Huize Holding Limited Reports First Quarter 2021 Unaudited Financial Results

May 18, 2021

SHENZHEN, China, May 18, 2021 (GLOBE NEWSWIRE) -- Huize Holding Limited, (“Huize”, the “Company” or “we”) (NASDAQ: HUIZ), a leading digital insurance product and service platform for new generation consumers in China, today announced its unaudited financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights:

  • Total Gross Written Premiums (“GWP”) facilitated on our platform increased by 133.1% to a record quarterly high of RMB1,393.8 million, compared to RMB597.9 million in the first quarter of 2020.  
  • Total operating revenue increased by 195.5% to a record quarterly high of RMB735.0 million (US$112.2 million), compared to RMB248.7 million in the first quarter of 2020.
  • Cumulative number of insurance clients served increased to approximately 7.0 million, and cumulative number of insured clients was approximately 58.4 million as of March 31, 2021.

Mr. Cunjun Ma, Founder, Chairman and Chief Executive Officer of Huize, commented, “Our first quarter results again demonstrated our strong growth potential. Driven by continuous improvements in pandemic situation in China and seasonal strength for the life and health insurance sector, our total GWP and total operating revenue both achieved record quarterly highs.”

“During the quarter, market demand for critical illness insurance surged due to the transition to a new statutory definition of critical illnesses, coupled with our increased marketing spend to capture market share, as a result, our GWP for long-term health insurance grew by 123.2% year-over-year to RMB1.1 billion. The new definitions of critical illnesses brought both challenges and opportunities to the critical illness insurance market. Leveraging our years of experience and continuous improvement in product customization capabilities, we completed the product upgrade soon after the revised definitions went into effect, and launched the innovative new-definition critical illness product Darwin 5 Glory. In the long term, we believe there is still room for greater demand for critical illness protection, and we will continue to explore and develop more innovative products.”

“With the official implementation of the Regulation of Internet Insurance Business in China, the online insurance industry is expected to thrive in a more sustainable and healthy environment. Going forward, Huize will continue to focus on users, polish our core capabilities, improve operational efficiency, and provide users with more diversified and personalized products and services through both online and offline channels. Moreover, we will seize the opportunity presented by the accelerating digital transformation of the insurance industry, empower upstream and downstream partners and the whole insurance ecosystem with data and technology, develop more mature insurance technology solutions, and strive to achieve sustainable development and high-quality growth.”

First Quarter 2021 Financial Results

Total operating revenue

Total operating revenue in the first quarter of 2021 increased by RMB486.3 million, or 195.5%, to RMB735.0 million (US$112.2 million) from RMB248.7 million in the same period of 2020. The increase in total operating revenue was primarily driven by an increase in brokerage income, which increased by 195.8% year-over-year to RMB732.6 million (US$111.8 million) in the first quarter of 2021. The increase in brokerage income was primarily driven by the 133.1% increase in total GWP facilitated, which amounted to RMB1,393.8 million during the first quarter of 2021, of which first year premiums accounted for RMB889.8 million (63.8%) and renewal premiums accounted for RMB504.0 million (36.2%).

Total operating costs

Cost of revenue in the first quarter of 2021 increased by RMB408.9 million, or 276.7%, to RMB556.7 million (US$85.0 million) from RMB147.8 million in the same period of 2020, which was primarily attributable to increased service fees paid to user traffic channels.

Total operating costs in the first quarter of 2021 increased by RMB408.8 million, or 274.9%, to RMB557.5 million (US$85.1 million) from RMB148.7 million in the same period of 2020, primarily attributable to the increase in cost of revenue.

Operating expenses

Selling expenses in the first quarter of 2021 increased by RMB24.0 million, or 45.3%, to RMB77.0 million (US$11.7 million) from RMB53.0 million in the same period of 2020. This increase was primarily attributable to increased advertising and marketing expenses, as well as an increase in salaries and employment benefits due to an increase in headcount, offset by a decrease in share-based compensation expenses.

