Huize Holding Limited Reports Third Quarter 2022 Unaudited Financial Results
Third Quarter 2022 Financial and Operational Highlights
- Strong business performance: Gross Written Premiums (“GWP”) facilitated on our platform in the third quarter of 2022 increased by 29.4% to
RMB1,249.0 million fromRMB965.5 million in the third quarter of 2021. First-year premiums (“FYP”) and renewal premiums facilitated on our platform in the third quarter of 2022 increased by 34.0% and 24.1% toRMB684.9 million andRMB564.1 million fromRMB510.9 million andRMB454.6 million in the third quarter of 2021, respectively. - Solid revenue growth with effective cost control: Operating revenue increased by 11.6% year-over-year to
RMB351.8 million in the third quarter of 2022 fromRMB315.1 million in the third quarter of 2021. Operating expenses decreased by 27.7% year-over-year toRMB115.9 million in the third quarter of 2022 fromRMB160.4 million in the same period of 2021. - As of
September 30, 2022 , our cash and cash equivalents amounted toRMB307.4 million (US$43.2 million ). - Cumulative number of insurance clients served increased to approximately 8.3 million, in the third quarter of 2022. We cooperated with 106 insurer partners, including 62 life and health insurance companies and 44 property & casualty insurance companies, as of
September 30, 2022 .
Mr. Cunjun Ma, Founder and CEO of
Capitalizing on our strengths in product innovation and our proactive response to evolving customer needs, we continued to co-develop various long-term customized savings and protection products. In the third quarter, GWP for co-developed insurance products accounted for 72.9% of the total GWP facilitated on our platform. The GWP contribution from our long-term insurance products surpassed 90% for the twelfth consecutive quarter. We expect to achieve profitability in the final quarter of 2022 on the strength of our rejuvenated revenue growth and improving operational efficiency.
We also continued to make good progress on executing our three-year “Agents, Businesses, Customers (ABC)” strategic business plan. In the “To-C” segment, we continued to acquire new customers and increase engagement with our existing customers through new products and service upgrades, driving an average third quarter ticket size of over
Third Quarter 2022 Financial Results
GWP and operating revenue
GWP facilitated on our platform was
Operating revenue was
Operating costs
Operating costs were
Operating expenses
Selling expenses decreased by 32.4% year-over-year to
General and administrative expenses were
Research and development expenses were
Net loss attributable to common shareholders and Non-GAAP net loss attributable to common shareholders
Net loss in the third quarter of 2022 was
Cash and cash equivalents
As of
Share Repurchase Program
As of
Business Outlook
Based on the Company’s preliminary assessment of the current market conditions, the Company expects to achieve profitability in the final quarter of 2022. 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.
Conference Call
The Company’s management team will hold an earnings conference call at
Event Title: Huize Holding Limited’s Third Quarter 2022 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BI828fcf8d615540a0ac7410d146a4c260
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
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
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
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
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@huize.com
Media Relations
mediacenter@huize.com
Christensen Advisory
In
Ms.
Phone: +852 2117 0861
Email: jasmine.zhu@christensencomms.com
In
Ms.
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Unaudited Consolidated Balance Sheets
(all amounts in thousands, except for share and per share data)
As of |
As of |
