Financial Highlights for Year 2023
(In thousands, except per ADS data and percentages) | 2022 (RMB) | 2023 (RMB) | 2023 (US$) | Change % | ||||
Total net revenues | 2,781,614 | 3,198,389 | 450,484 | 15.0 | ||||
Operating income | 168,675 | 195,825 | 27,581 | 16.1 | ||||
Net income attributable to shareholders | 100,272 | 280,477 | 39,504 | 179.7 | ||||
Adjusted EBITDA2 | 184,786 | 243,300 | 34,268 | 31.7 | ||||
Diluted net income per ADS | 1.87 | 5.21 | 0.74 | 178.6 | ||||
Cash, cash equivalent, short-term investments at end of the period | 915,279 | 1,449,808 | 204,201 | 58.4 | ||||
Key operating metrics | ||||||||
Total life gross written premiums (“GWP”) | 12,408,998 | 16,109,985 | 2,269,044 | 29.8 | ||||
• First year premium (“FYP”) | 2,556,867 | 3,478,110 | 489,882 | 36.0 | ||||
• Renewal premium | 9,852,131 | 12,631,875 | 1,779,162 | 28.2 |
Financial Highlights for the Fourth Quarter of 2023:(In thousands, except per ADS data and percentages) | 2022Q4 (RMB) | 2023Q4 (RMB) | 2023Q4 (US$) | Change % | ||||
Total net revenues | 767,365 | 603,392 | 84,986 | (21.4 | ) | |||
Operating income | 84,893 | 16,242 | 2,288 | (80.9 | ) | |||
Net income (loss) attributable to shareholders | 70,616 | (27,189 | ) | (3,829 | ) | N/A | ||
Adjusted EBITDA2 | 77,103 | 40,150 | 5,655 | (47.9 | ) | |||
Diluted net income (loss) per ADS | 1.31 | (0.51 | ) | (0.07 | ) | N/A | ||
Key operating metrics | ||||||||
Total life gross written premiums (“GWP”) | 3,465,190 | 3,969,430 | 559,083 | 14.6 | ||||
• First year premium (“FYP”) | 918,822 | 564,170 | 79,462 | (38.6 | ) | |||
• Renewal premium | 2,546,368 | 3,405,260 | 479,621 | 33.7 |
________________________
1 | This announcement contains currency conversions of certain Renminbi (“RMB”) amounts into | |
2 | Adjusted EBITDA is defined as net income before income tax expense, share of income of affiliates, net of impairment, investment income, interest income, financial cost, depreciation, amortization of intangible assets, share-based compensation expenses and change in fair value of equity investments and contingent consideration. | |
Mr.
"In the past year, we have continuously strengthened our efforts to develop top agents and to enhance their professional capabilities with remarkable results; through digital platforms, we have provided support to our insurance advisors, offering end-customers a superior service experience; the diversified service ecosystem we have built has already brought a competitive advantage to the company and our open platform has become one of the key drivers of our growth. In addition, our internationalization strategy is also steadily advancing, with two subsidiaries in
“With the implementation of the policy on reported and actual fee consistency and commission cap across all distribution channels, the life insurance industry is expected to face significant challenges. However, it will present favorable opportunities for leading players like FANHUA that have already achieved scale and are able to offer diversified services and platform-based companies with digitization and artificial intelligence capabilities. As such, we believe FANHUA is posed to emerge as one of the greatest beneficiaries.
"The completion of the proposed strategic investment from
“Looking ahead, we firmly believe that the industry's development will move towards more concentration, with a few major players taking dominating position. Service and technology will be the primary driving forces. We will actively explore the 'insurance + service + technology' model, providing comprehensive products and diversified services to our customers while leveraging technology to enhance service efficiency. Our focus will be on serving the high-net-worth end-customers and Million-dollar Round-table Members-qualified (“MDRT”) agents. In 2024, leveraging on industry-leading technology platforms, comprehensive service capabilities, and capital strength to acquire high-quality assets, we will further expand our business scale to make market share."
