Huize Holding Limited Reports Fourth Quarter and Full Year 2019 Unaudited Financial Results
Fourth Quarter and Full Year 2019 Operational Highlights:
- Total Gross Written Premiums (“GWP”) facilitated on our platform in the fourth quarter of 2019 increased by 108.4% to
RMB642.5 million fromRMB308.3 million in the fourth quarter of 2018.
- Total GWP facilitated on our platform for the full year of 2019 increased by 114.1% to
RMB2,014.3 million fromRMB941.0 million in 2018.
- Cumulative number of insurance clients served increased to approximately 6.3 million as of
December 31, 2019 , from approximately 5.3 million as ofDecember 31, 2018 .
Fourth Quarter and Full Year 2019 Financial Highlights:
- Total operating revenue in the fourth quarter of 2019 increased by 44.2% to
RMB258.3 million fromRMB179.1 million in the fourth quarter of 2018.
- Net loss in the fourth quarter of 2019 was
RMB7.5 million , as compared to a net loss ofRMB4.2 million in the fourth quarter of 2018.
- Adjusted net profit1 in the fourth quarter of 2019 was
RMB6.1 million , as compared toRMB9.3 million in the fourth quarter of 2018.
- Total operating revenue for the full year of 2019 increased by 95.2% to
RMB993.3 million fromRMB508.8 million in 2018.
- Net profit for the full year of 2019 increased by 417.2% to
RMB15.0 million fromRMB2.9 million in 2018.
- Adjusted net profit1 for the full year of 2019 increased by 265.1% to
RMB109.9 million fromRMB30.1 million in 2018.
1 Adjusted 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
“The company’s initial public offering in February marked an important milestone for both the company and shareholders alike. Going forward, we remain focused on leveraging our enhanced brand recognition to further accelerate the expansion of our customer base, improve our customer acquisition capabilities, and expand our partnerships with user traffic channels. In addition, we also plan to set up strategically located offline service centers while offering a broader range of insurance products to deepen our customer engagement and further satisfy the evolving needs of our customer base.”
“Looking ahead into 2020, we will continue to invest in technology and data analytics to further improve our capabilities in the areas of customer acquisition, customer conversion, risk management, marketing, and operating efficiency. We also plan to maintain our dedication to serving insurance client needs and further strengthening our leading position as a go-to gateway for China’s online insurance industry, both of which will help us to reach our long-term goal of building a sustainable platform. We are confident that such measures will help us to not only weather the current short-term headwinds in the economy, but also generate lasting value for our shareholders over time.”
Fourth Quarter 2019 Financial Results:
Total operating revenue in the fourth quarter of 2019 increased by 44.2% to
Cost of revenue in the fourth quarter of 2019 increased by 40.3% to
Selling expenses in the fourth quarter of 2019 grew substantially, increasing by 96.6% to
General and administrative expenses in the fourth quarter of 2019 also heightened substantially, increasing by 91.7% to
Research and development expenses in the fourth quarter of 2019 increased by 61.6% to
Net loss for the fourth quarter of 2019 was
Adjusted net profit for the fourth quarter of 2019 was
Full Year 2019 Financial Results:
Total operating revenue in 2019 increased by 95.2% to
Cost of revenue in 2019 grew substantially, increasing by 99.0% to
Selling expenses in 2019 increased by 74.1% to
General and administrative expenses in 2019 also grew substantially, increasing by 250.2% to
Research and development expenses in 2019 increased by 35.7% to
Net profit for 2019 increased by 417.2% to
Adjusted net profit for 2019 increased by 265.1% to
Recent Developments
On
The recent outbreak of the novel coronavirus (COVID-19) has caused the government to impose a series of preventative and quarantine measures across the country, such as social distancing and city-wide lockdowns, which have resulted in significant disruptions to the overall economic activity in
Business Outlook
Based on the Company’s preliminary assessment of the current market conditions, the Company currently expects total operating revenue for the first 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: Huize Holding Limited’s Fourth Quarter and Full Year 2019 Earnings Conference Call
Conference ID: #8689226
Registration Link: http://apac.directeventreg.com/registration/event/8689226
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 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 adjusted 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. Adjusted 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:
Ms.
