Huize Holding Limited Reports Third Quarter 2024 Unaudited Financial Results

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SHENZHEN, China, Dec. 10, 2024 (GLOBE NEWSWIRE) — Huize Holding Limited, (“Huize”, the “Company” or “we”) (NASDAQ: HUIZ), a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial and Operational Highlights

Record high insurance premiums: Gross written premiums (“GWP”) reached a quarterly record high of RMB2,060.7 million in the third quarter of 2024, compared to RMB1,245.1 million in the same period of 2023. First year premiums (“FYP”) more than doubled year-over-year to RMB1,354.4 million in the third quarter of 2024, driven by strong demand for long-term savings products, our sophisticated product innovation capabilities, and our omnichannel distribution platform.
Increasing contribution from international businesses: Alongside robust domestic demand, revenue contribution from our international businesses surged to 19% in the third quarter of 2024, up 8 percentage points sequentially, driven primarily by our steady growth of the Hong Kong business.

The cumulative number of insurance clients served broke through a significant milestone reaching 10.1 million as of September 30, 2024. Huize cooperated with 123 insurer partners in mainland China and internationally, including 77 life and health insurance companies and 46 property and casualty insurance companies, as of September 30, 2024.
As of September 30, 2024, cash and cash equivalents were RMB242.6 million (US$34.6 million).

Mr. Cunjun Ma, Founder and CEO of Huize, said, “We delivered a very strong set of business results, with total GWP reaching a record quarterly high of over RMB2 billion, and FYP more than doubling to RMB1.4 billion in the third quarter of 2024. This performance primarily reflects our core competencies in quality customer acquisition, product innovation, and AI solution development, allowing us to capitalize on the tremendous demand for long-term savings products amid an evolving regulatory regime in China, alongside our active diversification into international markets.”

“Additionally, we continued to attract high-quality mass affluent customers, as evidenced by our sustainably high average FYP ticket size of approximately RMB 79,000 for savings products, and our 13th– and 25th-month persistency ratio for long-term life and health insurance products, which remained among the highest levels in the industry at above 95%. We also enjoyed substantial efficiency gains thanks to the deployment of self-developed AI solutions across our operations, with our expense-to-revenue ratio improving by 5 percentage points year-over-year to 24%, enabling us to achieve net profit of RMB18.7 million and non-GAAP net profit1 of RMB18.3 million during the quarter.”

“Our overseas expansion, through our international arm, Poni Insurtech, gained stronger momentum, with revenue contribution from our international businesses reaching 19% in the third quarter, up 8 percentage points sequentially. This acceleration largely reflects our success in capturing market share in Hong Kong. Following the acquisition of Global Care, a leading Vietnam-based Insurtech company in September, we have been accelerating recruitment and empowering its distribution partners to accelerate business growth. We plan to enter two additional markets—Singapore and the Philippines—within the next 12 months, gradually expanding our footprint in markets across Southeast Asia with significant potential. We believe these strategic initiatives will further diversify our revenue streams, with a target of international revenue contributions to reach 30% by 2026.”

“Looking ahead, we remain committed to becoming a leading pan-Asian digital insurance distribution platform. While further solidifying our leadership in mainland China, we will replicate and localize our successful home market-proven business model to capitalize on the tremendous untapped market opportunities across Southeast Asia, reinforcing our strategy for sustainable, long-term growth.”

_________________
1 Non-GAAP net profit is a non-GAAP financial measure. For more information on the non-GAAP net profit, please see the section of “Use of Non-GAAP Financial Measure Statement” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

Third Quarter 2024 Financial Results

GWP and operating revenue

GWP facilitated on our platform was RMB2,060.7 million (US$293.6 million) in the third quarter of 2024, an increase of 65.5% from RMB1,245.1 million in the same period of 2023. Within GWP facilitated in the third quarter of 2024, FYP accounted for RMB1,354.4 million (or 65.7% of total GWP), an increase of 110.1% year-over-year. Renewal premiums accounted for RMB706.3 million (or 34.3% of total GWP), an increase of 17.6% year-over-year.

Operating revenue was RMB369.7 million (US$52.7 million) in the third quarter of 2024, an increase of 26.4% from RMB292.4 million in the same period of 2023. The increase was primarily driven by the increase in FYP facilitated.

Operating costs

Operating costs were RMB267.0 million (US$38.0 million) in the third quarter of 2024, an increase of 41.0% from RMB189.3 million in the same period of 2023, primarily due to an increase in channel expenses.

Operating expenses

Selling expenses were RMB43.3 million (US$6.2 million) in the third quarter of 2024, a decrease of 11.9% from RMB49.1 million in the same period of 2023, primarily due to a decrease in personnel costs.   

