Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | FANHUA INC. |
Entity Central Index Key | 1,413,855 |
Amendment Flag | false |
Trading Symbol | fanh |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,016 |
Document Period End Date | Dec. 31, 2016 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,165,072,926 |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 240,242 | $ 34,602 | ¥ 1,115,266 |
Restricted cash | 33,737 | 4,859 | 17,585 |
Short term investments | 2,797,842 | 402,973 | 2,026,256 |
Accounts receivable, net of allowance for doubtful accounts of RMB13,246 and RMB16,792 (US$2,419) as of December 31, 2015 and 2016, respectively (Note 2(e)) | 502,975 | 72,443 | 241,264 |
Insurance premium receivables | 187 | 27 | 1,526 |
Other receivables (Note 4) | 49,186 | 7,084 | 51,828 |
Amounts due from related parties (Note 15) | 32,495 | 4,680 | 36,508 |
Other current assets | 37,900 | 5,459 | 22,828 |
Total current assets | 3,694,564 | 532,127 | 3,513,061 |
Non-current assets: | |||
Property, plant, and equipment, net (Note 5) | 31,414 | 4,525 | 34,145 |
Goodwill, net (Note 6) | 122,077 | 17,583 | 133,474 |
Intangible assets, net (Note 2(g)) | 59,472 | 8,566 | 19,708 |
Deferred tax assets (Note 11) | 8,277 | 1,192 | 1,658 |
Investments in affiliates (Note 7) | 294,576 | 42,427 | 284,194 |
Other non-current assets | 28,188 | 4,060 | 28,188 |
Total non-current assets | 544,004 | 78,353 | 501,367 |
Total assets | 4,238,568 | 610,480 | 4,014,428 |
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated variable interest entities ("VIEs") without recourse to Fanhua Inc. of RMB4,141 and nil as of December 31, 2015 and 2016, respectively) | 278,188 | 40,067 | 160,891 |
Insurance premium payables (including insurance premium payables of the consolidated VIEs without recourse to Fanhua Inc. of RMB1,680 and nil as of December 31, 2015 and 2016, respectively) | 5,491 | 791 | 5,187 |
Other payables and accrued expenses (including other payables and accrued expenses of the consolidated VIEs without recourse to Fanhua Inc. of RMB5,720 and nil as of December 31, 2015 and 2016, respectively) (Note 9) | 314,051 | 45,233 | 213,562 |
Accrued payroll (including accrued payroll of the consolidated VIEs without recourse to Fanhua Inc. of RMB1,625 and nil as of December 31, 2015 and 2016, respectively) | 59,201 | 8,527 | 48,150 |
Income taxes payable (including income taxes payable of the consolidated VIEs without recourse to Fanhua Inc. of RMB1,152 and nil as of December 31, 2015 and 2016, respectively) | 90,188 | 12,990 | 60,658 |
Total current liabilities | 747,119 | 107,608 | 488,448 |
Non-current liabilities: | |||
Other tax liabilities (Note 11) | 72,778 | 10,482 | 70,354 |
Deferred tax liabilities (Note 11) | 14,577 | 2,099 | 22,057 |
Total non-current liabilities | 87,355 | 12,581 | 92,411 |
Total liabilities | 834,474 | 120,189 | 580,859 |
Commitments and contingencies (Note 16) | |||
Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued and outstanding shares: 1,155,059,526 and 1,165,072,926 as of December 31, 2015 and 2016, respectively) (Note 12) | 8,658 | 1,247 | 8,592 |
Additional paid-in capital | 2,301,655 | 331,507 | 2,454,244 |
Statutory reserves (Note 14) | 311,590 | 44,878 | 302,115 |
Retained earnings | 1,018,928 | 146,756 | 871,356 |
Accumulated other comprehensive loss | (65,844) | (9,483) | (50,048) |
Subscription receivables (Note 2(m)) | (288,135) | (41,500) | (268,829) |
Total shareholders' equity | 3,286,852 | 473,405 | 3,317,430 |
Noncontrolling interests | 117,242 | 16,886 | 116,139 |
Total equity | 3,404,094 | 490,291 | 3,433,569 |
Total liabilities and equity | ¥ 4,238,568 | $ 610,480 | ¥ 4,014,428 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares |
Allowance for doubtful accounts | ¥ 16,792 | $ 2,419 | ¥ 13,246 |
Accounts payable | 278,188 | 40,067 | 160,891 |
Insurance premium payables | 5,491 | 791 | 5,187 |
Other payables and accrued expenses | 314,051 | 45,233 | 213,562 |
Accrued payroll | 59,201 | 8,527 | 48,150 |
Income taxes payable | ¥ 90,188 | $ 12,990 | ¥ 60,658 |
Ordinary shares, Authorized shares | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Ordinary shares, par value | (per share) | ¥ 0.001 | $ 0.001 | ¥ 0.001 |
Ordinary shares, issued | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 |
Ordinary shares, outstanding | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 |
VIEs | |||
Accounts payable | ¥ 4,141 | ||
Insurance premium payables | 1,680 | ||
Other payables and accrued expenses | 5,720 | ||
Accrued payroll | 1,625 | ||
Income taxes payable | ¥ 1,152 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Agency | ¥ 3,746,471 | $ 539,604 | ¥ 2,155,264 | ¥ 1,624,410 |
Brokerage | 617,738 | 88,973 | 369,198 | 232,620 |
Claims adjusting | 336,413 | 48,454 | 303,846 | 292,981 |
Total net revenues | 4,700,622 | 677,031 | 2,828,308 | 2,150,011 |
Operating costs and expenses: | ||||
Agency | (2,906,791) | (418,665) | (1,675,261) | (1,261,888) |
Brokerage | (503,925) | (72,580) | (293,875) | (185,593) |
Claims adjusting | (199,810) | (28,779) | (181,370) | (167,676) |
Total Operating costs | (3,610,526) | (520,024) | (2,150,506) | (1,615,157) |
Selling expenses | (588,822) | (84,808) | (143,279) | (107,263) |
General and administrative expenses | (487,234) | (70,176) | (456,001) | (396,692) |
Total operating costs and expenses | (4,686,582) | (675,008) | (2,749,786) | (2,119,112) |
Income from operations | 14,040 | 2,023 | 78,522 | 30,899 |
Other income, net: | ||||
Investment income | 115,275 | 16,603 | 65,624 | 44,240 |
Interest income | 6,931 | 998 | 57,234 | 82,251 |
Other, net | 11,452 | 1,649 | 13,042 | 2,330 |
Income before income taxes and income of affiliates | 147,698 | 21,273 | 214,422 | 159,720 |
Income tax expense | (28,353) | (4,084) | (25,865) | (24,289) |
Share of income of affiliates | 48,293 | 6,955 | 26,924 | 30,649 |
Net income | 167,638 | 24,144 | 215,481 | 166,080 |
Less: Net income attributable to the noncontrolling interests | 10,591 | 1,526 | 5,395 | 4,320 |
Net income attributable to the Fanhua's shareholders | ¥ 157,047 | $ 22,618 | ¥ 210,086 | ¥ 161,760 |
Net income per share: | ||||
Basic | (per share) | ¥ 0.14 | $ 0.02 | ¥ 0.18 | ¥ 0.16 |
Diluted | (per share) | 0.13 | 0.02 | 0.17 | 0.16 |
Net income per American Depositary Shares ("ADS"): | ||||
Basic | (per share) | 2.71 | 0.39 | 3.65 | 3.22 |
Diluted | (per share) | ¥ 2.6 | $ 0.37 | ¥ 3.49 | ¥ 3.19 |
Shares used in calculating net income per share: | ||||
Basic | 1,160,592,325 | 1,160,592,325 | 1,151,705,374 | 1,005,842,212 |
Diluted | 1,208,821,796 | 1,208,821,796 | 1,203,323,521 | 1,012,591,387 |
Net income | ¥ 167,638 | $ 24,144 | ¥ 215,481 | ¥ 166,080 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 2,177 | 314 | 6,153 | 6,008 |
Changes in fair value of short term investments | 632 | 91 | ||
Share of other comprehensive income (loss) of affiliate | (37,911) | (5,460) | 37,567 | |
Comprehensive income | 132,536 | 19,089 | 259,201 | 172,088 |
Less: Comprehensive income attributable to the noncontrolling interests | 10,591 | 1,526 | 5,395 | 4,320 |
Comprehensive income attributable to the Fanhua's shareholders | ¥ 121,945 | $ 17,563 | ¥ 253,806 | ¥ 167,768 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Share CapitalCNY (¥)shares | Share CapitalUSD ($)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUSD ($) | Treasury StockCNY (¥)shares | Treasury StockUSD ($)shares | Statutory ReservesCNY (¥) | Statutory ReservesUSD ($) | Retained EarningsCNY (¥) | Retained EarningsUSD ($) | Accumulated Other Comprehensive LossCNY (¥) | Accumulated Other Comprehensive LossUSD ($) | Subscription ReceivablesCNY (¥) | Subscription ReceivablesUSD ($) | Noncontrolling InterestsCNY (¥) | Noncontrolling InterestsUSD ($) |
Balance at Dec. 31, 2013 | ¥ 3,146,762 | ¥ 7,624 | ¥ 2,329,962 | ¥ 182,740 | ¥ 618,885 | ¥ (111,114) | ¥ 118,665 | |||||||||||
Balance, shares at Dec. 31, 2013 | shares | 998,861,526 | 998,861,526 | ||||||||||||||||
Net income | 166,080 | 161,760 | 4,320 | |||||||||||||||
Issue new shares to employees | ¥ 928 | 256,563 | (257,491) | |||||||||||||||
Issue new shares to employees, shares | shares | 150,000,000 | 150,000,000 | ||||||||||||||||
Foreign currency translation | 6,008 | 6,008 | ||||||||||||||||
Exercise of share options | 3,183 | ¥ 11 | 3,172 | |||||||||||||||
Exercised of share options, shares | shares | 1,704,380 | 1,704,380 | ||||||||||||||||
Share-based compensation | 23,598 | 23,598 | ||||||||||||||||
Provision for statutory reserves | 15,682 | (15,682) | ||||||||||||||||
Acquisition of additional shares in a subsidiary | (11,371) | (11,894) | 523 | |||||||||||||||
Balance at Dec. 31, 2014 | 3,334,260 | ¥ 8,563 | 2,601,401 | 198,422 | 764,963 | (105,106) | (257,491) | 123,508 | ||||||||||
Balance, shares at Dec. 31, 2014 | shares | 1,150,565,906 | 1,150,565,906 | ||||||||||||||||
Net income | 215,481 | 210,086 | 5,395 | |||||||||||||||
Foreign currency translation | 6,153 | 17,491 | (11,338) | |||||||||||||||
Repurchase of ordinary shares | (6,276) | ¥ (6,276) | ||||||||||||||||
Repurchase of ordinary shares, shares | shares | (2,261,100) | (2,261,100) | ||||||||||||||||
Exercise of share options | 1,518 | ¥ 29 | (4,787) | ¥ 6,276 | ||||||||||||||
Exercised of share options, shares | shares | 4,493,620 | 4,493,620 | 2,261,100 | 2,261,100 | ||||||||||||||
Share-based compensation | 17,653 | 17,653 | ||||||||||||||||
Provision for statutory reserves | 104,414 | (104,414) | ||||||||||||||||
Acquisition of additional shares in a subsidiary | (187,810) | (160,023) | (27,787) | |||||||||||||||
Disposal of subsidiaries | 473 | (721) | 721 | 473 | ||||||||||||||
Dividends distributed to noncontrolling interest | (2,450) | (2,450) | ||||||||||||||||
Capital injection by noncontrolling interests | 17,000 | 17,000 | ||||||||||||||||
Share of other comprehensive loss of affiliates | 37,567 | 37,567 | ||||||||||||||||
Balance at Dec. 31, 2015 | 3,433,569 | ¥ 8,592 | $ 1,326 | 2,454,244 | $ 378,870 | 302,115 | $ 46,639 | 871,356 | $ 134,514 | (50,048) | $ (7,726) | (268,829) | $ (41,500) | 116,139 | $ 17,929 | |||
Balance, shares at Dec. 31, 2015 | shares | 1,155,059,526 | 1,155,059,526 | ||||||||||||||||
Net income | 167,638 | 157,047 | 10,591 | |||||||||||||||
Foreign currency translation | 2,177 | $ 314 | 21,483 | (19,306) | ||||||||||||||
Exercise of share options | 1,144 | ¥ 17 | 1,127 | |||||||||||||||
Exercised of share options, shares | shares | 2,597,400 | 2,597,400 | ||||||||||||||||
Share-based compensation | 4,937 | 4,937 | ||||||||||||||||
Provision for statutory reserves | 9,909 | (9,909) | ||||||||||||||||
Acquisition of additional shares in a subsidiary | (179,223) | ¥ 49 | (174,779) | (4,493) | ||||||||||||||
Acquisition of additional shares in a subsidiary, shares | shares | 7,416,000 | 7,416,000 | ||||||||||||||||
Disposal of subsidiaries | 11,131 | 16,126 | (434) | 434 | (4,995) | |||||||||||||
Changes in fair value of short term investments | 632 | 632 | ||||||||||||||||
Share of other comprehensive loss of affiliates | (37,911) | (37,911) | ||||||||||||||||
Balance at Dec. 31, 2016 | ¥ 3,404,094 | $ 490,291 | ¥ 8,658 | $ 1,247 | ¥ 2,301,655 | $ 331,507 | ¥ 311,590 | $ 44,878 | ¥ 1,018,928 | $ 146,756 | ¥ (65,844) | $ (9,483) | ¥ (288,135) | $ (41,500) | ¥ 117,242 | $ 16,886 | ||
Balance, shares at Dec. 31, 2016 | shares | 1,165,072,926 | 1,165,072,926 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
OPERATING ACTIVITIES | ||||
Net income | ¥ 167,638 | $ 24,144 | ¥ 215,481 | ¥ 166,080 |
Adjustments to reconcile net income to net cash generated from operating activities: | ||||
Depreciation | 13,492 | 1,943 | 18,383 | 28,235 |
Amortization of intangible assets | 20,232 | 2,914 | 11,571 | 16,826 |
Allowance for doubtful receivables | 2,381 | 343 | 7,597 | 6,060 |
Compensation expenses associated with stock options | 4,937 | 711 | 17,653 | 23,598 |
Loss (gain) on disposal of property, plant and equipment | 115 | 17 | (126) | 292 |
Investment income | (80,599) | (11,609) | (31,092) | (15,419) |
Gain on disposal of subsidiaries | (3,082) | (444) | ||
Share of income of affiliates | (48,293) | (6,955) | (26,924) | (30,649) |
Deferred taxes | (14,736) | (2,122) | (1,067) | (1,318) |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (271,275) | (39,072) | (61,356) | 16,036 |
Insurance premium receivables | 1,339 | 193 | (1,054) | (225) |
Other receivables | (6,395) | (921) | 7,222 | 14,700 |
Amounts due from related parties | 3,727 | 537 | (8,088) | (2,513) |
Other current assets | (15,074) | (2,172) | (4,920) | 2,900 |
Accounts payable | 127,015 | 18,294 | 33,026 | 27,453 |
Insurance premium payables | 304 | 44 | 2,244 | (1,116) |
Other payables and accrued expenses | 142,720 | 20,556 | 71,506 | 3,911 |
Accrued payroll | 11,446 | 1,649 | 9,143 | 638 |
Income taxes payable | 29,530 | 4,253 | 6,433 | (1,768) |
Other tax liabilities | 2,424 | 349 | 15,672 | 7,928 |
Net cash generated from operating activities | 87,846 | 12,652 | 281,304 | 261,649 |
Cash flows used in investing activities: | ||||
Purchase of short term investments | (9,515,500) | (1,370,517) | (2,308,956) | (546,600) |
Proceeds from disposal of short term investments | 8,825,355 | 1,271,116 | 994,839 | 118,208 |
Purchase of property, plant and equipment | (11,885) | (1,712) | (6,663) | (6,209) |
Purchase of intangible asset | (60,000) | (8,642) | (118) | |
Proceeds from disposal of property and equipment | 48 | 7 | 539 | 614 |
Acquisition of subsidiaries, net of cash acquired of RMB1,291, nil and nil in 2014, 2015 and 2016, respectively | (62,709) | |||
Disposal of subsidiaries, net of cash disposed of nil, RMB4,544 and RMB1,336 (US$192) in 2014, 2015 and 2016, respectively | 29,376 | 4,231 | 15,476 | |
Decrease (increase) in restricted cash | (16,152) | (2,326) | (10,107) | 3,622 |
Decrease in other receivables | 16,120 | 113,632 | ||
Additions in investments in non-current assets | (13,980) | (7,019) | ||
Return of investment in non-current assets | 3,900 | |||
(Increase) decrease in amounts due from related parties | 181,181 | (62,716) | ||
Net cash used in investing activities | (748,758) | (107,843) | (1,131,551) | (445,395) |
Cash flows used in financing activities: | ||||
Acquisition of additional interests in subsidiaries | (213,534) | (30,755) | (153,500) | (11,000) |
Capital injection by noncontrolling interests | 17,000 | |||
Payment for deferred consideration of acquisition of a subsidiary | (4,185) | (603) | ||
Dividend distributed to noncontrolling interest | (2,450) | |||
Proceeds on exercise of stock options | 1,144 | 165 | 1,518 | 3,183 |
Repurchase of ordinary shares | (6,276) | |||
Net cash used in financing activities | (216,575) | (31,193) | (143,708) | (7,817) |
Net decrease in cash and cash equivalents | (877,487) | (126,384) | (993,955) | (191,563) |
Cash and cash equivalents at beginning of year | 1,115,266 | 160,632 | 2,103,068 | 2,288,623 |
Effect of exchange rate changes on cash and cash equivalents | 2,463 | 354 | 6,153 | 6,008 |
Cash and cash equivalents at end of year | 240,242 | 34,602 | 1,115,266 | 2,103,068 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | ||||
Income taxes paid | ¥ 4,133 | $ 595 | ¥ 4,383 | ¥ 19,135 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Statement of Cash Flows [Abstract] | ||||
Acquisition of subsidiaries, net of cash acquired | ¥ 1,291 | |||
Disposal of subsidiaries, net of cash disposed | ¥ 1,336 | $ 192 | ¥ 4,544 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | (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. The Company, its subsidiaries and variable interest entities (the “VIEs”) are collectively referred to as the “Group”. The Group is principally engaged in the provision of insurance brokerage and 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, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (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 majority-owned 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. (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 period. Significant accounting estimates reflected in the Group’s consolidated financial statements included valuation of goodwill, allowance for doubtful receivables, and the valuation of non-controlling interests of the subsidiaries at acquisition dates. 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 and broker, the Group collects premiums from certain insureds and remits the premiums to the appropriate insurance companies. Accordingly, as reported in the consolidated balance sheets, “premiums” are receivables from the insureds. 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 balance sheets. Also included in the restricted cash represents guarantee deposits required by China Insurance Regulatory Commission (“CIRC”) in order to protect insurance premium appropriation by insurance agency as well as entrustment deposit received from the members of eHuzhu, an online mutual aid platform operated by the Group in an escrow account of RMB12,398 and RMB28,246 (US$4,068) as of December 31, 2015 and 2016, 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. The majority of the investments are measured at costs which approximate their fair values in the consolidated balance sheets, except for short term investments on certain private fund. The Group benchmark the costs against fair values of comparable investments as of balance sheet date, and categorized all fair value measures of short term investments as level 2 of the fair value hierarchy. No impairment loss on short term investments was identified for each of the years ended December 31, 2014, 2015 and 2016. (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, brokerage 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. 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, 2015 2016 RMB RMB Accounts receivable 254,510 519,767 Allowance for doubtful accounts (13,246 ) (16,792 ) Accounts receivable, net 241,264 502,975 The following table summarizes the movement of the Group’s allowance for doubtful accounts for accounts receivables: 2014 2015 2016 RMB RMB RMB Balance at the beginning of the year 12,655 16,587 13,246 Provision for doubtful accounts 3,932 4,991 3,700 Write-offs — (8,332 ) (154 ) Balance at the end of the year 16,587 13,246 16,792 During the years ended December 31, 2014, 2015, the Group provided allowance for other receivables of RMB2,128, and RMB2,606 A reversal of allowance of other receivable of RMB1,319 was recorded for the year ended December 31, 2016. Insurance premium receivables consist of insurance premium to be collected from the insured, and is 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 (Years) Estimated residual value 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 recognized in the consolidated statement of income and comprehensive income: 2014 2015 2016 RMB RMB RMB Commission and fees under operating costs 5,508 2,056 185 Selling expenses 1,282 1,180 1,590 General and administrative expenses 21,445 15,147 11,717 Depreciation for the year 28,235 18,383 13,492 (g) Goodwill and Other Intangible Assets Goodwill represents the excess of costs over fair value of net assets of businesses acquired. 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 three reporting units for the year ended December 31, 2016. 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 2015 and 2016, 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, 2015 and 2016. 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 intangibles assets of customer relationship is computed using the accelerated method, while amortization for other identifiable intangibles assets is 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 name, trade name, customer relationship, non-compete agreement, agency agreement and license, and software and system. The intangible assets, net consisted of the following: As of December 31, 2015 Useful life (Years) Cost Accumulated amortization Accumulated Impairment loss Net carrying values RMB RMB RMB RMB Brand name Indefinite 20,111 — (16,404 ) 3,707 Trade name 9.4 to 10 8,898 (4,808 ) — 4,090 Customer relationship 4.6 to 9.8 61,186 (51,264 ) (2,953 ) 6,969 Non-compete agreement 3 to 6.25 69,075 (33,819 ) (34,692 ) 564 Agency agreement and license 4.6 to 9.8 20,404 (15,949 ) (77 ) 4,378 Software and system 5 to 10 5,680 (5,680 ) — — 185,354 (111,520 ) (54,126 ) 19,708 As of December 31, 2016 Useful life (Years) Cost Accumulated amortization Accumulated Impairment loss Net carrying values RMB RMB RMB RMB Brand name Indefinite 20,111 — (16,404 ) 3,707 Trade name 9.4 to 10 8,898 (5,750 ) — 3,148 Customer relationship 4.6 to 9.8 60,696 (53,324 ) (2,953 ) 4,419 Non-compete agreement 3 to 6.25 52,195 (22,539 ) (29,515 ) 141 Agency agreement and license 4.6 to 9.8 19,924 (16,790 ) (77 ) 3,057 Software and system 2 to 10 65,680 (20,680 ) — 45,000 227,504 (119,083 ) (48,949 ) 59,472 Aggregate amortization expenses for intangible assets were RMB16,826, RMB11,571 and RMB20,232 for the years ended December 31, 2014, 2015 and 2016, 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 asset with determinable useful live against the estimated undiscounted future cash flows associated with it. 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, 2014, 2015 and 2016, 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 third party, if any. During the years ended December 31, 2014, 2015 and 2016, the Group recognized no impairment losses on its indefinite-lived intangible assets. The estimated amortization expenses for the next five years are: RMB33,850 in 2017, RMB18,667 in 2018, RMB2,502 in 2019, RMB658 in 2020 and RMB88 in 2021. (h) Other Receivables and Other Current Assets Other receivables and other current assets mainly consist of receivables from third parties, advances, deposits, interest receivables, value-added tax recoverable and prepaid expenses. (i) Investment in Affiliates Investments in affiliates are accounted for using the equity method. The Group does not control the affiliates but exerts significant influence over them. (j) Other Non-current Assets Other non-current assets represent investments in equity security of private companies which the group owns equity interest of less than 20%, over which the Group exerts no significant influence and are measured initially at cost. (k) Impairment of Long-Lived Assets Property, plant, and equipment, and purchased intangible assets with definite life, subject to amortization, 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 by the amount by which the carrying amount 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 Companies”) 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 Companies 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 Companies. 