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 |
Pro Forma |
||||||||||||||||
2018 | 2019 | 2019 | |||||||||||||||
RMB | RMB | USD$ | RMB | USD$ | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | 6,640 | 88,141 | 12,661 | 88,141 | 12,661 | ||||||||||||
Restricted cash | 145,631 | 161,186 | 23,153 | 161,186 | 23,153 | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts | 108,434 | 180,393 | 25,912 | 180,393 | 25,912 | ||||||||||||
Insurance premium receivables | 9,143 | 2,329 | 335 | 2,329 | 335 | ||||||||||||
Amounts due from related parties | 10,546 | 280 | 40 | 280 | 40 | ||||||||||||
Prepaid expense and other receivables | 20,596 | 29,196 | 4,194 | 29,196 | 4,194 | ||||||||||||
Total current assets | 300,990 | 461,525 | 66,295 | 461,525 | 66,295 | ||||||||||||
Non-current assets | |||||||||||||||||
Property, plant and equipment, net | 6,354 | 8,006 | 1,150 | 8,006 | 1,150 | ||||||||||||
Intangible assets, net | 1,197 | 1,652 | 237 | 1,652 | 237 | ||||||||||||
Deferred tax assets | 137 | 64 | 9 | 64 | 9 | ||||||||||||
Long-term investments | 21,575 | 23,395 | 3,360 | 23,395 | 3,360 | ||||||||||||
Other assets | 3,831 | 14,163 | 2,034 | 14,163 | 2,034 | ||||||||||||
Total non-current assets | 33,094 | 47,280 | 6,790 | 47,280 | 6,790 | ||||||||||||
Total assets | 334,084 | 508,805 | 73,085 | 508,805 | 73,085 | ||||||||||||
Current liabilities | |||||||||||||||||
Short-term borrowings | 24,267 | 36,880 | 5,297 | 36,880 | 5,297 | ||||||||||||
Accounts payable | 73,448 | 124,441 | 17,875 | 124,441 | 17,875 | ||||||||||||
Insurance premium payables | 114,447 | 125,587 | 18,039 | 125,587 | 18,039 | ||||||||||||
Other payables and accrued expenses | 36,908 | 30,211 | 4,340 | 30,211 | 4,340 | ||||||||||||
Payroll and welfare payable | 31,850 | 43,993 | 6,319 | 43,993 | 6,319 | ||||||||||||
Income taxes payable | 250 | 206 | 30 | 206 | 30 | ||||||||||||
Amounts due to related parties | - | 465 | 67 | 465 | 67 | ||||||||||||
Total current liabilities | 281,170 | 361,783 | 51,967 | 361,783 | 51,967 |
Non-current liabilities | ||||||||||||||||
Long-term borrowings | 15,804 | - | - | - | - | |||||||||||
Deferred tax liabilities | 575 | 530 | 76 | 530 | 76 | |||||||||||
Other non-current liabilities | - | 518 | 74 | 518 | 74 | |||||||||||
Total non-current liabilities | 16,379 | 1,048 | 150 | 1,048 | 150 | |||||||||||
Total liabilities | 297,549 | 362,831 | 52,117 | 362,831 | 52,117 | |||||||||||
Mezzanine equity | ||||||||||||||||
Series A redeemable preferred shares | 78,390 | 84,072 | 12,076 | - | - | |||||||||||
Series B redeemable preferred shares | 241,918 | 261,272 | 37,529 | - | - | |||||||||||
Series B+ redeemable preferred shares | 75,606 | 81,654 | 11,729 | - | - | |||||||||||
Series B++ redeemable preferred shares | 25,859 | 27,629 | 3,969 | - | - | |||||||||||
Total mezzanine equity | 421,773 | 454,627 | 65,303 | - | - | |||||||||||
Shareholders’ (deficit)/equity | ||||||||||||||||
Common shares ( |
31 | 33 | 5 | 66 | 9 | |||||||||||
