
Basic 0.210 0.330 0.048
Diluted 0.209 0.324 0.047
Net income per ADS:
Basic 4.202 6.594 0.966
Diluted 4.180 6.481 0.950
Shares used in calculating net
income per share and ADS:
Basic 912,497,726 912,497,726 912,497,726
Diluted 917,335,390 928,312,312 928,312,312
CNINSURE INC.
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures
(In RMB in thousands)
For The Three Months Ended For The Three Months Ended
December 31, 2008 December 31, 2009
GAAP Adjustment Non-GAAP GAAP Adjustment Non-GAAP
Total operating
cost and expenses 230,851 (29,634) 201,217 245,331 -- 245,331
General and
administrative
expenses 78,768 (29,634) 49,134 52,809 -- 52,809
Net income from
operation 50,570 29,634 80,204 110,164 -- 110,164
Net income
attributable
to the
Company's
shareholders 43,736 29,634 73,370 93,774 -- 93,774
For The Twelve Months Ended For The Twelve Months Ended
December 31, 2008 December 31, 2009
GAAP Adjustment Non-GAAP GAAP Adjustment Non-GAAP
Total operating
cost and expenses 634,162 (29,634) 604,528 828,655 -- 828,655
General and
administrative
expenses 180,031 (29,634) 150,397 199,246 -- 199,246
Net income from
operation 209,800 29,634 239,434 326,196 -- 326,196
Net income
attributable
to the
Company's
shareholders 191,737 29,634 221,371 300,841 -- 300,841
(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 RMB6.8259 to US$1.00,
the effective noon buying rate as of December 31, 2009 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) Effective from January 1, 2009, the Company adopted Financial
Accounting Standards Board (FASB) Accounting Standards Codification
810 ("ASC 810") Non-controlling Interests, (formerly FASB Statement
("SFAS") No. 160, Non-controlling Interests in Consolidated Financial
Statements). As a result, the presentation and disclosure requirements
had applied retrospectively for all periods presented, requires
noncontrolling interests to be separately presented as a component of
stockholders' equity on the consolidated balance sheets. The balance
sheet data as of December 31, 2008 was extracted from the Form 20-F
for the year ended December 31, 2008, as adjusted to give the effect
of the adoption of ASC 810.
(3) Amounts were extracted from the current report on Form 6-K filed on
February 25, 2009, as adjusted to give the effect of the adoption of
ASC 810, Non-controlling Interests, (formerly SFAS No. 160).
