A consortium of investors led by Yinan Hu, Chairman, Chief Executive Officer, Founder and a Director of Fanhua Inc. made a non binding proposal to acquire unknown remaining stake in Fanhua Inc. (NasdaqGS:FANH) on December 16, 2021. The consortium will comprise of existing shareholders of Fanhua Inc. and equity investors as consortium members and will acquire all the shares of Fanhua Inc. not already owned by it for $9.8 per American Depositary Shares (“ADS”), or $0.49 per ordinary share. Yinan Hu owns approximately 18.6% stake in Fanhua Inc. The transaction will be financed by a combination of debt expected to be provided by loans from third party financial institutions and/or equity capital from the potential consortium members in the form of cash and rollover equity. Post completion, Fanhua Inc. will be delisted from stock exchange in a going private transaction. The Board intends to form a special committee consisting of independent directors to consider the proposed transaction.