Chunlin Wang
[外语] 感谢各位参加今天的电话会议。与我一同出席的有我们的首席财务官彭戈先生和董事会秘书李莉莉女士。今天的会议我们将首先简要分析近期市场发展情况，随后概述我们2019年第一季度的财务和运营业绩。报告结束后将进行问答环节。
首先，关于2019年第一季度的行业分析。为引导中国保险业实现更健康、更有序的发展，自2017年10月起，保险监管机构启动了清理整顿行动，重点是将寿险行业回归到为社会提供保障的基本功能。监管机构已发布一系列严格规定和措施，并加大力度调查和惩处违规行为，这有望遏制行业内的腐败和不规范现象。2019年，严格的监管监督预计将进一步深化。因此，我们预计行业的清理整顿可能在一定时期内继续给大多数行业参与者带来压力。然而，从长远来看，这无疑将为保险业的健康快速发展奠定坚实基础，并为那些严格遵守法律法规的企业带来清晰的发展前景。
2019年第一季度，中国个人保险保费总额达到1.3万亿元人民币，同比增长18%，而许多寿险公司的首年定期寿险保费大幅下降，销售人员数量持续减少。预计寿险行业可能继续面临增长压力，行业范围内的首年定期寿险保费下滑很可能持续到2019年第二季度。
其次，泛华2019年第一季度的财务和运营表现。2019年第一季度，泛华的寿险业务总保费实现强劲增长，达到22亿元人民币，同比增长45.1%。其中，首年保费增长45.6%至8.091亿元人民币，年化保费当量增长20.9%至5.33亿元人民币，续期保费增长44.9%至约13.7亿元人民币。我们的营业利润达到1.264亿元人民币，同比增长40.2%，符合我们之前的预期。我们的每ADS净收入同比增长31%至2.62元人民币。
2019年第一季度，尽管许多主要保险公司报告[难以辨认]改善，但泛华的销售队伍继续保持每月2万至3万人的稳定增长。截至2019年3月31日，泛华注册销售人员数量已超过86万人，其中2019年第一季度活跃销售人员超过12.3万人，包括53,309名销售寿险保单的代理人。
2019年第一季度，我们很高兴看到寿险产品组合的改善。年金保险产品占我们总年化寿险保费的比例从一年前的水平增至24%，而健康险占69.8%，养老保险占2.9%，终身寿险和定期寿险约占3.2%。
2019年第一季度，我们的寿险合作伙伴结构发生了重大变化，前五大寿险公司合作伙伴按APE产生的销售比例分布如下：永明人寿占33.5%，华夏人寿占18.8%，天安人寿占17.6%，泰康人寿占13.5%，长城人寿占4%，恒大人寿占42.7%。
第三，我们在线平台在2019年第一季度的发展情况。我们的在线平台保持了良好的增长势头。首先，[难以辨认]活跃评级账户数量截至2019年3月31日达到86万次。2019年第一季度，活跃用户数为61,468人，通过懒掌柜产生的保费为8.875亿元人民币，同比增长40.6%。
其次，CNpad车险APP的激活账户数量截至2019年3月31日达到568,367次，同比增长35.9%。2019年第一季度通过CNpad车险APP产生的保费为4.23亿元人民币。
第三，保网(Baoxian.com)的注册客户账户数量截至2019年3月31日约为230万，同比增长42.2%。2019年第一季度，活跃客户数为82,859人，同比增长33.4%，2019年第一季度通过保网直销产生的保费为9,020万元人民币，同比增长63%。
e互助(eHuzhu)保持稳健发展策略，截至2019年3月31日，有效注册会员数为350万，同比增长13.4%。总互助需求数为2,193项，累计互助金额为3.77亿元人民币。
首先，保网在[难以辨认]上的有效注册客户服务代表数量截至2019年3月31日超过16,000人，累计订单约180万单。
第四，本季度其他重要发展：首先是股息支付。正如董事会先前宣布的，公司年度股息将从2018年的每ADS 1美元增加20%至2019年的每ADS 1.2美元，将按季度支付。2019年第一季度的股息为每ADS 0.3美元，将于2019年6月20日左右支付给2019年6月6日登记在册的股东。
其次，股票回购计划。2019年3月，董事会授权管理层在2019年12月31日前回购最多2亿美元的公司ADS。从2019年3月到2019年5月17日，已通过公司2018年和2019年实施的股票回购计划回购总计140万份ADS，金额约3,680万美元。公司已累计回购280万份ADS，金额约7,310万美元。管理层将继续执行未完成的股票回购计划。
第三，特别委员会。2019年5月21日，公司收到特别委员会关于独立审查结果的报告，董事会特别委员会已完成对卖空者提出的某些指控的审查。特别委员会得出结论，卖空者指控公司通过一系列关联方和子公司交易进行旨在欺骗卖空者的业务，这些指控缺乏依据。卖空者报告被证明包含毫无根据的猜测以及误导性和不准确的指控。结论表明，公司严格遵守SEC对上市公司的规则和法规，包括公开、透明和全面披露的要求。管理层对这一结果感到满意。展望未来，管理层将把此事抛在脑后，全心全意专注于公司的发展和运营，为股东创造长期价值。
首先，2019年第二季度的业务展望。我们预计通过寿险产品产生的年化保费将保持正增长，我们的营业收入在2019年第二季度将增长不低于20%。
谢谢。现在我们的管理层将开放提问环节。嗨，Rachel。
Chunlin Wang
[Foreign language] Thank you for joining us on today's conference call. Here with me we have our Chief Financial Officer, Mr. Peng Ge and our Board Secretary, Mrs. Lily Lee. We will begin today's call by just a brief analysis about recent market developments followed by an overview of our first quarter 2019 financial and operation results. There will be Q&A session after the report. Firstly, an industry analysis in the first quarter 2019, in order to guide China's insurance industry to achieve a healthier and more orderly development, the insurance regulator has started cleanup and ratification initiatives focusing on viewing the life insurance industry back to its fundamental function of providing protection to the society since October 2017. The regulator has issued a series of strict rules and measures and has strengthened efforts to investigate and punished malpractices, which has expect of the corrupt irregularities in the industry. In 2019, the tightening regulatory supervision is expected to deepen. Therefore, we expect that the industry's