General and administrative expenses in the first quarter of 2021 increased by RMB15.1 million, or 38.7%, to RMB54.1 million (US$8.3 million) from RMB39.0 million in the same period of 2020. This increase was primarily attributable to the increased rental expenses due to office expansion, as well as an increase in general and administrative salaries and employment benefits, offset by a decrease in share-based compensation expenses.

Research and development expenses in the first quarter of 2021 increased by RMB7.6 million, or 67.9%, to RMB18.8 million (US$2.9 million) from RMB11.2 million in the same period of 2020, primarily attributable to an increase in the number of R&D personnel.

Net profit and Non-GAAP net profit for the period

Net profit in the first quarter of 2021 was RMB28.5 million (US$4.4 million), compared to a net loss of RMB2.3 million in the first quarter of 2020. Non-GAAP net profit in the first quarter of 2021 was RMB38.7 million (US$5.9 million), compared to non-GAAP net profit of RMB22.2 million in the first quarter of 2020.

Cash and cash equivalents

As of March 31, 2021, the combined balance of the Company’s cash and cash equivalents amounted to RMB497.9 million (US$76.0 million), compared to RMB500.2 million as of March 31, 2020.

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 2021 to be in the range of RMB230 million to RMB250 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change as a result of various market uncertainties, including those related to the ongoing COVID-19 pandemic globally.

Share Repurchase Program

As of March 31, 2021, the Company had purchased an aggregate of 171,843 ADSs for a total amount of approximately US$1.5 million, under its share repurchase program pursuant to which the Company has been authorized to repurchase up to US$10 million ADSs by April 15, 2021, as previously announced on April 15, 2020.

Conference Call

The Company’s management team will hold a Direct Event conference call on Tuesday, May 18, 2021, at 8:00 A.M. Eastern Time (or 8:00 P.M. Beijing Time on the same day) to discuss the financial results. Details for the conference call are as follows:

Event Title: Huize Holding Limited First Quarter 2021 Earnings Conference Call
Conference ID: #6994329
Registration Link:

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 May 26, 2021, by dialing the following numbers:

International: +61-2-8199-0299
Mainland China Toll Free: 400-632-2162
United States Toll Free: +1-855-452-5696
Hong Kong, China Toll Free: 800-963-117

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at

About Huize Holding Limited
Huize Holding Limited is a leading digital insurance product and service platform for new generation consumers in China. Targeting the younger generation, Huize is dedicated to serving its insurance clients for their life-long insurance needs. Leveraging its online platform, Huize offers a wide variety of insurance products with a focus on long-term life and health insurance products, and empowers its insurer partners to reach a large fragmented client base in the insurance retail market efficiently and enhance their insurance sales. Huize provides insurance clients with digitalized insurance experience and services, including suitable product recommendations, consulting service, intelligent underwriting and assistance in claim application and settlement, which significantly improve transaction experience.

For more information, please visit

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 U.S. GAAP. We define non-GAAP net profit/(loss) as net profit/(loss) 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) 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) 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) 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 RMB6.5518 to US$1.00, the exchange rate on March 31, 2021 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 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
Harriet Hu
Investor Relations Director
+852 3180 9207

