Fanhua Announces Quarterly Cash Dividend of US$0.25 per ADS for the Fourth Quarter of 2020

Rhea-AI Summary

The Board of Directors of Fanhua has declared a quarterly dividend of US$0.0125 per ordinary share, equating to US$0.25 per ADS for Q4 2020. This dividend is set to be payable on or around April 15, 2020, to shareholders recorded as of March 31, 2020. Fanhua is a leading independent financial services provider in China, offering various financial products through both online platforms and an extensive offline network.

Positive

• Quarterly dividend of US$0.0125 per ordinary share announced, indicating company confidence in financial stability.
• Extensive distribution network with 763 sales outlets across 22 provinces, strengthening market presence.

Negative

• Potential risks due to reliance on agent retention and competition in a changing regulatory environment.

GUANGZHOU, China, March 16, 2021 (GLOBE NEWSWIRE) -- The board of directors of Fanhua Inc. (“Fanhua” or “the Company”) (Nasdaq: FANH), a leading independent financial services provider in China, today announced that its Board of Directors (the “Board”) has declared a quarterly dividend of US$0.0125 per ordinary share, or US$0.25 per ADS for the fourth quarter of 2020. The dividend is payable on or around April 15, 2020 to shareholders of record on March 31, 2020.

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 health, accident, travel and homeowner insurance products and (3) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.

As of December 31, 2020, our distribution and service network are consisted of 763 sales outlets covering 22 provinces and 118 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 dividend amount declared by Fanhua for Q4 2020?

Fanhua declared a quarterly dividend of US$0.0125 per ordinary share, or US$0.25 per ADS.

When is the dividend payment date for Fanhua's Q4 2020 dividend?

The dividend is payable on or around April 15, 2020.

What is Fanhua's business model?

Fanhua operates as an independent financial services provider, offering life and property insurance products through online platforms and an extensive offline network.

What are the risks associated with Fanhua's business operations?

Risks include the ability to attract and retain productive agents and the need to adapt to a changing regulatory environment in the Chinese insurance industry.