cleanup and ratification may continue to bring pressure on most of the industry within a certain period of time. However it will definitely lay a solid foundation for the healthy and rapid development of the insurance industry in the long run and bring back clarity to the development of those enterprises, which have CAT Compliance with laws and regulations. In the first quarter of 2019, total personal insurance premiums in China reached RMB1.3 trillion, up 18% year-over-year, while many life insurance companies saw a sharp decline in their first year regular life insurance premiums and a continued drop in sales headcount. It is expected that the life insurance industry may continue to feel pressure to deliver growth and is highly possible that the industry-wide job in first year regular life insurance premiums may continue into the second quarter of 2019. Secondly, financial and operating balance of Fanhua in the first quarter 2019, in the first quarter of 2019, Fanhua's life insurance business registered a strong growth of 45.1% year-over-year to RMB2.2 billion in terms of total insurance premiums, of which first year premiums increased by 45.6% year-over-year to RMB809.1 million, annualized insurance premiums equivalent increased by 20.9% year-over-year to RMB533 million and renewal insurance premiums grew by 44.9% year-over-year to approximately RMB1.37 billion respectively. Our operating profit reached RMB126.4 million, with a year-over-year increase of 40.2%, in line with our prior expectations. Our net income per ADS grew by 31% year-over-year to RMB2.62. In the first quarter 2019, while many major insurers reported [indiscernible] improvement, Fanhua's sales continued a steady growth of 20,000 to 30,000 people per month. As of March 31, 2019 the number of registered sales agents in Fanhua has exceeded 860,000 among which the number of performing sales agents in the first quarter of 2019 was over 123,000 including 53,309 sales agents for selling life insurance policies. In the first quarter of 2019, we were pleased to see improvement in our life insurance product mix. Annuity insurance products as a percentage of our total annualized life insurance premiums increased to 24% from a year ago, while health insurance accounted for 69.8%, endowment insurance accounted for 2.9% and home life insurance and term life insurance accounted for about 3.2%. In the first quarter 2019, there was a big change in the structure of our life insurance partnership through the proportion of sales in terms of APE generated by our top five life insurance company partners is as follows. Aeon accounted for 33.5%, Huaxia 18.8%, Tian'an 17.6%, Taikang 13.5%, Greatwall 4% and Evergrand 42.7%. Thirdly, the development of our online platforms in the first quarter of 2019, our online platforms maintained a good growth momentum. Firstly the [indiscernible] the number of active rated accounts hit 860,000 times as of March 31, 2019. In the first quarter of 2019, the number of active users was 61,468 and insurance premiums generated through Lan Zhanggui were RMB887.5 million representing a growth of 40.6% from a year ago. Secondly, CNpad auto insurance app the number of activated accounts has reached 568,367 times as of March 31, 2019 representing an increase of 35.9% year-over-year. Insurance