Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information Line Items | |
Entity Registrant Name | FANHUA INC. |
Trading Symbol | FANH |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 1,353,891,784 |
Amendment Flag | false |
Entity Central Index Key | 0001413855 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-33768 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 27/F |
Entity Address, Address Line Two | Pearl River Tower |
Entity Address, Address Line Three | No. 15 West Zhujiang Road |
Entity Address, City or Town | Guangzhou |
Entity Address, Postal Zip Code | 510623 |
Entity Address, Country | CN |
Title of 12(b) Security | Ordinary shares, par value US$0.001 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address, Address Line One | 27/F |
Entity Address, Address Line Two | Pearl River Tower |
Entity Address, Address Line Three | No. 15 West Zhujiang Road |
Entity Address, City or Town | Guangzhou |
Entity Address, Postal Zip Code | 510623 |
Entity Address, Country | CN |
Contact Personnel Name | Peng Ge |
City Area Code | +86 20 |
Local Phone Number | 83883033 |
Contact Personnel Email Address | E-mail: gepeng@fanhuaholdings.com |
Contact Personnel Fax Number | Fax: +86 20 83883181 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 169,653 | $ 24,369 | ¥ 772,823 |
Restricted cash | 95,952 | 13,783 | 75,343 |
Short term investments (Note 2(d)) | 1,612,351 | 231,600 | 1,554,060 |
Accounts receivable, net of allowance for doubtful accounts of RMB21,241 and RMB20,495 (US$2,944) as of December 31, 2018 and 2019, respectively (Note 2(e)) | 682,171 | 97,988 | 508,474 |
Insurance premium receivables (Note 2(e)) | 5,067 | 728 | 5,267 |
Other receivables, net (Note 4) | 61,570 | 8,844 | 86,150 |
Other current assets | 54,987 | 7,898 | 58,990 |
Total current assets | 2,681,751 | 385,210 | 3,061,107 |
Non-current assets: | |||
Property, plant, and equipment, net (Note 5) | 40,806 | 5,862 | 37,934 |
Goodwill, net (Note 6) | 109,869 | 15,782 | 109,869 |
Intangible assets, net (Note 2(g)) | 322 | 46 | 1,264 |
Deferred tax assets (Note 12) | 7,327 | 1,052 | 9,320 |
Investments in affiliates (Note 7) | 363,414 | 52,201 | 587,517 |
Other non-current assets (Note 2(j)) | 46,917 | 6,739 | 59,600 |
Right of use assets (Note 8) | 190,437 | 27,354 | |
Total non-current assets | 759,092 | 109,036 | 805,504 |
Total assets | 3,440,843 | 494,246 | 3,866,611 |
Current liabilities: | |||
Accounts payable | 382,882 | 54,998 | 332,685 |
Insurance premium payables | 7,901 | 1,135 | 15,248 |
Other payables and accrued expenses (Including refundable share rights deposits of the consolidated VIE of RMB8,184 and nil as of December 31, 2018 and 2019, respectively) (Note 10) | 220,290 | 31,643 | 254,824 |
Accrued payroll | 101,664 | 14,603 | 97,637 |
Income taxes payable | 155,251 | 22,300 | 205,189 |
Current operating lease liability (Note 8) | 79,986 | 11,489 | |
Total current liabilities | 947,974 | 136,168 | 905,583 |
Non-current liabilities: | |||
Other tax liabilities (Note 12) | 70,350 | 10,105 | 70,350 |
Deferred tax liabilities (Note 12) | 7,898 | 1,134 | 5,624 |
Refundable share rights deposits (Including refundable share rights deposits of the consolidated VIE of RMB138,328 and RMB266,901 as of December 31, 2018 and 2019, respectively) (Note 9(b)) | 266,901 | 38,338 | 138,328 |
Non-current operating lease liability (Note 8) | 103,252 | 14,831 | |
Total non-current liabilities | 448,401 | 64,408 | 214,302 |
Total liabilities | 1,396,375 | 200,576 | 1,119,885 |
Commitments and contingencies (Note 17) | |||
Equity: | |||
Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued 1,301,915,084 and 1,252,367,264 shares, of which 1,123,475,604 and 1,073,891,784 shares were outstanding as of December 31, 2018 and 2019, respectively) (Note 13) | 9,235 | 1,327 | 9,583 |
Treasury stock (Note 20) | (1,146) | (165) | (1,156) |
Additional paid-in capital | 393 | 56 | 437,176 |
Statutory reserves (Note 15) | 508,739 | 73,076 | 480,881 |
Retained earnings | 1,479,494 | 212,516 | 1,799,989 |
Accumulated other comprehensive loss | (65,429) | (9,398) | (93,290) |
Total shareholders’ equity | 1,931,286 | 277,412 | 2,633,183 |
Noncontrolling interests | 113,182 | 16,258 | 113,543 |
Total equity | 2,044,468 | 293,670 | 2,746,726 |
Total liabilities and shareholders’ equity | ¥ 3,440,843 | $ 494,246 | ¥ 3,866,611 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares |
Allowance for doubtful accounts (in Dollars and Yuan Renminbi) | ¥ 20,495 | ¥ 21,241 |
Ordinary shares, authorized shares | 10,000,000,000 | 10,000,000,000 |
Ordinary shares, par value (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.001 | ¥ 0.001 |
Ordinary shares, issued | 1,252,367,264 | 1,301,915,084 |
Ordinary shares, outstanding | 1,073,891,784 | 1,123,475,604 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Other payables and accrued expenses (in Dollars and Yuan Renminbi) | ¥ | ¥ 8,184 | |
Refundable share rights deposits (in Dollars and Yuan Renminbi) | ¥ | ¥ 266,901 | ¥ 138,328 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Agency | ¥ 3,335,397 | $ 479,100 | ¥ 3,143,873 | ¥ 3,780,217 |
Life insurance business | 3,193,625 | 458,736 | 2,870,776 | 2,424,444 |
P&C insurance business | 141,772 | 20,364 | 273,097 | 1,355,773 |
Claims adjusting | 370,606 | 53,234 | 327,390 | 308,256 |
Total net revenues | 3,706,003 | 532,334 | 3,471,263 | 4,088,473 |
Operating costs and expenses: | ||||
Agency | (2,263,952) | (325,196) | (2,151,856) | (2,864,882) |
Life insurance business | (2,166,126) | (311,144) | (1,943,053) | (1,636,340) |
P&C insurance business | (97,826) | (14,052) | (208,803) | (1,228,542) |
Claims adjusting | (219,496) | (31,529) | (194,159) | (194,525) |
Total operating costs | (2,483,448) | (356,725) | (2,346,015) | (3,059,407) |
Selling expenses | (278,085) | (39,944) | (231,075) | (221,785) |
General and administrative expenses | (475,107) | (68,245) | (468,430) | (534,145) |
Total operating costs and expenses | (3,236,640) | (464,914) | (3,045,520) | (3,815,337) |
Income from operations | 469,363 | 67,420 | 425,743 | 273,136 |
Other income, net: | ||||
Investment income | 79,070 | 11,358 | 195,456 | 191,784 |
Interest income | 2,828 | 406 | 34,207 | 25,891 |
Others, net | 9,664 | 1,388 | 11,807 | 14,284 |
Income from continuing operations before income taxes, share of income and impairment of affiliates, net and discontinued operations | 560,925 | 80,572 | 667,213 | 505,095 |
Income tax expense | (143,816) | (20,658) | (224,586) | (167,803) |
Share of income and impairment of affiliates, net | (224,555) | (32,255) | 174,468 | 108,944 |
Net income from continuing operations | 192,554 | 27,659 | 617,095 | 446,236 |
Net income from discontinued operations, net of tax (Note 2(w) & Note 3) | ¥ | 5,480 | |||
Net income | 192,554 | 27,659 | 617,095 | 451,716 |
Less: net income attributable to the noncontrolling interests | 3,622 | 520 | 7,180 | 2,488 |
Foreign currency translation adjustments | 10,178 | 1,462 | (10,194) | (10,664) |
Unrealized net gains (loss) on available-for-sale investments | 17,231 | 2,475 | (632) | |
Share of other comprehensive gain (loss) of affiliates | 452 | 65 | (1,763) | 1,263 |
Net income attributable to the Company’s shareholders | ¥ 188,932 | $ 27,139 | ¥ 609,915 | ¥ 449,228 |
Basic: | ||||
Net income from continuing operations (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ 0.17 | $ 0.02 | ¥ 0.49 | ¥ 0.36 |
Net income from discontinued operations (in Dollars per share and Yuan Renminbi per share) | (per share) | 0 | 0 | 0 | 0 |
Net income (in Dollars per share and Yuan Renminbi per share) | (per share) | 0.17 | 0.02 | 0.49 | 0.36 |
Diluted: | ||||
Net income from continuing operations (in Dollars per share and Yuan Renminbi per share) | (per share) | 0.17 | 0.02 | 0.49 | 0.36 |
Net income from discontinued operations (in Dollars per share and Yuan Renminbi per share) | (per share) | 0 | 0 | 0 | 0 |
Net income (in Dollars per share and Yuan Renminbi per share) | (per share) | 0.17 | 0.02 | 0.49 | 0.36 |
Basic: | ||||
Net income from continuing operations (in Dollars per share and Yuan Renminbi per share) | (per share) | 3.46 | 0.50 | 9.84 | 7.20 |
Net income from discontinued operations (in Dollars per share and Yuan Renminbi per share) | (per share) | 0 | 0 | 0 | 0.09 |
Net income (in Dollars per share and Yuan Renminbi per share) | (per share) | 3.46 | 0.50 | 9.84 | 7.29 |
Diluted: | ||||
Net income from continuing operations (in Dollars per share and Yuan Renminbi per share) | (per share) | 3.46 | 0.50 | 9.83 | 7.20 |
Net income from discontinued operations (in Dollars per share and Yuan Renminbi per share) | (per share) | 0 | 0 | 0 | 0.09 |
Net income (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ 3.46 | $ 0.50 | ¥ 9.83 | ¥ 7.29 |
Shares used in calculating net income per share: | ||||
Basic: (in Shares) | 1,092,601,338 | 1,092,601,338 | 1,239,264,464 | 1,231,698,725 |
Diluted (in Shares) | 1,093,229,436 | 1,093,229,436 | 1,240,854,034 | 1,261,223,049 |
Net income | ¥ 192,554 | $ 27,659 | ¥ 617,095 | ¥ 451,716 |
Total Comprehensive income | 220,415 | 31,661 | 605,138 | 441,683 |
Less: Comprehensive income attributable to the noncontrolling interests | 3,622 | 520 | 7,180 | 2,488 |
Comprehensive income attributable to the Company’s shareholders | ¥ 216,793 | $ 31,141 | ¥ 597,958 | ¥ 439,195 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity ¥ in Thousands, $ in Thousands | Common Stock [Member]CNY (¥)shares | Common Stock [Member]USD ($)shares | Additional Paid-in Capital [Member]CNY (¥) | Additional Paid-in Capital [Member]USD ($) | Statutory Reserves [Member]CNY (¥) | Statutory Reserves [Member]USD ($) | Retained Earnings [Member]CNY (¥) | Retained Earnings [Member]USD ($) | AOCI Attributable to Parent [Member]CNY (¥)shares | AOCI Attributable to Parent [Member]USD ($)shares | Subscription Receivables [Member]CNY (¥) | Noncontrolling Interest [Member]CNY (¥) | Noncontrolling Interest [Member]USD ($) | Treasury Stock [Member]CNY (¥)shares | Treasury Stock [Member]USD ($)shares | CNY (¥)shares | USD ($)shares |
Balance at Dec. 31, 2016 | ¥ 8,658 | ¥ 2,301,655 | ¥ 311,590 | ¥ 1,018,928 | ¥ (65,844) | ¥ (288,135) | ¥ 117,242 | ¥ 3,404,094 | |||||||||
Balance (in Shares) at Dec. 31, 2016 | shares | 1,165,072,926 | 1,165,072,926 | |||||||||||||||
Net income | 449,228 | 2,488 | 451,716 | ||||||||||||||
Foreign currency translation | (27,895) | 17,231 | (10,664) | ||||||||||||||
Exercise of share options | ¥ 458 | 64,488 | 64,946 | ||||||||||||||
Exercise of share options (in Shares) | shares | 69,118,158 | 69,118,158 | |||||||||||||||
Provision for statutory reserves | 30,658 | (30,658) | |||||||||||||||
Private placement | ¥ 455 | 200,632 | 201,087 | ||||||||||||||
Private placement (in Shares) | shares | 66,000,000 | 66,000,000 | |||||||||||||||
Subscription receipt | 22,187 | 22,187 | |||||||||||||||
Distribution of dividend | (137,216) | (137,216) | |||||||||||||||
Disposal of subsidiaries | (31,210) | 31,210 | (8,388) | (8,388) | |||||||||||||
Unrealized net gains on available-for-sale investments | ¥ (632) | ¥ (632) | |||||||||||||||
Share of other comprehensive gain of affiliates (in Shares) | shares | 1,263 | 1,263 | 1,263 | 1,263 | |||||||||||||
Balance at Dec. 31, 2017 | ¥ 9,571 | 2,429,559 | 311,038 | 1,468,708 | ¥ (93,108) | (248,717) | 111,342 | ¥ 3,988,393 | |||||||||
Balance (in Shares) at Dec. 31, 2017 | shares | 1,300,191,084 | 1,300,191,084 | |||||||||||||||
Net income | 609,915 | 7,180 | 617,095 | ||||||||||||||
Foreign currency translation | 1,581 | (11,775) | (10,194) | ||||||||||||||
Exercise of share options | ¥ 12 | 3,274 | 3,286 | ||||||||||||||
Exercise of share options (in Shares) | shares | 1,760,000 | 1,760,000 | |||||||||||||||
Repurchase of ordinary shares from shareholder (Note 13) | (1,464,163) | ¥ (960) | (1,465,123) | ||||||||||||||
Repurchase of ordinary shares from shareholder (Note 13) (in Shares) | shares | 150,000,000 | 150,000,000 | |||||||||||||||
Repurchase of ordinary shares from open market (Note 20) | (251,024) | ¥ (196) | ¥ (251,220) | ||||||||||||||
Repurchase of ordinary shares from open market (Note 20) (in Shares) | shares | 28,475,480 | 28,475,480 | 178,475,480 | 178,475,480 | |||||||||||||
Provision for statutory reserves | 169,843 | (169,843) | |||||||||||||||
Subscription receipt | ¥ 260,492 | ¥ 260,492 | |||||||||||||||
Distribution of dividend | (280,470) | (108,791) | (4,979) | (394,240) | |||||||||||||
Share of other comprehensive loss of affiliates | (1,763) | (1,763) | |||||||||||||||
Balance at Dec. 31, 2018 | ¥ 9,583 | 437,176 | 480,881 | 1,799,989 | (93,290) | 113,543 | ¥ (1,156) | 2,746,726 | |||||||||
Balance (in Shares) at Dec. 31, 2018 | shares | 1,301,951,084 | 1,301,951,084 | 178,475,480 | 178,475,480 | |||||||||||||
Net income | 188,932 | 3,622 | 192,554 | ||||||||||||||
Foreign currency translation | 10,178 | 10,178 | $ 1,462 | ||||||||||||||
Exercise of share options | ¥ 4 | 4 | |||||||||||||||
Exercise of share options (in Shares) | shares | 640,000 | 640,000 | |||||||||||||||
Repurchase of ordinary shares from open market (Note 20) | (437,176) | (46,497) | ¥ (342) | ¥ (484,015) | |||||||||||||
Repurchase of ordinary shares from open market (Note 20) (in Shares) | shares | 50,223,820 | 50,223,820 | 50,223,820 | 50,223,820 | |||||||||||||
Cancellation of treasury shares | ¥ (352) | ¥ 352 | |||||||||||||||
Cancellation of treasury shares (in Shares) | shares | (50,223,820) | (50,223,820) | (50,223,820) | (50,223,820) | |||||||||||||
Share-based compensation | 393 | ¥ 393 | |||||||||||||||
Provision for statutory reserves | 38,814 | (38,814) | |||||||||||||||
Distribution of dividend | (435,072) | (3,790) | (438,862) | ||||||||||||||
Disposal of subsidiaries | (10,956) | 10,956 | (193) | (193) | |||||||||||||
Unrealized net gains on available-for-sale investments | ¥ 17,231 | ¥ 17,231 | |||||||||||||||
Share of other comprehensive gain of affiliates (in Shares) | shares | 452 | 452 | 452 | 452 | |||||||||||||
Balance at Dec. 31, 2019 | ¥ 9,235 | ¥ 393 | ¥ 508,739 | ¥ 1,479,494 | ¥ (65,429) | ¥ 113,182 | ¥ (1,146) | ¥ 2,044,468 | $ 293,670 | ||||||||
Balance (in Shares) at Dec. 31, 2019 | shares | 1,252,367,264 | 1,252,367,264 | 178,475,480 | 178,475,480 | |||||||||||||
Balance as of December 31, 2019 in US$ (in Dollars) | $ | $ 1,327 | $ 56 | $ 73,076 | $ 212,516 | $ (9,398) | $ 16,258 | $ (165) | $ 293,670 | |||||||||
Balance as of December 31, 2019 in US$ (in Shares) | shares | 1,252,367,264 | 1,252,367,264 | 178,475,480 | 178,475,480 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Net income | ¥ 192,554 | $ 27,659 | ¥ 617,095 | ¥ 451,716 |
Adjustments to reconcile net income to net cash generated from operating activities: | ||||
Depreciation expense | 16,280 | 2,339 | 10,833 | 14,099 |
Amortization of intangible assets | 942 | 135 | 15,946 | 33,177 |
Non-cash operating lease expense | 69,482 | 9,981 | ||
Allowance for doubtful accounts | 6,533 | 938 | 6,791 | 11,328 |
Compensation expenses associated with stock options | 393 | 56 | ||
Loss (gain) on disposal of property, plant and equipment | 25 | 4 | (133) | (104) |
Fair value change of non-current assets | 4,241 | 609 | ||
Investment income | (65,616) | (9,425) | (156,047) | (177,862) |
Loss (gain) on disposal of subsidiaries | 58 | 8 | (2,009) | |
Share of income and impairment of affiliates, net | 224,555 | 32,255 | (174,468) | (108,944) |
Deferred taxes | 4,475 | 643 | (18,744) | 9,512 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (180,230) | (25,888) | (70) | (140,712) |
Insurance premium receivables | 200 | 29 | (942) | (4,603) |
Other receivables | 3,973 | 571 | (7,272) | (207,162) |
Amounts due from related parties | (8,714) | |||
Other current assets | 4,003 | 575 | (15,126) | (5,962) |
Other non-current assets | 1,612 | 232 | (6,291) | |
Accounts payable | 50,205 | 7,211 | 129,661 | 139,528 |
Insurance premium payables | (7,347) | (1,055) | 5,695 | 7,165 |
Other payables and accrued expenses | (25,533) | (3,668) | 21,462 | 22,901 |
Accrued payroll | 4,052 | 582 | 20,213 | 41,472 |
Income taxes payable | (49,969) | (7,178) | 75,224 | 69,729 |
Dividend received | 10,000 | |||
Lease liability | (76,564) | (10,998) | ||
Other tax liabilities | (2,428) | |||
Net cash generated from operating activities | 178,324 | 25,615 | 523,827 | 152,127 |
Cash flows used in investing activities: | ||||
Purchase of short term investments | (7,498,701) | (1,077,121) | (11,380,198) | (11,055,424) |
Proceeds from disposal of short term investments | 7,523,257 | 1,080,648 | 12,488,495 | 11,531,556 |
Purchase of property, plant and equipment | (19,686) | (2,829) | (22,765) | (20,899) |
Proceeds from disposal of property and equipment | 47 | 7 | 203 | 156 |
Disposal of subsidiaries, net of cash disposed of RMB94,677, RMB576 and RMB1,517 (US$218) in 2017, 2018 and 2019, respectively | 7,042 | 1,012 | (20,564) | |
Increase in other receivables | (500,000) | |||
Decrease in other receivables | 500,000 | |||
Additions in investments in non-current assets | (18,150) | |||
Increase in amounts due from related parties | (50,000) | |||
Decrease in amounts due from related parties | 50,000 | 41,452 | ||
Net cash (used in) generated from investing activities | 11,959 | 1,717 | 1,567,585 | (23,723) |
Cash flows from financing activities: | ||||
Repayment of advances from a disposed subsidiary | (103,446) | |||
Proceeds of employee and grantee subscriptions | 111,304 | 15,988 | 211,054 | 22,187 |
Proceeds of issuance of ordinary shares upon private placement | 201,087 | |||
Dividends paid | (435,072) | (62,494) | (326,725) | (137,216) |
Dividend distributed to noncontrolling interest | (3,790) | (544) | (4,979) | |
Proceeds on exercise of stock options | 4 | 1 | 3,286 | 64,946 |
Repurchase of ordinary shares from open market | (484,015) | (69,525) | (251,220) | |
Repurchase of ordinary shares from a shareholder | (1,318,611) | |||
Proceed related to disposal of Fanhua Times Sales & Services Co., Ltd and its subsidiaries | 19,463 | 2,796 | 22,689 | |
Net cash generated (used in) from financing activities | (792,106) | (113,778) | (1,664,506) | 47,558 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (601,823) | (86,446) | 426,906 | 175,962 |
Cash and cash equivalents and restricted cash at beginning of year | 848,166 | 121,831 | 439,033 | 273,979 |
Cash and cash equivalents and restricted cash at end of year | 265,605 | 38,152 | 848,166 | 439,033 |
Reconciliation in amounts on the consolidated Financial position: | ||||
Cash and cash equivalents at end of year, excluding held for sale | 169,653 | 24,369 | 772,823 | 363,746 |
Restricted cash at end of year, excluding held for sale | 95,952 | 13,783 | 75,343 | 75,287 |
Total of cash and cash equivalents and restricted cash at the end of the year | 265,605 | 38,152 | 848,166 | 439,033 |
Supplemental disclosure of non-cash investing activities: | ||||
Disposal of subsidiaries | 61,372 | 8,816 | 10,638 | 46,582 |
Other receivable and other non-current asset related to disposal of entities | 64,152 | |||
Right-of-use assets obtained in exchange for lease obligations (Note 8) | 78,344 | 11,253 | ||
Conversion of the convertible loan receivables into equity interest (Note 3 (e)) | 10,929 | 1,570 | ||
Supplemental disclosure of non-cash financing activities: | ||||
Dividends offset against proceeds of employee subscriptions (Note 2(m)) | 49,438 | |||
Dividends payment offset | (62,536) | |||
10% consideration related to repurchase of ordinary shares from a shareholder (Note 9) | (8,184) | (1,176) | 146,512 | |
Effect of exchange rate changes on cash and cash equivalents | 19,262 | 2,767 | (17,773) | (10,908) |
Income taxes paid | ¥ 189,487 | $ 27,218 | 109,863 | ¥ 103,155 |
Supplemental disclosure of non-cash operating activity: | ||||
Interest repayment (Note 2(m)) | ¥ 5,557 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disposal of subsidiaries, net of cash disposed | ¥ 1,517 | $ 218 | ¥ 576 | ¥ 94,677 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (1) Organization and Description of Business Fanhua Inc. (the “Company”) (formally known as “CNinsure Inc.”) was incorporated in the Cayman Islands on April 10, 2007 and listed on the Nasdaq on October 31, 2007. The Company, its subsidiaries and its variable interest entities (the “VIEs”) are collectively referred to as the “Group”. The Group is principally engaged in the provision of agency services and insurance claims adjusting services in the People’s Republic of China (the “PRC”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (2) Summary of Significant Accounting Policies (a) Basis of Presentation and Consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company, all its subsidiaries and those VIEs of which the Company is the primary beneficiary from the dates they were acquired or incorporated. All intercompany balances and transactions have been eliminated in consolidation. In addition, the Group consolidates VIEs of which it is deemed to be the primary beneficiary and absorbs all of the expected losses and residual returns of the entity. See Note 9 for detail. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management of the Group to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. The Company’s management base their estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements included estimates of allowance for doubtful receivables, estimates made in assumptions related to the valuation of the convertible loan receivable, estimates associated with equity-method investment impairment assessments. Actual results could differ from those estimates. (c) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash, and have insignificant risk of changes in value related to changes in interest rates. In its capacity as an insurance agent, the Group collects premiums from certain insureds and remits the premiums to the appropriate insurance companies. Accordingly, as reported in the consolidated statements of financial position, “premiums” are receivables from the insureds of RMB3,823 and RMB4,646 as of December 31, 2018 and 2019, respectively. Unremitted net insurance premiums are held in a fiduciary capacity until disbursed by the Group. The Group invests these unremitted funds only in cash accounts held for a short term, and reports such amounts as restricted cash in the consolidated statements of financial position. Also, restricted cash balance includes guarantee deposits required by China Banking and Insurance Regulatory Commission (“CBIRC”) in order to protect insurance premium appropriation by insurance agency and the entrustment deposit received from the members of eHuzhu, an online mutual aid platform operated by the Group. The balance for guarantee and entrustment deposits were RMB71,520 and RMB91,306 as of December 31, 2018 and 2019, respectively. (d) Short Term Investments Short term investments are mainly available-for-sale investments in debt securities that do not have a quoted market price in an active market. Available-for-sale investments are carried at fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income or loss. The Group benchmarks the values of its other investments against fair values of comparable investments and reference to product valuation reports as of the balance sheet date, and categorizes all fair value measures of short term investments as level 2 of the fair value hierarchy. The short term investments balance were RMB1,554,060 and RMB1,612,351 as of December 31, 2018 and 2019, respectively. No impairment loss on short term investments was identified for each of the years ended December 31, 2017, 2018 and 2019. (e) Accounts Receivable and Insurance Premium Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable represent fees receivable on agency and claims adjusting services primarily from insurance companies. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The allowance for doubtful accounts is the Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable balance. The Group determines the allowance based on historical write-off experience. The Group reviews its allowance for doubtful accounts regularly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Accounts receivable, net is analyzed as follows: As of December 31, 2018 2019 RMB RMB Accounts receivable 529,715 702,666 Allowance for doubtful accounts (21,241 ) (20,495 ) Accounts receivable, net 508,474 682,171 The following table summarizes the movement of the Group’s allowance for doubtful accounts for accounts receivables: 2017 2018 2019 RMB RMB RMB Balance at the beginning of the year 16,792 20,198 21,241 Provision for doubtful accounts 14,052 6,791 6,533 Write-offs (10,646 ) (5,748 ) (7,279 ) Balance at the end of the year 20,198 21,241 20,495 Insurance premium receivables consist of insurance premiums to be collected from the insured, and are recorded at the invoiced amount and do not bear interest. Amounts collected on insurance premium receivables are included in net cash provided by operating activities in the consolidated statements of cash flows. (f) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives, taking into account residual value: Estimated useful life Estimated residual Building 20-36 0 % Office equipment, furniture and fixtures 3-5 0%-3 % Motor vehicles 5-10 0%-3 % Leasehold improvements 5 0 % The depreciation methods and estimated useful lives are reviewed regularly. The following table summarizes the depreciation expense recognized in the consolidated statements of income and comprehensive income: 2017 2018 2019 RMB RMB RMB Operating costs 43 232 216 Selling expenses 2,775 4,769 7,144 General and administrative expenses 11,281 5,832 8,920 Depreciation expense 14,099 10,833 16,280 (g) Goodwill and Other Intangible Assets Goodwill and amortization of intangible assets Goodwill represents the excess of costs over fair value of net assets of businesses acquired in a business combination. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date or more frequently if certain indicators arise. The Group operated in two reporting units for the year ended December 31, 2019. The goodwill impairment review is a two-step process. Step 1 consists of a comparison of the fair value of a reporting unit with its carrying amount. An impairment loss may be recognized if the review indicates that the carrying value of a reporting unit exceeds its fair value. Estimates of fair value are primarily determined by using discounted cash flows. If the carrying amount of a reporting unit exceeds its fair value, step 2 requires the fair value of the reporting unit to be allocated to the underlying assets and liabilities of that reporting unit, resulting in an implied fair value of goodwill. If the carrying amount of the goodwill of the reporting unit exceeds the implied fair value, an impairment charge is recorded equal to the excess of the carrying amount over the implied fair value. The impairment review is highly judgmental and involves the use of significant estimates and assumptions. These estimates and assumptions have a significant impact on the amount of any impairment charge recorded. Discounted cash flow methods are dependent upon assumptions of future sales trends, market conditions and cash flows of each reporting unit over several years. Actual cash flows in the future may differ significantly from those previously forecasted. Other significant assumptions include growth rates and the discount rate applicable to future cash flows. In 2018 and 2019, management compared the carrying value of each reporting unit, inclusive of assigned goodwill, to its respective fair value which is the step one of the two-step impairment test. The fair value of all reporting units was estimated by using the income approach. Based on this quantitative test, it was determined that the fair value of each reporting unit tested exceeded its carrying amount and, therefore, step 2 of the two-step goodwill impairment test was unnecessary. The management concluded that goodwill was not impaired as of December 31, 2018 and 2019. Identifiable intangibles assets are required to be determined separately from goodwill based on their fair values. In particular, an intangible asset acquired in a business combination should be recognized as an asset separate from goodwill if it satisfies either the “contractual-legal” or “separability” criterion. Intangible assets with a finite economic life are carried at cost less accumulated amortization. Amortization for identifiable intangible assets categorized as customer relationships are computed using the accelerated method, while amortization for other identifiable intangible assets are computed using the straight-line method over the intangible assets’ economic lives. Intangible assets with indefinite economic lives are not amortized but carried at cost less any subsequent accumulated impairment losses. If an intangible asset that is not being amortized is subsequently determined to have a finite economic life, it will be tested for impairment and then amortized prospectively over its estimated remaining economic life and accounted for in the same manner as other intangible assets that are subject to amortization. Intangible assets with indefinite economic lives are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be impaired. Separately identifiable intangible assets consist of brand names, trade names, customer relationships, non-compete agreements, agency agreement and licenses, and software and systems. The intangible assets, net consisted of trade names with cost of RMB8,898. The trade names have an estimated useful life of 9.4 to 10 years and accumulated amortization of RMB7,634 and RMB8,576 as of December 31, 2018 and 2019. Aggregate amortization expenses for intangible assets were RMB33,177, RMB15,946 and RMB942 for the years ended December 31, 2017, 2018 and 2019, respectively. Impairment of intangible assets with definite lives The Group evaluates the recoverability of identifiable intangible assets with determinable useful lives whenever events or changes in circumstances indicate that these assets’ carrying amounts may not be recoverable. The Group measures the carrying amount of identifiable intangible assets with determinable useful lives against the estimated undiscounted future cash flows associated with each asset. Impairment exists when the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the years ended December 31, 2017, 2018 and 2019, the Group recognized no impairment losses on identifiable intangible assets with determinable useful lives. Impairment of indefinite-lived intangible assets An intangible asset that is not subject to amortization is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Such impairment test is to compare the fair values of assets with their carrying amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates or market price. