Form 20-F
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xbrli:shares huiz:Agreement
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM
20-F
 
 
(Mark One)
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
 
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2021.
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    .
OR
 
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
                    
Commission file number:
001-39216
 
 
Huize Holding Limited
(Exact Name of Registrant as Specified in Its Charter)
 
 
N/A
(Translation of Registrant’s Name into English)
Cayman Islands
(Jurisdiction of Incorporation or Organization)
49/F, Building T1, Qianhai Financial Centre, Linhai Avenue,
Qianhai
Shenzhen-Hong
Kong Cooperation Zone, Shenzhen 518000
People’s Republic of China
(Address of Principal Executive Offices)
Ronald Tam
49/F, Building T1, Qianhai Financial Centre, Linhai Avenue,
Qianhai
Shenzhen-Hong
Kong Cooperation Zone, Shenzhen 518000
People’s Republic of China
Telephone: +86 755 3689 9088
E-mail:
tanguohao@huize.com
(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
 
Title of Each Class
 
Trading
Symbol
 
Name of Each Exchange
On Which Registered
American depositary shares (each representing 20 Class A common shares, par value US$0.00001 per share) Class A common shares, par value US$0.00001 per share*
*Not for trading, but only in connection with the listing on the Nasdaq Global Market of American depositary shares.
 
HUIZ
 
Nasdaq Global Market
Securities registered or to be registered pursuant to Section 12(g) of the Act:
None
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
(Title of Class)
 
 
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:
As of December 31, 2021, there were (i) 886,166,726 Class A common shares issued and outstanding, par value US$0.00001 per share, and (ii) 150,591,207 Class B common shares issued and outstanding, par value US$0.00001 per share.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ☐  Yes    ☒  No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    ☐  Yes    ☒  No
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    ☒  Yes    ☐  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
 
Large accelerated filer
 
  
Accelerated filer
 
 
Non-accelerated filer
 
           
 
 
 
  
 
 
 
 
Emerging growth company
 
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13 (a) of the Exchange Act.  
 
The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accountant firm that prepared or issued its audit report.  
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
 
        U.S. GAAP  ☒
 
        International Financial Reporting Standards as issued
 
 
  
 
  
Other  ☐                
 
 
        by the International Accounting Standards Board   ☐
 
 
  
 
  
 
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.    ☐  Item 17    ☐  Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    ☐  Yes      No
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.    ☐  Yes    ☐  No
 
 
 

Table of Contents
TABLE OF CONTENTS
 
  
 
1
 
  
 
3
 
 
  
 
4
 
Item 1.
 
  
 
4
 
Item 2.
 
  
 
4
 
Item 3.
 
  
 
4
 
Item 4.
 
  
 
71
 
ITEM 4.A.
 
  
 
112
 
Item 5.
 
  
 
112
 
Item 6.
 
  
 
130
 
Item 7.
 
  
 
139
 
Item 8.
 
  
 
141
 
Item 9.
 
  
 
142
 
Item 10.
 
  
 
142
 
Item 11.
 
  
 
152
 
Item 12.
 
  
 
153
 
 
  
 
156
 
Item 13.
 
  
 
156
 
Item 14.
 
  
 
156
 
Item 15.
 
  
 
156
 
Item 16.A.
 
  
 
158
 
Item 16.B.
 
  
 
158
 
Item 16.C.
 
  
 
158
 
Item 16.D.
 
  
 
158
 
Item 16.E.
 
  
 
159
 
Item 16.F.
 
  
 
159
 
Item 16.G.
 
  
 
159
 
Item 16.H.
 
  
 
160
 
ITEM 16.I.
 
  
 
160
 
 
  
 
161
 
Item 16.
 
  
 
161
 
Item 17.
 
  
 
161
 
Item 18.
 
