Core Viewpoint - FANHUA Inc. has entered a strategic cooperation agreement with Baidu AI Cloud to develop "Du Xiaobao," an AI-powered insurance sales assistant aimed at transforming the insurance industry through digital and intelligent solutions [1][2]. Group 1: Strategic Partnership - The collaboration will leverage resources from both companies, with FANHUA providing servers, insurance knowledge data, and a product development team, while Baidu will contribute AI dialogue models and technical support [2]. - This partnership is expected to enhance the capabilities of insurance agents, allowing them to better meet market demands and improve sales efficiency [2]. Group 2: Project Development Timeline - The "Du Xiaobao" project is set to begin beta testing with select users in June 2024, followed by the official launch of version 1.0 in July 2024 [3]. - The initial version will offer comprehensive support for insurance sales agents, including Q&A on insurance knowledge, product consultation, and intelligent customer management [3]. Group 3: Industry Impact - The partnership is anticipated to revolutionize the operational systems in the insurance industry, with AI robots expected to become proficient independent brokers [4]. - The application of AI technologies is projected to enhance customer experiences in purchasing and claims services, leading to increased productivity and efficiency in the insurance sector [4][5]. Group 4: Company Background - Established in 1998 and listed on NASDAQ in 2007, FANHUA is a leading independent financial services provider in China, focusing on technology-driven solutions for financial advisors [5]. - The company aims to create a collaborative platform for financial advisors and insurance sales organizations, enhancing their operational capabilities through advanced technology and data-driven insights [5][6].

GUANGZHOU, China, May 07, 2024 (GLOBE NEWSWIRE) -- Highest Performances Holdings Inc. (NASDAQ:HPH) ("HPH" or the "Company"), today announced that it has increased its shareholding in Fanhua Inc. ("Fanhua"), a leading technology-driven independent financial service provider in China, from 50.1% to 51.1% as of May 6, 2024 by acquiring 565,000 American Depositary Shares of Fanhua on Nasdaq. Mr. Yinan Hu, Vice Chairman and CEO of HPH commented, "We are pleased to witness the solid progress that Fanhua has made ...

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 ...

Financial Position - As of December 31, 2023, the company had cash and cash equivalents of RMB521.5 million (US$73.5 million) and short-term investments of RMB928.3 million (US$103.7 million) [556] - The company had total outstanding short-term loans of RMB164.3 million (US$23.1 million) as of December 31, 2023 [571] - As of December 31, 2023, the company's restricted net asset was RMB1,510.1 million (US$212.7 million), composed of registered equity and statutory reserves [574] - The aggregate undistributed earnings available for distribution as of December 31, 2023, were approximately RMB1,664.4 million (US$234.4 million) [574] Cash Flow - Net cash generated from operating activities for the year ended December 31, 2023, was RMB101.8 million (US$14.3 million), down from RMB137.8 million (US$20.0 million) in 2022 [562][563] - Net cash used in investing activities for the year ended December 31, 2023, was RMB234.3 million (US$33.0 million), primarily for purchasing short-term investment products [564] - The company anticipates that its current cash and cash equivalents, along with expected cash flow from operations, will be sufficient for at least the next 12 months [558] Income and Profitability - The company reported a net income of RMB289.1 million (US$40.7 million) for the year ended December 31, 2023 [562] - The company experienced a foreign currency translation gain of RMB2.2 million (US$0.3 million) in 2023 due to exchange rate fluctuations [555] - The company has no awareness of any trends or events likely to materially affect net revenues, income, or profitability for the period from January 1, 2023, to December 31, 2023 [576] Capital Expenditures and Investments - The company incurred capital expenditures of RMB13.0 million (US$1.8 million) for the year ended December 31, 2023, with plans for substantial increases in the following years [569] - The company expects to require cash for ongoing business needs, particularly for acquisitions and expansion of its distribution network in China [557] Revenue Recognition - The company recognizes revenue when control of promised goods or services is transferred to customers, with agency revenue derived from life insurance and P&C insurance products [580] - The estimated renewal commissions are recognized as revenue only to the extent that it is probable that a significant reversal will not occur [582] Financial Reporting and Compliance - The company prepares financial statements in accordance with U.S. GAAP, which involves significant judgments and estimates affecting reported amounts [577] - Business combinations are recorded using the acquisition method, with goodwill recognized as the excess of purchase consideration over the fair values of identifiable assets and liabilities [587] Tax Liabilities - The company had uncertain tax liabilities of RMB34.4 million (US$4.8 million) for 2023 [570] Renewal Commissions - The estimated constraint applied to total expected renewal commissions decreased from 69% as of December 31, 2022, to 51% as of December 31, 2023 [585] - The constraints applied to Zhongrong's and Zhongji's total estimated renewal commissions are 12% and 35%, respectively, as of December 31, 2023 [585] Dividend Distribution - The statutory reserves must reach 50% of registered capital before they can be distributed as cash dividends, except in liquidation scenarios [574]

