Huize Holding Limited Reports First Quarter 2020 Unaudited Financial Results
First Quarter 2020 Operational and Financial Highlights:
- Total Gross Written Premiums (“GWP”) facilitated on our platform increased by 40.6% to
RMB597.9 million fromRMB425.4 million in the first quarter of 2019. - GWP of long-term life and health insurance products accounted for approximately 93.8% of total GWP facilitated, compared to 86.0% in the first quarter of 2019.
- Cumulative number of insurance clients served increased to approximately 6.4 million as of
March 31, 2020 . Number of insured clients increased to approximately 53.6 million as ofMarch 31, 2020 . - Total operating revenue decreased by 1.1% to
RMB248.7 million (US$35.1 million ) fromRMB251.6 million in the first quarter of 2019. - Net loss was
RMB2.3 million (US$0.3 million ). Non-GAAP net profit1 wasRMB22.2 million (US$3.1 million ), representing the Company’s eighth consecutive profitable quarter on a non-GAAP basis.
1 Non-GAAP net profit is a non-GAAP financial measure. For more information, 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.
Mr. Cunjun Ma, Founder, Chairman and Chief Executive Officer of
“Our commitment to seeking a balance between business growth and financial stability has also continued to serve us well. During the period, we consciously sought to rein in our spending as reflected by the quarter-over-quarter decrease in selling expenses. It is also important to note our strong liquidity and robust financial position, which we believe is of paramount importance in the context of the current macro environment. As of quarter end, we had a combined cash and cash equivalents balance of
“Going forward, we remain optimistic about the development prospects for both the Company and the entire insurance industry in
First Quarter 2020 Financial Results
Total operating revenue
Total operating revenue in the first quarter of 2020 decreased by
Cost of revenue
Cost of revenue in the first quarter of 2020 decreased by
Operating expenses
Selling expenses in the first quarter of 2020 increased by
General and administrative expenses in the first quarter of 2020 increased by
Research and development expenses in the first quarter of 2020 increased by
Net profit and Non-GAAP net profit for the period
Net loss in the first quarter of 2020 was
Cash and cash equivalents
As of
Business Outlook
Based on the Company’s preliminary assessment of the current market conditions, the Company currently expects total operating revenue for the second quarter of 2020 to be in the range of
Conference Call
The Company’s management team will hold a Direct Event conference call on
Event Title: | |
Conference ID: | #8751208 |
Registration Link: | http://apac.directeventreg.com/registration/event/8751208 |
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique access PIN, which can be used to join the conference call.
A replay of the conference call will be accessible through
International: | +61-2-8199-0299 |
Mainland |
400-632-2162 |
United States Toll Free: | +1-855-452-5696 |
800-963-117 |
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at ir.huize.com.
About
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) 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
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) 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
The non-GAAP financial measure should not be considered in isolation or construed as an alternative to net profit/(loss) 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
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
Further information regarding these and other risks is included in Huize’s filings with the
For investor and media inquiries, please contact:
E-mail: investor@huize.com
Tel: +1-212-365-4862
E-mail: huize.ir@icrinc.com
SOURCE
Unaudited Consolidated Balance Sheets
(all amounts in thousands, except for share and per share data)
As of |
As of |
||||||||
2019 | 2020 | ||||||||
RMB | RMB | USD | |||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 88,141 | 500,233 | 70,646 | ||||||
Restricted cash | 161,186 | 99,677 | 14,077 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 180,393 | 131,262 | 18,538 | ||||||
Insurance premium receivables | 2,329 | 2,508 | 354 | ||||||
Amounts due from related parties | 280 | 369 | 52 | ||||||
Prepaid expense and other receivables | 29,196 | 32,469 | 4,585 | ||||||
Total current assets | 461,525 | 766,518 | 108,252 | ||||||
Non-current assets | |||||||||
Property, plant and equipment, net | 8,006 | 7,786 | 1,100 | ||||||
Intangible assets, net | 1,652 | 1,558 | 220 | ||||||
Deferred tax assets | 64 | 51 | 7 | ||||||
Long-term investments | 23,395 | 23,694 | 3,346 | ||||||
Other assets | 14,163 | 501 | 72 | ||||||
Operating lease right-of-use assets | - | 11,636 | 1,643 | ||||||
Total non-current assets | 47,280 | 45,226 | 6,388 | ||||||
Total assets | 508,805 | 811,744 | 114,640 | ||||||
Current liabilities | |||||||||
