Huize Reports Third Quarter 2023 Unaudited Financial Results
Third Quarter 2023 Financial and Operational Highlights
- Driving high-quality growth: Gross Written Premiums (“GWP”) facilitated year to date on our platform were
RMB4,555.5 million , increased by 31.7% year-over-year. Within GWP, First Year Premiums (“FYP”) accounted forRMB2,203.1 million , up 54.1% year-over-year. Renewal premiums year to date increased by 16.0% year-over-year toRMB2,352.4 million . Increases in premiums were driven primarily by our high-quality customer base, sustainably high persistency ratios, and the diverse array of customized long-term insurance products we distribute. - Focused cost management and improving profitability: Gross profit margin improved by 6.0 percentage points year-over-year to 35.3% driven by improved customer acquisition efficiency. Operating expense-to-revenue ratio continued to improve, decreasing by 3.9 percentage points year-over-year to 29.0%. Net profit in the third quarter of 2023 was
RMB20.2 million (US$2.8 million ) and non-GAAP net profit wasRMB18.5 million , marking the fourth consecutive quarter of profitability.
- Cumulative number of insurance clients served increased to approximately 9.1 million as of
September 30, 2023 . We cooperate with 121 insurer partners, including 75 life & health insurance companies and 46 property & casualty insurance companies, as ofSeptember 30, 2023 . - As of
September 30, 2023 , cash and cash equivalents wereRMB258.4 million (US$35.4 million ).
Mr. Cunjun Ma, Founder and CEO of
“During the quarter, our strategic focus remained squarely on distributing long-term insurance products, which accounted for 90.9% of GWP. This is the sixteenth consecutive quarter where this figure has exceeded 90%. FYP for our annuity products tripled during the quarter on a year-over-year basis, capitalizing on market demand for retirement savings products. Our high-quality customer base has contributed to persistency ratios of more than 95% as of the end of August, among the highest in the industry, for the 13th and 25th months of our long-term insurance products. This also led to a 25.2% sequential increase in renewal premiums during the quarter.”
“In the ‘To-A’ segment, we continued to empower insurance agents with innovative technologies. In the third quarter, FYP facilitated by the ‘To-A’ business reached
Third Quarter 2023 Financial Results
GWP and operating revenue
GWP facilitated on our platform was
Operating revenue was
Operating costs
Operating costs were
Operating expenses
Selling expenses were
General and administrative expenses were
Research and development expenses were
Net profit and Non-GAAP net profit for the period
Net profit in the third quarter of 2023 was
Non-GAAP net profit was
Cash and cash equivalents
As of
Share Repurchase Program
Year to date as of
Conference Call
The Company’s management team will hold an earnings conference call at
Event Title: | Huize Holding Limited’s Third Quarter 2023 Earnings Conference Call |
Registration Link: | https://s1.c-conf.com/diamondpass/10034925-lfd3vp.html |
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, a passcode, 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
In
Ms.
