Chunlin Wang
感谢各位今天上午参加我们的电话会议。我们非常荣幸地邀请到董事会主席胡一楠先生和首席财务官葛鹏先生出席今天的电话会议。在今天的议程中，我将首先向大家汇报2015年第二季度的财务业绩，然后介绍我们下半年的计划。之后，我将把时间交给管理团队的其他成员，在准备好的发言后回答大家的问题。
2015年第二季度，中国保险行业总保费收入同比增长17.6%，其中财产险和寿险分别同比增长9.3%和23%。我们很高兴地看到，我们在保险和领先领域的市场领导地位进一步扩大，2015年第二季度总收入增长[13.1%] [ph]。强劲的增长也反映了我们线上和移动举措贡献的不断增加，线上和移动举措产生的净收入占比从一年前的10.3%上升至2015年第二季度的25.8%。随着更多销售代理采用CNpad移动应用开展业务，我们将继续提高招聘和运营效率——这体现在调整后的运营费用率从去年第二季度的19.5%降至今年第二季度的16.8%。因此，调整后的营业收入增长了50%，ADS每股基本收益同比增长26.1%至人民币1.39元。
从业务板块来看，我们的保险代理业务净收入较上年同期增长34.3%，财产险和寿险板块均实现强劲增长。
- 在我们的寿险代理业务板块中，从2014年第四季度到2015年第二季度实现了同比增长反弹。寿险代理业务总净收入同比增长28.3%，这主要得益于新保单销售收入和续期佣金收入分别同比增长31.1%和43.6%，但部分被短期寿险保单收入下降所抵消。新保单销售的增长主要来自长期保费健康保险产品的快速增长，这类产品通常具有较高的行业价值。2015年第二季度，健康保险产品占新保单销售的80%，而去年同期仅为45%。13个月[技术困难]保持行业领先地位。
我们的经纪保险业务在2015年第二季度继续保持强劲增长势头，同比增长26.2%，主要得益于我们持续的市场拓展和客户积累。现在它已成为我们公司的第二大业务板块。
我们的保险理赔调整业务净收入同比下降12%，主要是由于汽车财产险理赔调整案件减少，因为自然灾害较少，同时也因为我们的汽车相关业务减少，因为我们的一家保险业务合作伙伴将理赔服务外包给了第三方服务提供商。我们将在第四季度前增加理赔调整结算，并希望情况在下一季度逐步好转。
我们在传统线下业务保持稳健增长的同时，继续加大对线上举措的投资，我们对线上取得的进展感到满意，现在我将讨论四个具体例子。
首先，CNpad移动应用。截至2015年第二季度，CNpad应用上提供了来自41家财产险公司的汽车保险产品和来自5家寿险公司的寿险产品。随着我们获得更多产品供应，我们继续改善用户体验，CNpad应用的下载量和移动设备上的交易量都大幅增长。CNpad应用的累计激活下载量为76,000份，其中约12,492份是在第二季度新激活的，约28,000名活跃用户在第二季度贡献了超过6.3亿元人民币的保费，同比增长158.1%。随着我们努力推动汽车保险业务和寿险新保单销售从线下向线上转移，2015年第二季度，约50%的汽车保险业务和26%的寿险新业务通过CNpad移动应用完成交易。
其次，e互助刚刚庆祝了自2014年7月推出以来的第一个周年纪念日。截至目前，累计注册会员数已超过35万，环比增长超过22%，会员数量的创纪录增长表明，e互助作为一个提供有效低成本风险规避解决方案的平台，已获得公众的广泛认可。截至2015年第二季度，已进行了五次捐赠，总捐赠金额为200万元人民币。在我们继续初步审查更多人的同时，我们也发现e互助帮助建立了销售自我扩展索赔之间更紧密的联系，并为销售代理创造了核心销售机会。e互助也是我们如何利用中国快速增长的共享经济机会的一个完美例子。在第二季度，我们特别兴奋地看到更多企业和机构为其员工订阅e互助会员计划，作为员工福利的一部分，或为其客户提供额外的增值服务。
第三，车童网。截至2015年第二季度，车童网拥有超过16,000名注册服务代表，并与32家保险公司或健康保险组织重新建立了合作关系。该网络覆盖了中国98%的省会城市和66%的县。在第二季度，总共处理了约59,000笔保费，环比增长73.5%。这种势头每个月都在加速，6月份单月处理了超过30,000笔理赔。
第四，保险网（Baoxian）是我们汽车保险产品比较网站的官方名称，英文意为购买保险的方式。我们已经开始了网站的内部试运行，预计将于2015年8月31日正式上线。我们的目标是在今年年底前通过与八家保险公司建立实时交易系统或EBI连接来实现交易。保险网也将作为一个开放平台，允许其他第三方在线保险销售平台接入我们的产品供应和线下服务产品。
从去年开始，监管方面有很多新的发展，包括去年发布的新指南，今年早些时候推出的强度，以及去年的寿险保单和评估。2015年5月初，保险法进行了修订，更新了代理机构在[听不清]区域、工业和商业局之前从CRRC获得进一步证书的要求，并且CRRC的要求更高[听不清]。对于可以开展业务的子代理和经纪人，也不再需要强化证书。然后在2015年7月，关于国际业务地位的地区措施从小基础出发，规定了我们在线运营强度的防御者。对于保险组织和第三方在线平台，作为某些保险产品在线销售的新部门机构。这些法规和政策为保险公司提供了挑战和替代方案。
在此背景下，2015年下半年，我们将集中精力推进三个项目，以加速市场扩张并推动更好的增长，主要是销售网络全覆盖项目、销售力量加速增长项目和平台开放项目。
首先，销售网络全覆盖项目。截至目前，我们的销售网络覆盖了中国34个省份中的17个省和独特省份。然而，仍有17个省和69个城市目前没有市场存在，这些地区在2015年考虑了超过7000亿元人民币的保费，约占市场份额的35%。这代表了巨大的市场机会。寿险规划或保险代理机构放松管制带来的市场整合机会，我们将致力于在我们目前没有市场存在的地区实现线下销售网络的全覆盖，我们将通过设立新的分支机构或特许经营来实现这一目标。我们还旨在通过寻求横向联盟和对专注于互联网保险订阅和服务的创业公司进行战略投资，进一步增强我们的在线存在。
其次，销售力量加速增长项目。中国目前有超过1000万个人保险销售代理。我们一直是中国保险市场的主要分销渠道，约占市场份额的40%。看看发达保险市场的加速增长，例如美国，2013年仍有56%的寿险和30%的经纪保险是通过个人销售代理或经纪人销售的。我们相信，个人子代理在未来两年内仍将是中国的主要分销渠道。最近保险法的修订取消了保险销售代理和经纪人的证书要求，我们相信这将为我们整合个人销售代理渠道提供绝佳机会。通过瞄准300万保险销售代理，我们将增加营销资源，让他们获得广泛的保险和金融产品，并使用我们的在线工具吸引更多顶尖人才加入泛华保险，并迅速壮大我们的销售力量。
第三，平台开放项目。我们将向同行公司、联盟和保险公司开放我们的综合平台，包括我们的在线工具、IT基础设施、与保险公司的合同关系以及线下服务支持。该项目符合我们成为第三方供应商和业务伙伴的在线保险合作伙伴和服务平台提供商的定位。
通过这三个主要项目，我们预计2015年下半年我们的总收入增长将加速，我们相信我们有望实现30%的年度总收入增长和2015年100亿保费的目标。从中期来看，我们预计——并旨在实现保费翻倍的目标，在未来三年内以30%的复合年增长率进一步巩固我们的市场领导地位。谢谢。现在，我们的首席执行官王春林先生和首席财务官葛先生将开放提问环节。
Chunlin Wang
