6-K - AIFU - Equibles

UNITEDSTATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM6-K

REPORTOF FOREIGN PRIVATE ISSUERPURSUANT TO RULE 13a-16 OR 15d-16 UNDERTHE SECURITIES EXCHANGE ACT OF 1934

Forthe month of March 2020

CommissionFile Number: 001-33768

FANHUAINC.

27/F, Pearl River Tower

No.15 West Zhujiang Road

Tianhe District, Guangzhou 510623

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fanhua Inc.
By:	/s/<br> Chunlin Wang
Name:<br><br> Title:	Chunlin<br> Wang<br><br> Chief Executive Officer

Date: March 19, 2020

ExhibitIndex

Exhibit<br> No.	Description.
Exhibit 99.1	Press Release
Exhibit 99.2	Press Release
Exhibit 99.3	Press Release

Exhibit 99.1

FanhuaReports Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results

— Quarterly Operating Income RMB114.1 million Up 36.9% YoY

— Annual Operating Income RMB469.4 million Up 10.2% YoY

GUANGZHOU, China, March 18, 2020, Eastern Daylight Time, (GLOBE NEWSWIRE) -- Fanhua Inc., (Nasdaq: FANH), (the “Company” or “Fanhua”), a leading independent financial services provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2019^1^.

Financial Highlights for the fourthquarter of 2019:

(In thousands, except per ADS)	2018Q4<br> <br>(RMB)		2019Q4<br> <br>(RMB)			2019Q4 (US)		Change %
Total net revenues	871,936		1,012,579			145,448		16.1
Operating income		83,392		114,130					36.9
Non-GAAP operating income^2^		83,392		111,043					33.2
Impairment on investment in an affiliate		—		(322,654	)		)		*
Net income (loss) attributable to the Company’s shareholders		112,607		(224,677	)		)		(299.5	)
Non-GAAP net income attributable to the Company’s shareholders^3^		112,607		94,890					(15.7	)
Diluted net income (loss) per ADS		1.99		(4.18	)		)		*
Non-GAAP diluted net income per ADS^4^		1.99		1.77					(11.1	)
Cash, cash equivalents and short- term investments (As of December, 31, 2018 and 2019)		2,326,883		1,782,004					(23.4	)

All values are in US Dollars.

Financial Highlights for Year 2019:

(In thousands, except per ADS)
Total net revenues	3,471,263	3,706,003			6.8
Operating income	425,743	469,363			10.2
Non-GAAP operating income^2^	425,743	469,757			10.3
Impairment on investment in affiliates	—	(322,654	)	)	*
Net income attributable to the Company’s shareholders	609,915	188,932			(69.0	)
Non-GAAP net income attributable to the Company’s shareholders^3^	609,915	511,980			(16.1	)
Diluted net income per ADS	9.83	3.46			(64.8	)
Non-GAAP diluted net income per ADS^4^	9.83	9.37			(4.7	)

All values are in US Dollars.

^1^	This announcement contains currency conversions of certain<br>Renminbi (RMB) amounts into U.S. dollars (US$) at specified rates solely for the convenience of the reader. Unless otherwise noted,<br>all translations from RMB to U.S. dollars are made at a rate of RMB6.9618 to US$1.00, the effective noon buying rate as of December<br>31, 2019 in The City of New York for cable transfers of RMB as set forth in the H.10 weekly statistical release of the Federal<br>Reserve Board.
^2^	Non-GAAP operating income is defined as operating income<br>before share-based compensation expenses.
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^3^	Non-GAAP net income attributable to the Company’s<br>shareholders is defined as net income attributable to the Company’s shareholders before share-based compensation expenses<br>and impairment on investment in an affiliate.
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^4^	Non-GAAP<br>diluted net income per ADS is defined as non-GAAP net income attributable to the Company’s shareholders divided by total<br>weighted average number of diluted ADSs of the Company outstanding during the period.
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Commenting on the financial results of the fourth quarter and full year of 2019, Mr. Chunlin Wang, chairman and chief executive officer of Fanhua, stated, “Despite the challenges amidst industry-wide adjustment, we delivered solid and healthy growth in 2019. Our operating income grew 36.9% year-over-year to RMB114.1 million in the fourth quarter of 2019, bringing the total operating income to RMB469.4 million in 2019, representing a growth of 10.2% year-over-year, in line with our previous estimate.

“In 2019, net revenues from our life insurance business segment, which consisted solely of long-term regular life and health insurance business, continued to grow as a percentage of our total net revenues, reflecting the accelerating snowball effect as our renewal business continued to scale up. Our life insurance business segment recorded robust growth of 39.3% year-over-year in total gross written premiums (“GWP”) to RMB8.6 billion in 2019, of which first year premiums (“FYP”) grew by over 28.2% to RMB3.1 billion and renewal premiums were up 46.6% to RMB5.5 billion while annualized premiums equivalent (for 20 years) (“APE”) were approximately RMB2.0 billion, up 5.0% year-over-year.

“In the fourth quarter of 2019, our life insurance GWP grew by 37.4% year-over-year to RMB2.4 billion, driven by stellar growth in both FYP and renewal premiums. FYP for life insurance segment hit record high of RMB934.5 million, representing a year-over-year growth of 39.8% while APE grew by 10.4% year-over-year to RMB516.5 million. Renewal premiums for life insurance segment grew by 35.8% year-over-year to RMB1.5 billion.

“In the fourth quarter of 2019, we recognized an impairment on investment in an affiliate to reflect the change in its fair value as measured by its stock price as of the end of 2019, which was the primary reason for net loss attributable to shareholders during the quarter. As the impairment was a non-cash item which did not affect the company’s cash flow, we still recorded positive operating cash flow for the fourth quarter and full year of 2019.

“The COVID-19 outbreak has rattled numerous industries across China, including the Chinese life insurance industry. However, it is widely anticipated that aggressive economic stimulus plans may soon be launched by the Chinese government to ease the economic blow from the epidemic. As a result, China is expected to witness a strong rebound in its economic growth in the second half of 2020, which in turn will drive up consumption and demand for insurance products. Fanhua is strongly positioned to capture the opportunities in the insurance market in the second half of 2020.