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. Please refer to Note 12 for details. The interest rate is determined with reference to fair market prices and therefore no interest-related compensation expense is recorded. Upon the expiry of the loan agreement on December 17, 2016, the repayment of the loan was further extended to June 2018 and the loan is interest bearing at 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 balance sheets as of December 31, 2015 and 2016. Interest income accruing from the loan is recognized as non-operating income. None of the loans to employees have been repaid and total balance thereof as of December 31, 2016 was RMB288,135 (US$41,500). (n) Treasury shares Treasury shares represent ordinary shares repurchased by the Group that are no longer outstanding and are held by the Group. The repurchase of ordinary shares is accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stocks. During the years ended December 31, 2014, 2015 and 2016, the Group had repurchased total of nil, 2,261,100 and nil shares from the market for a cash consideration of nil, RMB6,276 and nil. As of December 31, 2015, all the treasury stock had been re-issued for the exercise of stock options. (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 bases 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. Since 2014, the Group has adopted FASB ASU No. 2013-11—Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amount. The Group adopted ASU 2015-17 on a prospective basis in 2016. Accordingly, all net deferred tax assets are presented as non-current deferred tax assets as of December 31, 2016 in the accompanying Consolidated Balance Sheets and Note 11. (p) Share-based Compensation Employee share-based compensation All forms of share-based payments to employees, including employee stock options and employee stock purchase plans, are treated the same as any other form of compensation by recognizing the related cost in the consolidated statement of income and comprehensive income. 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, and no compensation cost is recognized if the requisite service is not rendered. 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 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 forfeit because a service condition or a performance condition is not satisfied. Share-based compensation expenses of RMB23,598, RMB17,653 and RMB4,937 (US$711) for the years ended December 31, 2014, 2015 and 2016, respectively, were included in the general and administrative expenses. (q) Employee Benefit Plans As stipulated by the regulations of the PRC, the Group’s subsidiaries and VIEs 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 statement of income and comprehensive income as they become payable in accordance with the rules of the above mentioned defined contribution plans. (r) Revenue Recognition The Group’s revenue is derived principally from the provision of insurance brokerage, agency and claims adjusting services. The Group recognizes revenue when all of the following have occurred: persuasive evidence of an agreement with the insurance companies or insurance agencies exists, services have been provided, the fees for such services are fixed or determinable and collectability of the fee is reasonably assured. Insurance agency services are considered to be rendered and completed, and revenue is recognized, 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 four 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. Insurance brokerage services revenue is recognized when the signed insurance policy is in place and the premium is collected from the insured and the commission settlement confirmation is received from insurance companies, because the commission rate for brokerage services is negotiated case by case and the Group’s fees are fixed when such confirmation is received. No allowance for cancellation has been recognized for agency and brokerage businesses 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 deminims 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%, 0.2% and 0.2% of the total commission and fee revenues during years ended December 31, 2014, 2015 and 2016, respectively. For property insurance and life insurance, agency and brokerage services, the Group may receive a performance bonus from insurance companies as agreed and per contract provisions. Once an agency and brokerage group achieves its performance target, 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. The contingent commissions are recorded when a performance target is being achieved. Insurance claims adjusting services are considered to be rendered and completed, and revenue is recognized at the time loss adjusting reports are confirmed being received by insurance companies. The Group has met all the four criteria of revenue recognition when the service is provided and the loss adjusting report is accepted 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. The Group presents revenue net of sales taxes incurred. The sales taxes amounted to RMB120,965, RMB157,234 and RMB81,890 for the years ended December 31, 2014, 2015 and 2016, respectively. According to the Announcement on the VAT Reform Pilot Program of the Transportation and Selected Modern Service Sectors issued by the State Tax Bureau in July 2012, the transportation and some selected modern service sectors, including research and development (R&D) and technical services, information technology services, cultural creative services, logistics support services, tangible personal property leasing services, and assurance and consulting service, should pay value-added tax instead of business tax based on a predetermined timetable (hereinafter referred to as the “VAT Reform”), effective September 1, 2012 for entities in Beijing and November 1, 2012 for entities in Guangdong. The VAT Reform expanded nation-wide from August 1, 2013. Total Value-added taxes paid by the Group during the years ended December 31, 2014, 2015 and 2016 amounted to RMB14,997 RMB16,370 and RMB160,556, respectively. In March 2016, during the fourth session of the 12th National People’s Congress, it was announced that the VAT reform will be fully rolled out and extended to all industries including construction, real estate, financial services and lifestyle services. Subsequently, 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. (s) Marketing campaign expense The Group records its marketing campaign expenses pay to agents as selling expenses. Marketing campaign expenses are incurred to increase the Group’s market share and attract more agents at certain selected regions that the Group strategically plans to capture higher market shares, and are not a necessary expense to sell insurance policies. Such expenses are temporary, with the terms of regional programs ranging from one to three months. Marketing campaign expenses are only recognized when such campaigns are officially announced by the Group to the agents and such campaigns can be terminated at any time without further notice. The Group records the marketing campaign expenses when the related services are provided. During the years ended December 31, 2014, 2015 and 2016, nil, RMB19,503 and RMB299,885 of marketing campaign expenses were included in the selling expenses, respectively. (t) 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, amounts due from related parties, 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, 2015 and 2016, 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 Date Using Description As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments - debt security 2,026,256 — 2,026,256 — Fair Value Measurements at Reporting Date Using Description As of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments - debt security 2,797,842 — 2,797,842 — The majority of debt security consists of investments in trust products and asset management plans that have normally pay a prospective fixed rate of return. These investments are recorded at fair values on a recurring basis. The Group benchmarks the costs against fair values of comparable investments with similar measurement terms, such as prevailing market yields, at the balance sheet date. It is classified as Level 2 of the fair value hierarchy since fair value measurement at reporting date uses significant other observable inputs. The Group did not have Level 3 investments as of December 31, 2015 and 2016. Measured at fair value on a non-recurring basis The Group measures certain assets, including the cost method investments, 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, and impairment charge to the intangible assets is recorded when their carrying amounts may not be recoverable. Goodwill (Note 6) and intangible assets (Note 2(g)) 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). (u) 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 sepa |
Acquisitions, disposals and reo
Acquisitions, disposals and reorganization | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions, disposals and reorganization [Abstract] | |
Acquisitions, disposals and reorganization | (3) Acquisitions, disposals and reorganization Acquisition of additional interests in a subsidiary in 2016 On May 9, 2016, the Group had entered into a share purchase agreement with the minority shareholders of Inscom Holding Limited (“Inscom”) to acquire the remaining 34.9% of the equity interests in Inscom and the outstanding share options of Inscom for a total consideration of approximately RMB198,776 which consists of (i) RMB179,223 in cash after netting off with the receivable of RMB1,836 in relation with the exercise of the Inscom share options, (ii) 7,416,000 ordinary shares of the Company. Upon completion of the acquisition in May 2016, the Group’s equity interests in Inscom increased from 65.1% to 100%. The schedule below discloses the effects of changes in the Group’s ownership in subsidiaries on the Group’s equity: Year ended RMB Net income attributable to the Company’s shareholders 157,047 Decrease in Company’s additional paid-in capital for acquisitions of additional equity interests from noncontrolling interests (174,779 ) Changes from net income attributable to Company’s shareholders and transfers to noncontrolling interests (17,732 ) Disposals of subsidiaries in 2016 During the year, the Group disposed of three subsidiaries, including Shandong Fanhua Mintai Insurance Agency Co., Ltd (“Shandong Mintai”), Guangdong Huajie Insurance Agency Co., Ltd (“Guangdong Huajie”) and Dongguan Zhongxin Insurance Agency Co., Ltd (“Dongguan Zhongxin”), for a total cash consideration of RMB30,712. The Group recognized RMB3,146 gain on disposal of subsidiaries, which was determined by the excess of the sales consideration over the net book value of the subsidiaries at the time of disposal. As of December 31, 2016, the Group has completed the closing procedures of all the above transactions and has effectively transferred its control of Shandong Mintai, Guangdong Huajie and Dongguan Zhongxin to the respective buyers. Acquisitions and reorganization in 2015 Acquisitions of additional interests in subsidiaries During the year ended December 31, 2015, the Group had entered into several agreements to acquire from the non-controlling shareholders of certain of the Group’s subsidiaries the additional interests in those subsidiaries for total consideration of RMB187,810. The Group retains its controlling financial interests before and after the transactions. The schedule below discloses the effects of changes in the Group’s ownership in subsidiaries on the Group’s equity: Year ended RMB Net income attributable to the Company’s shareholders 210,086 Decrease in Company’s additional paid-in capital for acquisitions of additional equity interests from noncontrolling interests (160,023 ) Changes from net income attributable to Company’s shareholders and transfers to noncontrolling interests 50,063 Reorganization As part of the Group’s growth strategy, Fanhua Insurance Surveyors & Loss Adjustors Holding Co., Ltd. (“FHISLA”) filed on application in November 2015 with National Equities Exchanges and Quotations (“NEEQ”) to list on the New Third Board, on emerging over-the-counter stock market for medium-and small-cap companies in China. In June 2015, FHISLA introduced two new investors, Shenzhen Yuanqian Investment Partnership (Limited Partnership) and Shenzhen Longqian Investment Partnership (Limited Partnership), hereinafter referred to as “Yuanqian” and “Longqian”. Yuanqian and Longqian together subscribed for total of 12.4% of the equity interests in FHISLA for a cash consideration of RMB17,000. In July 2015, Fangzhong transferred 44.7% and 42.9% of the equity interests in FHISLA to Guangdong Meidiya Investment Co., Ltd. (“Meidiya Investments”), a subsidiary of the Group, and 22 individuals, among whom were management members of the claims adjusting segment, for total purchase prices of RMB61,200 and RMB58,800, respectively. After the FHISLA Restructuring, the Group owns 44.7% of the equity interests and remains as the largest shareholder. The Group continue to exercise substantial control over FHISLA pursuant to shareholders’ agreements signed with Yuanqian, Longqian and two executive officers of the claims adjusting segment, The Group recorded stock compensation expense of RMB3,400, being the excess of the estimated fair value of Yuanqian, Longqian and 22 individual’s equity interest in FHISLA over the consideration paid by the investors. In July 2015, in order to align the interests of the founding team of Chetong.net with the growth of the platform, Fangzhong, the subsidiary of the Group transferred 80.1% of the equity interests in Chetong Network to the management and employees of Chetong Network for cash consideration of RMB16,020, and 19.9% of the equity interests in Chetong Network to FHISLA for cash consideration of RMB3,980 which approximated its fair value at the disposal date. As a result, FHISLA and the management and employees of Chetong Network currently hold 19.9% and 80.1% of Chetong Network, respectively. |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Other Receivables [Abstract] | |
Other Receivables | (4) Other Receivables Other receivables, net are analyzed as follows: As of December 31, 2015 2016 RMB RMB Advances to staff (i) 6,492 9,250 Advances to entrepreneurial agents (ii) 367 1,270 Rental deposits 7,655 8,041 Interest income receivables (iii) 29,708 17,620 Other 7,606 13,005 51,828 49,186 (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 accrued interest income on bank deposits and accrued interest on subscription receivables (Note 2(m)). |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (5) Property, Plant and Equipment Property, plant and equipment, net, is comprised of the following: As of December 31, 2015 2016 RMB RMB Building 12,317 12,317 Office equipment, furniture and fixtures 128,401 130,172 Motor vehicles 26,341 23,774 Leasehold improvements 9,657 13,146 Total 176,716 179,409 Less: Accumulated depreciation (142,571 ) (147,995 ) Property, plant and equipment, net 34,145 31,414 No impairment for property, plant and equipment was recorded for the years ended December 31, 2014, 2015 and 2016. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill [Abstract] | |
Goodwill | (6) Goodwill The movements in carrying amount of goodwill by reportable segments are as follows: Agency segment RMB Balance as of December 31, 2015 133,474 Eliminated on disposal of a subsidiary (11,397 ) Balance as of December 31, 2016 122,077 The gross amount and accumulated impairment losses by segment as of December 31, 2015 and 2016 are as follows: Agency segment Claims Adjusting segment Total RMB RMB RMB Gross as of January 1, 2015 1,096,102 38,077 1,134,179 Eliminated on disposal of a subsidiary — (16,940 ) (16,940 ) Gross as of December 31, 2015 1,096,102 21,137 1,117,239 Eliminated on disposal of a subsidiary (173,608 ) — (173,608 ) Gross as of December 31, 2016 922,494 21,137 943,631 Accumulated impairment loss as of January 1, 2015 (962,628 ) (38,077 ) (1,000,705 ) Eliminated on disposal of a subsidiary — 16,940 16,940 Accumulated impairment loss as of December 31, 2015 (962,628 ) (21,137 ) (983,765 ) Eliminated on disposal of a subsidiary 162,211 — 162,211 Accumulated impairment loss as of December 31, 2016 (800,417 ) (21,137 ) (821,554 ) Net as of December 31, 2015 133,474 — 133,474 Net as of December 31, 2016 122,077 — 122,077 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, 2014, 2015 and 2016. |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Investments in Affiliates [Abstract] | |
Investments in Affiliates | (7) Investments in Affiliates As of December 31, 2015 and 2016, investments in affiliates represent (i) 40% equity interest in Shanghai Teamhead Automobile Surveyors Co., Ltd. (“Teamhead Automobile”) through one of the Group’s claim adjusting subsidiary; the affiliate is a PRC registered company that provides insurance surveyor and loss adjustors services, and (ii) 20.6% equity interests in Sincere Fame International Limited (“Sincere Fame”) which is financial services company registered in BVI and based in Guangzhou, PRC, primarily engaged in the origination and management of small loans made to individuals, loan repackaging transactions, asset management-related services to financial institutions and mortgage agency services to individuals. During the years ended December 31, 2014, 2015 and 2016, the Group recognized its share of income of affiliates in the amount of RMB30,649, RMB26,924 and RMB48,293 respectively. During the years ended December 31, 2014, 2015 and 2016, the Group recognized its share of other comprehensive income of affiliates in the amount of nil, RMB37,567 and other comprehensive loss of RMB37,911, respectively. The Group has filed Sincere Fame’s consolidated financial statement for the year ended December 31, 2016, as the 20% significant subsidiary test was met for year 2016 in accordance with Rule 3-09 of SEC Regulation S-X. Investments as of December 31, 2015 and 2016 were as follows: As of December 31, 2015 2016 RMB RMB Teamhead Automobile 528 227 Sincere Fame 283,666 294,349 Total 284,194 294,576 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | (8) Variable Interest Entities PRC laws and regulations place certain restrictions on foreign investment in and ownership of insurance agencies, brokerages and on-line business. Accordingly, the Group used to conduct 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 has commenced a restructuring which has resulted in obtaining controlling equity ownership in a majority of its affiliated insurance intermediary companies. In May 2016, the Group had completed its restructuring and all the individual shareholders had transferred their respective equity interest in Shenzhen Dianliang Information Technology Co., Ltd and Shenzhen Xinbao Investment Management Co., Ltd to the subsidiaries of the Company. Thereafter, the Group conducts all of its operations in China through its directly owned subsidiaries. As of December 31, 2015 2016 RMB RMB Total assets 103,740 — Total liabilities 104,795 — Year Ended December 31, 2014 2015 2016 RMB RMB RMB Net Revenues 72,645 108,133 33,679 Net loss (9,636 ) (14,554 ) (4,598 ) Net cash (used in) generated from operating activities (49,782 ) 37,943 (11,536 ) Net cash generated from (used in) investing activities 14,709 (31,682 ) 2,601 Net cash generated from financing activities 33,370 — — |
Other Payables and Accrued Expe
Other Payables and Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Other Payables and Accrued Expenses [Abstract] | |
Other Payables and Accrued Expenses | (9) Other Payables and Accrued Expenses Components of other payables and accrued expenses are as follows: As of December 31, 2015 2016 RMB RMB Business and other tax payable 35,358 59,919 Refundable deposits from employees and agents 13,239 23,472 Professional fees 18,553 45,745 Accrued expenses to third parties (i 42,622 79,847 Payables for addition of office equipment, furniture and fixtures 8,618 8,618 Advance from third parties 35,808 47,534 Insurance compensation claim payable to customers 823 875 Payable for equity acquisition of investment in affiliates/additional equity interest in subsidiaries 38,495 — Contributions from members of eHuzhu mutual aid program 8,995 25,605 Others 11,051 22,436 Total 213,562 314,051 (i) As of December 31, 2015, included in accrued expenses to third parties represented an amount of RMB19,500 payable to Chengdu Puyi Bohui Information Technology Co., Ltd, the shareholder of Fanhua Puyi Fund Sales Co. Ltd. ("Puyi Fund Sales") for marketing activities. The amount was settled in 2016. The Group beneficially owns 15.4% equity interests in Puyi Fund Sales. Other than the amount payable to Puyi Fund Sales, the remaining balance mainly represented the accrued commission payable to the agents. As of December 31, 2016, the balances mainly represented the accrued commission payable to the agents. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | (10) 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. The calculation of contributions for these eligible employees is based on 10% to 22% of the applicable payroll cost according to the specific requirements of the local regime government. 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, 2014, 2015 and 2016, the Group contributed RMB45,467, RMB47,955 and RMB57,090, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | (11) 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 PRC are subject to Income Tax in the PRC. 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, 2014, 2015 and 2016, if applicable. Pursuant to the relevant laws and regulations in the PRC, Litian, Shenzhen Fanhua Software Technology Co., Ltd (“Fanhua Software”), Shenzhen Huazhong United Technology Co., Ltd (“Huazhong”) and Ying Si Kang Information, subsidiaries of the Group, were regarded as software companies 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 Litian, year 2010 was the first profit-making year and accordingly, Litian and has made a 12.5% tax provision for its profits for the years ended December 31, 2012, 2013 and 2014. For Fanhua Software, year 2012 was the first profit-making year and accordingly, Fanhua Software has made a 12.5% tax provision for its profits for the years ended December 31, 2014, 2015 and 2016. For Huazhong, year 2015 was the first profit-making year and accordingly it has not made any provision for PRC income tax for the years ended December 31, 2015 and 2016. For Ying Si Kang Information, year 2014 was the first profit-making year and accordingly it has not made any provision for PRC income tax for the years ended December 31, 2014 and 2015, and has made a 12.5% tax provision for its profits for the year ended December 31, 2016. The Group accounts for uncertain income tax positions by prescribing a minimum recognition threshold in the financial statements. As of December 31, 2016, the Group’s liabilities for unrecognized tax benefits were included in other tax liabilities. The movements of unrecognized tax benefits are as follows: RMB Balance as of January 1, 2014 50,735 Change in unrecognized tax benefits (4,808 ) Gross increase in tax positions 7,928 Balance as of December 31, 2014 53,855 Change in unrecognized tax benefits 825 Gross increase in tax positions 15,674 Balance as of December 31, 2015 70,354 Change in unrecognized tax benefits — Gross increase in tax positions 2,424 Balance as of December 31, 2016 72,778 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, 2015 and 2016. 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, 2014 2015 2016 RMB RMB RMB Current tax expense 25,607 26,932 43,089 Deferred tax income (1,318 ) (1,067 ) (14,736 ) Income tax expense 24,289 25,865 28,353 The principal components of the deferred income tax assets and liabilities are as follows: As of December 31, 2015 2016 RMB RMB Current deferred tax assets: Operating loss carryforward 1,079 — Less: valuation allowances (1,079 ) — Current deferred tax asset, net — — Non-current deferred tax assets: Operating loss carryforward, after offset unrecognized tax benefits 27,245 33,611 Less: valuation allowances (25,587 ) (25,334 ) Non-current deferred tax asset, net 1,658 8,277 Total 1,658 8,277 Deferred tax liabilities: Intangible assets, net 3,895 2,604 Investment income 18,162 11,973 Total 22,057 14,577 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 RMB26,666 and RMB25,334 valuation allowance for the years ended December 31, 2015 and 2016 respectively. The Group had total operating loss carry-forwards of RMB131,198 and RMB150,373 as of December 31, 2015 and 2016, respectively. As of December 31, 2016, the operating loss carry-forwards of RMB13,404, RMB19,295, RMB25,203, RMB26,961 and RMB65,510 are to expire for the years ending December 31, 2017, 2018, 2019, 2020 and 2021, respectively. During the years ended December 31, 2014, 2015 and 2016, nil, RMB4,251 and RMB29,431, 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, 2014 2015 2016 RMB RMB RMB Income before income taxes and income of affiliates 159,720 214,422 147,698 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 39,930 53,605 36,925 Expenses not deductible for tax purposes: Entertainment 579 685 973 Other 6,482 5,176 3,691 Tax exemption and tax relief: Tax rate differential (34,315 ) (44,381 ) (4,089 ) Change in valuation allowance 2,934 (4,194 ) (1,332 ) Uncertain tax provisions 7,928 15,674 2,424 Effect of utilization of deductible temporary difference previously unrecognized — — (12,872 ) Other 751 (700 ) 2,633 Income tax expense 24,289 25,865 28,353 Additional PRC income taxes that would have been payable without the tax exemption amounted to approximately RMB34,315, RMB44,381 and RMB4,089 for the years ended December 31, 2014, 2015 and 2016, respectively. Without such exemption, the Group’s basic and diluted net profit per share for the years ended December 31, 2014, 2015 and 2016 would have been decreased by RMB 0.03, RMB0.04 and RMB0.00. If the entities were to be non-resident for PRC tax purpose, 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 SAR, the withholding tax would be 5%. Aggregate undistributed earnings of the Group’s subsidiaries and VIEs in the PRC that are available for distribution to the Group of approximately RMB1,954,541 and RMB2,058,189 as of December 31, 2015 and 2016 respectively, are considered to be indefinitely reinvested, and accordingly, no provision has been made for the dividend withholding taxes that would be payable upon the distribution of those amounts to the Group. 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 RMB195,454 and RMB205,819, respectively. 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, 2016 | |
