Fanhua's Stock Recovers From Early Drop Following Weak Q2 Financials
Fanhua Inc. (Nasdaq: FANH) posted declined revenue and income for the second quarter on Wednesday, but its stock, after falling 7 percent in early trading, recovered in the afternoon, closing at $28.88 per share, up more than 1 percent.
The Guangzhou-based company, which provides financing in China, said its revenue in the three months through June reached $130.9 million, down 8 percent year-over-year. Net income was $14.2 million, compared with $24.7 million a year ago, according to the report.
Fanhua said the number of active customer accounts on its platform reached 2.5 million in the second quarter, up 39 percent from a year ago.
Chunlin Wang, the chairman and chief executive officer of the company, commented on the U.S.-China trade war and the instability of the domestic financial industry.
"With the intensifying trade conflict between the U.S. and China and the increasing complexity and uncertainty in the international geopolitical landscape, the security and stability of the financial system has been a top priority for the Chinese state and regulatory authorities since early 2018," Wang said in a statement on Wednesday.
He added, "It is expected that such negative growth in the industry may continue into the second half of 2019."
Looking forward, the company said it expects its Non-GAAP operating income to be approximately $15.7 million for the third quarter.
Fanhua also announced that it has purchased an aggregate of 2,437,754 ADSs for $68.5 million under its share buyback program since March through August.
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