“Looking ahead to 2024, due to the significant uncertainty surrounding the specific timing and intensity of the upcoming policy on commission cap across all distribution channels, we are unable to accurately predict the full-year performance targets yet. However, it is foreseeable that while the implementation of this policy may result in short-term challenges, it will also present important opportunities for the development of our open platform.
“Under this backdrop, our strategic focus will center on:
1) Maximizing the opportunities brought about by policy changes to grow the number of high-quality agents, especially MDRT members;
2) Further expanding the ‘insurance+’ service ecosystem by connecting to resources in education, elderly care, and overseas travel;
3) Actively exploring development opportunities in the Southeast Asian market in collaboration with partners to expand our global presence; and
4) Leveraging our capital advantage to accelerate the pace of mergers and acquisitions, facilitating global and intelligent development.
"We believe that these initiatives will create broader development opportunities for the company's long-term sustainable and high-quality growth."
Open Platform and M&A Contributions over the Year 2023
- The number of platform professional users who used our Open Platform reached 854 as of
December 31, 2023 , generatingRMB1.1 billion in first year premiums for 2023 which accounted for 32.4% of our life insurance FYP; - 23.7% of our life insurance FYP and 24.2% of our net revenues for the life insurance business for 2023 were generated from entities we acquired within the past 12 months.
Share Repurchase Program
On
Business Outlook and Guidance
We expect adjusted EBITDA to be no less than
Analysis of our Financial Results for the Fourth Quarter of 2023
Revenues
Total net revenues were
- Net revenues for agency business were
RMB483.5 million (US$68.1 million ) for the fourth quarter of 2023, representing a decrease of 27.1% fromRMB662.8 million for the corresponding period in 2022. Total GWP increased by 13.3% year-over-year toRMB4,048.0 million , of which FYP decreased by 37.4% year-over-year toRMB642.7 million while renewal premiums grew by 33.7% year-over-year toRMB3,405.3 million .- Net revenues for the life insurance business were
RMB446.5 million (US$62.9 million ) for the fourth quarter of 2023, representing a decrease of 28.8% fromRMB627.5 million for the corresponding period in 2022. The decrease was mainly due to (i) the business fluctuation caused by the pricing rate change to life insurance products from 3.5% to 3% effective onAugust 1, 2023 which caused a spike in new business sales inJuly 2023 and then followed by a significant drop in sales sinceAugust 2023 , partially offset by ii) contribution from entities acquired in the first quarter of 2023. Total life insurance GWP increased by 14.6% year-over-year toRMB3,969.4 million of which life insurance FYP decreased by 38.6% year-over-year toRMB564.2 million while renewal premiums grew by 33.7% year-over-year toRMB3,405.3 million .
Net revenues generated from our life insurance business accounted for 74.0% of our total net revenues in the fourth quarter of 2023, as compared to 81.8% in the same period of 2022. - Net revenues for the non-life insurance business (formerly categorized as “property and casualty insurance business”) were
RMB37.0 million (US$5.2 million ) for the fourth quarter of 2023, representing an increase of 4.8% fromRMB35.3 million for the corresponding period in 2022. Net revenues generated from the non-life insurance business accounted for 6.1% of our total net revenues in the fourth quarter of 2023, as compared to 4.6% in the same period of 2022.
- Net revenues for the life insurance business were
- Net revenues for the claims adjusting business were
RMB119.8 million (US$16.9 million ) for the fourth quarter of 2023, representing an increase of 14.5% fromRMB104.6 million for the corresponding period in 2022. The increase was mainly due to business recovery after the pandemic. Net revenues generated from the claims adjusting business accounted for 19.9% of our total net revenues in the fourth quarter of 2023, as compared to 13.6% in the same period of 2022.
