{"id":739653,"date":"2023-03-13T17:34:01","date_gmt":"2023-03-13T21:34:01","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fanhua-reports-fourth-quarter-and-fiscal-year-2022-unaudited-financial-results\/"},"modified":"2023-03-13T17:34:01","modified_gmt":"2023-03-13T21:34:01","slug":"fanhua-reports-fourth-quarter-and-fiscal-year-2022-unaudited-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fanhua-reports-fourth-quarter-and-fiscal-year-2022-unaudited-financial-results\/","title":{"rendered":"Fanhua Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results"},"content":{"rendered":"

\n— Net Income Attributable to Shareholders for the Fourth Quarter of 2022 up 545.0% YoY —
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GUANGZHOU, China, March 13, 2023 (GLOBE NEWSWIRE) — Fanhua Inc. (Nasdaq: FANH<\/a>) (the \u201cCompany\u201d or \u201cFanhua\u201d), a leading independent financial services provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 20221<\/sup>.<\/p>\n

\n Financial Highlights for the Fourth Quarter of 2022:<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n
(In thousands, except per ADS)<\/td>\n\n 2021Q4<\/strong>
\n
\n (RMB)<\/strong>\n <\/td>\n		\n 2022Q4<\/strong>
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\n (RMB)<\/strong>\n <\/td>\n		\u00a0<\/td>\n\n 2022Q4<\/strong>
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\n (US$)<\/strong>\n <\/td>\n		\u00a0<\/td>\n\n Change %<\/strong>\n <\/td>\n<\/tr>\n
Total net revenues<\/td>\n802,629<\/td>\n\u00a0<\/td>\n767,365<\/td>\n\u00a0<\/td>\n111,258<\/td>\n\u00a0<\/td>\n(4.4<\/td>\n)<\/td>\n<\/tr>\n
Operating income<\/td>\n82,336<\/td>\n\u00a0<\/td>\n84,893<\/td>\n\u00a0<\/td>\n12,309<\/td>\n\u00a0<\/td>\n3.1<\/td>\n\u00a0<\/td>\n<\/tr>\n
Impairment on investment in an affiliate<\/td>\n(29,316<\/td>\n)<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net income attributable to the Company\u2019s shareholders<\/td>\n10,949<\/td>\n\u00a0<\/td>\n70,616<\/td>\n\u00a0<\/td>\n10,239<\/td>\n\u00a0<\/td>\n545.0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Non-GAAP net income attributable to the Company\u2019s shareholders2<\/sup><\/td>\n40,265<\/td>\n\u00a0<\/td>\n70,915<\/td>\n\u00a0<\/td>\n10,282<\/td>\n\u00a0<\/td>\n76.1<\/td>\n\u00a0<\/td>\n<\/tr>\n
Diluted net income per ADS<\/td>\n0.20<\/td>\n\u00a0<\/td>\n1.31<\/td>\n\u00a0<\/td>\n0.19<\/td>\n\u00a0<\/td>\n555.0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Non-GAAP diluted net income per ADS3<\/sup><\/td>\n0.75<\/td>\n\u00a0<\/td>\n1.32<\/td>\n\u00a0<\/td>\n0.19<\/td>\n\u00a0<\/td>\n76.0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash, cash equivalents, short- term investments and others (As of December, 31, 2021 and 2022)<\/td>\n1,435,306<\/td>\n\u00a0<\/td>\n1,488,6324<\/sup><\/td>\n\u00a0<\/td>\n215,831<\/td>\n\u00a0<\/td>\n3.7<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