Phone: +852 2117 0861
Email: crystal.lai@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) |
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As of |
As of |
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2022 | 2023 | |||||||||
RMB | RMB | USD | ||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | 277,168 | 258,437 | 35,422 | |||||||
Restricted cash | 98,917 | 72,523 | 9,940 | |||||||
Short-term investments | - | 9,556 | 1,310 | |||||||
Contract assets, net of allowance for doubtful accounts | 49,888 | 33,704 | 4,620 | |||||||
Accounts receivables, net of allowance for impairment | 250,667 | 134,504 | 18,434 | |||||||
Insurance premium receivables | 1,792 | 2,410 | 330 | |||||||
Amounts due from related parties | 489 | 373 | 51 | |||||||
Deferred costs | - | 4,409 | 604 | |||||||
Prepaid expense and other receivables | 71,818 | 97,530 | 13,368 | |||||||
Total current assets | 750,739 | 613,446 | 84,079 | |||||||
Non-current assets | ||||||||||
Contract assets, net of allowance for doubtful accounts | 6,634 | 9,715 | 1,332 | |||||||
Property, plant and equipment, net | 38,518 | 54,794 | 7,510 | |||||||
Intangible assets, net | 53,498 | 52,853 | 7,244 | |||||||
Long-term investments | 77,305 | 76,742 | 10,518 | |||||||
Operating lease right-of-use assets | 162,180 | 119,099 | 16,324 | |||||||
461 | 461 | 63 | ||||||||
Other assets | 279 | - | - | |||||||
Total non-current assets | 338,875 | 313,664 | 42,991 | |||||||
Total assets | 1,089,614 | 927,110 | 127,070 | |||||||
Liabilities, Mezzanine Equity and Shareholders’ Equity | ||||||||||
Current liabilities | ||||||||||
Short-term borrowings | 150,000 | 19,800 | 2,714 | |||||||
Accounts payable | 262,266 | 191,806 | 26,289 | |||||||
Insurance premium payables | 27,567 | 39,128 | 5,363 | |||||||
Contract liabilities | 4,034 | 3,935 | 539 | |||||||
Other payables and accrued expenses | 58,251 | 41,198 | 5,647 | |||||||
Payroll and welfare payable | 43,938 | 76,026 | 10,420 | |||||||
Income taxes payable | 2,440 | 2,440 | 334 | |||||||
Operating lease liabilities | 10,075 | 16,044 | 2,199 | |||||||
Amount due to related parties | 495 | 1,718 | 236 | |||||||
Total current liabilities | 559,066 | 392,095 | 53,741 | |||||||
Non-current liabilities | ||||||||||
Deferred tax liabilities | 12,491 | 12,048 | 1,651 | |||||||
Operating lease liabilities | 176,032 | 132,796 | 18,201 | |||||||
Payroll and welfare payable | - | 405 | 56 | |||||||
Total non-current liabilities | 188,523 | 145,249 | 19,908 | |||||||
Total liabilities | 747,589 | 537,344 | 73,649 | |||||||
Commitments and contingencies | ||||||||||
Shareholders’ equity | ||||||||||
Class A common shares | 62 | 62 | 8 | |||||||
Class B common shares | 10 | 10 | 1 | |||||||
(15,306 | ) | (29,802 | ) | (4,085 | ) | |||||
Additional paid-in capital | 904,935 | 905,601 | 124,123 | |||||||
Accumulated other comprehensive loss | (17,695 | ) | (9,206 | ) | (1,262 | ) | ||||
Accumulated deficits | (531,127 | ) | (478,926 | ) | (65,642 | ) | ||||
Total shareholders’ equity attributable to |
340,879 | 387,739 | 53,143 | |||||||
Non-controlling interests | 1,146 | 2,027 | 278 | |||||||
Total shareholders’ equity | 342,025 | 389,766 | 53,421 | |||||||
Total liabilities and shareholders’ equity | 1,089,614 | 927,110 | 127,070 |
Unaudited Consolidated Statements of Comprehensive Income/(Loss) (all amounts in thousands, except for share and per share data) |
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For the Three Months Ended |
For the Nine Months Ended |
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2022 |
2023 |
2022 |
2023 | |||||||||||||||
RMB | RMB | USD | RMB | RMB | USD | |||||||||||||
Operating revenue | ||||||||||||||||||
Brokerage income | 338,536 | 279,110 | 38,255 | 862,156 | 923,029 | 126,512 | ||||||||||||