Gross profit
Total gross profit was
- Life insurance business recorded a gross profit of
RMB162.3 million (US$22.9 million ), representing a decrease of 26.7% fromRMB221.3 million for the fourth quarter of 2022. Gross margin for the period was 36.3%, as compared with 35.3% in the same period of 2022. - Non-life insurance business recorded a gross profit of
RMB11.0 million (US$1.5 million ), representing a decrease of 14.1% fromRMB12.8 million for the fourth quarter of 2022. Gross margin for the period was 29.7%, as compared with 36.3% in the same period of 2022. The decrease in gross margin was mainly due to changes in product mix. - Claims adjusting business recorded a gross profit of
RMB46.6 million (US$6.6 million ), representing an increase of 19.8% fromRMB38.9 million for the fourth quarter of 2022. Gross margin for the period was 38.9%, as compared with 37.2% in the same period of 2022.
Operating expenses
Selling expenses were
General and administrative expenses were
As a result of the foregoing factors, we recorded operating income of
Operating margin was 2.7% for the fourth quarter of 2023, compared to 11.1% for the corresponding period in 2022.
Loss from fair value change was
Investment income was
Income tax expense was
Net loss was
Net loss attributable to the Company’s shareholders was
Net margin was -4.5% for the fourth quarter of 2023, as compared to 9.2% for the corresponding period in 2022.
Adjusted EBITDA2 was
Adjusted EBITDA margin3 was 6.7% for the fourth quarter of 2023, as compared to 10.0% for the corresponding period in 2022.
Basic and diluted net loss per ADS were
Basic4 and diluted5 adjusted EBITDA per ADS were
As of
________________________
3 | Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of net revenues. | |
4 | Basic adjusted EBITDA per ADS is defined as adjusted EBITDA divided by total weighted average number of ADSs of the Company outstanding during the period. | |
5 | Diluted adjusted EBITDA per ADS is defined as adjusted EBITDA divided by total weighted average number of diluted ADSs of the Company outstanding during the period. | |
Analysis of our Financial Results for the Year 2023
Revenues
Total net revenues were
- Net revenues for agency business were
RMB2,760.4 million (US$388.8 million ) for 2023, representing an increase of 16.1% fromRMB2,376.9 million for 2022. Total GWP increased by 28.7% year-over-year toRMB16,444.6 million , of which FYP grew by 30.3% year-over-year toRMB3,812.7 million while renewal premiums increased by 28.2% year-over-year toRMB12,631.9 million .- Net revenues for the life insurance business were
RMB2,593.8 million (US$365.3 million ) for 2023, representing an increase of 15.9% fromRMB2,237.3 million for 2022. The increase was mainly due to (i) productivity improvement in performing agents and increase in contributions from top-performing agents; (ii) contribution from newly acquired entities, partially offset by the decrease in renewal commission income as a result of the decreased average portfolio based renewal commission rate, and to a lesser extent, due to changes in product mix. Total life insurance GWP increased by 29.8% year-over-year toRMB16,110.0 million , of which FYP grew by 36.0% year-over-year toRMB3,478.1 million while renewal premiums increased by 28.2% year-over-year toRMB12,631.9 million .
Net revenues generated from our life insurance business accounted for 81.1% of our total net revenues in 2023, as compared to 80.4% in 2022. - Net revenues for the non-life insurance business (formerly categorized as “property and casualty insurance business”) were
RMB166.6 million (US$23.5 million ) for 2023, representing an increase of 19.4% fromRMB139.5 million for 2022. Net revenues generated from the non-life insurance business accounted for 5.2% of our total net revenues in 2023, as compared to 5.0% in 2022.
- Net revenues for the life insurance business were
- Net revenues for the claims adjusting business were
RMB437.9 million (US$61.7 million ) for 2023, representing an increase of 8.2% fromRMB404.8 million for 2022. The increase was mainly due to business recovery after the pandemic. Net revenues generated from the claims adjusting business accounted for 13.7% of our total net revenues in 2023, as compared to 14.6% in 2022.
