Health & Fitness
Health and Fitness
Health and Fitness
Tue, November 17, 2009
Mon, November 16, 2009 China INSOnline Reports 27% Gain in First Quarter Net Income on 6% Decline in Revenues
BEIJING--(Marketwire - November 16, 2009) - China INSOnline Corp. (
The Company reported that the decline in first quarter revenues was primarily a consequence of a 79% decline in revenues from Online Insurance Advertising which decreased from approximately $3.55 million in the year ago quarter to $756,201 in the first quarter this year. This reflected the fact that insurance agents failed to renew online advertising agreements with the Company.
A much stronger performance in the quarter was recorded by the Company's Software Development segment which saw revenues grow 127% to $4,356,025 in the first quarter this year from $1,919,196 in the first three months ended September 30, 2008. The $2,436,829 increase in Software Development revenue was the primary reason for the 27% increase in net income in the quarter. The Company attributed the gain in Software Development revenues to the completion of 5 projects in this year's first quarter, reflecting newly developed software packages that were successfully delivered and tested by customers during the period.
The Company reported further that Insurance Agency services revenue in the first quarter ended September 30, 2009 decreased 39% to $42,599 from $70,012 during the same period last year primarily due to unfavorable market conditions.
Ms. Betty Xu, CEO of China INSOnline, commented, "While we were quite disappointed with the decline in internet advertising, it was not entirely unanticipated in the current financial environment, as reflected in our decision to curtail advertising and promotion expenses in this year's first quarter compared to an approximately $914,171 ad expenditure in the same period last year."
"Going forward," she stated, "our primary focus will be on building our insurance services utilizing our well known site, [ www.soobao.cn ], which continues to be an important part of the insurance landscape, at a time when internet usage in China continues to grow very substantially."
"In 2008," Ms. Xu noted further, "we acquired GHIA to qualify our Company to be an insurance agent throughout China, and this remains a significant element in the growth plans we have formulated."
Mr. Zhenyu Wang, Chairman of the Company, stated, "We are pleased with the continuing growth in net income and the success of our Software Development activities-- especially in what has been a markedly turbulent financial environment-- and we will continue to build on the customer relationships we have developed. However, the long term success of the Company will rest with the progress we make in developing our internet services and the extent to which we can support these services with the chain insurance supermarket entity we continue to envision."
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About China INSOnline Corp.
China INSOnline Corp., incorporated in Delaware and headquartered in Beijing, is a rapidly growing licensed insurance agency in The People's Republic of China. Representing major insurance underwriting firms in China, the Company offers online automobile, property and life insurance services through its industry web portal, [ www.soobao.cn ]. The Company's online platform also provides consumers, agents and insurance companies with online transaction capabilities, advertising, online inquiry, news circulation, statistical analysis and software development services. For more information, please visit [ www.china-insonline.com ].
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
CHINA INSONLINE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) Three Months Three Months Ended Ended September 30, September 30, 2009 2008 ------------- ------------- REVENUES, NET $ 5,126,875 $ 5,471,449 COST OF SALES 561,470 437,471 ------------- ------------- GROSS PROFIT 4,565,405 5,033,978 Selling expenses 15,733 85,193 Advertising expenses - 914,171 General and administrative expenses 348,700 678,333 ------------- ------------- INCOME FROM OPERATIONS 4,200,972 3,356,281 Loss on disposal of fixed assets (2,473) - Interest income (expense), net 266 (42) ------------- ------------- INCOME FROM OPERATIONS BEFORE INCOME TAXES 4,198,765 3,356,239 Income taxes 1,078,148 894,175 ------------- ------------- NET INCOME 3,120,617 2,462,064 OTHER COMPREHENSIVE INCOME Foreign currency translation (loss) gain (17,817) 57,825 ------------- ------------- COMPREHENSIVE INCOME $ 3,102,800 $ 2,519,889 ============= ============= NET INCOME PER SHARE - BASIC AND DILUTED $ 0.08 $ 0.06 ============= ============= WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED 40,000,000 40,000,000 ============= =============