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. Market prices are based on potential purchase quote from a third party, if any. During the years ended December 31, 2017, 2018 and 2019, the Group recognized no impairment losses on its indefinite-lived intangible assets. The estimated amortization expenses for the next five years are: RMB322 in 2020 and nil in years after 2020. (h) Other Receivables and Other Current Assets Other receivables and other current assets mainly consist of loans and amounts due from third parties, advances, deposits, interest receivables and prepaid expenses. See Note 4 for details. (i) Investment in Affiliates The Group uses the equity method of accounting for investments in which the Group has the ability to exercise significant influence, but does not have a controlling interest. The Group continually reviews its investment in equity investees to determine whether a decline in fair value to an amount below the carrying value is other-than temporary. The primary factors the Group considers in its determination are the duration and severity of the decline in fair value; the financial condition, operating performance and the prospects of the equity investee; and other company specific information such as the stock price of the investee and its corresponding volatility, if publically traded, the Group’s intent and ability to hold the investment until recovery, and changes in the macro-economic, competitive and operational environment of the investee. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. (j) Other Non-current Assets Other non-current assets mainly represent long-term equity investments accounted for under the measurement alternative method and the convertible loan receivable. Equity securities without readily determinable fair value The Group has long-term investments in equity security of certain privately held companies which the Group exerts no significant influence or a controlling interest. As a result of adoption of “ Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earning trends and other company specific information. The Group assessed that there has been no impairment or qualifying observable price changes related to its investments in privately held companies in the years ended December 31, 2018 and 2019. Investments in privately held companies are reported in other non-current assets. Convertible loan receivable The Group has elected the fair value option for the convertible loan receivable, which permits the irrevocable fair value option election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The convertible loan receivable accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded in the consolidated income statements. See Note 3(e) for details. (k) Impairment of Long-Lived Assets Property, plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying value of the asset exceeds the fair value of the asset. (l) Insurance Premium Payables Insurance premium payables are insurance premiums collected on behalf of insurance companies but not yet remitted as of the balance sheet dates. (m) Subscription Receivables The Group entered into share purchase agreements with companies established on behalf of its employees (the “Employee Company”) for the issuance of 100,000,000 ordinary shares at US$0.27 per ordinary share and 50,000,000 ordinary shares at US$0.29 per ordinary share in 2014. The issue prices are the average closing prices for the 20 trading days prior to the board approval dates of such subscriptions. The sale of shares to the Employee Company was completed on December 17, 2014. In order to facilitate the purchase of shares by employees as described above, the Group has granted a loan to the Employee Company. The loan bears interest at a rate of 3.0% per annum and is repayable upon the sale of the shares by employees, termination of employment or within two years, whichever comes first. The interest rate was determined with reference to fair market prices and therefore no interest-related compensation expense was recorded. Upon the expiry of the loan agreement on December 17, 2016, the repayment maturity of the loan was further extended to June 2018 and the loan continues to bear interest at a rate of 3.0% per annum. According to FASB ASC 505-10-45, the loan is recorded as a separate line of deduction from equity in the Group’s consolidated statements of financial position. Interest income accruing from the loan is recognized as non-operating income. During the year 2018, the principal in the amount of RMB260,492 and interests in the amount of RMB29,224 had been settled of while RMB49,438 of principal and RMB5,557 of interest were offset by the Company’s dividend distributions. As of December 31, 2018, the principal and interest of the loans have been fully collected. (n) Treasury shares Treasury shares represent ordinary shares repurchased by the Group that are no longer outstanding and are held by the Group. The repurchased ordinary shares are recorded whereby the total par value of shares acquired is recorded as treasury stock and the difference between the par value and the amount of cash paid is recorded in additional paid-in capital. If additional paid-in capital is not available or is not sufficient, the remaining amount is to reduce retained earnings. See Note 20 for details. (o) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carryforwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Group presents an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the statements of financial position as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the Group to use, and the Group does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit is presented in the statements of financial position as a liability. (p) Share-based Compensation All forms of share-based payments to employees and nonemployees, including stock options and stock purchase plans, are treated the same as any other form of compensation by recognizing the related cost in the consolidated statements of income and comprehensive income. The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the amount of compensation cost recognized at any date must at least equal to the portion of the grant-date value of the award that is vested at that date. For awards with both service and performance conditions, if each tranche has an independent performance condition for a specified period of service, the Group recognizes the compensation cost of each tranche as a separate award on a straight-line basis; if each tranche has performance conditions that are dependent of activities that occur in the prior service periods, the Group recognizes the compensation cost on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. No compensation cost is recognized for instruments that employees and nonemployees forfeit because a service condition or a performance condition is not satisfied. Employee share-based compensation Compensation cost related to employee stock options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. If an award requires satisfaction of one or more performance or service conditions (or any combination thereof), compensation cost is recognized if the requisite service is rendered, while no compensation cost is recognized if the requisite service is not rendered. Nonemployee share-based compensation The Group early adopted the ASU 2018-07, “Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” Classification of award Options or similar instruments on shares shall be classified as liabilities instead of equity if either of the following conditions is met: ● The underlying shares are classified as liabilities; ● The Group can be required under any circumstances to settle the option or similar instrument by transferring cash or other assets. The Group measures a liability award under a share-based payment arrangement based on the award’s fair value remeasured at each reporting date until the date of settlement. The corresponding credit is recorded as a share-based liability. Compensation cost for each period until settlement shall be based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered at the reporting date) in the fair value of the instrument for each reporting date. The Group measures an equity award based on the awards’ fair value on grant date and recognizes the compensation cost over the vesting periods, with the corresponding credit recorded as paid-in capital. Modification of an Award A change in any of the terms or conditions of the awards is accounted for as a modification of the award. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards, the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. Share-based compensation expenses of nil nil (q) Employee Benefit Plans As stipulated by the regulations of the PRC, the Group’s subsidiaries in the PRC participate in various defined contribution plans organized by municipal and provincial governments for its employees. The Group is required to make contributions to these plans at a percentage of the salaries, bonuses and certain allowances of the employees. Under these plans, certain pension, medical and other welfare benefits are provided to employees. The Group has no other material obligation for the payment of employee benefits associated with these plans other than the annual contributions described above. The contributions are charged to the consolidated statements of income and comprehensive income as they become payable in accordance with the rules of the above mentioned defined contribution plans. (r) Revenue Recognition On January 1, 2018, the Group adopted ASC 606 “Revenue from Contracts with Customers” (“ASC 606”) and applied the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and reported under the accounting standards in effect for the periods presented. The Group’s revenue from contracts with insurance companies is derived principally from the provision of agency and claims adjusting services. According to ASC 606, revenue is recognized at a point in time upon the effective date of the insurance policy, as no performance obligation exists after the insurance policy was signed. If there are other services within the contract, the Company estimates the stand-alone selling price for each separate performance obligation, and the corresponding apportioned revenue is recognized over the period of time in which the customer receives the service, and as the performance obligations are fulfilled and the Company is entitled to that portion of revenue using the output method for the services. In situations where multiple performance obligations exist within a contract, the use of estimates is required to allocate the transaction price on a relative stand-alone selling price basis to each separate performance obligation. The Group determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer; ● Identification of the performance obligation in the contract; ● Determination of the transaction price, including the constraint on variable consideration; ● Allocation of the transaction price to the performance obligation in the contracts; and ● Recognition of revenue when (or as) the Group satisfies a performance obligation. The Group disaggregates its revenue from different types of service contracts with customers by principal service categories, as the Group believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See Note 22 for detailed disaggregated revenue information that is disclosed for each reportable segment. The following is a description of the accounting policy for the principal revenue streams of the Group. Insurance agency services revenue For Insurance agency services, performance obligations are considered met and revenue is recognized when the services are rendered and completed, at the time an insurance policy becomes effective, that is, when the signed insurance policy is in place and the premium is collected from the insured. The Group has met all the criteria of revenue recognition when the premiums are collected by the Group or the respective insurance companies and not before, because collectability is not ensured until receipt of the premium. Accordingly, the Group does not accrue any commission and fees prior to the receipt of the related premiums. No allowance for cancellation has been recognized for agency as the management of the Group estimates, based on its past experience that the cancellation of policies rarely occurs. Any subsequent commission adjustments in connection with policy cancellations, which have been de minims to date, are recognized upon notification from the insurance carriers. Actual commission and fee adjustments in connection with the cancellation of policies were 0.2%, 0.1% and 0.1% of the total commission and fee revenues during years ended December 31, 2017, 2018 and 2019, respectively. For life insurance agency, the Group may receive a performance bonus from insurance companies as agreed and per contract provisions. Once an agency achieves its performance obligation, typically a certain sales volume, the bonus will become due. The bonus amount is computed based on the insurance premium amount multiplied by an agreed-upon percentage. Performance bonus represent a form of variable consideration associated with certain sales volume, for which the Group earn commissions. The contingent commissions are recorded when a performance obligation is being achieved. The Group estimates the amount of consideration with a constraint applied that will be received in the coming year such that a significant reversal of revenue is not probable and accrues performance bonus relative to the recognition of the corresponding core commissions. For the year ended December 31, 2018 and 2019, the Group recognized contingent performance bonus of RMB23,166 and RMB58,124, respectively. Insurance claims adjusting services revenue For Insurance claims adjusting services, performance obligations are considered met and revenue is recognized when the services are rendered and completed, at the time loss adjusting reports are confirmed being received by insurance companies. The Group does not accrue any service fee before the receipt of an insurance company’s acknowledgement of receiving the adjusting reports. Any subsequent adjustments in connection with discounts which have been de minims to date are recognized in revenue upon notification from the insurance companies. Contract balances The Group’s contract balances include accounts receivable and contract asset. The balances of accounts receivable as of December 31, 2018 and 2019 are all derived from contracts with customers. See Note 2(e) for details. The timing between the recognition of revenue for effective insurance policy and the receipt of payment is not significant. The estimated accounts receivable in relation to cancellation of insurance policies within hesitation period is a contract asset included in accounts receivable. The balances of contract asset are RMB84,907 and RMB131,063 as of December 31, 2018 and December 31, 2019, respectively. The Group has no advance from customers in advance of revenue recognition, or contract liability and, therefore, none of revenue recognized in the current period that was previously recognized as a contract liability. Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses in the consolidated statements of operations and comprehensive income, as the amortization period is less than one year and the Group has elected the practical expedient included in ASC 606. The Group has applied the optional exemption provided by ASC 606 to not disclose the value of remaining performance obligations not yet satisfied as of period end for contracts with original expected duration of one year or less. Value-Added Tax and Surcharges The Group presents revenue net of sales and value-added taxes incurred. The sales taxes amounted to RMB25,239, RMB21,508 and RMB21,916 for the years ended December 31, 2017, 2018 and 2019, respectively. The State Administration of Taxation and Ministry of Finance jointly issued a Notice on Preparing for the Full Implementatio |
Acquisitions, Disposals and Reo
Acquisitions, Disposals and Reorganization | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | (3) Acquisitions, disposals and reorganization Disposal of subsidiaries in 2019 a. Disposal of Guangdong Fanhua Fangzhong Investment Management Co., Ltd. In July 2019, the Group disposed of Guangdong Fanhua Fangzhong Investment Management Co., Ltd. to its minority shareholder, for a total consideration of RMB61,372, which has been offset against the Group’s other payables due to the disposed subsidiary as of December 31, 2019. As the sales consideration equals to the net book value of the subsidiary at the time of disposal, no gain or loss on disposal of the subsidiary was recognized by the Group. Guangdong Fanhua Fangzhong Investment Management Co., Ltd. is an investment holding company with no actual business operation after year 2010. b. Disposal of Hubei Fanhua Insurance Agency Co., Ltd. In November 2019, the Group disposed of Hubei Fanhua Insurance Agency Co., Ltd. to three independent third party individuals, for a total consideration of RMB300, which has been settled as of December 31, 2019. The Group recognized a loss of RMB58 on disposal of this subsidiary, which was determined by the excess of the net book value of the subsidiary over the sales consideration at the time of disposal. Disposal of subsidiaries in 2018 c. Disposal of InsCom service Limited and InsCom Holding Limited In October 2018, the Group disposed of InsCom service Limited, InsCom Holding Limited Disposal of subsidiaries in 2017 d. Disposal of Beijing Ruisike Management Consulting Co., Ltd. In January 2017, the Group disposed Beijing Ruisike Management Consulting Co., Ltd to a third party, for a total cash consideration of RMB20,867, which was settled as of December 31, 2017. The Group recognized a gain of RMB2,029 on disposal of this subsidiary, which was determined by the excess of the sales consideration over the net book value of the subsidiary at the time of disposal. e. Disposal of Fanhua Times Sales & Service Co., Ltd. and its subsidiaries In October 2017, the Group entered into a share transfer agreement with Beijing Cheche Technology Co. Ltd., or Cheche. Under this agreement, the Group disposed of the equity interests in Fanhua Times Sales & Service Co. Ltd., and its subsidiaries that conducts mainly P&C insurance business (collectively, the “P&C Insurance Division”), to Cheche for a total consideration of RMB225,398, including RMB95,398 cash consideration and RMB130,000 in the value of a convertible loan receivable, which is convertible or collectible in three years and recognized as other non-current assets. As of December 31, 2018 and 2019, the Group has RMB19,463 and nil Under such election, the convertible loan receivable is measured initially and subsequently at fair value, with any changes in the fair value of the instrument being recorded in the consolidated financial statements as a change in fair value of derivative instruments. The Group estimates the fair value of this instrument by first estimating the fair value of the straight debt portion. The Group then estimates the fair value of the embedded conversion option based on the recent development of Cheche. The sum of these two valuations is the fair value of the convertible loan receivable included in other non-current assets. On October 31, 2017, the Group used the discounted cash flow method to value the debt portion of the convertible loan receivable and determined the fair value to be RMB22,000, and based on Cheche’s current and expected financial performance, industry trend and expected revenue and margin, management considered the conversion option to be deeply out of the money and determined the fair value of the option to be immaterial. As a result, the carrying amount of the convertible loan receivable was adjusted by RMB108,000. The total fair value of RMB22,000 was initially recognized and the balance remained the same and retained in other non-current assets as of December 31, 2017. The convertible loan receivable also carries a 10% interest return per annum which could be satisfied by cash or converted equity interest in Cheche. The related interest income in 2017 is about RMB367. When the convertible loan receivable expires, the Group has the right to convert to the equity interests of Cheche, or recover the principal and interests of the convertible loan receivable according to the agreement. The Group recognized RMB884 gain on disposal of these subsidiaries in 2017, which was determined by the excess of the cash consideration and fair value of the convertible loan receivable over the net book value of the subsidiaries, which was calculated to be RMB116,514 at the time of disposal. The net book value of the subsidiaries at the time of disposal also included goodwill allocated to this disposal in the amount of RMB12,208. Based on Cheche’s current and expected financial performance, industry trend and expected revenue and margin, management determined the fair value of the option to be approximately RMB4,500 as of December 31, 2018 according to the analysis under the Black-Scholes option pricing model with detailed assumptions disclosed as below. The Group further considered the fair value of the straight debt portion of this financial instrument at year ended December 31, 2018. The sum of these two valuations is considered to be similar with the amount which was initially recognized and retained in other non-current assets. The fair value of convertible debt was RMB22,000 as of December 31, 2017 and 2018, and there has been no impairment recorded for the convertible loan receivable during 2018. On October 10, 2019, the Group exercised the conversion option to partially convert RMB80,000, a portion of original RMB130,000 convertible loan receivable, into 28,684,255 ordinary shares of Cheche Cayman, representing 3.3% equity interest. As stipulated in the original agreement, the unconverted balance of RMB50,000 remains outstanding with the original maturity date of October 31, 2020 and interest rate of 10% per annum, and is no longer convertible. The fair value of the convertible loan receivable on the day of the conversion, amounted to RMB17,759. Upon conversion, the Group uses the relative carrying amount approach to record RMB10,929 as the initial cost of the equity investments of Cheche Cayman in other non-current assets, and RMB6,830 in other receivables, net (see Note 4) in the consolidated statements of financial position. Accordingly, no gain or loss has been recognized upon conversion of this convertible loan receivable. After the conversion, the Group measured the investment using the measurement alternative as Cheche Cayman is a privately-held company without readily determinable fair value. The Group assess that the carrying amount of investments of Cheche Cayman to approximate its fair value at initial recognition, and there has been no impairment for the year ended December 31, 2019. The Company used the Black-Scholes valuation model in determining the fair value of embedded conversion option, which requires the input of highly subjective assumptions, including the expected life of the conversion option, stock price volatility, dividend yield rate and risk-free interest rate. The assumption used in determining the fair value of the embedded conversion option on December 31, 2018 and the conversion date, or October 10, 2019, were as follows: Assumptions December 31, October 10, Expected dividend yield (Note i) 0.00 % 0.00 % Risk-free interest rate (Note ii) 2.48 % 1.91 % Expected volatility (Note iii) 58.20 % 47.19 % Expected life (Note iv) 1.8 years 0.03 years Share price per ordinary share on valuation date RMB1.00 RMB0.36 (i) Expected dividend yield: The expected dividend yield was estimated by the Company based on Cheche’s historical dividend policy. (ii) Risk-free interest rate: Risk-free interest rate was estimated based on the 2-year and 1-year U.S. Government Bond yield as of each of the valuation date. (iii) Expected volatility: As Cheche is a non-listed company, the Company adopted corresponding volatility with reference to its annualized standard deviation of the continuously compounded rate of return on the daily average adjusted share price as of the valuation date. (iv) Expected life: The expected life was the contractual life of the option based on the agreement with Cheche. f. Disposal of Fanhua Bocheng Brokerage Limited (“Bocheng”) In November 2017, the Group disposed of Bocheng to a third party for a total consideration of RMB46,582 and the consideration receivable was offset by the other payables to Bocheng. See supplemental disclosure of cash flow information for details. Prior to the disposal, the Group had a liability due to Bocheng in the amount of RMB103,446, which was settled in December 2017. The Group recognized loss of RMB904 on the disposal of this subsidiary, which was determined by the excess of the net book value of the subsidiary at the time of disposal over the sales consideration. As a result of this disposal, brokerage’s result of operations should be reclassified to discontinued operations. Brokerage segment is no longer valid as of December 31, 2017. And accordingly, the segment note disclosure to the prior year consolidated financial statements have been restated. The activities of the brokerage business were segregated and reported as discontinued operations in the consolidated statements of income and comprehensive income for 2017. The following table presents a reconciliation of the major classes of line items constituting pretax from discontinued operations to after-tax profit reported in discontinued operations for the years ended December 31, 2017: Year ended RMB Results of discontinued operations: Total net revenues 172,993 Total operating costs (163,079 ) Selling expenses (190 ) General and administrative expenses (3,380 ) Other income, net 40 Loss on disposal of discontinued operations (904 ) Income from discontinued operations before income taxes 5,480 Income taxes expense — Net income from discontinued operations, net of tax 5,480 Year ended RMB Cash flow from discontinued operations: Net cash generated from (used in) operating activities* 8,992 Net cash used in investing activities — Net cash generated from financing activities — Net cash increase (decrease) in cash and, cash equivalents, and restricted cash 8,992 Cash and cash equivalents and restricted cash at beginning of year 5,031 Cash and cash equivalents, and restricted cash at the disposal date 14,023 Cash and cash equivalents and restricted cash at end of year — * Including adjustment for the loss on disposal of discontinued operations in the amount of RMB904 in 2017. As of respective closing date of each of these disposals in 2017, the Group has completed the closing procedures of all the above transactions and has effectively transferred its control of Bocheng to the respective buyers. |
Other Receivables, Net
Other Receivables, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (4) Other Receivables, net Other receivables, net are analyzed as follows: As of December 31, 2018 2019 RMB RMB Advances to staff (i) 10,036 9,578 Advances to entrepreneurial agents (ii) 1,362 3,523 Advances to a third party channel vendor (iii) 8,400 13,575 Rental deposits 12,580 14,333 Amount due from a third party (iv) 19,463 6,830 Amount due from payment platform 7,082 9,926 Other (v) 27,227 3,805 86,150 61,570 (i) This represented advances to staff of the Group for daily business operations which are unsecured, interest-free and repayable on demand. (ii) This represented advances to entrepreneurial agents who provide services to the Group. The advances are used by agents to develop business. The advances were unsecured, interest-free and repayable on demand. (iii) This represented advances to a third-party channel vendor, which are unsecured, interest-free and repayable on demand. (iv) This represented the residual balance of uncollected cash consideration related to the disposal of P&C business. In 2019, the Group collected the full amount of the cash consideration. The balance of RMB6,830 as of December 31, 2019 represents the amount receivable from Cheche as a result of conversion of loan receivable, which is due in October 2020. See Note 3(e) for details. (v) This represented other miscellaneous receivables, receivable related to disposal of a subsidiary, advance payments to designated governmental authorities on behalf of our employees regarding statutory employee benefits and other deposits, etc. In August 2017, the Group disposed of the equity interests in Baosikang Information Technology (shenzhen) Co., Ltd. to a third party for a total cash consideration of RMB7,557 (US$1,099), of which nil and RMB7,557 was collected as of December 31, 2018 and 2019, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | (5) Property, Plant and Equipment Property, plant and equipment, net, is comprised of the following: As of December 31, 2018 2019 RMB RMB Building 12,317 12,317 Office equipment, furniture and fixtures 129,848 131,878 Motor vehicles 10,292 11,228 Leasehold improvements 14,284 24,386 Total 166,741 179,809 Less: Accumulated depreciation (128,807 ) (139,003 ) Property, plant and equipment, net 37,934 40,806 No impairment for property, plant and equipment was recorded for the years ended December 31, 2017, 2018 and 2019. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Goodwill Disclosure [Text Block] | (6) Goodwill The gross amount of goodwill and accumulated impairment losses by segment as of December 31, 2018 and 2019 are as follows: Agency segment Claims Adjusting segment Total RMB RMB RMB Gross as of December 31, 2018 and 2019 131,977 21,137 153,114 Accumulated impairment loss as of December 31, 2018 and 2019 (22,108 ) (21,137 ) (43,245 ) Net as of December 31, 2018 109,869 — 109,869 Net as of December 31, 2019 109,869 — 109,869 The Group performed the annual impairment analysis as of the balance sheet date. There has been no impairment loss recognized in goodwill for the years ended December 31, 2017, 2018 and 2019. |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | (7) Investments in Affiliates As of December 31, 2019, the Group’s investments accounted for under the equity method totaled RMB363,414 (as of December 31, 2018: RMB587,517). Investment in CNFinance Holdings Limited (“CNFinance”) In March 2018, in connection with the reorganization of Sincere Fame International Limited (“Sincere Fame”), the shareholders of Sincere Fame transferred all of their equity interests in Sincere Fame in exchange for the ordinary shares of CNFinance. As a result, CNFinance became the parent company of Sincere Fame and the Company owned 20.6% equity interests in CNFinance. The Company’s equity interest of CNFinance was diluted from 20.6% to 18.5% after CNFinance’s listing in New York Stock Exchange “NYSE” (symbol: CNF) on November 7, 2018. CNFinance is a leading home equity loan service provider incorporated in the Cayman Islands and based in Guangzhou, PRC. Investment in CNFinance is accounted for using the equity method as the Group has significant influence by the right to nominate one board members out of seven. As of December 31, 2019, due to the continued decline in the share price of CNFinance, the Group recognized an other-than-temporary impairment of RMB322,655 to reduce the carrying value of the investment to RMB352,541. Investment in Puyi Inc. The Group accounted for the initial investment under the cost method before August 2018. In August of 2018, Puyi Inc. or Puyi, an exempted company incorporated under the laws of the Cayman Islands, which is also the ultimate holding company of Fanhua Puyi Fund Distribution Co., Ltd., or Fanhua Puyi” and Chengdu Puyi Bohui Information Technology Co., Ltd., or Puyi Bohui, started its process of an initial public offering (“IPO”) in the U.S. capital market. For the IPO purpose, Puyi and its subsidiaries have conducted certain equity reorganization transactions with the Group. As part of Puyi Inc’s reorganization, in September 2018, the Group transferred its shares in Fanhua Puyi to Puyi Bohui with the carrying amount of RMB10,028 in exchange for 4,033,600 Ordinary Shares of Puyi (“Puyi’s shares”), representing 4.8% of Puyi’s equity interest. No gain or loss on above transactions was recognized by the Group as management considered that the substance of this transaction is an exchange of shares as part of Puyi Inc’s reorganization, and the fair value of Puyi’s share is equivalent to the fair value of the Group’s original equity interests on Fanhua Puyi given up. Puyi was subsequently listed on NASDAQ on March 29, 2018, and the Group’s equity was then diluted to 4.5% after its IPO. Puyi provides wealth management, corporate finance and asset management services in China. Since September 5, 2018, investment in Puyi has been accounted for using the equity method as the Group has obtained significant influence through the right to nominate one out of five board directors of Puyi. As of December 31, 2019, the fair value of Group’s equity interest determined based on Puyi’s ordinary shares market price was RMB117,005. Investment in Teamhead Automobile The Group holds 40% equity interest in Shanghai Teamhead Automobile through one of the Group’s claim adjusting subsidiaries. The affiliate is a PRC registered company that provides insurance surveyor and loss adjustors services. During the years ended December 31, 2017, 2018 and 2019, the Group recognized its share of income of affiliates in the amount of RMB108,944 and RMB174,468 and RMB98,100 respectively. During the year ended December 31, 2019, the Group recognized an impairment of RMB322,655 on investment in CNFinance, to reflect a write-down to the fair value of the investment as measured by the closing market price of CNFinance’s ordinary share. During the years ended December 31, 2017, 2018 and 2019, the Group recognized its share of other comprehensive income of RMB1,263, and other comprehensive loss of RMB1,763, and RMB452, respectively. Investments as of December 31, 2018 and 2019 were as follows: As of December 31, 2018 2019 RMB RMB Teamhead Automobile 119 204 Puyi. 11,350 10,670 CNFinance 576,048 352,540 Total 587,517 363,414 The summarized financial information of equity method investees is illustrated as below: As of December 31, 2018 2019 RMB RMB Statements of Financial Position Total assets 19,630,092 13,490,270 Total liabilities 16,339,829 9,510,013 Year Ended December 31, 2017 2018 2019 Results of operation RMB RMB RMB Income from operations 804,163 1,210,690 689,259 Net profit 529,524 907,724 520,539 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Leases of Lessee Disclosure [Text Block] | (8) Leases The Group’s lease payments for office space leases include fixed rental payments and do not consist of any variable lease payments that depend on an index or a rate. As of December 31, 2019, there was no leases that have not yet commenced. The following represents the aggregate ROU assets and related lease liabilities as of December 31, 2019: As of RMB Operating lease ROU assets 190,437 Current operating lease liability 79,986 Non-current operating lease liability 103,252 Total operating leased liabilities 183,238 The weighted average lease term and weighted average discount rate as of December 31, 2019 were as follows: As of RMB Weighted average lease term: Operating leases 2.99 Weighted average discount rate: Operating leases 4.78 % The components of lease expenses for the year 2019 were as follows: As of RMB Operating lease cost 77,406 Short term lease cost 15,148 Total 92,554 Supplemental cash flow information related to leases for the years ended December 31, 2019 were as follows: As of RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 74,265 Supplemental noncash information: Right-of-use assets obtained in exchange for lease obligations 78,344 Maturities of lease liabilities at December 31, 2019: Minimum Lease Payment RMB Year ending December 31: 2020 87,333 2021 57,638 2022 32,358 2023 17,458 2024 7,270 Thereafter 2,473 Total remaining undiscounted lease payments 204,530 Less: Interest (21,292 ) Total present value of lease liabilities 183,238 Less: Current operating lease liability (79,986 ) Non-current operating lease liability 103,252 |
