{"id":780914,"date":"2023-08-30T08:32:02","date_gmt":"2023-08-30T12:32:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fanhua-reports-second-quarter-2023-unaudited-financial-results\/"},"modified":"2023-08-30T08:32:02","modified_gmt":"2023-08-30T12:32:02","slug":"fanhua-reports-second-quarter-2023-unaudited-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fanhua-reports-second-quarter-2023-unaudited-financial-results\/","title":{"rendered":"FANHUA Reports Second Quarter 2023 Unaudited Financial Results"},"content":{"rendered":"

\n Operating Income for the Second Quarter of 2023 Up 177.3% YoY, Beating Prior Guidance
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GUANGZHOU, China, Aug. 30, 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 second quarter ended June 30, 20231<\/sup>.<\/p>\n

\n Financial Highlights for the Second Quarter of 2023:<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
(In thousands, except per ADS data and percentages)<\/td>\n\n 2022Q2<\/strong>
\n
\n (RMB)<\/strong>\n <\/td>\n		\n 2023Q2<\/strong>
\n
\n (RMB)<\/strong>\n <\/td>\n		\n 2023Q2<\/strong>
\n
\n (US$)<\/strong>\n <\/td>\n		\n Change %<\/strong>\n <\/td>\n<\/tr>\n
Total net revenues<\/td>\n703,116<\/td>\n1,132,640<\/td>\n156,198<\/td>\n61.1<\/td>\n<\/tr>\n
Operating income<\/td>\n31,028<\/td>\n86,032<\/td>\n11,864<\/td>\n177.3<\/td>\n<\/tr>\n
Net income attributable to shareholders<\/td>\n32,123<\/td>\n76,515<\/td>\n10,551<\/td>\n138.2<\/td>\n<\/tr>\n
Adjusted EBITDA2<\/sup><\/td>\n35,711<\/td>\n104,141<\/td>\n14,361<\/td>\n191.6<\/td>\n<\/tr>\n
Diluted net income per ADS<\/td>\n0.60<\/td>\n1.42<\/td>\n0.20<\/td>\n136.7<\/td>\n<\/tr>\n
Diluted adjusted EBITDA per ADS3<\/sup><\/td>\n0.66<\/td>\n1.93<\/td>\n0.27<\/td>\n192.4<\/td>\n<\/tr>\n
Cash, cash equivalent, short-term investments at end of the period<\/td>\n1,090,044<\/td>\n1,611,554<\/td>\n222,243<\/td>\n47.8<\/td>\n<\/tr>\n
\n Key operating metrics<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total life gross written premiums (\u201cGWP\u201d)<\/td>\n2,778,100<\/td>\n4,340,012<\/td>\n598,515<\/td>\n56.2<\/td>\n<\/tr>\n
–\u00a0 \u00a0First year premium (\u201cFYP\u201d)<\/td>\n615,723<\/td>\n1,558,093<\/td>\n214,871<\/td>\n153.1<\/td>\n<\/tr>\n
–\u00a0 \u00a0Renewal premium<\/td>\n2,162,376<\/td>\n2,781,918<\/td>\n383,644<\/td>\n28.7<\/td>\n<\/tr>\n
Number of life insurance performing agents<\/td>\n10,653<\/td>\n8,189<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
FYP per life insurance performing agent<\/td>\n47,671<\/td>\n122,436<\/td>\n–<\/td>\n156.8<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n Mr. Yinan Hu, Co-Chairman and Chief Executive Officer, commented: <\/strong>\u201cFANHUA has delivered a set of excellent results, boasting a remarkable revenue growth of 61.1% year over year and an impressive operating income growth of 177.3% year-over-year. These results were driven by a combination of our continued execution of a well-defined strategy and a regulatory body-mandated pricing rate change with regard to traditional life insurance products (“pricing rate change”), which led to a strong surge in certain savings products across the industry.<\/p>\n

\u201cI am particularly pleased that our focus on quality services has resulted in a consistent improvement of our persistency ratio which is a positive outcome for our insurance partners. Our digitization and platform strategy continue to deliver operating efficiency for us and is a key driver of our financial results over the quarter.<\/p>\n

\u201cWhile the outlook for the industry in the second half of 2023 is likely to be adversely impacted by the recent pricing rate change, we remain confident that the medium- to long-term outlook of the life insurance industry and in particular, the third-party distribution channel that we operate in, remain promising.<\/p>\n

\u201cWe have recently released a new version of our company mission statement and core values. In essence, our mission revolves around empowering the growth of independent financial advisors and fostering sustainable value creation for our clients. We seek to become a globally leading technology-driven financial services platform, distinguished by the highest standards of ethics and trust for all our stakeholders.\u201d<\/p>\n

\u201cWe will celebrate the 25th<\/sup> anniversary of our founding in September 2023, a milestone that everyone of us at FANHUA is extremely proud of. Throughout the past quarter of a century, we have demonstrated a strong track record of adapting our business model and strategy to the constant changes in the industry and market environment in which we operate in. For our shareholders, since our IPO in 2007, we have achieved an accumulated operating cash flow of RMB4.0 billion and returned over RMB2.8 billion of capital through dividends and buybacks. With the continued execution of our strategy, I am confident in our ability to continuously deliver value for our shareholders.\u201d<\/p>\n

\n Commenting on the results, Mr. Ben Lin, Co-Chairman and Chief Strategy Officer, stated: <\/strong>\u201cThe second quarter and first half of 2023 results highlight that our organic and inorganic growth strategies are working well, helping us to grow significantly ahead of the Chinese insurance market.\u201d<\/p>\n

\u201cAs we enter the second half of 2023, our core strategy remains on fostering quality organic growth. We will continue to work closely with our insurance partners to launch new products and continue to execute on improving the quality and productivity of our advisory team.\u201d<\/p>\n

\u201cWith over 2,000 independent agencies and brokers in the market, we continue to see immense opportunity for inorganic growth. Our financial position is amongst the strongest within our industry with over RMB1.6 billion cash reserve4<\/sup>, positioning us favorably to take advantage of consolidation opportunities. These prospects could become more visible as the industry experiences a short-term slowdown due to the pricing rate change in the second half of 2023. Moreover, we are also exploring opportunities to expand our strategy to markets beyond mainland China. We see significant growth opportunities for independent financial services distribution in markets such as Hong Kong and Southeast Asia, which we are currently evaluating.\u201d<\/p>\n

\n Open Platform and M&A Contributions over the Second Quarter of 2023<\/strong>\n <\/p>\n