General and administrative expenses were RMB32.1 million (US$4.6 million) in the third quarter of 2024, an increase of 49.5% from RMB21.5 million in the same period of 2023. This increase was primarily due to an increase in rental and utilities expenses.

Research and development expenses were RMB14.0 million (US$2.0 million) in the third quarter of 2024, a decrease of 2.0% from RMB14.3 million in the same period of 2023, primarily due to a decrease in personnel costs.

Net profit and Non-GAAP net profit for the period

Net profit was RMB18.7million (US$2.7 million) in the third quarter of 2024, compared to net profit of RMB20.2 million in the same period of 2023. Non-GAAP net profit was RMB18.3 million (US$2.6 million) in the third quarter of 2024, compared to non-GAAP net profit of RMB18.5 million in the same period of 2023.

Cash and cash equivalents

As of September 30, 2024, the Company’s cash and cash equivalents amounted to RMB242.6 million (US$34.6 million), compared to RMB249.3 million as of December 31, 2023.

Conference Call

The Company’s management team will hold an earnings conference call at 7:00 A.M. Eastern Time on Tuesday, December 10, 2024 (8:00 P.M. Beijing/Hong Kong Time on Tuesday, December 10, 2024). Details for the conference call are as follows:

Event Title: Huize Holding Limited’s Third Quarter 2024 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BI6f8fe18c6ef94d6baa48203895575679

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a confirmation email containing dial-in numbers and a unique access PIN, which will be used to join the conference call.

Additionally, a live and archived webcast of the conference call will also be available on the Company’s investor relations website at http://ir.huize.com.

About Huize Holding Limited

Huize Holding Limited is a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia. Targeting mass affluent consumers, Huize is dedicated to serving consumers for their life-long insurance needs. Its online-to-offline integrated insurance ecosystem covers the entire insurance life cycle and offers consumers a wide spectrum of insurance products, one-stop services, and a streamlined transaction experience across all scenarios. By leveraging AI, data analytics, and digital capabilities, Huize empowers the insurance service chain with proprietary technology-enabled solutions for insurance consultation, user engagement, marketing, risk management, and claims service.

For more information, please visit http://ir.huize.com or follow us on social media via LinkedIn (https://www.linkedin.com/company/huize-holding-limited), Twitter (https://twitter.com/huizeholding) and Webull (https://www.webull.com/quote/nasdaq-huiz).

Use of Non-GAAP Financial Measure Statement

In evaluating our business, we consider and use non-GAAP net profit/(loss) attributable to common shareholders as a supplemental measure to review and assess our operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP net profit/(loss) attributable to common shareholders as net profit/(loss) attributable to common shareholders excluding share-based compensation expenses. Such adjustments have no impact on income tax because either the non-GAAP adjustments were recorded at entities located in tax free jurisdictions, such as the Cayman Islands or because the non-GAAP adjustments were recorded at operating entities located in the PRC for which the non-GAAP adjustments were not deductible for tax purposes.

We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. Non-GAAP net profit/(loss) attributable to common shareholders enables our management to assess our operating results without considering the impact of share-based compensation expenses. We also believe that the use of this non-GAAP financial measure facilitates investors’ assessment of our operating performance.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net profit/(loss) attributable to common shareholders is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP financial measure may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.

The non-GAAP financial measure should not be considered in isolation or construed as an alternative to net profit/(loss) attributable to common shareholders or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measure in light of the most directly comparable GAAP measure, as shown below. The non-GAAP financial measure presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing our data comparatively. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Huize’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, business outlook and quotations from management in this announcement, contain forward-looking statements. Huize may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huize’s goal and strategies; Huize’s expansion plans; Huize’s future business development, financial condition and results of operations; Huize’s expectation regarding the demand for, and market acceptance of, its online insurance products; Huize’s expectations regarding its relationship with insurer partners and insurance clients and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing.

Further information regarding these and other risks is included in Huize’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Huize does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Investor Relations
Kenny Lo
Investor Relations Manager
investor@huize.com

Media Relations
mediacenter@huize.com

Christensen Advisory
In China
Ms. Dee Wang
Phone: +86-10-5900-1548
Email: dee.wang@christensencomms.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com   

Huize Holding Limited

Unaudited Condensed Consolidated Balance Sheets

(all amounts in thousands, except for share and per share data)

 

 
 
As of December 31
 
As of September 30

 
 
2023
 
 
2024

 

 
 
RMB
 
RMB
 
 
USD

Assets
 
 
 
 
 
 
 

Current assets
 
 
 
 
 
 
 