Capital Structure [Abstract] | |
Capital Structure | (12) Capital Structure During 2016, the Company issued 2,597,400 new shares for the exercise of options, representing 0.22% of the total shares outstanding as of December 31, 2016. During 2016, the Company issued 7,416,000 new shares for acquisition of additional interest in a subsidiary, representing 0.64% of total shares outstanding as of December 31, 2016. During 2015, the Company repurchased 2,261,100 shares from the public market, representing 0.20% of the total shares outstanding as of December 31, 2015. During 2015, the Company issued 4,493,620 new shares and utilized 2,261,100 repurchased shares for the exercise of options, representing 0.59% of the total shares outstanding as of December 31, 2015. During 2014, the Company issued 1,704,380 new shares for the exercise of options, representing 0.15% of the total shares outstanding as of December 31, 2014. In November 2014, the Group entered into share purchase agreements with the Employee Companies, for the issuance of up to 100,000,000 ordinary shares of the Group. In December 2014, the Group increased the new shares issued to the Employee Companies to 150,000,000 ordinary shares. The total 150,000,000 ordinary shares represented approximately 13.04% of the total enlarged outstanding share capital as of December 31, 2014. The subscription price for the 100,000,000 ordinary shares is US$0.27 per ordinary share or US$5.40 per ADS, while the subscription price for the additional 50,000,000 ordinary shares is US$0.29 per ordinary share or US$5.8 per ADS, both of which were the average closing prices for the 20 trading days prior to the board approvals of such transactions. Accordingly, the Group considers that the employees have subscribed these shares at prices that were set at the best estimation of the future market prices on issuance date, and the Group has no intention to compensate the employees with a below market price subscription; therefore, the Group has not recorded any share-based compensation expenses related to any price deviations of the Group’s ordinary shares from the board approval dates to issuances of these shares. The shares purchased by the Employee Companies are subject to 180 days lock-up. The sale of shares to the Employee Companies 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 Employee Companies. The loans bear 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 is determined with reference to fair market prices and therefore no interest-related compensation expense is recorded. Please refer to Note 2(m) for accounting policy details. The repayment of the loan was further extended to June 2018. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Income Per Share [Abstract] | |
Net Income per Share | (13) Net Income per Share The computation of basic and diluted net income per ordinary share is as follows: Year Ended December 31, 2014 2015 2016 RMB RMB RMB Basic: Net income 166,080 215,481 167,638 Less: Net income attributable to the noncontrolling interests 4,320 5,395 10,591 Net income attributable to the Company’s shareholders 161,760 210,086 157,047 Weighted average number of ordinary shares outstanding 1,005,842,212 1,151,705,374 1,160,592,325 Basic net income per ordinary share 0.16 0.18 0.14 Basic net income per ADS 3.22 3.65 2.71 Diluted: Net income 166,080 215,481 167,638 Less: Net income attributable to the noncontrolling interests 4,320 5,395 10,591 Net income attributable to the Company’s shareholders 161,760 210,086 157,047 Weighted average number of ordinary shares outstanding 1,005,842,212 1,151,705,374 1,160,592,325 Weighted average number of dilutive potential ordinary shares from share options 6,749,175 51,618,147 48,229,471 Total 1,012,591,387 1,203,323,521 1,208,821,796 Diluted net income per ordinary share 0.16 0.17 0.13 Diluted net income per ADS 3.19 3.49 2.60 During the years ended December 31, 2014, 2015 and 2016, the Company had share options of which would potentially dilute earnings per share in the future, but which were excluded from the computation of diluted earnings per share as their effect would have been antidilutive, such share options consist of 16,920, nil and nil, respectively. |
Distribution of Profits
Distribution of Profits | 12 Months Ended |
Dec. 31, 2016 | |
Distribution of Profits [Abstract] | |
Distribution of Profits | (14) 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, 2016. 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. Amounts contributed to the statutory reserves were RMB302,115 and RMB311,590 as of December 31, 2015 and 2016, respectively. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Balances and Transactions [Abstract] | |
Related Party Balances and Transactions | (15) Related Party Balances and Transactions The principal related party balances and transactions as of and for the years ended December 31, 2015 and 2016 are as follows: a) Amounts due from related parties: As of December 31, 2015 2016 RMB RMB Amounts due from an equity method affiliate and its subsidiaries, net (i) 36,508 32,495 Subscription receivables (Note 2(m) & Note 12) 268,829 288,135 (i) The Group agreed to grant a revolving loan with a maximum amount of US$50,000 (equivalent to RMB317,990 as per the agreement) to Sincere Fame and its subsidiaries pursuant to a facility letter entered in October 2011 (the “Facility”). The Facility is valid for two years and is renewed upon mutual agreement for another two years in October 2013 and October 2015, separately. On January 1, 2012, the Group and Sincere Fame further entered into a supplemental loan agreement, which established the legal rights to offset the interests and amounts receivable or payable between the Group and Sincere Fame, and all the subsidiaries of the Group and Sincere Fame. The amounts are unsecured and bear interest at 7.3% and are repayable on demand. As of December 31, 2015 and 2016, the amount due from Sincere Fame and its subsidiaries represented nil and nil principal receivable, respectively, and RMB36,508 and RMB32,495 interest receivable, respectively. The interest receivables is non-interest bearing. b) The Group charged affiliates interest income of RMB12,170, RMB8,088 and nil for loans receivable for the years ended December 31, 2014, 2015, and 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (16) Commitments and Contingencies (i) The Group has several non-cancelable operating leases, primarily for office premises. Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum operating lease payments as of December 31, 2016 are: Minimum Lease Payment RMB Year ending December 31: 2017 30,725 2018 18,935 2019 11,895 2020 6,634 2021 845 Total 69,034 Rental expenses incurred under operating leases for the years ended December 31, 2014, 2015 and 2016 amounted to RMB27,455, RMB36,206 and RMB40,394, respectively. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | (17) 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, 2014 % of sales 2015 % of sales 2016 % of sales RMB RMB RMB PICC Property and Casualty Company Limited ("PICC") 442,608 20.6 % 676,939 23.9 % 1,247,860 26.5 % Huaxia Life Insurance Comapny Limited ("Huaxia") * * * * 517,759 11.0 % China Pacific Property Insurance Co., Ltd. ("CPIC") 255,655 11.9 % 315,961 11.2 % 487,705 10.4 % Ping An Property & Casualty Insurance Company of China, Ltd. ("Ping An"). 294,228 13.7 % 283,935 10.0 % * * 992,491 46.2 % 1,276,835 45.1 % 2,253,324 47.9 % * represented less than 10% of total net revenues as of the year. Details of the customers which accounted for 10% or more of accounts receivable are as follows: As of December 31, 2015 % 2016 % RMB RMB Huaxia 26,456 11.0 % 101,749 20.2 % PICC. 53,851 22.3 % 84,523 16.8 % Tianan Life Insurance Company Limited * * 75,750 15.1 % CPIC 28,947 12.0 % * * 109,254 45.3 % 262,022 52.1 % .0% of account receivables 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 with financial institutions with high-credit ratings and quality. The Group performs ongoing credit evaluations on the amounts due from Sincere Fame and its subsidiaries (Note 15(a)(i)). As the Group has significant influences over the operations of Sincere Fame through its equity investment in Sincere Fame, and in view of the historically positive operating results of Sincere Fame and its subsidiaries, the Group considered that the credit risks on the amounts due from an affiliate and its subsidiaries are not significant. In respect of the suspension of business cooperation with PICC (Note 22), the management has assessed the recoverability for the amounts due from PICC and concluded there is no significant deterioration of the credit risk for the receivable as of December 31, 2016 accordingly. Currency risk Except for the proceeds from the initial public offering and the follow-on offering (which were in USD), substantially all of the revenue-generating operations of the Group are transacted in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted by the People’s Bank of China. However, the unification of the exchange rate does not imply convertibility of RMB into USD or other foreign currencies. All foreign exchange transactions must take place either through the People’s Bank of China or other institutions authorized to buy and sell foreign exchange or at a swap center. Approval of foreign currency payments by the People’s Bank of China or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. |
Non-Cash Transactions
Non-Cash Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Non-Cash Transactions [Abstract] | |
Non-Cash Transactions | (18) Non-Cash Transactions The Group entered into the following non-cash investing and financing activities: Year ended December 31, 2014 2015 2016 RMB RMB RMB Considerations payable in connection with acquisition of subsidiaries and additional interests in subsidiaries 4,685 34,310 — Non-cash consideration in connection with acquisition of additional interests in a subsidiary (Note 3) — — 19,551 Subscription receivables from Employee Companies (Note 2(m) & Note 12) 257,491 — — |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | (19) Share-based Compensation 2012 Option a. 2012 Options 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. The fair value of the options was determined by using the Black-Scholes option pricing model. For the years ended December 31, 2014, 2015 and 2016, share-based compensation expenses of RMB22,200, RMB12,940 and RMB4,367 were recognized in connection with the 2012 Options G, respectively. During the year ended December 31, 2016, 2,068,000 shares of 2012 Options G had been exercised. During the years ended December 31, 2014, 2015 and 2016, 932,305, 114,250 and 10 shares of 2012 Options G, respectively, were forfeited due to employee resignations. No share-based compensation expense related to the forfeited options was recognized. b. 2012 Options H On March 12, 2012, the Company granted options ("2012 Options H") to its entrepreneurial agents and captains (non-employees) to purchase 3,800,000 ordinary shares of the Company, of which 3,000,000 and 800,000 options were granted to agents and captains respectively. Pursuant to the option agreements entered into between the Company and the option grantees, 40% ("Option H1"), 40% ("Option H2") and 20% ("Option H3") of the 3,000,000 award options granted to agents shall vest in May 31, 2014, 2015 and 2016 of each year respectively; and 40% ("Option H4"), 40% ("Option H5") and 20% ("Option H6") of the 800,000 award options granted to captains shall vest in May 31, 2013, 2014 and 2015 of each year respectively. The expiration date of the 2012 Options H is March 12, 2022. The 2012 Options H had an exercise price of US$0.30 (RMB1.90), which was later modified to US$0.001 (RMB0.006) and an intrinsic value of US$0.04 (RMB0.26) per ordinary share as of the date of grant. The fair value of the options was determined by using the Black-Scholes option pricing model and revaluated every balance sheet date until the options was vested. For the years ended December 31, 2014, 2015 and 2016, share-based compensation expenses of RMB1,289, RMB1,213 and RMB570 were recognized in connection with the 2012 Options H, respectively. During the year ended December 31, 2016, nil of 2012 Options H had been exercised. During the years ended December 31, 2013, 2014 and 2015, 898,740, 284,978 and 147,984 shares of 2012 Options H, respectively, were forfeited due to termination of agency contracts. No share-based compensation expense related to the forfeited options was recognized. Prior to our 2012 Option, the company granted options its employees under 2009 Options and 2008 Options. The Options shall vest over a four-year period subject to the continuous employment of the option grantees and their key performance indicators ("KPI") results for the year 2009. The expiration date of the Options is March 31, 2015, which was later modified to December 31, 2017 with an incremental compensation cost of RMB6,700 charged for the period in which the modification occurred in December 2013.During the year ended December 31, 2016, 349,000 shares and 180,400 shares had been exercised for 2009 and 2008 Options respectively. No share-based compensation expense was recognized for the years ended December 31, 2014, 2015 and 2016. For each of the three years ended December 31, 2014, 2015 and 2016, changes in the status of total outstanding options under 2012 Options, 2009 Options and 2008 Options, were as follows: Number of options Weighted average exercise price in RMB Aggregate Intrinsic Value Outstanding as of January 1, 2014 131,729,497 1.92 15,436 Exercised (1,704,380 ) 2.09 Forfeited (2,113,656 ) 1.92 Modification of the 2012 Options (45,663,861 ) 1.90 Outstanding as of December 31, 2014 82,247,600 1.93 10,177 Exercised (6,754,720 ) 1.92 Forfeited (429,328 ) 1.93 Outstanding as of December 31, 2015 75,063,552 1.93 70,931 Exercised (2,597,400 ) 1.95 Forfeited (147,994 ) 1.90 Outstanding as of December 31, 2016 72,318,158 1.93 68,055 Exercisable as of December 31, 2016 72,318,158 1.93 68,055 As of December 31, 2016, 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, 2014, 2015 and 2016: Year ended December 31, 2014 2015 2016 RMB RMB RMB Weighted-average grant-date fair value per share of options granted — — — Total intrinsic value of options exercised 837 17,399 6,406 Total fair value of share options vested 44,912 38,178 13,631 The following table summarizes information about the Company’s stock option plans as of December 31, 2016, excluding the InsCom options: Options outstanding Weighted average remaining contractual life (Years) Weighted average exercise price in RMB Options Exercisable 2012 Options G 37,770,812 5.25 0.006 37,770,812 2012 Options H 875,326 5.25 0.006 875,326 2009 Options 6,226,480 1.00 2.30 6,226,480 2008 Options 27,445,540 1.00 1.90 27,445,540 Total 72,318,158 72,318,158 InsCom Options During the years ended December 31, 2012, 2013 and 2014, InsCom Holdings Limited ("InsCom"), a private subsidiary of the Group, issued three batches of the options to its entrepreneurial agents and the Group's employees ("Options"). There is no intrinsic value of the options as of the date of grant. As of the grant date of these options, the fair values of these Options were estimated to be of nominal values. The share-based compensation expenses related to the above Options was RMB109, nil and nil during the years ended December 31, 2014, 2015 and 2016, respectively. During the year ended December 31, 2016, all of the InsCom Options had been exercised when the Company purchased the remaining interest from the minority interest of InsCom. Details of the acquisition is described in Note 3. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | (20) 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, 2015 and 2016, the Company had restricted net assets of RMB2,164,132 and RMB2,630,106 (including RMB78,847 and nil restricted share capital and statutory reserves of the VIEs), respectively, which were not eligible to be distributed. These amounts were comprised of the registered capital of the Company’s PRC subsidiaries and the statutory reserves disclosed in Note 14. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | (21) Segment Reporting The Group operated three segments: (1) insurance agency business segment, which mainly consists of providing agency services for P&C insurance products and life insurance products to individual clients, (2) insurance brokerage business segment, which mainly consists of providing P&C and life insurance brokerage services to institutional clients, and (3) claims adjusting segment, which consists of providing pre-underwriting survey, claim adjusting, disposal of residual value, loading and unloading supervision 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, 2014, 2015 and 2016. Other includes revenue and expenses that are not allocated to reportable segments and corporate related items. Year ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net revenues Agency 1,624,410 2,155,264 3,746,471 539,604 Brokerage 232,620 369,198 617,738 88,973 Claims Adjusting 292,981 303,846 336,413 48,454 Total net revenues 2,150,011 2,828,308 4,700,622 677,031 Operating costs and expenses Agency (1,486,871 ) (1,969,329 ) (3,667,004 ) (528,158 ) Brokerage (197,017 ) (319,124 ) (595,232 ) (85,731 ) Claims Adjusting (275,539 ) (292,613 ) (306,804 ) (44,189 ) Other (159,685 ) (168,720 ) (117,542 ) (16,930 ) Total operating costs and expenses (2,119,112 ) (2,749,786 ) (4,686,582 ) (675,008 ) Income (loss) from operations Agency 137,539 185,935 79,467 11,446 Brokerage 35,603 50,074 22,506 3,242 Claims Adjusting 17,442 11,233 29,609 4,265 Other (159,685 ) (168,720 ) (117,542 ) (16,930 ) Total income from operations 30,899 78,522 14,040 2,023 As of December 31, 2015 2016 2016 RMB RMB US$ Segment assets Agency 454,803 2,245,121 323,365 Brokerage 160,286 13,041 1,878 Claims Adjusting 226,121 256,004 36,872 Other 3,173,218 1,724,402 248,365 Total assets 4,014,428 4,238,568 610,480 Substantially all of the Group’s revenues for the three years ended December 31, 2014, 2015 and 2016 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. The acquisition of intangible asset in 2016 is related to agency segment. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | (22) Subsequent events (a) On March 6, 2017, the Company announced that its subsidiaries were notified verbally by PICC's local branches on March 1, 2017 that PICC was temporarily suspending its business cooperation with the Group on areas in P&C of agency segment, P&C of brokerage segment and claims adjusting segment because certain of PICC’s senior management members was being investigated by the PRC government. During the year ended December 31, 2016, the Group derived 26.5% of its total revenues from PICC. As of December 31, 2016, the Group has approximately 16.8% of account receivables due from PICC. (b) On March 6, 2017, a cash dividend policy approved by its Board of Directors on February 28, 2017, was announced by the Company, which provides for an annual cash dividend to shareholders of no less than 30% of the Company's net income attributable to shareholders in the previous fiscal year. The Company expects to declare the first annual cash dividend out of share premium account after the release of its annual report. (c) 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$29,162.1. The purchase price represents the average closing price of the past 20 trading days prior to the signing of the share purchase agreement between Fosun and the Company on March 29, 2017. Fosun holds 5.3% of the equity interests in the Company post-closing and its purchased shares are subject to a contractual one-year lock-up. |