Gross profit
Total gross profit was
- Life insurance business recorded a gross profit of
RMB844.3 million (US$118.9 million ), representing an increase of 5.4% fromRMB800.7 million for 2022. Gross margin for the period was 32.6%, as compared with 35.8% in the same period of 2022. - Non-life insurance business recorded a gross profit of
RMB47.4 million (US$6.7 million ), representing a decrease of 2.3% fromRMB48.5 million for 2022. Gross margin for the current period was 28.5%, as compared with 34.8% for the same period of 2022. The decrease in gross margin was mainly due to changes in product mix. - Claims adjusting business recorded a gross profit of
RMB161.2 million (US$22.7 million ), representing an increase of 17.8% fromRMB136.8 million for 2022. Gross margin for the period was 36.8%, as compared with 33.8% in the same period of 2022.
Operating expenses
Selling expenses were
General and administrative expenses were
As a result of the foregoing factors, we recorded operating income of
Operating margin was 6.1% for 2023, compared to 6.1% in 2022.
Gains from fair value change was
Investment income was
Income tax expense was
Net income was
Net income attributable to the Company’s shareholders was
Net margin was 8.8% for 2023, as compared to 3.6% in 2022.
Adjusted EBITDA2 was
Adjusted EBITDA margin3 was 7.6% for 2023, as compared to 6.6% in 2022.
Basic and diluted net income per ADS were
Basic4 and diluted5 adjusted EBITDA per ADS were
FANHUA’s Insurance Sales and Service Distribution Network:
- As of
December 31, 2023 , excluding newly acquired entities, FANHUA’s distribution network consisted of 561 sales outlets in 23 provinces and 80 services outlets in 31 provinces as ofDecember 31, 2023 , compared with 675 sales outlets in 24 provinces and 99 services outlets in 31 provinces as ofDecember 31, 2022 . The decrease in the number of sales outlets reflected our focus on growing profitable branches, coupled with the challenging decisions to close those which were not yielding profits. The number of the Company's in-house claims adjustors was 2,303 as ofDecember 31, 2023 , compared with 2,170 as ofDecember 31, 2022 .
Conference Call
The Company will host a conference call to discuss its fourth quarter and fiscal year 2023 financial results as per the following details.
Time:
or
Please pre-register online in advance to join the conference call by navigating to the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call details will be provided upon registration.
Conference Call Preregistration:
https://register.vevent.com/register/BI91a942d345f74c0a8c371f7dee5f6bfb
Additionally, a live and archived webcast of the conference call will be available at FANHUA’s investor relations website:
https://edge.media-server.com/mmc/p/pbcb4gmh
About
Driven by its digital technologies and professional expertise in the insurance industry,
With strategic focus on long-term life insurance products, we offer a broad range of insurance products, claims adjusting services and various value-added services to meet customers’ diverse needs, through an extensive network of digitally empowered sales agents and professional claims adjustors. We also operate Baowang (www.baoxian.com), an online insurance platform that provides customers with a one-stop insurance shopping experience.
For more information about
Forward-looking Statements
This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the
About Non-GAAP Financial Measures
In addition to the Company’s consolidated financial results under generally accepted accounting principles in
For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin” set forth at the end of this press release.