  
 
161
 

Table of Contents
INTRODUCTION
In this annual report on
Form 20-F,
or this annual report, except where the context otherwise requires and for purposes of this annual report only:
 
   
“ADRs” are to the American depositary receipts which may evidence the ADSs;
 
   
“ADSs” are to the American depositary shares, each of which represents 20 Class A common shares;
 
   
“China” or the “PRC” are to the People’s Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan;
 
   
“Class A common shares” are to our Class A common shares, par value $0.00001 per share, carrying one vote per share;
 
   
“Class B common shares” are to our Class B common shares, par value $0.00001 per share, carrying 15 votes per share;
 
   
“common shares” are to our Class A common shares and/or our Class B common shares, par value US$0.00001 per share, as the context may require;
 
   
“GWP” are to gross written premiums, which include first year premiums and renewal premiums where applicable;
 
   
“insurer partners” are to the insurance companies we work with who underwrite insurance products on our platform;
 
   
“insurance clients” are to purchasers of insurance products we distribute through our platform; for travel insurance products, travel agencies usually purchase policies for multiple individuals, and we count each purchasing travel agency as an insurance client, and each such individual protected by any single policy as an insured;
 
   
“insured” are to individuals that are insured under insurance policies; when calculating the number of insured for any given period, we eliminate duplicates so that an insured protected by more than one policy during the period would be counted as one insured for such period; when calculating the cumulative number of insured, we eliminate duplicates so that an insured protected by more than one policy through our platform would be counted as one insured;
 
   
“our WFOE” are to Zhixuan International Management Consulting (Shenzhen) Co., Ltd.;
 
   
“RMB” and “Renminbi” are to the legal currency of China;
 
   
“US$,” “U.S. dollars,” “$,” and “dollars” are to the legal currency of the United States;
 
   
“VIE” are to Shenzhen Huiye Tianze Investment Holding Co., Ltd.;
 
   
“we,” “us,” “our company” and “our” are to Huize Holding Limited, our Cayman Islands holding company and where the context may require, include its subsidiaries, and, in the context of describing our operations and consolidated financial information, its consolidated variable interest entity and the subsidiaries of the consolidated variable interest entity in China.
When disclosing our operating matrix, we only took into consideration our business operation in mainland China. An insurance product with a term that is longer than one year is categorized as a long-term insurance product. An independent platform refers to a platform that is not affiliated with insurance companies or other insurance industry participants.

Table of Contents
Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi in this annual report are made at a rate of RMB6.3726 to US$1.00, the exchange rate in effect as of December 31, 2021 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. We make no representation that any Renminbi or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or Renminbi, as the case may be, at any particular rate, or at all.
 
 
2

Table of Contents
FORWARD-LOOKING INFORMATION
This annual report contains forward-looking statements that reflect our current expectations and views of future events. These forward looking statements are made under the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Known and unknown risks, uncertainties and other factors, including those listed under “Item 3. Key Information—D. Risk Factors,” may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.
You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include statements relating to:
 
   
our mission, goals and strategies;
 
   
our future business development, financial conditions and results of operations;
 
   
the expected growth of insurance industry in China;
 
   
our expectations regarding demand for and market acceptance of our products and services;
 
   
our expectations regarding our relationships with insurance clients, insurance companies and other partners;
 
   
competition in our industry;
 
   
our proposed use of proceeds;
 
   
relevant government policies and regulations relating to our industry; and
 
   
potential impact of
COVID-19
pandemic on our current and future business development, financial condition and results of operations.
These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may later be found to be incorrect. Our actual results could be materially different from our expectations. Other sections of this annual report include additional factors that could adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. You should read thoroughly this annual report and the documents that we refer to with the understanding that our actual future results may be materially different from, or worse than, what we expect. We qualify all of our forward-looking statements by these cautionary statements.
This annual report contains certain data and information that we obtained from various government and private publications. Statistical data in these publications also include projections based on a number of assumptions. The insurance industry may not grow at the rate projected by market data, or at all. Failure of this market to grow at the projected rate may have a material and adverse effect on our business and the market price of the ADSs. In addition, the rapidly evolving nature of this industry results in significant uncertainties for any projections or estimates relating to the growth prospects or future condition of our market. Furthermore, if any one or more of the assumptions underlying the market data are later found to be incorrect, actual results may differ from the projections based on these assumptions. You should not place undue reliance on these forward-looking statements.
 