Schedule 1-Condensed Financial
Schedule 1-Condensed Financial Statements of the Company | 12 Months Ended |
Dec. 31, 2016 | |
Schedule 1-Condensed Financial Statements of the Company [Abstract] | |
SCHEDULE 1-CONDENSED FINANCIAL STATEMENTS OF THE COMPANY | SCHEDULE 1—CONDENSED FINANCIAL STATEMENTS OF THE COMPANY Balance Sheets ( In thousands, except for shares and per share data As of December 31, 2015 2016 2016 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 5,349 10,746 1,548 Other receivables and amounts due from subsidiaries and affiliates 1,607,924 1,742,796 251,014 Total current assets 1,613,273 1,753,542 252,562 Non-current assets: Investment in subsidiaries 1,736,488 1,571,844 226,393 Total assets 3,349,761 3,325,386 478,955 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Other payables 4,602 8,108 1,168 Amounts due to subsidiaries 27,729 30,426 4,382 Total liabilities 32,331 38,534 5,550 Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued and outstanding shares: 1,155,059,526 and 1,165,072,926 as of December 31, 2015 and 2016, respectively) 8,592 8,658 1,247 Additional paid-in capital 2,454,244 2,301,655 331,507 Retained earnings 1,173,471 1,330,518 191,634 Accumulated other comprehensive loss (50,048 ) (65,844 ) (9,483 ) Subscription receivables (268,829 ) (288,135 ) (41,500 ) Total shareholders’ equity 3,317,430 3,286,852 473,405 Total liabilities and shareholders' equity 3,349,761 3,325,386 478,955 Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ General and administrative expenses (31,191 ) (19,839 ) (9,938 ) (1,433 ) Interest income 12,464 15,913 8,271 1,191 Equity in earnings of subsidiaries 180,487 214,012 158,714 22,860 Net income 161,760 210,086 157,047 22,618 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 6,008 6,153 2,177 314 Fair value changes of short term investment — — 632 91 Share of other comprehensive income (loss) of affiliates, net of tax — 37,567 (37,911 ) (5,460 ) Comprehensive income attributable to the Company's shareholders 167,768 253,806 121,945 17,563 Share Capital Additiona Paid-in Treasury Stock Accumulated Other Number of Share Amounts Capital Number of Share Amounts Retained Earnings Comprehensive Income Subscription Receivables Total RMB RMB RMB RMB RMB RMB RMB Balance as of January 1, 2014 998,861,526 7,624 2,329,962 — — 801,625 (111,114 ) — 3,028,097 Net income — — — — — 161,760 — — 161,760 Issue new shares to employees 150,000,000 928 256,563 — — — — (257,491 ) — Foreign currency translation — — — — — — 6,008 — 6,008 Exercise of share options 1,704,380 11 3,172 — — — — — 3,183 Share-based compensation — — 23,598 — — — — — 23,598 Other — — (11,894 ) — — — — — (11,894 ) Balance as of December 31, 2014 1,150,565,906 8,563 2,601,401 — — 963,385 (105,106 ) (257,491 ) 3,210,752 Net income — — — — — 210,086 — — 210,086 Foreign currency translation — — — — — — 17,491 (11,338 ) 6,153 Repurchase of ordinary shares — — — (2,261,100 ) (6,276 ) — — — (6,276 ) Exercise of share options 4,493,620 29 (4,787 ) 2,261,100 6,276 — — — 1,518 Share-based compensation — — 17,653 — — — — — 17,653 Acquisition of additional interest in a subsidiary — — (160,023 ) — — — — — (160,023 ) Share of other comprehensive income in affiliates — — — — — — 37,567 — 37,567 Balance as of December 31, 2015 1,155,059,526 8,592 2,454,244 — — 1,173,471 (50,048 ) (268,829 ) 3,317,430 Net income — — — — — 157,047 — — 157,047 Foreign currency translation — — — — — — 21,483 (19,306 ) 2,177 Exercise of share options 2,597,400 17 1,127 — — — — — 1,144 Share-based compensation — — 4,937 — — — — — 4,937 Acquisition of additional interest in a subsidiary 7,416,000 49 (174,779 ) — — — — — (174,730 ) Disposal of subsidiaries — — 16,126 — — — — — 16,126 Fair value change in certain investments — — — — — — 632 — 632 Share of other comprehensive income in affiliates — — — — — — (37,911 ) — (37,911 ) Balance as of December 31, 2016 1,165,072,926 8,658 2,301,655 — — 1,330,518 (65,844 ) (288,135 ) 3,286,852 Balance as of December 31, 2016 in US$ 1,247 331,507 — 191,634 (9,483 ) (41,500 ) 473,405 Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ OPERATING ACTIVITIES Net income 161,760 210,086 157,047 22,618 Adjustments to reconcile net income to net cash generated from (used in) operating activities: Equity in earnings of subsidiaries (180,487 ) (214,012 ) (158,714 ) (22,860 ) Compensation expenses associated with stock options 23,598 17,653 4,937 711 Changes in operating assets and liabilities: Other receivables 39,810 (67,925 ) (9,290 ) (1,338 ) Other payables (42,379 ) 1,879 3,506 506 Net cash generated from (used in) operating activities 2,302 (52,319 ) (2,514 ) (363 ) Cash flows (used in) generated from investing activities Decrease in investment in subsidiaries 29,853 55,363 127,475 18,361 Advances to subsidiaries and affiliates (43,110 ) (8,797 ) (122,885 ) (17,699 ) Net cash (used in) generated from investing activities (13,257 ) 46,566 4,590 662 Cash flows generated from (used in ) financing activities: Proceeds on exercise of stock options 3,183 1,518 1,144 165 Repurchase ordinary shares — (6,276 ) — — Net cash generated from (used in) financing activities 3,183 (4,758 ) 1,144 165 Net (decrease) increase in cash and cash equivalents (7,772 ) (10,511 ) 3,220 464 Cash and cash equivalents at beginning of year 11,471 9,707 5,349 770 Effect of exchange rate changes on cash and cash equivalents 6,008 6,153 2,177 314 Cash and cash equivalents at end of year 9,707 5,349 10,746 1,548 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, 2016, RMB2,630,106 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, 2015 and 2016. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant 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 majority-owned 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. |
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 period. Significant accounting estimates reflected in the Group’s consolidated financial statements included valuation of goodwill, allowance for doubtful receivables, and the valuation of non-controlling interests of the subsidiaries at acquisition dates. 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 and broker, the Group collects premiums from certain insureds and remits the premiums to the appropriate insurance companies. Accordingly, as reported in the consolidated balance sheets, “premiums” are receivables from the insureds. 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 balance sheets. Also included in the restricted cash represents guarantee deposits required by China Insurance Regulatory Commission (“CIRC”) in order to protect insurance premium appropriation by insurance agency as well as entrustment deposit received from the members of eHuzhu, an online mutual aid platform operated by the Group in an escrow account of RMB12,398 and RMB28,246 (US$4,068) as of December 31, 2015 and 2016, 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. The majority of the investments are measured at costs which approximate their fair values in the consolidated balance sheets, except for short term investments on certain private fund. The Group benchmark the costs against fair values of comparable investments as of balance sheet date, and categorized all fair value measures of short term investments as level 2 of the fair value hierarchy. No impairment loss on short term investments was identified for each of the years ended December 31, 2014, 2015 and 2016. |
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, brokerage 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. 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, 2015 2016 RMB RMB Accounts receivable 254,510 519,767 Allowance for doubtful accounts (13,246 ) (16,792 ) Accounts receivable, net 241,264 502,975 The following table summarizes the movement of the Group’s allowance for doubtful accounts for accounts receivables: 2014 2015 2016 RMB RMB RMB Balance at the beginning of the year 12,655 16,587 13,246 Provision for doubtful accounts 3,932 4,991 3,700 Write-offs — (8,332 ) (154 ) Balance at the end of the year 16,587 13,246 16,792 During the years ended December 31, 2014, 2015, the Group provided allowance for other receivables of RMB2,128, and RMB2,606 A reversal of allowance of other receivable of RMB1,319 was recorded for the year ended December 31, 2016. Insurance premium receivables consist of insurance premium to be collected from the insured, and is 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 (Years) Estimated residual value 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 recognized in the consolidated statement of income and comprehensive income: 2014 2015 2016 RMB RMB RMB Commission and fees under operating costs 5,508 2,056 185 Selling expenses 1,282 1,180 1,590 General and administrative expenses 21,445 15,147 11,717 Depreciation for the year 28,235 18,383 13,492 |
Goodwill and Other Intangible Assets | (g) Goodwill and Other Intangible Assets Goodwill represents the excess of costs over fair value of net assets of businesses acquired. 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 three reporting units for the year ended December 31, 2016. 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 2015 and 2016, 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, 2015 and 2016. 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 intangibles assets of customer relationship is computed using the accelerated method, while amortization for other identifiable intangibles assets is 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 name, trade name, customer relationship, non-compete agreement, agency agreement and license, and software and system. The intangible assets, net consisted of the following: As of December 31, 2015 Useful life (Years) Cost Accumulated amortization Accumulated Impairment loss Net carrying values RMB RMB RMB RMB Brand name Indefinite 20,111 — (16,404 ) 3,707 Trade name 9.4 to 10 8,898 (4,808 ) — 4,090 Customer relationship 4.6 to 9.8 61,186 (51,264 ) (2,953 ) 6,969 Non-compete agreement 3 to 6.25 69,075 (33,819 ) (34,692 ) 564 Agency agreement and license 4.6 to 9.8 20,404 (15,949 ) (77 ) 4,378 Software and system 5 to 10 5,680 (5,680 ) — — 185,354 (111,520 ) (54,126 ) 19,708 As of December 31, 2016 Useful life (Years) Cost Accumulated amortization Accumulated Impairment loss Net carrying values RMB RMB RMB RMB Brand name Indefinite 20,111 — (16,404 ) 3,707 Trade name 9.4 to 10 8,898 (5,750 ) — 3,148 Customer relationship 4.6 to 9.8 60,696 (53,324 ) (2,953 ) 4,419 Non-compete agreement 3 to 6.25 52,195 (22,539 ) (29,515 ) 141 Agency agreement and license 4.6 to 9.8 19,924 (16,790 ) (77 ) 3,057 Software and system 2 to 10 65,680 (20,680 ) — 45,000 227,504 (119,083 ) (48,949 ) 59,472 Aggregate amortization expenses for intangible assets were RMB16,826, RMB11,571 and RMB20,232 for the years ended December 31, 2014, 2015 and 2016, 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 asset with determinable useful live against the estimated undiscounted future cash flows associated with it. 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, 2014, 2015 and 2016, 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 third party, if any. During the years ended December 31, 2014, 2015 and 2016, the Group recognized no impairment losses on its indefinite-lived intangible assets. The estimated amortization expenses for the next five years are: RMB33,850 in 2017, RMB18,667 in 2018, RMB2,502 in 2019, RMB658 in 2020 and RMB88 in 2021. |
Other Receivables and Other Current Assets | (h) Other Receivables and Other Current Assets Other receivables and other current assets mainly consist of receivables from third parties, advances, deposits, interest receivables, value-added tax recoverable and prepaid expenses. |
Investment in Affiliates | (i) Investment in Affiliates Investments in affiliates are accounted for using the equity method. The Group does not control the affiliates but exerts significant influence over them. |
Other Non-current Assets | (j) Other Non-current Assets Other non-current assets represent investments in equity security of private companies which the group owns equity interest of less than 20%, over which the Group exerts no significant influence and are measured initially at cost. |
Impairment of Long-Lived Assets | (k) Impairment of Long-Lived Assets Property, plant, and equipment, and purchased intangible assets with definite life, subject to amortization, 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 by the amount by which the carrying amount 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 Companies”) 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 Companies 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 Companies. 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. Please refer to Note 12 for details. The interest rate is determined with reference to fair market prices and therefore no interest-related compensation expense is recorded. Upon the expiry of the loan agreement on December 17, 2016, the repayment of the loan was further extended to June 2018 and the loan is interest bearing at 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 balance sheets as of December 31, 2015 and 2016. Interest income accruing from the loan is recognized as non-operating income. None of the loans to employees have been repaid and total balance thereof as of December 31, 2016 was RMB288,135 (US$41,500). |
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 repurchase of ordinary shares is accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stocks. During the years ended December 31, 2014, 2015 and 2016, the Group had repurchased total of nil, 2,261,100 and nil shares from the market for a cash consideration of nil, RMB6,276 and nil. As of December 31, 2015, all the treasury stock had been re-issued for the exercise of stock options. |
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 bases 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. Since 2014, the Group has adopted FASB ASU No. 2013-11—Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amount. The Group adopted ASU 2015-17 on a prospective basis in 2016. Accordingly, all net deferred tax assets are presented as non-current deferred tax assets as of December 31, 2016 in the accompanying Consolidated Balance Sheets and Note 11. |
Share-based Compensation | (p) Share-based Compensation Employee share-based compensation All forms of share-based payments to employees, including employee stock options and employee stock purchase plans, are treated the same as any other form of compensation by recognizing the related cost in the consolidated statement of income and comprehensive income. 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, and no compensation cost is recognized if the requisite service is not rendered. 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 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 forfeit because a service condition or a performance condition is not satisfied. Share-based compensation expenses of RMB23,598, RMB17,653 and RMB4,937 (US$711) for the years ended December 31, 2014, 2015 and 2016, respectively, were included in the general and administrative expenses. |
Employee Benefit Plans | (q) Employee Benefit Plans As stipulated by the regulations of the PRC, the Group’s subsidiaries and VIEs 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 statement 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 The Group’s revenue is derived principally from the provision of insurance brokerage, agency and claims adjusting services. The Group recognizes revenue when all of the following have occurred: persuasive evidence of an agreement with the insurance companies or insurance agencies exists, services have been provided, the fees for such services are fixed or determinable and collectability of the fee is reasonably assured. Insurance agency services are considered to be rendered and completed, and revenue is recognized, 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 four 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. Insurance brokerage services revenue is recognized when the signed insurance policy is in place and the premium is collected from the insured and the commission settlement confirmation is received from insurance companies, because the commission rate for brokerage services is negotiated case by case and the Group’s fees are fixed when such confirmation is received. No allowance for cancellation has been recognized for agency and brokerage businesses 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 deminims 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%, 0.2% and 0.2% of the total commission and fee revenues during years ended December 31, 2014, 2015 and 2016, respectively. For property insurance and life insurance, agency and brokerage services, the Group may receive a performance bonus from insurance companies as agreed and per contract provisions. Once an agency and brokerage group achieves its performance target, 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. The contingent commissions are recorded when a performance target is being achieved. Insurance claims adjusting services are considered to be rendered and completed, and revenue is recognized at the time loss adjusting reports are confirmed being received by insurance companies. The Group has met all the four criteria of revenue recognition when the service is provided and the loss adjusting report is accepted 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. The Group presents revenue net of sales taxes incurred. The sales taxes amounted to RMB120,965, RMB157,234 and RMB81,890 for the years ended December 31, 2014, 2015 and 2016, respectively. According to the Announcement on the VAT Reform Pilot Program of the Transportation and Selected Modern Service Sectors issued by the State Tax Bureau in July 2012, the transportation and some selected modern service sectors, including research and development (R&D) and technical services, information technology services, cultural creative services, logistics support services, tangible personal property leasing services, and assurance and consulting service, should pay value-added tax instead of business tax based on a predetermined timetable (hereinafter referred to as the “VAT Reform”), effective September 1, 2012 for entities in Beijing and November 1, 2012 for entities in Guangdong. The VAT Reform expanded nation-wide from August 1, 2013. Total Value-added taxes paid by the Group during the years ended December 31, 2014, 2015 and 2016 amounted to RMB14,997 RMB16,370 and RMB160,556, respectively. In March 2016, during the fourth session of the 12th National People’s Congress, it was announced that the VAT reform will be fully rolled out and extended to all industries including construction, real estate, financial services and lifestyle services. Subsequently, 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. |
Marketing campaign expense | (s) Marketing campaign expense The Group records its marketing campaign expenses pay to agents as selling expenses. Marketing campaign expenses are incurred to increase the Group’s market share and attract more agents at certain selected regions that the Group strategically plans to capture higher market shares, and are not a necessary expense to sell insurance policies. Such expenses are temporary, with the terms of regional programs ranging from one to three months. Marketing campaign expenses are only recognized when such campaigns are officially announced by the Group to the agents and such campaigns can be terminated at any time without further notice. The Group records the marketing campaign expenses when the related services are provided. During the years ended December 31, 2014, 2015 and 2016, nil, RMB19,503 and RMB299,885 of marketing campaign expenses were included in the selling expenses, respectively. |
Fair Value of Financial Instruments. | (t) 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, amounts due from related parties, 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, 2015 and 2016, 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 Date Using Description As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments - debt security 2,026,256 — 2,026,256 — Fair Value Measurements at Reporting Date Using Description As of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments - debt security 2,797,842 — 2,797,842 — The majority of debt security consists of investments in trust products and asset management plans that have normally pay a prospective fixed rate of return. These investments are recorded at fair values on a recurring basis. The Group benchmarks the costs against fair values of comparable investments with similar measurement terms, such as prevailing market yields, at the balance sheet date. It is classified as Level 2 of the fair value hierarchy since fair value measurement at reporting date uses significant other observable inputs. The Group did not have Level 3 investments as of December 31, 2015 and 2016. Measured at fair value on a non-recurring basis The Group measures certain assets, including the cost method investments, 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, and impairment charge to the intangible assets is recorded when their carrying amounts may not be recoverable. Goodwill (Note 6) and intangible assets (Note 2(g)) 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). |
Foreign Currencies | (u) 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 the 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 | (v) 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 RMB1,115,296 and RMB253,725 of cash and cash equivalents and restricted cash denominated in RMB as of December 31, 2015 and 2016, respectively. |
Translation into United States Dollars | (w) Translation into United States Dollars The consolidated financial statements of the Group are stated in RMB. Translations of amounts from RMB into U.S. dollars are solely for the convenience of the readers and were calculated at the rate of US$1.00 = RMB6.943, representing the noon buying rate in the City of New York for cable transfers of RMB on December 30, 2016, the last business day in fiscal year 2016, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at such rate. |
Segment Reporting | (x) Segment Reporting The Group distributes a variety of property and casualty, and life insurance products underwritten by domestic and foreign insurance companies operating in the PRC, and provides insurance claims adjusting services as well as other insurance-related services and distribution of wealth management products. The Group operated three segments: (1) insurance agency segment, which mainly consists of providing agency services for property and casualty (“P&C”) insurance products and life insurance products to individual clients, (2) insurance brokerage segment, which mainly consists of providing P&C and life insurance brokerage services to institutional clients, and (3) claims adjusting segment, which consists of providing pre-underwriting survey, claim adjusting, disposal of residual value, loading and unloading supervision and consulting services. Details of these operating segments are described in Note 21. 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. 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. |