Unaudited Condensed Consolidated Balance Sheets (In thousands) | |||||
As of | As of | As of | |||
2022 | 2023 | 2023 | |||
RMB | RMB | US$ | |||
ASSETS: | |||||
Current assets: | |||||
Cash and cash equivalents | 567,525 | 521,538 | 73,457 | ||
Restricted cash | 59,957 | 53,238 | 7,498 | ||
Short term investments | 347,754 | 928,270 | 130,744 | ||
Accounts receivable, net | 667,554 | 639,418 | 90,060 | ||
Insurance premium receivables | — | 16 | 2 | ||
Other receivables | 231,049 | 111,754 | 15,740 | ||
Other current assets | 419,735 | 121,331 | 17,090 | ||
Total current assets | 2,293,574 | 2,375,565 | 334,591 | ||
Non-current assets: | |||||
Restricted bank deposit – non-current | 20,729 | 27,228 | 3,835 | ||
Contract assets, net - non-current | 385,834 | 711,424 | 100,202 | ||
Property, plant, and equipment, net | 98,459 | 91,659 | 12,910 | ||
109,997 | 432,465 | 60,912 | |||
Deferred tax assets | 20,402 | 40,735 | 5,737 | ||
Investment in affiliates | 4,035 | — | — | ||
Other non-current assets | 11,400 | 235,752 | 33,205 | ||
Right of use assets | 145,086 | 136,056 | 19,163 | ||
Total non-current assets | 795,942 | 1,675,319 | 235,964 | ||
Total assets | 3,089,516 | 4,050,884 | 570,555 |
Current liabilities: | ||||||||
Short-term loan | 35,679 | 164,300 | 23,141 | |||||
Accounts payable | 436,784 | 406,807 | 57,298 | |||||
Insurance premium payables | 16,580 | 14,943 | 2,105 | |||||
Other payables and accrued expenses | 174,326 | 185,999 | 26,197 | |||||
Accrued payroll | 96,279 | 94,305 | 13,283 | |||||
Income tax payable | 130,024 | 100,260 | 14,121 | |||||
Current operating lease liability | 62,304 | 57,164 | 8,051 | |||||
Total current liabilities | 951,976 | 1,023,778 | 144,196 | |||||
Non-current liabilities: | ||||||||
Accounts payable – non-current | 192,917 | 401,385 | 56,534 | |||||
Other tax liabilities | 36,647 | 34,368 | 4,841 | |||||
Deferred tax liabilities | 102,455 | 149,151 | 21,007 | |||||
Non-current operating lease liability | 74,190 | 71,311 | 10,044 | |||||
Other non-current liabilities | — | 33,373 | 4,701 | |||||
Total non-current liabilities | 406,209 | 689,588 | 97,127 | |||||
Total liabilities | 1,358,185 | 1,713,366 | 241,323 | |||||
Ordinary shares | 8,091 | 8,675 | 1,222 | |||||
(10 | ) | (178 | ) | (25 | ) | |||
Additional Paid-in capital | 461 | 162,721 | 22,919 | |||||
Statutory reserves | 559,520 | 608,376 | 85,688 | |||||
Retained earnings | 1,087,984 | 1,319,605 | 185,862 | |||||
Accumulated other comprehensive loss | (32,643 | ) | (27,936 | ) | (3,935 | ) | ||
Total shareholders’ equity | 1,623,403 | 2,071,263 | 291,731 | |||||
Non-controlling interests | 107,928 | 266,255 | 37,501 | |||||
Total equity | 1,731,331 | 2,337,518 | 329,232 | |||||
Total liabilities and equity | 3,089,516 | 4,050,884 | 570,555 |
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income (In thousands, except for shares and per share data) | |||||||||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
Net revenues: | |||||||||||||
Agency | 662,755 | 483,552 | 68,107 | 2,376,851 | 2,760,448 | 388,801 | |||||||
Life insurance business | 627,479 | 446,510 | 62,890 | 2,237,312 | 2,593,803 | 365,330 | |||||||