3

Table of Contents
The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in this annual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this annual report and the documents that we refer to in this annual report and exhibits to this annual report completely and with the understanding that our actual future results may be materially different from what we expect.
PART I.
 
ITEM 1.
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
 
ITEM 2.
OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
 
ITEM 3.
KEY INFORMATION
Our Holding Company Structure and Contractual Arrangements with the VIE
Huize Holding Limited is not an operating company but rather a Cayman Islands holding company with no equity ownership in its VIE. Our Cayman Islands holding company does not conduct business operations directly. We conduct our operations in China primarily through (i) the VIE with which we have maintained contractual arrangements, and (ii) the VIE’s subsidiaries in China. PRC laws and regulations restrict and impose conditions on foreign direct investment in companies involved in internet-based business and insurance intermediary business. Therefore, we operate such business in China through the variable interest entity, Shenzhen Huiye Tianze Investment Holding Co., Ltd., which we refer to as the VIE in this annual report, and its subsidiaries in China, and rely on contractual arrangements among our WFOE, the VIE and its shareholders to control the business operations of the VIE. Investors in our ADSs thus are not purchasing direct equity interest in our operating entities in China but instead are purchasing equity interest in a Cayman Islands holding company. As used in this annual report, “Huize,” “we,” “us,” “our company” or “our” refers to Huize Holding Limited, and where the context requires, includes its subsidiaries, and, in the context of describing our operations and consolidated financial information, the VIE and its subsidiaries in China.
A series of contractual agreements, including power of attorney, equity pledge agreement, exclusive business cooperation agreement and exclusive option and equity custody agreement, have been entered into by and among our WFOE, the VIE and its shareholders. In particular, through:
 
  (i)
the power of attorney, pursuant to which each shareholder of the VIE irrevocably authorized our WFOE or any person designated by our WFOE to act as its
attorney-in-fact
to exercise all of its rights as a shareholder of the VIE, and the equity pledge agreement, pursuant to which the shareholders of the VIE have pledged the 100% equity interests in the VIE to our WFOE to guarantee performance by the shareholders of their obligations under the exclusive business cooperation agreement, exclusive option and equity custody agreement and power of attorney, we retain effective control over the VIE;
 
  (ii)
the exclusive business cooperation agreement, pursuant to which our WFOE has the exclusive right to provide the VIE with comprehensive technology and business support as well as the relevant consultations services required by the business of the VIE, or to appoint a third party to provide the VIE with such services, we may receive substantially all economic benefits from the VIE; and
 
  (iii)
the exclusive option and equity custody agreement, pursuant to which each of the shareholders of the VIE has irrevocably granted our WFOE an exclusive option to purchase, or have its designated third party to purchase, at its discretion, all or part of his or its equity interests in the VIE and/or the assets that the VIE holds at a nominal consideration or the lowest price permitted by applicable PRC law, we have the option to purchase the equity interest in and assets of the VIE at low cost.
 
