{"id":388157,"date":"2020-11-24T16:48:02","date_gmt":"2020-11-24T21:48:02","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=388157"},"modified":"2020-11-24T16:48:02","modified_gmt":"2020-11-24T21:48:02","slug":"fanhua-reports-third-quarter-2020-unaudited-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fanhua-reports-third-quarter-2020-unaudited-financial-results\/","title":{"rendered":"Fanhua Reports Third Quarter 2020 Unaudited Financial Results"},"content":{"rendered":"
\n

GUANGZHOU, China, Nov. 24, 2020 (GLOBE NEWSWIRE) — Fanhua Inc., (Nasdaq: FANH), (the \u201cCompany\u201d or \u201cFanhua\u201d), a leading independent financial services provider in China, today announced its unaudited financial results for the third quarter ended September 30, 20201<\/sup>.<\/p>\n

\n Financial Highlights for<\/strong>
\n the <\/strong>
\n Third quarter<\/strong>
\n of 2020:<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n
(In thousands, except per ADS)<\/td>\n\n 201<\/strong>
\n 9Q3<\/strong>
\n
\n \uff08<\/strong>
\n RMB<\/strong>
\n \uff09<\/strong>\n <\/td>\n		\n 20<\/strong>
\n 20Q3<\/strong>
\n
\n (RMB)<\/strong>\n <\/td>\n		\n 20<\/strong>
\n 20Q3<\/strong>
\n
\n (US$)<\/strong>\n <\/td>\n		\n Change %<\/strong>\n <\/td>\n<\/tr>\n
Total net revenues<\/td>\n823,351<\/td>\n812,003<\/td>\n119,595<\/td>\n(1.4)<\/td>\n<\/tr>\n
Operating income<\/td>\n151,447<\/td>\n73,326<\/td>\n10,800<\/td>\n(51.6)<\/td>\n<\/tr>\n
Non-GAAP operating income2<\/sup><\/td>\n111,623<\/td>\n72,736<\/td>\n10,713<\/td>\n(34.8)<\/td>\n<\/tr>\n
Net income attributable to
the Company\u2019s shareholders<\/td>\n		168,332<\/td>\n75,322<\/td>\n11,094<\/td>\n(55.3)<\/td>\n<\/tr>\n
Non-GAAP net income
attributable to the Company\u2019s
shareholders3<\/sup><\/td>\n		128,508<\/td>\n74,732<\/td>\n11,007<\/td>\n(41.8)<\/td>\n<\/tr>\n
Diluted net income per ADS<\/td>\n3.12<\/td>\n1.40<\/td>\n0.21<\/td>\n(55.1)<\/td>\n<\/tr>\n
Non-GAAP diluted net income
per ADS4<\/sup><\/td>\n		2.38<\/td>\n1.39<\/td>\n0.20<\/td>\n(41.6)<\/td>\n<\/tr>\n
Cash, cash equivalents and short-
term investments (As of
September 30, 2019 and 2020)<\/td>\n		1,760,966<\/td>\n1,700,472<\/td>\n250,453<\/td>\n(3.4)<\/td>\n<\/tr>\n<\/table>\n

Commenting on the third quarter results, Mr. Chunlin Wang, chairman and chief executive officer said, \u201cIn the third quarter of 2020, our life insurance gross written premiums achieved RMB2.4 billion, with a year-on-year increase of 15.5%, outpacing the industry growth rate of 9.2%. During the same period, first year premiums reached RMB582.7 million and annualized premiums equivalent5<\/sup> were RMB333.5 million while renewal premiums exceeded RMB1.8 billion. The decline in new policies written is mainly attributable to the ongoing impact from the pandemic, the industry-wide downward pressure and slower recruitment in new agents, which partially offset the increase in renewal premiums.<\/p>\n

\u201cIn recent years, we\u2019ve seen a gradual transformation in the Chinese insurance industry, catalyzed by the sweeping impact of digital technology, a trend that has been further accelerated by the pandemic. In order to lead Fanhua into the post Covid-19 era, we have adopted a strategy of \u2018a professional sales force, digital capability and open platform\u2019. We believe that this strategy will enable Fanhua to strengthen its position as a market leader in the professional intermediary industry. The Company plans to upgrade its sales organization by selecting and developing high-caliber, productive and professional insurance advisor teams in economically developed cities in China. We also intend to build an integrated digital platform utilizing artificial intelligence, big data and cloud computing, enabling us to optimize the use of data to provide the most appropriate products for existing and potential customers and increase agent productivity. Finally, we will build an open platform to facilitate a closer cooperation with various third parties who can monetize their existing customer resources and to strengthen our value proposition to the market.<\/p>\n

\u201cWhile the immediate future remains challenging for the industry, we anticipate year-on-year growth in the first quarter next year and significant incremental contribution from the strategy to our results in the second half of 2021. We are confident in our ability to retain the Company\u2019s position as a leader in the professional insurance intermediary sector over the long run.\u201d<\/p>\n

\n Financial Results for the <\/strong>
\n Third quarter<\/strong>
\n of<\/strong>
\n 20<\/strong>
\n 20<\/strong>\n <\/p>\n

\n Total net revenues <\/strong>were RMB812.0 million (US$119.6 million) for the third quarter of 2020, representing a decrease of 1.4% from RMB823.4 million for the corresponding period in 2019.<\/p>\n