Thanks to all of you for joining us this morning. It's our great pleasure to have our Board Chairman, Mr. Yinan Hu and our Chief Financial Officer, Mr. Peng Ge on today's conference call. On today's agenda, I will start by giving you an update on our financial result for the second quarter 2015 and follow by our plan in the second half of the year. After that I will hand to rest of the management team to facilitate your questions after the prepared remarks. During the second quarter of 2015 total insurance premiums in Chinese insurance industry grew by 17.6% year-over-year with P&C Insurance and life insurance sector of 9.3% and 23% year-over-year respectively. And we are pleased that we further extended our market leadership in the insurance and leading sectors with total topline growth of [13.1%] [ph] in the second quarter 2015. The strong growth also reflected the growing contribution from our online and mobile initiative with the proportion of net revenues generated by online and mobile initiative increasing from 10.3% a year ago to 25.8% in the second quarter 2015. As more sales agents are adapting CNpad Mobile Apps to conduct business, we will continue recruitment in operational efficiency in - as evidenced by a job in adjusted operating expense ratio from 19.5% in second quarter last year to 16.8% this second quarter. As a result, adjusted operating income was up by 50% and basic earnings per share for ADS grew by 26.1% year-over-year to RMB1.39. Looking at the nature of our business plans, net revenues of our insurance agency business was up 34.3% from the five year quarter's with robust growth with both P&C and life insurance sectors.
- : Within our life insurance agency business segment, the year-over-year rebound starting from the fourth quarter 2014 to 2015 to the second quarter 2015. The total net revenue of life insurance agency business grew by 28.3% year-over-year, driven by 31.1% and 43.6% year-over-year growth in revenues from new policy sales, and renewal commission increased respectively, which was partially offset by the decrease in revenues from short-term life policies. And the growth of new policy sales mainly comes from a rapid growth of long-term premium health insurance products, which generally have high industry value. Health insurance products stood at 80% of new policy sales during second quarter of 2015 compared to only 45% in the same quarter last year. 13 months [technical difficulty] maintaining a leading position across the industry. Our brokerage insurance business continued the strong growth momentum in the second quarter of 2015 with 26.2% year-over-year growth mainly coming from our continued adverse to go-to market and accumulate customer base. And now it has become a second largest segment in our company. Net revenues from our insurance claims adjustment business dropped 12% year-over-year mainly due to a decline in our auto P&C insurance claims adjusting cases because of fewer natural disasters and also because of job in our auto related business as one of our insurance business partners reduced claim service outlook to third-party service provider. We will increase before the 4Q the claims adjustments settling and hope that the situation will be gradually reversed in the next quarter. We are maintaining solid growth in our traditional offline business, we continue to enhance investments in our online initiative, and we were pleased with the progress we made online and I will now discuss the four specific examples. Firstly, CNpad mobile app as of the second quarter of 2015, auto insurance products from 41 P&C insurance companies and line insurance products from five life insurance companies were available on CNpad app. As we got more products supply, we continue to improve user experience, both downloads of CNpad app and transaction volumes on mobile devices grew substantially. Cumulative