Huize Holding Limited Reports First Quarter 2024 Unaudited Financial Results
Huize Holding (NASDAQ: HUIZ), a leading insurance technology platform, released its unaudited Q1 2024 financial results, showcasing significant growth and operational efficiency. First Year Premiums (FYP) rose by 29.7% YOY to RMB857.2 million, driven by high-value customer acquisition and product innovation. Operating expenses decreased by 24.9% YOY to RMB81.2 million, improving the expense-to-income ratio to 26.2%. However, Gross Written Premiums (GWP) fell by 11.1% YOY to RMB1,718.0 million, and net profit declined to RMB6.9 million from RMB17.9 million. Despite this, operating revenue increased by 3.8% YOY to RMB310.3 million. Huize's international expansion, particularly in Hong Kong, contributed to its diversified revenue streams. The company remains focused on leveraging AI capabilities and expanding into Southeast Asia.
- First Year Premiums (FYP) increased by 29.7% YOY to RMB857.2 million.
- Operating expenses decreased by 24.9% YOY to RMB81.2 million.
- Expense-to-income ratio improved to 26.2%.
- Operating revenue increased by 3.8% YOY to RMB310.3 million.
- Cash and cash equivalents increased to RMB281.4 million from RMB249.3 million as of Dec 31, 2023.
- Successful international expansion, with 7% of revenue from Hong Kong operations.
- High repeat purchase rate for long-term insurance products at 40.4%.
- Gross Written Premiums (GWP) decreased by 11.1% YOY to RMB1,718.0 million.
- Renewal premiums fell by 32.3% YOY to RMB860.8 million.
- Net profit dropped to RMB6.9 million from RMB17.9 million YOY.
- Non-GAAP net profit decreased to RMB4.4 million from RMB18.4 million YOY.
- Operating costs increased by 22.4% YOY to RMB220.2 million.
Insights
The financial results for Huize Holding Limited's first quarter of 2024 present a nuanced picture for investors. A 29.7% year-over-year increase in First Year Premiums (FYP) to
Huize's focus on expanding its international presence, particularly in Hong Kong and its investment in AI-driven solutions reflect a strategic move to tap into broader markets and leverage technology for growth. The 77% year-over-year increase in FYP for savings products and the high repeat purchase rate of 40.4% for long-term insurance products reflect strong demand and customer satisfaction in these areas. The company's strategic priority on customized insurance product innovation and international expansion into Southeast Asia is ambitious but aligns well with industry trends towards globalization and digitalization. For investors, this means potential for long-term growth if these initiatives succeed. However, the challenges in entering new markets and the competitive nature of the insurance industry should not be underestimated. Market dynamics, regulatory landscapes and the cost of international expansion are critical factors to consider.
SHENZHEN, China, May 23, 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 China, today announced its unaudited financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Financial and Operational Highlights
- Driving new business growth: First Year Premiums (“FYP”) more than doubled sequentially and increased by
29.7% year-over-year to RMB857.2 million, reflecting the progress Huize made in acquiring high-value customers, driving long-term insurance product innovation, and expanding its international presence. - Strengthening operating leverage: Operating expenses decreased by
24.9% year-over-year to RMB81.2 million and the expense-to-income ratio decreased by 10 percentage points to26.2% from the same period of 2023.
- Cumulative number of insurance clients served increased to 9.6 million as of March 31, 2024. Huize cooperated with 120 insurer partners, including 74 life and health insurance companies and 46 property and casualty insurance companies, as of March 31, 2024.
- As of March 31, 2024, cash and cash equivalents were RMB281.4 million (US
$39.0 million ).
Mr. Cunjun Ma, Founder and CEO of Huize, said, “We are pleased to report strong FYP growth and our sixth consecutive quarter of profitability which reflected the resilience of our business and the progress we have made in acquiring high-quality customers, increasing customer lifetime value, diversifying our product offerings, optimizing our omnichannel distribution capabilities, and expanding into international markets starting with Hong Kong.”
“We continue to seize market opportunities by enriching our offerings of savings products including participating and annuity products, resulting in
“Looking ahead, we are committed to capitalizing on the long-term growth opportunities of the insurance industry in China and across Asia. Our strategic focus will remain on customized insurance product innovation for our targeted demographic sub-segments, platform efficiency and productivity improvement driven by our investment in proprietary AI capabilities, international expansion and digitalization. We will continue to diversify our revenue streams by expanding our Hong Kong business and exploring opportunities in the emerging markets of Southeast Asia where we can replicate our proven business model. As we further optimize the functionality of our insurance AI products, we believe we are uniquely positioned to meet customers’ demand for personalized content and services, support distribution partners in improving productivity, and address insurance carriers’ needs for market insights and risk management.”