Variable Interest Entities (VIE
Variable Interest Entities (VIE) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | (9) Variable Interest Entities (“VIE”) (a) VIEs related to operations PRC laws and regulations place certain restrictions on foreign investment in and ownership of insurance agencies, brokerages and on-line business. Accordingly, the Group conducted some of its operations in China through contractual arrangements among its PRC subsidiaries, two PRC affiliated entities and the equity shareholders of these PRC affiliated entities, who are PRC nationals. In recent years, some rules and regulations governing the insurance intermediary sector in China have begun to encourage foreign investment. The Group commenced a restructuring which resulted in obtaining controlling equity ownership in a majority of its affiliated insurance intermediary companies. The Group conducts all of its operations in China through its directly owned subsidiaries. (b) VIEs related to the 521 Plan On June 14, 2018, the Group announced that its board of directors has approved a 521 Share Incentive Plan (the “521 plan”). The 521 Plan is designed to incentivize the Group’s employees and independent sales agents (collectively the “Participants”). The 521 Plan provides Participants an opportunity to benefit from appreciation of the Company’s ordinary shares by purchasing the Company’s ordinary shares at a stated subscription price of US$27.38 per ADS, in exchange for employee and non-employee services, if service and performance conditions are achieved. US$27.38 per ADS, is the weighted average of the closing prices of the repurchase and new share issuance transactions listed below. 10% of the subscription price is paid by the Participant on or around the grant date, while the remaining 90% of the subscription prices is financed through interest-bearing loans from the Group. The vesting of the awards is contingent on performance conditions being met during the requisite service periods. The 521 Plan established a pool of 280 million ordinary shares (14 million ADS) available to benefit Participants. In establishing the ADS pool, the Group has: ● through one of the 521 Plan Employee Companies, purchased 7.5 million ADS from Master Trend Limited (“Master Trend”) at US$29 per ADS from June to October 2018 with consideration amounted to RMB1,465,123. Master Trend is a company controlled by a principal shareholder, who is also one of the founders of the Group. The Group funded 90% of the purchase price with the remaining 10% funded by Participants; ● repurchased 1,423,774 ADS from the open market from August to December 2018 at the average purchase price is US$25.52 per ADS, which have been transferred to Fanhua Employees Holdings Limited on January 10, 2019; ● issued 101,524,520 ordinary shares (5,076,226 ADSs) at US$25.52 per ADS in January 2019 to the 521 Plan Employee Companies The Group set the 521 Plan subscription price at US$27.38 per ADS, which is the weighted average of the closing prices of the above mentioned repurchase and new share issuance transactions, but Participants initially deposited at 10% contribution of US$29 per share. The 10% subscription price contributed by Participants amounted to RMB8,184 and RMB138,328 as of December 31, 2018 and is recorded as current and non-current refundable share right deposits on the statement of financial position, respectively. Please see Note 16. The RMB8,184 represents excess contribution received from Participants, which have been fully refunded in April, 2019. As of December 31, 2019, the Group had already transferred all the 280 million ordinary shares to the 521 Plan Employee Companies with an average price at US$27.38 per ADS. The 10% subscription price contributed by Participants amounted to RMB266,901 and is recorded as non-current refundable share right deposits on the statement of financial position. Pursuant to the 521 Plan, the Group set up three companies which are Fanhua Employees Holdings Limited, Step Tall Limited and Treasure Chariot Limited (collectively the “521 Plan Employee Companies”) to hold the Group’s ordinary shares on behalf of the Participants of the 521 Plan. Each of the 521 Plan Employee Companies is a legal entity formed in the British Virgin Islands with a sole shareholder appointed by the Group. Each shareholder is either an employee, or a founder who is also a shareholder and director of the Group. The 521 Plan Employee Companies were established by the Group to facilitate the adoption of its 521 Plan. The Group’s ordinary shares are the only significant assets held by the 521 Plan Employee Companies, which serve as collaterals to the loans issued by the Group to the Participants during the vesting period. Given the only substantial recourse to the loans issued by the Group are the ordinary shares, changes (principally decreases) in the value of the ordinary shares held by the 521 Plan Employee Companies will be indirectly absorbed by the Group and the Group has potential exposure to the economics of the 521 Plan Employee Companies. Therefore, the Group has variable interests in the 521 Plan Employee Companies during the vesting period. Since none of the 521 Plan Employee Companies’ equity investors have the obligation to absorb the expected losses or the right to receive the expected residual returns of the ADS which will be indirectly absorbed by the Group or the Participants as described in the various vesting scenarios in Note 19(b), the 521 Plan Employee Companies are deemed to be VIEs of the Group. Through the loan agreements, entrusted share purchase agreements and letters of undertaking described below, the Group controls the decision-making rights of the 521 Plan Employee Companies with respect to the shares held by the 521 Plan Employee Companies as collateral to the loans issued to the Participants, and the Group has potential exposure to the economics of the VIEs resulting from the fluctuation in value of the ADS, which is more than insignificant. The ordinary shares are the only significant assets held by the 521 Plan Employee Companies. The ordinary shares held by 521 Plan Employee Companies serve as collateral to the loans issued by the Group to the Participants. Given the only substantial recourse to the loans issued by the Group are the ordinary shares, decreases in the value of the ordinary shares held by the 521 Plan Employee Companies will be indirectly absorbed by the Group. Further, the Group will also participate in the variability and absorb the economic benefits of the 521 Plan Employee Companies, through an increase in value of the shares held by the 521 Plan Employee Companies, if the performance conditions are not met or partially met based on the profit distribution arrangements. Based on above, the Group is the primary beneficiary of the 521 Plan Employee Companies and consolidates them because it has the power to direct the activities that most significantly impact the 521 Plan Employee Companies’ economic performance, and the obligation to absorb losses of the 521 Plan Employee Companies that could potentially be significant to them and the right to receive benefits from the 521 Plan Employee Companies that could potentially be significant to the 521 Plan Employee Companies. The following is a summary of the contractual agreements that the Group entered into relating to the 521 Plan: ● Loan, trust and shares pledge agreements The nature and structure of the 521 Plan Employee Companies is that they are investment vehicle companies holding the Company’s shares on behalf of the Participants for the purpose of the 521 Plan. Loan agreements and entrusted share purchase agreements were signed among our wholly-owned subsidiary CISG Holdings Ltd., the 521 Plan Employee Companies and each of the Participants. To effect the 521 Plan, Participants agreed to pay 10% of the subscription price and executed a loan agreement with the Group for a loan representing 90% of the subscription price of the ordinary shares under the 521 Plan. Participants executed an entrusted share purchase agreement with one of the 521 Employee Companies whereby the 521 Plan Employee Company will legally hold the ordinary shares on behalf of the Participants. As of December 31, 2018 and 2019, the loan agreements provide a total of US$184,815 and US$344,988, respectively, in loans to the VIEs and Participants of the 521 Plan with the sole purpose of providing funds necessary for the purchase of the Group’s ordinary shares under the 521 Plan. All the ordinary shares are pledged as collateral to the Group for the loans and are not yet vested, the Participants cannot direct the sale of the ordinary shares without the consent of the Group until the ordinary shares are fully vested in accordance with the 521 Plan’s agreed target performance. The loan agreement and the entrusted share purchase agreement shall terminate after five year or upon termination of agency relationship and employment relationship or the settlement of the loan, whichever comes first. ● Letter of Undertaking The sole director and sole shareholder of each of the 521 Plan Employee Companies is either a significant shareholder and director, or an employee of the Group, who have executed powers of attorney on behalf of the Group. Under the power of attorney, they will follow, without any conditions, the Group’s instructions to manage all the activities of each of the 521 Plan Employee Companies. In addition, the Group can replace the sole director and shareholder of each of the 521 Plan Employee Companies to another designated party at it discretion. Risks in relation to the 521 Plan’s VIE structure The variable interest entities or their respective shareholders and directors may fail to perform their obligations under our contractual arrangements with them. The 521 Plan Employee Companies hold the shares on behalf of the Participants. Each of the 521 Plan Employee Companies is a legal entity formed in the British Virgin Islands with a sole shareholder appointed by the Group. Mr. Yinan Hu, the Group’s director, and two other employees of the Group are the respective sole shareholder and director of the 521 Plan Employee Companies. The Group’s ordinary shares are the only significant assets held by the 521 Plan Employee Companies, which serve as collateral to the loans issued by the Group to the Participants. Given the only substantial recourse to the loans issued by the Group are the ordinary shares of the Group, changes (principally decreases) in the value of the ordinary shares held by the 521 Plan Employee Companies will be indirectly absorbed by the Group and the Group has potential exposure to the economics of the 521 Plan Employee Companies. If the Group’s VIEs or their shareholders and directors fail to perform their respective obligations under the contractual arrangements, the Group may have to incur substantial costs and expend additional resources to enforce such arrangements. The Group may also have to rely on legal remedies under various legal jurisdictions, including seeking specific performance or injunctive relief, and claiming damages, which the Group cannot assure that it will be effective under the relevant laws and regulations. For example, if the shareholders of the Group’s VIEs act in bad faith toward the Group, the Group may have to take legal action to compel them to perform their contractual obligations. In addition, if any third parties claim any interest in the equity interests of the Group’s VIEs, the Group’s ability to exercise shareholders’ rights or foreclose the shares pledged under the loan agreements with the Participants may be impaired. If these or other disputes between the shareholders and directors of the Group’s VIEs and third parties were to impair our control over the Group’s VIEs, its ability to consolidate the financial results of the VIEs would be affected, which would in turn materially and adversely affect the Group business, financial condition and results of operations. Summarized below is the information related to the VIE’s assets and liabilities reported in the Company’s consolidated financial position after inter group elimination as of December 31, 2018 and 2019, respectively: As of December 31, 2018 2019 RMB RMB Total assets — — Total liabilities 146,512 266,901 The VIEs are related to the 521 Plan as explained above, which did not have any operation or cash flows activities during 2018 and 2019. |
Other Payables and Accrued Expe
Other Payables and Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | (10) Other Payables and Accrued Expenses Components of other payables and accrued expenses are as follows: As of December 31, 2018 2019 RMB RMB Business and other tax payables 70,237 72,998 Refundable deposits from employees and agents 26,790 23,478 Refundable share rights deposits (Note 9(b)) 8,184 — Professional fees 17,105 13,958 Accrued expenses to third parties 42,324 22,610 Payables for addition of office equipment, furniture and fixtures 8,618 — Contributions from members of eHuzhu mutual aid program 62,459 76,765 Others 19,107 10,481 254,824 220,290 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | (11) Employee Benefit Plans Employees of the Group located in the PRC are covered by the retirement schemes defined by local practice and regulations, which are essentially defined contribution plans. In addition, the Group is required by law to contribute certain percentage of applicable salaries for medical insurance benefits, unemployment and other statutory benefits. The contribution percentages may be different from district to district which is subject to the specific requirement of local regime government. The PRC government is directly responsible for the payments of the benefits to these employees. For the years ended December 31, 2017, 2018 and 2019, the Group contributed and accrued RMB66,370, RMB74,179 and RMB90,438, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | (12) Income Taxes The Company is a tax exempted company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on their income or capital gains. In addition, upon any payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is imposed. The Group’s subsidiaries and VIEs incorporated in the PRC are subject to Income Tax in the PRC. On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first 2,000 Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD 2,000 will be taxed at 16.5%. The provision for current income taxes of the subsidiaries operating in Hong Kong has been calculated by applying the current rate of taxation of 16.5% for the years ended December 31, 2017, and 8.25% for the years ended December 31, 2018 and 2019. Pursuant to the relevant laws and regulations in the PRC, Ying Si Kang Information Technology (Shenzhen) Co., Ltd. (“Ying Si Kang”) and Shenzhen Huazhong United Technology Co., Ltd. (“Shenzhen Huazhong”), subsidiaries of the Group, was regarded as a software company and thus exempted from PRC Income Tax for two years starting from its first profit-making year, followed by a 50% reduction for the next three years. For Ying Si Kang, year 2014 was the first profit-making year and accordingly it has made a 12.5% tax provision for its profits for the years ended December 31, 2016, 2017 and 2018. For Shenzhen Huazhong, year 2017 was the first profit-making year and accordingly it has made a 12.5% tax provision for its profits for the year ended December 31, 2019. Pursuant to the Circular on Issues Regarding Tax-related Preferential Policies for Further Implementation of Western Development Strategy jointly issued by the State Ministry of Finance, General Administration of Customs, China and State Administration for Taxation, enterprises located in the western China regions that fall into the encouraged industries are entitled to 15% EIT preferential tax treatment from January 1, 2011 to December 31, 2020. In September 2018, Fanhua Lianxing Insurance Sales Co., Ltd. (“Lianxing”), the Group’s wholly-owned subsidiary, which is the holding entity of our life insurance operations, were relocated to Tianfu New Area, Sichuan province. Lianxing was entitled to a preferential tax rate of 15% from September 1, 2018 to December 31, 2020 as it was classified as encouraged enterprises in the western region in an industry sector encouraged by the PRC government. Tibet Zhuli Investment Co. Ltd. (“Tibet Zhuli”), our wholly-owned subsidiary, was entitled to a preferential tax rate of 9% for the period from January 1, 2015 to December 31, 2017 and 15% for the years ended December 31, 2018 and 2019, as it was established with approval in an economy development zone in the PRC before January 1, 2018. The Group’s subsidiaries that are the PRC tax resident are required to withhold the PRC withholding tax of 10% on dividend payment to their non-PRC resident immediate holding company, unless such dividend payment is qualified for the 5% reduced tax rate under the Arrangement between Mainland China and Hong Kong for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (the “PRC-HK DTA”). One of the Group’s wholly owned subsidiaries, CNinsure Holdings Limited, was determined by Hong Kong Taxation Bureau to be a Hong Kong resident enterprise in July 2018. The Hong Kong resident certificate was valid for the each of the 3 years in the period ended December 31, 2019, which was issued by the Hong Kong Inland Revenue Department. CNinsure Holdings Limited qualified a Hong Kong resident certificate and was entitled to enjoy a reduced tax rate of 5% for the dividends paid by PRC subsidiaries for the year ended December 31, 2019 under Bulletin [2018] No. 9 (e.g. beneficial ownership, shareholding percentage and holding period). The Group accounts for uncertain income tax positions by prescribing a minimum recognition threshold in the financial statements. The movements of unrecognized tax benefits are as follows: RMB Balance as of January 1, 2017 72,778 Change in unrecognized tax benefits — Gross increase in tax positions (2,428 ) Balance as of December 31, 2017 70,350 Change in unrecognized tax benefits — Gross increase in tax positions — Balance as of December 31, 2018 70,350 Change in unrecognized tax benefits — Gross decrease in tax positions — Balance as of December 31, 2019 70,350 The uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. Based on the outcome of any future examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized tax benefits for tax positions taken regarding previously filed tax returns, might materially change from those recorded as liabilities for uncertain tax positions in the Group’s consolidated financial statements as of December 31, 2018 and 2019. In addition, the outcome of these examinations may impact the valuation of certain deferred tax assets (such as net operating losses) in future periods. The Group’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits, if any, as a component of income tax expense. The Company does not anticipate any significant increases or decreases to its liability for unrecognized tax benefit within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB100 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. Income tax expenses are comprised of the following: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Current tax expense 158,291 243,330 139,549 Deferred tax (income) expense 9,512 (18,744 ) 4,267 Income tax expense 167,803 224,586 143,816 The principal components of the deferred income tax assets and liabilities are as follows: As of December 31, 2018 2019 RMB RMB Non-current deferred tax assets: Operating loss carryforward 35,686 40,498 Intangible assets, net 6,129 5,311 Less: valuation allowances (32,495 ) (38,482 ) Total 9,320 7,327 Non-current deferred tax liabilities: Intangible assets, net 122 — Dividend withholding taxes 5,502 7,898 Total 5,624 7,898 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Group’s experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Group has provided RMB32,495 and RMB38,482 valuation allowance for the years ended December 31, 2018 and 2019, respectively. The Group had total operating loss carry-forwards of RMB142,745 and RMB162,704 as of December 31, 2018 and 2019, respectively. As of December 31, 2019, the operating loss carry-forwards of RMB9,576, RMB15,323, RMB41,224, RMB55,890 and RMB40,691, are to expire during the years ending December 31, 2020, 2021, 2022, 2023, and 2024, respectively. During the years ended December 31, 2017, 2018 and 2019, RMB13,284, RMB16,288 and RMB6,060, respectively, of tax loss carried forward has been expired and canceled. Reconciliation between the provision for income taxes computed by applying the PRC enterprise income rate of 25% to net income before income taxes and income of affiliates, and the actual provision for income taxes is as follows: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Income from continuing operations before income taxes, share of income of affiliates and discontinued operations 505,095 667,213 560,925 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 126,274 166,803 140,231 Expenses not deductible for tax purposes: Entertainment 1,411 1,358 2,516 Effect of tax holidays on concessionary rates granted to PRC subsidiaries (826 ) (8,307 ) (36,527 ) Other 19,689 1,079 730 Tax exemption and tax relief: Change in valuation allowance 578 6,583 5,987 Uncertain tax provisions (2,428 ) — — Deferred income tax for dividend distribution 16,800 53,702 49,267 Other 6,305 3,368 (18,388 ) Income tax expense 167,803 224,586 143,816 Additional PRC income taxes that would have been payable without the tax exemption amounted to approximately RMB826, RMB8,307 and RMB36,527 for the years ended December 31, 2017, 2018 and 2019, respectively. Without such exemption, the Group’s basic net profit per share for the years ended December 31, 2017, 2018 and 2019 would have been decreased by RMB0.00, RMB0.01 and RMB0.03, and diluted net profit per share for the years ended December 31, 2017, 2018 and 2019 would have been decreased by RMB0.00, RMB0.01 and RMB0.03, respectively. If the entities were to be non-resident for PRC tax purposes, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC subsidiaries, the withholding tax would be 10%, whereas in the case of dividends paid by PRC subsidiaries which are 25% or more directly owned by tax residents in the Hong Kong Special Administrative Region, the withholding tax would be 5%. The Group’s subsidiary, CNinsure Holdings Limited qualified as Hong Kong resident for the each of the 3 years in the period ended December 31, 2019 and was entitled to enjoy 5% reduced tax rate under Bulletin [2018] No. 9 for the years ended December 31, 2017, 2018 and 2019, respectively. Aggregate undistributed earnings of the Group’s subsidiaries and VIEs in the PRC that are available for distribution to the Group of approximately RMB1,441,628 and RMB1,303,923 as of December 31, 2018 and 2019 respectively, are considered to be indefinitely reinvested. If those earnings were to be distributed or they were determined to be no longer permanently reinvested, the Group would have to record a deferred tax liability in respect of those undistributed earnings of approximately RMB66,580 and RMB65,196, respectively. During the years ended 2018 and 2019, the Group has provided RMB53,702 and RMB49,267, respectively, deferred income tax for the declared dividend distribution based on a 5% withholding tax rate. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting over tax basis, including those differences attributable to a more-than-50-percent-owned domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | (13) Capital Structure On January 10, 2019, the Company had granted an additional 6.5 million ADS (equivalent of 130,000,000 ordinary shares) at US$25.6 per ADS (equivalent of US$1.28 per ordinary share) to the Participants, of which the 1,423,774 ADS was repurchased from open market during 2018 and was held by the Company as treasury shares as of December 31, 2018. Pursuant to the Company’s 521 Plan, 280,000,000 ordinary shares had been purchased by 521 Plan Employee Companies at the weighted average price of US$1.37 per ordinary share and 178,475,480 shares of which were recorded as treasury shares as of December 31, 2018 and 2019. During 2019, the Company has purchased and cancelled an aggregate of 2,511,191 ADSs (equivalent of 50,223,820 ordinary shares), representing 4.7% of the total shares outstanding as of December 31, 2019, at an average price of approximately US$28.2 per ADS for a total amount of approximately RMB484,015 (US$69,525), under its share buyback program to repurchase up to US$200 million ADSs by December 31, 2019, as previously announced by its board of directors in March 2019. During 2019, the Company issued 640,000 new shares for the exercise of options, representing 0.1% of the total shares outstanding as of December 31, 2019. During 2018, the Company repurchased 1,423,774 ADS (equivalent of 28,475,480 ordinary shares) on the open market and 7.5 million ADS (equivalent of 150,000,000 shares) from Master Trend Limited to execute the 521 Plan in 2018, for an accumulated cash consideration of RMB1,716,343, representing 2.19% and 11.52% of the total shares outstanding as of December 31, 2018 respectively. Master Trend Limited is an investment vehicle company beneficially owned by Mr. Qiuping Lai, co-founder and former president of the Group who has retired from the Company in March 2016. During 2018, the Company issued 1,760,000 new shares for the exercise of options, representing 0.16% of the total shares outstanding as of December 31, 2018. During 2017, the Company issued 69,118,158 new shares for the exercise of options, representing 5.32% of the total shares outstanding as of December 31, 2017. On April 6, 2017, the Company announced that it entered into a share purchase agreement with Fosun Industrial Holdings Limited (“Fosun”), a wholly-owned subsidiary of Fosun International Limited (00656.HK) for a private placement of 66,000,000 ordinary shares (equivalent to 3,300,000 ADS) of the Company, at purchase price of US$0.44185 per ordinary share equivalent to US$8.837 per ADS, for a total investment of US$29,162. The purchase price represented the average closing price of the past 20 trading days prior to the signing of the share purchase agreement between Fosun and the Company on March 29, 2017. Fosun held 5.08% of the total shares outstanding of the Company as of December 31, 2017 and its purchased shares were subject to a contractual one-year lock-up. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | (14) Net Income per Share The computation of basic and diluted net income per ordinary share is as follows: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Basic: Net income from continuing operations 446,236 617,095 192,554 Net income from discontinued operations 5,480 — — Net income 451,716 617,095 192,554 Less: Net income attributable to the noncontrolling interests 2,488 7,180 3,622 Net income attributable to the Company’s shareholders 449,228 609,915 188,932 Weighted average number of ordinary shares outstanding 1,231,698,725 1,239,264,464 1,092,601,338 Basic net income from continuing operations per ordinary share 0.36 0.49 0.17 Basic net income from discontinued operations per ordinary share 0.00 0.00 0.00 Basic net income per ordinary share 0.36 0.49 0.17 Basic net income from continuing operations per ADS 7.20 9.84 3.46 Basic net income from discontinued operations per ADS 0.09 0.00 0.00 Basic net income per ADS 7.29 9.84 3.46 Diluted: Net income from continuing operations 446,236 617,095 192,554 Net income from discontinued operations 5,480 — — Net income 451,716 617,095 192,554 Less: Net income attributable to the noncontrolling interests 2,488 7,180 3,622 Net income attributable to the Company’s shareholders 449,228 609,915 188,932 Weighted average number of ordinary shares outstanding 1,231,698,725 1,239,264,464 1,092,601,338 Weighted average number of dilutive potential ordinary shares from share options 29,524,324 1,589,570 628,098 Total 1,261,223,049 1,240,854,034 1,093,229,436 Diluted net income from continuing operations per ordinary share 0.36 0.49 0.17 Diluted net income from discontinued operations per ordinary share 0.00 0.00 0.00 Diluted net income per ordinary share 0.36 0.49 0.17 Diluted net income from continuing operations per ADS 7.20 9.83 3.46 Diluted net income from discontinued operations per ADS 0.09 0.00 0.00 Diluted net income per ADS 7.29 9.83 3.46 The shares subscribed by Participants under the 521 Plan is record as treasury shares and excluded from the computation of basic and diluted income per ordinary share during the year ended December 31, 2018 and 2019. Further, the contingently issuable shares subject to the 521 Plan will be excluded from basic income per ordinary share and diluted earnings per share until all the performance conditions have been satisfied. |
