Huize Holding Limited Reports Third Quarter 2020 Unaudited Financial Results
Third Quarter 2020 Operational and Financial Highlights:
- Total Gross Written Premiums (“GWP”) facilitated on our platform increased by 41.2% to a record quarterly high of
RMB779.0 million , compared toRMB551.8 million in the third quarter of 2019. - Total operating revenue increased by 22.9% to a record quarterly high of
RMB348.5 million (US$51.3 million ), compared toRMB283.6 million in the third quarter of 2019. - GWP of long-term life and health insurance products accounted for approximately 92.9% of total GWP facilitated, compared to 87.5% in the third quarter of 2019.
- Cumulative number of insurance clients served was approximately 6.7 million, and cumulative number of insured clients was approximately 56.0 million as of
September 30, 2020 . - Net profit was
RMB14.7 million (US$2.2 million ). Non-GAAP net profit1 wasRMB20.4 million (US$3.0 million ).
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
“We also continued to gain recognition for our industry leadership during the third quarter. In September, we were included in Hurun’s ‘China Digital Insurance Agencies 2020’ list, wherein we were ranked fourth in terms of market performance and innovation capabilities. Moreover, in September, our critical illness insurance product, ‘Darwin 3,’ won the ‘Popular Health Insurance Product of 2020’ award, marking the sixth time that our ‘Darwin’ critical illness series of insurance products has won such an industry award.”
“Looking ahead, as many of the insurance clients we have served come from families in first and second tier cities with high customer lifetime value potential, we will be rolling out offline service centers in select first and second tier cities in order to better serve their differentiated demands for higher-quality products and premium insurance services.”
“Over the next three years, we will take the opportunity to invest in a comprehensive strategic upgrade for the core
Third Quarter 2020 Financial Results
Total operating revenue
Total operating revenue in the third quarter of 2020 increased by
Total operating costs
Cost of revenue in the third quarter of 2020 increased by
Total operating costs in the third quarter of 2020 increased by
Operating expenses
Selling expenses in the third quarter of 2020 increased by
General and administrative expenses in the third quarter of 2020 decreased by
Research and development expenses in the third quarter of 2020 increased by
Net profit and Non-GAAP net profit for the period
Net profit in the third 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 fourth quarter of 2020 to be in the range of
Share Repurchase Program
As of
Conference Call
The Company’s management team will hold a Direct Event conference call on
Event Title: | Huize Holding Limited Third Quarter 2020 Earnings Conference Call |
Conference ID: | #3687648 |
Registration Link: | http://apac.directeventreg.com/registration/event/3687648 |
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:
Investor Relations
Investor Relations Director
+852 3180 9207
investor@huize.com
Media Relations
mediacenter@huize.com
Unaudited Consolidated Balance Sheets
(all amounts in thousands, except for share and per share data)
As of December 31 | As of September 30 | ||||||||
2019 | 2020 | ||||||||
RMB | RMB | USD | |||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 88,141 | 446,068 | 65,699 | ||||||
Restricted cash | 161,186 | 255,807 | 37,676 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 180,393 | 195,590 | 28,807 | ||||||
Insurance premium receivables | 2,329 | 2,051 | 302 | ||||||
Amounts due from related parties | 280 | 169 | 25 | ||||||
Prepaid expense and other receivables | 29,196 | 39,162 | 5,767 | ||||||
Total current assets | 461,525 | 938,847 | 138,276 | ||||||
Non-current assets | |||||||||
Property, plant and equipment, net | 8,006 | 8,511 | 1,254 | ||||||
Intangible assets, net | 1,652 | 2,158 | 318 | ||||||
Deferred tax assets | 64 | 194 | 29 | ||||||
Long-term investments | 23,395 | 25,353 | 3,734 | ||||||
Other assets | 14,163 | 1,862 | 274 | ||||||
Operating lease right-of-use assets | - | 10,517 | 1,549 | ||||||
Total non-current assets | 47,280 | 48,595 | 7,158 | ||||||
Total assets | 508,805 | 987,442 | 145,434 | ||||||
Current liabilities | |||||||||
Short-term borrowings | 36,880 | 72,000 | 10,604 | ||||||
Accounts payable | 124,441 | 163,749 | 24,118 | ||||||
Insurance premium payables | 125,587 | 115,659 | 17,035 | ||||||
Other payables and accrued expenses | 30,211 | 20,260 | 2,984 | ||||||
Payroll and welfare payable | 43,993 | 51,822 | 7,633 | ||||||
Income taxes payable | 206 | 2,874 | 423 | ||||||
Operating lease liabilities | - | 7,854 | 1,157 | ||||||
Amounts due to related parties | 465 | - | - | ||||||
Total current liabilities | 361,783 | 434,218 | 63,954 | ||||||
Non-current liabilities | |||||||||
Long-term borrowings | - | 40,000 | 5,891 | ||||||
Deferred tax liabilities | 530 | 605 | 89 | ||||||
