NEW YORK, July 27, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on CNinsure Inc. (NASDAQ: CISG). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=CISG
Highlights from our CISG Report include:
- Strong Top-line Growth - On May 19, 2015, CNinsure Inc. announced its financial results for the first quarter ended March 31, 2015. The China-based online-to-offline financial services provider recorded a 24.3% YoY growth in total net revenues at RMB579.5 million (US$93.5 million), primarily driven by strong growth in insurance agency and insurance brokerage businesses. For the next quarter ending June 2015, CNinsure Inc. remains hopeful for c. 30% YoY increase in its total net revenues.
- A Closer Look at the Segmental Revenue - Revenue from the insurance agency business grew by 23.3% YoY to RMB433.5 million (US$69.9 million) during the quarter, supported by a 22.3% YoY increase in net revenues from the property and casualty (P&C) insurance agency business and a 29.9% YoY increase in net revenues from the life insurance agency business. Additionally, the insurance brokerage business registered a robust growth of 68.5% YoY to RMB86.1 million (US$13.9 million) for Q1 2015, driven by CNinsure's efforts to expand sales channels, develop innovative product offerings and cultivate markets in the past years. Meanwhile, net revenues for the claims adjusting business decreased 5.7% YoY in Q1 2015 to RMB59.9 million (US$9.7 million), reflecting a decline in non-automobile adjusting business and a slight decrease in automobile-related claims adjusting business.
- Operating Performance at a Glance - During the quarter under review, operating income declined 93.6% YoY to RMB0.9 million (US$0.1 million) due to a notable increase in total operating costs and expenses. Total operating costs and expenses grew 27.7% YoY to RMB578.6 million (US$93.3million), of which total operating costs accounted for RMB449.1 million (US$72.4 million). However, on a non-GAAP basis, operating income grew 24.3% YoY to RMB25.0 million (US$4.0 million), while non-GAAP operating margin remained unchanged at 4.3% in Q1 2015.
- Bottom-line Remained Positive- Net income attributable to the Company's shareholders declined 26.2% YoY to RMB33.0 million (US$5.3 million). Consequently, diluted net income per ADS came in at RMB0.55 (US$0.09), down 38.4% YoY. Factors like decrease in investment and interest income impacted the bottom-line. While investment income declined 59.5% to RMB2.9 million (US$0.5 million) in Q1 2015, interest income fell 16.5% YoY to RMB18.6 million (US$3.0 million). The decrease in interest income was primarily due to a decrease in term deposits as a result of an increase in short-term investment and interest rate.
To find out how this influences our rating on CNinsure Inc., read the full report in its entirety here: http://www.aciassociation.com/?c=CISG
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