Distribution of Profits
Distribution of Profits | 12 Months Ended |
Dec. 31, 2019 | |
Distribution Of Profits Disclosure [Abstract] | |
Distribution of Profits | (15) Distribution of Profits As stipulated by the relevant PRC laws and regulations applicable to China’s foreign investment enterprise, the Group’s subsidiaries and VIEs in the PRC are required to maintain non-distributable reserves which include a statutory surplus reserve as of December 31, 2018 and 2019. Appropriations to the statutory surplus reserve are required to be made at not less than 10% of individual company’s net profit as reported in the PRC statutory financial statements of the Company’s subsidiaries and VIEs. The appropriations to statutory surplus reserve are required until the balance reaches 50% of the registered capital of respective subsidiaries and VIEs. The statutory surplus reserve is used to offset future losses. These reserves represent appropriations of retained earnings determined according to PRC law and may not be distributed. There are no appropriations to reserves by the Company other than the Group’s subsidiaries and VIEs in the PRC during the periods presented. The accumulated amounts contributed to the statutory reserves were RMB480,881 and RMB508,739 as of December 31, 2018 and 2019, respectively. |
Related-party Balances and Tran
Related-party Balances and Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | (16) Related-party Balances and Transactions The principal related-party balances as of December 31, 2018 and 2019, and transactions for the years ended December 31, 2017, 2018 and 2019 are as follows: (i) The Group advanced a short-term loan with a principal amount of RMB50,000 to Shenzhen Baoying Factoring Co., Ltd. (“Shenzhen Baoying”) in August 2018, which was controlled by Puyi, the Group’s affiliate. The amounts is unsecured, bearing interest at 8.5% per annum and are repayable after 6 months from the date of the agreement. The principal and interest of the loan have been received on November 2018. Interest income from loan receivable from Shenzhen Baoying for 2018 is RMB989. The Group charged CNFinance interest income of RMB8,714, nil nil In 2018 and 2019, one of the Group’s subsidiaries purchased certain wealth management products offered by an online peer-to-peer (“P2P”) lending platform, which is considered to be a related party as the legal representative of the company that operates the P2P platform is a relative to Mr. Yinan Hu, the Group’s co-founder and director. The wealth management products purchased on the platform by the subsidiary bear interests at 7.3% with terms of 90 days. Principal and interests are payable upon maturity of those products or on a quarterly basis. As of December 31, 2018, the value of the outstanding wealth management products recorded as short term investments in the consolidated statements of financial position was RMB15,000 and no investment income has been recognized before maturity. As of December 31, 2019, these wealth management products were matured. The principal of RMB15,000 and interests of RMB360 recorded as investment income in the consolidated statements of income have been received in 2019. There was no balance outstanding as of December 31, 2019 with regard to such products. (ii) During 2018, the Group has repurchased a total of 7.5 million of the Company’s outstanding ADS (equivalent of 150,000,000 ordinary shares) from Master Trend at US$29.0 per ADS (equivalent to US$1.45 per ordinary share), representing the average closing price of the 30 trading days prior to the Group’s Board approval on June 14, 2018. In form of loan to the 521 plan’s participants, the Group had paid RMB1,318,611 as 90% of shares purchase consideration to Master Trend during 2018. The remaining 10% in the amount of RMB146,512 was paid by the 521 Plan’s Participants directly to Master Trend, in which the Group recorded RMB8,184 and RMB138,328 as current and non-current refundable share right deposits on the statement of financial position as of December 31, 2018, respectively. Master Trend is beneficially owned by Mr. Qiuping Lai and Master Trend was then a related party because it was a principal owners of the Group at the time of the repurchase. Master Trend still held 4.3% ordinary shares of the Group as of October 10, 2018, upon the Group’s completion of its repurchase transactions of 7.5 million ADS. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | (17) Commitments and Contingencies (i) See Note 8 for the Company’s commitments for future minimum lease payments under operating leases. (ii) On March 2, 2020, the U.S. District Court for the Southern District of New York has granted in its entirety the Company’s motion to dismiss the class action lawsuit originally filed on September 7, 2018 against the Group and three of its current or former executive officers and closed the case on March 12, 2020. Given the class action lawsuit has been closed with the court’s dismissal of the plaintiff’s complaints, the uncertainty about management’s assessment of financial reporting impact has been resolved and the management determined that no contingent liability is to be incurred. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | (18) Concentrations of Credit Risk Concentration risks Details of the customers accounting for 10% or more of total net revenues are as follows: Year ended December 31, 2017 % of sales 2018 % of sales 2019 % of sales RMB RMB RMB Huaxia Life Insurance Company Limited (“Huaxia”) 990,865 24.2 % 1,100,027 31.7 % 882,539 23.8 % AEON Life Insurance Company, Ltd (“AEON”). * * 453,120 13.1 % 677,707 18.3 % Sinatay Life Insurance Company, Ltd (“Sinatay”) * * * * 595,600 16.1 % Tianan Life Insurance Company Limited (“Tianan”) 913,456 22.3 % 704,933 20.3 % 447,430 12.1 % 1,904,321 46.5 % 2,258,080 65.1 % 2,603,276 70.3 % * represented less than 10% of total net revenues as of the year. Details of the customers which accounted for 10% or more of gross accounts receivable are as follows: As of December 31, 2018 % 2019 % RMB RMB Huaxia 161,908 31.8 % 213,851 30.4 % Sinatay * * 100,872 14.4 % Tianan 75,777 14.9 % * * AEON 74,538 14.7 % * * 312,223 61.4 % 314,723 44.8 % * represented less than 10% of accounts receivable as of the year end. The Group performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. The Group places its cash and cash equivalents and short investments with financial institutions with high-credit ratings and quality. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | (19) Share-based Compensation (a) 2012 Option G On March 12, 2012, the Company granted options (“2012 Options G”) to its directors and employees to purchase up to 92,845,000 ordinary shares of the Company. Pursuant to the option agreements entered into between the Company and the option grantees, the options shall vest over a five-year service period from 2012 to 2016. The expiration date of the 2012 Options is March 12, 2022. The 2012 Options G had an exercise price of US$0.30 (RMB1.90) and an intrinsic value of US$0.04 (RMB0.26) per ordinary share, except for the 3,200,000 options granted to the two independent directors which had an exercise price of US$0.31 (RMB1.98) and an intrinsic value of US$0.03(RMB0.17) per ordinary share. The exercise price for Option G was later modified to US$0.001 (RMB0.006) and the number of shares are reduced by half with no incremental cost as a result of such option modification in November 2014. The fair value of the options was determined by using the Black-Scholes option pricing model. For the years ended December 31, 2017, 2018 and 2019, share-based compensation expenses of nil nil nil For each of the three years ended December 31, 2017, 2018 and 2019, changes in the status of total outstanding options, were as follows: Number of options Weighted average exercise price in RMB Aggregate Intrinsic Value RMB Outstanding as of January 1, 2017 72,318,158 0.92 141,274 Exercised (69,118,158 ) 0.96 Forfeited (400,000 ) 0.01 Outstanding as of December 31, 2017 2,800,000 1.17 16,422 Exercised (1,760,000 ) 0.01 Forfeited — — Outstanding as of December 31, 2018 1,040,000 0.01 7,841 Exercised (640,000 ) 0.01 Forfeited — — Outstanding as of December 31, 2019 400,000 0.01 3,613 Exercisable as of December 31, 2019 400,000 0.01 3,613 As of December 31, 2019, all of the above options were fully vested. The following table summarizes information about the Company’s share option plans for the years ended December 31, 2017, 2018 and 2019: Year ended December 31, 2017 2018 2019 RMB RMB RMB Weighted-average grant-date fair value per share of options granted — — — Total intrinsic value of options exercised 270,419 16,884 5,703 Total fair value of share options vested — — — The following table summarizes information about the Company’s stock option plans as of December 31, 2019: Options outstanding Weighted average remaining contractual life (Years) Weighted average exercise price in RMB Options Exercisable 2012 Options G 400,000 2.25 0.01 400,000 (b) The 521 Plan In-substance recourse loans and option grants As disclosed in Note 9, the 521 Plan was designed to incentivize the Participants, 90% of the subscription price of the shares under the 521 Plan shall be settled by the Group through in-substance nonrecourse loans with interest at a rate of 8% to the Participants. While the remaining 10% is contributed by the Participants. The loan is repayable by the Participants upon the earlier of the expiry date of the 521 Plan, termination of employment or the agency contract or within five years. Given the consideration received from the employee consists of an in-substance nonrecourse loans, the award is, accounted for as an option until the note is repaid. In addition to the underlying shares which are collaterals to the loans, the Group also has legal recourse to the Participants’ personal assets until the loans and interests are paid in full. However, the Group considers these loans to be in-substance nonrecourse loans due to the uncertainty of the Group’s ability to recover sufficient assets from the Participants to justify the recourse nature of the loan. In accordance of ASC 718, the rights and obligations embodied in a transfer of equity shares to Participants for loans that provides no recourse, other than the shares, to other assets of the employee are substantially the same as those embodied in a grant of share options. Accordingly, the 521 Plan is accounted for as grant of share options. The principal and interest are included as part of the exercise price of the “option” (therefore, no interest income is recognized). Substantively, each share under the 521 Plan is an option to purchase a fixed number of share at a strike price per ADS equal to the subscription price (i.e., the exercise price) of US$27.38 per ADS increasing over time as interest accrues on the loan, offset by any dividends declared on the share. Further, because the shares sold on a nonrecourse basis are accounted for as options, the note and the shares are not recorded. Rather, compensation cost is recognized over any requisite service period, with an offsetting credit to additional paid-in capital (“APIC”). Periodic principal and interest payments, if any, are treated as deposits. Refundable share right deposits are recorded as a liability until the note is paid off, at which time the deposit balance is transferred to APIC. Nonrefundable deposits are immediately recorded as a credit to APIC as payments are received. Vesting conditions: Vesting, Forfeiture, and Settlement Terms The Participants’ rights to ownership benefits of the shares are subject to the Participants’ achievement of service and performance vesting conditions. Each award agreement contains a condition for service from January 1, 2019 through December 31, 2023 (which coincides with loan maturity date) as well as individually determined performance conditions based on cumulative sales over the service period. Participants must achieve both the service and performance conditions for their shares to fully vest at the end of the loan maturity date, otherwise the share appreciation profits at the end of the vesting period, if any, after principals and accrued interests of the loans are fully repaid to the Group, will be either fully retained or partially retained by the Group. On November 15, 2019, the Board of Directors of the Company approved an exemption of the first-year performance condition for all Participants under the 521 Plan. Under these vesting and profit distribution arrangements, the Group can be required to settle the option or similar instrument by transferring cash, representing a noncontingent cash settlement feature which requires the 521 awards to be liability classified. Option modification In November 2019, the Board of Directors and Compensation Committee approved a modification of the settlement terms of the 521 Plan from cash settlement to net share settlement of vested ADS options. Under the amended award agreement, the Group will settle the vested ADS option with shares of the Group at a value equal to the excess of the settlement date fair value of the ADS over the loan principal plus interest. If the ADS depreciated or have not appreciated sufficiently to repay the loan principal and interest, the outstanding loan balance (if any) shall be otherwise negotiated and determined by the Group and the Participants. The modification result in a change of awards’ classification from liability to equity. Other terms of the options grants remain unchanged. The modified award was accounted for as an equity award going forward from the date of modification with a fair value measured on the modification date on a straight-line basis over the remaining requisite service period. The Group compared the fair value of the options granted immediately before the modification to the fair value of the modified award and there is no change in the fair value at the modification date. Therefore, at the modification date, the Company reclassified the amounts previously recorded as a share-based compensation liability as a component of equity in the form of a credit to additional paid-in capital. At the modification date on November 18, 2019, the Company used the Black-Scholes valuation model in determining the fair value of the options granted, which requires the input of certain assumptions, including the expected life of the stock option, stock price volatility, dividend rate and risk-free interest rate. The assumption used in determining the fair value of the options on the modification date were as follows: Assumptions November 18, Expected dividend yield (Note i) 3.00 % Risk-free interest rate (Note ii) 1.61 % Expected volatility (Note iii) 50.25 % Expected life (Note iv) 4.12 years Share price per ordinary share on valuation date US$ 26.64 (i) Expected dividend yield: The expected dividend yield was estimated by the Company based on its historical dividend policy. (ii) Risk-free interest rate: Risk-free interest rate was estimated based on the 5-year US Government Bond yield as of the valuation date. (iii) Expected volatility: The volatility of the underlying ordinary shares was estimated based on the annualized standard deviation of the continuously compounded rate of return on the daily average adjusted share price of the Group as of the Valuation Date. (iv) Expected life: The expected life was the contractual life of the 521 plan. As of December 31, 2019, the Group had reserved 280,000,000 ordinary shares available to be granted as share-based awards under the 521 Plan. The 521 Plan is generally scheduled to be vested over five years. 150,000,000 ordinary shares were granted on December 31, 2019 and the rest has been granted on January 10, 2019 subsequently. The Group estimates the forfeiture rate for both independent agents and employees to be nil for 2019. For the years ended December 31, 2019, changes in the status of total outstanding options under 521 Plan, was as follows: Number of options Weighted average exercise price in US$ Weighted average remaining contractual life (Years) Aggregate Intrinsic Value RMB Outstanding as of January 1, 2018 — — — — Granted 150,000,000 1.5 5.00 — Exercised — — — — Forfeited — — — — Outstanding as of December 31, 2018 150,000,000 1.5 5.00 — Granted 130,000,000 1.3 5.00 — Exercised — — — — Forfeited — — — — Outstanding as of December 31, 2019 280,000,000 1.4 4.00 — For the year ended December 31, 2018 and 2019, the Company recognized nil |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Treasury Stock [Text Block] | (20) Treasury Stock During the year 2019, a total of 50,223,820 ordinary shares (2,511,191 ADSs) have been repurchased from the open market under the Company’s share buyback program at an average price of approximately US$28.2 per ADS and cancelled during the year. The Company was entitled to repurchase up to US$200,000 by December 31, 2019 under this program, and an aggregate of 2,511,191 ADSs for a total of approximately US$69,525 has been repurchased under the program as of December 31, 2019. During the year 2018, a total of 178,475,480 ordinary shares, comprising 28,475,480 ordinary shares has been repurchased from the open market and 150,000,000 ordinary shares has been purchased from Master Trend, a related party of the Group at the time of the transaction. The shares were repurchased from Master Trend at US$29 per ADS, representing the average closing price of the 30 trading days prior to the Board approval date of June 14, 2018. The Company accounts for repurchased ordinary shares under the par value method and includes such treasury stock as a component of the shareholders’ equity. The ordinary shares subject to the 521 Plan are considered contingently issuable. Refer to Note 9 for details of the 521 Plan. There was no repurchase of ordinary shares by the Group during the years ended December 31, 2017. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Restricted Assets Disclosure [Text Block] | (21) Restricted Net Assets Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. As a result of these PRC laws and regulations, the Group’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets either in the form of dividends, loans or advances. As of December 31, 2018 and 2019, the Company had restricted net assets of RMB1,382,574 and RMB1,410,432 (including nil nil |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | (22) Segment Reporting As of December 31, 2019, the Group operated two segments: (1) the insurance agency segment, which mainly consists of providing agency services for P&C insurance products and life insurance products to individual clients, and (2) the claims adjusting segment, which consists of providing pre-underwriting survey services, claim adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. Operating segments are defined as components of an enterprise about which separate financial information is available and evaluated regularly by the Group’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The following table shows the Group’s operations by business segment for the years ended December 31, 2017, 2018 and 2019. Other includes revenue and expenses that are not allocated to reportable segments and corporate related items. Year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net revenues Agency 3,780,217 3,143,873 3,335,397 479,100 Claims Adjusting 308,256 327,390 370,606 53,234 Total net revenues 4,088,473 3,471,263 3,706,003 532,334 Operating costs and expenses Agency (3,408,499 ) (2,614,593 ) (2,797,651 ) (401,857 ) Claims Adjusting (308,321 ) (316,899 ) (361,474 ) (51,923 ) Other (98,517 ) (114,028 ) (77,515 ) (11,134 ) Total operating costs and expenses (3,815,337 ) (3,045,520 ) (3,236,640 ) (464,914 ) Income (loss) from operations Agency 371,718 529,280 537,746 77,243 Claims Adjusting (65 ) 10,491 9,132 1,311 Other (98,517 ) (114,028 ) (77,515 ) (11,134 ) Income (loss) from operations 273,136 425,743 469,363 67,420 As of December 31, 2018 2019 2019 RMB RMB US$ Segment assets Agency 816,596 1,133,121 162,763 Claims Adjusting 266,077 276,885 39,772 Other 2,783,938 2,030,837 291,711 Total assets 3,866,611 3,440,843 494,246 Substantially all of the Group’s revenues for the three years ended December 31, 2017, 2018 and 2019 were generated from the PRC. A substantial portion of the identifiable assets of the Group is located in the PRC. Accordingly, no geographical segments are presented. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | (23) Subsequent events (i) On March 18, 2020, the Group’s Board of Directors declared a quarterly dividend of US$0.015 per ordinary share, or US$0.30 per ADS for the fourth quarter of 2019. The dividend will be paid to shareholders of record on April 2, 2020. Based on our expectation on operating income for 2020, on March 18, 2020, the Group announced that its Board of Directors has approved the management’s proposal for annual dividend of US$1.0 per ADS, or US$0.05 per ordinary share for the fiscal year of 2020. The dividend will be paid on a quarterly basis, with US$0.25 per ADS, or US$0.0125 per ordinary share, payable in each of the next four quarters. (ii) Along with the outbreak of the recent coronavirus disease 2019 (“COVID-19”) in late January 2020, the Chinese government has implemented various precautionary measures to contain the spread of the COVID-19, such as extending the Chinese New Year Holiday into February 2020, quarantines, travel restrictions, suspending transportation and banning gatherings. Our business operations rely heavily on the efforts of individual sales agents and claims adjustors in a way of face-to-face interactions with the general public or policy holders. Although we have moved all training and marketing activities online to mitigate the impact, we have seen disruption in our sales activities to a certain extent, which is expected to have an adverse effect on our operation results of 2020. Given the pandemic of COVID-19 has the potential to cause significant operational disruptions on China’s macroeconomy and is expected to adversely affect a variety of industries, including the financial markets, the value of the Group’s short term investments are susceptible to the potential adverse impact related to COVID-19. The extent to which COVID-19 will impact the Group’s financial position, results of operations and cash flows will depend on future developments, which are highly uncertain and cannot be reasonably predicted, including, among others, the duration of the outbreak, new information which may emerge concerning the severity of COVID-19 and the actions, especially those taken by governmental authorities, to contain or treat its impact. Accordingly, an estimate of the impact cannot be made at this time. |
Condensed Financial Statements
Condensed Financial Statements of the Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | SCHEDULE 1—CONDENSED FINANCIAL STATEMENTS OF THE COMPANY Statements of Financial Position ( In thousands, except for shares and per share data As of December 31, 2018 2019 2019 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 366,862 32,314 4,642 Short term investments — 36,416 5,231 Other receivables and amounts due from subsidiaries and affiliates 1,119,686 1,378,556 198,017 Total current assets 1,486,548 1,447,286 207,890 Non-current assets: Investment in subsidiaries 2,638,621 2,855,907 410,225 Investment in an affiliate 11,350 10,670 1,533 Total assets 4,136,519 4,313,863 619,648 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Other payables and accrued expenses 1,337,039 1,330,068 191,052 Amounts due to subsidiaries 27,969 785,608 112,846 Non-current liabilities: Refundable share rights deposits (Including refundable share rights deposits of the consolidated VIE of RMB138,328 and RMB266,901 as of December 31, 2018 and 2019, respectively) 138,328 266,901 38,338 Total liabilities 1,503,336 2,382,577 342,236 Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued 1,301,915,084 and 1,252,367,264 shares, of which 1,123,475,604 and 1,073,891,784 shares were outstanding as of December 31, 2018 and 2019, respectively) 9,583 9,235 1,327 Treasury stock (1,156 ) (1,146 ) (165 ) Additional paid-in capital 437,176 393 56 Retained earnings 2,280,870 1,988,233 285,592 Accumulated other comprehensive loss (93,290 ) (65,429 ) (9,398 ) Total equity 2,633,183 1,931,286 277,412 Total liabilities and shareholders’ equity 4,136,519 4,313,863 619,648 Statements of Income and Comprehensive Income (In thousands) Year Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ General and administrative expenses (4,435 ) (6,973 ) (6,480 ) (931 ) Selling expenses — — (281 ) (40 ) Interest income 2,229 10,624 1,767 254 Equity in earnings of subsidiaries and an affiliate 451,434 606,264 193,926 27,856 Net Income attributable to the Company’s shareholders 449,228 609,915 188,932 27,139 Other comprehensive (loss) income: Foreign currency translation adjustments (10,664 ) (10,194 ) 10,178 1,462 Unrealized net gains (loss) on available-for-sale investments (632 ) — 17,231 2,475 Share of other comprehensive gain (loss) of affiliates 1,263 (1,763 ) 452 65 Comprehensive income attributable to the Company’s shareholders 439,195 597,958 216,793 31,141 Statements of Shareholders’ Equity ( In thousands, except for shares) Share Capital Additional Treasury Stock Accumulated Other Number of Share Amounts Paid-in Capital Number of Share Amounts Retained Earnings Comprehensive Loss Subscription Receivables Total RMB RMB RMB RMB RMB RMB RMB Balance as of January 1, 2017 1,165,072,926 8,658 2,301,655 — — 1,330,518 (65,844 ) (288,135 ) 3,286,852 Net income — — — — — 449,228 — — 449,228 Foreign currency translation — — — — — — (27,895 ) 17,231 (10,664 ) Exercise of share options 69,118,158 458 64,488 — — — — — 64,946 Share-based compensation — — — — — — — — — Private placement 66,000,000 455 200,632 — — — — — 201,087 Subscription receipt — — — — — — — 22,187 22,187 Distribution of dividend — — (137,216 ) — — — — — (137,216 ) Unrealized net loss on available-for-sale investments — — — — — — (632 ) — (632 ) Share of other comprehensive loss in affiliates — — — — — — 1,263 — 1,263 Balance as of December 31, 2017 1,300,191,084 9,571 2,429,559 — — 1,779,746 (93,108 ) (248,717 ) 3,877,051 Net income — — — — — 609,915 — — 609,915 Foreign currency translation — — — — — — 1,581 (11,775 ) (10,194 ) Exercise of share options 1,760,000 12 3,274 — — — — — 3,286 Repurchase of ordinary shares from shareholder — — (1,464,163 ) 150,000,000 (960 ) — — — (1,465,123 ) Repurchase of ordinary shares from open market — — (251,024 ) 28,475,480 (196 ) — — — (251,220 ) Subscription receipt — — — — — — — 260,492 260,492 Distribution of dividend — — (280,470 ) — — (108,791 ) — — (389,261 ) Share of other comprehensive income of affiliates — — — — — — (1,763 ) — (1,763 ) Balance as of December 31, 2018 1,301,951,084 9,583 437,176 178,475,480 (1,156 ) 2,280,870 (93,290 ) — 2,633,183 Net income — — — — — 188,932 — — 188,932 Foreign currency translation — — — — — — 10,178 — 10,178 Exercise of share options 640,000 4 — — — — — — 4 Cancellation of ordinary shares (50,223,820 ) (352 ) — (50,223,820 ) 352 — — — — Repurchase of ordinary shares from open market — — (437,176 ) 50,223,820 (342 ) (46,497 ) — — (484,015 ) Share-based compensation — — 393 — — — — — 393 Distribution of dividend — — — — — (435,072 ) — — (435,072 ) Unrealized net gains on available-for-sale investments — — — — — — 17,231 — 17,231 Share of other comprehensive income of affiliates — — — — — — 452 — 452 Balance as of December 31, 2019 1,252,367,264 9,235 393 178,475,480 (1,146 ) 1,988,233 (65,429 ) — 1,931,286 Balance as of December 31, 2019 in US$ 1,252,367,264 1,327 56 178,475,480 (165 ) 285,592 (9,398 ) — 277,412 Statements of Cash Flows ( In thousands Year Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ OPERATING ACTIVITIES Net income 449,228 609,915 188,932 27,139 Adjustments to reconcile net income to net cash used in operating activities: Equity in earnings of subsidiaries and an affiliate (451,434 ) (606,264 ) (193,926 ) (27,856 ) Compensation expenses associated with stock options — — 393 56 Changes in operating assets and liabilities: Other receivables (6,489 ) 10,644 (4 ) (1 ) Other payables (5,693 ) 1,326,440 1,214 174 Net cash (used in) from operating activities (14,388 ) 1,340,735 (3,391 ) (488 ) Cash flows (used in) generated from investing activities Purchase of short-term investments — — (178,371 ) (25,620 ) Changes in investment in subsidiaries and an affiliate 98,399 81,129 (6,623 ) (952 ) Advances to subsidiaries and affiliates (38,609 ) 467,995 498,774 71,644 Proceeds from disposal of short-term investments — — 143,581 20,625 Decrease in advances to subsidiaries and affiliates 174,012 — — — Net cash generated from investing activities 233,802 549,124 457,361 65,697 Cash flows generated from (used in ) financing activities: Proceeds on exercise of stock options 64,946 3,286 4 1 Proceeds of employee and grantee subscriptions 22,187 211,054 111,304 15,988 Dividends paid (137,216 ) (326,725 ) (435,072 ) (62,494 ) Repurchase of ordinary shares from open market — (251,220 ) (484,015 ) (69,525 ) Repurchase of ordinary shares from shareholder — (1,318,611 ) — — Net cash generated used in financing activities (50,083 ) (1,682,216 ) (807,779 ) (116,030 ) Net increase (decrease) in cash and cash equivalents 169,331 207,643 (353,809 ) (50,821 ) Cash and cash equivalents and restricted cash at beginning of year 10,746 169,413 366,862 52,696 Effect of exchange rate changes on cash and cash equivalents (10,664 ) (10,194 ) 19,261 2,767 Cash and cash equivalents and restricted cash at end of year 169,413 366,862 32,314 4,642 Schedule 1 has been provided pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, which require condensed financial statements as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries (including variable interest entities) together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. As of December 31, 2019, RMB1,410,432 of the restricted capital and reserves are not available for distribution, and as such, the condensed financial statements of the Company have been presented for the years ended December 31, 2017, 2018 and 2019 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | (a) Basis of Presentation and Consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company, all its subsidiaries and those VIEs of which the Company is the primary beneficiary from the dates they were acquired or incorporated. All intercompany balances and transactions have been eliminated in consolidation. In addition, the Group consolidates VIEs of which it is deemed to be the primary beneficiary and absorbs all of the expected losses and residual returns of the entity. See Note 9 for detail. |
