Fanhua board approves '521 Development Plan'
Fanhua announced that its board of directors has approved a "521 Development Plan", aimed at achieving its goals of generating RMB2B annual net income and RMB10B annual first year premiums of life insurance business after five years. The board is confident this will further strengthen its cash generation capabilities and allow Fanhua to pay steady dividends. Pursuant to the 521 Development Plan, Fanhua intends to set up a "Fanhua Entrepreneurial Fund", or the Fanhua Fund, to invest in the company's stocks. At least 10% of the total subscription cost of the Fanhua Fund will be contributed by the eligible participants and the remaining portion will be funded by loans granted to the participants by the company, which will bear interest at a rate of 8% per annum. American depositary shares representing 20 ordinary shares of the company held by the Fanhua Fund will be pledged to the company to secure the payment of loans by the participants.