Additional paid-in capital | 2,778 | 64,882 | 9,320 | 519,476 | 74,619 | |||||||||||
Accumulated other comprehensive income | 295 | 414 | 59 | 414 | 59 | |||||||||||
Accumulated deficit | (388,884 | ) | (373,982 | ) | (53,719 | ) | (373,982 | ) | (53,719 | ) | ||||||
Total shareholders’ (deficit)/equity attributable to |
(385,780 | ) | (308,653 | ) | (44,335 | ) | 145,974 | 20,968 | ||||||||
Non-controlling interests | 542 | - | - | - | - | |||||||||||
Total shareholders’ (deficit)/equity | (385,238 | ) | (308,653 | ) | (44,335 | ) | 145,974 | 20,968 | ||||||||
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity |
334,084 | 508,805 | 73,085 | 508,805 | 73,085 |
Unaudited Consolidated Statements of Comprehensive (Loss) / Income | ||||||||||||||||||||
(all amounts in thousands, except for share and per share data) | ||||||||||||||||||||
Three Months Ended | Year Ended |
|||||||||||||||||||
December 31, 2018 |
September 30, 2019 |
December 31, 2019 |
2018 | 2019 | ||||||||||||||||
RMB | RMB | RMB | USD$ | RMB | RMB | USD$ | ||||||||||||||
Operating revenue | ||||||||||||||||||||
Brokerage income | 177,468 | 280,563 | 253,607 | 36,428 | 503,547 | 982,124 | 141,073 | |||||||||||||
Other income | 1,655 | 3,027 | 4,656 | 669 | 5,281 | 11,195 | 1,608 | |||||||||||||
Total operating revenue | 179,123 | 283,590 | 258,263 | 37,097 | 508,828 | 993,319 | 142,681 | |||||||||||||
Operating costs and expenses | ||||||||||||||||||||
Cost of revenue | (113,980 | ) | (189,306 | ) | (159,913 | ) | (22,970 | ) | (316,397 | ) | (629,531 | ) | (90,426 | ) | ||||||
Other cost | (500 | ) | (499 | ) | (523 | ) | (75 | ) | (1,905 | ) | (1,837 | ) | (264 | ) | ||||||
Total operating costs | (114,480 | ) | (189,805 | ) | (160,436 | ) | (23,045 | ) | (318,302 | ) | (631,368 | ) | (90,690 | ) | ||||||
Selling expenses | (31,445 | ) | (40,201 | ) | (61,815 | ) | (8,879 | ) | (94,613 | ) | (164,665 | ) | (23,653 | ) | ||||||
General and administrative expenses | (17,972 | ) | (30,649 | ) | (34,532 | ) | (4,960 | ) | (46,177 | ) | (161,816 | ) | (23,243 | ) | ||||||
Research and development expenses | (7,333 | ) | (8,101 | ) | (11,825 | ) | (1,699 | ) | (24,944 | ) | (33,831 | ) | (4,860 | ) | ||||||
Total operating costs and expenses | (171,230 | ) | (268,756 | ) | (268,608 | ) | (38,583 | ) | (484,036 | ) | (991,680 | ) | (142,446 | ) | ||||||
Operating (loss)/profit | 7,893 | 14,834 | (10,345 | ) | (1,486 | ) | 24,792 | 1,639 | 235 | |||||||||||
Other income/(expenses) | ||||||||||||||||||||
Interest income/(expenses) | (13,876 | ) | (3 | ) | 75 | 11 | (27,111 | ) | (190 | ) | (27 | ) | ||||||||
Unrealized exchange income/(loss) | (385 | ) | (4 | ) | (3 | ) | (0 | ) | (354 | ) | 362 | 52 | ||||||||
Investment income | - | 675 | 43 | 6 | - | 718 | 103 | |||||||||||||
Others, net | 757 | 901 | 2,456 | 353 | 4,569 | 12,676 | 1,821 | |||||||||||||
(Loss)/profit before income tax, and share of income of equity method investee | (5,611 | ) | 16,403 | (7,774 | ) | (1,116 | ) | 1,896 | 15,205 | 2,184 | ||||||||||
