China United Insurance Service Reports 2014 Fourth Quarter And Full Year Financial Results

ZHENGZHOU, China and TAIPEI, Taiwan, March 19, 2015 /PRNewswire/ -- China United Insurance Service, Inc. (CUIS) (OTCBB: CUII), a leading insurance intermediary company with operations in the People's Republic of China, Hong Kong and Taiwan, reported financial results for the three-months and twelve-months ended December 31, 2014.

"Our strategy of investing in growth and building our brand name in the markets we serve continued in 2014," said Yi Hsiao Mao, Chairman and Chief Executive Officer. "During the year, we completed a 51% investment in Prime Financial Asia Ltd., a Hong-Kong-based reinsurance broker company. We also continued our advertising campaign in Taiwan, as we will this year, to attract new long-term customers and potential sales agents. Subsequent to the close of 2014, we acquired Genius Investment Consultant Co., which owns approximately 15% of Genius Insurance Broker Co., a leading insurance brokerage company operating throughout Taiwan. We believe the investments we are making will facilitate achieving our collective goal of building the company and enhancing long-term shareholder value," Mr. Mao added.

2014 Fourth Quarter Results

Revenues for the quarter ended December 31, 2014 increased 3.4% to $16.46 million, from $15.92 million in the same period last year. The increase, in part, reflected higher sales of insurance products in Taiwan through the Company's strategic alliance with AIA International Limited Taiwan Branch, as well as increased sales of China Trust Life Insurance products.

 

Revenues by geography were as follows:

		Three months ended December 31,
Geographical Area		2014		2013
PRC		$        923,113		$        937,496
Taiwan		15,536,926		14,983,285
		$   16,460,039		$   15,920,781

Cost of revenue for the fourth quarter of 2014 was $10.72 million versus $10.04 million in same period a year ago.

Gross profit for the three months ended December 31, 2014 was $5.74 million, compared with $5.88 million in the comparable quarter in 2013.

Selling expenses for the 2014 fourth quarter were $1.59 million, compared with $0.97 million in the same quarter a year ago. General and administrative expenses for the fourth quarter of 2014 were $3.54 million, compared with $3.62 million for the same period a year ago.

Net income for the quarter ended December 31, 2014 was $0.31 million versus $0.28 million for the same quarter last year. The net loss attributable to CUIS' shareholders for the quarter was $33,000, or $0.001 per share, compared with a net loss of $135,000, or $0.005 per share, in the same period of 2013.

2014 Fiscal Year Financial Results

For the year ended December 31, 2014, revenues rose to $47.45 million from $45.16 million a year ago.

Revenues by geography were as follows:

 

		Twelve months ended December 31,
Geographical Area		2014		2013
PRC		$      3,060,765		$     2,720,382
Taiwan		44,389,197		42,436,192
		$    47,449,962		$   45,156,574

Cost of revenue for the twelve months of 2014 was $30.41 million, compared with $27.58 million for the same period a year ago.

Gross profit for the year ended December 31, 2014 rose to $17.04 million from $17.58 million for 2013.

Selling expenses for the twelve months of 2014 were $4.03 million, compared with $2.74 million in the same period last year. The increase was primarily related to an advertising campaign for the Company's Taiwan operation.

General and administrative expenses for 2014 were $11.97 million from $10.39 million in the prior year, primarily reflecting Taiwan's business tax rate, which rose to 5% from 2% starting in 2014. Additionally, results were impacted by relocation expense of moving the Company's China headquarters to Nanjing, and the opening of a service outlet in Yunnan.

Income before income taxes for the year ended December 31, 2014 was $1.63 million, compared with $4.10 million in 2013. Income tax expense for 2014 was $1.67 million, versus $0.93 million in 2013, with the increase attributable to an income tax law in Taiwan which provides that a company is taxed at an additional 10% on any undistributed earnings to its shareholders. In June and December 2014, CUIS elected not to distribute its earnings accumulated as of December 31, 2013 and 2014, in lieu of investing in future.