|||||||||||||||||
2021 | 2022 | |||||||||||||||||
RMB | RMB | USD | ||||||||||||||||
Assets | ||||||||||||||||||
Current assets | ||||||||||||||||||
Cash and cash equivalents | 381,158 | 307,417 | 43,216 | |||||||||||||||
Restricted cash | 183,408 | 117,192 | 16,475 | |||||||||||||||
Contract assets | - | 50,359 | 7,080 | |||||||||||||||
Accounts receivables, net of allowance for impairment | 777,262 | 341,859 | 48,058 | |||||||||||||||
Insurance premium receivables | 1,217 | 1,218 | 171 | |||||||||||||||
Amounts due from related parties | 128 | 479 | 67 | |||||||||||||||
Deferred costs | - | 2,212 | 311 | |||||||||||||||
Prepaid expense and other receivables | 77,511 | 92,655 | 13,025 | |||||||||||||||
Total current assets | 1,420,684 | 913,391 | 128,403 | |||||||||||||||
Non-current assets | ||||||||||||||||||
Restricted cash | 44,418 | - | - | |||||||||||||||
Contract assets | - | 3,659 | 514 | |||||||||||||||
Property, plant and equipment, net | 48,461 | 40,142 | 5,643 | |||||||||||||||
Intangible assets, net | 21,626 | 53,795 | 7,562 | |||||||||||||||
Deferred tax assets | 605 | 605 | 85 | |||||||||||||||
Long-term investments | 73,001 | 77,269 | 10,862 | |||||||||||||||
Operating lease right-of-use assets | 247,819 | 168,469 | 23,683 | |||||||||||||||
461 | 461 | 65 | ||||||||||||||||
Other assets | 379 | 279 | 39 | |||||||||||||||
Total non-current assets | 436,770 | 344,679 | 48,453 | |||||||||||||||
Total assets | 1,857,454 | 1,258,070 | 176,856 | |||||||||||||||
Liabilities, Mezzanine Equity and Shareholders’ Equity | ||||||||||||||||||
Current liabilities | ||||||||||||||||||
Short-term borrowings | 216,710 | 206,000 | 28,959 | |||||||||||||||
Accounts payable | 680,369 | 324,303 | 45,590 | |||||||||||||||
Insurance premium payables | 124,019 | 43,878 | 6,168 | |||||||||||||||
Contract liabilities | 7,236 | 5,692 | 800 | |||||||||||||||
Provisions | - | 3,651 | 513 | |||||||||||||||
Other payables and accrued expenses | 71,255 | 60,435 | 8,496 | |||||||||||||||
Payroll and welfare payable | 93,451 | 65,281 | 9,177 | |||||||||||||||
Income taxes payable | 2,440 | 2,440 | 343 | |||||||||||||||
Operating lease liabilities | 14,886 | 10,018 | 1,408 | |||||||||||||||
Amount due to related parties | 11,875 | 6,341 | 891 | |||||||||||||||
Total current liabilities | 1,222,241 | 728,039 | 102,345 | |||||||||||||||
Non-current liabilities | ||||||||||||||||||
Long-term borrowings | 20,000 | - | - | |||||||||||||||
Deferred tax liabilities | 4,892 | 13,096 | 1,841 | |||||||||||||||
Operating lease liabilities | 249,183 | 181,183 | 25,470 | |||||||||||||||
Payroll and welfare payable | 225 | 827 | 116 | |||||||||||||||
Total non-current liabilities | 274,300 | 195,106 | 27,427 | |||||||||||||||
Total liabilities | 1,496,541 | 923,145 | 129,772 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||
Class A common shares | 62 | 62 | 9 | |||||||||||||||
Class B common shares | 10 | 10 | 1 | |||||||||||||||
(9,545 | ) | (12,971 | ) | (1,823 | ) | |||||||||||||
Additional paid-in capital | 896,772 | 902,360 | 126,852 | |||||||||||||||
Accumulated other comprehensive loss | (27,295 | ) | (14,144 | ) | (1,988 | ) | ||||||||||||
Accumulated deficit | (499,940 | ) | (539,299 | ) | (75,813 | ) | ||||||||||||
Total shareholders’ equity attributable to |
360,064 | 336,018 | 47,238 | |||||||||||||||
Non-controlling interests | 849 | (1,093 | ) | (154 | ) | |||||||||||||
Total shareholders’ equity | 360,913 | 334,925 | 47,084 | |||||||||||||||
Total liabilities and shareholders’ equity | 1,857,454 | 1,258,070 | 176,856 |
Unaudited Consolidated Statements of Comprehensive Income
(all amounts in thousands, except for share and per share data)
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | USD | RMB | RMB | USD | |||||||||||||
Operating revenue | ||||||||||||||||||
Brokerage income | 312,652 | 338,536 | 47,591 | 1,262,550 | 862,156 | 121,200 | ||||||||||||