4

Table of Contents
The VIE is consolidated for accounting purposes; however, neither our Cayman Islands holding company nor the investors in the holding company have an equity ownership or direct investment in the VIE. Our Cayman Island holding company is considered the ultimate primary beneficiary of the VIE and consolidates the VIE and its subsidiaries as required by Accounting Standards Codification topic 810, Consolidation. Accordingly, we treat the VIE as our consolidated entity under U.S. GAAP and we consolidate the financial results of the VIE in our consolidated financial statements in accordance with U.S. GAAP. For more details of these contractual arrangements, see “Item 4. Information on the Company—C. Organizational Structure—Contractual Arrangements with The VIE and Its Shareholder.”
Our corporate structure is subject to risks associated with our contractual arrangements with the VIE. Our Cayman Islands holding company that investors own equity interest in may never directly hold equity interests in the businesses that are conducted by the VIE. If the PRC government finds that the agreements that establish the structure for operating our business do not comply with PRC laws and regulations, or if these regulations or their interpretations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. Our holding company, our PRC subsidiary, the VIE, and investors of our company face uncertainty about potential future actions by the PRC government that could affect the enforceability of the contractual arrangements with the VIE and, consequently, significantly affect the financial performance of the VIE and our company as a whole. For a detailed description of the risks associated with our corporate structure, please refer to risks disclosed under “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure.” In addition, the contractual arrangements may not be as effective as equity ownership in providing us with control over the VIE, and we may incur substantial costs to enforce the terms of the arrangements. Uncertainties in the PRC legal system may limit our ability, as a Cayman Islands holding company, to enforce these contractual arrangements. Meanwhile, based on officially published and publicly available judgements, the legality and validity of VIE contractual arrangements have not been tested in a court of law in the PRC. There are very few precedents as to whether contractual arrangements would be judged to form effective control over the relevant VIE through the contractual arrangements, or how contractual arrangements in the context of a variable interest entity should be interpreted or enforced by the PRC courts. Should legal actions become necessary, we cannot guarantee that the court will rule in favor of the enforceability of the variable interest entity contractual arrangements. In the event we are unable to enforce these contractual arrangements, or if we suffer significant delay or other obstacles in the process of enforcing these contractual arrangements, we may not be able to exert effective control over the VIE, and our ability to conduct our business may be materially adversely affected. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure—We rely on contractual arrangements with the VIE, and its shareholders for our operations in China, which may not be as effective as equity ownership in providing operational control,” and “—The shareholders and directors of the VIE may have potential conflicts of interest with us, and if any such conflicts of interest are not resolved in our favor, our business may be materially and adversely affected.”
 
5

Table of Contents
The following diagram illustrates our current corporate structure, which includes our significant subsidiaries, the VIE and its material subsidiaries as of the date of this annual report:
 
 
 
Note
 
(1)
Shareholders of Shenzhen Huiye Tianze Investment Holding Co., Ltd., or Huiye Tianze, are: (1) Shenzhen Huidecheng Investment Development Limited Partnership and Shenzhen Huideli Consulting Management Limited Partnership, both as our PRC ESOP holding entities, holding an aggregate of 27.56% shares in Huiye Tianze; (2) PRC holding entities of the shareholders of our Cayman Islands holding company, holding shares in Huiye Tianze in a shareholding structure substantially identical to their respective shareholding in our company, and the PRC holding entity of SAIF IV Healthcare (BVI) Limited, a former shareholder of our Cayman Islands holding company.
We face various legal and operational risks and uncertainties associated with being based in or having our operations primarily in China and the complex and evolving PRC laws and regulations. For example, we face risks associated with regulatory approvals on offerings conducted overseas by and foreign investment in China-based issuers, the use of the VIE, anti-monopoly regulatory actions, oversight on cybersecurity and data privacy, as well as the lack of PCAOB inspection on our auditors, which may impact our ability to conduct certain businesses, accept foreign investments, or list on or remain listed on a United States or other foreign exchange. These risks could result in a material adverse change in our operations and the value of our ADSs, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause the value of such securities to significantly decline or become worthless. In addition, since our auditor is headquartered in the mainland of China, a jurisdiction where the PCAOB has been unable to conduct inspections without the approval of the Chinese authorities, our auditor is currently not inspected by the PCAOB. As a result, our ADSs may be delisted and our ADSs and shares may be prohibited from trading in the
over-the-counter
market under the Holding Foreign Companies Accountable Act. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections deprives our investors with the benefits of such inspections. For a detailed description of risks related to doing business in China, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China.”
 
