CUII China United Insurance Service Inc (CE)

ZHENGZHOU, China and TAIPEI, Taiwan, April 21, 2014 /PRNewswire/ -- China United Insurance Service, Inc. (CUIS) (OTCBB: CUII), a leading insurance intermediary company with operations in the People's Republic of China and Taiwan, today reported financial results for the three and six months ended December 31, 2013.

Results for the Three Months ended December 31, 2013

Revenues for the quarter ended December 31, 2013 increased 24% to $15.9 million, from $12.8 million in the same period last year. Gross profit for the quarter increased to $6.1 million versus $4.9 million for the comparable quarter in 2012. Operating expenses for the quarter were $4.9 million, which included $1.2 million of selling expenses for marketing promotion in Taiwan and $122,000 of impairment of goodwill, compared with $3.4 million in the same quarter a year ago.

Net other expenses for the quarter ended December 31, 2013 was $693,000, primarily due to $303,000 of loss from disposal of fixed assets and $370,000 of estimated tax penalties for late filings of income tax return in the United States. For the same quarter in 2012, the company had net other income of $280,000.

Net income for quarter ended December 31, 2013 was $291,000, compared with $1.6 million in the 2012 comparable quarter. Net loss attributable to CUIS' shareholders for the quarter was $123,000, or $0.01 per share, versus net income of $1.1 million in the same quarter last year.

"We continue to expand our market share in Taiwan and China, accelerating through strategic partnerships with top reputable insurance companies and their product offerings, in particular, the strategic alliance with AIATW in June 2013. At the same time, we focus on providing excellent service through highly trained professionals, which has helped separate us from the competition," said Chung-Mei Lo, Chief Executive Officer. "We are proud to have been recognized by the industry for our excellent insurance products, receiving the 2013 Taiwan Insurance Excellence Award, one of the most prestigious insurance industry awards granted in the country, as well the Most Desirable Insurance Brokerage Company of Finance Insurance Graduates.

"Since 2012, the China Insurance Regulatory Commission has been issuing tighter regulations for insurance agencies.  One of the policies requires all insurance agencies to obtain a nationwide license to operate a business, a license that we have obtained.  We expect a better regulated market in China to further accentuate our competitive advantage," added Lo.

Results for the Six Months ended December 31, 2013

The company reported revenues of $23.7 million; gross profit of $7.6 million; and operating expenses of $8.1 million for the six months ended December 31, 2013. Net loss attributable to CUIS' shareholders was $1.2 million, or $0.04 per share. Comparative results for the prior-year period are not meaningful because of the acquisition of Action Holding Financial Limited (AHFL) on August 24, 2012.

AHFL is the holding company of Taiwan-based Law Insurance Broker Company, a dominant brokerage and insurance agency service business with 24 branches, three training centers and over 2,000 brokers in Taiwan. Results of the operations for the six months ended December 31, 2012 included AHFL's results from the acquisition date, which also included a bargain gain of $5.3 million.

Change in Reporting Cycle

On January 1, 2014 the company began reporting quarterly results on a calendar year basis, changing to a calendar year-end from a fiscal year-end to better align the company's financial reporting cycle with its business activities and budgeting. The results reported today reflect the reporting cycle transitional period from July 1 to December 31, 2013.

About China United Insurance Service, Inc.
China United Insurance Service, Inc. was founded in 2010 with a vision to build one of the largest financial insurance service platforms in Asia and to become a multinational enterprise by leveraging the experience of its Taiwan operations and capitalizing on China's fast-growing insurance market. CUIS offers a broad range of products and services for individuals, families, and businesses, including: brokerage services for various types of life, health, personal accident, property and casualty insurance; insurance application assistance; claims advocacy; claims accounting preparation services; disaster and loss prevention; and risk assessment/risk management consulting services and the corresponding reinsurance brokerage services. In 2012, the company consolidated both Taiwan and China's operations. CUIS has assembled an experienced executive team, with more than 81 well-experienced managers in agency management to guide its more than 4,200 knowledgeable and professional agents. By offering innovative products, continuously improving the management system and selecting the best products to meet clients' needs, CUIS aspires to become one of Asia's leading financial insurance enterprises.  For more information on CUIS, please visit: http://cuis.asia/

Forward Looking Statement
Statements in this press release may be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements can be identified by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements, and involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections of CUIS and the insurance industry.  Potential risks and uncertainties include, but are not limited to, those relating to CUIS' ability to attract and retain productive agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, and macroeconomic conditions in China and Taiwan and the potential impact on the sales of insurance products. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict.  Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.

(Financial statements follow)

SOURCE China United Insurance Service, Inc.