Other income | 2,429 | 13,254 | 1,863 | 6,133 | 37,341 | 5,249 | ||||||||||||
Total operating revenue | 315,081 | 351,790 | 49,454 | 1,268,683 | 899,497 | 126,449 | ||||||||||||
Operating costs and expenses | ||||||||||||||||||
Cost of revenue | (232,871 | ) | (236,324 | ) | (33,222 | ) | (941,536 | ) | (547,654 | ) | (76,988 | ) | ||||||
Other cost | (173 | ) | (12,369 | ) | (1,739 | ) | (1,362 | ) | (24,427 | ) | (3,434 | ) | ||||||
Total operating costs | (233,044 | ) | (248,693 | ) | (34,961 | ) | (942,898 | ) | (572,081 | ) | (80,422 | ) | ||||||
Selling expenses | (83,396 | ) | (56,395 | ) | (7,928 | ) | (238,225 | ) | (189,850 | ) | (26,689 | ) | ||||||
General and administrative expenses |
(47,172 | ) | (43,116 | ) | (6,061 | ) | (141,632 | ) | (116,104 | ) | (16,322 | ) | ||||||
Research and development expenses |
(29,831 | ) | (16,363 | ) | (2,300 | ) | (74,406 | ) | (64,020 | ) | (9,000 | ) | ||||||
Total operating costs and expenses | (393,443 | ) | (364,567 | ) | (51,250 | ) | (1,397,161 | ) | (942,055 | ) | (132,433 | ) | ||||||
Operating loss | (78,362 | ) | (12,777 | ) | (1,796 | ) | (128,478 | ) | (42,558 | ) | (5,984 | ) | ||||||
Other income/(expenses) | ||||||||||||||||||
Interest expenses | (759 | ) | (1,924 | ) | (270 | ) | (1,636 | ) | (4,469 | ) | (628 | ) | ||||||
Unrealized exchange loss | (8 | ) | (50 | ) | (7 | ) | (19 | ) | (95 | ) | (13 | ) | ||||||
Investment loss | (3,788 | ) | (435 | ) | (61 | ) | (4,029 | ) | (2,217 | ) | (312 | ) | ||||||
Others, net | 3,852 | 4,349 | 611 | 7,892 | 11,071 | 1,556 | ||||||||||||
Loss before income tax, and share of income/(loss) of equity method investee | (79,065 | ) | (10,837 | ) | (1,523 | ) | (126,270 | ) | (38,268 | ) | (5,381 | ) | ||||||
Share of income/ (loss) of equity method investee | 157 | (393 | ) | (55 | ) | (1,294 | ) | (3,033 | ) | (426 | ) | |||||||
Net loss | (78,908 | ) | (11,230 | ) | (1,578 | ) | (127,564 | ) | (41,301 | ) | (5,807 | ) | ||||||
Net loss attributable to non-controlling interests | - | (691 | ) | (97 | ) | - | (1,942 | ) | (273 | ) | ||||||||
Net loss attributable to common shareholders | (78,908 | ) | (10,539 | ) | (1,481 | ) | (127,564 | ) | (39,359 | ) | (5,534 | ) | ||||||
Net loss | (78,908 | ) | (11,230 | ) | (1,578 | ) | (127,564 | ) | (41,301 | ) | (5,807 | ) | ||||||
Foreign currency translation adjustment, net of tax | (319 | ) | 7,438 | 1,046 | (3,789 | ) | 13,151 | 1,849 | ||||||||||
Comprehensive loss | (79,227 | ) | (3,792 | ) | (532 | ) | (131,353 | ) | (28,150 | ) | (3,958 | ) | ||||||
Comprehensive loss attributable to non-controlling interests | - | (691 | ) | (97 | ) | - | (1,942 | ) | (273 | ) | ||||||||
Comprehensive loss attributable to common shareholders | (79,227 | ) | (3,101 | ) | (435 | ) | (131,353 | ) | (26,208 | ) | (3,685 | ) | ||||||
Weighted average number of common shares used in computing net profit per share | ||||||||||||||||||
Basic and diluted | 1,021,266,572 | 1,021,183,878 | 1,021,183,878 | 1,021,803,029 | 1,022,391,802 | 1,022,391,802 | ||||||||||||
Net loss per share attributable to common shareholders | ||||||||||||||||||
Basic and diluted | (0.08 | ) | (0.01 | ) | (0.00 | ) | (0.12 | ) | (0.04 | ) | (0.01 | ) |
Unaudited Reconciliations of GAAP and Non-GAAP Results
(all amounts in thousands, except for share and per share data)
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||||
RMB | RMB | USD | RMB | RMB | USD | |||||||||||||
Net loss attributable to common shareholders | (78,908 | ) | (10,539 | ) | (1,481 | ) | (127,564 | ) | (39,359 | ) | (5,534 | ) | ||||||
Share-based compensation expenses | (7,677 | ) | 744 | 105 | (3,569 | ) | 4,447 | 625 | ||||||||||
Non-GAAP net loss attributable to common shareholders | (86,585 | ) | (9,795 | ) | (1,376 | ) | (131,133 | ) | (34,912 | ) | (4,909 | ) |
Huize Holding Limited