Fanhua Inc. (NASDAQ:FANH) Q1 2022 Earnings Conference Call May 26, 2022 9:00 PM ET

Company Participants

Oasis Qiu – Investor Relations Manager

Yinan Hu – Chairman and Chief Executive Officer

Peng Ge – Chief Financial Officer

Conference Call Participants

Operator

Thank you for standing by for Fanhua's First Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. All lines have been placed on mute to prevent background noise. After the management's prepared remarks, there will be a question-and-answer session. Please follow the instructions given at that time if you would like to ask a question. For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within three hours after the conference is finished. Please visit Fanhua's IR website at ir.fanhuaholdings.com under the Events and Webcast section. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

I would now like to turn the meeting over to your host for today's conference, Ms. Oasis Qiu, Fanhua's Investor Relations Manager.

Oasis Qiu

Good morning. Welcome to our first quarter 2022 earnings conference call. The earnings results were released earlier today and are available on our IR website as well as on Newswire. Before we continue, please note that the discussion today will contain forward-looking statements, made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause our actual results to differ materially from those projected or anticipated.

Such risks and uncertainties include, but not limited to, those online in our filings with the SEC, including our registration statement on Form 20-F. We do not undertake any obligation to update this forward-looking information, except as required under the applicable law. Joining us today, are our Chairman and Chief Executive Officer, Mr. Yinan Hu; Chief Financial Officer, Mr. Peng Ge; Chief Operating Officer, Mr. Lichong Liu; and Chief Digital Officer, Mr. Jun Li. Mr. Hu will provide a review of our financials and operational highlights in the first quarter of 2022. There will be a Q&A session after the prepared remarks.

Now, I will turn the call over to Mr. Liu.

Yinan Hu

[Foreign Language] Good morning and good evening. Thank you for joining us today on conference call. [Foreign Language] Since the beginning of 2022, the omicron COVID-19 variant has been fueling outbreaks in provinces including Shanghai, Guangdong, Shandong, Jilin, Hubei and Zhejiang dealing a severe blow to offline activities and trainings of our teams. In the first quarter of 2022, one third of the training programs and customer activities were canceled and in most COVID stricken areas such as Zhejiang and Shanghai, Fanhua’s claims adjusting business almost ground to a halt, recording a loss in the first quarter.