Advertising Costs | (z) Advertising Costs Advertising costs are expensed as incurred. Advertising costs amounted to RMB6,553, RMB5,696 and RMB18,085 for the years ended December 31, 2014, 2015 and 2016, respectively. |
Operating Leases | (aa) Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of income and comprehensive income over the lease period. |
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 and share of other comprehensive income of the affiliates for the period. |
Recently Issued Accounting Standards Not Yet Adopted | (ac) Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” which amended the existing accounting standards for revenue recognition. The core principle of the new guidance is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new guidance also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple element arrangements. Subsequently, the FASB issued the following various updates affecting the guidance in ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Group must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). The new revenue standards may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (the modified retrospective method). The new revenue standards become effective for the Company on January 1, 2018. The Group currently anticipates adopting the new revenue standards using the full retrospective method. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Group does not anticipate the adoption of this ASU will have a material impact the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). The update is intended to improve financial reporting in regards to how certain transactions are classified in the statement of cash flows. This update requires that debt extinguishment costs be classified as cash outflows for financing activities and provides additional classification guidance for the statement of cash flows. The update also requires that the classification of cash receipts and payments that have aspects of more than one class of cash flows to be determined by applying specific guidance under generally accepted accounting principles. The update also requires that each separately identifiable source or use within the cash receipts and payments be classified on the basis of their nature in financing, investing or operating activities. The update is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be adopted retrospectively by the Group to all periods presented. The Group does not anticipate that the adoption of ASU 2016-15 will have a material impact on the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The Group anticipates that upon adoption of this ASU, the Group’s restricted cash will be included in cash and cash equivalents on the consolidated balance sheets, and transfers between restricted cash and cash and cash equivalents will not be presented as cash flow activities on the consolidated statements of cash flows. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The update affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The update is intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update provides a more robust framework to use in determining when a set of assets and activities is a business, and also provides more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. For public companies, the update is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The effect of ASU 2017-01 on the consolidated financial statements will be dependent on any future acquisitions. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The update simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The update also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. For public companies, the update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group does not anticipate that the adoption of ASU 2017-04 will have a material impact on the consolidated financial statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of accounts receivable, net | As of December 31, 2015 2016 RMB RMB Accounts receivable 254,510 519,767 Allowance for doubtful accounts (13,246 ) (16,792 ) Accounts receivable, net 241,264 502,975 |
Schedule of allowance for doubtful accounts for accounts receivables | 2014 2015 2016 RMB RMB RMB Balance at the beginning of the year 12,655 16,587 13,246 Provision for doubtful accounts 3,932 4,991 3,700 Write-offs — (8,332 ) (154 ) Balance at the end of the year 16,587 13,246 16,792 |
Schedule of estimated useful lives of property, plant and equipment | Estimated useful life (Years) Estimated residual value 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 | 2014 2015 2016 RMB RMB RMB Commission and fees under operating costs 5,508 2,056 185 Selling expenses 1,282 1,180 1,590 General and administrative expenses 21,445 15,147 11,717 Depreciation for the year 28,235 18,383 13,492 |
Schedule of intangible assets, net | As of December 31, 2015 Useful life (Years) Cost Accumulated amortization Accumulated Impairment loss Net carrying values RMB RMB RMB RMB Brand name Indefinite 20,111 — (16,404 ) 3,707 Trade name 9.4 to 10 8,898 (4,808 ) — 4,090 Customer relationship 4.6 to 9.8 61,186 (51,264 ) (2,953 ) 6,969 Non-compete agreement 3 to 6.25 69,075 (33,819 ) (34,692 ) 564 Agency agreement and license 4.6 to 9.8 20,404 (15,949 ) (77 ) 4,378 Software and system 5 to 10 5,680 (5,680 ) — — 185,354 (111,520 ) (54,126 ) 19,708 As of December 31, 2016 Useful life (Years) Cost Accumulated amortization Accumulated Impairment loss Net carrying values RMB RMB RMB RMB Brand name Indefinite 20,111 — (16,404 ) 3,707 Trade name 9.4 to 10 8,898 (5,750 ) — 3,148 Customer relationship 4.6 to 9.8 60,696 (53,324 ) (2,953 ) 4,419 Non-compete agreement 3 to 6.25 52,195 (22,539 ) (29,515 ) 141 Agency agreement and license 4.6 to 9.8 19,924 (16,790 ) (77 ) 3,057 Software and system 2 to 10 65,680 (20,680 ) — 45,000 227,504 (119,083 ) (48,949 ) 59,472 |
Schedule of fair value measurements of the group's assets and liabilities | Fair Value Measurements at Reporting Date Using Description As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments - debt security 2,026,256 — 2,026,256 — Fair Value Measurements at Reporting Date Using Description As of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments - debt security 2,797,842 — 2,797,842 — |
Acquisitions, disposals and r33
Acquisitions, disposals and reorganization (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions, disposals and reorganization [Abstract] | |
Schedule of effects of changes in the Group's ownership in subsidiaries on the Group's equity | Year ended RMB Net income attributable to the Company’s shareholders 157,047 Decrease in Company’s additional paid-in capital for acquisitions of additional equity interests from noncontrolling interests (174,779 ) Changes from net income attributable to Company’s shareholders and transfers to noncontrolling interests (17,732 ) Year ended RMB Net income attributable to the Company’s shareholders 210,086 Decrease in Company’s additional paid-in capital for acquisitions of additional equity interests from noncontrolling interests (160,023 ) Changes from net income attributable to Company’s shareholders and transfers to noncontrolling interests 50,063 |
Other Receivables (Tables)
Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Receivables [Abstract] | |
Schedule of other receivables | As of December 31, 2015 2016 RMB RMB Advances to staff (i) 6,492 9,250 Advances to entrepreneurial agents (ii) 367 1,270 Rental deposits 7,655 8,041 Interest income receivables (iii) 29,708 17,620 Other 7,606 13,005 51,828 49,186 (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 accrued interest income on bank deposits and accrued interest on subscription receivables (Note 2(m)). |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | As of December 31, 2015 2016 RMB RMB Building 12,317 12,317 Office equipment, furniture and fixtures 128,401 130,172 Motor vehicles 26,341 23,774 Leasehold improvements 9,657 13,146 Total 176,716 179,409 Less: Accumulated depreciation (142,571 ) (147,995 ) Property, plant and equipment, net 34,145 31,414 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill [Abstract] | |
Schedule of carrying amount of goodwill | Agency segment RMB Balance as of December 31, 2015 133,474 Eliminated on disposal of a subsidiary (11,397 ) Balance as of December 31, 2016 122,077 |
Schedule of gross amount and accumulated impairment losses | Agency segment Claims Adjusting segment Total RMB RMB RMB Gross as of January 1, 2015 1,096,102 38,077 1,134,179 Eliminated on disposal of a subsidiary — (16,940 ) (16,940 ) Gross as of December 31, 2015 1,096,102 21,137 1,117,239 Eliminated on disposal of a subsidiary (173,608 ) — (173,608 ) Gross as of December 31, 2016 922,494 21,137 943,631 Accumulated impairment loss as of January 1, 2015 (962,628 ) (38,077 ) (1,000,705 ) Eliminated on disposal of a subsidiary — 16,940 16,940 Accumulated impairment loss as of December 31, 2015 (962,628 ) (21,137 ) (983,765 ) Eliminated on disposal of a subsidiary 162,211 — 162,211 Accumulated impairment loss as of December 31, 2016 (800,417 ) (21,137 ) (821,554 ) Net as of December 31, 2015 133,474 — 133,474 Net as of December 31, 2016 122,077 — 122,077 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments in Affiliates [Abstract] | |
Schedule of investments in affiliates | As of December 31, 2015 2016 RMB RMB Teamhead Automobile 528 227 Sincere Fame 283,666 294,349 Total 284,194 294,576 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Statement [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of VIEs and other group entities | Year Ended December 31, 2014 2015 2016 RMB RMB RMB Net Revenues 72,645 108,133 33,679 Net loss (9,636 ) (14,554 ) (4,598 ) Net cash (used in) generated from operating activities (49,782 ) 37,943 (11,536 ) Net cash generated from (used in) investing activities 14,709 (31,682 ) 2,601 Net cash generated from financing activities 33,370 — — |
Balance Sheet [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of VIEs and other group entities | As of December 31, 2015 2016 RMB RMB Total assets 103,740 — Total liabilities 104,795 — |
Other Payables and Accrued Ex39
Other Payables and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Payables and Accrued Expenses [Abstract] | |
Components of other payables and accrued expenses | As of December 31, 2015 2016 RMB RMB Business and other tax payable 35,358 59,919 Refundable deposits from employees and agents 13,239 23,472 Professional fees 18,553 45,745 Accrued expenses to third parties (i 42,622 79,847 Payables for addition of office equipment, furniture and fixtures 8,618 8,618 Advance from third parties 35,808 47,534 Insurance compensation claim payable to customers 823 875 Payable for equity acquisition of investment in affiliates/additional equity interest in subsidiaries 38,495 — Contributions from members of eHuzhu mutual aid program 8,995 25,605 Others 11,051 22,436 Total 213,562 314,051 (i) As of December 31, 2015, included in accrued expenses to third parties represented an amount of RMB19,500 payable to Chengdu Puyi Bohui Information Technology Co., Ltd, the shareholder of Fanhua Puyi Fund Sales Co. Ltd. ("Puyi Fund Sales") for marketing activities. The amount was settled in 2016. The Group beneficially owns 15.4% equity interests in Puyi Fund Sales. Other than the amount payable to Puyi Fund Sales, the remaining balance mainly represented the accrued commission payable to the agents. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule of unrecognized tax benefits | RMB Balance as of January 1, 2014 50,735 Change in unrecognized tax benefits (4,808 ) Gross increase in tax positions 7,928 Balance as of December 31, 2014 53,855 Change in unrecognized tax benefits 825 Gross increase in tax positions 15,674 Balance as of December 31, 2015 70,354 Change in unrecognized tax benefits — Gross increase in tax positions 2,424 Balance as of December 31, 2016 72,778 |
Schedule of income tax expenses | Year Ended December 31, 2014 2015 2016 RMB RMB RMB Current tax expense 25,607 26,932 43,089 Deferred tax income (1,318 ) (1,067 ) (14,736 ) Income tax expense 24,289 25,865 28,353 |
Schedule of deferred income tax assets and liabilities | As of December 31, 2015 2016 RMB RMB Current deferred tax assets: Operating loss carryforward 1,079 — Less: valuation allowances (1,079 ) — Current deferred tax asset, net — — Non-current deferred tax assets: Operating loss carryforward, after offset unrecognized tax benefits 27,245 33,611 Less: valuation allowances (25,587 ) (25,334 ) Non-current deferred tax asset, net 1,658 8,277 Total 1,658 8,277 Deferred tax liabilities: Intangible assets, net 3,895 2,604 Investment income 18,162 11,973 Total 22,057 14,577 |
Schedule of reconciliation between provision for income taxes | Year Ended December 31, 2014 2015 2016 RMB RMB RMB Income before income taxes and income of affiliates 159,720 214,422 147,698 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 39,930 53,605 36,925 Expenses not deductible for tax purposes: Entertainment 579 685 973 Other 6,482 5,176 3,691 Tax exemption and tax relief: Tax rate differential (34,315 ) (44,381 ) (4,089 ) Change in valuation allowance 2,934 (4,194 ) (1,332 ) Uncertain tax provisions 7,928 15,674 2,424 Effect of utilization of deductible temporary difference previously unrecognized — — (12,872 ) Other 751 (700 ) 2,633 Income tax expense 24,289 25,865 28,353 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Income Per Share [Abstract] | |
Schedule of basic and diluted net income per ordinary share | Year Ended December 31, 2014 2015 2016 RMB RMB RMB Basic: Net income 166,080 215,481 167,638 Less: Net income attributable to the noncontrolling interests 4,320 5,395 10,591 Net income attributable to the Company’s shareholders 161,760 210,086 157,047 Weighted average number of ordinary shares outstanding 1,005,842,212 1,151,705,374 1,160,592,325 Basic net income per ordinary share 0.16 0.18 0.14 Basic net income per ADS 3.22 3.65 2.71 Diluted: Net income 166,080 215,481 167,638 Less: Net income attributable to the noncontrolling interests 4,320 5,395 10,591 Net income attributable to the Company’s shareholders 161,760 210,086 157,047 Weighted average number of ordinary shares outstanding 1,005,842,212 1,151,705,374 1,160,592,325 Weighted average number of dilutive potential ordinary shares from share options 6,749,175 51,618,147 48,229,471 Total 1,012,591,387 1,203,323,521 1,208,821,796 Diluted net income per ordinary share 0.16 0.17 0.13 Diluted net income per ADS 3.19 3.49 2.60 |
Related Party Balances and Tr42
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Balances and Transactions [Abstract] | |
Schedule of related party transactions | As of December 31, 2015 2016 RMB RMB Amounts due from an equity method affiliate and its subsidiaries, net (i) 36,508 32,495 Subscription receivables (Note 2(m) & Note 12) 268,829 288,135 (i) The Group agreed to grant a revolving loan with a maximum amount of US$50,000 (equivalent to RMB317,990 as per the agreement) to Sincere Fame and its subsidiaries pursuant to a facility letter entered in October 2011 (the “Facility”). The Facility is valid for two years and is renewed upon mutual agreement for another two years in October 2013 and October 2015, separately. On January 1, 2012, the Group and Sincere Fame further entered into a supplemental loan agreement, which established the legal rights to offset the interests and amounts receivable or payable between the Group and Sincere Fame, and all the subsidiaries of the Group and Sincere Fame. The amounts are unsecured and bear interest at 7.3% and are repayable on demand. As of December 31, 2015 and 2016, the amount due from Sincere Fame and its subsidiaries represented nil and nil principal receivable, respectively, and RMB36,508 and RMB32,495 interest receivable, respectively. The interest receivables is non-interest bearing. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum lease payments | Minimum Lease Payment RMB Year ending December 31: 2017 30,725 2018 18,935 2019 11,895 2020 6,634 2021 845 Total 69,034 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Concentrations of Credit Risk [Abstract] | |
Schedule of concentration of risk revenues | Year ended December 31, 2014 % of sales 2015 % of sales 2016 % of sales RMB RMB RMB PICC Property and Casualty Company Limited ("PICC") 442,608 20.6 % 676,939 23.9 % 1,247,860 26.5 % Huaxia Life Insurance Comapny Limited ("Huaxia") * * * * 517,759 11.0 % China Pacific Property Insurance Co., Ltd. ("CPIC") 255,655 11.9 % 315,961 11.2 % 487,705 10.4 % Ping An Property & Casualty Insurance Company of China, Ltd. ("Ping An"). 294,228 13.7 % 283,935 10.0 % * * 992,491 46.2 % 1,276,835 45.1 % 2,253,324 47.9 % * represented less than 10% of total net revenues from commissions and fees as of the year. |
Schedule of concentration of risk accounts receivable | As of December 31, 2015 % 2016 % RMB RMB Huaxia 26,456 11.0 % 101,749 20.2 % PICC. 53,851 22.3 % 84,523 16.8 % Tianan Life Insurance Company Limited * * 75,750 15.1 % CPIC 28,947 12.0 % * * 109,254 45.3 % 262,022 52.1 % .0% of account receivables as of the year end. |
Non-Cash Transactions (Tables)
Non-Cash Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Non-Cash Transactions [Abstract] | |
Schudule of non-cash investing and financing activities | Year ended December 31, 2014 2015 2016 RMB RMB RMB Considerations payable in connection with acquisition of subsidiaries and additional interests in subsidiaries 4,685 34,310 — Non-cash consideration in connection with acquisition of additional interests in a subsidiary (Note 3) — — 19,551 Subscription receivables from Employee Companies (Note 2(m) & Note 12) 257,491 — — |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of outstanding options | Number of options Weighted average exercise price in RMB Aggregate Intrinsic Value Outstanding as of January 1, 2014 131,729,497 1.92 15,436 Exercised (1,704,380 ) 2.09 Forfeited (2,113,656 ) 1.92 Modification of the 2012 Options (45,663,861 ) 1.90 Outstanding as of December 31, 2014 82,247,600 1.93 10,177 Exercised (6,754,720 ) 1.92 Forfeited (429,328 ) 1.93 Outstanding as of December 31, 2015 75,063,552 1.93 70,931 Exercised (2,597,400 ) 1.95 Forfeited (147,994 ) 1.90 Outstanding as of December 31, 2016 72,318,158 1.93 68,055 Exercisable as of December 31, 2016 72,318,158 1.93 68,055 |
Summary of information about share option plans | Year ended December 31, 2014 2015 2016 RMB RMB RMB Weighted-average grant-date fair value per share of options granted — — — Total intrinsic value of options exercised 837 17,399 6,406 Total fair value of share options vested 44,912 38,178 13,631 |
Summary of information about stock option plans | Options outstanding Weighted average remaining contractual life (Years) Weighted average exercise price in RMB Options Exercisable 2012 Options G 37,770,812 5.25 0.006 37,770,812 2012 Options H 875,326 5.25 0.006 875,326 2009 Options 6,226,480 1.00 2.30 6,226,480 2008 Options 27,445,540 1.00 1.90 27,445,540 Total 72,318,158 72,318,158 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of revenue and expenses are not allocated to reportable segments and corporate related items | Year ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net revenues Agency 1,624,410 2,155,264 3,746,471 539,604 Brokerage 232,620 369,198 617,738 88,973 Claims Adjusting 292,981 303,846 336,413 48,454 Total net revenues 2,150,011 2,828,308 4,700,622 677,031 Operating costs and expenses Agency (1,486,871 ) (1,969,329 ) (3,667,004 ) (528,158 ) Brokerage (197,017 ) (319,124 ) (595,232 ) (85,731 ) Claims Adjusting (275,539 ) (292,613 ) (306,804 ) (44,189 ) Other (159,685 ) (168,720 ) (117,542 ) (16,930 ) Total operating costs and expenses (2,119,112 ) (2,749,786 ) (4,686,582 ) (675,008 ) Income (loss) from operations Agency 137,539 185,935 79,467 11,446 Brokerage 35,603 50,074 22,506 3,242 Claims Adjusting 17,442 11,233 29,609 4,265 Other (159,685 ) (168,720 ) (117,542 ) (16,930 ) Total income from operations 30,899 78,522 14,040 2,023 As of December 31, 2015 2016 2016 RMB RMB US$ Segment assets Agency 454,803 2,245,121 323,365 Brokerage 160,286 13,041 1,878 Claims Adjusting 226,121 256,004 36,872 Other 3,173,218 1,724,402 248,365 Total assets 4,014,428 4,238,568 610,480 |
Schedule 1-Condensed Financia48
Schedule 1-Condensed Financial Statements of the Company (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule 1-Condensed Financial Statements of the Company [Abstract] | |
Schedule of balance sheets | As of December 31, 2015 2016 2016 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 5,349 10,746 1,548 Other receivables and amounts due from subsidiaries and affiliates 1,607,924 1,742,796 251,014 Total current assets 1,613,273 1,753,542 252,562 Non-current assets: Investment in subsidiaries 1,736,488 1,571,844 226,393 Total assets 3,349,761 3,325,386 478,955 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Other payables 4,602 8,108 1,168 Amounts due to subsidiaries 27,729 30,426 4,382 Total liabilities 32,331 38,534 5,550 Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued and outstanding shares: 1,155,059,526 and 1,165,072,926 as of December 31, 2015 and 2016, respectively) 8,592 8,658 1,247 Additional paid-in capital 2,454,244 2,301,655 331,507 Retained earnings 1,173,471 1,330,518 191,634 Accumulated other comprehensive loss (50,048 ) (65,844 ) (9,483 ) Subscription receivables (268,829 ) (288,135 ) (41,500 ) Total shareholders’ equity 3,317,430 3,286,852 473,405 Total liabilities and shareholders' equity 3,349,761 3,325,386 478,955 |
Schedule of statements of income and comprehensive income | Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ General and administrative expenses (31,191 ) (19,839 ) (9,938 ) (1,433 ) Interest income 12,464 15,913 8,271 1,191 Equity in earnings of subsidiaries 180,487 214,012 158,714 22,860 Net income 161,760 210,086 157,047 22,618 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 6,008 6,153 2,177 314 Fair value changes of short term investment — — 632 91 Share of other comprehensive income (loss) of affiliates, net of tax — 37,567 (37,911 ) (5,460 ) Comprehensive income attributable to the Company's shareholders 167,768 253,806 121,945 17,563 |
