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GUANGZHOU, China, Nov. 21, 2013 (GLOBE NEWSWIRE) -- CNinsure Inc., (Nasdaq:CISG), (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced its unaudited financial results for the third quarter ended September 30, 2013
Financial Highlights for Third Quarter of 2013
Total net revenues: RMB430.6 million (US$70.4 million), representing an increase of 6.9% from the corresponding period in 2012.
Operating income: RMB1.8 million (US$0.3 million), representing a decrease of 39.1% from the corresponding period in 2012.
Net income attributable to the Company's shareholders: RMB29.0 million (US$4.7 million), representing an increase of 26.0% from the corresponding period in 2012.
Adjusted EBITDA: RMB28.0million (US$4.6 million), representing a decrease of 10.2% from the corresponding period in 2012.
Basic and diluted net income per ADS: RMB0.58 (US$0.09) and RMB0.58 (US$0.09), respectively, representing increases of 26.5% and 26.6%, respectively, from the corresponding period in 2012.
Commenting on the third quarter financial results, Mr Chunlin Wang, CNinsure's chief executive officer, stated, "We are in the midst of a fundamental change in China moving from a low cost country to a high productivity one. Amid this change, we have been able to continue to grow our top line while transiting the Company, and we start to see some positive signs during the third quarter 2013. Gross margin for the third quarter 2013 improved sequentially, primarily driven by a rebound in gross margin of our property and casualty insurance ("P&C") business both quarter-over-quarter and year-over-year. The magnitude of the decline in operating income has also narrowed significantly as compared to the last six quarters. This quarter's financial results reaffirmed our confidence in a recovery in profitability in the coming quarters.
"Significant progress has been made on the application of mobile technology. As of the end of third quarter 2013, total number of CNpad sold hit 2,190 units, generating RMB90 million insurance premiums in aggregate. In addition, we are getting ready for a trial operation of CNpad that enables the sales of life insurance, wealth management, private equity fund and mutual fund products in selected cities in a couple of weeks. We believe additional product offerings will significantly enhance the competitiveness of CNpad, which is expected to help agents improve their efficiency and broaden their revenue sources."