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“In the past six years, we have adopted an integrated offline-to-online (“O2O”) operating model. We firmly believe such an O2O operating model is the most effective and efficient model for distributing insurance products and services, which has been further proven during the COVID-19 outbreak. Any model that operates solely online or offline will face challenges in maintaining competitiveness and sustainability.

“In response to the COVID-19 outbreak, we have mobilized all human resources from top to bottom and taken swift and targeted measures to cope with the situations. Leveraging our strength in digital technologies and extensive offline distribution and service network, we further integrated our offline resources with online technologies to conduct all of our operational activities, including training and marketing activities, agent recruitment, customer acquisition and interaction as well as completion of transactions, in order to minimize the impact of the COVID-19 outbreak to the greatest extent possible. We are pleased that such measures have started to produce positive results. We expect our business to resume to normal level in the second quarter of 2020. .

“Based on the aforementioned assessment, we expect life insurance APE to be no less than RMB300 million, renewal premiums to be no less than RMB1.8 billion and operating income to be no less than RMB50 million for the first quarter of 2020. For the full year of 2020, we expect life insurance APE to be no less than RMB1.7 billion, total life insurance GWP to be no less than RMB10 billion, and operating income to be no less than RMB420 million.

“As approved by our board of directors, our regular dividend policy will remain unchanged. Based on our expectation on operating income for 2020, annual dividend for 2020 will be US$1.0 per ADS, payable in four quarterly installments, with US$0.25 per ADS for each quarter”

Cash Spent on Share Repurchase and Dividendsin 2019

In 2019, the Company spent a total of RMB484.0 million (US$69.5 million) on share repurchases and RMB435.1 million (US$62.5 million) on dividend distribution.

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Financial Results for the Fourth Quarter of 2019

Totalnet revenues were RMB1,012.6 million (US$145.4 million) for the fourth quarter of 2019, representing an increase of 16.1% from RMB871.9 million for the corresponding period in 2018.

●	Net revenues for the life insurance business were RMB866.9 million (US$124.5 million)<br> for the fourth quarter of 2019, representing an increase of 17.9% from RMB735.0 million<br> for the corresponding period in 2018. The increase was mainly driven by (i) a 35.8% year-over-year<br> growth in renewal commissions to RMB194.4 million and (ii) a 13.5% year-over-year growth<br> in first year commissions to RMB672.5 million. Revenues generated from our life insurance<br> business accounted for 85.6% of our total net revenues in the fourth quarter of 2019.
●	Net revenues for the P&C insurance business were RMB29.3 million (US$4.2 million)<br> for the fourth quarter of 2019, representing a decrease of 25.4% from RMB39.4 million<br> for the corresponding period in 2018. Revenues for the P&C insurance business in<br> the fourth quarter of 2019 primarily consisted of commissions generated from Baowang<br> (www.baoxian.com). The decrease was mainly due to the cessation by certain insurance<br> companies in underwriting several popular insurance products on Baowang and the decline<br> in platform fees derived from our auto insurance business. Revenues generated from the<br> P&C insurance business accounted for 2.9% of our total net revenues in the fourth<br> quarter of 2019.
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●	Net revenues for the claims adjusting business were RMB116.4 million (US$16.7 million)<br> for the fourth quarter of 2019, representing an increase of 19.3% from RMB97.6 million<br> for the corresponding period in 2018. The increase was mainly due to the strong growth<br> of our medical insurance-related claims adjusting business. Revenues generated from the<br> claims adjusting business accounted for 11.5% of our total net revenues in the fourth<br> quarter of 2019.
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Totaloperating costs and expenses were RMB898.4 million (US$129.1 million) for the fourth quarter of 2019, representing an increase of 13.9% from RMB788.5 million for the corresponding period in 2018.

●	Commission costs were RMB693.5 million (US$99.6 million) for the fourth quarter of 2019, representing<br> an increase of 16.4% from RMB595.6 million for the corresponding period in 2018.
♦	Costs of the life insurance business were RMB601.3 million (US$86.4 million) for the fourth<br> quarter of 2019, representing an increase of 16.4% from RMB516.7 million for the corresponding<br> period in 2018. The increase was in line with the increase in net revenues generated<br> from our life insurance business. Costs incurred by the life insurance business accounted<br> for 86.7% of our total commission costs in the fourth quarter of 2019.
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♦	Costs of the P&C insurance business were RMB23.2 million (US$3.3 million) for the fourth<br> quarter of 2019, representing an increase of 0.4% from RMB23.1 million for the corresponding<br> period in 2018. The costs of the P&C insurance business mainly represent commission<br> costs we incurred for operating Baowang (www.baoxian.com). Costs as a percentage of net<br> revenues for the P&C insurance business was 79.0% for the fourth quarter of 2019<br> as compared to 58.7% for the corresponding period in 2018. The increase was mainly due<br> to the higher percentage of lower-margin products sold on Baowang and the decrease in<br> technology service fees based on the volume of insurance premiums transacted through<br> CNpad in 2019. Costs incurred by the P&C insurance business accounted for 3.3% of<br> our total commission costs in the fourth quarter of 2019.
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♦	Costs of claims adjusting business were RMB69.0 million (US$9.9 million) for the fourth<br> quarter of 2019, representing an increase of 23.7% from RMB55.8 million for the corresponding<br> period in 2018. The increase was in line with the increase in net revenues generated<br> from our claims adjusting business. Costs incurred by the claims adjusting business accounted<br> for 10.0% of our total commission costs in the fourth quarter of 2019.
●	Selling expenses were RMB77.1 million (US$11.1 million) for the fourth quarter of 2019, representing<br> an increase of 7.8% from RMB71.5 million for the corresponding period in 2018. Adjusted<br> selling expenses excluding share-based compensation expenses were RMB79.3 million (US$11.4<br> million) for the fourth quarter of 2019, representing an increase of 10.9% from RMB71.5<br> million for the corresponding period of 2018. The increase was in line with sales growth.
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●	General and administrative expenses were RMB127.8 million (US$18.4 million) for the fourth<br> quarter of 2019, representing an increase of 5.2% from RMB121.5 million for the corresponding<br> period in 2018. Adjusted general and administrative expenses excluding share-based compensation<br> expenses were RMB128.7 million (US$18.5 million) for the fourth quarter of 2019, representing<br> an increase of 6.0% from RMB121.5 million for the corresponding period of 2018. The increase<br> was in line with sales growth.
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As a result of the preceding factors, we had an operating income of RMB114.1 million (US$16.4 million) for the fourth quarter of 2019, representing an increase of 36.9% from RMB83.4 million for the corresponding period in 2018.