Non-life insurance business | 35,276 | 37,042 | 5,217 | 139,539 | 166,645 | 23,471 | |||||||
Claims adjusting | 104,610 | 119,840 | 16,879 | 404,763 | 437,941 | 61,683 | |||||||
Total net revenues | 767,365 | 603,392 | 84,986 | 2,781,614 | 3,198,389 | 450,484 | |||||||
Operating costs and expenses: | |||||||||||||
Agency | (428,707 | ) | (310,200 | ) | (43,691 | ) | (1,527,572 | ) | (1,868,672 | ) | (263,197 | ) | |
Life insurance business | (406,188 | ) | (284,161 | ) | (40,023 | ) | (1,436,606 | ) | (1,749,475 | ) | (246,408 | ) | |
Non-life insurance business | (22,519 | ) | (26,039 | ) | (3,668 | ) | (90,966 | ) | (119,197 | ) | (16,789 | ) | |
Claims adjusting | (65,702 | ) | (73,210 | ) | (10,311 | ) | (268,031 | ) | (276,744 | ) | (38,979 | ) | |
Total operating costs | (494,409 | ) | (383,410 | ) | (54,002 | ) | (1,795,603 | ) | (2,145,416 | ) | (302,176 | ) | |
Selling expenses | (61,754 | ) | (60,245 | ) | (8,485 | ) | (272,706 | ) | (250,223 | ) | (35,243 | ) | |
General and administrative expenses | (126,309 | ) | (143,495 | ) | (20,211 | ) | (544,630 | ) | (606,925 | ) | (85,484 | ) | |
Total operating costs and expenses | (682,472 | ) | (587,150 | ) | (82,698 | ) | (2,612,939 | ) | (3,002,564 | ) | (422,903 | ) | |
Income from operations | 84,893 | 16,242 | 2,288 | 168,675 | 195,825 | 27,581 | |||||||
Other income (loss), net: | |||||||||||||
Gains (loss) from fair value change | — | (61,459 | ) | (8,656 | ) | — | 102,867 | 14,489 | |||||
Investment income | 8,765 | 22,224 | 3,130 | 17,809 | 49,106 | 6,916 | |||||||
Interest income | 3,899 | 2,576 | 363 | 13,674 | 15,047 | 2,119 | |||||||
Financial cost | — | (2,009 | ) | (283 | ) | — | (9,357 | ) | (1,318 | ) | |||
Others, net | (12,743 | ) | 12,896 | 1,816 | (3,823 | ) | (3,670 | ) | (517 | ) | |||
Income (loss) from operations before income taxes and share income of affiliates | 84,814 | (9,530 | ) | (1,342 | ) | 196,335 | 349,818 | 49,270 | |||||
Income tax expense | (18,465 | ) | (5,000 | ) | (704 | ) | (41,016 | ) | (59,402 | ) | (8,367 | ) | |
Share of income (loss) of affiliates, net of impairment | (841 | ) | (554 | ) | (78 | ) | (69,596 | ) | (1,317 | ) | (185 | ) | |
Net income(loss) | 65,508 | (15,084 | ) | (2,124 | ) | 85,723 | 289,099 | 40,718 | |||||
Less: net (loss) income attributable to non-controlling interests | (5,108 | ) | 12,105 | 1,705 | (14,549 | ) | 8,622 | 1,214 | |||||
Net income (loss) attributable to the Company’s shareholders | 70,616 | (27,189 | ) | (3,829 | ) | 100,272 | 280,477 | 39,504 |
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income-(Continued) (In thousands, except for shares and per share data) | ||||||||||||
For The Three Months Ended | For The Twelve Months Ended | |||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Net income (loss) per share: | ||||||||||||
Basic | 0.07 | (0.03 | ) | — | 0.09 | 0.26 | 0.04 | |||||
Diluted | 0.07 | (0.03 | ) | — | 0.09 | 0.26 | 0.04 | |||||
Net income (loss) per ADS: | ||||||||||||
Basic | 1.31 | (0.51 | ) | (0.07 | ) | 1.87 | 5.22 | 0.74 | ||||
Diluted | 1.31 | (0.51 | ) | (0.07 | ) | 1.87 | 5.21 | 0.74 | ||||
Shares used in calculating net income per share: | ||||||||||||
