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.”
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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