ZHENGZHOU, China and
TAIPEI, Taiwan, May 23, 2013 /PRNewswire/ -- China United
Insurance Service, Inc. ("CUIS") (OTCBB: CUII), a leading insurance
intermediary company with operations in the People's Republic of China and
Taiwan, today announced sharply
improved pro-forma financial results for its fiscal nine-months
ended March 31, 2013.
Financial Highlights for Year-To-Date Fiscal 2013 (Pro
Forma):
- Revenues rose 40.6% to $34.2
million from $24.3 million a
year ago.
- Gross profit increased 75.2% to $11.9
million from $6.8 million last
year.
- Operating income advanced 136.5% to $3.8
million from $1.6 million for
the first nine months of fiscal 2012.
- Net income attributable to CUIS's shareholders rose more than
three-fold to $7.6 million, including
a gain on acquisition of $5.3
million, or $0.29 per diluted
share, from $2.5 million, or
$0.09 per diluted share, for the
corresponding prior year period.
In August 2012, CUIS acquired
Action Holding Financial Limited ("AHFL"), the holding company of
Taiwan-based Law Insurance Broker
Company. AHFL, which owns 69.95% of Taiwan-based Law Insurance Broker Company, is
a dominant brokerage and insurance agency service business with 21
branches, three training centers and nearly 2,000 brokers in
Taiwan.
Pro-forma results were derived from the combined income
statements for the nine months ended March
31, 2013 and 2012 of AHFL and CUIS. Pro-forma consolidated
statements of operations and other comprehensive income results are
attached to this release.
For the fiscal third quarter from January
1 to March 31, 2013, the company reported revenues of
$11.9 million; gross profit of
$9.9 million; operating income of
$1.3 million; and net income
attributable to CUIS's shareholders was $668,000, or $0.02
per diluted share. Comparative results for the prior year period
are not meaningful because of the acquisition of AHFL.
"Our positive results reflect the successful integration of our
newly acquired Taiwan business
into China United Insurance Service, representing an important
milestone that is paving the way for continued growth," said
Chung-Mei Lo, Chief Executive
Officer. "This achievement is a direct result of the superior team
work of our employees.
"We are focused on becoming one of the top financial insurance
enterprises in Asia, and we are
well on our way to accomplishing that goal," added Mr. Lo. "Given
our current visibility, we expect to continue our strong growth
trajectory, with revenue growth in the range of $17 to $18 million, or roughly 50 percent, in the
fiscal fourth quarter."
CUIS' strategic growth objectives include continuing its M&A
activities, leveraging Taiwan's
operational strength and enhancing efficiencies in China, along with recruiting motivated
insurance agents, improving service quality, seeking good insurance
products in the market, and investing in educating its agents to
help customers make well-informed decisions and retentions.
About China United Insurance Service, Inc.
China
United Insurance Service, Inc. was founded in 2010 with a vision to
build one of the largest financial insurance service platforms in
Asia and to become a multinational
enterprise by leveraging the experience of its Taiwan operations and capitalizing on
China's fast-growing insurance
market. CUIS offers a broad range of products and services for
individuals, families, and businesses, including: brokerage
services for various types of life, health, personal accident,
property and casualty insurance; insurance application assistance;
claims advocacy; claims accounting preparation services; disaster
and loss prevention; and risk assessment/risk management consulting
services and the corresponding reinsurance brokerage services. In
2012, the company consolidated both Taiwan and China's operations. CUIS has assembled an
experienced executive team, with more than 81 well-experienced
managers in agency management to guide its more than 4,200
knowledgeable and professional agents. By offering innovative
products, continuously improving the management system and
selecting the best products to meet clients' needs, CUIS aspires to
become one of Asia's leading
financial insurance enterprises. For more information on CUIS,
please visit: http://cuis.asia/.
Forward Looking Statement
Statements in this press
release may be "forward-looking statements" within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. Forward-
looking statements can be identified by terminology such as "will,"
"expects," "believes," "anticipates," "intends," "estimates" and
similar statements, and involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections of CUIS and the insurance industry.
Potential risks and uncertainties include, but are not limited to,
those relating to CUIS' ability to attract and retain productive
agents, its ability to maintain existing and develop new business
relationships with insurance companies, its ability to execute its
growth strategy, its ability to adapt to the evolving regulatory
environment in the Chinese insurance industry, its ability to
compete effectively against its competitors, and macroeconomic
conditions in China and
Taiwan and the potential impact on
the sales of insurance products. These statements are not
guarantees of future performance and involve risks, uncertainties
and assumptions that are difficult to predict. Therefore, actual
outcomes and results may, and probably will, differ materially from
what is expressed or forecasted in such forward-looking statements
due to numerous factors, including those described above and those
risks discussed from time to time in the company's filings with the
Securities and Exchange Commission.