activated downloads for CNpad app were 76,000 copies, among which about 12,492 copies were newly activated in the second quarter and approximately 28,000 active users contributed over RMB630 million insurance premiums in the second quarter representing a year-over-year growth of 158.1%. As we strive to push forward the transition of our auto insurance business and also life insurance new policy sales from offline to online approximately 50% of the auto insurance business and 26% of our life insurance new business transacted through CNpad mobile app in second quarter of 2015. Secondly, eHuzhu just celebrated its first anniversary since it's launch in July 2014. As of today, the cumulative number of registered members has topped 350,000, up over 22% quarter-over-quarter and the record growth in members demonstrated that eHuzhu has gained wide recognition by the public as a platform that provides effective low cost risk aversion solution. As of the second quarter of 2015, five donations have been made and with the total donation amount of RMB2 million. While we continue to initially review with some more people, we also found that eHuzhu helped establish closer bonds between our sales self extended claims and has generated core selling opportunities for sales agents. eHuzhu is also a perfect example of how we are exploiting opportunities in China's rapidly growing share economy. During the second quarter, we are especially excited about getting more corporations and institutions to subscribe to you eHuzhu membership plans for their employee as part of their employee benefits or for their clients as additional value added focus. Thirdly, Chetong.net, as of the second quarter 2015, Chetong.net has over 16,000 registered service representatives and has reestablished corporation with 32 insurance companies or health insurance organization. This network covers 98% of the provincial cities and 66% of the counties in China. During the second quarter, approximately 59,000 insurance premiums in total representing an increase of 73.5% quarter-over-quarter. Those momentum accelerated each month and over 30,000 claims were processed in one single month in June. Firstly, Baoxian the official name of our auto insurance policy comparison website which in English means way to buy insurance. We have started internal trial operation of the website and anticipate an official launch on August 31, 2015. We are targeting to establish through proceed transaction enabled give us system assets or EBI connections with eight insurance company by the end of this year. Baoxian will also as Open Platform that allows other third party online insurance sales platforms to access our product offerings and offline service products. Starting from last year there have been a lot of new developments on the regulatory front which is the new guidelines issue last year and also strength on the launch rollout this early this year and also the life insurance policy and evaluation of last year. In early May 2015 the insurance law was amended which renewed the requirement for agencies to obtain further certificate from the CRRC before [indiscernible] from the regional, industrial, and commercial bureau and also higher – by the CRRC [indiscernible]. Fortification certificate is also no longer required for sub agents and brokers who could drop business. Then in July 2015, the regional measures on the position of international business was from small basis which sets forth defenders