Thank you for standing-by for CNinsure’s Third Quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. All lines have been placed on mute to prevent background noise. After the management’s prepared remarks, there’ll be a question-and-answer session. Please follow the instructions given at the time if you’d like to ask a question. For your information this conference call is now being broadcasted live over the Internet. Webcast replay will be available within three hours after the conference is finished. Please visit CNinsure’s IR Web site at ir.cninsure.net under the Events & Webcasts section. Today’s conference call is being recorded, if you have any objections, you may disconnect at this time. I’d now like to turn the meeting over to your host for today’s conference, Ms. Oasis Qiu, CNinsure’s Investor Relation Officer. Thank you, please go ahead.

Good morning. Welcome to our third quarter 2014 earnings conference call. The earnings results were released earlier today and are available on our IR Web site, as well as on newswire. Before we continue, please note that, the discussion today will contain forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause our actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but not limited to those outlined in our filings with the SEC, including our registration statement on Form 20-F. We do not undertake any obligation to update this forward-looking information except as required under applicable law. Joining us today is our Chief Executive Officer, Mr. Chunlin Wang and Chief Financial Officer, Mr. Peng Ge. They will walk you through our financial and operating performance in the third quarter 2014 and take your questions after the prepared remarks. Now, I would turn the call over to Mr. Wang.

Hello everyone. Thank you for joining us on today’s call. On today’s agenda, I will give you an update on financial highlights for the third quarter 2014 and share with you our O2O strategy development. Our CFO Mr. Peng Ge and I will take your questions after this. As is always an overview on our financial performance in the third quarter, our top-line grew 25.9% year-over-year kicking a record high since the Company started transformation two years ago. The stellar growth which far exceeded our guidance of 15% also outpaced industry growth of 13.4% in terms of insurance premium during the third quarter, partially reflecting the contribution from our O2O strategy. On the expense front, while there was 135.6% year-over-year increase in the operating expenses related to our online and mobile initiatives, the overall expense ratio was 3.1 percentage points down from the third quarter last year and slightly up sequentially, attributable to better expense control after our organizational restructuring last year, and the continued decrease in share-based compensation expenses. Adjusted operating income that excludes expenses incurred by our online and mobile initiatives grew 98.7% from the year ago quarter. And diluted EPS grew by 19.3% year-over-year. Looking at each of our business segments, insurance agency business saw 18.2% year-over-year growth in net revenues, mainly driven by strong growth of our P&C insurance agency business partially offset by the decrease in life insurance agency business. Our P&C insurance agency business recorded 22.4% net revenue growth from the third quarter last year, mainly driven by its 26.9% premium growth, which far exceeded the 15% premium growth in the P&C insurance industry. The robust growth reflected increasing contribution from CNpad application. Net revenues of our life insurance agency business for the third quarter 2014 declined by 7.2% from the year ago quarter,…

Now, our CEO Mr. Wang and CFO Mr. Ge will open the floor for your questions.

[Operator Instructions] Thank you. And your first question comes from the line of Arthur Hall from Hall & Co. Go ahead, please.

At a recent presentation in Hong Kong, you projected some dramatic increases in your online revenues and total revenues of about RMB4 billion in 2017. Also projecting that your operating margin would increase from about 2% this year to about 20% in 2017, that is very dramatic. Obviously the market doesn't believe that or the stock wouldn't sell where it does. Could you explain a little bit more how you can get to get that operating margin and when we'll start seeing that? Thank you.

As we have one of our online and mobile initiatives and we believe that we have much more stronger capability to consolidate the market resources. And we expect that starting from 2015 we will be able to grow over 30% year-over-year in terms of top-line and that means that we will be able to double our revenue within three years, so that means by 2017. And we think that should be an achievable target. And then in terms of the operating margin, we do not give any specific guidance during the strategy day, but we do believe that the operating margin will improve overtime and also the cost ratio the growth -- the pace of the growth of the cost will be much slower than the pace of the growth of our revenue.

So I would expect then you would see some improvement in the operating margin in 2015?

Yes, we expect so.

Thank you. [Operator Instructions] Thank you. And the next question comes from the line of [Joe Lynn] from [Bercham]. Go ahead please.

[Foreign Language]?

The question is related to the increase in investment, in short-term investment. He would like to know what kind of short-term investments are exactly?

The Board has authorized to allocate certain amount of our capital in short-term investments, in investments that has a low risk and relatively better review, the amount is about 1 billion in total, the amount that we have been authorized. And the increase of the short-term investments amounting to 170 million, it’s mainly due to the increase in this kind of short-term investments.

[Foreign Language]?

The short-term investment mainly consists of trust product, collective trust products, the yield is about 10% and these products are issued by trust companies and then the it also contains certain interbank savings products issued by asset management companies and this kind of product generate a return of 7% annualize return 7%.

[Foreign Language]?

Before we made the decision to enlarge in these types of products we have done a thorough survey and an assessment on the risk related to this kind of products. For the trust product -- all this trust product come with guarantee and also collateral and then for the interbank savings these are all mainly cash flow between banks and the risk are pretty low.

[Foreign Language]?

