Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Competition for sales personnel and claims adjustors from insurance companies and other insurance intermediaries.
• If our stock price is below certain levels after five years, the structure of our 521 plan may adversely affect our business and results of operations.
• If our investments in our mobile and online platforms are not successful, our business and results of operations may be materially and adversely affected.
• All of our personnel engaging in insurance agency, or claims adjusting activities are required under relevant PRC regulations to register with the CBIRC’s Insurance Intermediaries Regulatory Information System and obtain a Practice Certificate issued by the insurance company or insurance intermediary to which he or she belongs.
• Material changes in the regulatory environment could change the competitive landscape of our industry or require us to change the way we do business.
• Our financial results could be negatively impacted if we are unable to maintain the business volume of our insurance agency business after shifting our focus from property and casualty insurance products to life insurance products.
• We may be unsuccessful in identifying and acquiring suitable acquisition targets, which could adversely affect our growth.
• Competition in our industry is intense and, if we are unable to compete effectively with both existing and new market participants, we may lose customers and our financial results may be negatively affected.
• Quarterly and annual variations in our commission and fee revenue may unexpectedly impact our results of operations.
• Our operating structure may make it difficult to respond quickly to operational or financial problems, which could negatively affect our financial results.
• Our future success depends on the continuing efforts of our senior management team and other key personnel, and our business may be harmed if we lose their services.
• Salesperson and employee misconduct is difficult to detect and deter and could harm our reputation or lead to regulatory sanctions or litigation costs.
• Our investments in certain financial products may not yield the benefits we anticipate or incur financial loss, which could adversely affect our cash position.
• If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud.
• We may face legal action by former employers or principals of entrepreneurial agents who join our distribution and service network.
• If we are required to write down goodwill and other intangible assets, our financial condition and results may be materially and adversely affected.
• Any significant failure in our information technology systems could have a material adverse effect on our business and profitability.
• We may face potential liability, loss of customers and damage to our reputation for any failure to protect the confidential information of our customers.
• Our business is subject to supplier concentration risks arising from dependence on a single or limited number of suppliers.
• If we are unable to respond in a timely and cost-effective manner to rapid technological change in the insurance intermediary industry, it may result in a material adverse effect.
• We face risks related to health epidemics, including the ongoing COVID-19 outbreak, severe weather conditions and other catastrophes, which could materially and adversely affect our business.
• We may be at risk of securities class action litigation.
• We may be subject, from time to time, to adverse actions taken by other parties, including lawsuits and negative reports and regulatory proceedings, which may divert resources and the time and attention of our management and may otherwise adversely affect us.
• If the PRC government finds that the structure for operating part of our China business does not comply with applicable PRC laws and regulations, we could be subject to severe penalties.
• PRC regulation of loans and direct investment by offshore holding companies to PRC entities may delay or prevent us from making loans to our PRC subsidiaries or making additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.
• Substantial uncertainties exist with respect to the enactment timetable, interpretation and implementation of the PRC Foreign Investment Law and how it may impact the viability of our corporate structure, corporate governance, business operations and financial results.
• Our variable interest entities or their respective shareholders and directors may fail to perform their obligations under our contractual arrangements with them.
• If we make equity compensation grants to persons who are PRC citizens, they may be required to register with SAFE.
• Adverse economic, political and legal developments in China could have a material adverse effect on our business.
• Uncertainties with respect to the PRC legal system could adversely affect us.
• Governmental control of currency conversion may affect the value of your investment.
• The PRC Enterprise Income Tax Law may increase the enterprise income tax rate applicable to some of our PRC subsidiaries, which could have a material adverse effect on our result of operations.
• Our global income or the dividends we receive from our PRC subsidiaries may be subject to PRC tax under the EIT Law, which could have a material adverse effect on our results of operations.
• Certain PRC regulations could also make it more difficult for us to pursue growth through acquisitions.
• The trading price of our ADSs may be volatile.
• We may need additional capital, and the sale of additional ADSs or other equity securities could result in additional dilution to our shareholders.
• Substantial future sales or perceived potential sales of our ordinary shares, ADSs or other equity securities in the public market could cause the price of our ADSs to decline.
• Our corporate actions are substantially controlled by our officers, directors and principal shareholders.
• Holders of our ADSs may have fewer rights than holders of our ordinary shares and must act through the depositary to exercise those rights.
• Right of holders of our ADSs to participate in any future rights offerings may be limited, which may cause dilution to their holdings.
• Holders of our restricted ADSs may be subject to limitations on transfer of their ADSs.
• Certain judgments obtained against us by our shareholders may not be enforceable.
• The audit reports included in this annual report have been prepared by our independent registered public accounting firm whose work may not be inspected fully by the Public Company Accounting Oversight Board and, as such, you may be deprived of the benefits of such inspection.

Mitigation Strategies

• Management took corrective actions for the weakness and implemented procedures to address such weakness during the fiscal year of 2019, concluding that these measures were fully implemented and the material weakness were fully remedied during 2019.
• We have internal policies and procedures to deter salesperson or employee misconduct.
• We have requested our beneficial owners who to our knowledge are PRC residents to make the necessary applications, filings and amendments as required under SAFE Circular 37 and other related rules.
• We attempt to comply, and attempt to ensure that our beneficial owners who are subject to these rules comply with the relevant requirements.
• We believe that our current cash and cash equivalents and anticipated cash flow from operations will be sufficient to meet our anticipated cash needs for the foreseeable future.

Supply Chain Management

Climate-Related Risks & Opportunities