China United Insurance Service Reports 2014 Fourth Quarter And Full Year Financial Results

ZHENGZHOU, China and TAIPEI, Taiwan, March 19, 2015 /PRNewswire/ -- China United Insurance Service, Inc. (CUIS) (OTCBB: CUII), a leading insurance intermediary company with operations in the People's Republic of China, Hong Kong and Taiwan, reported financial results for the three-months and twelve-months ended December 31, 2014.

"Our strategy of investing in growth and building our brand name in the markets we serve continued in 2014," said Yi Hsiao Mao, Chairman and Chief Executive Officer. "During the year, we completed a 51% investment in Prime Financial Asia Ltd., a Hong-Kong-based reinsurance broker company. We also continued our advertising campaign in Taiwan, as we will this year, to attract new long-term customers and potential sales agents. Subsequent to the close of 2014, we acquired Genius Investment Consultant Co., which owns approximately 15% of Genius Insurance Broker Co., a leading insurance brokerage company operating throughout Taiwan. We believe the investments we are making will facilitate achieving our collective goal of building the company and enhancing long-term shareholder value," Mr. Mao added.

2014 Fourth Quarter Results

Revenues for the quarter ended December 31, 2014 increased 3.4% to $16.46 million, from $15.92 million in the same period last year. The increase, in part, reflected higher sales of insurance products in Taiwan through the Company's strategic alliance with AIA International Limited Taiwan Branch, as well as increased sales of China Trust Life Insurance products.

Revenues by geography were as follows:

Cost of revenue for the fourth quarter of 2014 was $10.72 million versus $10.04 million in same period a year ago.

Gross profit for the three months ended December 31, 2014 was $5.74 million, compared with $5.88 million in the comparable quarter in 2013.

Selling expenses for the 2014 fourth quarter were $1.59 million, compared with $0.97 million in the same quarter a year ago. General and administrative expenses for the fourth quarter of 2014 were $3.54 million, compared with $3.62 million for the same period a year ago.

Net income for the quarter ended December 31, 2014 was $0.31 million versus $0.28 million for the same quarter last year. The net loss attributable to CUIS' shareholders for the quarter was $33,000, or $0.001 per share, compared with a net loss of $135,000, or $0.005 per share, in the same period of 2013.

2014 Fiscal Year Financial Results

For the year ended December 31, 2014, revenues rose to $47.45 million from $45.16 million a year ago.

Revenues by geography were as follows:

Cost of revenue for the twelve months of 2014 was $30.41 million, compared with $27.58 million for the same period a year ago.

Gross profit for the year ended December 31, 2014 rose to $17.04 million from $17.58 million for 2013.

Selling expenses for the twelve months of 2014 were $4.03 million, compared with $2.74 million in the same period last year. The increase was primarily related to an advertising campaign for the Company's Taiwan operation.

General and administrative expenses for 2014 were $11.97 million from $10.39 million in the prior year, primarily reflecting Taiwan's business tax rate, which rose to 5% from 2% starting in 2014. Additionally, results were impacted by relocation expense of moving the Company's China headquarters to Nanjing, and the opening of a service outlet in Yunnan.

Income before income taxes for the year ended December 31, 2014 was $1.63 million, compared with $4.10 million in 2013. Income tax expense for 2014 was $1.67 million, versus $0.93 million in 2013, with the increase attributable to an income tax law in Taiwan which provides that a company is taxed at an additional 10% on any undistributed earnings to its shareholders. In June and December 2014, CUIS elected not to distribute its earnings accumulated as of December 31, 2013 and 2014, in lieu of investing in future.

Net loss for the year ended December 31, 2014 was $0.04 million, compared with net income of $3.17 million last year. Net loss attributable to CUIS' shareholders for the 2014 fiscal year was $0.91 million, or $0.03 per share, versus net income of $1.54 million, or $0.05 per diluted share, in 2013.   

About China United Insurance Service, Inc.
China United Insurance Service, Inc. was founded in 2010 with a vision to build one of the largest financial insurance service platforms in Asia and to become a multinational enterprise by leveraging the experience of its Taiwan operations and capitalizing on China's fast-growing insurance market. CUIS offers a broad range of products and services for individuals, families, and businesses, including: brokerage services for various types of life, health, personal accident, property and casualty insurance; insurance application assistance; claims advocacy; claims accounting preparation services; disaster and loss prevention; and risk assessment/risk management consulting services and the corresponding reinsurance brokerage services.

CUIS currently operates and offers innovative insurance products in China, Hong Kong and Taiwan through its subsidiary companies. The company plans to continue with its expansion into other territories and aspires to become one of the Asia's leading financial insurance enterprises. For more information on CUIS, please visit: http://cuis.asia/.

Forward Looking Statement
Statements in this press release may be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements can be identified by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements, and involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections of CUIS and the insurance industry. Potential risks and uncertainties include, but are not limited to, those relating to CUIS' ability to attract and retain productive agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, and macroeconomic conditions in China and Taiwan and the potential impact on the sales of insurance products. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.

(Financial statements follow)

SOURCE China United Insurance Service, Inc.

Related Links

http://www.cuis.asia