Schedule of statements of shareholders' equity | Share Capital Additiona Paid-in Treasury Stock Accumulated Other Number of Share Amounts Capital Number of Share Amounts Retained Earnings Comprehensive Income Subscription Receivables Total RMB RMB RMB RMB RMB RMB RMB Balance as of January 1, 2014 998,861,526 7,624 2,329,962 — — 801,625 (111,114 ) — 3,028,097 Net income — — — — — 161,760 — — 161,760 Issue new shares to employees 150,000,000 928 256,563 — — — — (257,491 ) — Foreign currency translation — — — — — — 6,008 — 6,008 Exercise of share options 1,704,380 11 3,172 — — — — — 3,183 Share-based compensation — — 23,598 — — — — — 23,598 Other — — (11,894 ) — — — — — (11,894 ) Balance as of December 31, 2014 1,150,565,906 8,563 2,601,401 — — 963,385 (105,106 ) (257,491 ) 3,210,752 Net income — — — — — 210,086 — — 210,086 Foreign currency translation — — — — — — 17,491 (11,338 ) 6,153 Repurchase of ordinary shares — — — (2,261,100 ) (6,276 ) — — — (6,276 ) Exercise of share options 4,493,620 29 (4,787 ) 2,261,100 6,276 — — — 1,518 Share-based compensation — — 17,653 — — — — — 17,653 Acquisition of additional interest in a subsidiary — — (160,023 ) — — — — — (160,023 ) Share of other comprehensive income in affiliates — — — — — — 37,567 — 37,567 Balance as of December 31, 2015 1,155,059,526 8,592 2,454,244 — — 1,173,471 (50,048 ) (268,829 ) 3,317,430 Net income — — — — — 157,047 — — 157,047 Foreign currency translation — — — — — — 21,483 (19,306 ) 2,177 Exercise of share options 2,597,400 17 1,127 — — — — — 1,144 Share-based compensation — — 4,937 — — — — — 4,937 Acquisition of additional interest in a subsidiary 7,416,000 49 (174,779 ) — — — — — (174,730 ) Disposal of subsidiaries — — 16,126 — — — — — 16,126 Fair value change in certain investments — — — — — — 632 — 632 Share of other comprehensive income in affiliates — — — — — — (37,911 ) — (37,911 ) Balance as of December 31, 2016 1,165,072,926 8,658 2,301,655 — — 1,330,518 (65,844 ) (288,135 ) 3,286,852 Balance as of December 31, 2016 in US$ 1,247 331,507 — 191,634 (9,483 ) (41,500 ) 473,405 |
Schedule of statements of cash flows | Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ OPERATING ACTIVITIES Net income 161,760 210,086 157,047 22,618 Adjustments to reconcile net income to net cash generated from (used in) operating activities: Equity in earnings of subsidiaries (180,487 ) (214,012 ) (158,714 ) (22,860 ) Compensation expenses associated with stock options 23,598 17,653 4,937 711 Changes in operating assets and liabilities: Other receivables 39,810 (67,925 ) (9,290 ) (1,338 ) Other payables (42,379 ) 1,879 3,506 506 Net cash generated from (used in) operating activities 2,302 (52,319 ) (2,514 ) (363 ) Cash flows (used in) generated from investing activities Decrease in investment in subsidiaries 29,853 55,363 127,475 18,361 Advances to subsidiaries and affiliates (43,110 ) (8,797 ) (122,885 ) (17,699 ) Net cash (used in) generated from investing activities (13,257 ) 46,566 4,590 662 Cash flows generated from (used in ) financing activities: Proceeds on exercise of stock options 3,183 1,518 1,144 165 Repurchase ordinary shares — (6,276 ) — — Net cash generated from (used in) financing activities 3,183 (4,758 ) 1,144 165 Net (decrease) increase in cash and cash equivalents (7,772 ) (10,511 ) 3,220 464 Cash and cash equivalents at beginning of year 11,471 9,707 5,349 770 Effect of exchange rate changes on cash and cash equivalents 6,008 6,153 2,177 314 Cash and cash equivalents at end of year 9,707 5,349 10,746 1,548 |
Organization and Description 49
Organization and Description of Business (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Description of Business (Textual) | |
Entity Incorporation, Date of Incorporation | Apr. 10, 2007 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) |
Summary of Significant Accounting Policies [Abstract] | |||||
Accounts receivable | ¥ 519,767 | ¥ 254,510 | |||
Allowance for doubtful accounts | (16,792) | $ (2,419) | (13,246) | ¥ (16,587) | ¥ (12,655) |
Accounts receivable, net | ¥ 502,975 | $ 72,443 | ¥ 241,264 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Summary of Significant Accounting Policies [Abstract] | ||||
Balance at the beginning of the year | ¥ 13,246 | ¥ 16,587 | ¥ 12,655 | |
Provision for doubtful accounts | 3,700 | 4,991 | 3,932 | |
Write-offs | (154) | (8,332) | ||
Balance at the end of the year | ¥ 16,792 | $ 2,419 | ¥ 13,246 | ¥ 16,587 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2016 | |
Building [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated residual value | 0.00% |
Leasehold Improvements [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life (Years) | 5 years |
Estimated residual value | 0.00% |
Minimum [Member] | Building [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life (Years) | 20 years |
Minimum [Member] | Office equipment, furniture and fixtures [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life (Years) | 3 years |
Estimated residual value | 0.00% |
Minimum [Member] | Motor vehicles [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life (Years) | 5 years |
Estimated residual value | 0.00% |
Maximum [Member] | Building [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life (Years) | 36 years |
Maximum [Member] | Office equipment, furniture and fixtures [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life (Years) | 5 years |
Estimated residual value | 3.00% |
Maximum [Member] | Motor vehicles [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life (Years) | 10 years |
Estimated residual value | 3.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Depreciation for the year | ¥ 13,492 | $ 1,943 | ¥ 18,383 | ¥ 28,235 |
Commission and fees under operating costs [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Depreciation for the year | 185 | 2,056 | 5,508 | |
Selling expenses [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Depreciation for the year | 1,590 | 1,180 | 1,282 | |
General and administrative expenses [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Depreciation for the year | ¥ 11,717 | ¥ 15,147 | ¥ 21,445 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Details 4) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Cost | ¥ 227,504 | ¥ 185,354 | ||
Accumulated amortization | (119,083) | (111,520) | ||
Accumulated Impairment Loss | (48,949) | (54,126) | ||
Net carrying values | ¥ 59,472 | ¥ 19,708 | $ 8,566 | |
Brand name [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years), Description | Indefinite. | Indefinite. | ||
Cost | ¥ 20,111 | ¥ 20,111 | ||
Accumulated amortization | ||||
Accumulated Impairment Loss | (16,404) | (16,404) | ||
Net carrying values | 3,707 | 3,707 | ||
Trade name [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost | 8,898 | 8,898 | ||
Accumulated amortization | (5,750) | (4,808) | ||
Accumulated Impairment Loss | ||||
Net carrying values | 3,148 | 4,090 | ||
Customer relationship [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost | 60,696 | 61,186 | ||
Accumulated amortization | (53,324) | (51,264) | ||
Accumulated Impairment Loss | (2,953) | (2,953) | ||
Net carrying values | 4,419 | 6,969 | ||
Non-compete agreement [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost | 52,195 | 69,075 | ||
Accumulated amortization | (22,539) | (33,819) | ||
Accumulated Impairment Loss | (29,515) | (34,692) | ||
Net carrying values | 141 | 564 | ||
Agency agreement and license [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost | 19,924 | 20,404 | ||
Accumulated amortization | (16,790) | (15,949) | ||
Accumulated Impairment Loss | (77) | (77) | ||
Net carrying values | 3,057 | 4,378 | ||
Software and system [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost | 65,680 | 5,680 | ||
Accumulated amortization | (20,680) | ¥ (5,680) | ||
Accumulated Impairment Loss | ||||
Net carrying values | ¥ 45,000 | |||
Minimum [Member] | Trade name [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 9 years 4 months 24 days | 9 years 4 months 24 days | ||
Minimum [Member] | Customer relationship [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 4 years 7 months 6 days | 4 years 7 months 6 days | ||
Minimum [Member] | Non-compete agreement [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 3 years | 3 years | ||
Minimum [Member] | Agency agreement and license [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 4 years 7 months 6 days | 4 years 7 months 6 days | ||
Minimum [Member] | Software and system [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 2 years | 5 years | ||
Maximum [Member] | Trade name [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 10 years | 10 years | ||
Maximum [Member] | Customer relationship [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 9 years 9 months 18 days | 9 years 9 months 18 days | ||
Maximum [Member] | Non-compete agreement [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 6 years 3 months | 6 years 3 months | ||
Maximum [Member] | Agency agreement and license [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 9 years 9 months 18 days | 9 years 9 months 18 days | ||
Maximum [Member] | Software and system [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful life (Years) | 10 years | 10 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Details 5) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Summary of Significant Accounting Policies [Line Items] | ||||
Short-term investments - debt security | ¥ 2,797,842 | $ 402,973 | ¥ 2,026,256 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Debt Security [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Short-term investments - debt security | ||||
Significant Other Observable Inputs (Level 2) [Member] | Debt Security [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Short-term investments - debt security | ¥ | ¥ 2,797,842 | ¥ 2,026,256 | ||
Significant Unobservable Inputs (Level 3) [Member] | Debt Security [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Short-term investments - debt security |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2014shares | Dec. 31, 2016CNY (¥)Segmentsshares | Dec. 31, 2016USD ($)Segmentsshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2014$ / shares | Dec. 17, 2014$ / shares | |
Summary of Significant Accounting Policies (Textual) | |||||||||
Escrow deposit | ¥ 28,246 | ¥ 12,398 | $ 4,068 | ||||||
Receivable, past due balance, term | 90 days | 90 days | |||||||
Amortization of acquired intangible assets | ¥ 20,232 | $ 2,914 | 11,571 | ¥ 16,826 | |||||
Estimated amortization expense in 2017 | 33,850 | ||||||||
Estimated amortization expense in 2018 | 18,667 | ||||||||
Estimated amortization expense in 2019 | 2,502 | ||||||||
Estimated amortization expense in 2020 | 658 | ||||||||
Estimated amortization expense in 2021 | 88 | ||||||||
Subscription receivables from employee companies | ¥ 288,135 | ¥ 268,829 | $ 41,500 | ||||||
Treasury shares, repurchased | shares | 2,261,100 | ||||||||
Repurchase of treasury stock, cash consideration | ¥ 6,276 | ||||||||
Share-based compensation expenses | ¥ 4,937 | $ 711 | ¥ 17,653 | ¥ 23,598 | |||||
Cancellation of policies, adjustments | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||||
Sales taxes, amount | ¥ 81,890 | ¥ 157,234 | ¥ 120,965 | ||||||
Total value-added taxes, paid | 160,556 | 16,370 | 14,997 | ||||||
Cash and cash equivalents, foreign currency risk | ¥ 253,725 | 1,115,296 | |||||||
Foreign currency exchange rate, description | Translations of amounts from RMB into U.S. dollars are solely for the convenience of the readers and were calculated at the rate of US$1.00 = RMB6.943. | Translations of amounts from RMB into U.S. dollars are solely for the convenience of the readers and were calculated at the rate of US$1.00 = RMB6.943. | |||||||
Number of operating segments | Segments | 3 | 3 | |||||||
Advertising costs | ¥ 18,085 | 5,696 | 6,553 | ||||||
Marketing expense | 299,885 | 19,503 | |||||||
Allowance for other receivables | ¥ 2,606 | ¥ 2,128 | |||||||
Reversal allowance for other receivables | ¥ 1,319 | ||||||||
Employee Companies [Member] | |||||||||
Summary of Significant Accounting Policies (Textual) | |||||||||
Issuance of shares to employees | shares | 150,000,000 | 150,000,000 | |||||||
Average closing price, trading days | 20 days | 20 days | |||||||
Loan bears interest rate, per annum | 3.00% | ||||||||
Loan termination, term | 2 years | 2 years | |||||||
Expiry of loan agreement, description | Upon the expiry of the loan agreement on December 17, 2016, the repayment of the loan was further extended to June 2018 and the loan is interest bearing at rate of 3.0% per annum. | Upon the expiry of the loan agreement on December 17, 2016, the repayment of the loan was further extended to June 2018 and the loan is interest bearing at rate of 3.0% per annum. | |||||||
Share Purchase Agreement One [Member] | Employee Companies [Member] | |||||||||
Summary of Significant Accounting Policies (Textual) | |||||||||
Issuance of shares to employees | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Shares issued, price per share | $ / shares | $ 0.27 | ||||||||
Share Purchase Agreement Two [Member] | Employee Companies [Member] | |||||||||
Summary of Significant Accounting Policies (Textual) | |||||||||
Issuance of shares to employees | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Shares issued, price per share | $ / shares | $ 0.29 | $ 0.29 | $ 5.8 |
Acquisitions, disposals and r57
Acquisitions, disposals and reorganization (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Acquisitions, disposals and reorganization [Abstract] | ||||
Net income attributable to the Company's shareholders | ¥ 157,047 | $ 22,618 | ¥ 210,086 | ¥ 161,760 |
Decrease in Company's additional paid-in capital for acquisitions of additional equity interests from noncontrolling interests | (179,223) | (187,810) | ¥ (11,371) | |
Changes from net income attributable to Company's shareholders and transfers to noncontrolling interests | ¥ (17,732) | ¥ 50,063 |
Acquisitions, disposals and r58
Acquisitions, disposals and reorganization (Details Textual) ¥ in Thousands | May 09, 2016CNY (¥) | Jan. 31, 2016CNY (¥) | Jul. 31, 2015CNY (¥) | Jul. 31, 2015USD ($) | Jun. 30, 2015CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Acquisitions and disposals reorganization (Textual) | |||||||
Acquisition of equity interest, percentage | 15.40% | ||||||
Total consideration receivable | ¥ 198,776 | ¥ 58,800 | |||||
Business acquisition, description | (i) RMB179,223 in cash after netting off with the receivable of RMB1,836 in relation with the exercise of the Inscom share options, (ii) 7,416,000 ordinary shares of the Company. Upon completion of the acquisition in May 2016, the Group's equity interests in Inscom increased from 65.1% to 100%. | ||||||
Additional interest of subsidiaries | ¥ 187,810 | ||||||
Equity adjustment, cash consideration | ¥ 10,000 | ||||||
Disposals of subsidiaries total consideration | ¥ 30,712 | ||||||
Gain on disposal of subsidiaries | ¥ 3,146 | ||||||
FHISLA [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Equity method investment, ownership percentage | 42.90% | 42.90% | |||||
Sale of stock, percentage of ownership before transaction | 19.90% | 19.90% | 44.70% | ||||
Yuanqian and Longqian [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Ownership interest | 12.40% | ||||||
Yuanqian and Longqian [Member] | FHISLA [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Equity adjustment, cash consideration | ¥ 17,000 | ||||||
Yuanqian and Longqian [Member] | FHISLA [Member] | 22 Individuals [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Stock based compensation expense | $ | $ 3,400 | ||||||
Fangzhong [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Equity method investment, ownership percentage | 44.70% | 44.70% | |||||
Fangzhong [Member] | Meidiya Investments [Member] | FHISLA [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Total consideration receivable | ¥ 61,200 | ||||||
Chetong Network [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Equity adjustment, cash consideration | ¥ 16,020 | ||||||
Sale of stock, percentage of ownership before transaction | 80.10% | 80.10% | |||||
Chetong Network [Member] | FHISLA [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Equity adjustment, cash consideration | ¥ 3,980 | ||||||
Sale of stock, percentage of ownership before transaction | 19.90% | 19.90% | |||||
Share purchase agreement [Member] | |||||||
Acquisitions and disposals reorganization (Textual) | |||||||
Acquisition of equity interest, percentage | 34.90% |
Other Receivables (Details)
Other Receivables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Other Receivables [Abstract] | ||||
Advances to staff | [1] | ¥ 9,250 | ¥ 6,492 | |
Advances to entrepreneurial agents | [2] | 1,270 | 367 | |
Rental deposits | 8,041 | 7,655 | ||
Interest income receivables | [3] | 17,620 | 29,708 | |
Other | 13,005 | 7,606 | ||
Other receivables, net | ¥ 49,186 | $ 7,084 | ¥ 51,828 | |
[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 accrued interest income on bank deposits and accrued interest on subscription receivables (note 2(m)). |
Property, Plant and Equipment60
Property, Plant and Equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Total | ¥ 179,409 | ¥ 176,716 | |
Less: Accumulated depreciation | (147,995) | (142,571) | |
Property, plant and equipment, net | 31,414 | $ 4,525 | 34,145 |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 12,317 | 12,317 | |
Office equipment, furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 130,172 | 128,401 | |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 23,774 | 26,341 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | ¥ 13,146 | ¥ 9,657 |
Property, Plant and Equipment61
Property, Plant and Equipment (Details Textual) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment (Textual) | |||
Iimpairment for property, plant and equipment |
Goodwill (Details)
Goodwill (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Goodwill [Line Items] | |||
Balance as of December 31, 2015 | ¥ 133,474 | ¥ 133,474 | |
Eliminated on disposal of a subsidiary | 162,211 | 16,940 | |
Balance as of December 31, 2016 | 122,077 | $ 17,583 | 133,474 |
Agency segment [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Balance as of December 31, 2015 | 133,474 | ||
Eliminated on disposal of a subsidiary | (11,397) | ||
Balance as of December 31, 2016 | ¥ 122,077 | ¥ 133,474 |
Goodwill (Details 1)
Goodwill (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Goodwill [Line Items] | |||
Gross, Beginning | ¥ 1,117,239 | ¥ 1,134,179 | |
Eliminated on disposal of a subsidiary | (173,608) | (16,940) | |
Gross, Ending | 943,631 | 1,117,239 | |
Accumulated impairment loss | (983,765) | (1,000,705) | |
Eliminated on disposal of a subsidiary | 162,211 | 16,940 | |
Accumulated impairment loss | (821,554) | (983,765) | |
Balance as of December 31, 2015 | 133,474 | 133,474 | |
Balance as of December 31, 2016 | 122,077 | $ 17,583 | 133,474 |
Agency segment [Member] | |||
Goodwill [Line Items] | |||
Gross, Beginning | 1,096,102 | 1,096,102 | |
Eliminated on disposal of a subsidiary | (173,608) | ||
Gross, Ending | 922,494 | 1,096,102 | |
Accumulated impairment loss | (962,628) | (962,628) | |
Eliminated on disposal of a subsidiary | 162,211 | ||
Accumulated impairment loss | (800,417) | (962,628) | |
Balance as of December 31, 2015 | 133,474 | 133,474 | |
Balance as of December 31, 2016 | 122,077 | 133,474 | |
Claims Adjusting segment [Member] | |||
Goodwill [Line Items] | |||
Gross, Beginning | 21,137 | 38,077 | |
Eliminated on disposal of a subsidiary | (16,940) | ||
Gross, Ending | 21,137 | 21,137 | |
Accumulated impairment loss | (21,137) | (38,077) | |
Eliminated on disposal of a subsidiary | 16,940 | ||
Accumulated impairment loss | (21,137) | (21,137) | |
Balance as of December 31, 2015 | |||
Balance as of December 31, 2016 |
Goodwill (Details Textual)
Goodwill (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill (Textual) | |||
Goodwill, impairment loss |
Investments in Affiliates (Deta
Investments in Affiliates (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Investments in and Advances to Affiliates [Line Items] | |||
Total | ¥ 294,576 | $ 42,427 | ¥ 284,194 |
Teamhead Automobile [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Total | 227 | 528 | |
Sincere Fame [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Total | ¥ 294,349 | ¥ 283,666 |
Investments in Affiliates (De66
Investments in Affiliates (Details Textual) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Investment in Affiliates (Textual) | ||||
Share of income of affiliates | ¥ 48,293 | $ 6,955 | ¥ 26,924 | ¥ 30,649 |
Share of other comprehensive income of affiliates, net of tax | ¥ (37,911) | ¥ 37,567 | ||
Teamhead Automobile [Member] | ||||
Investment in Affiliates (Textual) | ||||
Significant subsidiary test percentage | 40.00% | 40.00% | 40.00% | |
Sincere Fame International [Member] | ||||
Investment in Affiliates (Textual) | ||||
Significant subsidiary test percentage | 20.60% | 20.60% | 20.60% |
Variable Interest Entities (Det
Variable Interest Entities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entities [Abstract] | ||
Total assets | ¥ 103,740 | |
Total liabilities | ¥ 104,795 |
Variable Interest Entities (D68
Variable Interest Entities (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Net cash (used in) generated from operating activities | ¥ 87,846 | $ 12,652 | ¥ 281,304 | ¥ 261,649 |
Net cash generated from (used in) investing activities | (748,758) | (107,843) | (1,131,551) | (445,395) |
Net cash generated from financing activities | (216,575) | $ (31,193) | (143,708) | (7,817) |
Variable Interest Entities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Net Revenues | 33,679 | 108,133 | 72,645 | |
Net loss | (4,598) | (14,554) | (9,636) | |
Net cash (used in) generated from operating activities | (11,536) | 37,943 | (49,782) | |
Net cash generated from (used in) investing activities | 2,601 | (31,682) | 14,709 | |
Net cash generated from financing activities | ¥ 33,370 |
Other Payables and Accrued Ex69
Other Payables and Accrued Expenses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Payables and Accrued Expenses [Abstract] | |||
Business and other tax payable | ¥ 59,919 | ¥ 35,358 | |
Refundable deposits from employees and agents | 23,472 | 13,239 | |
Professional fees | 45,745 | 18,553 | |
Accrued expenses to third parties | [1] | 79,847 | 42,622 |
Payables for addition of office equipment, furniture and fixtures | 8,618 | 8,618 | |
Advance from third parties | 47,534 | 35,808 | |
Insurance compensation claim payable to customers | 875 | 823 | |
Payable for equity acquisition of investment in affiliates/additional equity interest in subsidiaries | 38,495 | ||
Contributions from members of eHuzhu mutual aid program | 25,605 | 8,995 | |
Others | 22,436 | 11,051 | |
Total | ¥ 314,051 | ¥ 213,562 | |
[1] | As of December 31, 2015, included in accrued expenses to third parties represented an amount of RMB19,500 payable to Chengdu Puyi Bohui Information Technology Co., Ltd, the shareholder of Fanhua Puyi Fund Sales Co. Ltd. ("Puyi Fund Sales") for marketing activities. The amount was settled in 2016. The Group beneficially owns 15.4% equity interests in Puyi Fund Sales. Other than the amount payable to Puyi Fund Sales, the remaining balance mainly represented the accrued commission payable to the agents. |
Other Payables and Accrued Ex70