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PRC government’s significant authority in regulating our operations and its oversight and control over offerings conducted overseas by, and foreign investment in, China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Implementation of industry-wide regulations in this nature may cause the value of such securities to significantly decline or become worthless. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—The PRC government’s significant oversight and discretion over our business operation could result in a material adverse change in our operations and the value of our ADSs.”
Risks and uncertainties arising from the legal system in China, including risks and uncertainties regarding the enforcement of laws and quickly evolving rules and regulations in China, could result in a material adverse change in our operations and the value of our ADSs. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to you and us.”
Permissions Required from the PRC Authorities for Our Operations
We conduct our business primarily through our PRC subsidiary, the VIE and its subsidiaries in China. Our operations in China are governed by PRC laws and regulations. As of the date of this annual report, as advised by Commerce & Finance Law Offices, our legal counsel as to PRC Law, our PRC subsidiary, the VIE and its subsidiaries have obtained the requisite licenses and permits from the PRC government authorities that are material for the business operations of our holding company, the VIE and its subsidiaries in the PRC in all material respects, including, among others, the value-added telecommunications business operating license, the license to operate insurance brokerage business, the license to operate insurance agency business, the record-filing certificate on insurance adjustment assessment business and the record-filing certificate on the graded protection of information system security. Any failure to obtain or delay in obtaining such permissions or approvals, or a rescission of any such approval if obtained by us, would subject us to sanctions by the applicable PRC regulatory authorities. These regulatory authorities may impose fines and penalties on our operations in China, limit our ability to pay dividends outside of China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from our offshore offerings into China or take other actions that could materially and adversely affect our business, financial condition, results of operations, and prospects, as well as the trading price of our ADSs. Given the uncertainties of interpretation and implementation of relevant laws and regulations and the enforcement practice by relevant government authorities, we may be required to obtain additional licenses, permits, filings or approvals for the functions and services of our platform in the future. For more detailed information, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Business and Industry—Failure to obtain, renew, or retain licenses, permits or approvals may affect our ability to conduct or expand our business” and “—We may be adversely affected by the complexity, uncertainties and changes in PRC regulations of internet-related businesses and companies, and any lack of requisite approvals, licenses or permits applicable to our business may have a material adverse effect on our business and results of operations.”
Furthermore, as advised by Commerce & Finance Law Offices, our legal counsel as to PRC Law, the VIE or one of its subsidiaries in China specified by us may be required to fulfill filing procedures and obtain approval from the China Securities Regulatory Commission, or the CSRC, in connection with offering and listing in an overseas market. Under current PRC laws, regulations and regulatory rules, our operating entities in China may also be required to go through cybersecurity review by the Cyberspace Administration of China, or the CAC. As of the date of this annual report, we have not been required to file with the CSRC, nor have we been subject to any cybersecurity review initiated by the CAC. If (i) we fail to obtain the relevant approval or complete other filing procedures, (ii) we inadvertently conclude that such approval or filing procedures are not required, while they actually are required, or (iii) we are required to obtain the relevant approval or complete other filing procedures as a result of changes of applicable laws, regulations or interpretations thereof but fail to do so, we may face sanctions by the CSRC or other PRC regulatory authorities, which may include fines and penalties on our operations in China, limitations on our operating privileges in China, restrictions on or prohibition of the payments or remittance of dividends by our subsidiaries in China, restrictions on or delays to our future financing transactions offshore, or other actions that could have a material and adverse effect on our business, financial condition, results of operations, reputation and prospects, as well as the trading price of our ADSs. For more detailed information, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—The approval of and filing with the CSRC or other PRC government authorities may be required in connection with our offshore offerings under PRC law, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such filing” and “—Our business generates and processes a large amount of data, and is subject to complex and evolving Chinese and international laws and regulations regarding data privacy and cybersecurity. Any failure to protect the core data, important data or a large amount of personal information as required by relevant laws and regulations, or improper use or disclosure of such data may subject us to liabilities imposed by data privacy and protection laws and regulations, negatively impact our reputation, and deter our clients from using our online platform.”
 
