Fanhua Inc. (NASDAQ:FANH) Q2 2020 Earnings Conference Call - Final Transcript

Aug 24, 2020 • 09:00 pm ET


Fanhua Inc. (NASDAQ:FANH) Q2 2020 Earnings Conference Call - Final Transcript


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Thank you for standing by for Fanhua Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. All lines have been placed on mute to prevent background noise. After the management prepared remarks, there will be a question-and-answer session. Please follow the instructions given at that time, if you would like to ask questions.

For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within three hours after the conference is finished. Please visit Fanhua's IR website at under the Events & Webcasts section. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

I would now like to turn the meeting over to your host for today's conference, Ms. Oasis Qiu, Fanhua's Investor Relations Manager.

Oasis Qiu

Good morning. Welcome to our second quarter 2020 earnings conference call. The earnings results were released earlier today and are available on our IR website as well as on Newswire.

Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause our actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to those outlined in our filings with the SEC, including our registration statement on Form 20-F. We do not undertake any obligation to update this forward-looking information except as required under applicable law.

Joining us today are our Chief Executive Officer and Chairman, Mr. Chunlin Wang; Chief Financial Officer, Mr. Peng Ge. Mr. Wang will provide a review of our financial and operational highlights in the second quarter 2020. There will be a Q&A session after the prepared remarks.

Now, I will turn the call over to Mr. Wang.

Chunlin Wang

[Foreign Speech] Thank you for joining us on today's conference call. Here with me, we have our Chief Financial Officer, Mr. Peng Ge, and the Secretary of our Board, Li Li [Phonetic]. And we will be today's call with an overview of our first [Phonetic] quarter 2020 financial and operational results followed by an outlook. Mr. Ge and I will take your questions after the report.

[Foreign Speech] Despite the continued challenges placed by the COVID-19 on China's macro economy and the insurance industry, Fanhua still delivered results exceeding our prior estimates in the second quarter of 2020. [Foreign Speech] Since the second quarter of 2020, we've effected epidemic prevention and control in China. The resumption of domestic economic activities have gradually brought life insurance industry back on track for gradual recovery. In the second quarter of 2020, premiums of China's life insurance industry grew by 13.4% year-on-year, while Fanhua's life insurance premiums increased by 19.2% year-on-year, outpacing the industry growth.

[Foreign Speech] Facing the challenges faced by the pandemic, Fanhua has taken active measures