Non-GAAP operating income^2^,which excluded share-based compensation expenses, was RMB111.0 million (US$16.0 million) for the fourth quarter of 2019, representing an increase of 33.2% from RMB83.4 million for the corresponding period in 2018.

Operating margin was 11.3% for the fourth quarter of 2019, as compared to 9.6% for the corresponding period in 2018.

Non-GAAP operating margin^5^ was 11.0% for the fourth quarter of 2019, as compared to 9.6% for the corresponding period in 2018.

Investment income was RMB9.4 million (US$1.3 million) for the fourth quarter of 2019, representing a decrease of 78.1**%** from RMB42.9 million for the corresponding period in 2018. The investment income in the fourth quarter of 2019 consisted of yields from short-term investments in financial products. The decrease in yields from short-term investments in financial products was mainly due to (i) changes in composition of our short-term investment portfolio, with increased allocation to wealth management products issued by banks which offer relatively lower yields as compared to other financial products in the portfolio; (ii) a year-over-year decrease in yields from wealth management products issued by banks; and (iii) a decrease in cash available for investment in short-term investment products due to the share buyback program, declaration of cash dividends and the implementation of the Company’s 521 Plan since the second half of 2018. Our investment income fluctuates from quarter to quarter because investment income is recognized when realized.

^5^	Non-GAAP operating margin is defined as Non-GAAP operating<br>income as a percentage of net revenues.

Page 5 of 19

Interest income was RMB0.2 million (US$34 thousand) for the fourth quarter of 2019, representing a decrease of 75.0% from RMB0.8 million for the corresponding period in 2018. The decrease in interest income for the fourth quarter of 2019 was primarily due to the decrease in cash available for investment and the decrease in bank interest rates in 2019.

Income tax expense was RMB33.8 million (US$4.9 million) for the fourth quarter of 2019, representing a decrease of 40.8% from RMB57.1 million for the corresponding period in 2018. The decrease in income tax expense was mainly due to (i) decrease in profit before tax as a result of the decrease in investment income; and (ii) the payment of larger amount of withholding tax in the fourth quarter of 2018 in connection with dividend distribution. The effective tax rate for the fourth quarter of 2019 was 27.6% as compared to 41.0% for the corresponding period in 2018. The decrease in effective tax rate was primarily due to the payment of a larger amount of withholding tax in the fourth quarter of 2018 in connection with dividend distribution as compared to the corresponding period in 2019.

Share of loss of affiliates was RMB311.4 million (US$44.7 million) for the fourth quarter of 2019, compared with share of income of affiliates of RMB36.0 million for the corresponding period in 2018. The share of loss of affiliates was mainly due to i) the provision of an impairment of RMB322.7 million (US$46.3 million) on investment in CNFinance Holdings Limited (“CNFinance”) in the fourth quarter of 2019, reflecting a write-down to the fair value of the investment as measured by its closing market price on December 31, 2019, and ii) a 65.4% decrease in share of income from CNFinance to RMB12.0 million (US$1.7 million) in the fourth quarter of 2019 as compared to RMB34.7 million for the corresponding period of 2018.

Primarily as a result of the share of loss of affiliates and decrease in investment income, we had net loss of RMB222.7 million (US$32.0 million) for the fourth quarter of 2019, as compared to net income of RMB118.0 million for the corresponding period in 2018.

Net loss attributable to the Company’sshareholders was RMB224.7 million (US$32.3 million) for the fourth quarter of 2019, as compared to net income attributable to the Company’s shareholders of RMB112.6 million for the corresponding period in 2018.

Non-GAAP net income attributable tothe Company’s shareholders^3^, which excluded share-based compensation expenses and impairment on investment inCNFinance, was RMB94.9 million (US$13.6 million) for the fourth quarter of 2019, representing a decrease of 15.7% from RMB112.6 million for the corresponding period in 2018. The decrease was mainly due to the decrease in investment income and share of income from affiliates.

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Net margin was -22.2% for the fourth quarter of 2019 as compared to 12.9% for the corresponding period in 2018.

Non-GAAP net margin^6^ was 9.4% for the fourth quarter of 2019 as compared to 12.9% for the corresponding period in 2018.

Basic and diluted net loss per ADS were RMB4.18 (US$0.60) and RMB4.18 (US$0.60) for the fourth quarter of 2019, respectively, as compared to basic and diluted net income per ADS RMB1.99 and RMB1.99 for the corresponding period in 2018, respectively.

Non-GAAP basic^7^and diluted^4^ net income per ADS were RMB1.77 (US$0.25) and RMB1.77 (US$0.25) for the fourth quarter of 2019, respectively, representing decreases of 11.1% and 11.1% from RMB1.99 and RMB1.99 for the corresponding period in 2018, respectively.

Financial Results for Year 2019

Total net revenueswere RMB3,706.0 million (US$532.3 million) for 2019, representing an increase of 6.8% from RMB3,471.3 million for 2018.