Financial Data and Key Metrics Changes - In 2023, the company achieved total insurance premiums of RMB16.4 billion, representing a 28.7% year-on-year growth, outpacing the overall industry growth [7] - First-year premiums reached RMB3.8 billion, marking a 30.3% year-on-year growth [7] - Operating income was RMB195.8 million, up 16.1% year-on-year, while net income attributable to shareholders reached RMB280.4 million, reflecting a growth of 179.7% year-on-year [7][14] Business Line Data and Key Metrics Changes - The company focused on improving agent quality and productivity, with MDRT and 100k Premium agents contributing significantly to growth, accounting for 65% of total first-year premiums, up by 9 percentage points from 2022 [15] - Digital technology empowerment led to a decrease in operating expense ratio from 29.4% to 25.7%, with agents using the digital system showing 1.6 times higher productivity [17] - The open platform strategy accounted for over 30% of total new business, with contracts signed with 854 channels, contributing over RMB1.1 billion in first-year premiums [18] Market Data and Key Metrics Changes - The life insurance industry in China experienced a 10% year-on-year increase in premiums for 2023, with major insurers facing a 15% decline in average profit [14] - The company outperformed the industry, achieving a 30% increase in total life insurance premiums [14] Company Strategy and Development Direction - The company is focusing on Professionalization, Specialization, Digitalization, and Open Platform as key growth drivers [8] - The internationalization strategy is advancing, with the launch of two subsidiaries in Hong Kong and a strategic agreement with Singapore's White Group to enhance capabilities in AI development and internationalization [9][10] - The company aims to expand its service ecosystem beyond insurance to include family services, education, and wealth management [35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by regulatory changes but expressed confidence in the company's ability to adapt and benefit from industry consolidation [11][22] - The focus for 2024 will include building a specialized sales team, enhancing services for high net worth clients, and pursuing M&A opportunities [23] Other Important Information - The company has trained over 20,000 policy trusteeship experts and facilitated significant trust sales and premium generation [20] - The company is well-resourced with over RMB1.4 billion in net cash, positioning it favorably for M&A opportunities [23] Q&A Session Summary Question: Can you provide more details on commission revenue and overseas business? - The COO indicated that the commission cap could reduce commission rates by 30% to 40%, impacting independent brokers but presenting opportunities for Fanhua to gain market share [27][28] - The Chief Strategy Officer reported significant progress in Hong Kong, with contracts signed with 10 insurers and a focus on technology integration [29][30] Question: What is the collaboration with Singapore's White Group about? - The CEO emphasized that the collaboration will enhance Fanhua's capabilities in capital raising and M&A, aligning with the company's strategy to broaden services beyond insurance [36][37]

Exhibit 99.1 IR-389 FANHUA Reports Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results -- Net Income Attributable to Shareholders for 2023 Up 179.7% YoY -- GUANGZHOU, China, March 20, 2024, Eastern Standard Time, (GLOBE NEWSWIRE) FANHUA Inc. (Nasdaq: FANH) (the "Company" or "FANHUA"), a leading independent financial services provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. Financial Highlights for Year 2023 | --- | ...

GUANGZHOU, China, March 20, 2024 (GLOBE NEWSWIRE) -- FANHUA Inc. (NASDAQ:FANH) (the "Company" or "FANHUA"), a leading independent financial services provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 20231. Financial Highlights for Year 2023 (In thousands, except per ADS data and percentages)2022 (RMB)2023 (RMB)2023(US$)Change %Total net revenues2,781,614 3,198,389 450,484 15.0 Operating income168,675 195,825 27,581 16.1 Net income at ...

GUANGZHOU, China, March 07, 2024 (GLOBE NEWSWIRE) -- FANHUA Inc. (“FANHUA” or the “Company”) (Nasdaq: FANH), a leading independent financial services provider in China, today announces that it will release its unaudited financial results for the fourth quarter and fiscal year 2023 before the U.S. financial markets open on March 20, 2024 Eastern Daylight Time. A conference call will be hosted by Mr. Yinan Hu, Vice-chairman and Chief Executive Officer of the Company, Mr. Ben Lin, Chief Strategy Officer of the ...

GUANGZHOU, China, March 07, 2024 (GLOBE NEWSWIRE) -- FANHUA Inc. (“FANHUA” or the “Company”) (Nasdaq: FANH), a leading independent financial services provider in China, today announces that it will release its unaudited financial results for the fourth quarter and fiscal year 2023 before the U.S. financial markets open on March 20, 2024 Eastern Daylight Time. A conference call will be hosted by Mr. Yinan Hu, Vice-chairman and Chief Executive Officer of the Company, Mr. Ben Lin, Chief Strategy Officer of the ...

GUANGZHOU, China, Feb. 02, 2024 (GLOBE NEWSWIRE) -- FANHUA Inc. ("FANHUA" or the "Company") (NASDAQ:FANH), a leading independent financial services provider in China, today announced that Fanhua and Puyi Inc. ("Puyi") entered into a framework agreement with Singapore White Group Pte. Ltd. ("White Group"). Pursuant to the framework agreement, White Group and its partners intend to invest up to US$500 million in Fanhua and up to US$500 million in Puyi. Both parties will proceed with finalising the details of ...