Use of Estimates | (b) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management of the Group to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. The Company’s management base their estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements included estimates of allowance for doubtful receivables, estimates made in assumptions related to the valuation of the convertible loan receivable, estimates associated with equity-method investment impairment assessments. Actual results could differ from those estimates. |
Cash and Cash Equivalents and Restricted Cash | (c) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash, and have insignificant risk of changes in value related to changes in interest rates. In its capacity as an insurance agent, the Group collects premiums from certain insureds and remits the premiums to the appropriate insurance companies. Accordingly, as reported in the consolidated statements of financial position, “premiums” are receivables from the insureds of RMB3,823 and RMB4,646 as of December 31, 2018 and 2019, respectively. Unremitted net insurance premiums are held in a fiduciary capacity until disbursed by the Group. The Group invests these unremitted funds only in cash accounts held for a short term, and reports such amounts as restricted cash in the consolidated statements of financial position. Also, restricted cash balance includes guarantee deposits required by China Banking and Insurance Regulatory Commission (“CBIRC”) in order to protect insurance premium appropriation by insurance agency and the entrustment deposit received from the members of eHuzhu, an online mutual aid platform operated by the Group. The balance for guarantee and entrustment deposits were RMB71,520 and RMB91,306 as of December 31, 2018 and 2019, respectively. |
Short Term Investments | (d) Short Term Investments Short term investments are mainly available-for-sale investments in debt securities that do not have a quoted market price in an active market. Available-for-sale investments are carried at fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income or loss. The Group benchmarks the values of its other investments against fair values of comparable investments and reference to product valuation reports as of the balance sheet date, and categorizes all fair value measures of short term investments as level 2 of the fair value hierarchy. The short term investments balance were RMB1,554,060 and RMB1,612,351 as of December 31, 2018 and 2019, respectively. No impairment loss on short term investments was identified for each of the years ended December 31, 2017, 2018 and 2019. |
Accounts Receivable and Insurance Premium Receivables | (e) Accounts Receivable and Insurance Premium Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable represent fees receivable on agency and claims adjusting services primarily from insurance companies. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The allowance for doubtful accounts is the Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable balance. The Group determines the allowance based on historical write-off experience. The Group reviews its allowance for doubtful accounts regularly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Accounts receivable, net is analyzed as follows: As of December 31, 2018 2019 RMB RMB Accounts receivable 529,715 702,666 Allowance for doubtful accounts (21,241 ) (20,495 ) Accounts receivable, net 508,474 682,171 The following table summarizes the movement of the Group’s allowance for doubtful accounts for accounts receivables: 2017 2018 2019 RMB RMB RMB Balance at the beginning of the year 16,792 20,198 21,241 Provision for doubtful accounts 14,052 6,791 6,533 Write-offs (10,646 ) (5,748 ) (7,279 ) Balance at the end of the year 20,198 21,241 20,495 Insurance premium receivables consist of insurance premiums to be collected from the insured, and are recorded at the invoiced amount and do not bear interest. Amounts collected on insurance premium receivables are included in net cash provided by operating activities in the consolidated statements of cash flows. |
Property, Plant and Equipment | (f) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives, taking into account residual value: Estimated useful life Estimated residual Building 20-36 0 % Office equipment, furniture and fixtures 3-5 0%-3 % Motor vehicles 5-10 0%-3 % Leasehold improvements 5 0 % The depreciation methods and estimated useful lives are reviewed regularly. The following table summarizes the depreciation expense recognized in the consolidated statements of income and comprehensive income: 2017 2018 2019 RMB RMB RMB Operating costs 43 232 216 Selling expenses 2,775 4,769 7,144 General and administrative expenses 11,281 5,832 8,920 Depreciation expense 14,099 10,833 16,280 |
Goodwill and Other Intangible Assets | (g) Goodwill and Other Intangible Assets Goodwill and amortization of intangible assets Goodwill represents the excess of costs over fair value of net assets of businesses acquired in a business combination. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date or more frequently if certain indicators arise. The Group operated in two reporting units for the year ended December 31, 2019. The goodwill impairment review is a two-step process. Step 1 consists of a comparison of the fair value of a reporting unit with its carrying amount. An impairment loss may be recognized if the review indicates that the carrying value of a reporting unit exceeds its fair value. Estimates of fair value are primarily determined by using discounted cash flows. If the carrying amount of a reporting unit exceeds its fair value, step 2 requires the fair value of the reporting unit to be allocated to the underlying assets and liabilities of that reporting unit, resulting in an implied fair value of goodwill. If the carrying amount of the goodwill of the reporting unit exceeds the implied fair value, an impairment charge is recorded equal to the excess of the carrying amount over the implied fair value. The impairment review is highly judgmental and involves the use of significant estimates and assumptions. These estimates and assumptions have a significant impact on the amount of any impairment charge recorded. Discounted cash flow methods are dependent upon assumptions of future sales trends, market conditions and cash flows of each reporting unit over several years. Actual cash flows in the future may differ significantly from those previously forecasted. Other significant assumptions include growth rates and the discount rate applicable to future cash flows. In 2018 and 2019, management compared the carrying value of each reporting unit, inclusive of assigned goodwill, to its respective fair value which is the step one of the two-step impairment test. The fair value of all reporting units was estimated by using the income approach. Based on this quantitative test, it was determined that the fair value of each reporting unit tested exceeded its carrying amount and, therefore, step 2 of the two-step goodwill impairment test was unnecessary. The management concluded that goodwill was not impaired as of December 31, 2018 and 2019. Identifiable intangibles assets are required to be determined separately from goodwill based on their fair values. In particular, an intangible asset acquired in a business combination should be recognized as an asset separate from goodwill if it satisfies either the “contractual-legal” or “separability” criterion. Intangible assets with a finite economic life are carried at cost less accumulated amortization. Amortization for identifiable intangible assets categorized as customer relationships are computed using the accelerated method, while amortization for other identifiable intangible assets are computed using the straight-line method over the intangible assets’ economic lives. Intangible assets with indefinite economic lives are not amortized but carried at cost less any subsequent accumulated impairment losses. If an intangible asset that is not being amortized is subsequently determined to have a finite economic life, it will be tested for impairment and then amortized prospectively over its estimated remaining economic life and accounted for in the same manner as other intangible assets that are subject to amortization. Intangible assets with indefinite economic lives are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be impaired. Separately identifiable intangible assets consist of brand names, trade names, customer relationships, non-compete agreements, agency agreement and licenses, and software and systems. The intangible assets, net consisted of trade names with cost of RMB8,898. The trade names have an estimated useful life of 9.4 to 10 years and accumulated amortization of RMB7,634 and RMB8,576 as of December 31, 2018 and 2019. Aggregate amortization expenses for intangible assets were RMB33,177, RMB15,946 and RMB942 for the years ended December 31, 2017, 2018 and 2019, respectively. Impairment of intangible assets with definite lives The Group evaluates the recoverability of identifiable intangible assets with determinable useful lives whenever events or changes in circumstances indicate that these assets’ carrying amounts may not be recoverable. The Group measures the carrying amount of identifiable intangible assets with determinable useful lives against the estimated undiscounted future cash flows associated with each asset. Impairment exists when the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the years ended December 31, 2017, 2018 and 2019, the Group recognized no impairment losses on identifiable intangible assets with determinable useful lives. Impairment of indefinite-lived intangible assets An intangible asset that is not subject to amortization is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Such impairment test is to compare the fair values of assets with their carrying amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates or market price. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. Market prices are based on potential purchase quote from a third party, if any. During the years ended December 31, 2017, 2018 and 2019, the Group recognized no impairment losses on its indefinite-lived intangible assets. The estimated amortization expenses for the next five years are: RMB322 in 2020 and nil in years after 2020. |
Other Receivables and Other Current Assets | (h) Other Receivables and Other Current Assets Other receivables and other current assets mainly consist of loans and amounts due from third parties, advances, deposits, interest receivables and prepaid expenses. See Note 4 for details. |
Investment in Affiliates | (i) Investment in Affiliates The Group uses the equity method of accounting for investments in which the Group has the ability to exercise significant influence, but does not have a controlling interest. The Group continually reviews its investment in equity investees to determine whether a decline in fair value to an amount below the carrying value is other-than temporary. The primary factors the Group considers in its determination are the duration and severity of the decline in fair value; the financial condition, operating performance and the prospects of the equity investee; and other company specific information such as the stock price of the investee and its corresponding volatility, if publically traded, the Group’s intent and ability to hold the investment until recovery, and changes in the macro-economic, competitive and operational environment of the investee. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. |
Other Non-current Assets | (j) Other Non-current Assets Other non-current assets mainly represent long-term equity investments accounted for under the measurement alternative method and the convertible loan receivable. Equity securities without readily determinable fair value The Group has long-term investments in equity security of certain privately held companies which the Group exerts no significant influence or a controlling interest. As a result of adoption of “ Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earning trends and other company specific information. The Group assessed that there has been no impairment or qualifying observable price changes related to its investments in privately held companies in the years ended December 31, 2018 and 2019. Investments in privately held companies are reported in other non-current assets. Convertible loan receivable The Group has elected the fair value option for the convertible loan receivable, which permits the irrevocable fair value option election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The convertible loan receivable accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded in the consolidated income statements. See Note 3(e) for details. |
Impairment of Long-Lived Assets | (k) Impairment of Long-Lived Assets Property, plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying value of the asset exceeds the fair value of the asset. |
Insurance Premium Payables | (l) Insurance Premium Payables Insurance premium payables are insurance premiums collected on behalf of insurance companies but not yet remitted as of the balance sheet dates. |
Subscription Receivables | (m) Subscription Receivables The Group entered into share purchase agreements with companies established on behalf of its employees (the “Employee Company”) for the issuance of 100,000,000 ordinary shares at US$0.27 per ordinary share and 50,000,000 ordinary shares at US$0.29 per ordinary share in 2014. The issue prices are the average closing prices for the 20 trading days prior to the board approval dates of such subscriptions. The sale of shares to the Employee Company was completed on December 17, 2014. In order to facilitate the purchase of shares by employees as described above, the Group has granted a loan to the Employee Company. The loan bears interest at a rate of 3.0% per annum and is repayable upon the sale of the shares by employees, termination of employment or within two years, whichever comes first. The interest rate was determined with reference to fair market prices and therefore no interest-related compensation expense was recorded. Upon the expiry of the loan agreement on December 17, 2016, the repayment maturity of the loan was further extended to June 2018 and the loan continues to bear interest at a rate of 3.0% per annum. According to FASB ASC 505-10-45, the loan is recorded as a separate line of deduction from equity in the Group’s consolidated statements of financial position. Interest income accruing from the loan is recognized as non-operating income. During the year 2018, the principal in the amount of RMB260,492 and interests in the amount of RMB29,224 had been settled of while RMB49,438 of principal and RMB5,557 of interest were offset by the Company’s dividend distributions. As of December 31, 2018, the principal and interest of the loans have been fully collected. |
Treasury shares | (n) Treasury shares Treasury shares represent ordinary shares repurchased by the Group that are no longer outstanding and are held by the Group. The repurchased ordinary shares are recorded whereby the total par value of shares acquired is recorded as treasury stock and the difference between the par value and the amount of cash paid is recorded in additional paid-in capital. If additional paid-in capital is not available or is not sufficient, the remaining amount is to reduce retained earnings. See Note 20 for details. |
Income Taxes | (o) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carryforwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Group presents an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the statements of financial position as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the Group to use, and the Group does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit is presented in the statements of financial position as a liability. |
Share-based Compensation | (p) Share-based Compensation All forms of share-based payments to employees and nonemployees, including stock options and stock purchase plans, are treated the same as any other form of compensation by recognizing the related cost in the consolidated statements of income and comprehensive income. The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the amount of compensation cost recognized at any date must at least equal to the portion of the grant-date value of the award that is vested at that date. For awards with both service and performance conditions, if each tranche has an independent performance condition for a specified period of service, the Group recognizes the compensation cost of each tranche as a separate award on a straight-line basis; if each tranche has performance conditions that are dependent of activities that occur in the prior service periods, the Group recognizes the compensation cost on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. No compensation cost is recognized for instruments that employees and nonemployees forfeit because a service condition or a performance condition is not satisfied. Employee share-based compensation Compensation cost related to employee stock options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. If an award requires satisfaction of one or more performance or service conditions (or any combination thereof), compensation cost is recognized if the requisite service is rendered, while no compensation cost is recognized if the requisite service is not rendered. Nonemployee share-based compensation The Group early adopted the ASU 2018-07, “Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” Classification of award Options or similar instruments on shares shall be classified as liabilities instead of equity if either of the following conditions is met: ● The underlying shares are classified as liabilities; ● The Group can be required under any circumstances to settle the option or similar instrument by transferring cash or other assets. The Group measures a liability award under a share-based payment arrangement based on the award’s fair value remeasured at each reporting date until the date of settlement. The corresponding credit is recorded as a share-based liability. Compensation cost for each period until settlement shall be based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered at the reporting date) in the fair value of the instrument for each reporting date. The Group measures an equity award based on the awards’ fair value on grant date and recognizes the compensation cost over the vesting periods, with the corresponding credit recorded as paid-in capital. Modification of an Award A change in any of the terms or conditions of the awards is accounted for as a modification of the award. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards, the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. Share-based compensation expenses of nil nil |
Employee Benefit Plans | (q) Employee Benefit Plans As stipulated by the regulations of the PRC, the Group’s subsidiaries in the PRC participate in various defined contribution plans organized by municipal and provincial governments for its employees. The Group is required to make contributions to these plans at a percentage of the salaries, bonuses and certain allowances of the employees. Under these plans, certain pension, medical and other welfare benefits are provided to employees. The Group has no other material obligation for the payment of employee benefits associated with these plans other than the annual contributions described above. The contributions are charged to the consolidated statements of income and comprehensive income as they become payable in accordance with the rules of the above mentioned defined contribution plans. |
Revenue Recognition | (r) Revenue Recognition On January 1, 2018, the Group adopted ASC 606 “Revenue from Contracts with Customers” (“ASC 606”) and applied the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and reported under the accounting standards in effect for the periods presented. The Group’s revenue from contracts with insurance companies is derived principally from the provision of agency and claims adjusting services. According to ASC 606, revenue is recognized at a point in time upon the effective date of the insurance policy, as no performance obligation exists after the insurance policy was signed. If there are other services within the contract, the Company estimates the stand-alone selling price for each separate performance obligation, and the corresponding apportioned revenue is recognized over the period of time in which the customer receives the service, and as the performance obligations are fulfilled and the Company is entitled to that portion of revenue using the output method for the services. In situations where multiple performance obligations exist within a contract, the use of estimates is required to allocate the transaction price on a relative stand-alone selling price basis to each separate performance obligation. The Group determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer; ● Identification of the performance obligation in the contract; ● Determination of the transaction price, including the constraint on variable consideration; ● Allocation of the transaction price to the performance obligation in the contracts; and ● Recognition of revenue when (or as) the Group satisfies a performance obligation. The Group disaggregates its revenue from different types of service contracts with customers by principal service categories, as the Group believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See Note 22 for detailed disaggregated revenue information that is disclosed for each reportable segment. The following is a description of the accounting policy for the principal revenue streams of the Group. Insurance agency services revenue For Insurance agency services, performance obligations are considered met and revenue is recognized when the services are rendered and completed, at the time an insurance policy becomes effective, that is, when the signed insurance policy is in place and the premium is collected from the insured. The Group has met all the criteria of revenue recognition when the premiums are collected by the Group or the respective insurance companies and not before, because collectability is not ensured until receipt of the premium. Accordingly, the Group does not accrue any commission and fees prior to the receipt of the related premiums. No allowance for cancellation has been recognized for agency as the management of the Group estimates, based on its past experience that the cancellation of policies rarely occurs. Any subsequent commission adjustments in connection with policy cancellations, which have been de minims to date, are recognized upon notification from the insurance carriers. Actual commission and fee adjustments in connection with the cancellation of policies were 0.2%, 0.1% and 0.1% of the total commission and fee revenues during years ended December 31, 2017, 2018 and 2019, respectively. For life insurance agency, the Group may receive a performance bonus from insurance companies as agreed and per contract provisions. Once an agency achieves its performance obligation, typically a certain sales volume, the bonus will become due. The bonus amount is computed based on the insurance premium amount multiplied by an agreed-upon percentage. Performance bonus represent a form of variable consideration associated with certain sales volume, for which the Group earn commissions. The contingent commissions are recorded when a performance obligation is being achieved. The Group estimates the amount of consideration with a constraint applied that will be received in the coming year such that a significant reversal of revenue is not probable and accrues performance bonus relative to the recognition of the corresponding core commissions. For the year ended December 31, 2018 and 2019, the Group recognized contingent performance bonus of RMB23,166 and RMB58,124, respectively. Insurance claims adjusting services revenue For Insurance claims adjusting services, performance obligations are considered met and revenue is recognized when the services are rendered and completed, at the time loss adjusting reports are confirmed being received by insurance companies. The Group does not accrue any service fee before the receipt of an insurance company’s acknowledgement of receiving the adjusting reports. Any subsequent adjustments in connection with discounts which have been de minims to date are recognized in revenue upon notification from the insurance companies. Contract balances The Group’s contract balances include accounts receivable and contract asset. The balances of accounts receivable as of December 31, 2018 and 2019 are all derived from contracts with customers. See Note 2(e) for details. The timing between the recognition of revenue for effective insurance policy and the receipt of payment is not significant. The estimated accounts receivable in relation to cancellation of insurance policies within hesitation period is a contract asset included in accounts receivable. The balances of contract asset are RMB84,907 and RMB131,063 as of December 31, 2018 and December 31, 2019, respectively. The Group has no advance from customers in advance of revenue recognition, or contract liability and, therefore, none of revenue recognized in the current period that was previously recognized as a contract liability. Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses in the consolidated statements of operations and comprehensive income, as the amortization period is less than one year and the Group has elected the practical expedient included in ASC 606. The Group has applied the optional exemption provided by ASC 606 to not disclose the value of remaining performance obligations not yet satisfied as of period end for contracts with original expected duration of one year or less. Value-Added Tax and Surcharges The Group presents revenue net of sales and value-added taxes incurred. The sales taxes amounted to RMB25,239, RMB21,508 and RMB21,916 for the years ended December 31, 2017, 2018 and 2019, respectively. The State Administration of Taxation and Ministry of Finance jointly issued a Notice on Preparing for the Full Implementation of the VAT Reform (Cai Shui [2016] No. 36). Accordingly, the Group started to pay value-added tax instead of business tax from May 1, 2016. Total value-added taxes paid by the Group during the years ended December 31, 2017, 2018 and 2019 amounted to RMB157,607, RMB179,317 and RMB197,067 respectively. |
Fair Value of Financial Instruments | (s) Fair Value of Financial Instruments Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of the Group’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, insurance premium receivables and payables, other receivables, accounts payable and other payables, approximate their fair values due to the short-term nature of these instruments. Measured at fair value on a recurring basis As of December 31, 2018 and 2019, information about inputs into the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows. Fair Value Measurements at Reporting Description As of Quoted Prices Significant Significant RMB RMB RMB RMB Short-term investments - debt security 1,554,060 — 1,554,060 — Fair Value Measurements at Reporting Description As of Quoted Prices Significant Significant RMB RMB RMB RMB Short-term investments - debt security 1,612,351 — 1,612,351 — The majority of debt security consists of investments in trust products and asset management plans that normally pay a prospective fixed rate of return. These investments are recorded at fair values on a recurring basis. The Group measured these investments at fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income or loss, at the balance sheet date. It is classified as Level 2 of the fair value hierarchy since fair value measurement at reporting date is benchmarked against fair value of comparable investments. Measured at fair value on a non-recurring basis The Group measures certain assets, including equity securities without readily determinable fair values, equity method investments and intangible assets, at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments and intangible assets are determined based on valuation techniques using the best information available, and may include management judgments, future performance projections, etc. An impairment charge to these investments is recorded when the cost of the investment exceeds its fair value and this condition is determined to be other-than-temporary. Impairment charge to the intangible assets is recorded when their carrying amounts may not be recoverable. On January 1, 2018, the Group adopted ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” Goodwill (Note 6) and intangible assets (Note 2(g)) with indefinite lives are measured at fair value on a nonrecurring basis, and they are recorded at fair value only when impairment is recognized by applying unobservable inputs such as forecasted financial performance of the acquired business, discount rate, etc. to the discounted cash flow valuation methodology that are significant to the measurement of the fair value of these assets (Level 3). Investments in affiliates (Note 7) are measured at fair value on a nonrecurring basis, and they are recorded at fair value only when there is other-than-temporary-impairment. The fair value of investment in an affiliate that is publicly listed is determined based on the market value of its share (Level 1) on the date such impairment is recorded. |