First Quarter 2024 Financial Results
GWP and operating revenue
GWP facilitated on our platform was RMB1,718.0 million (US
Operating revenue was RMB310.3 million (US
Operating costs
Operating costs were RMB220.2 million (US
Operating expenses
Selling expenses were RMB44.2 million (US
General and administrative expenses were RMB22.6 million (US
Research and development expenses were RMB14.4 million (US
Net profit and Non-GAAP net profit for the period
Net profit was RMB6.9 million (US
Cash and cash equivalents
As of March 31, 2024, the combined balance of the Company’s cash and cash equivalents amounted to RMB281.4 million (US
Conference Call
The Company’s management team will hold an earnings conference call at 9:00 P.M. Eastern Time on Thursday, May 23, 2024 (9:00 A.M. Beijing/Hong Kong Time on Friday, May 24, 2024). Details for the conference call are as follows:
Event Title: Huize Holding Limited’s First Quarter 2024 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BI27adf75d96394227b35234de85e083b8
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 China. 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.
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 and interest on convertible bond. 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 and the interest on convertible bond. 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 RMB7.2203 to US
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
investor@huize.com
Media Relations
mediacenter@huize.com
Christensen Advisory
In China
Ms. Crystal Lai
Phone: +852 2117 0861
Email: crystal.lai@christensencomms.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
| Huize Holding Limited Unaudited Consolidated Balance Sheets (all amounts in thousands, except for share and per share data) | |||||||||
| As of December 31 | As of March 31 | ||||||||
| 2023 | 2024 | ||||||||
| RMB | RMB | USD | |||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 249,258 | 281,392 | 38,972 | ||||||
| Restricted cash | 42,307 | 45,254 | 6,268 | ||||||
| Short-term investments | 8,879 | 5,303 | 734 | ||||||
| Contract assets, net of allowance for doubtful accounts | 41,481 | 41,578 | 5,758 | ||||||
| Accounts receivables, net of allowance for impairment | 178,294 | 201,416 | 27,896 | ||||||
| Insurance premium receivables | 927 | 1,153 | 160 | ||||||
| Amounts due from related parties | 383 | 3,412 | 473 | ||||||
| Deferred costs | 6,147 | 6,154 | 852 | ||||||
| Prepaid expense and other receivables | 78,784 | 79,205 | 10,970 | ||||||
| Total current assets | 606,460 | 664,867 | 92,083 | ||||||
| Non-current assets | |||||||||
| Restricted cash | 29,687 | 29,687 | 4,112 | ||||||
| Contract assets, net of allowance for doubtful accounts | 12,495 | 13,033 | 1,805 | ||||||
| Property, plant and equipment, net | 54,107 | 52,135 | 7,221 | ||||||
| Intangible assets, net | 50,743 | 50,670 | 7,018 | ||||||
| Long-term investments | 76,688 | 75,209 | 10,416 | ||||||
| Operating lease right-of-use assets | 115,946 | 117,513 | 16,275 | ||||||
| Goodwill | 461 | 461 | 65 | ||||||
| Other assets | 419 | 366 | 51 | ||||||
| Total non-current assets | 340,546 | 339,074 | 46,963 | ||||||
| Total assets | 947,006 | 1,003,941 | 139,046 | ||||||
| Liabilities, Mezzanine Equity and Shareholders’ Equity | |||||||||
| Current liabilities | |||||||||
| Short-term borrowings | 30,000 | 30,000 | 4,155 | ||||||
| Accounts payable | 211,905 | 265,110 | 36,717 | ||||||
| Insurance premium payables | 37,514 | 40,564 | 5,619 | ||||||
| Contract liabilities | 2,728 | 2,570 | 356 | ||||||
| Other payables and accrued expenses | 34,850 | 32,738 | 4,535 | ||||||
| Payroll and welfare payable | 56,207 | 49,431 | 6,846 | ||||||
| Income taxes payable | 2,440 | 2,440 | 338 | ||||||
| Operating lease liabilities | 16,949 | 19,638 | 2,720 | ||||||
| Amount due to related parties | 2,451 | 451 | 62 | ||||||
| Total current liabilities | 395,044 | 442,942 | 61,348 | ||||||
| Non-current liabilities | |||||||||
| Deferred tax liabilities | 12,048 | 12,048 | 1,669 | ||||||
| Operating lease liabilities | 129,299 | 129,280 | 17,905 | ||||||
| Payroll and welfare payable | 200 | - | - | ||||||