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\n Financial Highlights for Year 2022:<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n
(In thousands, except per ADS)<\/td>\n\n 2021<\/strong>
\n
\n (RMB)<\/strong>\n <\/td>\n		\n 2022<\/strong>
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\n (RMB)<\/strong>\n <\/td>\n		\n 2022<\/strong>
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\n (US$)<\/strong>\n <\/td>\n		\n Change %<\/strong>\n <\/td>\n<\/tr>\n
Total net revenues<\/td>\n3,271,114<\/td>\n\u00a0<\/td>\n2,781,614<\/td>\n\u00a0<\/td>\n403,296<\/td>\n\u00a0<\/td>\n(15.0<\/td>\n)<\/td>\n<\/tr>\n
Operating income<\/td>\n301,905<\/td>\n\u00a0<\/td>\n168,675<\/td>\n\u00a0<\/td>\n24,455<\/td>\n\u00a0<\/td>\n(44.1<\/td>\n)<\/td>\n<\/tr>\n
Impairment on investment in an affiliate<\/td>\n(29,316<\/td>\n)<\/td>\n(78,277<\/td>\n)<\/td>\n(11,349<\/td>\n)<\/td>\n167.0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net income attributable to the Company\u2019s shareholders<\/td>\n250,989<\/td>\n\u00a0<\/td>\n100,272<\/td>\n\u00a0<\/td>\n14,538<\/td>\n\u00a0<\/td>\n(60.0<\/td>\n)<\/td>\n<\/tr>\n
Non-GAAP net income attributable to the Company\u2019s shareholders2<\/sup><\/td>\n280,305<\/td>\n\u00a0<\/td>\n179,010<\/td>\n\u00a0<\/td>\n25,954<\/td>\n\u00a0<\/td>\n(36.1<\/td>\n)<\/td>\n<\/tr>\n
Diluted net income per ADS<\/td>\n4.67<\/td>\n\u00a0<\/td>\n1.87<\/td>\n\u00a0<\/td>\n0.27<\/td>\n\u00a0<\/td>\n(60.0<\/td>\n)<\/td>\n<\/tr>\n
Non-GAAP diluted net income per ADS3<\/sup><\/td>\n5.22<\/td>\n\u00a0<\/td>\n3.33<\/td>\n\u00a0<\/td>\n0.48<\/td>\n\u00a0<\/td>\n(36.2<\/td>\n)<\/td>\n<\/tr>\n<\/table>\n

Mr. Yinan Hu, chairman and chief executive officer of Fanhua, commented on the financial results of fourth quarter and fiscal year of 2022, \u201cChina\u2019s insurance market is undergoing profound transformation. We believe life insurance sales intermediaries will become increasingly more professional, personalized and fragmented, while the service providers of supporting platforms will become more concentrated.<\/p>\n

\u201cTo fully capitalize on the growth opportunities amid industry transformation, Fanhua has been steadfastly implementing the \u201cProfessionalization, Career-based, Digitalization and Open-Platform\u201d strategy, aiming to transform the company from a sole insurance distributor to a technology-driven digital platform that empowers the industry.<\/p>\n

\u201cAs we focused on executing the new strategy in 2022, we continued to see fruitful results with steady growth across various operating metrics. During the fourth quarter of 2022, despite challenges from surge of COVID-19 cases in December 2022, we delivered approximately RMB3.6 billion in total gross written premiums (\u201cGWP\u201d), up 11.7% year-over-year, of which first year premiums (\u201cFYP\u201d) grew by 19.6% year-over-year. We had operating income of RMB84.9 million, far ahead of our previous expectations, while non-GAAP net income attributable to the Company\u2019s shareholders grew by 76.1% year-over-year to RMB70.9 million. For 2022, total GWP facilitated by Fanhua grew by 10.3% year over year to RMB12.8 billion, of which the FYP reached RMB2.9 billion, up 3.5% year over year. Excluding the business in January of 2021 and 2022 when a regulatory change had created a high base in January 2022, our FYP in the last 11 months of 2022 grew by approximately 20.1% year over year. Operating income for 2022 reached RMB168.7 million.<\/p>\n

\u201cAs we accelerate our strategic transformation in 2023, we aim to gain more market share by focusing on the following initiatives: (i) enhancing efforts on the professionalization and career-based development of our sales force; (ii) increasing investment in enhancing digital operation capabilities; and (iii) speeding up strategic acquisitions. Our target is to achieve no less than 50% year-over-year growth in both life insurance FYP and operating income in 2023.\u201d<\/p>\n

\n Share Repurchase Program <\/strong>\n <\/p>\n

On December 20, 2022, the Company\u2019s board of directors announced a share repurchase program which authorized the Company to repurchase up to US$20 million of its American depositary shares (\u201cADS\u201d). As of December 31, 2022, the Company had repurchased an aggregate of 72,465 ADS, at an average price of approximately US$7.85 per ADS for a total amount of approximately US$0.6 million. The repurchased shares are intended to be used to fund strategic acquisitions.<\/p>\n

\n Financial Results for the Fourth Quarter of 2022<\/strong>\n <\/p>\n

\n Total net revenues <\/strong>were RMB767.4 million (US$111.3 million) for the fourth quarter of 2022, representing a decrease of 4.4% from RMB802.6 million for the corresponding period in 2021.<\/p>\n