ZHENGZHOU, China and
TAIPEI, Taiwan, Oct. 17, 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 year ended June 30, 2013.
Financial Highlights for Fiscal 2013 (Pro Forma):
- Revenues rose 7.68% to $44.1
million from $41.0 million a
year ago.
- Gross profit increased 24.9% to $15.6
million from $12.5 million
last year.
- Operating income advanced 31.7% to $4.4
million from $3.4 million for
fiscal 2012.
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 twelve months ended June
30, 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 fourth quarter from April
1 to June 30, 2013, the company reported revenues of
$9.9 million; gross profit of
$3.6 million; operating income of
$823,000; and net income attributable
to CUIS's shareholders of $318,000,
or $0.01 per diluted share.
Comparative results for the prior-year period are not meaningful
because of the acquisition of AHFL.
For the 2013 fiscal year, the company reported revenues of
$37.8 million; gross profit of
$13.5 million; operating income of
$3.5 million; and net income
attributable to CUIS's shareholders of $7.2
million, including a bargain gain on the purchase of AHFL of
$5.3 million, or $0.26 per diluted share.
On June 10, 2013, AHFL entered
into a strategic partnership with AIA International Limited Taiwan
Branch ("AIATW") to promote life insurance products provided by
AIATW within Taiwan by insurance
agency companies or insurance brokerage companies affiliated with
AHFL or CUIS.
"Our financial results continue to reflect the successful
acquisition of AHFL, which helped the company establish a
foundation for future growth," said Chung-Mei Lo, Chief Executive Officer. "The new
strategic partnership AIATW further strengthens our competitive
position in the growing Taiwanese insurance market, allowing us to
better serve our clients with the tailored products they seek. In
recognition of our high levels of customer service and
satisfaction, we were awarded the 2013 Taiwan Insurance Excellence
Award, one of the most prestigious insurance industry awards
granted in the country.
"We remain committed to growing into one of the top insurance
enterprises in Asia and are
optimistic about our future prospects," said Mr. Lo.
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
TWELVE-MONTHS ENDED JUNE 30, 2013
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
June 30,
2013
|
|
June 30,
2013
|
|
|
|
|
|
|
Revenues
|
$
|
9,890,661
|
|
$
|
37,842,246
|
Cost of
revenue
|
|
6,254,462
|
|
|
24,309,716
|
Gross
profit
|
|
3,636,199
|
|
|
13,532,530
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,813,068
|
|
|
10,025,786
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
823,131
|
|
|
3,506,744
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
Interest
income
|
|
22,352
|
|
|
83,682
|
Bargain gain on
purchase of subsidiaries
|
|
-
|
|
|
5,280,042
|
Other -
net
|
|
124,409
|
|
|
432,064
|
Total other
income
|
|
146,761
|
|
|
5,795,788
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
969,892
|
|
|
9,302,532
|
Income tax
expense
|
|
240,444
|
|
|
698,508
|
|
|
|
|
|
|
Net income
(loss)
|
|
729,448
|
|
|
8,604,024
|
Net income
attributable to non-controlling interest
|
|
(380,109)
|
|
|
(1,386,556)
|
Net income (loss)
attributable to parent's shareholders
|
|
349,339
|
|
|
7,217,468
|
|
|
|
|
|
|
Other
comprehensive items
|
|
|
|
|
|
Foreign currency
translation gain (loss) attributable
to parent's
shareholders
|
|
(31,428)
|
|
|
13,579
|
Foreign currency
translation gain (loss) attributable
to non-controlling
interest
|
|
(21,512)
|
|
|
(1,630)
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to parent's shareholders
|
$
|
317,911
|
|
$
|
7,231,047
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
non-controlling
interest
|
$
|
(401,621)
|
|
$
|
(1,388,186)
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic and
diluted
|
|
30,100,503
|
|
|
27,593,654
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
Basic and
diluted
|
$
|
0.01
|
|
$
|
0.26
|
CHINA UNITED
INSURANCE SERVICE, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
AS OF JUNE 30,
2013 AND JUNE 30, 2012
(Unaudited)
|
|
|
|
|
|
June 30,
2013
|
|
June 30,
2012
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$
|
16,705,327
|
|
$
|
1,258,211
|
Marketable securities
|
|
130,387
|
|
|
-
|
Accounts
receivable, net
|
|
4,138,340
|
|
|
184,767
|
Other
current assets
|
|
435,043
|
|
|
48,640
|
Total current
assets
|
|
21,409,097
|
|
|
1,491,618
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
1,161,803
|
|
|
114,945
|
Goodwill
|
|
121,667
|
|
|
118,855
|
Other
assets
|
|
519,878
|
|
|
113,217
|
TOTAL
ASSETS
|
$
|
23,212,445
|
|
$
|
1,838,635
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Taxes
payable
|
$
|
893,713
|
|
$
|
405,723
|
Other
current liabilities
|
|
5,092,826
|
|
|
286,909
|
Due to
related parties
|
|
1,737,296
|
|
|
445,332
|
TOTAL CURRENT
LIABILITIES
|
|
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 as of June 30, 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 June 30, 2013,
20,100,503 issued and outstanding as of June 30, 2012
|
|
291
|
|
|
201
|
Additional paid-in
capital
|
|
4,674,593
|
|
|
2,674,692
|
Reserves
|
|
257,785
|
|
|
-
|
Accumulated other
comprehensive loss
|
|
(41,671)
|
|
|
(55,250)
|
Retained earnings
(accumulated deficit)
|
|
4,907,617
|
|
|
(1,918,972)
|
Stockholders' equity
attributable to parent's shareholders
|
|
9,798,625
|
|
|
700,671
|
Non-controlling
interest
|
|
5,689,985
|
|
|
-
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
15,488,610
|
|
|
700,671
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
23,212,445
|
|
$
|
1,838,635
|
CHINA UNITED
INSURANCE SERVICE, INC. AND SUBSIDIARIES
|
PRO FORMA
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME
|
FOR THE
TWELVE-MONTHS ENDED JUNE 30, 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 year ended June 30, 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.