premiums generated through CNpad auto insurance app were at RMB423 million in the first quarter 2019. Thirdly, Baoxian.com, the number of registered customer accounts on Baoxian.com was approximately 2.3 million as of March 31, 2019 up 42.2% from a year ago. In the first quarter of 2019, the number of active customer count was 82,859 up 33.4% from a year ago and insurance premiums generated on Baoxian.com through direct sales was RMB90.2 million in the first quarter 2019 with an year-over-year increase of 63%. The eHuzhu maintained steady development strategy as of March 31, 2019, the number of effective registered members was 3.5 million representing an increase of 13.4% from a year ago. The number of total is requirements is 2,193 and accumulated amount of pay hours is RMB377 million. Firstly, the Baoxian.com number of effective registered client service representatives on [indiscernible] was more than 16,000 as of March 31, 2019 with accumulated orders of approximately 1.8 million. Fourthly, other major developments during the quarter; first is dividend payout. As previously announced by the Board of Directors, the company's annual dividend would be increased by 20% from $1 per ADS in 2018 to $1.2 per ADS in 2019, which will be paid on a quarterly basis. The dividend in 2019 first quarter is $0.3 per ADS and would be paid on or around June 20, 2019 to shareholders of record on June 06, 2019. Secondly, the share buyback program in March 2019, the Board authorized the management to repurchase up to 200 million of the company's ADS by December 31, 2019. From March 2019 to May 17, 2019 an aggregate of 1.4 million ADS have been repurchased for approximately USD36.8 million persuaded through the company's share buyback programs implemented in 2018 and 2019, the company has repurchased a total of 2.8 million ADS for approximately USD73.1 million. Management will continue to execute outstanding share buyback patents. Thirdly, Special Committee on May 21, 2019, the company received a report from the Special Committee concerning the result of the independent review to which the Special Committee of the Board of Directors has completed its review of certain allegations raised by sellers, the Special Committee concluded that the sellers allegations that characterize the company as during business designed to in which sellers through a series related party and sub doing transactions were unsubstantiated. The short seller report proved to contain baseless speculations and misleading and inaccurate obligations. The conclusions indicated that the company has strictly capped compliance with SEC rules and regulations on listing companies, including requirements for public, transparent and through disclosures. Management is pleased with the result. Going forward, management will put this behind and wholeheartedly focus on the company's development and operations to create more value for our shareholders in the long run. Firstly, the business outlook in the second quarter 2019, we expect our annualized insurance premiums bond right through their life insurance products to maintain positive growth and our operating income to increased by not less than 20% in the second quarter 2019. Thank you. Now our management will open the floor for your questions. Hi Rachel.
