China United Insurance Service Reports 2014 First Quarter Financial Results
ZHENGZHOU, China and TAIPEI, Taiwan, May 19, 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 first quarter ended March 31, 2014.
The geographical distribution of CUIS' revenues for the three months ended March 31, 2014 and 2013 were as follows:
| Three months ended March 31 |
||||
| Geographical Area |
2014 |
2013 |
||
| PRC |
$ 715,197 |
$ 568,378 |
||
| Taiwan |
8,146,526 |
11,377,128 |
||
| $ 8,861,723 |
$ 11,945,506 |
|||
Revenues for the quarter ended March 31, 2014 were $8.9 million, compared with $11.9 million in the same period last year. Revenues for the prior year period included $2.4 million of persistency awards from the Taiwan operation, granted from two principal insurance companies in which CUIS acts as their agent. No such awards were paid during the 2014 first quarter, although approximately $700,000 in grants was received in April 2014, with additional grants anticipated. The company said that due to new regulations, grants received in 2014 will be amortized over the course of the year.
Gross profit for the quarter was $3.5 million versus $4.1 million for the comparable quarter in 2013. Operating expense for the 2014 first quarter was $2.7 million, compared with $2.8 million in the same quarter a year ago.
Net income for quarter ended March 31, 2014 was $650,000, compared with $1.2 million in the same quarter last year. Net income attributable to CUIS' shareholders for the quarter was $255,000, or $0.01 per diluted share, versus net income of $692,000, or $0.02 per diluted share, in the same period 2013.
On January 17, 2014, the board of directors approved a change in the company's fiscal year to December 31 from June 30.
"Our operations in China are beginning to gain traction, with a 25.8% increase in revenues for the first quarter, compared with the prior year period," said Chung-Mei Lo, Chief Executive Officer. "We continue to pursue strategic partnerships with leading insurance companies to expand our product offerings to customers.
"As we move forward, our focus will remain on providing unparalleled customer service through highly trained professionals. As well, our nationwide license in China gives us a strong competitive advantage in addressing the large and growing marketplace for insurance coverage," Lo said.
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-MONTHS ENDED MARCH 31, 2014 AND 2013 |
||||||
| (Unaudited) |
||||||
| Three Months Ended March 31, |
||||||
| 2014 |
2013 |
|||||
| Revenues |
$ |
8,861,723 |
$ |
11,945,506 |
||
| Cost of revenue |
5,368,225 |
7,780,332 |
||||
| Gross profit |
3,493,498 |
4,165,174 |
||||
| Operating expenses: |
||||||
| Selling |
302,989 |
271,030 |
||||
| General and administrative |
2,413,245 |
2,592,790 |
||||
| Total operating expenses |
2,716,234 |
2,863,820 |
||||
| Income from operations |
777,264 |
1,301,354 |
||||
| Other income (expenses): |
||||||
| Interest income |
43,584 |
25,186 |
||||
| Other - net |
72,944 |
142,093 |
||||
| Total other income (expenses) |
116,528 |
167,279 |
||||
| Income before income taxes |
893,792 |
1,468,633 |
||||
| Income tax expense |
243,600 |
302,594 |
||||
| Net income |
650,192 |
1,166,039 |
||||
| Net income attributable to the noncontrolling interests |
(394,794) |
(474,234) |
||||
| Net income attributable to parent's shareholders |
255,398 |
691,805 |
||||
| Other comprehensive items |
||||||
| Foreign currency translation gain (loss) |
(97010) |
(24,258) |
||||
| Other comprehensive income(loss) |
- |
- |
||||
| Attributable to parent's shareholders |
(97,010) |
(24,258) |
||||
| Other comprehensive items |
||||||
| attributable to noncontrolling interest |
80,402 |
40,797 |
||||
| Comprehensive income attributable to |
||||||
| parent's shareholders |
$ |
158,388 |
$ |
667,547 |
||
| Comprehensive income attributable to |
||||||
| noncontrolling interest |
$ |
(314,392) |
$ |
(433,437) |
||
| Weighted average shares outstanding: |
||||||
| Basic and diluted |
29,100,503 |
29,100,503 |
||||
| Income per share: |
||||||
| Basic and diluted |
$ |
0.01 |
$ |
0.02 |
||
| CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES |
||||||
| CONSOLIDATED BALANCE SHEETS |
||||||
| AS OF MARCH 31, 2014 AND DECEMBER 31, 2013 |
||||||
| (Unaudited) |
||||||
| March 31, 2014 |
December 31, 2013 |
|||||
| (UNAUDITED) |
(AUDITED) |
|||||
| ASSETS |
||||||
| Current assets |
||||||
| Cash and equivalents |
$ |
18,151,702 |
$ |
18,070,093 |
||
| Marketable securities |
2,528,719 |
2,563,685 |
||||
| Accounts receivable, net |
3,583,525 |
7,282,183 |
||||
| Other current assets |
2,640,889 |
2,329,677 |
||||
| Total current assets |
26,904,835 |
30,245,638 |
||||
| Property, plant and equipment, net |
1,156,071 |
1,041,189 |
||||
| Intangible assets |
283,785 |
308,267 |
||||
| Long-term Investment |
100,846 |
102,295 |
||||
| Other assets |
599,776 |
587,303 |
||||
| TOTAL ASSETS |
$ |
29,045,313 |
$ |
32,284,692 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
| Current liabilities |
||||||
| Taxes payable |
$ |
727,064 |
$ |
498,441 |
||
| Unearned revenue |
1,563,572 |
1,586,038 |
||||
| Other current liabilities |
5,555,359 |
8,632,305 |
||||
| Due to related parties |
154,203 |
154,798 |
||||
| TOTAL CURRENT LIABILITIES |
8,000,198 |
10,871,582 |
||||
| Long-term liabilities |
6,254,287 |
7,095,062 |
||||
| TOTAL LIABILITIES |
14,254,485 |
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 |
491,678 |
415,041 |
||||
| Accumulated other comprehensive loss |
(172,898) |
(75,888) |
||||
| Retained earnings |
3,777,144 |
3,598,383 |
||||
| Stockholder's equity attribute to parent's shareholders |
8,770,818 |
8,612,430 |
||||
| Noncontrolling interest |
6,020,010 |
5,705,618 |
||||
| TOTAL STOCKHOLDERS' EQUITY |
14,790,828 |
14,318,048 |
||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
29,045,313 |
$ |
32,284,692 |
||
SOURCE China United Insurance Service, Inc.
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