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Cash Flows through Our Organization
We have established stringent controls and procedures for cash flows within our organization. Each transfer of cash between our Cayman Islands holding company and a subsidiary, the VIE or the subsidiaries of the VIE is subject to internal approval. The cash of our group is under the unified management of our finance department, and is dispatched and applied to each operating entity based on the budget and operating conditions of the specific operating entity. Each cash requirement, after raised by an operating entity, is required to go through a three-level review process of our finance department. The funding team of the finance department will allocate the cash to the operating entity after the application for cash requirement is approved by the responsible person in the finance department. To date, we have not had difficulty in transferring cash between our Cayman Islands holding company and a subsidiary, the VIE or the subsidiaries of the VIE. The cash inflows of the Cayman Islands holding company were primarily generated from our initial public offering in February 2020. In 2020 and 2021, the Cayman Islands holding company transferred cash in the total amount of RMB196.7 million (US$30.9 million) to our PRC subsidiary and the subsidiaries of the VIE through our offshore intermediate holding entities in two methods: (i) Hong Kong Smart Choice Ventures Limited, our Hong Kong subsidiary, made capital contribution to Zhixuan International Management Consulting (Shenzhen) Co., Ltd., our WFOE, in the amount of RMB0.5 million in 2020, and RMB129.5 million (US$20.3 million) in 2021; our WFOE and its subsidiary then provided inter-company loan of RMB128.0 million (US$20.1 million) to the VIE in 2021; (ii) through cross-border guarantee, where our Hong Kong subsidiary provided guarantee to certain China-based commercial banks or their offshore branches by pledging offshore cash deposits, and the onshore branches of these banks granted loans to the subsidiaries of the VIE, namely, Huize Insurance Brokerage Co., Ltd. and Shenzhen Huize Shidai Co., Ltd, in the amount of RMB85.4 million in 2020, and RMB14.0 million (US$2.2 million) in 2021. The subsidiaries of the VIE repaid the loan in a total amount of RMB32.7 million (US$5.1 million) in 2021.
For the years ended December 31, 2019, 2020 and 2021, no assets other than cash were transferred between our Cayman Islands holding company and a subsidiary, no subsidiaries paid dividends or made other distributions to the Cayman Islands holding company, and no dividends or distributions were paid or made to U.S. investors. We intend to settle service fees under our contractual arrangements with the VIE when there is a business need and as our WFOE sees fit. For details of the financial position, cash flows and results of operations of the VIE and its subsidiaries, see “Item 3. Financial Information Related to the Consolidated Variable Interest Entity.”
As a Cayman Islands holding company, we may receive dividends from our PRC subsidiary through Hong Kong Smart Choice Ventures Limited. The Enterprise Income Tax Law of the PRC, or the EIT Law, and its implementing rules, provide that dividends paid by a PRC entity to a nonresident enterprise for income tax purposes is subject to PRC withholding tax at a rate of 10%, subject to reduction by an applicable tax treaty with China.
Dividends paid by our wholly foreign-owned subsidiary in China to our intermediate holding company in Hong Kong will be subject to a withholding tax rate of 10%, unless the relevant Hong Kong entity satisfies all the requirements under the Arrangement between China and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and receives approval from the relevant tax authority. If our Hong Kong subsidiary satisfies all the requirements under the tax arrangement and receives approval from the relevant tax authority, then the dividends paid to the Hong Kong subsidiary would be subject to withholding tax at the standard rate of 5%. Effective from November 1, 2015, the above mentioned approval requirement has been abolished, but a Hong Kong entity is still required to file application package with the relevant tax authority, and settle the overdue taxes if the preferential 5% tax rate is denied based on the subsequent review of the application package by the relevant tax authority. Furthermore, effective from January 1, 2020, a Hong Kong entity is entitled to judge by itself that it meets the conditions for entitlement to such treaty benefits. It could obtain such entitlement by itself at the time of making tax returns, or at the time of making withholding declarations via withholding agents. At the same time, the Hong Kong entity shall collect, gather and retain relevant materials for future reference in accordance with applicable rules, and shall accept the
follow-up
administration of tax authorities. In addition, there is no assurance that the PRC government will not intervene or impose restrictions on our ability to transfer cash in the future. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure—We may rely principally on dividends and other distributions on equity paid by our WFOE to fund any cash and financing requirements we may have, and any limitation on the ability of our WFOE to pay dividends to us could have a material adverse effect on our ability to conduct our business.”
 