Other Payables and Accrued Expenses (Details Textual) ¥ in Thousands | Dec. 31, 2015CNY (¥) |
Other Payables and Accrued Expenses (Textual) | |
Percentage of equity interests in Puyi Fund Sales | 15.40% |
Chengdu Puyi Bohui Information Technology Co., Ltd [Member] | |
Other Payables and Accrued Expenses (Textual) | |
Accrued expenses payable | ¥ 19,500 |
Percentage of equity interests in Puyi Fund Sales | 15.40% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefit Plans (Textual) | |||
Employee group contributed, amount | ¥ 57,090 | ¥ 47,955 | ¥ 45,467 |
Minimum [Member] | |||
Employee Benefit Plans (Textual) | |||
Percentage of employees contribution | 10.00% | ||
Maximum [Member] | |||
Employee Benefit Plans (Textual) | |||
Percentage of employees contribution | 22.00% |
Income Taxes (Details)
Income Taxes (Details) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | |
Income Taxes [Abstract] | |||||
Balance | ¥ 70,354 | ¥ 53,855 | ¥ 50,735 | ||
Change in unrecognized tax benefits | $ 825 | (4,808) | |||
Gross increase in tax positions | 2,424 | 15,674 | 7,928 | ||
Balance | ¥ 72,778 | $ 10,482,000 | ¥ 70,354 | ¥ 53,855 |
Income Taxes (Details 1)
Income Taxes (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | |
Income Taxes [Abstract] | ||||||
Current tax expense | ¥ 43,089 | ¥ 26,932 | ¥ 25,607 | |||
Deferred tax income | (14,736) | (1,067) | (1,318) | |||
Income tax expense | ¥ 28,353 | $ 4,084 | ¥ 25,865 | ¥ 24,289 |
Income Taxes (Details 2)
Income Taxes (Details 2) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current deferred tax assets: | ||
Operating loss carryforward | ¥ 1,079 | |
Less: valuation allowances | (1,079) | |
Current deferred tax asset, net | ||
Non-current deferred tax assets: | ||
Operating loss carryforward, after offset unrecognized tax benefits | 33,611 | 27,245 |
Less: valuation allowances | (25,334) | (25,587) |
Non-current deferred tax asset, net | 8,277 | 1,658 |
Total | 8,277 | 1,658 |
Deferred tax liabilities: | ||
Intangible assets, net | 2,604 | 3,895 |
Investment income | 11,973 | 18,162 |
Total | ¥ 14,577 | ¥ 22,057 |
Income Taxes (Details 3)
Income Taxes (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | |
Income Taxes [Abstract] | ||||||
Income before income taxes and income of affiliates | ¥ 147,698 | $ 21,273 | ¥ 214,422 | ¥ 159,720 | ||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax at statutory tax rate | ¥ 36,925 | ¥ 53,605 | ¥ 39,930 | |||
Expenses not deductible for tax purposes: | ||||||
Entertainment | 973 | 685 | 579 | |||
Other | 3,691 | 5,176 | 6,482 | |||
Tax exemption and tax relief: | ||||||
Tax rate differential | (4,089) | (44,381) | (34,315) | |||
Change in valuation allowance | (1,332) | (4,194) | 2,934 | |||
Uncertain tax provisions | 2,424 | 15,674 | 7,928 | |||
Effect of utilization of deductible temporary difference previously unrecognized | (12,872) | |||||
Other | 2,633 | (700) | 751 | |||
Income tax expense | ¥ 28,353 | $ 4,084 | ¥ 25,865 | ¥ 24,289 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textual) | |||||
Income taxes, Description | Litian, Shenzhen Fanhua Software Technology Co., Ltd (“Fanhua Software”), Shenzhen Huazhong United Technology Co., Ltd (“Huazhong”) and Ying Si Kang Information, subsidiaries of the Group, were regarded as software companies 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 Litian, year 2010 was the first profit-making year and accordingly, Litian and has made a 12.5% tax provision for its profits for the years ended December 31, 2012, 2013 and 2014. For Fanhua Software, year 2012 was the first profit-making year and accordingly, Fanhua Software has made a 12.5% tax provision for its profits for the years ended December 31, 2014, 2015 and 2016. For Huazhong, year 2015 was the first profit-making year and accordingly it has not made any provision for PRC income tax for the years ended December 31, 2015 and 2016. For Ying Si Kang Information, year 2014 was the first profit-making year and accordingly it has not made any provision for PRC income tax for the years ended December 31, 2014 and 2015, and has made a 12.5% tax provision for its profits for the year ended December 31, 2016. | ||||
Provision for income taxes, Percentage | 25.00% | 25.00% | 25.00% | ||
PRC income tax reduction, Percentage | 50.00% | ||||
Income tax reduction period | 3 years | ||||
Underpayment of income tax liability | ¥ 100 | ||||
Valuation allowance | 1,079 | ||||
Operating loss carry-forwards | 150,373 | 131,198 | ¥ 166,557 | ||
Tax loss carried forward expired and canceled | 29,431 | 4,251 | |||
PRC income taxes payable without tax exemption amount | ¥ 4,089 | ¥ 44,381 | ¥ 34,315 | ||
Basic and diluted net profit per share | ¥ 0 | ¥ 0.04 | ¥ 0.03 | ||
Dividend paid, Description | If the entities were to be non-resident for PRC tax purpose, 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 SAR, the withholding tax would be 5%. | ||||
Undistributed earnings of Group's subsidiaries and VIEs | ¥ 2,058,189 | ¥ 1,954,541 | |||
Undistributed earnings of deferred tax liability | ¥ 205,819 | ¥ 195,454 | |||
Deferred tax liability, Description | 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. | ||||
2017 [Member] | |||||
Income Taxes (Textual) | |||||
Operating loss carry-forwards | ¥ 13,404 | ||||
2018 [Member] | |||||
Income Taxes (Textual) | |||||
Operating loss carry-forwards | 19,295 | ||||
2019 [Member] | |||||
Income Taxes (Textual) | |||||
Operating loss carry-forwards | 25,203 | ||||
2020 [Member] | |||||
Income Taxes (Textual) | |||||
Operating loss carry-forwards | 26,961 | ||||
2021 [Member] | |||||
Income Taxes (Textual) | |||||
Operating loss carry-forwards | ¥ 65,510 | ||||
Hong Kong [Member] | |||||
Income Taxes (Textual) | |||||
Provision for income taxes, Percentage | 16.50% | 16.50% | 16.50% | ||
PRC [Member] | |||||
Income Taxes (Textual) | |||||
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. | ||||
PRC income tax reduction, Percentage | 50.00% | ||||
Income tax reduction period | 3 years | ||||
Underpayment of income tax liability | ¥ 100 | ||||
PRC [Member] | Fanhua Software [Member] | |||||
Income Taxes (Textual) | |||||
Provision for income taxes, Percentage | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% |
PRC [Member] | Ying Si Kang Information [Member] | |||||
Income Taxes (Textual) | |||||
Provision for income taxes, Percentage | 12.50% | 12.50% | 12.50% | ||
PRC [Member] | Litian [Member] | |||||
Income Taxes (Textual) | |||||
Provision for income taxes, Percentage | 12.50% |
Capital Structure (Details)
Capital Structure (Details) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2014shares | Dec. 31, 2016¥ / shares$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015¥ / sharesshares | Dec. 31, 2014¥ / shares$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 17, 2014$ / shares | |
Capital structure (Textual) | |||||||
Basic net income per ADS | (per share) | ¥ 2.71 | $ 0.39 | ¥ 3.65 | ¥ 3.22 | |||
Loans bear interest rate | 3.00% | 3.00% | 13.04% | 13.04% | |||
Termination of employment | Termination of employment or within two years, whichever comes first. | Termination of employment or within two years, whichever comes first. | |||||
Due date of loans | Jun. 30, 2018 | Jun. 30, 2018 | |||||
Employee Companies [Member] | |||||||
Capital structure (Textual) | |||||||
Issue new shares to employees, shares | 150,000,000 | 150,000,000 | |||||
Average closing price, trading days | 20 days | 20 days | |||||
Employee Companies [Member] | Share Purchase Agreement One [Member] | |||||||
Capital structure (Textual) | |||||||
Issue new shares to employees, shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||
Basic net income per ADS | $ / shares | $ 5.40 | ||||||
Shares issued, price per share | $ / shares | ¥ 0.27 | $ 0.27 | |||||
Employee Companies [Member] | Share Purchase Agreement Two [Member] | |||||||
Capital structure (Textual) | |||||||
Issue new shares to employees, shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||
Basic net income per ADS | $ / shares | $ 5.8 | ||||||
Shares issued, price per share | $ / shares | ¥ 0.29 | $ 0.29 | ¥ 0.29 | $ 0.29 | $ 5.8 | ||
Subsidiary [Member] | |||||||
Capital structure (Textual) | |||||||
Percentage of equity ownership | 0.64% | 0.64% | |||||
Acquisition of additional shares in subsidiaries, shares | 7,416,000 | 7,416,000 | |||||
Public market [Member] | |||||||
Capital structure (Textual) | |||||||
Percentage of equity ownership | 0.20% | ||||||
Repurchase of ordinary shares, shares | 2,261,100 | ||||||
Options [Member] | |||||||
Capital structure (Textual) | |||||||
Exercised of share options, shares | 2,597,400 | 2,597,400 | 1,704,380 | 1,704,380 | |||
Percentage of equity ownership | 0.22% | 0.22% | 0.59% | 0.15% | 0.15% | ||
Repurchase of ordinary shares, shares | 2,261,100 | ||||||
Issue new shares to employees, shares | 4,493,620 |
Net Income Per Share (Details)
Net Income Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2015$ / shares | Dec. 31, 2014CNY (¥)¥ / sharesshares | |
Basic: | |||||
Net income | ¥ 167,638 | $ 24,144 | ¥ 215,481 | ¥ 166,080 | |
Less: Net income attributable to the noncontrolling interests | 10,591 | 1,526 | 5,395 | 4,320 | |
Net income attributable to the Fanhua's shareholders | ¥ 157,047 | $ 22,618 | ¥ 210,086 | ¥ 161,760 | |
Weighted average number of ordinary shares outstanding | 1,160,592,325 | 1,160,592,325 | 1,151,705,374 | 1,005,842,212 | |
Basic net income per ordinary share | (per share) | ¥ 0.14 | $ 0.02 | ¥ 0.18 | ¥ 0.16 | |
Basic net income per ADS | (per share) | ¥ 2.71 | $ 0.39 | ¥ 3.65 | ¥ 3.22 | |
Diluted: | |||||
Net income | ¥ 167,638 | $ 24,144 | ¥ 215,481 | ¥ 166,080 | |
Less: Net income attributable to the noncontrolling interests | ¥ | 10,591 | 5,395 | 4,320 | ||
Net income attributable to the Company's shareholders | ¥ | ¥ 157,047 | ¥ 210,086 | ¥ 161,760 | ||
Weighted average number of ordinary shares outstanding | 1,160,592,325 | 1,160,592,325 | 1,151,705,374 | 1,005,842,212 | |
Weighted average number of dilutive potential ordinary shares from share options | 48,229,471 | 48,229,471 | 51,618,147 | 6,749,175 | |
Total | 1,208,821,796 | 1,208,821,796 | 1,203,323,521 | 1,012,591,387 | |
Diluted net income per ordinary share | (per share) | ¥ 0.13 | $ 0.02 | ¥ 0.17 | $ 0.54 | ¥ 0.16 |
Diluted net income per ADS | (per share) | ¥ 2.6 | $ 0.37 | ¥ 3.49 | ¥ 3.19 |
Net Income Per Share (Details T
Net Income Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income Per Share (Textual) | |||
Antidilutive securities, shares | 16,920 |
Distribution of Profits (Detail
Distribution of Profits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Distribution of profits (Textual) | |||
Appropriations to the statutory surplus reserve percentage | 50.00% | ||
Statutory reserves | ¥ 311,590 | $ 44,878 | ¥ 302,115 |
PRC [Member] | |||
Distribution of profits (Textual) | |||
Appropriations to the statutory surplus reserve percentage | 10.00% |
Related Party Balances and Tr81
Related Party Balances and Transactions (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | ||
Related Party Transaction [Line Items] | |||||
Amounts due from an equity method affiliate and its subsidiaries, net | ¥ 32,495 | $ 4,680 | [1] | ¥ 36,508 | [1] |
Subscription receivables (Note 2(m) & Note 12) | ¥ 288,135 | $ 41,500 | ¥ 268,829 | ||
[1] | The Group agreed to grant a revolving loan with a maximum amount of US$50,000 (equivalent to RMB317,990 as per the agreement) to Sincere Fame and its subsidiaries pursuant to a facility letter entered in October 2011 (the "Facility"). The Facility is valid for two years and is renewed upon mutual agreement for another two years in October 2013 and October 2015, separately. On January 1, 2012, the Group and Sincere Fame further entered into a supplemental loan agreement, which established the legal rights to offset the interests and amounts receivable or payable between the Group and Sincere Fame, and all the subsidiaries of the Group and Sincere Fame. The amounts are unsecured and bear interest at 7.3% and are repayable on demand. As of December 31, 2015 and 2016, the amount due from Sincere Fame and its subsidiaries represented nil and nil principal receivable, respectively, and RMB36,508 and RMB32,495 interest receivable, respectively. The interest receivables is non-interest bearing. |
Related Party Balances and Tr82
Related Party Balances and Transactions (Details Textual) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2012 | Oct. 31, 2011CNY (¥) | Oct. 31, 2011USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Sincere Fame [Member] | ||||||||
Related Party Balances and Transactions (Textual) | ||||||||
Interest rate | 7.30% | |||||||
Principal receivable | $ | ||||||||
Interest receivable | ¥ 32,495 | ¥ 36,508 | ||||||
Sincere Fame [Member] | Facility [Member] | ||||||||
Related Party Balances and Transactions (Textual) | ||||||||
Revolving loan amount | ¥ 317,990 | $ 50,000 | ||||||
Term of loan, description | The Facility is valid for two years and is renewed upon mutual agreement for another two years in October 2013 and October 2015, separately. | The Facility is valid for two years and is renewed upon mutual agreement for another two years in October 2013 and October 2015, separately. | ||||||
The Group [Member] | ||||||||
Related Party Balances and Transactions (Textual) | ||||||||
Affiliates interest income | ¥ 8,088 | ¥ 12,170 |
Commitments and Contingencies83
Commitments and Contingencies (Details) ¥ in Thousands | Dec. 31, 2016CNY (¥) |
Commitments and Contingencies [Abstract] | |
2,017 | ¥ 30,725 |
2,018 | 18,935 |
2,019 | 11,895 |
2,020 | 6,634 |
2,021 | 845 |
Total | ¥ 69,034 |
Commitments and Contingencies84
Commitments and Contingencies (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and contingencies [Textual] | |||
Rental expenses | ¥ 40,394 | ¥ 36,206 | ¥ 27,455 |
Concentrations of Credit Risk85
Concentrations of Credit Risk (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | ||||
Concentration Risk [Line Items] | |||||||
Accounts receivable, net | ¥ 502,975 | ¥ 241,264 | $ 72,443 | ||||
Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 2,253,324 | ¥ 1,276,835 | ¥ 992,491 | ||||
Concentration risk percentage | 47.90% | 45.10% | 46.20% | ||||
Revenue [Member] | PICC [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 1,247,860 | ¥ 676,939 | ¥ 442,608 | ||||
Concentration risk percentage | 26.50% | 23.90% | 20.60% | ||||
Revenue [Member] | Huaxia [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 517,759 | [1] | [1] | ||||
Concentration risk percentage | 11.00% | [1] | [1] | ||||
Revenue [Member] | CPIC [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 487,705 | ¥ 315,961 | ¥ 255,655 | ||||
Concentration risk percentage | 10.40% | 11.20% | 11.90% | ||||
Revenue [Member] | Ping An [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | [1] | ¥ 283,935 | ¥ 294,228 | ||||
Concentration risk percentage | [1] | 10.00% | 13.70% | ||||
Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 262,022 | ¥ 109,254 | |||||
Concentration risk percentage | 52.10% | 45.30% | |||||
Accounts receivable [Member] | PICC [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 84,523 | ¥ 53,851 | |||||
Concentration risk percentage | 16.80% | 22.30% | |||||
Accounts receivable [Member] | Huaxia [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 101,749 | ¥ 26,456 | |||||
Concentration risk percentage | 20.20% | 11.00% | |||||
Accounts receivable [Member] | CPIC [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | [2] | ¥ 28,947 | |||||
Concentration risk percentage | [2] | 12.00% | |||||
Accounts receivable [Member] | Tianan Life Insurance Company Limited [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk amount | ¥ 75,750 | [2] | |||||
Concentration risk percentage | 15.10% | [2] | |||||
[1] | represented less than 10% of total net revenues as of the year. | ||||||
[2] | represented less than 10.0% of account receivables as of the year end. |
Concentrations of Credit Risk86
Concentrations of Credit Risk (Details Textual) - Customers [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Accounts receivable [Member] | |
Concentrations of Credit Risk (Textual) | |
Concentration risk percentage, description | Represented less than 10.0% of account receivables as of the year end. |
Revenue [Member] | |
Concentrations of Credit Risk (Textual) | |
Concentration risk percentage, description | Represented less than 10% of total net revenues from commissions and fees as of the year. |
Non-Cash Transactions (Details)
Non-Cash Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Non-Cash Transactions [Abstract] | |||
Considerations payable in connection with acquisition of subsidiaries and additional interests in subsidiaries | ¥ 34,310 | ¥ 4,685 | |
Non-cash consideration in connection with acquisition of additional interests in a subsidiary (Note 3) | 19,551 | ||
Subscription receivables from Employee Companies (Note 2(m) & Note 12) | ¥ 257,491 |
Share-based Compensation (Detai
Share-based Compensation (Details) - Stock Option [Member] - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of options | |||
Outstanding beginning balance | 75,063,552 | 82,247,600 | 131,729,497 |
Exercised | (2,597,400) | (6,754,720) | (1,704,380) |
Forfeited | (147,994) | (429,328) | (2,113,656) |
Modification of the 2012 Options | 45,663,861 | ||
Outstanding ending balance | 72,318,158 | 75,063,552 | 82,247,600 |
Exercisable | 72,318,158 | ||
Weighted average exercise price in RMB | |||
Outstanding begining balance | ¥ 1.93 | ¥ 1.93 | ¥ 1.92 |
Exercised | 1.95 | 1.92 | 2.09 |
Forfeited | 1.90 | 1.93 | 1.92 |
Modification of the 2012 Options | 1.90 | ||
Outstanding ending balance | 1.93 | ¥ 1.93 | ¥ 1.93 |
Exercisable | ¥ 1.93 | ||
Aggregate Intrinsic Value RMB | |||
Outstanding begining balance | ¥ 70,931 | ¥ 10,177 | ¥ 15,436 |
Outstanding ending balance | 68,055 | ¥ 70,931 | ¥ 10,177 |
Exercisable | ¥ 68,055 |
Share-based Compensation (Det89
Share-based Compensation (Details 1) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation [Abstract] | |||
Weighted-average grant-date fair value per share of options granted | |||
Total intrinsic value of options exercised | ¥ 6,406 | ¥ 17,399 | ¥ 837 |
Total fair value of share options vested | ¥ 13,631 | ¥ 38,178 | ¥ 44,912 |
Share-based Compensation (Det90
Share-based Compensation (Details 2) - Stock Option Plan [Member] | 12 Months Ended |
Dec. 31, 2016¥ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 72,318,158 |
Options Exercisable | 72,318,158 |
2012 Options G [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 37,770,812 |
Weighted average remaining contractual life (Years) | 5 years 3 months |
Weighted average exercise price in RMB | ¥ / shares | ¥ 0.006 |
Options Exercisable | 37,770,812 |
2012 Options H [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 875,326 |
Weighted average remaining contractual life (Years) | 5 years 3 months |
Weighted average exercise price in RMB | ¥ / shares | ¥ 0.006 |
Options Exercisable | 875,326 |
2009 Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 6,226,480 |
Weighted average remaining contractual life (Years) | 1 year |
Weighted average exercise price in RMB | ¥ / shares | ¥ 2.30 |
Options Exercisable | 6,226,480 |
2008 Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 27,445,540 |
Weighted average remaining contractual life (Years) | 1 year |
Weighted average exercise price in RMB | ¥ / shares | ¥ 1.90 |
Options Exercisable | 27,445,540 |
Share-based Compensation (Det91
Share-based Compensation (Details Textual) ¥ / shares in Units, $ / shares in Units, $ in Thousands | Mar. 12, 2012¥ / sharesshares | Mar. 12, 2012¥ / shares$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)shares | May 31, 2016 | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2015USD ($)shares | May 31, 2015 | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2014USD ($)shares | May 31, 2014 | Dec. 31, 2013CNY (¥)shares | May 31, 2013 | Dec. 31, 2016$ / shares | Mar. 12, 2012$ / shares |
2012 Options G [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock option expiration date | Mar. 12, 2022 | Mar. 12, 2022 | |||||||||||||
Exercise price of options | (per share) | ¥ 1.90 | ¥ 1.90 | ¥ 0.006 | ¥ 0.006 | $ 0.001 | $ 0.30 | |||||||||
Stock option intrinsic value | (per share) | ¥ 0.26 | ¥ 0.04 | |||||||||||||
Share-based compensation expenses | ¥ | ¥ 4,367,000 | ¥ 12,940,000 | ¥ 22,200,000 | ||||||||||||
Exercised of share options, shares | 2,068,000 | 2,068,000 | |||||||||||||
Option forfeited | 10 | 10 | 114,250 | 114,250 | 932,305 | 932,305 | |||||||||
2012 Options G [Member] | Directors and Employees [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options purchase ordinary shares | 92,845,000 | 92,845,000 | |||||||||||||
Options vested period | 5 years | 5 years | |||||||||||||
2012 Options G [Member] | Independent Directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options granted | 3,200,000 | 3,200,000 | |||||||||||||
Exercise price of options | (per share) | ¥ 1.98 | ¥ 1.98 | 0.31 | ||||||||||||
Stock option intrinsic value | (per share) | ¥ 0.17 | ¥ 0.03 | |||||||||||||
2012 Options H [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options purchase ordinary shares | 3,800,000 | 3,800,000 | |||||||||||||
Description of option grantees | The Company and the option grantees, 40% ("Option H1"), 40% ("Option H2") and 20% ("Option H3") of the 3,000,000 award options granted to agents shall vest in May 31, 2014, 2015 and 2016 of each year respectively; and 40% ("Option H4"), 40% ("Option H5") and 20% ("Option H6") of the 800,000 award options granted to captains shall vest in May 31, 2013, 2014 and 2015 of each year respectively. | The Company and the option grantees, 40% ("Option H1"), 40% ("Option H2") and 20% ("Option H3") of the 3,000,000 award options granted to agents shall vest in May 31, 2014, 2015 and 2016 of each year respectively; and 40% ("Option H4"), 40% ("Option H5") and 20% ("Option H6") of the 800,000 award options granted to captains shall vest in May 31, 2013, 2014 and 2015 of each year respectively. | |||||||||||||
Stock option expiration date | Mar. 12, 2022 | Mar. 12, 2022 | |||||||||||||
Exercise price of options | (per share) | ¥ 1.90 | ¥ 1.90 | 0.30 | ||||||||||||
Later stock option modification | (per share) | 0.006 | ¥ 0.006 | $ 0.001 | ||||||||||||
Stock option intrinsic value | (per share) | ¥ 0.26 | ¥ 0.04 | |||||||||||||
Share-based compensation expenses | ¥ | ¥ 570 | ¥ 1,213 | ¥ 1,289 | ||||||||||||
Exercised of share options, shares | |||||||||||||||
Option forfeited | 147,984 | 147,984 | 284,978 | 284,978 | 898,740 | ||||||||||
2012 Options H [Member] | Captains [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options granted | 800,000 | 800,000 | |||||||||||||
2012 Options H [Member] | Agents [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options granted | 3,000,000 | 3,000,000 | |||||||||||||
2009 Options [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Exercised of share options, shares | 349,000 | 349,000 | |||||||||||||
