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CNinsure reports 19% decline in Q4 earnings

IBR Staff Writer Published 03 March 2009

CNinsure reported a net income of RMB43.7m for Q4 08 compared to RMB53.8m for Q4 07

CNinsure has reported that its net income was RMB43.7 million for the fourth quarter ended December 31, 2008, representing a decrease of 18.7% from RMB53.8 million for the fourth quarter ended December 31, 2007.

Fully diluted net income per American depositary share (ADS) was RMB0.95 for the fourth quarter of 2008, as compared with RMB1.28 for the corresponding period of 2007.

Total net revenues for the fourth quarter of 2008 were RMB281.4 million, representing an increase of 77.3% from RMB158.7 million for the fourth quarter of 2007. Net margin was 15.6% for the fourth quarter of 2008 as compared with 33.9% for the same quarter in 2007.

For the fiscal year ended December 31, 2008, net income was RMB191.6 million, representing an increase of 24.9% from RMB153.4 million for the fiscal year ended December 31, 2007. Fully diluted net income per ADS was RMB4.18 for the fiscal year 2008, as compared with RMB4.29 for the fiscal year 2007.

Total net revenues for the year 2008 were RMB843.9 million, representing an 88.3% increase from RMB448.1 million for the year 2007. Net margin was 22.7% for the fiscal year 2008, as compared with 34.2% for the fiscal year 2007.

Yinan Hu, chairman and CEO of CNinsure, said: 2008 was a tough year. The overall domestic insurance industry was negatively impacted by several events, including the severe snowstorms and the earthquake in China early in the year, and the recent global financial crisis and the ensuing slowdown in the Chinese economy. As the global economic crisis deepens, more uncertainties are expected in the growth prospect of the Chinese economy in 2009. We believe we have the right solutions and strategies to cope with the new situations and deliver another year of success in 2009.