(Financial statements follow)
|
CHINA UNITED
INSURANCE SERVICE, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME AND OTHER COMPREHENSIVE
INCOME/(LOSS)
FOR THE THREE- AND
NINE-MONTHS ENDED MARCH 31, 2013
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
March 31,
2013
|
|
March 31,
2013
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
11,945,506
|
|
|
$
|
27,951,585
|
|
|
Cost of
revenue
|
|
|
7,957,959
|
|
|
|
18,055,254
|
|
|
Gross
profit
|
|
|
3,987,547
|
|
|
|
9,896,331
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
2,686,193
|
|
|
|
7,212,718
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
1,301,354
|
|
|
|
2,683,613
|
|
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
25,186
|
|
|
|
61,330
|
|
|
Bargain gain on
purchase of subsidiaries
|
|
|
-
|
|
|
|
5,280,042
|
|
|
Other -
net
|
|
|
142,093
|
|
|
|
307,655
|
|
|
Total other
income
|
|
|
167,279
|
|
|
|
5,649,027
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
|
1,468,633
|
|
|
|
8,332,640
|
|
|
Income tax
expense
|
|
|
302,594
|
|
|
|
458,064
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
1,166,039
|
|
|
|
7,874,576
|
|
|
Net income
attributable to non-controlling interest
|
|
|
(474,234)
|
|
|
|
(1,006,447)
|
|
|
Net income (loss)
attributable to parent's shareholders
|
|
|
691,805
|
|
|
|
6,868,129
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive items
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain (loss) attributable
to parent's
shareholders
|
|
|
(24,258)
|
|
|
|
45,007
|
|
|
Foreign currency
translation gain (loss) attributable
to non-controlling
interest
|
|
|
40,797
|
|
|
|
19,882
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to parent's shareholders
|
|
$
|
667,547
|
|
|
$
|
6,913,136
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to non-controlling
interest
|
|
$
|
(433,437)
|
|
|
$
|
(986,565)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
29,100,503
|
|
|
|
27,093,204
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.02
|
|
|
$
|
0.26
|
|
|
CHINA UNITED INSURANCE SERVICE, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
AS OF MARCH 31, 2013 AND JUNE 30,
2012
|
|
(Unaudited)
|
|
|
|
|
|
|
|
March 31, 2013
|
|
June 30, 2012
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
10,469,817
|
|
$
|
1,258,211
|
|
Marketable
securities
|
|
3,361,534
|
|
|
-
|
|
Accounts receivable,
net
|
|
4,388,504
|
|
|
184,767
|
|
Other current
assets
|
|
461,825
|
|
|
48,640
|
|
Total current
assets
|
|
18,681,680
|
|
|
1,491,618
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
1,192,569
|
|
|
114,945
|
|
Goodwill
|
|
119,945
|
|
|
118,855
|
|
Other assets
|
|
535,835
|
|
|
113,217
|
|
TOTAL ASSETS
|
$
|
20,530,029
|
|
$
|
1,838,635
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Taxes
payable
|
$
|
1,101,099
|
|
$
|
405,723
|
|
Other current
liabilities
|
|
4,194,242
|
|
|
286,909
|
|
Due to related
parties
|
|
420,587
|
|
|
445,332
|
|
TOTAL CURRENT
LIABILITIES
|
|
5,715,928
|
|
|
1,137,964
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Preferred stock, par value $0.00001,
10,000,000 authorized, 1,000,000
|
|
|
|
|
|
|
issued and outstanding
as of March 31, 2013, none issued and
|
|
|
|
|
|
|
outstanding as of June
30, 2012
|
|
10
|
|
|
-
|
|
Common stock, par value $0.00001,
100,000,000 authorized, 29,100,503
|
|
|
|
|
|
|
issued and outstanding
as of March 31, 2013, 20,100,503 issued and
|
|
|
|
|
|
|
outstanding as of June
30, 2012
|
|
291
|
|
|
201
|
|
Additional paid-in
capital
|
|
4,674,593
|
|
|
2,674,692
|
|
Accumulated other comprehensive
loss
|
|
(10,243)
|
|
|
(55,250)
|
|
Retained earnings (accumulated
deficit)
|
|
4,951,335
|
|
|
(1,918,972)
|
|
Stockholders' equity attributable to
parent's shareholders
|
|
9,615,986
|
|
|
700,671
|
|
Non-controlling
interest
|
|
5,198,115
|
|
|
-
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
14,814,101
|
|
|
700,671
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
|
$
|
20,530,029
|
|
$
|
1,838,635
|
|
CHINA UNITED
INSURANCE SERVICE, INC. AND SUBSIDIARIES
PRO FORMA
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME
FOR THE
NINE-MONTHS ENDED MARCH 31, 2013
(Unaudited)
|
|
|
The basis of pro
forma consolidated statements of income of the Company is as if the
Acquisition Agreement were signed on July 1, 2010 and 2011, and
AHFL's acquisition of Law Enterprise happened on the same date. The
pro forma consolidated statements of income were derived from the
statement of income for the nine months ended March 31, 2013 and
2012 of AHFL and CUIS. The Company recorded the excess of purchase
price over the fair value of assets and liabilities acquired as
bargain gain on purchase in the pro forma consolidated statements
of income.