●	Net revenues for the life insurance business were RMB3,193.6 million (US$458.7 million)<br> for 2019, representing an increase of 11.2% from RMB2,870.8 million in 2018. The increase<br> was mainly driven by (i) a 3.1% year-over-year growth in first year commissions to RMB2,390.8<br> million and (ii) a 45.4% year-over-year growth in renewal commissions to RMB802.8 million.<br> Revenues generated from our life insurance business accounted for 86.2% of our total<br> net revenues in 2019.
●	Net revenues for the P&C insurance business were RMB141.8 million (US$20.4 million)<br> for 2019, representing a decrease of 48.1% from RMB273.1 million in 2018. The decrease<br> was primarily due to (i) the decline of sales on Baowang (www.baoxian.com) mainly resulting<br> from the decision by certain insurance companies to cease underwriting certain popular<br> insurance products and (ii) the decline in platform fees received for the auto insurance<br> business. Revenues for the P&C insurance business were mainly derived from commissions<br> generated from Baowang and the technology service fees we charged based on the volume<br> of insurance premiums transacted through CNpad. Revenue generated from our P&C insurance<br> business accounted for 3.8% of our total net revenue in 2019.
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●	Net revenues for the claims adjusting business were RMB370.6 million (US$53.2 million)<br> for 2019, representing an increase of 13.2% from RMB327.4 million in 2018. Revenues generated<br> from the claims adjusting business accounted for 10.0% of<br> our total net revenues in 2019.
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^6^	Non-GAAP net margin is defined as non-GAAP net income attributable<br>to the Company’s shareholders as a percentage of net revenues.
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^7^	Non-GAAP basic net income per ADS is defined as non-GAAP<br>net income attributable to the Company’s shareholders divided by total weighted average number of ADSs of the Company outstanding<br>during the period.
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Total operating costsand expenses were RMB3,236.6 million (US$464.9 million) for 2019, representing an increase of 6.3% from RMB3,045.5 million in 2018.

●	Commission costs were RMB2,483.4 million (US$356.7 million) for 2019, representing an increase<br> of 5.9% from RMB2,346.0 million in 2018. The increase in commission cost was largely<br> in line with revenue growth.
♦	Costs of the life insurance business were RMB2,166.1 million (US$311.1 million) for 2019,<br> representing an increase of 11.5% from RMB1,943.1 million in 2018. The increase was in<br> line with the increase in net revenues generated from our life insurance business. Costs<br> incurred by the life insurance business accounted for 87.2% of our total commission costs<br> in 2019.
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♦	Costs of the P&C insurance business were RMB97.8 million (US$14.1 million) for 2019,<br> representing a decrease of 53.2% from RMB208.8 million in 2018. The decrease was in line<br> with the decrease in revenue. Costs incurred by the P&C insurance business accounted<br> for 3.9% of our total commission costs in 2019.
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♦	Costs of claims adjusting business were RMB219.5 million (US$31.5 million) for 2019, representing<br> an increase of 13.0% from RMB194.2 million in 2018. Costs incurred by the claims adjusting<br> business accounted for 8.9% of our total commission costs in 2019.
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●	Selling expenses were RMB278.1 million (US$39.9 million) for 2019, representing an increase<br> of 20.3% from RMB231.1 million in 2018. The increase was primarily due to an increase<br> in the number of sales outlets in 2019. Adjusted selling expenses excluding share-based<br> compensation expenses were RMB277.8 million (US$39.9 million) for 2019, representing<br> an increase of 20.2% from RMB231.1 million in 2018.
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●	General and administrative expenses were RMB475.1 million (US$68.2 million) for 2019, representing<br> an increase of 1.4% from RMB468.4 million in 2018. Adjusted general and administrative<br> expenses excluding share-based compensation expenses were RMB475.0 million (US$68.2 million)<br> for 2019, representing an increase of 1.4% from RMB468.4 million for 2018.
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As a result of the preceding factors, we had an operating income of RMB469.4 million (US$67.4 million) for 2019, representing an increase of 10.2% from RMB425.7 million in 2018.

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Non-GAAP operatingincome^2^, which excluded share-based compensation expenses, was RMB469.8 million (US$67.5 million) for 2019, representing an increase of 10.3% from RMB425.7 million in 2018.

Operating margin was 12.7% for 2019, as compared to 12.3% in 2018.

Non-GAAP operating margin^5^ was 12.7% for 2019, as compared to 12.3% in 2018.

Investment income was RMB79.1 million (US$11.4 million) for 2019, representing a decrease of 59.5**%** from RMB195.5 million in 2018. Our investment income in 2019 primarily consisted of yields from short-term investments in financial products. The decrease in yields from short-term investments in financial products was mainly due to (i) change in composition of our short-term investment portfolio, with increased allocation to wealth management products issued by banks which offer relatively lower yields as compared to other financial products in the portfolio; (ii) a year-over-year decrease in yields from wealth management products issued by banks; and (iii) a decrease in cash available for investment in short-term investment products due to the share buyback program, declaration of cash dividends and the implementation of the Company’s 521 Plan since the second half of 2018.

Interest income was RMB2.8 million (US$0.4 million) for 2019, representing a decrease of 91.8% from RMB34.2 million in 2018, primarily due to (i) the settlement of certain one-year term interest-bearing receivables in August 2018; (ii) the decrease in cash available for investment; and (iii) the decrease in bank interest rates in 2019.

Income tax expense was RMB143.8 million (US$20.7 million) for 2019, representing a decrease of 36.0% from RMB224.6 million in 2018. The effective tax rate for 2019 was 25.6% compared with 33.7% in 2018. The decrease in effective tax rate was primarily due to i) the start of a tax holiday from the fourth quarter of 2018 enjoyed by Fanhua Lianxing Insurance Sales Service Co., Ltd., our wholly-owned subsidiary which is the holding company of our life insurance operation; and ii) the decrease in withholding tax paid in connection with dividend distribution in 2019.

Share of loss of affiliates was RMB224.6 million (US$32.3 million) for 2019, as compared to share of income of affiliates of RMB174.5 million in 2018. The share of loss of affiliates represent share of loss from CNFinance in which we own 18.5% of the equity interest. The share of loss from CNFinance was due to a RMB322.7 million (US$46.3 million) impairment on investment in CNFinance, to reflect a write-down to the fair value of the investment as measured by the closing market price of CNFinance on December 31, 2019, offsetting the share of income of RMB98.7 million (US$14.2 million) from CNFinance in 2019.

Net income was RMB192.6 million (US$27.7 million) for 2019, representing a decrease of 68.8% from RMB617.1 million in 2018. The decrease was primarily due to the decline in investment income and the impairment on investment in CNFinance.

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Net income attributable to the Company’sshareholders was RMB188.9 million (US$27.1 million) for 2019, representing a decrease of 69.0% from RMB609.9 million in 2018. The decrease was primarily due to the decline in investment income and the impairment on investment in CNFinance.

