China United Insurance Service Reports Financial Results For Three- And Six-Months Ended December 31, 2013

ZHENGZHOU, China and TAIPEI, Taiwan, April 21, 2014 /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 reported financial results for the three and six months ended December 31, 2013.

Results for the Three Months ended December 31, 2013

Revenues for the quarter ended December 31, 2013 increased 24% to $15.9 million, from $12.8 million in the same period last year. Gross profit for the quarter increased to $6.1 million versus $4.9 million for the comparable quarter in 2012. Operating expenses for the quarter were $4.9 million, which included $1.2 million of selling expenses for marketing promotion in Taiwan and $122,000 of impairment of goodwill, compared with $3.4 million in the same quarter a year ago.

Net other expenses for the quarter ended December 31, 2013 was $693,000, primarily due to $303,000 of loss from disposal of fixed assets and $370,000 of estimated tax penalties for late filings of income tax return in the United States. For the same quarter in 2012, the company had net other income of $280,000.

Net income for quarter ended December 31, 2013 was $291,000, compared with $1.6 million in the 2012 comparable quarter. Net loss attributable to CUIS' shareholders for the quarter was $123,000, or $0.01 per share, versus net income of $1.1 million in the same quarter last year.

"We continue to expand our market share in Taiwan and China, accelerating through strategic partnerships with top reputable insurance companies and their product offerings, in particular, the strategic alliance with AIATW in June 2013. At the same time, we focus on providing excellent service through highly trained professionals, which has helped separate us from the competition," said Chung-Mei Lo, Chief Executive Officer. "We are proud to have been recognized by the industry for our excellent insurance products, receiving the 2013 Taiwan Insurance Excellence Award, one of the most prestigious insurance industry awards granted in the country, as well the Most Desirable Insurance Brokerage Company of Finance Insurance Graduates.

"Since 2012, the China Insurance Regulatory Commission has been issuing tighter regulations for insurance agencies.  One of the policies requires all insurance agencies to obtain a nationwide license to operate a business, a license that we have obtained.  We expect a better regulated market in China to further accentuate our competitive advantage," added Lo.

Results for the Six Months ended December 31, 2013

The company reported revenues of $23.7 million; gross profit of $7.6 million; and operating expenses of $8.1 million for the six months ended December 31, 2013. Net loss attributable to CUIS' shareholders was $1.2 million, or $0.04 per share. Comparative results for the prior-year period are not meaningful because of the acquisition of Action Holding Financial Limited (AHFL) on August 24, 2012.

AHFL is the holding company of Taiwan-based Law Insurance Broker Company, a dominant brokerage and insurance agency service business with 24 branches, three training centers and over 2,000 brokers in Taiwan. Results of the operations for the six months ended December 31, 2012 included AHFL's results from the acquisition date, which also included a bargain gain of $5.3 million.

Change in Reporting Cycle

On January 1, 2014 the company began reporting quarterly results on a calendar year basis, changing to a calendar year-end from a fiscal year-end to better align the company's financial reporting cycle with its business activities and budgeting. The results reported today reflect the reporting cycle transitional period from July 1 to December 31, 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. 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 SIX MONTHS ENDED DECEMBER 31 AND YEAR ENDED JUNE 30, 2013 AND 2012
(Unaudited)
		Six Months Ended December 31,				Year Ended June 30,
		2013				2013				2012
Revenues		$	23,689,110			$	37,842,246			$	3,153,776
Cost of revenue			16,040,303				24,309,716				2,363,581
Gross profit			7,648,807				13,532,530				790,195
Operating expenses:
Selling			2,010,744				962,958				1,166,841
General and administrative			5,948,516				9,062,828
Impairment of goodwill			122,250				-				-
Income (loss) from operations			(432,703)				3,506,744				(376,646)
Other income (expenses):
Interest income			108,654				83,682				4,756
Bargain gain on purchase of subsidiaries			-				5,280,042				-
Other - net			(652,079)				432,064				(18)
Total other income (expenses)			(543,425)				5,795,788				4,738
Income (loss) before income taxes			(976,128)				9,302,532				(371,908)
Income tax expense			143,660				698,508				(268,440)
Net income (loss)			(1,119,788)				8,604,024				(103,468)
Net income attributable to the noncontrolling interests			(32,190)				(1,386,556)				-
Net income (loss) attributable to parent's shareholders			(1,151,978)				7,217,468				(103,468)
Other comprehensive items
Foreign currency translation gain (loss)			(38,218)				13,195				13,972
Other comprehensive income(loss)			4,001				384				-
Attributable to parent's shareholders			(34,217)				13,579				13,972
Other comprehensive items attributable to noncontrolling interest			16,557				(1,630)				-
Comprehensive income (loss) attributable to parent's shareholders		$	(1,186,195)			$	7,231,047			$	(89,496)
Comprehensive income (loss) attributable to noncontrolling interest		$	(15,633)			$	(1,388,186)			$	-
Weighted average shares outstanding:
Basic and diluted			29,100,503				27,593,654				20,100,503
Income (loss) per share:
Basic and diluted		$	(0.04)			$	0.26			$	0.00

 

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2013, JUNE 30, 2013 AND DECEMBER 31, 2012
(Unaudited)
		December 31, 2013				June 30, 2013				June 30, 2012
ASSETS
Current assets
Cash and equivalents		$	18,070,093			$	16,705,327			$	1,258,211
Marketable securities			2,563,685				26,968				-
Accounts receivable, net			7,282,183				4,138,340				184,767
Other current assets			2,329,677				435,043				48,640
Total current assets			30,245,638				21,305,678				1,491,618
Property, plant and equipment, net			1,041,189				959,688				114,945
Intangible assets			308,267				202,115				-
Goodwill			-				121,667				118,855
Long-term Investment			102,295				103,419				-
Other assets			587,303				519,878				113,217
TOTAL ASSETS		$	32,284,692			$	23,212,445			$	1,838,635
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Taxes payable		$	498,441			$	893,713			$	405,723
Unearned revenue			1,586,038				-				-
Other current liabilities			8,632,305				5,092,826				286,909
Due to related parties			154,798				1,737,296				445,332
TOTAL CURRENT LIABILITIES			10,871,582				7,723,835				1,137,964
Long-term liabilities			7,095,062				-				-
TOTAL LIABILITIES			17,966,644				7,723,835				1,137,964
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				200
Additional paid-in capital			4,674,593				4,674,593				2,674,693
Reserves			415,041				257,785				-
Accumulated other comprehensive loss			(75,888)				(41,671)				(55,250)
Retained earnings (accumulated deficit)			3,598,383				4,907,617				(1,918,972)
Stockholder's equity attribute to parent's shareholders			8,612,430				9,798,625				700,671
Noncontrolling interest			5,705,618				5,689,985
TOTAL STOCKHOLDERS' EQUITY			14,318,048				15,488,610				700,671
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	32,284,692			$	23,212,445			$	1,838,635

 

SOURCE China United Insurance Service, Inc.

Copyright 2014 PR Newswire