Other income | 13,254 | 13,334 | 1,828 | 37,341 | 36,516 | 5,005 | ||||||||||||
Total operating revenue | 351,790 | 292,444 | 40,083 | 899,497 | 959,545 | 131,517 | ||||||||||||
Operating costs and expenses | ||||||||||||||||||
Cost of revenue | (236,324 | ) | (184,474 | ) | (25,284 | ) | (547,654 | ) | (597,062 | ) | (81,833 | ) | ||||||
Other cost | (12,369 | ) | (4,841 | ) | (664 | ) | (24,427 | ) | (15,663 | ) | (2,147 | ) | ||||||
Total operating costs | (248,693 | ) | (189,315 | ) | (25,948 | ) | (572,081 | ) | (612,725 | ) | (83,980 | ) | ||||||
Selling expenses | (56,395 | ) | (49,129 | ) | (6,734 | ) | (189,850 | ) | (162,751 | ) | (22,307 | ) | ||||||
General and administrative expenses | (43,116 | ) | (21,493 | ) | (2,946 | ) | (116,104 | ) | (92,103 | ) | (12,624 | ) | ||||||
Research and development expenses | (16,363 | ) | (14,305 | ) | (1,961 | ) | (64,020 | ) | (54,620 | ) | (7,486 | ) | ||||||
Total operating costs and expenses | (364,567 | ) | (274,242 | ) | (37,589 | ) | (942,055 | ) | (922,199 | ) | (126,397 | ) | ||||||
Operating profit/(loss) | (12,777 | ) | 18,202 | 2,494 | (42,558 | ) | 37,346 | 5,120 | ||||||||||
Other income/(expenses) | ||||||||||||||||||
Interest income/(expenses) | (1,924 | ) | 1,490 | 204 | (4,469 | ) | 2,297 | 315 | ||||||||||
Unrealized exchange loss | (50 | ) | (101 | ) | (14 | ) | (95 | ) | (309 | ) | (42 | ) | ||||||
Investment loss | (435 | ) | (613 | ) | (84 | ) | (2,217 | ) | (928 | ) | (127 | ) | ||||||
Others, net | 4,349 | 1,299 | 178 | 11,071 | 14,311 | 1,961 | ||||||||||||
Profit/(loss) before income tax, and share of income/(loss) of equity method investee | (10,837 | ) | 20,277 | 2,778 | (38,268 | ) | 52,717 | 7,227 | ||||||||||
Share of income/(loss) of equity method investee | (393 | ) | 1,359 | 186 | (3,033 | ) | 365 | 50 | ||||||||||
Net profit/(loss) | (11,230 | ) | 21,636 | 2,964 | (41,301 | ) | 53,082 | 7,277 | ||||||||||
Net profit/(loss) attributable to non-controlling interests | (691 | ) | 1,467 | 201 | (1,942 | ) | 881 | 121 | ||||||||||
Net profit/(loss) attributable to common shareholders | (10,539 | ) | 20,169 | 2,763 | (39,359 | ) | 52,201 | 7,156 | ||||||||||
Net profit/(loss) | (11,230 | ) | 21,636 | 2,964 | (41,301 | ) | 53,082 | 7,277 | ||||||||||
Foreign currency translation adjustment, net of tax | 7,438 | 3,237 | 444 | 13,151 | 8,489 | 1,164 | ||||||||||||
Comprehensive income/(loss) | (3,792 | ) | 24,873 | 3,408 | (28,150 | ) | 61,571 | 8,441 | ||||||||||
Comprehensive income/(loss) attributable to non-controlling interests | (691 | ) | 1,467 | 201 | (1,942 | ) | 881 | 121 | ||||||||||
Comprehensive income/(loss) attributable to |
(3,101 | ) | 23,406 | 3,207 | (26,208 | ) | 60,690 | 8,320 | ||||||||||
Weighted average number of common shares used in computing net profit per share | ||||||||||||||||||
Basic and diluted | 1,021,183,878 | 995,606,092 | 995,606,092 | 1,022,391,802 | 1,004,018,221 | 1,004,018,221 | ||||||||||||
Net profit/(loss) per share attributable to common shareholders | ||||||||||||||||||
Basic and diluted | (0.01 | ) | 0.02 | 0.00 | (0.04 | ) | 0.05 | 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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For the Three Months Ended |
For the Nine Months Ended |
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2022 |
2023 |
2022 |
2023 | |||||||||||||
RMB | RMB | USD | RMB | RMB | USD | |||||||||||
Net profit/(loss) attributable to common shareholders | (10,539 | ) | 20,169 | 2,763 | (39,359 | ) | 52,201 | 7,156 | ||||||||
Share-based compensation expenses | 744 | (1,684 | ) | (231 | ) | 4,447 | 3,709 | 508 | ||||||||
Non-GAAP net profit/(loss) attributable to common shareholders | (9,795 | ) | 18,485 | 2,532 | (34,912 | ) | 55,910 | 7,664 |
Huize Holding Limited