China Stock Profile – CNinsure Inc.

(CISG)1

Statistics for CISG:

P/E 28.3
Long Term EPS Growth 25%
PEG Ratio 1.13
Net Margin 22%
Average Rating Value 1.83
Average Rating Buy
Average Target Price 17.13
Current Price 18.25
Year to Date Performance 108%
Institutional Ownership 19.04%
Short Interest as % of Float 0.95%

Explanation of Terms

P/E - Price divided by Earnings

Long Term EPS Growth - Long-Term (next 3-5 years) EPS Growth Rate estimated by Wall Street analysts
PEG Ratio – P/E to Growth Ratio. Generally the lower the ratio the more attractive the stock
Net Margin – Net Profit divided by Revenue
Average Rating Value – Based on Ratings given by Wall Street analysts. Generally, the lower the value, the
higher the rating
Average Rating – Based on Ratings given by Wall Street analysts
Average Target Price – Based on Target Price given by Wall Street analysts
Current Price – Current Market Price of stock
Year to Date Performance – Year to Date Performance in Price of stock
Institutional Ownership - % of Shares held by Large Institutions
Short Interest as % of Float – Short Interest in the stock as a % of Equity Float

Chart of CISG

CISG Company Profile

CISG is an independent insurance intermediary company in China that provides insurance brokerage and
agency services, and insurance claims adjusting services, such as assessment, survey, authentication, and
loss estimation to individuals and institutions. The company distributes insurance products underwritten by
1
By H.U.
domestic and foreign insurance companies operating in China. It markets and sells property and casualty
insurance products, including automobile, individual accident, commercial property, homeowner, cargo,
hull, liability, and construction insurance; and life insurance products, such as individual whole life,
individual term life, individual endowment life, individual education annuity, individual health, group life,
and universal insurance. In April 2009, its distribution and service network was comprised of 43 insurance
agencies, 5 insurance brokerages, and 3 claims adjusting firms, with 367 sales and service outlets. The
company was founded in 1998 and is headquartered in Guangzhou, China.

Key Executives of CISG

Mr. Yinan Hu , 44
Co-Founder, Chairman, Chief Exec. Officer and Member of Strategy Committee
Mr. Qiuping Lai , 56
Co-Founder, Pres, Compliance Officer, Exec. Director and Member of Strategy Committee
Mr. Peng Ge , 38
Chief Financial Officer and Principal Accounting Officer
Mr. Fred Jin , 43
Chief Operating Officer and Chief Information Officer
Mr. Chunlin Wang , 40
Head of Property & Casualty Insurance Unit and VP

Major Holders of CISG

TOP INSTITUTIONAL HOLDERS

Holder Shares % Out Value* Reported

MARTIN CURRIE INVESTMENT
1,179,422 2.59 $8,692,340 31-Mar-09
MANAGEMENT LIMITED
Norges Bank Investment Management 1,040,000 2.28 $9,360,000 30-Sep-08
White Elm Capital, LLC 948,800 2.08 $6,992,656 31-Mar-09
FRANKLIN RESOURCES, INC 883,950 1.94 $6,514,711 31-Mar-09
MARTIN CURRIE INC 856,532 1.88 $6,312,640 31-Mar-09
FIL LTD 727,797 1.60 $5,363,863 31-Mar-09
Susquehanna International Group, LLP 583,056 1.28 $4,297,122 31-Mar-09
Philadelphia Financial Management of San
565,483 1.24 $4,167,609 31-Mar-09
Francisco LLC
PRICE (T.ROWE) ASSOCIATES INC 417,000 .91 $3,073,290 31-Mar-09
DiamondBack Capital Management 315,175 .69 $2,322,839 31-Mar-09

TOP MUTUAL FUND HOLDERS

 Holder Shares % Out Value* Reported
FRANKLIN MUTUAL SER FD-MUTUAL
883,950 1.94 $6,514,711 31-Mar-09
FINANCIAL SERVICES FD
Oberweis China Opportunities Fund 312,600 .69 $2,303,862 31-Mar-09
PRICE (T.ROWE) INTERNATIONAL
262,600 .58 $2,001,012 30-Apr-09
DISCOVERY FUND
IVY PACIFIC OPPORTUNITIES FUND 187,631 .41 $1,382,840 31-Mar-09
Powershares Exhg Traded Fd-Powershares
130,958 .29 $997,899 30-Apr-09
Golden Dragon Halter
SATUIT CAPITAL MICRO CAP FUND 92,500 .20 $704,850 30-Apr-09
Fidelity Series Emerging Markets Fund 52,500 .12 $580,125 31-May-09
BRAZOS MICRO CAP PORTFOLIO 38,873 .09 $521,286 30-Jun-09
Fidelity China Fund (CDN) 18,426 .04 $203,607 31-May-09
BRAZOS SMALL CAP PORTFOLIO 12,196 .03 $163,548 30-Jun-09

Analysts’ Estimates

Current Qtr Next Qtr Current Year Next Year

Earnings Estimate
Jun-09 Sep-09 Dec-09 Dec-10
Avg. Estimate 0.19 0.19 0.76 0.96
No. of Analysts 2 2 5 5
Low Estimate 0.17 0.19 0.73 0.88
High Estimate 0.20 0.19 0.78 1.02
Year Ago EPS 0.19 0.17 0.61 0.76

Analysts estimate earnings growth of CISG to be 26.3% next year.