|
|
|
Nine Months Ended
March 31, 2013
|
|
|
CUIS
|
|
AHFL
|
|
Sub
Total
|
|
Pro Forma
Adjustment
|
|
Pro
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,147,576
|
|
$
|
25,804,009
|
|
$
|
27,951,585
|
|
$
|
6,272,921
|
|
$
|
34,224,506
|
|
|
Cost of
revenue
|
|
1,213,613
|
|
|
16,841,641
|
|
|
18,055,254
|
|
|
4,220,507
|
|
|
22,275,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
933,963
|
|
|
8,962,368
|
|
|
9,896,331
|
|
|
2,052,414
|
|
|
11,948,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
1,255,009
|
|
|
5,757,709
|
|
|
7,012,718
|
|
|
1,105,880
|
|
|
8,118,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
(321,046)
|
|
|
3,204,659
|
|
|
2,883,613
|
|
|
946,534
|
|
|
3,830,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
2,339
|
|
|
58,991
|
|
|
61,330
|
|
|
(505)
|
|
|
60,825
|
|
|
Gain on acquisition
of subsidiary
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,280,042
|
|
|
5,280,042
|
|
|
Other -
net
|
|
(578)
|
|
|
308,233
|
|
|
307,655
|
|
|
79,728
|
|
|
387,383
|
|
|
Total other
income
|
|
1,761
|
|
|
367,224
|
|
|
368,985
|
|
|
5,359,265
|
|
|
5,728,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
(319,285)
|
|
|
3,571,883
|
|
|
3,252,598
|
|
|
6,305,799
|
|
|
9,558,397
|
|
|
Income tax expense
(benefit)
|
|
(157,875)
|
|
|
615,938
|
|
|
458,063
|
|
|
175,672
|
|
|
633,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
(161,410)
|
|
|
2,955,945
|
|
|
2,794,535
|
|
|
6,130,127
|
|
|
8,924,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the non-controlling interests
|
|
-
|
|
|
1,006,447
|
|
|
1,006,447
|
|
|
283,185
|
|
|
1,289,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CUIS's shareholders
|
|
(161,410)
|
|
|
1,949,498
|
|
|
1,788,088
|
|
|
5,846,942
|
|
|
7,635,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
13,972
|
|
|
-
|
|
|
13,972
|
|
|
-
|
|
|
13,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
(147,438)
|
|
$
|
1,949,498
|
|
$
|
1,802,060
|
|
$
|
5,846,942
|
|
$
|
7,649,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,093,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.29
|
|
CHINA UNITED
INSURANCE SERVICE, INC. AND SUBSIDIARIES
PRO FORMA
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME
FOR THE
NINE-MONTHS ENDED MARCH 31, 2012
(Unaudited)
|
|
|
The basis of pro
forma consolidated statements of income of the Company is as if the
Acquisition Agreement were signed on July 1, 2010 and 2011, and
AHFL's acquisition of Law Enterprise happened on the same date. The
pro forma consolidated statements of income were derived from the
statement of income for the nine months ended March 31, 2013 and
2012 of AHFL and CUIS. The Company recorded the excess of purchase
price over the fair value of assets and liabilities acquired as
bargain gain on purchase in the pro forma consolidated statements
of income.
|
|
|
|
Nine Months Ended
March 31, 2012
|
|
|
|
CUIS
|
|
|
AHFL
|
|
|
Pro
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
2,396,066
|
|
|
$
|
21,951,392
|
|
|
$
|
24,347,458
|
|
|
Cost of
revenue
|
|
|
1,692,384
|
|
|
|
15,835,178
|
|
|
|
17,527,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
703,682
|
|
|
|
6,116,214
|
|
|
|
6,819,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
904,827
|
|
|
|
4,295,302
|
|
|
|
5,200,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(201,145)
|
|
|
|
1,820,912
|
|
|
|
1,619,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
3,570
|
|
|
|
401,851
|
|
|
|
405,421
|
|
|
Other -
net
|
|
|
614
|
|
|
|
1,218,216
|
|
|
|
1,218,830
|
|
|
Total other
income
|
|
|
4,184
|
|
|
|
1,620,067
|
|
|
|
1,624,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
|
(196,961)
|
|
|
|
3,440,979
|
|
|
|
3,244,018
|
|
|
Income tax
expense
|
|
|
261,334
|
|
|
|
485,519
|
|
|
|
746,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(458,295)
|
|
|
|
2,955,460
|
|
|
|
2,497,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to CUIS's shareholders
|
|
|
(458,295)
|
|
|
|
2,955,460
|
|
|
|
2,497,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
13,702
|
|
|
|
-
|
|
|
|
13,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
$
|
(444,593)
|
|
|
$
|
2,955,460
|
|
|
$
|
2,510,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
|
|
27,093,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
|
$
|
0.09
|
|
SOURCE China United Insurance Service, Inc.