Basic | 1,074,204,304 | 1,070,501,493 | 1,070,501,493 | 1,074,196,310 | 1,074,372,067 | 1,074,372,067 | ||||||
Diluted | 1,075,017,689 | 1,070,501,493 | 1,070,501,493 | 1,074,457,821 | 1,076,740,198 | 1,076,740,198 | ||||||
Net income (loss) | 65,508 | (15,084 | ) | (2,124 | ) | 85,723 | 289,099 | 40,718 | ||||
Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments | (1,018 | ) | (6,354 | ) | (895 | ) | 3,728 | 2,249 | 317 | |||
Share of other comprehensive income of affiliates | — | — | — | 4,688 | — | — | ||||||
Unrealized net (losses) gains on available-for-sale investments | (3,157 | ) | (5,625 | ) | (792 | ) | (1,919 | ) | 2,458 | 346 | ||
Comprehensive income (loss) | 61,333 | (27,063 | ) | (3,811 | ) | 92,220 | 293,806 | 41,381 | ||||
Less: | ||||||||||||
Comprehensive (loss) income attributable to the non-controlling interests | (5,108 | ) | 12,105 | 1,706 | (14,549 | ) | 8,622 | 1,214 | ||||
Comprehensive income (loss) attributable to the Company’s shareholders | 66,441 | (39,168 | ) | (5,517 | ) | 106,769 | 285,184 | 40,167 |
Unaudited Condensed Consolidated Statements of Cash Flow (In thousands, except for shares and per share data) | |||||||||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
OPERATING ACTIVITIES | |||||||||||||
Net income (loss) | 65,508 | (15,084 | ) | (2,124 | ) | 85,723 | 289,099 | 40,718 | |||||
Adjustments to reconcile net income to net cash generated from operating activities: | |||||||||||||
Investment income | (8,032 | ) | (8,479 | ) | (1,194 | ) | (10,963 | ) | (17,047 | ) | (2,401 | ) | |
Share of loss (income) of affiliates, net of impairment | 841 | 554 | 78 | 69,596 | 1,317 | 185 | |||||||
Other non-cash adjustments | 53,295 | 90,583 | 12,733 | 168,371 | 67,194 | 9,464 | |||||||
Changes in operating assets and liabilities | 43,305 | (9,064 | ) | (1,253 | ) | (174,975 | ) | (235,578 | ) | (33,179 | ) | ||
Net cash generated from operating activities | 154,917 | 58,510 | 8,240 | 137,752 | 104,985 | 14,787 | |||||||
Cash flows from investing activities: | |||||||||||||
Purchase of short-term investments | (556,540 | ) | (1,481,600 | ) | (208,679 | ) | (2,550,300 | ) | (4,399,910 | ) | (619,714 | ) | |
Proceeds from disposal of short-term investments | 751,694 | 1,493,611 | 210,371 | 3,239,556 | 4,226,001 | 595,220 | |||||||
Prepayment for acquisition of short-term investments | (200,000 | ) | —- | — | (540,000 | ) | — | — | |||||
Cash rendered for loan receivables from third parties | — | (50,000 | ) | (7,042 | ) | (205,800 | ) | (160,000 | ) | (22,536 | ) | ||
Cash received for loan receivables from third parties | 4,500 | 9,000 | 1,268 | 24,500 | 229,000 | 32,254 | |||||||
Purchase of a long-term investment | — | (10,463 | ) | (1,474 | ) | — | (135,463 | ) | (19,080 | ) | |||
Others | (1,271 | ) | (7,540 | ) | (1,062 | ) | (95,518 | ) | (5,449 | ) | (767 | ) | |
Net cash used in investing activities | (1,617 | ) | (46,992 | ) | (6,618 | ) | (127,562 | ) | (245,821 | ) | (34,623 | ) | |
Cash flows from financing activities: | |||||||||||||
Dividends paid | — | — | — | (52,069 | ) | — | — | ||||||
Proceeds from bank and other borrowings | 35,679 | 32 | 5 | 35,679 | 182,300 | 25,676 | |||||||
Repayment of bank and other borrowings | — | (35,712 | ) | (5,030 | ) | — | (56,627 | ) | (7,976 | ) | |||