Income tax expense | (287 | ) | (232 | ) | 319 | 46 | (278 | ) | (57 | ) | (8 | ) | ||||||||
Share of income/(loss) of equity method investee | 1,701 | (67 | ) | (90 | ) | (13 | ) | 1,310 | (180 | ) | (26 | ) | ||||||||
Net (loss)/profit | (4,197 | ) | 16,104 | (7,545 | ) | (1,083 | ) | 2,928 | 14,968 | 2,150 | ||||||||||
Net profit/(loss) attributable to non-controlling interests | (64 | ) | (25 | ) | - | - | (224 | ) | 66 | 9 | ||||||||||
Net (loss)/profit attributable to |
(4,133 | ) | 16,129 | (7,545 | ) | (1,083 | ) | 3,152 | 14,902 | 2,141 | ||||||||||
Redeemable preferred shares redemption value accretion | (7,605 | ) | (7,868 | ) | (9,878 | ) | (1,419 | ) | (29,118 | ) | (32,854 | ) | (4,719 | ) | ||||||
Allocation to redeemable preferred shares | 2,035 | (7,981 | ) | 3,726 | 535 | (1,558 | ) | (7,431 | ) | (1,067 | ) | |||||||||
Net loss attributable to common shareholders | (9,703 | ) | 280 | (13,697 | ) | (1,967 | ) | (27,524 | ) | (25,383 | ) | (3,645 | ) | |||||||
Net (loss)/profit | (4,197 | ) | 16,104 | (7,545 | ) | (1,083 | ) | 2,928 | 14,968 | 2,150 | ||||||||||
Foreign currency translation adjustment, net of tax | 382 | 112 | 24 | 3 | 327 | 140 | 20 | |||||||||||||
Comprehensive (loss)/income | (3,815 | ) | 16,216 | (7,521 | ) | (1,083 | ) | 3,255 | 15,108 | 2,170 | ||||||||||
Comprehensive (loss)/income attributable to non- controlling interests | (67 | ) | (7 | ) | - | - | (192 | ) | 87 | 12 | ||||||||||
Comprehensive (loss)/income attributable to |
(3,748 | ) | 16,223 | (7,521 | ) | (1,080 | ) | 3,447 | 15,021 | 2,158 | ||||||||||
Weighted average number of common shares used in computing net (loss)/profit per share | ||||||||||||||||||||
Basic | 445,272,000 | 459,501,183 | 452,445,068 | 452,445,068 | 445,272,000 | 452,445,068 | 452,445,068 | |||||||||||||
Diluted | 445,272,000 | 461,113,966 | 452,445,068 | 452,445,068 | 445,272,000 | 452,445,068 | 452,445,068 | |||||||||||||
Net (loss)/profit per share attributable to common shareholders | ||||||||||||||||||||
Basic | (0.02 | ) | 0 | (0.04 | ) | 0 | (0.06 | ) | (0.06 | ) | (0.01 | ) | ||||||||
Diluted | (0.02 | ) | 0 | (0.04 | ) | 0 | (0.06 | ) | (0.06 | ) | (0.01 | ) |
Unaudited Reconciliations of GAAP and Non-GAAP Results (all amounts in thousands, except for share and per share data) |
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Three Months Ended | Year Ended |
|||||||||||||||
December 31, 2018 |
September 30, 2019 |
December 31, 2019 |
2018 | 2019 | ||||||||||||
RMB | RMB | RMB | USD$ | RMB | RMB | USD$ | ||||||||||
Net (loss) / profit | (4,197 | ) | 16,104 | (7,545 | ) | (1,084 | ) | 2,928 | 14,968 | 2,150 | ||||||
Share-based compensation expenses | 147 | 13,567 | 13,617 | 1,956 | 967 | 94,958 | 13,640 | |||||||||
Interest on convertible bond | 13,374 | - | - | - | 26,249 | - | - | |||||||||
Adjusted net (loss) / profit | 9,324 | 29,671 | 6,072 | 872 | 30,144 | 109,926 | 15,790 |
Source: Huize Holding Limited