Non-GAAP net income attributable tothe Company’s shareholders^3^, which excluded share-based compensation expenses and impairment on investment inCNFinance, was RMB512.0 million (US$73.5 million) for 2019, representing a decrease of 16.1% from RMB609.9 million in 2018. The decrease was mainly due to the decrease in investment income and share of income from an affiliate.

Net margin was 5.1% for 2019 as compared to 17.6% in 2018.

Non-GAAP net margin^6^ was 13.8% for 2019 as compared to 17.6% in 2018.

Basicand diluted net income per ADS were RMB3.46 (US$0.50) and RMB3.46 (US$0.50) for 2019, respectively, representing decreases of 64.8% and 64.8% from RMB9.84 and RMB9.83 in 2018, respectively.

Non-GAAP basic^7^and diluted^4^ net income per ADS were RMB9.37 (US$1.35) and RMB9.37 (US$1.35) for 2019, respectively, representing decreases of 4.8% and 4.7% from RMB9.84 and RMB9.83 in 2018, respectively.

As of December 31, 2019, the Company had RMB1,782.0 million (US$256.0 million) in cash, cash equivalents and short-term investments.

KeyOperational Metrics for Fanhua’s Online Initiatives in 2019:

●	Lan Zhanggui - Our one-stop insurance service platform that integrates the key functions of both the CNpad Auto Insurance and CNpad Life Insurance Apps.
Ø	The number of registered users of Lan Zhanggui was 1.1 million as of December 31, 2019,<br> representing an increase of 37.5% from 807,858 as of December 31, 2018;
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Ø	The number of active users of Lan Zhanggui^8^ was 152,029 in 2019, as compared<br> to 150,761 in 2018. The number of active users of Lan Zhanggui who have sold at least<br> one life insurance policy was 131,326 in 2019, as compared to 150,761 in 2018;
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Ø	Insurance premiums generated through Lan Zhanggui were RMB3,205.5 million (US$460.4 million)<br> in 2019, consisting of life insurance premiums of RMB3,110.7 million (US$446.8 million)<br> and non-life insurance premiums of RMB94.8 million (US$13.6 million). Insurance premiums<br> generated through Lan Zhanggui were RMB2,496.4 million in 2018, consisting of life insurance<br> premiums of RMB2,333.7 million and non-life insurance premiums of RMB162.7 million.
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^8^	Active users of Lan Zhanggui included users who sold at<br>least one insurance policy through Lan Zhanggui (through either its mobile application or WeChat public account) during the specified<br>period.
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●	CNpad Auto Insurance Mobile Application (“CNpad Auto Insurance App”) - Our proprietary mobile sales support system for auto insurance.
Ø	CNpad Auto Insurance App had been downloaded and activated 625,342 times as of December<br> 31, 2019, representing an increase of 16.3% from 537,588 times as of December 31, 2018;
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Ø	The number of active users of CNpad Auto Insurance App^9^ was 87,844 in 2019,<br> representing a decrease of 32.4% from 129,871 in 2018;
---	---
Ø	Insurance premiums generated through CNpad Auto Insurance App were RMB1.5 billion (US$211.7<br> million) in 2019, representing a decrease of 31.8% from RMB2.2 billion in 2018.
---	---
●	eHuzhu - Our online non-profit mutual aid platform:
---	---
Ø	The number of paying members was 3.4 million as of December 31, 2019, as compared to<br> 3.3 million as of December 31, 2018.
---	---
●	Baowang (www.baoxian.com) - Our online insurance platform:
---	---
Ø	The number of registered customer accounts was 2.7 million as of December 31, 2019, representing<br> an increase of 22.7% from approximately 2.2 million as of December 31, 2018;
---	---
Ø	The number of active customer accounts^10^ was 341,657 in 2019, representing<br> an increase of 8.5% from 315,000 in 2018;
---	---
Ø	Insurance premiums generated through Baowang (www.baoxian.com) was RMB343.9 million (US$49.4<br> million) in 2019, representing a decrease of 73.5% from RMB1.3 billion in 2018.
---	---

RecentDevelopments

●	As<br> of December 31, 2019, Fanhua had 670,104 sales agents and 1,627 professional claims adjustors,<br> as compared to 807,858 sales agents and 1,246 professional claims adjustors as<br> of December 31, 2018. The number of performing agents^11^was 394,327 in 2019, among which approximately 131,326 were performing<br> agents who have sold life insurance products. As of December 31, 2019, Fanhua’s distribution<br> network consisted of 758 sales outlets in 22 provinces and 159 services outlets in 31<br> provinces, as compared to 682 sales outlets in 21 provinces and 115 services outlets<br> in 29 provinces as of December 31, 2018.
^9^	Active users of CNpad Auto Insurance App included users<br>who made at least one purchase of auto insurance policy through CNpad Auto Insurance App (through either its mobile application<br>or WeChat public account) during the specified period.
---	---
^10^	Active customer accounts of Baowang are defined as customer<br>accounts that made at least one purchase directly through www.baoxian.com, its mobile application, or WeChat public account during<br>the specified period.
---	---
^11^	Performing<br>agents are defined as agents who have sold at least one insurance policy during the specified period.
---	---

Page 11 of 19

Business Outlook

Fanhua expects its operating income to be no less than RMB50.0 million for the first quarter of 2020. This forecast reflects Fanhua’s current view, which is subject to change.

Conference Call

The Company will host a conference call to discuss its fourth quarter and fiscal year 2019 financial results as per the following details.

Time: 9:00 p.m. Eastern Daylight Time on March 18, 2019 or 9:00 a.m. Beijing/Hong Kong Time on March 19, 2019

The toll free dial-in numbers:

United States	1-866-519-4004
United Kingdom	0808-234-6646
France	0800-912-761
Germany	0800-182-0671
Australia	1-300-717-205
Canada	1-866-386-1016
Hong Kong, China	800-906-601
Japan	0120-925-376
South Korea	080-850-0474

The toll dial-in numbers:

China (Mainland)	400-620-8038
Hong Kong, China & Other Areas	+852 30186771

Conference ID #:5064948

Additionally, a live and archived web cast of this call will be available at: http://ir.fanhuaholdings.com/events-and-presentations

About Fanhua Inc.