Interests paid | — | (2,930 | ) | (413 | ) | — | (9,358 | ) | (1,318 | ) | |||
Acquisition of additional equity interests in non-wholly owned subsidiaries | — | — | — | — | (110 | ) | (15 | ) | |||||
Repurchase of ordinary shares from open market | (3,984 | ) | (5,012 | ) | (706 | ) | (3,984 | ) | (29,044 | ) | (4,091 | ) | |
Capital contribution from non-controlling interests | — | 7,330 | 1,032 | — | 7,330 | 1.032 | |||||||
Others | — | — | — | 3 | — | — | |||||||
Net cash generated from (used in) financing activities | 31,695 | (36,292 | ) | (5,112 | ) | (20,371 | ) | 94,491 | 13,308 | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 184,995 | (24,774 | ) | (3,490 | ) | (10,181 | ) | (46,345 | ) | (6,528 | ) | ||
Cash, cash equivalents and restricted cash at beginning of period | 462,837 | 633,006 | 89,157 | 656,522 | 648,211 | 91,299 | |||||||
Effect of exchange rate changes on cash and cash equivalents | 379 | (6,228 | ) | (877 | ) | 1,870 | 138 | 19 | |||||
Cash, cash equivalents and restricted cash at end of period | 648,211 | 602,004 | 84,790 | 648,211 | 602,004 | 84,790 |
Reconciliations of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin (In thousands, except for shares and per share data) | |||||||||||||
For The Three Months Ended | For The Twelve Months Ended | ||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||
RMB | RMB | USD | RMB | RMB | USD | ||||||||
Net income | 65,508 | (15,084 | ) | (2,124 | ) | 85,723 | 289,099 | 40,718 | |||||
Income tax expense | 18,465 | 5,000 | 704 | 41,016 | 59,402 | 8,367 | |||||||
Share of income(loss) of affiliates, net of impairment | 841 | 554 | 78 | 69,596 | 1,317 | 185 | |||||||
Investment income | (8,765 | ) | (22,224 | ) | (3,130 | ) | (17,809 | ) | (49,106 | ) | (6,916 | ) | |
Interest income | (3,899 | ) | (2,576 | ) | (363 | ) | (13,674 | ) | (15,047 | ) | (2,119 | ) | |
Financial cost | — | 2,009 | 283 | — | 9,357 | 1,318 | |||||||
Depreciation | 4,654 | 3,909 | 551 | 19,473 | 16,192 | 2,281 | |||||||
Amortization of intangible assets | — | 4,198 | 591 | — | 17,858 | 2,515 | |||||||
Share-based compensation expenses | 299 | 2,905 | 409 | 461 | 17,095 | 2,408 | |||||||
Change in fair value of equity investments and contingent consideration | — | 61,459 | 8,656 | — | (102,867 | ) | (14,489 | ) | |||||
Adjusted EBITDA | 77,103 | 40,150 | 5,655 | 184,786 | 243,300 | 34,268 | |||||||
Total net revenues | 767,365 | 603,392 | 84,986 | 2,781,614 | 3,198,389 | 450,484 | |||||||
Adjusted EBITDA Margin | 10.0% | 6.7% | 6.7% | 6.6% | 7.6% | 7.6% | |||||||
Adjusted EBITDA per ADS : | |||||||||||||
Basic | 1.44 | 0.75 | 0.11 | 3.44 | 4.53 | 0.64 | |||||||
Diluted | 1.43 | 0.75 | 0.11 | 3.44 | 4.52 | 0.64 | |||||||
Shares used in calculating adjusted EBITDA per share: | |||||||||||||
Basic | 1,074,204,304 | 1,070,501,493 | 1,070,501,493 | 1,074,196,310 | 1,074,372,067 | 1,074,372,067 | |||||||
Diluted | 1,075,017,689 | 1,070,501,493 | 1,070,501,493 | 1,074,457,821 | 1,076,740,198 | 1,076,740,198 | |||||||
Source:
For more information, please contact: Investor Relations Tel: +86 (20) 8388-3191 Email: qiusr@fanhgroup.comSource:
2024 GlobeNewswire, Inc., source