| Total non-current liabilities | 141,547 | 141,328 | 19,574 | ||||||
| Total liabilities | 536,591 | 584,270 | 80,922 | ||||||
| Commitments and contingencies | |||||||||
| Shareholders’ equity | |||||||||
| Class A common shares | 62 | 62 | 9 | ||||||
| Class B common shares | 10 | 10 | 1 | ||||||
| Treasury stock | (28,580 | ) | (29,512 | ) | (4,087 | ) | |||
| Additional paid-in capital | 905,958 | 905,958 | 125,474 | ||||||
| Accumulated other comprehensive loss | (14,060 | ) | (12,561 | ) | (1,740 | ) | |||
| Accumulated deficits | (458,237 | ) | (451,329 | ) | (62,508 | ) | |||
| Total shareholders’ equity attributable to Huize Holding Limited shareholders | 405,153 | 412,628 | 57,149 | ||||||
| Non-controlling interests | 5,262 | 7,043 | 975 | ||||||
| Total shareholders’ equity | 410,415 | 419,671 | 58,124 | ||||||
| Total liabilities and shareholders’ equity | 947,006 | 1,003,941 | 139,046 | ||||||
| Huize Holding Limited Unaudited Consolidated Statements of Comprehensive Income/(Loss) (all amounts in thousands, except for share and per share data) | |||||||||
| For the Three Months Ended March 31, | |||||||||
| 2023 | 2024 | ||||||||
| RMB | RMB | USD | |||||||
| Operating revenue | |||||||||
| Brokerage income | 288,356 | 301,882 | 41,810 | ||||||
| Other income | 10,554 | 8,430 | 1,168 | ||||||
| Total operating revenue | 298,910 | 310,312 | 42,978 | ||||||
| Operating costs and expenses | |||||||||
| Cost of revenue | (174,076 | ) | (217,892 | ) | (30,178 | ) | |||
| Other cost | (5,771 | ) | (2,303 | ) | (319 | ) | |||
| Total operating costs | (179,847 | ) | (220,195 | ) | (30,497 | ) | |||
| Selling expenses | (56,279 | ) | (44,205 | ) | (6,122 | ) | |||
| General and administrative expenses | (33,529 | ) | (22,632 | ) | (3,134 | ) | |||
| Research and development expenses | (18,312 | ) | (14,380 | ) | (1,992 | ) | |||
| Total operating costs and expenses | (287,967 | ) | (301,412 | ) | (41,745 | ) | |||
| Operating income | 10,943 | 8,900 | 1,233 | ||||||
| Other income/(expenses) | |||||||||
| Interest income/(expenses) | (204 | ) | 1,224 | 170 | |||||
| Unrealized exchange loss | (129 | ) | (293 | ) | (41 | ) | |||
| Investment income/(loss) | 459 | (2,325 | ) | (322 | ) | ||||
| Others, net | 7,321 | 1,950 | 270 | ||||||
| Profit before income tax, and share of loss of equity method investee | 18,390 | 9,456 | 1,310 | ||||||
| Share of loss of equity method investee | (987 | ) | (767 | ) | (106 | ) | |||
| Net profit | 17,403 | 8,689 | 1,204 | ||||||
| Net profit/(loss) attributable to non-controlling interests | (507 | ) | 1,781 | 247 | |||||
| Net profit attributable to common shareholders | 17,910 | 6,908 | 957 | ||||||
| Net profit | 17,403 | 8,689 | 1,204 | ||||||
| Foreign currency translation adjustment, net of tax | (512 | ) | 1,499 | 208 | |||||
| Comprehensive income | 16,891 | 10,188 | 1,412 | ||||||
| Comprehensive income/(loss) attributable to non-controlling interests | (507 | ) | 1,781 | 247 | |||||
| Comprehensive income attributable to common shareholders | 17,398 | 8,407 | 1,165 | ||||||
| Weighted average number of common shares used in computing net profit per share | |||||||||
| Basic and diluted | 1,012,038,174 | 988,410,632 | 988,410,632 | ||||||
| Net profit per share attributable to common shareholders | |||||||||
| Basic and diluted | 0.02 | 0.01 | 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 March 31, | ||||||||
| 2023 | 2024 | |||||||
| RMB | RMB | USD | ||||||
| Net profit attributable to common shareholders | 17,910 | 6,908 | 957 | |||||
| Share-based compensation expenses | 504 | (2,558 | ) | (354 | ) | |||
| Non-GAAP net profit attributable to common shareholders | 18,414 | 4,350 | 603 | |||||
FAQ
What were Huize's First Year Premiums (FYP) for Q1 2024?
How did Huize's operating expenses change in Q1 2024?
What was Huize's net profit for Q1 2024?
How much did Huize's operating revenue increase in Q1 2024?
What was Huize's cash and cash equivalents balance as of March 31, 2024?
How much did Huize's Gross Written Premiums (GWP) change in Q1 2024?
What revenue contribution did Huize's Hong Kong operations make in Q1 2024?