Fanhua Inc. is a leading independent financial services provider. Through our online platforms and offline sales and service network, we offer a wide variety of financial products and services to individuals, including life and property and casualty insurance products. We also provide insurance claims adjusting services, such as damage assessments, surveys, authentications and loss estimations, as well as value-added services, such as emergency vehicle roadside assistance.

Our online platforms include: (1) Lan Zhanggui, an all-in-one platform which allows our agents to access and purchase a wide variety of insurance products, including life insurance, auto insurance, accident insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (2) CNpad, a mobile sales support application for auto insurance; (3) Baowang (www.baoxian.com), an online entry portal for comparing and purchasing health, accident, travel and homeowner insurance products and (4) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.

Page 12 of 19

As of December 31, 2019, our distribution and service network consisted of 758 sales outlets covering 22 provinces and 159 service outlets covering 31 provinces.

For more information about Fanhua Inc., please visit http://ir.fanhuaholdings.com/.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Fanhua and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract and retain productive agents, especially entrepreneurial 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, quarterly variations in its operating results caused by factors beyond its control, macroeconomic conditions in China and future development of COVID-19 epidemic and their potential impact on the sales of insurance products. All information provided in this press release is as of the date hereof, and Fanhua undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Fanhua is included in Fanhua’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

About Non-GAAP Financial Measures

In addition to the Company’s consolidated financial results under GAAP, the Company also provides non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to the Company’s shareholders, non-GAAP net margin and non-GAAP basic and diluted net income per ADS, all of which are non-GAAP financial measures. Non-GAAP operating income is defined as operating income before share-based compensation expenses which are solely associated with the Company’s 521 Plan. Non-GAAP operating margin is defined as non-GAAP operating income as a percentage of net revenues. Non-GAAP net income attributable to the Company’s shareholders is defined as net income attributable to the Company’s shareholders before share-based compensation expenses which are solely associated with the Company’s 521 Plan and impairment on investment in CNFinance. Non-GAAP net margin is defined as non-GAAP net income attributable to the Company’s shareholders^3^ as a percentage of net revenues. Non-GAAP basic net income per ADS is defined as non-GAAP net income attributable to the Company’s shareholders divided by total weighted average number of ADSs of the Company outstanding during the period. Non-GAAP diluted net income per ADS is defined as non-GAAP net income attributable to the Company’s shareholders divided by total weighted average number of diluted ADSs of the Company outstanding during the period. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. One limitation of using these non-GAAP financial measures is that such measures exclude items that were significant in the fourth quarter and full year of 2019, of which share-based compensation expenses have been, and will continue to be, significant recurring factors in our business.

In light of these limitations, the presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. We encourage investors and other interested persons to review our financial information in its entirety and not rely on a single financial measure. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” set forth at the end of this release.

Page 13 of 19

FANHUAINC.Unaudited Condensed Consolidated Balance Sheets(In thousands)**

	As of December 31,			As of December 31,			As of December 31,
	2018			2019			2019
	RMB			RMB			US
ASSETS:
Current assets:
Cash and cash equivalents		772,823			169,653
Restricted cash		75,343			95,952
Short term investments		1,554,060			1,612,351
Accounts receivable, net		508,474			682,171
Insurance premium receivables		5,267			5,067
Other receivables		86,150			61,570
Other current assets		58,990			54,987
Total current assets		3,061,107			2,681,751
Non-current assets:
Property, plant, and equipment, net		37,934			40,806
Goodwill and intangible assets, net		111,133			110,191
Deferred tax assets		9,320			7,327
Investment in affiliates		587,517			363,414
Other non-current assets		59,600			46,917
Right of use assets^12^		—			190,437
Total non-current assets		805,504			759,092
Total assets		3,866,611			3,440,843
Current liabilities:
Accounts payable		332,685			382,882
Insurance premium payables		15,248			7,901
Other payables and accrued expenses		254,824			220,290
Accrued payroll		97,637			101,664
Income tax payable		205,189			155,251
Current operating lease liability		—			79,986
Total current liabilities		905,583			947,974
Non-current liabilities:
Refundable share rights deposits		138,328			266,901
Other tax liabilities		70,350			70,350
Deferred tax liabilities		5,624			7,898
Non-current operating lease liability		—			103,252
Total non-current liabilities		214,302			448,401
Total liabilities		1,119,885			1,396,375
Ordinary shares		9,583			9,235
Treasury stock		(1,156	)		(1,146	)		)
Additional paid-in capital		437,176			393
Statutory reserves		480,881			508,739
Retained earnings		1,799,989			1,479,494
Accumulated other comprehensive loss		(93,290	)		(65,429	)		)
Total shareholders’ equity		2,633,183			1,931,286
Non-controlling interests		113,543			113,182
Total equity		2,746,726			2,044,468
Total liabilities and equity		3,866,611			3,440,843

All values are in US Dollars.

^12^

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and associated ASUs related to Topic 842, which requires organizations to recognize lease assets and lease liabilities on the balance sheet for the rights and obligations created by those leases. On January 1, 2019, the Company adopted Topic 842, using the modified retrospective transition approach, applying the new standard to leases existing at the date of initial adoption, and prior periods were not restated. In addition, the Company elected to apply the package of practical expedients permitted under the transition guidance which does not require reassessment of prior conclusions, lease classification and initial direct lease costs. Adoption of the new standard resulted in the recording of lease assets and liabilities of RMB182 million and RMB181 million, respectively on January 1, 2019. The adoption of the new guidance did not have a material impact on the Company’s consolidated statements of income and consolidated statements of cash flows.

Page 14 of 19

FANHUAINC.