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If our holding company in the Cayman Islands or any of our subsidiaries outside of the mainland of China were deemed to be a “resident enterprise” under the PRC Enterprise Income Tax Law, it would be subject to enterprise income tax on its worldwide income at a rate of 25%. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China— If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our
non-PRC
shareholders or ADS holders.”
For purposes of illustration, the following discussion reflects the hypothetical taxes that might be required to be paid within China, assuming that: (i) we have taxable earnings, and (ii) we determine to pay dividends in the future:
 
    
Taxation Scenario
(1)
 
    
Statutory Tax and Standard Rates
 
Hypothetical
pre-tax
earnings
(2)
     100
Tax on earnings at statutory rate of 25%
(3)
     (25 %) 
Net earnings available for distribution
     75
Withholding tax at standard rate of 10%
(4)
     (7.5 %) 
Net distribution to Parent/Shareholders
     67.5
 
Notes:
 
(1)
For purposes of this example, the tax calculation has been simplified. The hypothetical book
pre-tax
earnings amount, not considering timing differences, is assumed to equal Chinese taxable income.
(2)
Under the terms of the contractual arrangements among our WFOE, the VIE and its Shareholders, our WFOE may charge the VIE for services provided to the VIE. These fees shall be recognized as expenses of the VIE, with a corresponding amount as service income by our WFOE and eliminate in consolidation. For income tax purposes, our WFOE and VIE file income tax returns on a separate company basis. The fees paid are recognized as a tax deduction by the VIE and as income by our WFOE and are tax neutral.
(3)
For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate of 25% would be effective.
(4)
The EIT Law of the PRC imposes a withholding income tax of 10% on dividends distributed by a Foreign Invested Enterprises (“FIE”) to its immediate holding company outside of China. A lower withholding income tax rate of 5% is applied if the FIE’s immediate holding company is registered in Hong Kong or other jurisdictions that have a tax treaty arrangement with China, subject to a qualification review at the time of the distribution. For purposes of this hypothetical example, the table above assumes a maximum tax scenario under which the full withholding tax rate of 10% would be applied.
The table above has been prepared under the assumption that all profits of the VIE will be distributed as fees to our WFOE under tax neutral contractual arrangements. If in the future, the accumulated earnings of the VIE exceed the fees paid to our PRC subsidiaries (or if the current and contemplated fee structure between the intercompany entities is determined to be
non-substantive
and disallowed by Chinese tax authorities), the VIE could, as a matter of last resort, make a
non-deductible
transfer to our WFOE for the amounts of the stranded cash in the VIE. This would result in such transfer being
non-deductible
expenses for the VIE but still taxable income for our WFOE.
Under PRC laws and regulations, we are subject to restrictions on foreign exchange and cross-border cash transfers, including to U.S. investors. Our ability to distribute earnings to the holding company and U.S. investors is also limited. We are a Cayman Islands holding company and we may rely on dividends and other distributions on equity paid by our PRC subsidiary, which in turn relies on consulting and other fees paid to us by the VIE, for our cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur. When any of our PRC subsidiary incurs debt on its own behalf, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.
Our WFOE, being a foreign-invested enterprise established in China, is required to make appropriations to certain statutory reserves, namely, a general reserve fund, an enterprise expansion fund, a staff welfare fund and a bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. Our WFOE is required to allocate at least 10% of its
after-tax
profits after making up the previous year’s accumulated losses each year, if any, to a general reserve fund until such fund has reached 50% of its respective registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus funds are at the discretion of the board of directors of the PRC subsidiary.
Under PRC laws and regulations, our WFOE, the VIE and its subsidiaries are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets to us. The amounts restricted include the
paid-up
capital and the statutory reserve funds of our PRC subsidiaries and the net assets of the consolidated variable interest entity in which we have no legal ownership.
 