Media Relations

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
    2020    2021
    RMB   RMB   USD
Current assets            
Cash and cash equivalents   404,618     497,929     75,999  
Restricted cash   324,330     213,591     32,600  
Contract Assets   216     363     55  
Accounts receivable, net of allowance for doubtful accounts   232,589     208,456     31,817  
Insurance premium receivables   1,974     785     120  
Amounts due from related parties   251     252     38  
Prepaid expense and other receivables   44,377     66,953     10,219  
Total current assets   1,008,355     988,329     150,848  
Non-current assets            
Property, plant and equipment, net   10,251     11,780     1,798  
Intangible assets, net   2,030     2,648     404  
Deferred tax assets   605     605     92  
Investments accounted for at fair value   -     6,552     1,000  
Long-term investments   46,084     51,233     7,820  
Operating lease right-of-use assets   267,352     259,593     39,622  
Goodwill   461     461     70  
Other assets   838     268     41  
Total non-current assets   327,621     333,140     50,847  
Total assets   1,335,976     1,321,469     201,695  
Current liabilities            
Short-term borrowings   31,540     112,940     17,238  
Accounts payable   227,532     213,138     32,531  
Insurance premium payables   187,219     78,669     12,007  
Other payables and accrued expenses   31,153     32,385     4,943  
Payroll and welfare payable   63,919     47,859     7,305  
Income taxes payable   2,440     3,969     606  
Operating lease liabilities   12,763     11,157     1,703  
Total current liabilities   556,566     500,117     76,333  
Non-current liabilities            
Long-term borrowings   53,860     66,460     10,144  
Deferred tax liabilities   605     605     92  
Operating lease liabilities   252,106     254,322     38,817  
Payroll and welfare payable   4,156     5,008     764  
Total non-current liabilities   310,727     326,395     49,817  
Total liabilities   867,293     826,512     126,150  
Shareholders’ equity            
Class A common shares   62     62     9  
Class B common shares   10     10     2  
Treasury stock   (2,063 )   (9,545 )   (1,457 )
Additional paid-in capital   884,920     888,932     135,678  
Accumulated other comprehensive income   (21,972 )   (20,749 )   (3,167 )
Accumulated deficit   (392,274 )   (363,753 )   (55,520 )
Total shareholders’ equity   468,683     494,957     75,545  
Total liabilities and shareholders’ equity   1,335,976     1,321,469     201,695  

Huize Holding Limited
Unaudited Consolidated Statements of Comprehensive Income
(all amounts in thousands, except for share and per share data)
    For the Three Months Ended March 31,
    2020    2021
    RMB   RMB   USD
Operating revenue            
Brokerage income   247,689     732,630     111,821  
Other income   1,004     2,351     359  
Total operating revenue   248,693     734,981     112,180  
Operating costs and expenses            
Cost of revenue   (147,796 )   (556,696 )   (84,968 )
Other cost   (919 )   (771 )   (118 )
Total operating costs   (148,715 )   (557,467 )   (85,086 )
Selling expenses   (52,954 )   (76,976 )   (11,749 )
General and administrative expenses   (38,987 )   (54,061 )   (8,251 )
Research and development expenses   (11,187 )   (18,833 )   (2,874 )
Total operating costs and expenses   (251,843 )   (707,337 )   (107,960 )
Operating (loss)/income   (3,150 )   27,644     4,220  
Other income/(expenses)            
Interest expenses   (413 )   (220 )   (34 )
Unrealized exchange loss   (33 )   (2 )   -  
Investment income   -     241     37  
Others, net   1,086     2,638     403  
Profit before income tax, and share of (loss)/income of equity method investee   (2,510 )   30,301     4,626  
Income tax expense   (88 )   (1,529 )   (233 )
Share of income/(loss) of equity method investee   299     (251 )   (38 )
Net (loss)/profit   (2,299 )   28,521     4,355  
Net (loss)/profit attributable to non-controlling interests   -     -     -  
Net (loss)/profit attributable to Huize Holding Limited    (2,299 )   28,521     4,355  
Redeemable preferred shares redemption value accretion   (4,274 )   -     -  
Allocation to redeemable preferred shares   1,074     -     -  
Net (loss)/profit attributable to common shareholders   (5,499 )   28,521     4,355  
Net (loss)/profit   (2,299 )   28,521     4,355  
Foreign currency translation adjustment, net of tax   4,523     1,223     187  
Comprehensive income   2,224     29,744     4,542  
Comprehensive (loss)/income attributable to non-controlling interests   -     -     -  
Comprehensive income attributable to Huize Holding Limited   2,224     29,744     4,542  

Weighted average number of common shares used in computing net profit per share              
Basic   512,976,199     1,022,963,524   1,022,963,524  
Diluted   512,976,199     1,036,413,496   1,036,413,496  
Net income/(loss) per share attributable to common shareholders              
Basic   (0.01 )   0.03   0.00  
Diluted   (0.01 )   0.03   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,
    2020    2021
    RMB   RMB   USD
Net (loss)/profit   (2,299 )   28,521   4,355
Share-based compensation expenses   24,498     10,227   1,561
Non-GAAP net profit   22,199     38,748   5,916

Huize Holding Limited

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