UnauditedCondensed Consolidated Statements of Income and Comprehensive Income

(In thousands, except for shares and per share data)

	For The Three Months Ended								For The Twelve Months Ended
	December 31,								December 31,
	2018			2019			2019		2018			2019			2019
	RMB			RMB			US		RMB			RMB			US
Net revenues:
Agency		774,303			896,209					3,143,873			3,335,397
Life insurance business		734,988			866,879					2,870,776			3,193,625
P&C insurance business		39,315			29,330					273,097			141,772
Claims adjusting		97,633			116,370					327,390			370,606
Total net revenues		871,936			1,012,579					3,471,263			3,706,003
Operating costs and expenses:
Agency		(539,719	)		(624,496	)		)		(2,151,856	)		(2,263,952	)		)
Life insurance business		(516,657	)		(601,311	)		)		(1,943,053	)		(2,166,126	)		)
P&C insurance business		(23,062	)		(23,185	)		)		(208,803	)		(97,826	)		)
Claims adjusting		(55,840	)		(69,035	)		)		(194,159	)		(219,496	)		)
Total operating costs		(595,559	)		(693,531	)		)		(2,346,015	)		(2,483,448	)		)
Selling expenses (including share-based compensation expenses of RMB2,205 and RMB(281) in the three months and twelve months ended December 31, 2019, respectively, and nil and nil in the three months and twelve months ended December 31, 2018)		(71,519	)		(77,097	)		)		(231,075	)		(278,085	)		)
General and administrative expenses (including share-based compensation of RMB882 and RMB(113) in the three months and twelve months ended December 31, 2019, respectively, and nil and nil in the three months and twelve months ended December 31, 2018)		(121,466	)		(127,821	)		)		(468,430	)		(475,107	)		)
Total operating costs and expenses		(788,544	)	****	(898,449	)		)	****	(3,045,520	)	****	(3,236,640	)		)
Income from operations		83,392			114,130					425,743			469,363
Other income, net:
Investment income		42,946			9,386					195,456			79,070
Interest income		821			238					34,207			2,828
Others, net		11,881			(1,202	)		)		11,807			9,664
Income before income taxes and income of affiliates		139,040			122,552					667,213			560,925
Income tax expense		(57,075	)		(33,847	)		)		(224,586	)		(143,816	)		)
Share of income and impairment of affiliates, net		36,047			(311,394	)		)		174,468			(224,555	)		)
Net income (loss)		118,012			(222,689	)		)		617,095			192,554
less: net income<br> attributable to noncontrolling interests		5,405			1,988					7,180			3,622
Net income (loss) attributable to the Company’s shareholders		112,607			(224,677	)		)		609,915			188,932
Net income per share:
Basic		0.10			(0.21	)		)		0.49			0.17
Diluted		0.10			(0.21	)		)		0.49			0.17
Net income per ADS:
Basic		1.99			(4.18	)		)		9.84			3.46
Diluted		1.99			(4.18	)		)		9.83			3.46
Shares used in calculating net income per share:
Basic		1,131,722,922			1,073,891,784					1,239,264,464			1,092,601,338
Diluted		1,132,884,871			1,074,291,474					1,240,854,034			1,093,229,436
Net income (loss)		118,012			(222,689	)		)		617,095			192,554
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments		7,288			4,157					(10,194	)		10,178
Share of other comprehensive gain (loss) of affiliates		4,629			(819	)		)		(1,763	)		451
Unrealized net gains on available-for-sale investments		—			13,267					—			17,231
Comprehensive income (loss)		129,929			(206,084	)		)		605,138			220,414
Less: Comprehensive income<br> attributable to the noncontrolling interests		5,405			1,988					7,180			3,622
Comprehensive income (loss) attributable to the Company’s shareholders		124,524			(208,072	)		)		597,958			216,792

All values are in US Dollars.

Page 15 of 19

FANHUAINC.

UnauditedCondensed Consolidated Statements of Cash Flow

(Inthousands)

	For The Three Months Ended								For The Twelve Months Ended
	December 31,								December 31,
	2018			2019			2019		2018			2019			2019
	RMB			RMB			US		RMB			RMB			US
OPERATING ACTIVITIES
Net income (loss)		118,012			(222,689	)		)		617,095			192,554
Adjustments to reconcile net income to net cash generated from operating activities:
Investment income		(31,969	)		(8,961	)		)		(156,047	)		(65,616	)		)
Share of income and impairment of affiliates, net		(36,047	)		311,394					(174,468	)		224,555
Other non-cash adjustments		(628	)		8,383					14,693			106,328
Changes in operating assets and liabilities:		120,318			36,587					222,554			(279,497	)		)
Net cash generated from operating activities		169,686			124,714					523,827			178,324
Purchase of short term investments		(1,525,581	)		(1,549,800	)		)		(11,380,198	)		(7,498,701	)		)
Proceeds from disposal of short term investments		1,684,050			1,560,651					12,488,495			7,523,257
Others		25,648			(5,548	)		)		459,288			(12,597	)		)
Net cash generated from investing activities		184,117			5,303					1,567,585			11,959
Dividends paid		(29,716	)		(113,252	)		)		(326,725	)		(435,072	)		)
Repurchase of shares		(358,046	)		—					(1,569,831	)		(484,016	)		)
Others		153,617			—					232,050			126,982
Net cash used in financing activities		(234,145	)		(113,252	)		)		(1,664,506	)		(792,106	)		)
Net increase (decrease) in cash, cash equivalents and restricted cash		119,658			16,765					426,906			(601,823	)		)
Cash, cash equivalents and restricted cash at beginning of period		741,608			252,033					439,033			848,166
Effect of exchange rate changes on cash and cash equivalents		(13,100	)		(3,193	)		)		(17,773	)		19,262
Cash, cash equivalents and restricted cash at end of period		848,166			265,605					848,166			265,605

All values are in US Dollars.

Page 16 of 19

FANHUAINC.