2008 Options [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Exercised of share options, shares | 180,400 | 180,400 | |||||||||||||
Option H1 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options vested in percentage | 40.00% | ||||||||||||||
Option H2 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options vested in percentage | 40.00% | ||||||||||||||
Option H3 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options vested in percentage | 20.00% | ||||||||||||||
Option H4 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options vested in percentage | 40.00% | ||||||||||||||
Option H5 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options vested in percentage | 40.00% | ||||||||||||||
Option H6 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options vested in percentage | 20.00% | ||||||||||||||
2008 Options and 2009 Options [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Description of option grantees | The Options shall vest over a four-year period subject to the continuous employment of the option grantees and their key performance indicators ("KPI") results for the year 2009. | The Options shall vest over a four-year period subject to the continuous employment of the option grantees and their key performance indicators ("KPI") results for the year 2009. | |||||||||||||
Stock option expiration date | Mar. 31, 2015 | Mar. 31, 2015 | |||||||||||||
Options vested period | 4 years | 4 years | |||||||||||||
Incremental compensation cost | ¥ | ¥ 6,700,000 | ||||||||||||||
Inscom Holdings Limited [Member] | Stock Option Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based compensation expenses | $ | $ 109 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Net Assets (Textual) | ||
Restricted net assets | ¥ 2,630,106 | ¥ 2,164,132 |
Variable Interest Entities [Member] | ||
Restricted Net Assets (Textual) | ||
Restricted net assets | ¥ 78,847 |
Segment Reporting (Details)
Segment Reporting (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Net revenues | ||||
Total net revenues | ¥ 4,700,622 | $ 677,031 | ¥ 2,828,308 | ¥ 2,150,011 |
Operating costs and expenses | ||||
Total operating costs and expenses | 4,686,582 | 675,008 | 2,749,786 | 2,119,112 |
Income (loss) from operations | ||||
Total income from operations | 14,040 | 2,023 | 78,522 | 30,899 |
Agency [Member] | ||||
Net revenues | ||||
Total net revenues | 3,746,471 | 539,604 | 2,155,264 | 1,624,410 |
Operating costs and expenses | ||||
Total operating costs and expenses | (3,667,004) | (528,158) | (1,969,329) | (1,486,871) |
Income (loss) from operations | ||||
Total income from operations | 79,467 | 11,446 | 185,935 | 137,539 |
Brokerage [Member] | ||||
Net revenues | ||||
Total net revenues | 617,738 | 88,973 | 369,198 | 232,620 |
Operating costs and expenses | ||||
Total operating costs and expenses | (595,232) | (85,731) | (319,124) | (197,017) |
Income (loss) from operations | ||||
Total income from operations | 22,506 | 3,242 | 50,074 | 35,603 |
Claims Adjusting [Member] | ||||
Net revenues | ||||
Total net revenues | 336,413 | 48,454 | 303,846 | 292,981 |
Operating costs and expenses | ||||
Total operating costs and expenses | (306,804) | (44,189) | (292,613) | (275,539) |
Income (loss) from operations | ||||
Total income from operations | 29,609 | 4,265 | 11,233 | 17,442 |
Other [Member] | ||||
Operating costs and expenses | ||||
Total operating costs and expenses | (117,542) | (16,930) | (168,720) | (159,685) |
Income (loss) from operations | ||||
Total income from operations | ¥ (117,542) | $ (16,930) | ¥ (168,720) | ¥ (159,685) |
Segment Reporting (Details 1)
Segment Reporting (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Segment assets | |||
Total assets | ¥ 4,238,568 | $ 610,480 | ¥ 4,014,428 |
Agency [Member] | |||
Segment assets | |||
Total assets | 2,245,121 | 323,365 | 454,803 |
Brokerage [Member] | |||
Segment assets | |||
Total assets | 13,041 | 1,878 | 160,286 |
Claims Adjusting [Member] | |||
Segment assets | |||
Total assets | 256,004 | 36,872 | 226,121 |
Other [Member] | |||
Segment assets | |||
Total assets | ¥ 1,724,402 | $ 248,365 | ¥ 3,173,218 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 12 Months Ended |
Dec. 31, 2016Segments | |
Segment Reporting (Textual) | |
Number of operating segments | 3 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 06, 2017 | Dec. 31, 2016 | Mar. 06, 2017 |
Subsequent Events (Textual) | |||
Percentage of revenues from PICC | 26.50% | ||
Percentage of receivable due from susidiaries | 16.80% | ||
Subsequent Events [Member] | |||
Subsequent Events (Textual) | |||
Percentage of annual cash dividend to shareholders | 30.00% | ||
Share purchase agreement, description | 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$29,162.1. The purchase price represents 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 holds 5.3% of the equity interests in the Company post-closing and its purchased shares are subject to a contractual one-year lock-up. |
Schedule I Balance Sheets (Deta
Schedule I Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 240,242 | $ 34,602 | ¥ 1,115,266 | $ 160,632 | ¥ 2,103,068 | ¥ 2,288,623 |
Other receivables and amounts due from subsidiaries and affiliates | 49,186 | 7,084 | 51,828 | |||
Total current assets | 3,694,564 | 532,127 | 3,513,061 | |||
Non-current assets: | ||||||
Total assets | 4,238,568 | 610,480 | 4,014,428 | |||
Current liabilities: | ||||||
Total liabilities | 834,474 | 120,189 | 580,859 | |||
Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued and outstanding shares: 1,155,059,526 and 1,165,072,926 as of December 31, 2015 and 2016, respectively) | 8,658 | 1,247 | 8,592 | |||
Additional paid-in capital | 2,301,655 | 331,507 | 2,454,244 | |||
Retained earnings | 1,018,928 | 146,756 | 871,356 | |||
Accumulated other comprehensive loss | (65,844) | (9,483) | (50,048) | |||
Subscription receivables | (288,135) | (41,500) | (268,829) | |||
Total shareholders' equity | 3,286,852 | 473,405 | 3,317,430 | |||
Total liabilities and shareholders' equity | 4,238,568 | 610,480 | 4,014,428 | |||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 10,746 | 1,548 | 5,349 | $ 770 | ¥ 9,707 | ¥ 11,471 |
Other receivables and amounts due from subsidiaries and affiliates | 1,742,796 | 251,014 | 1,607,924 | |||
Total current assets | 1,753,542 | 252,562 | 1,613,273 | |||
Non-current assets: | ||||||
Investment in subsidiaries | 1,571,844 | 226,393 | 1,736,488 | |||
Total assets | 3,325,386 | 478,955 | 3,349,761 | |||
Current liabilities: | ||||||
Other payables | 8,108 | 1,168 | 4,602 | |||
Amounts due to subsidiaries | 30,426 | 4,382 | 27,729 | |||
Total liabilities | 38,534 | 5,550 | 32,331 | |||
Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued and outstanding shares: 1,155,059,526 and 1,165,072,926 as of December 31, 2015 and 2016, respectively) | 8,658 | 1,247 | 8,592 | |||
Additional paid-in capital | 2,301,655 | 331,507 | 2,454,244 | |||
Retained earnings | 1,330,518 | 191,634 | 1,173,471 | |||
Accumulated other comprehensive loss | (65,844) | (9,483) | (50,048) | |||
Subscription receivables | (288,135) | (41,500) | (268,829) | |||
Total shareholders' equity | 3,286,852 | 473,405 | 3,317,430 | |||
Total liabilities and shareholders' equity | ¥ 3,325,386 | $ 478,955 | ¥ 3,349,761 |
Schedule I Balance Sheets (Pare
Schedule I Balance Sheets (Parenthetical) (Details) | Dec. 31, 2016¥ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015¥ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014shares |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | |
Ordinary shares, par value | (per share) | ¥ 0.001 | $ 0.001 | ¥ 0.001 | ||
Ordinary shares, issued | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 | 1,155,059,526 | 1,150,565,906 |
Ordinary shares, outstanding | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 | 1,155,059,526 | |
Parent Company [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Ordinary shares, authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | |
Ordinary shares, par value | (per share) | ¥ 0.001 | $ 0.001 | ¥ 0.001 | $ 0.001 | |
Ordinary shares, issued | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 | 1,155,059,526 | 1,150,565,906 |
Ordinary shares, outstanding | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 | 1,155,059,526 |
Schedule I Statements of Income
Schedule I Statements of Income and Comprehensive Income (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | ¥ (487,234) | $ (70,176) | ¥ (456,001) | ¥ (396,692) |
Interest income | 6,931 | 998 | 57,234 | 82,251 |
Equity in earnings of subsidiaries | 147,698 | 21,273 | 214,422 | 159,720 |
Net income | 157,047 | 22,618 | 210,086 | 161,760 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | 2,177 | 314 | 6,153 | 6,008 |
Changes in fair value of short term investments | 632 | 91 | ||
Share of other comprehensive income (loss) of affiliates, net of tax | (37,911) | (5,460) | 37,567 | |
Comprehensive income attributable to the Company's shareholders | 121,945 | 17,563 | 253,806 | 167,768 |
Parent Company [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | (9,938) | (1,433) | (19,839) | (31,191) |
Interest income | 8,271 | 1,191 | 15,913 | 12,464 |
Equity in earnings of subsidiaries | 158,714 | 22,860 | 214,012 | 180,487 |
Net income | 157,047 | 22,618 | 210,086 | 161,760 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | 2,177 | 314 | 6,153 | 6,008 |
Changes in fair value of short term investments | 632 | 91 | ||
Share of other comprehensive income (loss) of affiliates, net of tax | (37,911) | (5,460) | 37,567 | |
Comprehensive income attributable to the Company's shareholders | ¥ 121,945 | $ 17,563 | ¥ 253,806 | ¥ 167,768 |
Schedule I Statements of Statem
Schedule I Statements of Statements of Shareholders' Equity (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2014USD ($)shares | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ¥ 3,433,569 | ¥ 3,334,260 | ¥ 3,146,762 | |||
Foreign currency translation | 2,177 | $ 314 | 6,153 | 6,008 | ||
Exercise of share options | 1,144 | 1,518 | 3,183 | |||
Share-based compensation | 4,937 | 17,653 | 23,598 | |||
Repurchase of ordinary shares | (6,276) | |||||
Acquisition of additional interest in a subsidiary | (179,223) | (187,810) | (11,371) | |||
Share of other comprehensive income in affiliates | (37,911) | 37,567 | ||||
Changes in fair value of short term investments | 632 | |||||
Net income | 167,638 | 215,481 | 166,080 | |||
Balance | 3,404,094 | 490,291 | 3,433,569 | 3,334,260 | ||
Share Capital [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ¥ 8,592 | $ 1,326 | ¥ 8,563 | ¥ 7,624 | ||
Balance, shares | shares | 1,155,059,526 | 1,155,059,526 | 1,150,565,906 | 1,150,565,906 | 998,861,526 | 998,861,526 |
Issue new shares to employees | ¥ 928 | |||||
Issue new shares to employees, shares | shares | 150,000,000 | 150,000,000 | ||||
Foreign currency translation | ||||||
Exercise of share options | ¥ 17 | ¥ 29 | ¥ 11 | |||
Exercise of share options, shares | shares | 2,597,400 | 2,597,400 | 4,493,620 | 4,493,620 | 1,704,380 | 1,704,380 |
Share-based compensation | ||||||
Repurchase of ordinary shares | ||||||
Acquisition of additional interest in a subsidiary | ¥ 49 | |||||
Acquisition of additional interest in a subsidiary, shares | shares | 7,416,000 | 7,416,000 | ||||
Share of other comprehensive income in affiliates | ||||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | ¥ 8,658 | $ 1,247 | ¥ 8,592 | $ 1,326 | ¥ 8,563 | |
Balance, shares | shares | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 | 1,155,059,526 | 1,150,565,906 | 1,150,565,906 |
Additional Paid-in Capital [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ¥ 2,454,244 | $ 378,870 | ¥ 2,601,401 | ¥ 2,329,962 | ||
Issue new shares to employees | 256,563 | |||||
Foreign currency translation | ||||||
Exercise of share options | 1,127 | (4,787) | 3,172 | |||
Share-based compensation | 4,937 | 17,653 | 23,598 | |||
Repurchase of ordinary shares | ||||||
Acquisition of additional interest in a subsidiary | (174,779) | (160,023) | (11,894) | |||
Share of other comprehensive income in affiliates | ||||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | 2,301,655 | 331,507 | 2,454,244 | $ 378,870 | 2,601,401 | |
Treasury Stock [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ||||||
Issue new shares to employees | ||||||
Foreign currency translation | ||||||
Exercise of share options | ¥ 6,276 | |||||
Exercise of share options, shares | shares | 2,261,100 | 2,261,100 | ||||
Share-based compensation | ||||||
Repurchase of ordinary shares | ¥ (6,276) | |||||
Repurchase of ordinary shares, shares | shares | (2,261,100) | (2,261,100) | ||||
Acquisition of additional interest in a subsidiary | ||||||
Share of other comprehensive income in affiliates | ||||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | ||||||
Retained Earnings [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | 871,356 | 134,514 | 764,963 | 618,885 | ||
Issue new shares to employees | ||||||
Foreign currency translation | ||||||
Exercise of share options | ||||||
Share-based compensation | ||||||
Repurchase of ordinary shares | ||||||
Acquisition of additional interest in a subsidiary | ||||||
Share of other comprehensive income in affiliates | ||||||
Changes in fair value of short term investments | ||||||
Net income | 157,047 | 210,086 | 161,760 | |||
Balance | 1,018,928 | 146,756 | 871,356 | $ 134,514 | 764,963 | |
Accumulated Other Comprehensive Income [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | (50,048) | (7,726) | (105,106) | (111,114) | ||
Issue new shares to employees | ||||||
Foreign currency translation | 21,483 | 17,491 | 6,008 | |||
Exercise of share options | ||||||
Share-based compensation | ||||||
Repurchase of ordinary shares | ||||||
Acquisition of additional interest in a subsidiary | ||||||
Share of other comprehensive income in affiliates | (37,911) | 37,567 | ||||
Changes in fair value of short term investments | 632 | |||||
Net income | ||||||
Balance | (65,844) | (9,483) | (50,048) | (7,726) | (105,106) | |
Subscription Receivables [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | (268,829) | (41,500) | (257,491) | |||
Issue new shares to employees | (257,491) | |||||
Foreign currency translation | (19,306) | (11,338) | ||||
Exercise of share options | ||||||
Share-based compensation | ||||||
Repurchase of ordinary shares | ||||||
Acquisition of additional interest in a subsidiary | ||||||
Share of other comprehensive income in affiliates | ||||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | (288,135) | (41,500) | (268,829) | (41,500) | (257,491) | |
Parent Company [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ¥ 3,317,430 | $ 3,317,430 | 3,210,752 | 3,028,097 | ||
Balance, shares | shares | 1,155,059,526 | 1,155,059,526 | ||||
Issue new shares to employees | ||||||
Foreign currency translation | ¥ 2,177 | 6,153 | 6,008 | |||
Exercise of share options | 1,144 | 1,518 | 3,183 | |||
Share-based compensation | 4,937 | 17,653 | 23,598 | |||
Other | (11,894) | |||||
Repurchase of ordinary shares | 6,276 | |||||
Share of other comprehensive income in affiliates | (37,911) | 37,567 | ||||
Disposal of subsidiaries | 16,126 | |||||
Changes in fair value of short term investments | 632 | |||||
Net income | 157,047 | 210,086 | 161,760 | |||
Balance | ¥ 3,286,852 | $ 473,405 | ¥ 3,317,430 | $ 3,317,430 | 3,210,752 | |
Balance, shares | shares | 1,155,059,526 | 1,155,059,526 | 1,155,059,526 | 1,155,059,526 | ||
Parent Company [Member] | Share Capital [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ¥ 8,592 | $ 1,326 | ¥ 8,563 | ¥ 7,624 | ||
Balance, shares | shares | 1,155,059,526 | 1,155,059,526 | 1,150,565,906 | 1,150,565,906 | 998,861,526 | 998,861,526 |
Issue new shares to employees | ¥ 928 | |||||
Issue new shares to employees, shares | shares | 150,000,000 | 150,000,000 | ||||
Foreign currency translation | ||||||
Exercise of share options | ¥ 17 | ¥ 29 | ¥ 11 | |||
Exercise of share options, shares | shares | 2,597,400 | 2,597,400 | 4,493,620 | 4,493,620 | 1,704,380 | 1,704,380 |
Share-based compensation | ||||||
Other | ||||||
Acquisition of additional interest in a subsidiary | ¥ 49 | |||||
Acquisition of additional interest in a subsidiary, shares | shares | 7,416,000 | 7,416,000 | ||||
Share of other comprehensive income in affiliates | ||||||
Disposal of subsidiaries | ||||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | ¥ 8,658 | $ 1,247 | ¥ 8,592 | $ 1,326 | ¥ 8,563 | |
Balance, shares | shares | 1,165,072,926 | 1,165,072,926 | 1,155,059,526 | 1,155,059,526 | 1,150,565,906 | 1,150,565,906 |
Parent Company [Member] | Additional Paid-in Capital [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ¥ 2,454,244 | $ 378,870 | ¥ 2,601,401 | ¥ 2,329,962 | ||
Issue new shares to employees | 256,563 | |||||
Foreign currency translation | ||||||
Exercise of share options | 1,127 | (4,787) | 3,172 | |||
Share-based compensation | 4,937 | 17,653 | 23,598 | |||
Other | (11,894) | |||||
Acquisition of additional interest in a subsidiary | (174,779) | (160,023) | ||||
Share of other comprehensive income in affiliates | ||||||
Disposal of subsidiaries | 16,126 | |||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | 2,301,655 | $ 331,507 | 2,454,244 | $ 378,870 | 2,601,401 | |
Parent Company [Member] | Treasury Stock [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ||||||
Balance, shares | shares | ||||||
Issue new shares to employees | ||||||
Foreign currency translation | ||||||
Exercise of share options | ¥ 6,276 | |||||
Exercise of share options, shares | shares | 2,261,100 | 2,261,100 | ||||
Share-based compensation | ||||||
Other | ||||||
Share of other comprehensive income in affiliates | ||||||
Disposal of subsidiaries | ||||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | ||||||
Balance, shares | shares | ||||||
Parent Company [Member] | Retained Earnings [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | ¥ 1,173,471 | $ 181,153 | ¥ 963,385 | ¥ 801,625 | ||
Issue new shares to employees | ||||||
Foreign currency translation | ||||||
Exercise of share options | ||||||
Share-based compensation | ||||||
Other | ||||||
Share of other comprehensive income in affiliates | ||||||
Disposal of subsidiaries | ||||||
Changes in fair value of short term investments | ||||||
Net income | 157,047 | 210,086 | 161,760 | |||
Balance | 1,330,518 | 191,634 | 1,173,471 | $ 181,153 | 963,385 | |
Parent Company [Member] | Accumulated Other Comprehensive Income [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | (50,048) | (7,726) | (105,106) | (111,114) | ||
Issue new shares to employees | ||||||
Foreign currency translation | 21,483 | 17,491 | 6,008 | |||
Exercise of share options | ||||||
Share-based compensation | ||||||
Other | ||||||
Share of other comprehensive income in affiliates | (37,911) | 37,567 | ||||
Disposal of subsidiaries | ||||||
Changes in fair value of short term investments | 632 | |||||
Net income | ||||||
Balance | (65,844) | (9,483) | (50,048) | (7,726) | (105,106) | |
Parent Company [Member] | Subscription Receivables [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Balance | (268,829) | (41,500) | (257,491) | |||
Issue new shares to employees | (257,491) | |||||
Foreign currency translation | (19,306) | (11,338) | ||||
Exercise of share options | ||||||
Share-based compensation | ||||||
Other | ||||||
Share of other comprehensive income in affiliates | ||||||
Disposal of subsidiaries | ||||||
Changes in fair value of short term investments | ||||||
Net income | ||||||
Balance | ¥ (288,135) | $ (41,500) | ¥ (268,829) | $ (41,500) | ¥ (257,491) |
Schedule I Statements of Sta101
Schedule I Statements of Statements of Statements of Cash Flows (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
OPERATING ACTIVITIES | ||||
Net income | ¥ 157,047 | $ 22,618 | ¥ 210,086 | ¥ 161,760 |
Adjustments to reconcile net income to net cash generated from (used in) operating activities: | ||||
Equity in earnings of subsidiaries | (147,698) | (21,273) | (214,422) | (159,720) |
Compensation expenses associated with stock options | 4,937 | 711 | 17,653 | 23,598 |
Changes in operating assets and liabilities: | ||||
Other receivables | (6,395) | (921) | 7,222 | 14,700 |
Net cash generated from (used in) operating activities | 87,846 | 12,652 | 281,304 | 261,649 |
Cash flows (used in) generated from investing activities | ||||
Net cash (used in) generated from investing activities | (748,758) | (107,843) | (1,131,551) | (445,395) |
Cash flows generated from (used in ) financing activities: | ||||
Proceeds on exercise of stock options | 1,144 | 165 | 1,518 | 3,183 |
Repurchase ordinary shares | (6,276) | |||
Net cash generated from (used in) financing activities | (216,575) | (31,193) | (143,708) | (7,817) |
Net (decrease) increase in cash and cash equivalents | (877,487) | (126,384) | (993,955) | (191,563) |
Cash and cash equivalents at beginning of year | 1,115,266 | 160,632 | 2,103,068 | 2,288,623 |
Effect of exchange rate changes on cash and cash equivalents | 2,463 | 354 | 6,153 | 6,008 |
Cash and cash equivalents at end of year | 240,242 | 34,602 | 1,115,266 | 2,103,068 |
Parent Company [Member] | ||||
OPERATING ACTIVITIES | ||||
Net income | 157,047 | 22,618 | 210,086 | 161,760 |
Adjustments to reconcile net income to net cash generated from (used in) operating activities: | ||||
Equity in earnings of subsidiaries | (158,714) | (22,860) | (214,012) | (180,487) |
Compensation expenses associated with stock options | 4,937 | 711 | 17,653 | 23,598 |
Changes in operating assets and liabilities: | ||||
Other receivables | (9,290) | (1,338) | (67,925) | 39,810 |
Other payables | 3,506 | 506 | 1,879 | (42,379) |
Net cash generated from (used in) operating activities | (2,514) | (363) | (52,319) | 2,302 |
Cash flows (used in) generated from investing activities | ||||
Decrease in investment in subsidiaries | 127,475 | 18,361 | 55,363 | 29,853 |
Advances to subsidiaries and affiliates | (122,885) | (17,699) | (8,797) | (43,110) |
Net cash (used in) generated from investing activities | 4,590 | 662 | 46,566 | (13,257) |
Cash flows generated from (used in ) financing activities: | ||||
Proceeds on exercise of stock options | 1,144 | 165 | 1,518 | 3,183 |
Repurchase ordinary shares | (6,276) | |||
Net cash generated from (used in) financing activities | 1,144 | 165 | (4,758) | 3,183 |
Net (decrease) increase in cash and cash equivalents | 3,220 | 464 | (10,511) | (7,772) |
Cash and cash equivalents at beginning of year | 5,349 | 770 | 9,707 | 11,471 |
Effect of exchange rate changes on cash and cash equivalents | 2,177 | 314 | 6,153 | 6,008 |
Cash and cash equivalents at end of year | ¥ 10,746 | $ 1,548 | ¥ 5,349 | ¥ 9,707 |
Schedule 1-Condensed Financi102
Schedule 1-Condensed Financial Statements of the Company (Details Textual) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule 1-Condensed Financial Statements of the Company [Abstract] | ||
Restricted capital and reserves | ¥ 2,630,106 | ¥ 2,164,132 |