Recent News Headlines for CISG

[June 1] CISG announced the signing of definitive agreements to acquire 100% equity interest in Shenzhen
Hongzhengda Insurance Surveyors & Loss Adjustors Co., Ltd. (Hongzhengda). The transaction is should
close by the end of June 2009, subject upon meeting certain conditions.

Founded in 2002 and based in Shenzhen, Hongzhengda specializes in the provision of claims adjusting
services related to non-automobile property and casualty insurance. It is ranked twelfth among China's top
20 insurance claims adjusting firms by revenue, according to a Report published by China Insurance
Regulatory Commission.

[July 7th] The company announced its revised long-term strategic objective in becoming a first-class
diversified financial services group, and its strategic focus on improving the Company's earnings per share
(EPS) through net income growth, pursuant to resolutions passed by its Board of Directors.

The company’s CEO said in relation to these objectives, “As Chinese people accumulate significant levels
of wealth as a result of China's economic growth, we have seen growing demand for more diversified
financial solutions and huge potential in the consumer financial market. Expansion into the consumer
finance services arena will not only enable us to better meet our customers' needs with access to a wide
range of value-added financial products and services, but also further increase our profitability by
leveraging our existing sales distribution network and operating platform to achieve better economies of
scale and lower operating costs."

CISG Financial Statements

Income Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Total Revenue 123,702 61,441 32,389
Cost of Revenue 64,024 31,883 -

Gross Profit 59,678 29,558 32,389

Operating Expenses
Research Development - - -
Selling General and Administrative 28,928 10,651 25,812
Non Recurring - - -
Others - - -

Total Operating Expenses - - -

Operating Income or Loss 30,750 18,907 6,577

Income from Continuing Operations

Total Other Income/Expenses Net 7,104 2,226 706
Earnings Before Interest And Taxes 37,854 21,132 7,283
Interest Expense 14 3 5
Income Before Tax 37,840 21,129 7,278
Income Tax Expense 9,152 436 (75)
Minority Interest (605) 332 187

Net Income From Continuing Ops 28,103 21,025 7,540

Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -

Net Income 28,103 21,025 7,540

Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares $28,103 $21,025 $7,540

Balance Sheet PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Assets
Current Assets
Cash And Cash Equivalents 222,557 213,542 30,391
Short Term Investments - - -
Net Receivables 51,782 6,772 16,226
Inventory - - -
Other Current Assets 766 178 112

Total Current Assets 275,105 220,492 46,729

Long Term Investments 62 - -
Property Plant and Equipment 10,632 1,528 1,280
Goodwill 5,553 1,257 925
Intangible Assets 7,844 593 587
Accumulated Amortization - - -
Other Assets 62 731 39
Deferred Long Term Asset Charges 706 265 311

Total Assets 299,964 224,866 49,871

Liabilities
Current Liabilities
Accounts Payable 27,881 6,450 9,880
Short/Current Long Term Debt - 14 42
Other Current Liabilities - 848 -

Total Current Liabilities 27,881 7,313 9,922

Long Term Debt - 8 31
Other Liabilities 274 159 -
Deferred Long Term Liability Charges 1,224 51 73
Minority Interest 13,840 2,512 1,802
Negative Goodwill - - -

Total Liabilities 43,219 10,043 11,828

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 1,031 965 667
Retained Earnings 11,794 (12,057) (11,179)
Treasury Stock - - -
Capital Surplus 244,298 222,248 48,579
Other Stockholder Equity (378) 3,668 (24)

Total Stockholder Equity 256,745 214,824 38,043

Net Tangible Assets $243,348 $212,974 $36,531

Cash Flow Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Net Income 28,103 21,025 7,540

Operating Activities, Cash Flows Provided By or Used In

Depreciation 1,390 482 259
Adjustments To Net Income 7,294 358 3,009
Changes In Accounts Receivables (10,211) (561) (3,635)
Changes In Liabilities 11,340 1,703 7
Changes In Inventories - - -
Changes In Other Operating Activities (575) (60) (95)

Total Cash Flow From Operating Activities 37,341 22,947 7,085

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (7,597) (737) (826)
Investments (27,587) 10,798 (879)
Other Cashflows from Investing Activities (2,348) (1,394) 1,388

Total Cash Flows From Investing Activities (37,532) 8,667 (317)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid - (19,194) -
Sale Purchase of Stock 1,555 171,129 123
Net Borrowings 1,314 (508) (1,222)
Other Cash Flows from Financing Activities - 928 817

Total Cash Flows From Financing Activities 2,869 152,356 (282)

Effect Of Exchange Rate Changes (7,719) (2,875) (11)

Change In Cash and Cash Equivalents ($5,041) $181,094 $6,475

Reference

Yahoo Finance
China Analyst