Strategic focus of the company is shifted to the growth of net income and EPS
CNinsure, an insurance intermediary operating in China, has revised its long-term strategic objective to enhance its position as insurance product distributor and after-sales services provider. Its strategic focus would be on improving the company’s earnings per share (EPS) primarily through net income growth, pursuant to resolutions passed by its Board of Directors.
According to CNinsure, for achieving the strategic objective, it expects to move into the consumer financial services sector. CNinsure, besides selling insurance products and providing insurance-related after-sales services, will also broaden its product offerings. The company would include other financial products, such as mortgage loans, mutual funds and securities.
In conjunction with the Board resolution of adopting growth strategies, the company stated to improve its management efficiency and adapt its business model to achieve the goal of maximising profits at lowest cost.
Mr. Yinan Hu, Chairman and Chief Executive Officer, CNinsure, said: “Expansion into the consumer finance services arena will not only enable us to better meet our customers’ needs with access to a wide range of value-added financial products and services, but also further increase our profitability by leveraging our existing sales distribution network and operating platform to achieve better economies of scale and lower operating costs.”