Cash and cash equivalents
 
249,258
 
 
242,629
 
 
34,574
 

Restricted cash
 
42,307
 
 
46,014
 
 
6,557
 

Short-term investments
 
8,879
 
 
6,833
 
 
974
 

Contract assets, net of allowance for doubtful accounts
 
41,481
 
 
62,772
 
 
8,945
 

Accounts receivables, net of allowance for impairment
 
178,294
 
 
186,133
 
 
26,524
 

Insurance premium receivables
 
927
 
 
2,140
 
 
305
 

Amounts due from related parties
 
383
 
 
984
 
 
140
 

Amount due from shareholders
 

 
 
632
 
 
90
 

Deferred costs
 
6,147
 
 

 
 

 

Prepaid expense and other receivables
 
78,784
 
 
76,026
 
 
10,834
 

Total current assets
 
606,460
 
 
624,163
 
 
88,943
 

 
 
 
 
 
 
 

Non-current assets
 
 
 
 
 
 

Restricted cash
 
29,687
 
 
29,886
 
 
4,259
 

Contract assets, net of allowance for doubtful accounts
 
12,495
 
 
27,918
 
 
3,978
 

Property, plant and equipment, net
 
54,107
 
 
52,292
 
 
7,452
 

Intangible assets, net
 
50,743
 
 
70,491
 
 
10,045
 

Long-term investments
 
76,688
 
 
71,200
 
 
10,146
 

Operating lease right-of-use assets
 
115,946
 
 
109,743
 
 
15,638
 

Other receivables
 

 
 
8,446
 
 
1,204
 

Goodwill
 
461
 
 
10,935
 
 
1,558
 

Other assets
 
419
 
 
482
 
 
64
 

Total non-current assets
 
340,546
 
 
381,393
 
 
54,344
 

Total assets
 
947,006
 
 
1,005,556
 
 
143,287
 

 
 
 
 
 
 
 

Liabilities and Shareholders’ Equity
 
 
 
 
 
 

Current liabilities
 
 
 
 
 
 

Short-term borrowings
 
30,000
 
 
20,200
 
 
2,878
 

Accounts payable
 
211,905
 
 
275,341
 
 
39,236
 

Insurance premium payables
 
37,514
 
 
41,180
 
 
5,868
 

Contract liabilities
 
2,728
 
 
59
 
 
8
 

Other payables and accrued expenses
 
34,850
 
 
40,097
 
 
5,711
 

Payroll and welfare payable
 
56,207
 
 
39,822
 
 
5,675
 

Income taxes payable
 
2,440
 
 
2,440
 
 
348
 

Operating lease liabilities
 
16,949
 
 
20,629
 
 
2,940
 

Amount due to related parties
 
2,451
 
 

 
 

 

Total current liabilities
 
395,044
 
 
439,768
 
 
62,664
 

 
 
 
 
 
 
 

Non-current liabilities
 
 
 
 
 
 

Deferred tax liabilities
 
12,048
 
 
15,812
 
 
2,253
 

Operating lease liabilities
 
129,299
 
 
121,789
 
 
17,355
 

Payroll and welfare payable
 
200
 
 
1,575
 
 
224
 

Total non-current liabilities
 
141,547
 
 
139,176
 
 
19,832
 

Total liabilities
 
536,591
 
 
578,944
 
 
82,496
 

 
 
 
 
 
 
 

Shareholders’ equity
 
 
 
 
 
 

Class A common shares
 
62
 
 
63
 
 
9
 

Class B common shares
 
10
 
 
10
 
 
1
 

Treasury stock
 
(28,580
)
 
(29,512
)
 
(4,205
)

Additional paid-in capital
 
905,958
 
 
910,740
 
 
129,779
 

Accumulated other comprehensive loss
 
(14,060
)
 
(15,418
)
 
(2,197
)

Accumulated deficits
 
(458,237
)
 
(456,025
)
 
(64,983
)

Total shareholders’ equity attributable to Huize Holding
Limited shareholders

 
405,153
 
 
409,858
 
 
58,404
 

Non-controlling interests
 
5,262
 
 
16,754
 
 
2,387
 

Total shareholders’ equity
 
410,415
 
 
426,612
 
 
60,791
 

Total liabilities and shareholders’ equity
 
947,006
 
 
1,005,556
 
 
143,287
 

 

Huize Holding Limited

Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)

(all amounts in thousands, except for share and per share data)

 

 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,

 
 
2023
 
 
2024
 
 
2023
 
 
2024
 

 
 
RMB
 
RMB
 
USD
 
RMB
 
RMB
 
USD

Operating revenue
 
 
 
 
 
 
 
 
 
 
 
 

Brokerage income
 
279,110
 
 
          361,173
 
 
            51,467
 
 
923,029
 
 
934,845
 
 
133,214
 

Other income
 
13,334
 
 
         8,525
 
 
1,215
 
 
36,516
 
 
         28,116
 
 
           4,007
 

Total operating revenue
 
292,444
 
 
        369,698
 
 
          52,682
 
 
959,545
 
 
       962,961
 
 
       137,221
 

Operating costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 

Cost of revenue
 
(184,474
)
 