Foreign Currencies | (t) Foreign Currencies The functional currency of the Company is the United States dollar (“USD”). Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income or loss in the consolidated statements of income and comprehensive income. The Group has chosen the Renminbi (“RMB”) as their reporting currency. The functional currency of most of the Company’s subsidiaries and VIEs is RMB. Transactions in other currencies are recorded in RMB at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into RMB at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the consolidated statements of income and comprehensive income. |
Foreign Currency Risk | (u) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and international economic and political developments that affect supply and demand in the China Foreign Exchange Trading System market of cash and cash equivalents and restricted cash. The Group had aggregate amounts of RMB216,457 and RMB220,895 of cash and cash equivalents and restricted cash denominated in RMB as of December 31, 2018 and 2019, respectively. |
Translation into USD | (v) Translation into USD The consolidated financial statements of the Group are stated in RMB. Translations of amounts from RMB into USD are solely for the convenience of the readers in the United States and were calculated at the rate of US$1.00 = RMB6.9618, representing the noon buying rate in the City of New York for cable transfers of RMB on December 31, 2019, the last business day in fiscal year 2019, as set forth in H.10 statistical release of the Federal Reserve Bank of New York. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into USD at such rate. |
Discontinued Operations | (w) Discontinued Operations Under ASC 205-20 “Presentation of Financial Statements - Discontinued Operation” In November 2017, the Group completed the sale of its brokerage business. Please see Note (3) for more information. The Group’s results of operations related to discontinued operations have been restated as discontinued operations for the year ended December 31, 2017. |
Segment Reporting | (x) Segment Reporting As of December 31, 2019, the Group operated two segments: (1) the insurance agency segment, which mainly consists of providing agency services for P&C insurance products and life insurance products to individual clients, and (2) the claims adjusting segment, which consists of providing pre-underwriting survey services, claim adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. Details of operating segments are further described in Note 22. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the Group’s chief operating decision maker in deciding how to allocate resources and in assessing performance. Substantially all revenues of the Group are derived in the PRC and all long-lived assets are located in the PRC. |
Earnings per Share (“EPS”) or ADS | (y) Earnings per Share (“EPS”) or ADS Basic EPS is calculated by dividing the net income available to common shareholders by the weighted average number of ordinary shares /ADS outstanding during the year. Diluted EPS is calculated by using the weighted average number of ordinary shares /ADS outstanding adjusted to include the potentially dilutive effect of outstanding share-based awards, unless their inclusion in the calculation is anti-dilutive. The contingently issuable shares /ADS related to the 521 Plan (see Note 19(b) for details), are subject to fulfillment of the performance conditions as stipulated under the 521 Plan. Therefore, these shares are excluded from basic earnings per share until the shares are fully vested upon the achievement of performance conditions under the 521 Plan by the Participants. |
Advertising Costs | (z) Advertising Costs Advertising costs are expensed as incurred. Advertising costs amounted to RMB35,741, RMB34,663 and RMB44,387 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Leases | (aa) Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The Group leases office space, vehicles and certain equipment under operating leases for terms ranging from short term (under 12 months) to 7 years. The Group does not have options to extend or terminate leases, as the renewal or termination of relevant lease is on negotiation basis. As a lessee, the Group does not have any financing leases and none of the leases contain material residual value guarantees or material restrictive covenants. The Group’s office space leases typically have initial lease terms of 2 to 7 years, and vehicles and equipment leases typically have an initial term of 12 months or less. The Group’s office space leases include fixed rental payments. The lease payments for the Group’s office space leases do not consist of variable lease payments that depend on an index or a rate. The Group determines whether a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Group has the right to control the use of the identified asset. At the commencement of each lease, management determines its classification as an operating or finance lease. For leases that qualify as operating leases, the Group recognizes a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term in the consolidated statements of financial position at commencement date. As all of the leases do not have implicit rates available, the Group uses incremental borrowing rates based on the information available at lease commencement date in determining the present value of future payments. The incremental borrowing rates are estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased assets are located. Upon adoption of ASU 2016-02 on January 1, 2019, the Group elected to use the remaining lease term as of January 1, 2019 in the estimation of the applicable discount for rate for leases that were in place at adoption. For the initial measurement of the lease liabilities for leases commencing after January 1, 2019, the Group uses the discount rate as of the commencing date of the lease, incorporating the entire lease term. Current maturities and long-term portions of operating lease liabilities are classified as current operating lease liability and non-current operating lease liability, respectively, in the consolidated statements of financial position. As a result of the adoption, the Group recognized approximately RMB181,576 of ROU assets recorded in right-of-use assets and a lease liability of approximately RMB181,457 in operating lease liability in the consolidated statements of financial position as of January 1, 2019. The adoption had no material impact on the Group’s consolidated statements of income and consolidated statements of cash flows for the year ended December 31, 2019. The ROU asset is measured at the amount of the lease liabilities with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred and lease incentives. For office space leases beginning in 2019 and later, the Group identifies the lease and non-lease components (e.g., common-area maintenance costs) and accounts for non-lease components separately from lease component. The Group’s office space lease contracts have only one separate lease component and have no non-components (e.g., property tax or insurance). Most of the office space lease contracts have no non-lease components. For the office space lease contracts include non-lease components, the fixed lease payment is typically itemized in the office space lease contract for separate lease component and non-lease component. Therefore, the Group does not allocate the consideration in the contract to the separate lease component and the non-lease component. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Group has made an accounting policy election to exempt leases with an initial term of 12 months or less without a purchase option that is likely to be exercised from being recognized on the balance sheet. Payments related to those leases continue to be recognized in the consolidated statement of income and comprehensive income on a straight-line basis over the lease term. In addition, we do not have any related-party leases or sublease transactions. Please see Note 8. |
Accumulated Other Comprehensive Income | (ab) Accumulated Other Comprehensive Income The Group presents comprehensive income in the consolidated statements of income and comprehensive income with net income in a continuous statement. Accumulated other comprehensive income mainly represents foreign currency translation adjustments, changes in fair value of short term investments and share of other comprehensive income of the affiliates for the period. |
Recently Issued Accounting Standards | (ac) Recently Issued Accounting Standards New accounting standards not yet adopted that could affect the Group’s consolidated financial statements in the future are summarized as follows: In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | As of December 31, 2018 2019 RMB RMB Accounts receivable 529,715 702,666 Allowance for doubtful accounts (21,241 ) (20,495 ) Accounts receivable, net 508,474 682,171 |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | 2017 2018 2019 RMB RMB RMB Balance at the beginning of the year 16,792 20,198 21,241 Provision for doubtful accounts 14,052 6,791 6,533 Write-offs (10,646 ) (5,748 ) (7,279 ) Balance at the end of the year 20,198 21,241 20,495 |
Schedule of estimated useful lives of property, plant and equipment | Estimated useful life Estimated residual Building 20-36 0 % Office equipment, furniture and fixtures 3-5 0%-3 % Motor vehicles 5-10 0%-3 % Leasehold improvements 5 0 % |
Schedule of depreciation methods and estimated useful lives [Table Text Block] | 2017 2018 2019 RMB RMB RMB Operating costs 43 232 216 Selling expenses 2,775 4,769 7,144 General and administrative expenses 11,281 5,832 8,920 Depreciation expense 14,099 10,833 16,280 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Description As of Quoted Prices Significant Significant RMB RMB RMB RMB Short-term investments - debt security 1,554,060 — 1,554,060 — Fair Value Measurements at Reporting Description As of Quoted Prices Significant Significant RMB RMB RMB RMB Short-term investments - debt security 1,612,351 — 1,612,351 — |
Acquisitions, Disposals and R_2
Acquisitions, Disposals and Reorganization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Fair Value Option, Disclosures [Table Text Block] | Assumptions December 31, October 10, Expected dividend yield (Note i) 0.00 % 0.00 % Risk-free interest rate (Note ii) 2.48 % 1.91 % Expected volatility (Note iii) 58.20 % 47.19 % Expected life (Note iv) 1.8 years 0.03 years Share price per ordinary share on valuation date RMB1.00 RMB0.36 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Year ended RMB Results of discontinued operations: Total net revenues 172,993 Total operating costs (163,079 ) Selling expenses (190 ) General and administrative expenses (3,380 ) Other income, net 40 Loss on disposal of discontinued operations (904 ) Income from discontinued operations before income taxes 5,480 Income taxes expense — Net income from discontinued operations, net of tax 5,480 Year ended RMB Cash flow from discontinued operations: Net cash generated from (used in) operating activities* 8,992 Net cash used in investing activities — Net cash generated from financing activities — Net cash increase (decrease) in cash and, cash equivalents, and restricted cash 8,992 Cash and cash equivalents and restricted cash at beginning of year 5,031 Cash and cash equivalents, and restricted cash at the disposal date 14,023 Cash and cash equivalents and restricted cash at end of year — |
Other Receivables, Net (Tables)
Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of other receivables | As of December 31, 2018 2019 RMB RMB Advances to staff (i) 10,036 9,578 Advances to entrepreneurial agents (ii) 1,362 3,523 Advances to a third party channel vendor (iii) 8,400 13,575 Rental deposits 12,580 14,333 Amount due from a third party (iv) 19,463 6,830 Amount due from payment platform 7,082 9,926 Other (v) 27,227 3,805 86,150 61,570 (i) This represented advances to staff of the Group for daily business operations which are unsecured, interest-free and repayable on demand. (ii) This represented advances to entrepreneurial agents who provide services to the Group. The advances are used by agents to develop business. The advances were unsecured, interest-free and repayable on demand. (iii) This represented advances to a third-party channel vendor, which are unsecured, interest-free and repayable on demand. (iv) This represented the residual balance of uncollected cash consideration related to the disposal of P&C business. In 2019, the Group collected the full amount of the cash consideration. The balance of RMB6,830 as of December 31, 2019 represents the amount receivable from Cheche as a result of conversion of loan receivable, which is due in October 2020. See Note 3(e) for details. (v) This represented other miscellaneous receivables, receivable related to disposal of a subsidiary, advance payments to designated governmental authorities on behalf of our employees regarding statutory employee benefits and other deposits, etc. In August 2017, the Group disposed of the equity interests in Baosikang Information Technology (shenzhen) Co., Ltd. to a third party for a total cash consideration of RMB7,557 (US$1,099), of which nil and RMB7,557 was collected as of December 31, 2018 and 2019, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | As of December 31, 2018 2019 RMB RMB Building 12,317 12,317 Office equipment, furniture and fixtures 129,848 131,878 Motor vehicles 10,292 11,228 Leasehold improvements 14,284 24,386 Total 166,741 179,809 Less: Accumulated depreciation (128,807 ) (139,003 ) Property, plant and equipment, net 37,934 40,806 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Impaired Intangible Assets [Table Text Block] | Agency segment Claims Adjusting segment Total RMB RMB RMB Gross as of December 31, 2018 and 2019 131,977 21,137 153,114 Accumulated impairment loss as of December 31, 2018 and 2019 (22,108 ) (21,137 ) (43,245 ) Net as of December 31, 2018 109,869 — 109,869 Net as of December 31, 2019 109,869 — 109,869 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | As of December 31, 2018 2019 RMB RMB Teamhead Automobile 119 204 Puyi. 11,350 10,670 CNFinance 576,048 352,540 Total 587,517 363,414 |
Schedule of statements of financial position [Table Text Block] | As of December 31, 2018 2019 RMB RMB Statements of Financial Position Total assets 19,630,092 13,490,270 Total liabilities 16,339,829 9,510,013 |
Schedule of results of operation [Table Text Block] | Year Ended December 31, 2017 2018 2019 Results of operation RMB RMB RMB Income from operations 804,163 1,210,690 689,259 Net profit 529,524 907,724 520,539 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Lease, Cost [Table Text Block] | As of RMB Operating lease ROU assets 190,437 Current operating lease liability 79,986 Non-current operating lease liability 103,252 Total operating leased liabilities 183,238 |
Schedule of weighted average lease term and weighted average discount rate | As of RMB Weighted average lease term: Operating leases 2.99 Weighted average discount rate: Operating leases 4.78 % |
Schedule of lease expenses | As of RMB Operating lease cost 77,406 Short term lease cost 15,148 Total 92,554 |
Schedule of supplemental cash flow information related to leases | As of RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 74,265 Supplemental noncash information: Right-of-use assets obtained in exchange for lease obligations 78,344 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Minimum Lease Payment RMB Year ending December 31: 2020 87,333 2021 57,638 2022 32,358 2023 17,458 2024 7,270 Thereafter 2,473 Total remaining undiscounted lease payments 204,530 Less: Interest (21,292 ) Total present value of lease liabilities 183,238 Less: Current operating lease liability (79,986 ) Non-current operating lease liability 103,252 |
Variable Interest Entities (V_2
Variable Interest Entities (VIE) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | As of December 31, 2018 2019 RMB RMB Total assets — — Total liabilities 146,512 266,901 |
Other Payables and Accrued Ex_2
Other Payables and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | As of December 31, 2018 2019 RMB RMB Business and other tax payables 70,237 72,998 Refundable deposits from employees and agents 26,790 23,478 Refundable share rights deposits (Note 9(b)) 8,184 — Professional fees 17,105 13,958 Accrued expenses to third parties 42,324 22,610 Payables for addition of office equipment, furniture and fixtures 8,618 — Contributions from members of eHuzhu mutual aid program 62,459 76,765 Others 19,107 10,481 254,824 220,290 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | RMB Balance as of January 1, 2017 72,778 Change in unrecognized tax benefits — Gross increase in tax positions (2,428 ) Balance as of December 31, 2017 70,350 Change in unrecognized tax benefits — Gross increase in tax positions — Balance as of December 31, 2018 70,350 Change in unrecognized tax benefits — Gross decrease in tax positions — Balance as of December 31, 2019 70,350 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2017 2018 2019 RMB RMB RMB Current tax expense 158,291 243,330 139,549 Deferred tax (income) expense 9,512 (18,744 ) 4,267 Income tax expense 167,803 224,586 143,816 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of December 31, 2018 2019 RMB RMB Non-current deferred tax assets: Operating loss carryforward 35,686 40,498 Intangible assets, net 6,129 5,311 Less: valuation allowances (32,495 ) (38,482 ) Total 9,320 7,327 Non-current deferred tax liabilities: Intangible assets, net 122 — Dividend withholding taxes 5,502 7,898 Total 5,624 7,898 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2017 2018 2019 RMB RMB RMB Income from continuing operations before income taxes, share of income of affiliates and discontinued operations 505,095 667,213 560,925 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 126,274 166,803 140,231 Expenses not deductible for tax purposes: Entertainment 1,411 1,358 2,516 Effect of tax holidays on concessionary rates granted to PRC subsidiaries (826 ) (8,307 ) (36,527 ) Other 19,689 1,079 730 Tax exemption and tax relief: Change in valuation allowance 578 6,583 5,987 Uncertain tax provisions (2,428 ) — — Deferred income tax for dividend distribution 16,800 53,702 49,267 Other 6,305 3,368 (18,388 ) Income tax expense 167,803 224,586 143,816 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2017 2018 2019 RMB RMB RMB Basic: Net income from continuing operations 446,236 617,095 192,554 Net income from discontinued operations 5,480 — — Net income 451,716 617,095 192,554 Less: Net income attributable to the noncontrolling interests 2,488 7,180 3,622 Net income attributable to the Company’s shareholders 449,228 609,915 188,932 Weighted average number of ordinary shares outstanding 1,231,698,725 1,239,264,464 1,092,601,338 Basic net income from continuing operations per ordinary share 0.36 0.49 0.17 Basic net income from discontinued operations per ordinary share 0.00 0.00 0.00 Basic net income per ordinary share 0.36 0.49 0.17 Basic net income from continuing operations per ADS 7.20 9.84 3.46 Basic net income from discontinued operations per ADS 0.09 0.00 0.00 Basic net income per ADS 7.29 9.84 3.46 Diluted: Net income from continuing operations 446,236 617,095 192,554 Net income from discontinued operations 5,480 — — Net income 451,716 617,095 192,554 Less: Net income attributable to the noncontrolling interests 2,488 7,180 3,622 Net income attributable to the Company’s shareholders 449,228 609,915 188,932 Weighted average number of ordinary shares outstanding 1,231,698,725 1,239,264,464 1,092,601,338 Weighted average number of dilutive potential ordinary shares from share options 29,524,324 1,589,570 628,098 Total 1,261,223,049 1,240,854,034 1,093,229,436 Diluted net income from continuing operations per ordinary share 0.36 0.49 0.17 Diluted net income from discontinued operations per ordinary share 0.00 0.00 0.00 Diluted net income per ordinary share 0.36 0.49 0.17 Diluted net income from continuing operations per ADS 7.20 9.83 3.46 Diluted net income from discontinued operations per ADS 0.09 0.00 0.00 Diluted net income per ADS 7.29 9.83 3.46 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of concentration of risk revenues | Year ended December 31, 2017 % of sales 2018 % of sales 2019 % of sales RMB RMB RMB Huaxia Life Insurance Company Limited (“Huaxia”) 990,865 24.2 % 1,100,027 31.7 % 882,539 23.8 % AEON Life Insurance Company, Ltd (“AEON”). * * 453,120 13.1 % 677,707 18.3 % Sinatay Life Insurance Company, Ltd (“Sinatay”) * * * * 595,600 16.1 % Tianan Life Insurance Company Limited (“Tianan”) 913,456 22.3 % 704,933 20.3 % 447,430 12.1 % 1,904,321 46.5 % 2,258,080 65.1 % 2,603,276 70.3 % * represented less than 10% of total net revenues as of the year. |
Schedule of concentration of risk accounts receivable | As of December 31, 2018 % 2019 % RMB RMB Huaxia 161,908 31.8 % 213,851 30.4 % Sinatay * * 100,872 14.4 % Tianan 75,777 14.9 % * * AEON 74,538 14.7 % * * 312,223 61.4 % 314,723 44.8 % * represented less than 10% of accounts receivable as of the year end. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of options Weighted average exercise price in RMB Aggregate Intrinsic Value RMB Outstanding as of January 1, 2017 72,318,158 0.92 141,274 Exercised (69,118,158 ) 0.96 Forfeited (400,000 ) 0.01 Outstanding as of December 31, 2017 2,800,000 1.17 16,422 Exercised (1,760,000 ) 0.01 Forfeited — — Outstanding as of December 31, 2018 1,040,000 0.01 7,841 Exercised (640,000 ) 0.01 Forfeited — — Outstanding as of December 31, 2019 400,000 0.01 3,613 Exercisable as of December 31, 2019 400,000 0.01 3,613 |
Schedule of information about share option plans | Year ended December 31, 2017 2018 2019 RMB RMB RMB Weighted-average grant-date fair value per share of options granted — — — Total intrinsic value of options exercised 270,419 16,884 5,703 Total fair value of share options vested — — — |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Options outstanding Weighted average remaining contractual life (Years) Weighted average exercise price in RMB Options Exercisable 2012 Options G 400,000 2.25 0.01 400,000 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Assumptions November 18, Expected dividend yield (Note i) 3.00 % Risk-free interest rate (Note ii) 1.61 % Expected volatility (Note iii) 50.25 % Expected life (Note iv) 4.12 years Share price per ordinary share on valuation date US$ 26.64 |
Share-based Payment Arrangement, Activity [Table Text Block] | Number of options Weighted average exercise price in US$ Weighted average remaining contractual life (Years) Aggregate Intrinsic Value RMB Outstanding as of January 1, 2018 — — — — Granted 150,000,000 1.5 5.00 — Exercised — — — — Forfeited — — — — Outstanding as of December 31, 2018 150,000,000 1.5 5.00 — Granted 130,000,000 1.3 5.00 — Exercised — — — — Forfeited — — — — Outstanding as of December 31, 2019 280,000,000 1.4 4.00 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net revenues Agency 3,780,217 3,143,873 3,335,397 479,100 Claims Adjusting 308,256 327,390 370,606 53,234 Total net revenues 4,088,473 3,471,263 3,706,003 532,334 Operating costs and expenses Agency (3,408,499 ) (2,614,593 ) (2,797,651 ) (401,857 ) Claims Adjusting (308,321 ) (316,899 ) (361,474 ) (51,923 ) Other (98,517 ) (114,028 ) (77,515 ) (11,134 ) Total operating costs and expenses (3,815,337 ) (3,045,520 ) (3,236,640 ) (464,914 ) Income (loss) from operations Agency 371,718 529,280 537,746 77,243 Claims Adjusting (65 ) 10,491 9,132 1,311 Other (98,517 ) (114,028 ) (77,515 ) (11,134 ) Income (loss) from operations 273,136 425,743 469,363 67,420 |
Schedule of segment assets | As of December 31, 2018 2019 2019 RMB RMB US$ Segment assets Agency 816,596 1,133,121 162,763 Claims Adjusting 266,077 276,885 39,772 Other 2,783,938 2,030,837 291,711 Total assets 3,866,611 3,440,843 494,246 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2014¥ / sharesshares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Nov. 30, 2014 / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Insurance premium receivables | ¥ 4,646 | ¥ 3,823 | |||||
guarantee and entrustment deposits | 91,306 | 71,520 | |||||
Short term investments | 1,612,351 | 1,554,060 | $ 231,600 | ||||
Intangible assets net | ¥ 8,898 | ||||||
Estimated useful lives | 10 years | 10 years | |||||
Amortization of acquired intangible assets | ¥ 942 | $ 135 | 15,946 | ¥ 33,177 | |||
Intangible assets Current | ¥ 942 | 15,946 | |||||
Estimated amortization. description | The estimated amortization expenses for the next five years are: RMB322 in 2020 and nil in years after 2020. | The estimated amortization expenses for the next five years are: RMB322 in 2020 and nil in years after 2020. | |||||
Share-based compensation expenses | ¥ 393 | $ 56 | |||||
Cancellation of policies, adjustments | the cancellation of policies were 0.2%, 0.1% and 0.1% of the total commission and fee revenues during years ended December 31, 2017, 2018 and 2019, respectively. | the cancellation of policies were 0.2%, 0.1% and 0.1% of the total commission and fee revenues during years ended December 31, 2017, 2018 and 2019, respectively. | |||||
Initial cost of the equity investments | ¥ 23,166 | ||||||
Other receivables | 58,124 | ||||||
Balances of contract assets | 131,063 | 84,907 | |||||
Sales taxes, amount | 21,916 | 21,508 | 25,239 | ||||
Total value-added taxes, paid | 197,067 | 179,317 | 157,607 | ||||
Cash and cash equivalents, foreign currency risk | ¥ 220,895 | 216,457 | |||||
Foreign currency exchange rate, description | Translations of amounts from RMB into USD are solely for the convenience of the readers in the United States and were calculated at the rate of US$1.00 = RMB6.9618 | Translations of amounts from RMB into USD are solely for the convenience of the readers in the United States and were calculated at the rate of US$1.00 = RMB6.9618 | |||||
Advertising costs | ¥ 44,387 | ¥ 34,663 | ¥ 35,741 | ||||
Right-of-use asset | 181,576 | ||||||
Lease liability | ¥ 181,457 | ||||||
Employee Companies [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Loan bears interest rate, per annum | 3.00% | 3.00% | |||||
Loan termination, term | 2 years | 2 years | |||||
Subscription receivables related, description | the principal in the amount of RMB260,492 and interests in the amount of RMB29,224 had been settled of while RMB49,438 of principal and RMB5,557 of interest were offset by the Company’s dividend distributions. As of December 31, 2018, the principal and interest of the loans have been fully collected. | ||||||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Estimated useful lives | 9 years 4 months 24 days | 9 years 4 months 24 days | |||||
Share Purchase Agreement One [Member] | Employee Companies [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Converted ordinary shares (in Shares) | shares | 100,000,000 | ||||||
Shares issued, price per share | ¥ / shares | ¥ 0.27 | ||||||
Share Purchase Agreement Two [Member] | Employee Companies [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Converted ordinary shares (in Shares) | shares | 50,000,000 | ||||||
Shares issued, price per share | / shares | 0.29 | ||||||
Finite-Lived Intangible Assets [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Amortization of acquired intangible assets | ¥ 8,576 | ¥ 7,634 | |||||
Minimum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Operating lease term | 2 years | 2 years | |||||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Operating lease term | 7 years | 7 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable, net ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Schedule of accounts receivable, net [Abstract] | |||||||
Accounts receivable | ¥ 702,666 | ¥ 529,715 | |||||
Allowance for doubtful accounts | (20,495) | $ (2,944) | ¥ (20,495) | (21,241) | ¥ (21,241) | ¥ (20,198) | ¥ (16,792) |
Accounts receivable, net | ¥ 682,171 | $ 97,988 | ¥ 508,474 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of allowance for doubtful accounts for accounts receivables - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of allowance for doubtful accounts for accounts receivables [Abstract] | |||
Balance at the beginning of the year | ¥ 21,241 | ¥ 20,198 | ¥ 16,792 |
Provision for doubtful accounts | 6,533 | 6,791 | 14,052 |
Write-offs | (7,279) | (5,748) | (10,646) |
Balance at the end of the year | ¥ 20,495 | ¥ 21,241 | ¥ 20,198 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated residual value | 0.00% |
Leasehold Improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated useful life (Years) | 5 years |
Estimated residual value | 0.00% |
Minimum [Member] | Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated useful life (Years) | 20 years |
Minimum [Member] | Office Equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated useful life (Years) | 3 years |
Estimated residual value | 0.00% |
Minimum [Member] | Vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated useful life (Years) | 5 years |
Estimated residual value | 0.00% |
Maximum [Member] | Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated useful life (Years) | 36 years |
Maximum [Member] | Office Equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated useful life (Years) | 5 years |
Estimated residual value | 3.00% |
Maximum [Member] | Vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment [Line Items] | |
Estimated useful life (Years) | 10 years |
Estimated residual value | 3.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of depreciation methods and estimated useful lives ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Summary of Significant Accounting Policies (Details) - Schedule of depreciation methods and estimated useful lives [Line Items] | ||||
Depreciation for the year | ¥ 16,280 | $ 2,339 | ¥ 10,833 | ¥ 14,099 |
Operating Expense [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of depreciation methods and estimated useful lives [Line Items] | ||||
Depreciation for the year | 216 | 232 | 43 | |
Selling and Marketing Expense [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of depreciation methods and estimated useful lives [Line Items] | ||||
Depreciation for the year | 7,144 | 4,769 | 2,775 | |
General and Administrative Expense [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of depreciation methods and estimated useful lives [Line Items] | ||||
Depreciation for the year | ¥ 8,920 | ¥ 5,832 | ¥ 11,281 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of fair value, assets and liabilities measured on recurring basis - Debt Securities [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Significant Accounting Policies (Details) - Schedule of fair value, assets and liabilities measured on recurring basis [Line Items] | ||
Short-term investments - debt security | ¥ 1,612,351 | ¥ 1,554,060 |
Fair Value, Inputs, Level 1 [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of fair value, assets and liabilities measured on recurring basis [Line Items] | ||
Short-term investments - debt security | ||
Fair Value, Inputs, Level 2 [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of fair value, assets and liabilities measured on recurring basis [Line Items] | ||
Short-term investments - debt security | 1,612,351 | 1,554,060 |
Fair Value, Inputs, Level 3 [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of fair value, assets and liabilities measured on recurring basis [Line Items] | ||