Net loss for the year ended December 31, 2014 was $0.04 million, compared with net income of $3.17 million last year. Net loss attributable to CUIS' shareholders for the 2014 fiscal year was $0.91 million, or $0.03 per share, versus net income of $1.54 million, or $0.05 per diluted share, in 2013.   

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.

CUIS currently operates and offers innovative insurance products in China, Hong Kong and Taiwan through its subsidiary companies. The company plans to continue with its expansion into other territories and aspires to become one of the 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-MONTHS AND TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013
	Three-Months Ended December 31,				Twelve-Months Ended December 31,
	2014 (Unaudited)		2013 (Unaudited)		2014 (Audited)		2013 (Unaudited)
Revenues	$    16,460,039		$   15,920,781		$  47,449,962		$  45,156,574
Cost of revenue	10,724,873		10,036,959		30,408,118		27,576,749
Gross profit	5,735,166		5,883,822		17,041,844		17,579,825
Operating expenses:
Selling	1,590,378		965,127		4,034,409		2,737,131
General and administrative	3,538,285		3,623,381		11,971,863		10,386,735
Impairment of goodwill	--		122,250		--		122,250
Total operating expenses	5,128,663		4,710,758		16,006,272		13,246,116
Income from operations	606,503		1,173,064		1,035,572		4,333,709
Other income:
Interest income	81,363		76,558		229,317		156,719
Other-net	120,965		(768,736)		365,225		(385,563)
Total other income	202,328		(692,178)		594,542		(228,844)
Income before income taxes	808,831		480,886		1,630,114		4,104,865
Income tax expense	501,238		200,727		1,672,840		931,919
Net income (loss)	307,593		280,159		(42,726)		3,172,946
Net income attributable to the noncontrolling interests	(340,884)		(415,262)		(865,406)		(1,629,398)
Net income (loss) attributable to parent's shareholders	$          (33,291)		(135,103)		$        (908,132)		$      1,543,548
Weighted average shares outstanding:
Basic and diluted	29,100,503		29,100,503		29,100,503		29,100,503
Income (loss) per share:
Basic and diluted	(0.001)		(0.005)		$           (0.031)		$     0.053

 

 

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2014 AND DECEMBER 31, 2013
		December 31, 2014			December 31, 2013
ASSETS
Current assets
Cash and cash equivalents		$	19,571,799		$		18,070,093
Marketable securities			2,437,006				2,563,685
Accounts receivable, net			7,706,273				7,282,183
Current assets associated with discontinued operations			174,308				184,360
Other current assets			400,159				2,145,317
Total current assets			30,289,545				30,245,638
Property, plant and equipment, net			1,061,762				1,041,189
Intangible assets			270,956				308,267
Goodwill			31,651		-
Long –term investment			95,328				102,295
Other assets			587,522				587,303
Total Assets		$	32,336,764		$		32,284,692
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Taxes payable		$	919,907		$		498,441
Unearned revenue			-				1,586,038
Other current liabilities			9,533,589				8,631,639
Deferred tax liability			37,662				-
Current liabilities associated with discontinued operations			782				666
Due to related parties			531,447				154,798
Total current liabilities			11,023,387				10,871,582
Long-term liabilities			7,500,645				7,095,062
TOTAL LIABILITIES			18,524,032				17,966,644
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000             issued and outstanding			10				10
Common stock, par value $0.00001, 100,000,000 authorized, 29,100,503            issued and outstanding			291				291
Additional paid-in capital			4,674,593				4,674,593
Reserves			1,388,014				415,041
Accumulated other comprehensive loss			(350,881)				(75,888)
Retained earnings			1,717,278				3,598,383
Stockholder's equity attribute to parent's shareholder			7,429,305				8,612,430
Non-controlling interest			6,383,427				5,705,618
TOTAL STOCKHOLDERS' EQUITY			13,812,732				14,318,048
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	32,336,764		$		32,284,692

 

 

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SOURCE China United Insurance Service, Inc.

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