(266,813
)
 
(38,021
)
 
(597,062
)
 
(675,199
)
 
(96,215
)

Other cost
 
(4,841
)
 
(164
)
 
(23
)
 
(15,663
)
 
(6,327
)
 
(902
)

Total operating costs
 
(189,315
)
 
(266,977
)
 
(38,044
)
 
(612,725
)
 
(681,526
)
 
(97,117
)

Selling expenses
 
(49,129
)
 
(43,275
)
 
         (6,167
)
 
(162,751
)
 
(134,305
)
 
(19,138
)

General and administrative
expenses
 
(21,493
)
 
(32,126
)
 
(4,578
)
 
(92,103
)
 
(104,427
)
 
(14,881
)

Research and development
expenses
 
(14,305
)
 
        (14,025
)
 
          (1,998
)
 
(54,620
)
 
(46,504
)
 
(6,627
)

Total operating costs and expenses
 
(274,242
)
 
       (356,403
)
 
           (50,787
)
 
(922,199
)
 
(966,762
)
 
(137,763
)

Operating profit/(loss)
 
18,202
 
 
13,295
 
 
1,895
 
 
37,346
 
 
           (3,801
)
 
              (542
)

 
 
 
 
 
 
 
 
 
 
 
 
 

Other income/(expenses)
 
 
 
 
 
 
 
 
 
 
 
 

Interest income
 
1,490
 
 
           1,040
 
 
148
 
 
2,297
 
 
3,360
 
 
479
 

Unrealized exchange loss
 
(101
)
 
(26
)
 
(4
)
 
(309
)
 
(270
)
 
(38
)

Investment (loss)/income
 
(613
)
 
               1,604
 
 
229
 
 
(928
)
 
(2,232
)
 
(318
)

Others, net
 
1,299
 
 
          2,008
 
 
286
 
 
14,311
 
 
6,912
 
 
985
 

Profit before income tax, and share of income of equity method investee
 
20,277
 
 
17,921
 
 
2,554
 
 
52,717
 
 
3,969
 
 
566
 

Share of income of equity
method investee
 
1,359
 
 
639
 
 
91
 
 
365
 
 
217
 
 
31
 

Net profit
 
21,636
 
 
18,560
 
 
2,645
 
 
53,082
 
 
4,186
 
 
597
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net profit/(loss) attributable to non-controlling interests
 
1,467
 
 
(93
)
 
(13
)
 
881
 
 
1,974
 
 
282
 

Net profit attributable to common shareholders
 
20,169
 
 
18,653
 
 
2,658
 
 
52,201
 
 
2,212
 
 
315
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net profit/(loss)
 
21,636
 
 
18,560
 
 
2,645
 
 
53,082
 
 
4,186
 
 
597
 

Foreign currency translation
adjustment, net of tax
 
3,237
 
 
              (3,379
)
 
                (482
)
 
8,489
 
 
            (1,358
)
 
(194
)

Comprehensive income
 
24,873
 
 
15,181
 
 
2,163
 
 
61,571
 
 
2,828
 
 
403
 

Comprehensive income/(loss) attributable to non-controlling interests
 
1,467
 
 
(93
)
 
                (13
)
 
881
 
 
1,974
 
 
281
 

Comprehensive income attributable to Huize Holding Limited
 
23,406
 
 
             15,274
 
 
              2,176
 
 
60,690
 
 
854
 
 
122
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Weighted average number
of common shares used in
computing net profit per share
 
 
 
 
 
 
 
 
 
 
 
 

      Basic and diluted
 
995,606,092
 
 
1,013,767,072
 
 
1,013,767,072
 
 
1,004,018,221
 
 
    996,483,969
 
 
   996,483,969
 

Net profit per share
attributable to common shareholders
 
 
 
 
 
 
 
 
 
 
 
 

Basic and diluted
 
0.02
 
 
0.02
 
 
0.00
 
 
0.05
 
 
0.00
 
 
0.00
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Huize Holding Limited

Unaudited Reconciliations of GAAP and Non-GAAP Results

(all amounts in thousands, except for share and per share data)

 

 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,

 
 
2023
 
 
2024
 
 
2023
 
2024

 
 
RMB
 
RMB
 
USD
 
RMB
 
RMB
 
USD

Net profit attributable to common shareholders
 
20,169
 
 
18,653
 
 
2,658
 
 
52,201
 
2,212
 
315

Share-based
compensation expenses
 
(1,684
)
 
(313
)
 
(45
)
 
3,709
 
7,484
 
1,067

Non-GAAP net profit attributable to common shareholders
 
18,485
 
 
18,340
 
 
2,613
 
 
55,910
 
9,696
 
1,382

 

 

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