Operating lease liabilities | - | 2,742 | 404 | ||||||
Payroll and welfare payable | - | 5,335 | 786 | ||||||
Other non-current liabilities | 518 | - | - | ||||||
Total non-current liabilities | 1,048 | 48,682 | 7,170 | ||||||
Total liabilities | 362,831 | 482,900 | 71,124 | ||||||
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 | ||||||
- | (319 | ) | (47 | ) | |||||
Additional paid-in capital | 64,882 | 879,310 | 129,508 | ||||||
Accumulated other comprehensive income | 414 | (9,208 | ) | (1,356 | ) | ||||
Accumulated deficit | (373,982 | ) | (365,313 | ) | (53,805 | ) | |||
Total shareholders’ (deficit)/equity | (308,653 | ) | 504,542 | 74,310 | |||||
Total liabilities, mezzanine equity and shareholders’ equity |
508,805 | 987,442 | 145,434 | ||||||
Unaudited Consolidated Statements of Comprehensive Income
(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, | |||||||||||||||||
2019 | 2020 | 2019 | 2020 | |||||||||||||||
RMB | RMB | USD | RMB | RMB | USD | |||||||||||||
Operating revenue | ||||||||||||||||||
Brokerage income | 280,563 | 346,773 | 51,074 | 728,517 | 828,639 | 122,045 | ||||||||||||
Other income | 3,027 | 1,677 | 247 | 6,539 | 3,509 | 517 | ||||||||||||
Total operating revenue | 283,590 | 348,450 | 51,321 | 735,056 | 832,148 | 122,562 | ||||||||||||
Operating costs and expenses | ||||||||||||||||||
Cost of revenue | (189,306 | ) | (234,658 | ) | (34,561 | ) | (469,618 | ) | (522,303 | ) | (76,927 | ) | ||||||
Other cost | (499 | ) | (649 | ) | (96 | ) | (1,314 | ) | (2,184 | ) | (322 | ) | ||||||
Total operating costs | (189,805 | ) | (235,307 | ) | (34,657 | ) | (470,932 | ) | (524,487 | ) | (77,249 | ) | ||||||
Selling expenses | (40,201 | ) | (57,857 | ) | (8,521 | ) | (102,850 | ) | (158,929 | ) | (23,408 | ) | ||||||
General and administrative expenses | (30,649 | ) | (30,475 | ) | (4,488 | ) | (127,284 | ) | (112,938 | ) | (16,634 | ) | ||||||
Research and development expenses | (8,101 | ) | (11,478 | ) | (1,691 | ) | (22,006 | ) | (33,292 | ) | (4,903 | ) | ||||||
Total operating costs and expenses | (268,756 | ) | (335,117 | ) | (49,357 | ) | (723,072 | ) | (829,646 | ) | (122,194 | ) | ||||||
Operating income | 14,834 | 13,333 | 1,964 | 11,984 | 2,502 | 368 | ||||||||||||
Other income | ||||||||||||||||||
Interest expenses | (3 | ) | (193 | ) | (28 | ) | (265 | ) | (812 | ) | (120 | ) | ||||||
Unrealized exchange (loss) /income | (4 | ) | - | - | 365 | (38 | ) | (6 | ) | |||||||||
Investment income | 675 | 137 | 20 | 675 | 137 | 20 | ||||||||||||
Others, net | 901 | 3,278 | 483 | 10,220 | 9,261 | 1,365 | ||||||||||||
Profit before income tax, and share of income of equity method investee | 16,403 | 16,555 | 2,439 | 22,979 | 11,050 | 1,627 | ||||||||||||
Income tax expense | (232 | ) | (1,794 | ) | (264 | ) | (376 | ) | (2,613 | ) | (385 | ) | ||||||
Share of (loss)/income of equity method investee | (67 | ) | (67 | ) | (10 | ) | (90 | ) | 232 | 34 | ||||||||
Net profit | 16,104 | 14,694 | 2,165 | 22,513 | 8,669 | 1,276 | ||||||||||||
Net (loss)/profit attributable to non-controlling interests | (25 | ) | - | - | 66 | - | - | |||||||||||
Net profit attributable to |
16,129 | 14,694 | 2,165 | 22,447 | 8,669 | 1,276 | ||||||||||||
Redeemable preferred shares redemption value accretion | (7,868 | ) | - | - | (22,976 | ) | (4,274 | ) | (629 | ) | ||||||||
Allocation to redeemable preferred shares | (7,981 | ) | - | - | (11,157 | ) | 1,074 | 158 | ||||||||||
Net profit/(loss) attributable to common shareholders | 280 | 14,694 | 2,165 | (11,686 | ) | 5,469 | 805 | |||||||||||
Net profit | 16,104 | 14,694 | 2,165 | 22,513 | 8,669 | 1,276 | ||||||||||||
Foreign currency translation adjustment, net of tax | 112 | (13,117 | ) | (1,932 | ) | 116 | (9,622 | ) | (1,417 | ) | ||||||||
Comprehensive income/(loss) | 16,216 | 1,577 | 233 | 22,629 | (953 | ) | (141 | ) | ||||||||||
Comprehensive (loss)/income attributable to non- controlling interests | (7 | ) | - | - | 87 | - | - | |||||||||||
Comprehensive income/(loss) attributable to |
16,223 | 1,577 | 233 | 22,542 | (953 | ) | (141 | ) |
Weighted average number of common shares used in computing net profit per share | |||||||||||||
Basic | 459,501,183 | 1,021,608,313 | 1,021,608,313 | 459,501,183 | 943,959,644 | 943,959,644 | |||||||
Diluted | 459,501,183 | 1,029,852,116 | 1,029,852,116 | 459,501,183 | 951,064,828 | 951,064,828 | |||||||
Net income/(loss) per share attributable to common shareholders | |||||||||||||
Basic | 0.00 | 0.01 | 0.00 | (0.03 | ) | 0.01 | 0.00 | ||||||
Diluted | 0.00 | 0.01 | 0.00 | (0.03 | ) | 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 September 30, | For the Nine Months Ended September 30, | |||||||||||
2019 | 2020 | 2019 | 2020 | |||||||||
RMB | RMB | USD | RMB | RMB | USD | |||||||
Net profit | 16,104 | 14,694 | 2,165 | 22,513 | 8,669 | 1,276 | ||||||
Share-based compensation expenses | 13,567 | 5,719 | 842 | 81,341 | 48,045 | 7,076 | ||||||
Non-GAAP net profit | 29,671 | 20,413 | 3,007 | 103,854 | 56,714 | 8,352 | ||||||
Source: Huize Holding Limited