Reconciliationsof GAAP Financial Measures to Non-GAAP Financial Measures

(InRMB in thousands, except shares and per share data)

	For The Three Months Ended December 31
	2018			2019
	GAAP			GAAP			Share-based<br><br> compensation<br><br> expenses		Impairment<br><br> on investment<br><br> in affiliates			Non-GAAP			Change%
Net revenues		871,936			1,012,579			—		—			1,012,579			16.1
Selling expenses		(71,519	)		(77,097	)		2,205		—			(79,302	)		10.9
General and administrative expenses		(121,466	)		(127,821	)		882		—			(128,703	)		6.0
Income from operations		83,392			114,130			3,087		—			111,043			33.2
Operating margin		9.6	%		11.3	%		—		—			11.0	%		14.6
Share of income and impairment of affiliates, net		36,047			(311,394	)		—		(322,654	)		11,260			(68.8	)
Net income (loss) attributable to the Company’s shareholders		112,607			(224,677	)		3,087		(322,654	)		94,890			(15.7	)
Net margin		12.9	%		(22.2	%)		—		—			9.4	%		(27.1	)
Net income per share:
Basic		0.10			(0.21	)		—		—			0.09			(10.0	)
Diluted		0.10			(0.21	)		—		—			0.09			(10.0	)
Net income per ADS
Basic		1.99			(4.18	)		—		—			1.77			(11.1	)
Diluted		1.99			(4.18	)		—		—			1.77			(11.1	)
Shares used in calculating net income per share:
Basic		1,131,722,922			1,073,891,784			—		—			1,073,891,784			—
Diluted		1,132,884,871			1,074,291,474			—		—			1,074,291,474			—

Page 17 of 19

	For The Twelve Months Ended December 31
	2018			2019
	GAAP			GAAP			Share-based<br><br> compensation<br><br> expenses			Impairment<br><br> on investment<br><br> in affiliates		Non-GAAP			Change%
Net revenues		3,471,263			3,706,003			—			—		3,706,003			6.8
Selling expenses		(231,075	)		(278,085	)		(281	)		—		(277,804	)		20.2
General and administrative expenses		(468,430	)		(475,107	)		(113	)		—		(474,994	)		1.4
Income from operations		425,743			469,363			(394	)		—		469,757			10.3
Operating margin		12.3	%		12.7	%							12.7	%		3.3
Share of income and impairment of affiliates, net		174,468			(224,555	)		—			(322, 654)		98,099			(43.8	)
Net income (loss) attributable to the Company’s shareholders		609,915			188,932			(394	)		(322,<br> 654)		511,980			(16.1	)
Net margin		17.6	%		5.1	%					—		13.8	%		(21.6	)
Net income per share:
Basic		0.49			0.17			—			—		0. 47			(4.1	)
Diluted		0.49			0.17			—			—		0. 47			(4.1	)
Net income per ADS								—
Basic		9.84			3.46			—			—		9.37			(4.8	)
Diluted		9.83			3.46			—			—		9.37			(4.7	)
Shares used in calculating net income per share:
Basic		1,239,264,464			1,092,601,338			—			—		1,092,601,338			—
Diluted		1,240,854,034			1,093,229,436			—			—		1,093,229,436			—

Page 18 of 19

Formore information, please contact:

Oasis Qiu

Investor Relations Manager

Tel: +86 (20) 8388-3191

Email: qiusr@fanhuaholdings.com

***Source:***Fanhua Inc.

Page 19 of 19

Exhibit 99.2

Fanhua Announces Quarterly Cash Dividendof US$0.30 per ADS for the Fourth Quarter of 2019

GUANGZHOU, China, March 18, 2020 (GLOBE NEWSWIRE) – The board of directors of Fanhua Inc. (“Fanhua” or “the Company”) (Nasdaq: FANH), a leading independent financial services provider in China, today announced that its Board of Directors (the “Board”) has declared a quarterly dividend of US$0.015 per ordinary share, or US$0.30 per ADS for the fourth quarter of 2019. The dividend is payable on or around April 16, 2020 to shareholders of record on April 2, 2020.

About Fanhua Inc.

Our online platforms include: (1) Lan Zhanggui, an all-in-one platform which allows our agents to access and purchase a wide variety of insurance products, including life insurance, auto insurance, accident insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (2) CNpad, a mobile sales support application for auto insurance; (3) Baowang (www.bBaoxian.com), an online entry portal for comparing and purchasing health, accident, travel and homeowner insurance products and (4) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.

As of December 31, 2019, our distribution and service network is consisted of 758 sales outlets covering 22 provinces and 159 service outlets covering 31 provinces.

For more information about Fanhua Inc., please visit http://ir.fanhuaholdings.com/.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Fanhua and the industry. Potential risks and uncertainties include, but are not limited to, Fanhua’s ability to attract and retain key personnel and 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, quarterly variations in its operating results caused by factors beyond its control and macroeconomic conditions in China and their potential impact on the sales of insurance products. All information provided in this press release is as of the date hereof, and Fanhua undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Fanhua is included in Fanhua’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

CONTACT: Investor Relations

Tel: (8620) 83883191

Email: qiusr@fanhuaholdings.com

Exhibit 99.3

Fanhua Announces Annual Cash Dividendof US$1.0 per ADS for 2020

GUANGZHOU, China, March 18, 2020, Eastern Time, (GLOBE NEWSWIRE) – The board of directors of Fanhua Inc. (“Fanhua” or “the Company”) (Nasdaq: FANH), a leading independent financial services provider in China, today announced that its Board of Directors (the “Board”) has declared an annual dividend of US$0.05 per ordinary share, or US$1.0 per American Depository Shares (“ADS”) in 2020, payable in four quarterly installments of US$0.25 per ADS, or US$0.0125 per ordinary share, payable in each of the next four quarters.

About Fanhua Inc.

Our online platforms include: (1) Lan Zhanggui, an all-in-one platform which allows our agents to access and purchase a wide variety of insurance products, including life insurance, auto insurance, accident insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (2) CNpad, a mobile sales support application; (3) Baowang (www.bBaoxian.com), an online entry portal for comparing and purchasing health, accident, travel and homeowner insurance products and (4) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.

As of December 31, 2019, our distribution and service network is consisted of 758 sales outlets covering 22 provinces and 159 service outlets covering 31 provinces.

For more information about Fanhua Inc., please visit http://ir.fanhuaholdings.com/.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Fanhua and the industry. Potential risks and uncertainties include, but are not limited to, Fanhua’s ability to attract and retain key personnel and 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, quarterly variations in its operating results caused by factors beyond its control and macroeconomic conditions in China and their potential impact on the sales of insurance products. All information provided in this press release is as of the date hereof, and Fanhua undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Fanhua is included in Fanhua’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

CONTACT: Investor Relations

Tel: (8620) 83883191

Email: qiusr@fanhuaholdings.com