FANHUA Files Annual Report on Form 20-F on April 29, 2024 and Announces Adoption of Semi-annual Financial Results Reporting Schedule

Rhea-AI Summary

FANHUA Inc. filed its 2023 annual report on Form 20-F with the SEC on April 29, 2024, containing audited financial statements for the fiscal year ended December 31, 2023. The company also announced the adoption of a semi-annual financial results reporting schedule, moving away from quarterly reporting, with the next announcement expected in the third quarter of 2024.

Insights

Financial Analyst

The decision for FANHUA Inc. to transition from quarterly to semi-annual financial reporting is a significant alteration in investor communication strategy. While this may streamline the company's internal focus on long-term strategies, it risks reducing the transparency of FANHUA's operations to investors. Historically, more frequent reporting can reassure investors by reducing information asymmetry. By reporting less frequently, FANHUA could potentially see an impact on its share price volatility, as investors may react to a perceived increase in information risk. However, it's also possible that less frequent reporting could discourage short-term speculation and attract investors with a more long-term horizon.

Corporate Governance Expert

The adoption of a semi-annual reporting schedule by FANHUA's Board reflects a corporate governance choice balancing transparency with strategic execution. It's essential to recognize that while U.S. listed companies generally report quarterly, the practice is not universally mandated and several European firms operate under semi-annual reporting. This move may indeed align management's attention more towards long-term initiatives and less on short-term performance metrics. For shareholders, the critical point will be ensuring that the reduced frequency of reports doesn't impede their ability to make well-informed decisions. It's also indicative of a confident management team willing to potentially withstand the ebbs and flows of investor sentiment in the pursuit of its long-term objectives.

Market Research Analyst

FANHUA's shift from quarterly to semi-annual reporting mirrors a trend that prioritizes strategic development over short-term earnings management. The effects on the stock will largely depend on investor response to this change. If investors trust the management's justification, that focusing on long-term strategies will generate more sustainable value, the stock could maintain or even gain investor support. Conversely, if the market perceives this change as a reduction in financial transparency, it might result in increased cost of capital. Market sentiment towards such reporting shifts can vary and peer benchmarking will be important to assess the impact on FANHUA's stock performance relative to its competitors who continue with more frequent reporting cycles.

GUANGZHOU, China, April 30, 2024 (GLOBE NEWSWIRE) -- FANHUA Inc. (Nasdaq: FANH) (the “Company” or “FANHUA”), a leading independent technology-driven financial services provider in China, today announced that it has filed its 2023 annual report on Form 20-F (the “2023 20-F”), which contains its audited financial statements for the fiscal year ended December 31, 2023, with the U.S. Securities and Exchange Commission (the “SEC”) on April 29, 2024. The 2023 20-F can be accessed on the SEC's website at http://www.sec.gov as well as on the Investor Relations page of the Company’s website at http://ir.fanhgroup.com/financial-information/sec-filings. Hard copies of the annual report are available, free of charge, to its shareholders upon request.

Additionally, the board of directors of the Company (the “Board”) has approved the adoption of a semi-annual financial results reporting schedule. Going forward, the Company will report its financial results semi-annually and annually instead of on a quarterly basis. The Company expects its next financial results announcement for the first half of 2024 to be made in the third quarter of 2024.

The Board believes that the change of reporting schedule will allow management to focus on implementing and assessing the effectiveness of the Company’s long-term strategies, reinforcing the Company’s commitment to delivering sustainable value to shareholders, while maintaining transparency and compliance with relevant regulatory requirements.

About FANHUA

Established in Guangzhou in 1998 and listed on NASDAQ in 2007 (Nasdaq: FANH), FANHUA is a leading independent financial services provider in China with strong technology capabilities and a commitment to empowering financial advisors and fostering sustained value creation for customers.

Our mission revolves around creating an inclusive and collaborative platform for independent financial advisors, as well as various insurance/financial sales organizations, enabling our partners to optimize their practices by offering them end-to-end business solutions spanning compliance, technology, products, services, operations, capital flow, and professional training. Leveraging advanced technology, artificial intelligence, and data-driven insights, Fanhua is at the forefront of revolutionizing financial services delivery, accelerating digital transformation, and driving industry growth.

With a comprehensive approach to financial services, we connect millions of Chinese families with various financial institutions and service providers, offering a diverse range of opportunities and personalized solutions for insurance protection, retirement planning, health management, asset management, and family governance services, covering the full lifecycle of our customers’ needs.

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 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 and their potential impact on the sales of insurance products. Except as otherwise indicated, all information provided in this press release speaks 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.

Source: FANHUA Inc.

FAQ

When did FANHUA file its 2023 annual report?

FANHUA filed its 2023 annual report on Form 20-F with the SEC on April 29, 2024.

What financial information does FANHUA's 2023 20-F contain?

FANHUA's 2023 20-F contains the audited financial statements for the fiscal year ended December 31, 2023.

Where can FANHUA's 2023 20-F be accessed?

FANHUA's 2023 20-F can be accessed on the SEC's website at http://www.sec.gov and on the Investor Relations page of the Company’s website at http://ir.fanhgroup.com/financial-information/sec-filings.

What is the new financial results reporting schedule adopted by FANHUA?

FANHUA has adopted a semi-annual financial results reporting schedule, moving away from quarterly reporting.

When can shareholders expect the next financial results announcement from FANHUA?

Shareholders can expect the next financial results announcement for the first half of 2024 to be made in the third quarter of 2024.