Short-term investments - debt security |
Acquisitions, Disposals and R_3
Acquisitions, Disposals and Reorganization (Details) - CNY (¥) | Oct. 10, 2019 | Nov. 30, 2019 | Nov. 30, 2017 | Oct. 31, 2017 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2017 | Sep. 30, 2019 | Jul. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 |
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Gain(Loss) on disposal of subsidiaries | ¥ 904,000 | ||||||||||
Other receivable related to cash consideration | ¥ 19,463,000 | ||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | |||||||||||
Fair value of convertible debt | 22,000,000 | 22,000,000 | |||||||||
Trend and expected revenue and margin | ¥ 4,500,000,000 | ||||||||||
Fair value of convertible debt | ¥ 17,759,000 | ||||||||||
Initial cost of equity investments | 10,929,000 | ||||||||||
Other receivables | ¥ 6,830,000 | ||||||||||
Guangdong Fanhua Fangzhong Investment Management Co., Ltd. [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||||||
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Disposals of subsidiaries total consideration | ¥ 61,372,000 | ||||||||||
Hubei Fanhua Insurance Agency Co., Ltd. [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||||||
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Disposals of subsidiaries total consideration | ¥ 300,000 | ||||||||||
Gain(Loss) on disposal of subsidiaries | ¥ 58,000 | ||||||||||
InsCom service Limited, InsCom Holding Limited [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||||||
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Disposals of subsidiaries total consideration | ¥ 11,214,000 | ||||||||||
Beijing Ruisike Management Consulting Co., Ltd [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||||||
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Disposals of subsidiaries total consideration | ¥ 20,867,000 | ||||||||||
Gain(Loss) on disposal of subsidiaries | ¥ 2,029,000 | ||||||||||
Fanhua Times Sales and Service Co Limited [Member] | |||||||||||
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Value of a convertible loan receivable | ¥ 108,000,000 | ||||||||||
Fair value | 22,000,000 | ||||||||||
Fair value of convertible debt | ¥ 22,000 | ||||||||||
Convertible loan receivable, Description | the Group exercised the conversion option to partially convert RMB80,000, a portion of original RMB130,000 convertible loan receivable, into 28,684,255 ordinary shares of Cheche Cayman, representing 3.3% equity interest. As stipulated in the original agreement, the unconverted balance of RMB50,000 remains outstanding with the original maturity date of October 31, 2020 and interest rate of 10% per annum, and is no longer convertible. | ||||||||||
Fanhua Times Sales and Service Co Limited [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||||||
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Disposals of subsidiaries total consideration | 225,398,000 | ||||||||||
Gain(Loss) on disposal of subsidiaries | 884,000 | ||||||||||
Equity adjustment, cash consideration | 95,398,000 | ||||||||||
Value of a convertible loan receivable | ¥ 130,000,000 | ||||||||||
Diluted ownership percentage | 10.00% | ||||||||||
Additional interest of subsidiaries | ¥ 367,000 | ||||||||||
Total consideration receivable | 116,514,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Goodwill | ¥ 12,208,000 | ||||||||||
Fanhua Bocheng Brokerage Limited [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||||||
Acquisitions, Disposals and Reorganization (Details) [Line Items] | |||||||||||
Disposals of subsidiaries total consideration | ¥ 46,582,000 | ||||||||||
Gain(Loss) on disposal of subsidiaries | 904,000 | ||||||||||
Total consideration receivable | ¥ 103,446,000 |
Acquisitions, Disposals and R_4
Acquisitions, Disposals and Reorganization (Details) - Schedule of fair value of the embedded conversion option - ¥ / shares | Oct. 10, 2019 | Dec. 31, 2018 | |
Schedule of fair value of the embedded conversion option [Abstract] | |||
Expected dividend yield (Note i) | [1] | 0.00% | 0.00% |
Risk-free interest rate (Note ii) | [2] | 1.91% | 2.48% |
Expected volatility (Note iii) | [3] | 47.19% | 58.20% |
Expected life (Note iv) | [4] | 10 days | 1 year 9 months 18 days |
Share price per ordinary share on valuation date (in Yuan Renminbi per share) | ¥ 0.36 | ¥ 1 | |
[1] | Expected dividend yield:The expected dividend yield was estimated by the Company based on Cheche’s historical dividend policy. | ||
[2] | Risk-free interest rate:Risk-free interest rate was estimated based on the 2-year and 1-year U.S. Government Bond yield as of each of the valuation date. | ||
[3] | Expected volatility:As Cheche is a non-listed company, the Company adopted corresponding volatility with reference to its annualized standard deviation of the continuously compounded rate of return on the daily average adjusted share price as of the valuation date. | ||
[4] | Expected life:The expected life was the contractual life of the option based on the agreement with CheChe. |
Acquisitions, Disposals and R_5
Acquisitions, Disposals and Reorganization (Details) - Schedule of discontinued operations to consolidated statements of financial position and discontinued operations - Fanhua Bocheng Brokerge Limited [Member] ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2017CNY (¥) | ||
Results of discontinued operations: | ||
Total net revenues | ¥ 172,993 | |
Total operating costs | (163,079) | |
Selling expenses | (190) | |
General and administrative expenses | (3,380) | |
Other income, net | 40 | |
Loss on disposal of discontinued operations | (904) | |
Income from discontinued operations before income taxes | 5,480 | |
Income taxes expense | ||
Net income from discontinued operations, net of tax | 5,480 | |
Cash flow from discontinued operations: | ||
Net cash generated from (used in) operating activities* | 8,992 | [1] |
Net cash used in investing activities | ||
Net cash generated from financing activities | ||
Net cash increase (decrease) in cash and, cash equivalents, and restricted cash | 8,992 | |
Cash and cash equivalents and restricted cash at beginning of year | 5,031 | |
Cash and cash equivalents, and restricted cash at the disposal date | 14,023 | |
Cash and cash equivalents and restricted cash at end of year | ||
[1] | Including adjustment for the loss on disposal of discontinued operations in the amount of RMB904 in 2017. |
Other Receivables, Net (Details
Other Receivables, Net (Details) ¥ in Thousands | 1 Months Ended | ||||
Aug. 31, 2017 | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | ||
Other Receivables, Net (Details) [Line Items] | |||||
Due from third party | ¥ | [1] | ¥ 6,830 | ¥ 19,463 | ||
Disposal group, description | the Group disposed of the equity interests in Baosikang Information Technology (shenzhen) Co., Ltd. to a third party for a total cash consideration of RMB7,557 (US$1,099), of which nil and RMB7,557 was collected as of December 31, 2018 and 2019, respectively. | ||||
P&C business [Member] | |||||
Other Receivables, Net (Details) [Line Items] | |||||
Due from third party | $ | $ 6,830 | ||||
[1] | This represented the residual balance of uncollected cash consideration related to the disposal of P&C business. In 2019, the Group collected the full amount of the cash consideration. The balance of RMB6,830 as of December 31, 2019 represents the amount receivable from Cheche as a result of conversion of loan receivable, which is due in October 2020. See Note 3(e) for details. |
Other Receivables, Net (Detai_2
Other Receivables, Net (Details) - Schedule of other receivables ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Schedule of other receivables [Abstract] | ||||
Advances to staff | [1] | ¥ 9,578 | ¥ 10,036 | |
Advances to entrepreneurial agents | [2] | 3,523 | 1,362 | |
Advances to a third party channel vendor | [3] | 13,575 | 8,400 | |
Rental deposits | 14,333 | 12,580 | ||
Amount due from a third party | [4] | 6,830 | 19,463 | |
Amount due from payment platform | 9,926 | 7,082 | ||
Other | [5] | 3,805 | 27,227 | |
Other receivables, net | ¥ 61,570 | $ 8,844 | ¥ 86,150 | |
[1] | This represented advances to staff of the Group for daily business operations which are unsecured, interest-free and repayable on demand. | |||
[2] | This represented advances to entrepreneurial agents who provide services to the Group. The advances are used by agents to develop business. The advances were unsecured, interest-free and repayable on demand. | |||
[3] | This represented advances to a third-party channel vendor, which are unsecured, interest-free and repayable on demand. | |||
[4] | This represented the residual balance of uncollected cash consideration related to the disposal of P&C business. In 2019, the Group collected the full amount of the cash consideration. The balance of RMB6,830 as of December 31, 2019 represents the amount receivable from Cheche as a result of conversion of loan receivable, which is due in October 2020. See Note 3(e) for details. | |||
[5] | This represented other miscellaneous receivables, receivable related to disposal of a subsidiary, advance payments to designated governmental authorities on behalf of our employees regarding statutory employee benefits and other deposits, etc. In August 2017, the Group disposed of the equity interests in Baosikang Information Technology (shenzhen) Co., Ltd. to a third party for a total cash consideration of RMB7,557 (US$1,099), of which nil and RMB7,557 was collected as of December 31, 2018 and 2019, respectively. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Impairment for property, plant and equipment | ¥ 0 | ¥ 0 | ¥ 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plant and equipment ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property, Plant and Equipment [Abstract] | |||
Building | ¥ 12,317 | ¥ 12,317 | |
Office equipment, furniture and fixtures | 131,878 | 129,848 | |
Motor vehicles | 11,228 | 10,292 | |
Leasehold improvements | 24,386 | 14,284 | |
Total | 179,809 | 166,741 | |
Less: Accumulated depreciation | (139,003) | (128,807) | |
Property, plant and equipment, net | ¥ 40,806 | $ 5,862 | ¥ 37,934 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of gross amount and accumulated impairment losses ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Goodwill (Details) - Schedule of gross amount and accumulated impairment losses [Line Items] | |||
Gross as of December 31, 2018 and 2019 | ¥ 153,114 | ||
Accumulated impairment loss as of December 31, 2018 and 2019 | (43,245) | ||
Net as of December 31, 2018 | 109,869 | $ 15,782 | ¥ 109,869 |
Net as of December 31, 2019 | 109,869 | $ 15,782 | ¥ 109,869 |
Agency Segment [Member] | |||
Goodwill (Details) - Schedule of gross amount and accumulated impairment losses [Line Items] | |||
Gross as of December 31, 2018 and 2019 | 131,977 | ||
Accumulated impairment loss as of December 31, 2018 and 2019 | (22,108) | ||
Net as of December 31, 2018 | 109,869 | ||
Net as of December 31, 2019 | 109,869 | ||
Claims Adjusting Segment [Member] | |||
Goodwill (Details) - Schedule of gross amount and accumulated impairment losses [Line Items] | |||
Gross as of December 31, 2018 and 2019 | 21,137 | ||
Accumulated impairment loss as of December 31, 2018 and 2019 | (21,137) | ||
Net as of December 31, 2018 | |||
Net as of December 31, 2019 |
Investments in Affiliates (Deta
Investments in Affiliates (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Investments in Affiliates (Details) [Line Items] | ||||
Investments accounted for under the equity method | ¥ 363,414 | ¥ 587,517 | ||
Significant subsidiary test percentage | 20.60% | |||
Share of income for affiliates | 108,944 | 174,468 | ¥ 98,100 | |
Share of other comprehensive income of affiliates, net of tax | 452 | ¥ 1,763 | ¥ 1,263 | |
CNFinance [Member] | ||||
Investments in Affiliates (Details) [Line Items] | ||||
Other-than temporarily impaired and an impairment amount | 322,655 | |||
Carrying value of investment | 352,541 | |||
Impairment of investment | 322,655 | |||
CNFinance [Member] | Maximum [Member] | ||||
Investments in Affiliates (Details) [Line Items] | ||||
Significant subsidiary test percentage | 20.60% | |||
CNFinance [Member] | Minimum [Member] | ||||
Investments in Affiliates (Details) [Line Items] | ||||
Significant subsidiary test percentage | 18.50% | |||
Puyi Inc. [Member] | ||||
Investments in Affiliates (Details) [Line Items] | ||||
Investments accounted for under the equity method | ¥ 117,005 | |||
Description of investment in puyi | In August of 2018, Puyi Inc. or Puyi, an exempted company incorporated under the laws of the Cayman Islands, which is also the ultimate holding company of Fanhua Puyi Fund Distribution Co., Ltd., or Fanhua Puyi” and Chengdu Puyi Bohui Information Technology Co., Ltd., or Puyi Bohui, started its process of an initial public offering (“IPO”) in the U.S. capital market. For the IPO purpose, Puyi and its subsidiaries have conducted certain equity reorganization transactions with the Group. As part of Puyi Inc’s reorganization, in September 2018, the Group transferred its shares in Fanhua Puyi to Puyi Bohui with the carrying amount of RMB10,028 in exchange for 4,033,600 Ordinary Shares of Puyi (“Puyi’s shares”), representing 4.8% of Puyi’s equity interest. No gain or loss on above transactions was recognized by the Group as management considered that the substance of this transaction is an exchange of shares as part of Puyi Inc’s reorganization, and the fair value of Puyi’s share is equivalent to the fair value of the Group’s original equity interests on Fanhua Puyi given up.Puyi was subsequently listed on NASDAQ on March 29, 2018, and the Group’s equity was then diluted to 4.5% after its IPO. | |||
Teamhead Automobile [Member] | ||||
Investments in Affiliates (Details) [Line Items] | ||||
Significant subsidiary test percentage | 40.00% |
Investments in Affiliates (De_2
Investments in Affiliates (Details) - Schedule of investments in affiliates ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Schedule of Equity Method Investments [Line Items] | |||
Total | ¥ 363,414 | $ 52,201 | ¥ 587,517 |
Teamhead Automobile [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total | 204 | 119 | |
Puyi Inc. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total | 10,670 | 11,350 | |
CNFinance [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total | ¥ 352,540 | ¥ 576,048 |
Investments in Affiliates (De_3
Investments in Affiliates (Details) - Schedule of statements of financial position - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of statements of financial position [Abstract] | ||
Total assets | ¥ 13,490,270 | ¥ 19,630,092 |
Total liabilities | ¥ 9,510,013 | ¥ 16,339,829 |
Investments in Affiliates (De_4
Investments in Affiliates (Details) - Schedule of results of operation - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of results of operation [Abstract] | |||
Income from operations | ¥ 689,259 | ¥ 1,210,690 | ¥ 804,163 |
Net profit | ¥ 520,539 | ¥ 907,724 | ¥ 529,524 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of ROU assets and related lease liabilities - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Schedule of ROU assets and related lease liabilities [Abstract] | ||
Operating lease ROU assets | ¥ 190,437 | $ 27,354 |
Current operating lease liability | 79,986 | |
Non-current operating lease liability | 103,252 | $ 14,831 |
Total operating leased liabilities | ¥ 183,238 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of weighted average lease term and weighted average discount rate | Dec. 31, 2019 |
Weighted average lease term: | |
Operating leases | 2 years 11 months 26 days |
Weighted average discount rate: | |
Operating leases | 4.78% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of lease expenses ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Schedule of lease expenses [Abstract] | |
Operating lease cost | ¥ 77,406 |
Short term lease cost | 15,148 |
Total | ¥ 92,554 |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of supplemental cash flow information related to leases ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for operating leases | ¥ 74,265 |
Supplemental noncash information: | |
Right-of-use assets obtained in exchange for lease obligations | ¥ 78,344 |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of maturities of lease liabilities - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Schedule of maturities of lease liabilities [Abstract] | ||
2020 | ¥ 87,333 | |
2021 | 57,638 | |
2022 | 32,358 | |
2023 | 17,458 | |
2024 | 7,270 | |
Thereafter | 2,473 | |
Total remaining undiscounted lease payments | 204,530 | |
Less: Interest | (21,292) | |
Total present value of lease liabilities | 183,238 | |
Less: Current operating lease liability | (79,986) | $ (11,489) |
Non-current operating lease liability | ¥ 103,252 | $ 14,831 |
Variable Interest Entities (V_3
Variable Interest Entities (VIE) (Details) | Jun. 14, 2018 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Subscription price, description | The 521 Plan provides Participants an opportunity to benefit from appreciation of the Company’s ordinary shares by purchasing the Company’s ordinary shares at a stated subscription price of US$27.38 per ADS, in exchange for employee and non-employee services, if service and performance conditions are achieved. US$27.38 per ADS, is the weighted average of the closing prices of the repurchase and new share issuance transactions listed below. 10% of the subscription price is paid by the Participant on or around the grant date, while the remaining 90% of the subscription prices is financed through interest-bearing loans from the Group. | As of December 31, 2019, the Group had already transferred all the 280 million ordinary shares to the 521 Plan Employee Companies with an average price at US$27.38 per ADS. The 10% subscription price contributed by Participants amounted to RMB266,901 and is recorded as non-current refundable share right deposits on the statement of financial position. |
Description of variable interest | The 521 Plan established a pool of 280 million ordinary shares (14 million ADS) available to benefit Participants. In establishing the ADS pool, the Group has: ●through one of the 521 Plan Employee Companies, purchased 7.5 million ADS from Master Trend Limited (“Master Trend”) at US$29 per ADS from June to October 2018 with consideration amounted to RMB1,465,123. Master Trend is a company controlled by a principal shareholder, who is also one of the founders of the Group. The Group funded 90% of the purchase price with the remaining 10% funded by Participants; ●repurchased 1,423,774 ADS from the open market from August to December 2018 at the average purchase price is US$25.52 per ADS, which have been transferred to Fanhua Employees Holdings Limited on January 10, 2019; ●issued 101,524,520 ordinary shares (5,076,226 ADSs) at US$25.52 per ADS in January 2019 to the 521 Plan Employee Companies. The Group set the 521 Plan subscription price at US$27.38 per ADS, which is the weighted average of the closing prices of the above mentioned repurchase and new share issuance transactions, but Participants initially deposited at 10% contribution of US$29 per share. The 10% subscription price contributed by Participants amounted to RMB8,184 and RMB138,328 as of December 31, 2018 and is recorded as current and non-current refundable share right deposits on the statement of financial position, respectively. Please see Note 16. The RMB8,184 represents excess contribution received from Participants, which have been fully refunded in April, 2019. | Participants agreed to pay 10% of the subscription price and executed a loan agreement with the Group for a loan representing 90% of the subscription price of the ordinary shares under the 521 Plan. Participants executed an entrusted share purchase agreement with one of the 521 Employee Companies whereby the 521 Plan Employee Company will legally hold the ordinary shares on behalf of the Participants. As of December 31, 2018 and 2019, the loan agreements provide a total of US$184,815 and US$344,988, respectively, in loans to the VIEs and Participants of the 521 Plan with the sole purpose of providing funds necessary for the purchase of the Group’s ordinary shares under the 521 Plan. |
Variable Interest Entities (V_4
Variable Interest Entities (VIE) (Details) - Schedule of information related to the VIE’s assets and liabilities - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of information related to the VIE’s assets and liabilities [Abstract] | ||
Total assets | ||
Total liabilities | ¥ 266,901 | ¥ 146,512 |
Other Payables and Accrued Ex_3
Other Payables and Accrued Expenses (Details) - Schedule of other payables and accrued expenses - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of other payables and accrued expenses [Abstract] | ||
Business and other tax payables | ¥ 72,998 | ¥ 70,237 |
Refundable deposits from employees and agents | 23,478 | 26,790 |
Refundable share rights deposits (Note 9(b)) | 8,184 | |
Professional fees | 13,958 | 17,105 |
Accrued expenses to third parties | 22,610 | 42,324 |
Payables for addition of office equipment, furniture and fixtures | 8,618 | |
Contributions from members of eHuzhu mutual aid program | 76,765 | 62,459 |
Others | 10,481 | 19,107 |
Total other payables and accrued expenses | ¥ 220,290 | ¥ 254,824 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |||
Employee group contributed, amount | ¥ 90,438 | ¥ 74,179 | ¥ 66,370 |
Income Taxes (Details)
Income Taxes (Details) ¥ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 21, 2018 | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2019CNY (¥)$ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2016 | |
Income Taxes (Details) [Line Items] | ||||||
Income taxes, Description | Pursuant to the Circular on Issues Regarding Tax-related Preferential Policies for Further Implementation of Western Development Strategy jointly issued by the State Ministry of Finance, General Administration of Customs, China and State Administration for Taxation, enterprises located in the western China regions that fall into the encouraged industries are entitled to 15% EIT preferential tax treatment from January 1, 2011 to December 31, 2020. In September 2018, Fanhua Lianxing Insurance Sales Co., Ltd. (“Lianxing”), the Group’s wholly-owned subsidiary, which is the holding entity of our life insurance operations, were relocated to Tianfu New Area, Sichuan province. Lianxing was entitled to a preferential tax rate of 15% from September 1, 2018 to December 31, 2020 as it was classified as encouraged enterprises in the western region in an industry sector encouraged by the PRC government. Tibet Zhuli Investment Co. Ltd. (“Tibet Zhuli”), our wholly-owned subsidiary, was entitled to a preferential tax rate of 9% for the period from January 1, 2015 to December 31, 2017 and 15% for the years ended December 31, 2018 and 2019, as it was established with approval in an economy development zone in the PRC before January 1, 2018. | |||||
Provision for income taxes, Percentage | 25.00% | 25.00% | 25.00% | |||
PRC income tax reduction, Percentage | 50.00% | |||||
Income tax reduction period | 3 years | |||||
Dividend distribution withholding tax rate | 2018.00% | 5.00% | ||||
Valuation allowance | ¥ 38,482 | ¥ 38,482 | ¥ 32,495 | |||
Operating loss carry-forwards | 162,704 | ¥ 162,704 | 142,745 | |||
Tax loss carried forward expired and cancelled | 6,060 | 16,288 | ¥ 13,284 | |||
PRC income taxes payable without tax exemption amount | ¥ 36,527 | ¥ 8,307 | ¥ 826 | |||
Basic net profit per share (in Yuan Renminbi per share) | (per share) | ¥ 0.17 | ¥ 0.02 | ¥ 0.49 | ¥ 0.36 | ||
Diluted net profit per share (in Yuan Renminbi per share) | (per share) | ¥ 0.17 | ¥ 0.02 | ¥ 0.49 | 0.36 | ||
Dividend paid, Description | If the entities were to be non-resident for PRC tax purposes, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC subsidiaries, the withholding tax would be 10%, whereas in the case of dividends paid by PRC subsidiaries which are 25% or more directly owned by tax residents in the Hong Kong Special Administrative Region, the withholding tax would be 5%. The Group’s subsidiary, CNinsure Holdings Limited qualified as Hong Kong resident for the each of the 3 years in the period ended December 31, 2019 and was entitled to enjoy 5% reduced tax rate under Bulletin [2018] No. 9 for the years ended December 31, 2017, 2018 and 2019, respectively. | |||||
Undistributed earnings of Group's subsidiaries and VIEs | ¥ 1,303,923 | ¥ 1,303,923 | ¥ 1,441,628 | |||
Undistributed earnings of deferred tax liability | 65,196 | 65,196 | 66,580 | |||
Deferred income tax | ¥ 49,267 | 49,267 | ¥ 53,702 | |||
Prc [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Income taxes, Description | According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB100 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. | |||||
Provision for income taxes, Percentage | 25.00% | |||||
Description of dividend payable | The Group’s subsidiaries that are the PRC tax resident are required to withhold the PRC withholding tax of 10% on dividend payment to their non-PRC resident immediate holding company, unless such dividend payment is qualified for the 5% reduced tax rate under the Arrangement between Mainland China and Hong Kong for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (the “PRC-HK DTA”). | |||||
Dividend distribution withholding tax rate | 5.00% | |||||
Basic net profit per share (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.03 | ¥ 0.01 | 0 | |||
Diluted net profit per share (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.03 | ¥ 0.01 | ¥ 0 | |||
Carryforward Expiring December 31, 2020 [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Operating loss carry-forwards | ¥ 9,576 | 9,576 | ||||
Carryforward Expiring December 31, 2021 [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Operating loss carry-forwards | 15,323 | 15,323 | ||||
Carryforward Expiring December 31, 2022 [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Operating loss carry-forwards | 41,224 | 41,224 | ||||
Carryforward Expiring December 31, 2023 [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Operating loss carry-forwards | 55,890 | 55,890 | ||||
Carryforward Expiring December 31, 2024 [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Operating loss carry-forwards | ¥ 40,691 | ¥ 40,691 | ||||
HONG KONG | ||||||
Income Taxes (Details) [Line Items] | ||||||
Income taxes, Description | the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first 2,000 Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD 2,000 will be taxed at 16.5% | |||||
Provision for income taxes, Percentage | 8.25% | 8.25% | 16.50% | |||
Ying Si Kang Information [Member] | Prc [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Provision for income taxes, Percentage | 12.50% | 12.50% | 12.50% | |||
Shenzhen Huazhong [Member] | Prc [Member] | ||||||
Income Taxes (Details) [Line Items] | ||||||
Provision for income taxes, Percentage | 12.50% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of unrecognized tax benefits ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Schedule of unrecognized tax benefits [Abstract] | ||||
Balance | ¥ 70,350 | ¥ 70,350 | ¥ 72,778 | |
Gross increase in tax positions | (2,428) | |||
Balance | ¥ 70,350 | $ 10,105 | ¥ 70,350 | ¥ 70,350 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of income tax expenses ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Schedule of income tax expenses [Abstract] | ||||
Current tax expense | ¥ 139,549 | ¥ 243,330 | ¥ 158,291 | |
Deferred tax (income) expense | 4,267 | (18,744) | 9,512 | |
Income tax expense | ¥ 143,816 | $ 20,658 | ¥ 224,586 | ¥ 167,803 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred income tax assets and liabilities - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current deferred tax assets: | ||
Operating loss carryforward | ¥ 40,498 | ¥ 35,686 |
Intangible assets, net | 5,311 | 6,129 |
Less: valuation allowances | (38,482) | (32,495) |
Total | 7,327 | 9,320 |
Non-current deferred tax liabilities: | ||
Intangible assets, net | 122 | |
Dividend withholding taxes | 7,898 | 5,502 |
Total | ¥ 7,898 | ¥ 5,624 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of reconciliation between provision for income taxes ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Schedule of reconciliation between provision for income taxes [Abstract] | ||||
Income from continuing operations before income taxes, share of income of affiliates and discontinued operations | ¥ 560,925 | $ 80,572 | ¥ 667,213 | ¥ 505,095 |
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax at statutory tax rate | ¥ 140,231 | ¥ 166,803 | ¥ 126,274 | |
Entertainment | 2,516 | 1,358 | 1,411 | |
Effect of tax holidays on concessionary rates granted to PRC subsidiaries | (36,527) | (8,307) | (826) | |
Other | 730 | 1,079 | 19,689 | |
Change in valuation allowance | 5,987 | 6,583 | 578 | |
Uncertain tax provisions | (2,428) | |||
Deferred income tax for dividend distribution | 49,267 | 53,702 | 16,800 | |
Other | (18,388) | 3,368 | 6,305 | |
Income tax expense | ¥ 143,816 | $ 20,658 | ¥ 224,586 | ¥ 167,803 |
Capital Structure (Details)
Capital Structure (Details) - CNY (¥) ¥ in Thousands | Jan. 10, 2019 | Apr. 06, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Structure (Details) [Line Items] | |||||
Capital structure, description | the Company had granted an additional 6.5 million ADS (equivalent of 130,000,000 ordinary shares) at US$25.6 per ADS (equivalent of US$1.28 per ordinary share) to the Participants, of which the 1,423,774 ADS was repurchased from open market during 2018 and was held by the Company as treasury shares as of December 31, 2018. Pursuant to the Company’s 521 Plan, 280,000,000 ordinary shares had been purchased by 521 Plan Employee Companies at the weighted average price of US$1.37 per ordinary share and 178,475,480 shares of which were recorded as treasury shares as of December 31, 2018 and 2019. | During 2019, the Company has purchased and cancelled an aggregate of 2,511,191 ADSs (equivalent of 50,223,820 ordinary shares), representing 4.7% of the total shares outstanding as of December 31, 2019, at an average price of approximately US$28.2 per ADS for a total amount of approximately RMB484,015 (US$69,525), under its share buyback program to repurchase up to US$200 million ADSs by December 31, 2019, as previously announced by its board of directors in March 2019. | |||
Cash Consideration (in Yuan Renminbi) | ¥ 1,716,343 | ||||
Share purchase agreement, description | the Company announced that it entered into a share purchase agreement with Fosun Industrial Holdings Limited (“Fosun”), a wholly-owned subsidiary of Fosun International Limited (00656.HK) for a private placement of 66,000,000 ordinary shares (equivalent to 3,300,000 ADS) of the Company, at purchase price of US$0.44185 per ordinary share equivalent to US$8.837 per ADS, for a total investment of US$29,162. The purchase price represented the average closing price of the past 20 trading days prior to the signing of the share purchase agreement between Fosun and the Company on March 29, 2017. Fosun held 5.08% of the total shares outstanding of the Company as of December 31, 2017 and its purchased shares were subject to a contractual one-year lock-up. | ||||
