Fanhua Announces Completion of Distribution of CNFinance Shares

Rhea-AI Summary

Fanhua Inc. (Nasdaq: FANH) has completed the distribution of 252,995,600 ordinary shares of CNFinance Holdings Limited to its shareholders as of June 28, 2022. Each Fanhua shareholder received 4.71 CNFinance ordinary shares for every 20 outstanding Fanhua shares, reducing Fanhua’s stake in CNFinance from approximately 18.5% to about 0.01%. Fanhua continues to provide a wide range of financial services and has a vast distribution network across China, utilizing various online platforms for insurance products.

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• Fanhua’s equity stake in CNFinance decreased from approximately 18.5% to about 0.01%, indicating a significant reduction in ownership.

GUANGZHOU, China, June 29, 2022 (GLOBE NEWSWIRE) -- Fanhua Inc. (the “Company” or “Fanhua”) (Nasdaq: FANH), a leading independent financial services provider in China, today announced that its previously announced distribution of 252,995,600 ordinary shares of CNFinance Holdings Limited (“CNFinance”) has been completed on June 28, 2022.

As previously announced, Fanhua shareholders received 4.71 CNFinance ordinary shares for each 20 outstanding Fanhua ordinary shares, or 0.2355 CNFinance ADSs for each Fanhua ADS. Following the distribution, Fanhua’s equity stake in CNFinance decreased from approximately 18.5% currently to approximately 0.01%.

About Fanhua Inc.

Fanhua Inc. is a leading independent financial services provider. Through our online platforms and offline sales and service network, we offer a wide variety of financial products and services to individuals, including life and property and casualty insurance products. We also provide insurance claims adjusting services, such as damage assessments, surveys, authentications and loss estimations, as well as value-added services, such as emergency vehicle roadside assistance.

Our online platforms include: (1) Lan Zhanggui, an all-in-one platform which allows our agents to access and purchase a wide variety of insurance products, including life insurance, auto insurance, accident insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (2) Baowang (www.baoxian.com), an online entry portal for comparing and purchasing short term health, accident, travel and homeowner insurance products; and (3) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.

As of March 31, 2022, our distribution and service network is consisted of 735 sales outlets covering 23 provinces, autonomous regions and centrally-administered municipalities and 109 service outlets covering 31 provinces.

For more information about Fanhua Inc., please visit http://ir.Fanhuaholdings.com/.

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 U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management's quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Fanhua and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract and retain productive agents, especially entrepreneurial 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, quarterly variations in its operating results caused by factors beyond its control and macroeconomic conditions in China, future development of COVID-19 outbreak and their potential impact on the sales of insurance products. All information provided in this press release is as of the date hereof, and Fanhua undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Fanhua is included in Fanhua's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

FAQ

What is the recent press release about Fanhua Inc. (FANH)?

Fanhua Inc. announced the completion of distributing 252,995,600 ordinary shares of CNFinance to its shareholders, decreasing its equity stake significantly.

What was the share distribution ratio for Fanhua shareholders?

Shareholders received 4.71 CNFinance ordinary shares for every 20 outstanding Fanhua ordinary shares.

When was Fanhua's share distribution completed?

The distribution was completed on June 28, 2022.

How has Fanhua's stake in CNFinance changed?

Fanhua’s ownership in CNFinance decreased from approximately 18.5% to about 0.01% after the distribution.