of the online strength of our operations. And for the insurance organization and also third-party online platforms as a new divisional institution for online sales of certain insurance products. This regulations and policies provide both challenges and alternatives for insurers. Against this fair job in the second half of 2015, we’ll focus our efforts on three programs to accelerate market expansion and drive better growth, mainly the sales network full coverage program accelerated growth of search programs and platform opening-up program. Firstly two different coverage of sales network programs as of today our sales network which is 17 provinces and unique provinces out of the 34 provinces in China. However, there are still 17 provinces and 69 city where the currency have no market percent and this region consider over RMB700 billion insurance premiums in 2015 of approximately 35% of the total market shares. This represent a huge market opportunities for insurer. The market consolation opportunities presented by the deregulation on life insurance planning or insurance agencies will aim to achieve full coverage of our offline sales network in regions where we currently have no market presence and we’ll review this through attachment of new branches to division or franchisees. We also aim to further enhance our online presence by pursuing horizontal alliances and make strategic investments in entrepreneurial companies focus on internet insurance subscription and service. Secondly, Accelerated Growth of Sales Force program, in China there are over 10 million individual insurance sales agents right now. We have been in major distribution channels in Chinese insurance market which should be approximately 40% of the total market share. Looking at the Accelerated Growth in developed insurance market, such as the United States where 56% of life insurance and 30% of broker insurance was still so high individual sales agents or brokers in 2013. We believe that individual subagent will remain a major distribution in the next two years in China. The recent amendment to the Insurance Law has removed certificate requirements on insurance sales agents and brokers which we believe will provide an excellent opportunity for us to consolidate the individual sales agent channel. By targeting the 3 million insurance sales agents, we will increase our marketing resources and give them access to a wide range of insurance and financial products and use our online tools to attract more top talent to join CNinsure and rapidly grow our sales force. Thirdly, Platform Opening-up program, we will open up our integrated platform to peer companies, alliances and insurance companies, including our online tools, IT infrastructure, contractual relationship with insurance companies and offline service support. This program is in line with our positioning to become an online insurance partner and service platform provider to third-party vendors and business partners. Our other three major programs, we expect our top line growth to accelerate in the second half of 2015 and we believe we are on track to achieve 30% annual top line growth and 10 billion insurance premiums in 2015. And in the medium term, we expect - and we aim to achieve a target of doubling insurance premiums with a 30% CAGR growth within the next three years further strengthening our market leadership. Thank you. Now, our CEO, Mr. Wang Chunlin, and our CFO, Mr. Ge, will open the floor for your questions.