Equity Option [Member] | |||||
Capital Structure (Details) [Line Items] | |||||
Exercised | 640,000 | 1,760,000 | 69,118,158 | ||
Total shares issued, Percentage | 0.10% | 0.16% | 5.32% | ||
Public Market [Member] | |||||
Capital Structure (Details) [Line Items] | |||||
Total shares issued, Percentage | 2.19% | ||||
Repurchase of ordinary shares, shares | 28,475,480 | ||||
Public Market [Member] | ADS [Member] | |||||
Capital Structure (Details) [Line Items] | |||||
Repurchase of ordinary shares, shares | 1,423,774 | ||||
Master Trend Limited [Member] | |||||
Capital Structure (Details) [Line Items] | |||||
Total shares issued, Percentage | 11.52% | ||||
Repurchase of ordinary shares, shares | 150,000,000 | ||||
Master Trend Limited [Member] | ADS [Member] | |||||
Capital Structure (Details) [Line Items] | |||||
Repurchase of ordinary shares, shares | 7,500,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - Schedule of basic and diluted net income per ordinary share ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Basic: | ||||
Net income from continuing operations (in Yuan Renminbi) | ¥ 192,554 | $ 27,659 | ¥ 617,095 | ¥ 446,236 |
Net income from discontinued operations (in Yuan Renminbi) | ¥ | 5,480 | |||
Net income (in Yuan Renminbi) | 192,554 | 27,659 | 617,095 | 451,716 |
Less: Net income attributable to the noncontrolling interests (in Yuan Renminbi) | 3,622 | 520 | 7,180 | 2,488 |
Net income attributable to the Company’s shareholders (in Yuan Renminbi) | ¥ 188,932 | $ 27,139 | ¥ 609,915 | ¥ 449,228 |
Weighted average number of ordinary shares outstanding (in Shares) | 1,092,601,338 | 1,092,601,338 | 1,239,264,464 | 1,231,698,725 |
Basic net income from continuing operations per ordinary share | (per share) | ¥ 0.17 | $ 0.02 | ¥ 0.49 | ¥ 0.36 |
Basic net income from discontinued operations per ordinary share | (per share) | 0 | 0 | 0 | 0 |
Basic net income per ordinary share | (per share) | 0.17 | 0.02 | 0.49 | 0.36 |
Basic net income from continuing operations per ADS | (per share) | 3.46 | 0.50 | 9.84 | 7.20 |
Basic net income from discontinued operations per ADS | (per share) | 0 | 0 | 0 | 0.09 |
Basic net income per ADS | (per share) | ¥ 3.46 | $ 0.50 | ¥ 9.84 | ¥ 7.29 |
Diluted: | ||||
Net income from continuing operations (in Yuan Renminbi) | ¥ 192,554 | $ 27,659 | ¥ 617,095 | ¥ 446,236 |
Net income from discontinued operations (in Yuan Renminbi) | ¥ | 5,480 | |||
Net income (in Yuan Renminbi) | 192,554 | 27,659 | 617,095 | 451,716 |
Less: Net income attributable to the noncontrolling interests (in Yuan Renminbi) | 3,622 | 520 | 7,180 | 2,488 |
Net income attributable to the Company’s shareholders (in Yuan Renminbi) | ¥ 188,932 | $ 27,139 | ¥ 609,915 | ¥ 449,228 |
Weighted average number of ordinary shares outstanding (in Shares) | 1,092,601,338 | 1,092,601,338 | 1,239,264,464 | 1,231,698,725 |
Weighted average number of dilutive potential ordinary shares from share options (in Shares) | 628,098 | 628,098 | 1,589,570 | 29,524,324 |
Total (in Shares) | 1,093,229,436 | 1,093,229,436 | 1,240,854,034 | 1,261,223,049 |
Diluted net income from continuing operations per ordinary share | (per share) | ¥ 0.17 | $ 0.02 | ¥ 0.49 | ¥ 0.36 |
Diluted net income from discontinued operations per ordinary share | (per share) | 0 | 0 | 0 | 0 |
Diluted net income per ordinary share | ¥ / shares | 0.17 | 0.49 | 0.36 | |
Diluted net income from continuing operations per ADS | (per share) | 3.46 | 0.50 | 9.83 | 7.20 |
Diluted net income from discontinued operations per ADS | (per share) | 0 | $ 0 | 0 | 0.09 |
Diluted net income per ADS | ¥ / shares | ¥ 3.46 | ¥ 9.83 | ¥ 7.29 |
Distribution of Profits (Detail
Distribution of Profits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Distribution of Profits (Details) [Line Items] | |||
Appropriations to the statutory surplus reserve percentage | 50.00% | ||
Statutory reserves | ¥ 508,739 | $ 73,076 | ¥ 480,881 |
Prc [Member] | |||
Distribution of Profits (Details) [Line Items] | |||
Appropriations to the statutory surplus reserve percentage | 10.00% |
Related-party Balances and Tr_2
Related-party Balances and Transactions (Details) ¥ in Thousands | Oct. 10, 2018shares | Aug. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2018$ / shares | Mar. 31, 2018 |
Related-party Balances and Transactions (Details) [Line Items] | |||||||
Equity method investment, ownership percentage | 20.60% | ||||||
Shenzhen Baoying Factoring Co Limited [Member] | |||||||
Related-party Balances and Transactions (Details) [Line Items] | |||||||
Principal receivable | ¥ 50,000 | ||||||
Interest rate | 8.50% | ||||||
Interest receivable | ¥ 989 | ||||||
Group [Member] | |||||||
Related-party Balances and Transactions (Details) [Line Items] | |||||||
Interest rate | 7.30% | ||||||
Interest receivable | ¥ 360 | ||||||
Affiliates interest income | ¥ 8,714 | ||||||
Principal amount of Investment | 15,000 | ¥ 138,000 | |||||
Investment income received | 610 | ||||||
Value outstanding wealth management products | ¥ 15,000 | ||||||
Mr Qiuping Lai [Member] | |||||||
Related-party Balances and Transactions (Details) [Line Items] | |||||||
Repurchase of ordinary shares (in Shares) | shares | 7,500,000 | ||||||
Equity method investment, ownership percentage | 4.30% | ||||||
Master Trend Limited [Member] | |||||||
Related-party Balances and Transactions (Details) [Line Items] | |||||||
Repurchase of ordinary shares (in Shares) | shares | 150,000,000 | ||||||
Shares issued, price per share (in Dollars per share) | $ / shares | $ 1.45 | ||||||
Average closing price, trading days | 30 | ||||||
Term of loan, description | In form of loan to the 521 plan’s participants, the Group had paid RMB1,318,611 as 90% of shares purchase consideration to Master Trend during 2018. The remaining 10% in the amount of RMB146,512 was paid by the 521 Plan’s Participants directly to Master Trend, in which the Group recorded RMB8,184 and RMB138,328 as current and non-current refundable share right deposits on the statement of financial position as of December 31, 2018, respectively. | ||||||
Master Trend Limited [Member] | ADS [Member] | |||||||
Related-party Balances and Transactions (Details) [Line Items] | |||||||
Repurchase of ordinary shares (in Shares) | shares | 7,500,000 | ||||||
Shares issued, price per share (in Dollars per share) | $ / shares | $ 29 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Sales Revenues Net Member | |
Concentrations of Credit Risk (Details) [Line Items] | |
Concentration risk percentage, description | represented less than 10% of total net revenues as of the year. |
Accounts Receivable [Member] | |
Concentrations of Credit Risk (Details) [Line Items] | |
Concentration risk percentage, description | represented less than 10% of accounts receivable as of the year end. |
Concentrations of Credit Risk_3
Concentrations of Credit Risk (Details) - Schedule of concentration of risk revenues - Sales Revenues Net Member - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk revenues [Line Items] | |||||
Sales Revenue, Net | ¥ 2,603,276 | ¥ 2,258,080 | ¥ 1,904,321 | ||
Concentration risk percentage | 70.30% | 65.10% | 46.50% | ||
Huaxia [Member] | |||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk revenues [Line Items] | |||||
Sales Revenue, Net | ¥ 882,539 | ¥ 1,100,027 | ¥ 990,865 | ||
Concentration risk percentage | 23.80% | 31.70% | 24.20% | ||
AEON [Member] | |||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk revenues [Line Items] | |||||
Sales Revenue, Net | ¥ 677,707 | ¥ 453,120 | [1] | ||
Concentration risk percentage | 18.30% | 13.10% | [1] | ||
Sinatay [Member] | |||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk revenues [Line Items] | |||||
Sales Revenue, Net | ¥ 595,600 | [1] | [1] | ||
Concentration risk percentage | 16.10% | [1] | [1] | ||
Tianan Life Insurance Company Limited [Member] | |||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk revenues [Line Items] | |||||
Sales Revenue, Net | ¥ 447,430 | ¥ 704,933 | ¥ 913,456 | ||
Concentration risk percentage | 12.10% | 20.30% | 22.30% | ||
[1] | represented less than 10% of total net revenues as of the year. |
Concentrations of Credit Risk_4
Concentrations of Credit Risk (Details) - Schedule of concentration of risk accounts receivable - Accounts Receivable [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk accounts receivable [Line Items] | ||||
Concentration risk amount | ¥ 314,723 | ¥ 312,223 | ||
Concentration risk percentage | 44.80% | 61.40% | ||
Huaxia [Member] | ||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk accounts receivable [Line Items] | ||||
Concentration risk amount | ¥ 213,851 | ¥ 161,908 | ||
Concentration risk percentage | 30.40% | 31.80% | ||
Sinatay [Member] | ||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk accounts receivable [Line Items] | ||||
Concentration risk amount | ¥ 100,872 | [1] | ||
Concentration risk percentage | 14.40% | [1] | ||
Tianan [Member] | ||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk accounts receivable [Line Items] | ||||
Concentration risk amount | [1] | ¥ 75,777 | ||
Concentration risk percentage | [1] | 14.90% | ||
AEON [Member] | ||||
Concentrations of Credit Risk (Details) - Schedule of concentration of risk accounts receivable [Line Items] | ||||
Concentration risk amount | [1] | ¥ 74,538 | ||
Concentration risk percentage | [1] | 14.70% | ||
[1] | represented less than 10% of accounts receivable as of the year end. |
Share-based Compensation (Detai
Share-based Compensation (Details) ¥ / shares in Units, ¥ in Thousands | Mar. 12, 2012¥ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2019$ / shares | Mar. 12, 2012$ / shares |
Share-based Compensation (Details) [Line Items] | ||||||
Percentage of interest rate | 8.00% | |||||
2012 Option G [Member] | ||||||
Share-based Compensation (Details) [Line Items] | ||||||
Share-based compensation expenses (in Yuan Renminbi) | ¥ | ||||||
Exercised | 640,000 | |||||
Option forfeited | 400,000 | |||||
521 Plan [Member] | ||||||
Share-based Compensation (Details) [Line Items] | ||||||
Description of option grantees | The 521 Plan is generally scheduled to be vested over five years. 150,000,000 ordinary shares were granted on December 31, 2019 and the rest has been granted on January 10, 2019 subsequently. The Group estimates the forfeiture rate for both independent agents and employees to be nil for 2019. | |||||
Exercise price of options | $ / shares | $ 27.38 | |||||
Options granted | 150,000,000 | |||||
Share-based compensation expenses (in Yuan Renminbi) | ¥ | ¥ 393 | |||||
Percentage of subscription price | 90.00% | |||||
Percentage of contributed by participants | 10.00% | |||||
Termination of employment or agency contract | The loan is repayable by the Participants upon the earlier of the expiry date of the 521 Plan, termination of employment or the agency contract or within five years. | |||||
Description of vesting, forfeiture and settlement terms | The Participants’ rights to ownership benefits of the shares are subject to the Participants’ achievement of service and performance vesting conditions. Each award agreement contains a condition for service from January 1, 2019 through December 31, 2023 (which coincides with loan maturity date) as well as individually determined performance conditions based on cumulative sales over the service period. Participants must achieve both the service and performance conditions for their shares to fully vest at the end of the loan maturity date, otherwise the share appreciation profits at the end of the vesting period, if any, after principals and accrued interests of the loans are fully repaid to the Group, will be either fully retained or partially retained by the Group. On November 15, 2019, the Board of Directors of the Company approved an exemption of the first-year performance condition for all Participants under the 521 Plan. | |||||
Risk-free interest rate estimated term | 5 years | |||||
Reserved ordinary shares available to be granted as share-based awards | 280,000,000 | |||||
Unrecognized share base-based compensation expense (in Yuan Renminbi) | ¥ | ¥ 1,573 | |||||
Directors and Employees [Member] | 2012 Option G [Member] | ||||||
Share-based Compensation (Details) [Line Items] | ||||||
Options to purchase ordinary shares | 92,845,000 | |||||
Description of option grantees | Pursuant to the option agreements entered into between the Company and the option grantees, the options shall vest over a five-year service period from 2012 to 2016. The expiration date of the 2012 Options is March 12, 2022. | |||||
Exercise price of options | (per share) | ¥ 1.90 | $ 0.30 | ||||
Intrinsic value of per ordinary share | (per share) | 0.26 | 0.04 | ||||
Two Independent Directors [Member] | 2012 Option G [Member] | ||||||
Share-based Compensation (Details) [Line Items] | ||||||
Exercise price of options | (per share) | 1.98 | 0.31 | ||||
Intrinsic value of per ordinary share | (per share) | ¥ 0.17 | 0.03 | ||||
Options granted | 3,200,000 | |||||
Exercise price for option G later modified | (per share) | ¥ 0.006 | $ 0.001 |
Share-based Compensation (Det_2
Share-based Compensation (Details) - Schedule of outstanding options - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options | |||
Share-based Compensation (Details) - Schedule of outstanding options [Line Items] | |||
Outstanding | 1,040,000 | 2,800,000 | 72,318,158 |
Exercised | (640,000) | (1,760,000) | (69,118,158) |
Forfeited | (400,000) | ||
Outstanding | 400,000 | 1,040,000 | 2,800,000 |
Exercisable | 400,000 | ||
Weighted average exercise price in RMB | |||
Share-based Compensation (Details) - Schedule of outstanding options [Line Items] | |||
Outstanding | ¥ 0.01 | ¥ 1.17 | ¥ 0.92 |
Exercised | 0.01 | 0.01 | 0.96 |
Forfeited | 0.01 | ||
Outstanding | 0.01 | ¥ 0.01 | ¥ 1.17 |
Exercisable | ¥ 0.01 | ||
Aggregate Intrinsic Value RMB | |||
Share-based Compensation (Details) - Schedule of outstanding options [Line Items] | |||
Outstanding | ¥ 7,841 | ¥ 16,422 | ¥ 141,274 |
Outstanding | 3,613 | ¥ 7,841 | ¥ 16,422 |
Exercisable | ¥ 3,613 |
Share-based Compensation (Det_3
Share-based Compensation (Details) - Schedule of information about share option plans - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of information about share option plans [Abstract] | |||
Weighted-average grant-date fair value per share of options granted (in Yuan Renminbi per share) | |||
Total intrinsic value of options exercised | ¥ 5,703 | ¥ 16,884 | ¥ 270,419 |
Total fair value of share options vested |
Share-based Compensation (Det_4
Share-based Compensation (Details) - Schedule of information about stock option plans - 2012 Option G [Member] | 12 Months Ended |
Dec. 31, 2019¥ / sharesshares | |
Share-based Compensation (Details) - Schedule of information about stock option plans [Line Items] | |
Options outstanding | 400,000 |
Weighted average remaining contractual life (Years) | 2 years 3 months |
Weighted average exercise price in RMB (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.01 |
Options Exercisable | 400,000 |
Share-based Compensation (Det_5
Share-based Compensation (Details) - Schedule of assumption used in determining the fair value - 521 Plan [Member] | 1 Months Ended | |
Nov. 18, 2019$ / shares | ||
Share-based Compensation (Details) - Schedule of assumption used in determining the fair value [Line Items] | ||
Expected dividend yield | 3.00% | [1] |
Risk-free interest rate | 1.61% | [2] |
Expected volatility | 50.25% | [3] |
Expected life | 4 years 1 month 13 days | [4] |
Share price per ordinary share on valuation date (in Dollars per share) | $ 26.64 | |
[1] | Expected dividend yield: The expected dividend yield was estimated by the Company based on its historical dividend policy. | |
[2] | Risk-free interest rate: Risk-free interest rate was estimated based on the 5-year US Government Bond yield as of the valuation date. | |
[3] | Expected volatility: The volatility of the underlying ordinary shares was estimated based on the annualized standard deviation of the continuously compounded rate of return on the daily average adjusted share price of the Group as of the Valuation Date. | |
[4] | Expected life: The expected life was the contractual life of the 521 plan. |
Share-based Compensation (Det_6
Share-based Compensation (Details) - Schedule of total outstanding options under 521 Plan - 521 Plan [Member] | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / shares | |
Number of options | ||||
Share-based Compensation (Details) - Schedule of total outstanding options under 521 Plan [Line Items] | ||||
Number of options, Outstanding | shares | 150,000,000 | |||
Number of options, Granted | shares | 130,000,000 | 150,000,000 | ||
Number of options, Exercised | shares | ||||
Number of options, Forfeited | shares | ||||
Number of options, Outstanding | shares | 280,000,000 | 150,000,000 | ||
Weighted average exercise price in US$ | ||||
Share-based Compensation (Details) - Schedule of total outstanding options under 521 Plan [Line Items] | ||||
Weighted average exercise price, Outstanding | $ / shares | $ 1.5 | |||
Weighted average exercise price, Granted | $ / shares | 1.3 | 1.5 | ||
Weighted average exercise price, Exercised | $ / shares | ||||
Weighted average exercise price, Forfeited | $ / shares | ||||
Weighted average exercise price, Outstanding | $ / shares | $ 1.4 | $ 1.5 | ||
Weighted average remaining contractual life (Years) | ||||
Share-based Compensation (Details) - Schedule of total outstanding options under 521 Plan [Line Items] | ||||
Weighted average remaining contractual life (Years), Outstanding | 5 years | |||
Weighted average remaining contractual life (Years), Granted | 5 years | 5 years | ||
Weighted average remaining contractual life (Years), Exercised | ||||
Weighted average remaining contractual life (Years), Forfeited | ||||
Weighted average remaining contractual life (Years), Outstanding | 4 years | |||
Aggregate Intrinsic Value RMB | ||||
Share-based Compensation (Details) - Schedule of total outstanding options under 521 Plan [Line Items] | ||||
Aggregate Intrinsic Value, Outstanding | ¥ | ||||
Aggregate Intrinsic Value, Granted | ¥ | ||||
Aggregate Intrinsic Value, Exercised | ¥ | ||||
Aggregate Intrinsic Value, Forfeited | ¥ | ||||
Aggregate Intrinsic Value, Outstanding | ¥ |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | ||
Total of ordinary shares | 50,223,820 | 178,475,480 |
Total of american depository shares | 2,511,191 | |
Share buyback program average price per ADS (in Dollars per share) | $ 28.2 | |
Value repurchased under the program (in Dollars) | $ 200,000 | |
Shares repurchased under the program | 2,511,191 | |
Value of stock repurchase (in Dollars) | $ 69,525 | |
Ordinary shares repurchased from open market | 28,475,480 | |
Ordinary shares purchased from master trend | 150,000,000 | |
Shares were repurchased from master trend per ADS (in Dollars per share) | $ 29 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Restricted net assets | ¥ 1,410,432 | ¥ 1,382,574 |
Restricted share capital and statutory reserves of VIEs |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenue and expenses are not allocated to reportable segments and corporate related items ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Net revenues | ||||
Total net revenues | ¥ 3,706,003 | $ 532,334 | ¥ 3,471,263 | ¥ 4,088,473 |
Operating costs and expenses | ||||
Total operating costs and expenses | (3,236,640) | (464,914) | (3,045,520) | (3,815,337) |
Income (loss) from operations | ||||
Income (loss) from operations | 469,363 | 67,420 | 425,743 | 273,136 |
Agency Segment [Member] | ||||
Net revenues | ||||
Total net revenues | 3,335,397 | 479,100 | 3,143,873 | 3,780,217 |
Operating costs and expenses | ||||
Total operating costs and expenses | (2,797,651) | (401,857) | (2,614,593) | (3,408,499) |
Income (loss) from operations | ||||
Income (loss) from operations | 537,746 | 77,243 | 529,280 | 371,718 |
Claims Adjusting Segment [Member] | ||||
Net revenues | ||||
Total net revenues | 370,606 | 53,234 | 327,390 | 308,256 |
Operating costs and expenses | ||||
Total operating costs and expenses | (361,474) | (51,923) | (316,899) | (308,321) |
Income (loss) from operations | ||||
Income (loss) from operations | 9,132 | 1,311 | 10,491 | (65) |
Other Segments [Member] | ||||
Operating costs and expenses | ||||
Total operating costs and expenses | (77,515) | (11,134) | (114,028) | (98,517) |
Income (loss) from operations | ||||
Income (loss) from operations | ¥ (77,515) | $ (11,134) | ¥ (114,028) | ¥ (98,517) |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of segment assets ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Segment assets | |||
Total assets | ¥ 3,440,843 | $ 494,246 | ¥ 3,866,611 |
Agency Segment [Member] | |||
Segment assets | |||
Total assets | 1,133,121 | 162,763 | 816,596 |
Claims Adjusting Segment [Member] | |||
Segment assets | |||
Total assets | 276,885 | 39,772 | 266,077 |
Other Segments [Member] | |||
Segment assets | |||
Total assets | ¥ 2,030,837 | $ 291,711 | ¥ 2,783,938 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended |
Mar. 18, 2020$ / shares | |
Subsequent Events (Details) [Line Items] | |
Dividend per ordinary share | $ 0.015 |
Dividend per ADS share | $ 0.30 |
Dividend paid date | Apr. 2, 2020 |
Dividend nature, description | the Group announced that its Board of Directors has approved the management’s proposal for annual dividend of US$1.0 per ADS, or US$0.05 per ordinary share for the fiscal year of 2020. The dividend will be paid on a quarterly basis, with US$0.25 per ADS, or US$0.0125 per ordinary share, payable in each of the next four quarters. |
Condensed Financial Statement_2
Condensed Financial Statements of the Company (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | ||
Maximum percentage of consolidated net assets | 25.00% | |
Restricted capital and reserves | ¥ 1,410,432 | ¥ 1,382,574 |
Condensed Financial Statement_3
Condensed Financial Statements of the Company (Details) - Statements of Financial Position - Parent Company [Member] - Parent Company [Member] ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | ¥ 32,314 | $ 4,642 | ¥ 366,862 |
Short term investments | 36,416 | 5,231 | |
Other receivables and amounts due from subsidiaries and affiliates | 1,378,556 | 198,017 | 1,119,686 |
Total current assets | 1,447,286 | 207,890 | 1,486,548 |
Investment in subsidiaries | 2,855,907 | 410,225 | 2,638,621 |
Investment in an affiliate | 10,670 | 1,533 | 11,350 |
Total assets | 4,313,863 | 619,648 | 4,136,519 |
Other payables and accrued expenses | 1,330,068 | 191,052 | 1,337,039 |
Amounts due to subsidiaries | 785,608 | 112,846 | 27,969 |
Refundable share rights deposits (Including refundable share rights deposits of the consolidated VIE of RMB138,328 and RMB266,901 as of December 31, 2018 and 2019, respectively) | 266,901 | 38,338 | 138,328 |
Total liabilities | 2,382,577 | 342,236 | 1,503,336 |
Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued 1,301,915,084 and 1,252,367,264 shares, of which 1,123,475,604 and 1,073,891,784 shares were outstanding as of December 31, 2018 and 2019, respectively) | 9,235 | 1,327 | 9,583 |
Treasury stock | (1,146) | (165) | (1,156) |
Additional paid-in capital | 393 | 56 | 437,176 |
Retained earnings | 1,988,233 | 285,592 | 2,280,870 |
Accumulated other comprehensive loss | (65,429) | (9,398) | (93,290) |
Total equity | 1,931,286 | 277,412 | 2,633,183 |
Total liabilities and shareholders’ equity | ¥ 4,313,863 | $ 619,648 | ¥ 4,136,519 |
Condensed Financial Statement_4
Condensed Financial Statements of the Company (Details) - Statements of Financial Position (Parentheticals) - Parent Company [Member] - Parent Company [Member] ¥ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / shares |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Refundable share rights deposits (in Yuan Renminbi) | ¥ | ¥ 266,901 | ¥ 138,328 | ||
Ordinary shares, authorized | 10,000,000,000 | 10,000,000,000 | ||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Ordinary shares, issued | 1,252,367,264 | 1,301,915,084 | ||
Ordinary shares, outstanding | 1,073,891,784 | 1,123,475,604 |
Condensed Financial Statement_5
Condensed Financial Statements of the Company (Details) - Statements of Income and Comprehensive Income - Parent Company [Member] - Parent Company [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | ¥ (6,480) | $ (931) | ¥ (6,973) | ¥ (4,435) |
Selling expenses | (281) | (40) | ||
Interest income | 1,767 | 254 | 10,624 | 2,229 |
Equity in earnings of subsidiaries and an affiliate | 193,926 | 27,856 | 606,264 | 451,434 |
Net Income attributable to the Company’s shareholders | 188,932 | 27,139 | 609,915 | 449,228 |
Foreign currency translation adjustments | 10,178 | 1,462 | (10,194) | (10,664) |
Unrealized net gains (loss) on available-for-sale investments | 17,231 | 2,475 | (632) | |
Share of other comprehensive gain (loss) of affiliates | 452 | 65 | (1,763) | 1,263 |
Comprehensive income attributable to the Company’s shareholders | ¥ 216,793 | $ 31,141 | ¥ 597,958 | ¥ 439,195 |
Condensed Financial Statement_6
Condensed Financial Statements of the Company (Details) - Statements of Shareholders’ Equity - Parent Company [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | |
Common Stock [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Balance | ¥ 9,583 | ¥ 9,571 | ¥ 8,658 | |
Balance (in Shares) | shares | 1,301,951,084 | 1,301,951,084 | 1,300,191,084 | 1,165,072,926 |
Exercise of share options | ¥ 4 | ¥ 12 | ¥ 458 | |
Exercise of share options (in Shares) | shares | 640,000 | 640,000 | 1,760,000 | 69,118,158 |
Cancellation of ordinary shares | ¥ (352) | |||
Cancellation of ordinary shares (in Shares) | shares | (50,223,820) | (50,223,820) | ||
Private placement | ¥ 455 | |||
Private placement (in Shares) | shares | 66,000,000 | |||
Balance | ¥ 9,235 | ¥ 9,583 | ¥ 9,571 | |
Balance (in Shares) | shares | 1,252,367,264 | 1,252,367,264 | 1,301,951,084 | 1,300,191,084 |
Balance (in Dollars) | $ | $ 1,327 | |||
Balance (in Shares) | shares | 1,252,367,264 | 1,252,367,264 | ||
Additional Paid-in Capital [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Balance | ¥ 437,176 | ¥ 2,429,559 | ¥ 2,301,655 | |
Exercise of share options | 3,274 | 64,488 | ||
Repurchase of ordinary shares from shareholder | (1,464,163) | |||
Repurchase of ordinary shares from open market | (437,176) | (251,024) | ||
Share-based compensation | 393 | |||
Private placement | 200,632 | |||
Distribution of dividend | (280,470) | (137,216) | ||
Balance | 393 | 437,176 | 2,429,559 | |
Balance (in Dollars) | $ | $ 56 | |||
Retained Earnings [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Balance | 2,280,870 | 1,779,746 | 1,330,518 | |
Net income | 188,932 | 609,915 | 449,228 | |
Repurchase of ordinary shares from open market | (46,497) | |||
Distribution of dividend | (435,072) | (108,791) | ||
Balance | 1,988,233 | 2,280,870 | 1,779,746 | |
Balance (in Dollars) | $ | 285,592 | |||
AOCI Attributable to Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Balance | (93,290) | (93,108) | (65,844) | |
Foreign currency translation | 10,178 | 1,581 | (27,895) | |
Unrealized net gains (loss) on available-for-sale investments | 17,231 | (632) | ||
Share of other comprehensive income (loss) of affiliates | 452 | (1,763) | 1,263 | |
Balance | (65,429) | (93,290) | (93,108) | |
Balance (in Dollars) | $ | (9,398) | |||
Subscription Receivables [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Balance | (248,717) | (288,135) | ||
Foreign currency translation | (11,775) | 17,231 | ||
Subscription receipt | 260,492 | 22,187 | ||
Balance | (248,717) | |||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Balance | 2,633,183 | 3,877,051 | 3,286,852 | |
Net income | 188,932 | 609,915 | 449,228 | |
Foreign currency translation | 10,178 | (10,194) | (10,664) | |
Exercise of share options | 4 | 3,286 | 64,946 | |
Repurchase of ordinary shares from shareholder | (1,465,123) | |||
Repurchase of ordinary shares from open market | (484,015) | (251,220) | ||
Share-based compensation | 393 | |||
Private placement | 201,087 | |||
Subscription receipt | 260,492 | 22,187 | ||
Distribution of dividend | (435,072) | (389,261) | (137,216) | |
Unrealized net gains (loss) on available-for-sale investments | 17,231 | (632) | ||
Share of other comprehensive income (loss) of affiliates | 452 | (1,763) | 1,263 | |
Balance | 1,931,286 | 2,633,183 | ¥ 3,877,051 | |
Balance (in Dollars) | $ | $ 277,412 | |||
Treasury Stock [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Balance | ¥ (1,156) | |||
Balance (in Shares) | shares | 178,475,480 | 178,475,480 | ||
Cancellation of ordinary shares | ¥ 352 | |||
Cancellation of ordinary shares (in Shares) | shares | (50,223,820) | (50,223,820) | ||
Repurchase of ordinary shares from shareholder | ¥ (960) | |||
Repurchase of ordinary shares from shareholder (in Shares) | shares | 150,000,000 | |||
Repurchase of ordinary shares from open market | ¥ (342) | ¥ (196) | ||
Repurchase of ordinary shares from open market (in Shares) | shares | 50,223,820 | 50,223,820 | 28,475,480 | |
Balance | ¥ (1,146) | ¥ (1,156) | ||
Balance (in Shares) | shares | 178,475,480 | 178,475,480 | 178,475,480 | |
Balance (in Dollars) | $ | $ (165) | |||
Balance (in Shares) | shares | 178,475,480 | 178,475,480 |
Condensed Financial Statement_7
Condensed Financial Statements of the Company (Details) - Statements of Cash Flows - Parent [Member] - Parent Company [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net income | ¥ 188,932 | $ 27,139 | ¥ 609,915 | ¥ 449,228 |
Equity in earnings of subsidiaries and an affiliate | (193,926) | (27,856) | (606,264) | (451,434) |
Compensation expenses associated with stock options | 393 | 56 | ||
Other receivables | (4) | (1) | 10,644 | (6,489) |
Other payables | 1,214 | 174 | 1,326,440 | (5,693) |
Net cash (used in) from operating activities | (3,391) | (488) | 1,340,735 | (14,388) |
Net cash generated from investing activities | 457,361 | 65,697 | 549,124 | 233,802 |
Net cash generated used in financing activities | (807,779) | (116,030) | (1,682,216) | (50,083) |
Net increase (decrease) in cash and cash equivalents | (353,809) | (50,821) | 207,643 | 169,331 |
Cash and cash equivalents and restricted cash at beginning of year | 366,862 | 52,696 | 169,413 | 10,746 |
Cash and cash equivalents and restricted cash at end of year | 32,314 | 4,642 | 366,862 | 169,413 |
Purchase of short-term investments | (178,371) | (25,620) | ||
Changes in investment in subsidiaries and an affiliate | (6,623) | (952) | 81,129 | 98,399 |
Advances to subsidiaries and affiliates | 498,774 | 71,644 | 467,995 | (38,609) |
Proceeds from disposal of short-term investments | 143,581 | 20,625 | ||
Decrease in advances to subsidiaries and affiliates | 174,012 | |||
Proceeds on exercise of stock options | 4 | 1 | 3,286 | 64,946 |
Proceeds of employee and grantee subscriptions | 111,304 | 15,988 | 211,054 | 22,187 |
Dividends paid | (435,072) | (62,494) | (326,725) | (137,216) |
Repurchase of ordinary shares from open market | (484,015) | (69,525) | (251,220) | |
Repurchase of ordinary shares from shareholder | (1,318,611) | |||
Effect of exchange rate changes on cash and cash equivalents | ¥ 19,261 | $ 2,767 | ¥ (10,194) | ¥ (10,664) |