GUANGZHOU, China, May 26, 2022 (GLOBE NEWSWIRE) — Fanhua Inc. (the “Company” or “Fanhua”) (FANH), a leading independent financial services provider in China, today announced that its Board of Directors has authorized and approved the distribution by the Company of shares of CNFinance Holdings Limited (“CNFinance”) to the shareholders of the Company on a pro rata basis. CNFinance is one of the leading providers of home equity lending services in China and its ADSs are currently trading on the New York Stock Exchange (: CNF).
Based on the number of Fanhua ordinary shares outstanding as of May 26, 2022, the Company estimates that its shareholders will receive approximately 4.71 CNFinance ordinary shares for every 20 Fanhua ordinary shares, or 0.2355 CNFinance ADSs for each ADS. of Fanhua, held on the Record Date (as defined below). The CNFinance Ordinary Shares and the CNFinance ADSs are collectively referred to as the CNFinance Shares. The actual payout ratio will be determined based on the number of Fanhua ordinary shares outstanding on the record date and the number of CNFinance ordinary shares held by the Company immediately prior to the effective time of the distribution. The distribution of CNFinance Shares will be payable on or about June 28, 2022 (the “Distribution Date”) to shareholders of record at the close of business on June 9, 2022 (the “Record Date”). Following the distribution of CNFinance shares, Fanhua’s stake in CNFinance will drop from approximately 18.5% currently to approximately 0.01%.
The Company will not distribute any fractional CNFinance shares. The number of fractional CNFinance Shares that would be distributable to each Fanhua shareholder in the form of ordinary shares will be rounded to the nearest whole number.
As the depositary of the Company’s ADSs is treated as a single holder on its books, their entire holdings will be rounded to the nearest full share, rather than rounding to the level of an ADS holder. . No fraction of CNFinance ADS will be distributed. Any fractional CNFinance ADSs will be aggregated and sold on behalf of Fanhua ADS holders who would otherwise be entitled to receive a fractional CNFinance ADS. Following the distribution and such sale, it is expected that each eligible holder of Fanhua ADSs will receive a cash payment in an amount equal to their pro rata share of the total net proceeds from the sale of fractional ADSs, if any. , less applicable fees. provided under the Fanhua ADS.
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 retail financial products and services, including life and property and casualty insurance products. We also provide claims adjustment services, such as damage appraisals, investigations, authentications and loss estimates, as well as value-added services, such as emergency vehicle roadside assistance.
Our online platforms include: (1) Lan Zhanggui, an all-in-one platform that allows our agents to access and purchase a wide variety of insurance products, including life insurance, car insurance, accident insurance, travel insurance and standard health insurance products from several 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 home insurance products; and (3) eHuzhu (www.ehuzhu.com), a non-profit online self-help platform in China.
As of March 31, 2022, our distribution and service network is composed of 734 sales outlets covering 23 provinces, autonomous regions and municipalities under central administration and 109 service outlets covering 31 provinces.
For more information about Fanhua Inc., please visit http://ir.fanhuaholdings.com/.
This press release contains forward-looking statements. These statements, including statements relating to the future financial and operating results of the Company, are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. You may identify these statements forward-looking by terminology such as “”, “expects”, “believes”, “anticipates”, “intends”, “estimates” and similar statements. Among other things, the Management Quotes 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 related to its ability to attract and retain productive agents, particularly entrepreneurial agents, its ability to maintain and develop new business relationships with insurance company, its ability to execute its growth strategy, its ability to adapt to changes in the regulatory environment in the Chinese insurance industry, its ability to compete effectively with its competitors, quarterly variations in its operating results caused by factors beyond its control and macroeconomic conditions in China, the future development of the COVID-19 outbreak and their potential impact on 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 events or circumstances, or changes in its expectations, unless the law requires it. Although Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will prove to be correct, and investors are cautioned that actual results may differ materially from anticipated results. Further information regarding the risks and uncertainties facing Fanhua is included in Fanhua’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F.