|
|
Year Ended June
30, 2013
|
|
|
CUIS
|
|
AHFL
|
|
Sub
Total
|
|
Pro Forma
Adjustment
|
|
Pro
Forma
|
|
Revenues
|
$
|
2,775,431
|
|
$
|
35,066,815
|
|
$
|
37,842,246
|
|
$
|
6,269,436
|
|
$
|
44,111,682
|
|
Cost of
revenue
|
|
1,639,570
|
|
|
22,670,146
|
|
|
24,309,716
|
|
|
4,219,622
|
|
|
28,529,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,135,861
|
|
|
12,396,669
|
|
|
13,532,530
|
|
|
2,049,814
|
|
|
15,582,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
2,144,469
|
|
|
7,881,317
|
|
|
10,025,786
|
|
|
1,109,381
|
|
|
11,135,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
(1,008,608)
|
|
|
4,515,352
|
|
|
3,506,744
|
|
|
940,433
|
|
|
4,447,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
2,448
|
|
|
81,234
|
|
|
83,682
|
|
|
(519)
|
|
|
83,163
|
|
Gain on
acquisition of subsidiary
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,280,042
|
|
|
5,280,042
|
|
Other -
net
|
|
1,519
|
|
|
430,545
|
|
|
432,064
|
|
|
79,545
|
|
|
511,609
|
|
Total other
income
|
|
3,967
|
|
|
511,779
|
|
|
515,746
|
|
|
5,359,068
|
|
|
5,874,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
(1,004,641)
|
|
|
5,027,131
|
|
|
4,022,490
|
|
|
6,299,501
|
|
|
10,321,991
|
|
Income tax expense
(benefit)
|
|
(256,353)
|
|
|
954,861
|
|
|
698,508
|
|
|
174,835
|
|
|
873,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
(748,288)
|
|
|
4,072,270
|
|
|
3,323,982
|
|
|
6,124,666
|
|
|
9,448,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the non-
controlling interests
|
|
-
|
|
|
(1,386,556)
|
|
|
(1,386,556)
|
|
|
(527,394)
|
|
|
(1,913,950)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CUIS's shareholders
|
|
(748,288)
|
|
|
2,685,714
|
|
|
1,937,426
|
|
|
5,597,272
|
|
|
7,534,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
13,579
|
|
|
(2,343)
|
|
|
11,236
|
|
|
-
|
|
|
11,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
(734,709)
|
|
$
|
2,683,371
|
|
$
|
1,948,662
|
|
$
|
5,597,272
|
|
$
|
7,545,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
TWELVE-MONTHS ENDED JUNE 30, 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 year ended June 30, 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.
|
|
|
Year Ended June
30, 2012
|
|
|
|
CUIS
|
|
|
AHFL
|
|
|
Pro
Forma
|
|
Revenues
|
|
$
|
3,153,776
|
|
|
$
|
37,812,492
|
|
|
$
|
40,966,268
|
|
Cost of
revenue
|
|
|
2,363,581
|
|
|
|
26,122,202
|
|
|
|
28,485,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
790,195
|
|
|
|
11,690,290
|
|
|
|
12,480,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
|
1,166,841
|
|
|
|
7,936,147
|
|
|
|
9,102,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(376,646)
|
|
|
|
3,754,113
|
|
|
|
3,377,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
4,756
|
|
|
|
3.643
|
|
|
|
8,399
|
|
Gain on
acquisition of subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
5,442,523
|
|
Other -
net
|
|
|
(19)
|
|
|
|
477,542
|
|
|
|
477,523
|
|
Total other
income
|
|
|
4,737
|
|
|
|
481,185
|
|
|
|
5,928,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
|
(371,909)
|
|
|
|
4,235,328
|
|
|
|
9,305,942
|
|
Income tax
expense
|
|
|
(268,440)
|
|
|
|
846,507
|
|
|
|
578,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(103,469)
|
|
|
|
3,388,821
|
|
|
|
8,727,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to CUIS's shareholders
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
13,972
|
|
|
|
96,480
|
|
|
|
13,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
$
|
(89,497)
|
|
|
$
|
3,485,301
|
|
|
$
|
8,741,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted
|
|
|
|
|
|
|
|
|
|
|
30,100,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted
|
|
|
|
|
|
|
|
|
|
$
|
0.29
|
|
SOURCE China United Insurance Service, Inc.