Short-term borrowings | 36,880 | 52,773 | 7,453 | ||||||
Accounts payable | 124,441 | 123,367 | 17,423 | ||||||
Insurance premium payables | 125,587 | 65,254 | 9,216 | ||||||
Other payables and accrued expenses | 30,211 | 22,816 | 3,222 | ||||||
Payroll and welfare payable | 43,993 | 40,041 | 5,655 | ||||||
Income taxes payable | 206 | 206 | 29 | ||||||
Operating lease liabilities | - | 6,597 | 932 | ||||||
Amounts due to related parties | 465 | 473 | 67 | ||||||
Total current liabilities | 361,783 | 311,527 | 43,997 | ||||||
Non-current liabilities | |||||||||
Deferred tax liabilities | 530 | 605 | 85 | ||||||
Operating lease liabilities | - | 5,428 | 767 | ||||||
Payroll and welfare payable | - | 5,476 | 773 | ||||||
Other non-current liabilities | 518 | 213 | 30 | ||||||
Total non-current liabilities | 1,048 | 11,722 | 1,655 | ||||||
Total liabilities | 362,831 | 323,249 | 45,652 | ||||||
Mezzanine equity | |||||||||
Series A redeemable preferred shares | 84,072 | - | - | ||||||
Series B redeemable preferred shares | 261,272 | - | - | ||||||
Series B+ redeemable preferred shares | 81,654 | - | - | ||||||
Series B++ redeemable preferred shares | 27,629 | - | - | ||||||
Total mezzanine equity | 454,627 | - | - | ||||||
Shareholders’ (deficit)/equity | |||||||||
Common shares | 33 | - | - | ||||||
Class A common shares | - | 62 | 9 | ||||||
Class B common shares | - | 10 | 1 | ||||||
Additional paid-in capital | 64,882 | 859,767 | 121,422 | ||||||
Accumulated other comprehensive income | 414 | 4,937 | 697 | ||||||
Accumulated deficit | (373,982 | ) | (376,281 | ) | (53,141 | ) | |||
Total shareholders’ (deficit)/equity attributable to |
(308,653 | ) | 488,495 | 68,988 | |||||
Non-controlling interests | - | - | - | ||||||
Total shareholders’ (deficit)/equity | (308,653 | ) | 488,495 | 68,988 | |||||
Total liabilities, mezzanine equity and shareholders’ equity |
508,805 | 811,744 | 114,640 | ||||||
Unaudited Consolidated Statements of Comprehensive Income
(all amounts in thousands, except for share and per share data)
For the Three Months Ended |
|||||||||
2019 | 2020 | ||||||||
RMB | RMB | USD | |||||||
Operating revenue | |||||||||
Brokerage income | 250,003 | 247,689 | 34,980 | ||||||
Other income | 1,567 | 1,004 | 142 | ||||||
Total operating revenue | 251,570 | 248,693 | 35,122 | ||||||
Operating costs and expenses | |||||||||
Cost of revenue | (153,944 | ) | (147,796 | ) | (20,873 | ) | |||
Other cost | (401 | ) | (919 | ) | (130 | ) | |||
Total operating costs | (154,345 | ) | (148,715 | ) | (21,003 | ) | |||
Selling expenses | (28,925 | ) | (52,954 | ) | (7,479 | ) | |||
General and administrative expenses | (18,349 | ) | (38,987 | ) | (5,506 | ) | |||
Research and development expenses | (6,414 | ) | (11,187 | ) | (1,580 | ) | |||
Total operating costs and expenses | (208,033 | ) | (251,843 | ) | (35,568 | ) | |||
Operating profit/(loss) | 43,537 | (3,150 | ) | (446 | ) | ||||
Other income/(expenses) | |||||||||
Interest expenses | (144 | ) | (413 | ) | (58 | ) | |||
Unrealized exchange income/(loss) | 369 | (33 | ) | (5 | ) | ||||
Others, net | 3,502 | 1,086 | 153 | ||||||
Profit/(loss) before income tax, and share of income of equity method investee | 47,264 | (2,510 | ) | (356 | ) | ||||
Income tax expense | (32 | ) | (88 | ) | (12 | ) | |||
Share of (loss)/income of equity method investee | (202 | ) | 299 | 42 | |||||
Net profit/(loss) | 47,030 | (2,299 | ) | (326 | ) | ||||
Net profit/(loss) attributable to non-controlling interests | 13 | - | - | ||||||
Net profit/(loss) attributable to |
47,017 | (2,299 | ) | (326 | ) | ||||
Redeemable preferred shares redemption value accretion | (7,783 | ) | (4,274 | ) | (604 | ) | |||
Allocation to redeemable preferred shares | (23,634 | ) | 1,074 | 152 | |||||
Net profit/(loss) attributable to common shareholders | 15,600 | (5,499 | ) | (778 | ) | ||||
Net profit/(loss) | 47,030 | (2,299 | ) | (326 | ) | ||||
Foreign currency translation adjustment, net of tax | (54 | ) | 4,523 | 639 | |||||
Comprehensive income | 46,976 | 2,224 | 313 | ||||||
Comprehensive (loss)/income attributable to non- controlling interests | - | - | - | ||||||
Comprehensive income attributable to Huize Holding Limited | 46,976 | 2,224 | 313 | ||||||
Weighted average number of common shares used in computing net profit/(loss)per share | |||||||||
Basic and diluted | 445,272,000 | 512,976,199 | 512,976,199 | ||||||
Net profit/(loss)per share attributable to common shareholders | |||||||||
Basic and diluted | 0.04 | (0.01 | ) | (0.00 | ) | ||||
Unaudited Reconciliations of GAAP and Non-GAAP Results
(all amounts in thousands, except for share and per share data)
For the Three Months Ended |
|||||||||
2019 |
2020 | ||||||||
RMB |
RMB | USD | |||||||
Net profit/(loss) | 47,030 | (2,299 | ) | (326 | ) | ||||
Share-based compensation expenses | 5,942 | 24,498 | 3,460 | ||||||
Non-GAAP net profit | 52,972 | 22,199 | 3,134 | ||||||
Source: Huize Holding Limited