Right, actually -- to clarify actually 39% of the 22,000 users are new agents of CNinsure.

[Foreign Language]?

So far we have -- there were 40,000 CNpad application downloaded and activated and around 40% have been in use, 40% of our agents have been using this CNpad application and Joe Lynn is asking whether we are going to -- is it possible that all of our agents will start using CNpad in the second quarter of next year? Mr. Wang answered that we actually expect to convert -- to move all our auto insurance business from offline to mobile devices by October 30, 2015.

[Foreign Language]?

By the end of next year.

Right now, P&C business contributed 70% of our net revenues and of that 70%, 75% to 80% is auto insurance business. And amount of the auto insurance business around 70% to 80% are retail business. And right now, most of the retail business that we believe will be moved to CNpad will be mostly the retail business.

[Foreign Language]?

So that means about 3 billion insurance premium will be transacted over CNpad application by the end of next year.

What’s the gross margin?

Actually the gross margin for business transacted over CNpad should be basically in line with those transacted offline, but we believe the operating cost, or the gross operating cost will be much slower than revenue growth.

[Foreign Language]?

How much will the net margin improve owning to the contribution from CNpad application? Well as to this question, Mr. Wang thinks that right now, it is difficult for us to quantify. We may have to make a estimate, so an estimate in the fourth quarter and hopefully we can give you an answer then. But we believe that the operating cost ratio do roll through several stages in the initial stage of investment, because we need to invest in the to build out the infrastructure, there was a slight increase in the operating cost, but right now the operating cost ratio is flattish year-over-year right now. And then going forward, we believe that it will go down.

[Foreign Language]?

I am sorry I will translate a question. So the question is why top-line growth was much faster than before in the third quarter, but actually even though we gave the guidance of 15% and this was relatively conservative. In the first half of 2014 our top-line also grew by 20.8% and the growth momentum continued into the third quarter. And we do have a belief that we should be able to grow by over 30% in 2015.

[Operator Instructions] Thank you. The next question comes from the line of George Wong. Go ahead please.

Well first of all we observe that your earnings have been on an improvement track in the first two quarters of this year and for the third quarter the sales growth was also quite remarkable. However this earnings and also top-line growth improvement was badly reflected in your stock price. Since you do have a lot of cash, and given the low price -- low stock price, has management ever talked about doing a share buyback, or any other means to increase shareholder value?

The management remains committed to increasing shareholder value. However, probably in the past two years the management has been focused a lot of energy on bringing a turnaround in our fundamentals. And we actually believe that without a turnaround in our earnings or top-line growth any means to -- any means that anything we do in a capital market will not be sustainable. But right now as we have our online and mobile initiatives has started to up and running and we are back to the growth chart, probably it’s time for us to sit down and think about what options we have to increase the capital of the stock price, improve the stock price and increase shareholder value and there are a lot of options, several options in front of us and we need to consider about it.

Well you have made a lot of effort to develop -- to expand your Internet presence over the past year, and actually you did come up with something. However, it seems that the stock market did not really appreciate the effort. And as the other investors mentioned just now, that the -- your investment in this online and mobile initiatives, for example like the investment in CNpad, will contribute to bring the cost down. However the stock market may not be -- fully understand that. Could you please elaborate a little bit more on the impact of your Internet strategy on CNinsure?

Yes indeed our mobile initiative did help drive our sales growth in the third quarter. However, we still believe that we are at a very initial stage, very early stage of development of the online and mobile initiative. We just rolled out this platform not long ago. So I believe that the achievement is still not enough. The development of our online and mobile initiative is performing much better than we expected, but we still believe that there is still more to come. For example, such as three online initiatives that we have been build out for example, first our CNpad, we believe that by the end of this year, by December the monthly premium contribution from CNpad application will reach 300 million monthly. And then secondly for chetong.net, right now their registered service representative the number of registered service representative is about 9,000 and we believe that -- and this number is a little bit more than the number of claims adjusters of [indiscernible] and in fact the number will increase to 30,000 by the end of next year which is also equal to the number of claims adjusters of [indiscernible] group and within three years we expect the number will increase to 80,000 which is equal to the total number of claims adjustors in the market right now. And then thirdly for the eHuzhu platform, right now we have about 20,000 -- we have over 20,000 paying members. And right now we are working to persuading some institutions to join the platform. And we believe that by -- with that coming, we will be able to achieve a target of over 1 million members within the next several years. And in order to exert more impact on the market, we will first of all expand increase our investments in the marketing of this online and mobile initiative. And then secondly, we will also -- we hope probably we can achieve some strategic partnership with some mainstream, -- with some insurance company, which we believe will help us to consolidate the process more rapidly. We believe that we have several advantages as compared to our peers, first of all, we are the early movers and then secondly, we have done a lot of research in the market and trends. And then thirdly, we have accumulated a large number of the talent including the IT talent and also the operational talent. And then fourthly it’s our brand awareness amongst in the industry.

Congratulations on the good results and also wish you best of luck in the future results and thank you.

Thank you. We have no further questions at this time. I’ll hand back to Ms. Qiu and Mr. Wang for closing remarks.