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In addition, our WFOE, the VIE and its subsidiaries generate their revenue primarily in Renminbi, which is not freely convertible into other currencies. As a result, any restriction on currency exchange may limit the ability of our PRC subsidiaries to pay dividends to us. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—We may rely principally on dividends and other distributions on equity paid by our WFOE to fund any cash and financing requirements we may have, and any limitation on the ability of our WFOE to pay dividends to us could have a material adverse effect on our ability to conduct our business,” and “—Government control of currency conversion and future fluctuation of Renminbi exchange rates could have a material adverse effect on our results of operations and financial condition, and may reduce the value of, and dividends payable on, our Shares in foreign currency terms.”
 
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Financial Information Related to the Consolidated Variable Interest Entity
The following table presents the condensed consolidating schedule of financial position for the consolidated variable interest entity and other entities as of the dates presented.
Selected Condensed Consolidated Statements of Income Information
 
    
For the Year Ended December 31, 2019
   
For the Year Ended December 31, 2020
   
For the Year Ended December 31, 2021
 
    
Parent
company
   
Subsidiaries
of parent
company
   
WFOE
   
VIE and its
subsidiaries
   
Elimination
   
Consolidated
   
Parent
company
   
Subsidiaries
of parent
company
   
WFOE
   
VIE and its
subsidiaries
   
Elimination
   
Consolidated
   
Parent
company
   
Subsidiaries
of parent
company
   
WFOE
   
VIE and its
subsidiaries
   
Elimination
   
Consolidated
 
 
(Note 1)
   
(Note 1)
   
(Note 1)
 
    
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
 
Operating revenue
                                    
Brokerage commission income
     —         8,409       —         973,715       —         982,124       —         —         —         1,215,434       —         1,215,434       —         865       —         2,231,388       —         2,232,253  
Other income
     —         —         —         11,195       —         11,195       228       —         —         4,560       —         4,788       1,269       —         11,494       —         12,763  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total operating revenue
     —         8,409       —         984,910       —         993,319       228       —         —         1,219,994       —         1,220,222       1,269       865       —         2,242,882       —         2,245,016  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Operating costs and expenses
     —         —         —         —         —         —         —         —         —         —         —         —               —        
Cost of revenue
     —         (6,625     —         (622,906     —         (629,531     —         —         —         (813,507     —         (813,507     —         (317     —         (1,687,770     —         (1,688,087
Other cost
     —         —         —         (1,837     —         (1,837     —         —         —         (2,846     —         (2,846     —       —       —       (2,670     —       (2,670
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total operating costs
     —         (6,625     —         (624,743     —         (631,368     —         —         —         (816,353     —         (816,353     —         (317     —         (1,690,440     —         (1,690,757
Selling expenses
     —         (1,546     —         (163,119     —         (164,665     —         —         —         (230,438     —         (230,438     —         (4,268     —         (346,305     —         (350,573
General and administrative expenses
     (521     (7,936     (35     (153,324     —         (161,816     (4,611     (8,668     (7     (136,921     —         (150,207     (5,994     (18,751     (52     (172,822     —         (197,619
Research and development expenses
     —         —         —         (33,831     —         (33,831     —         —         —         (49,135     —         (49,135     —         —         —         (120,478     —         (120,478
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total operating costs and expenses
     (521     (16,107     (35     (975,017     —         (991,680     (4,611     (8,668     (7     (1,232,847     —         (1,246,133     (5,994     (23,336     (52     (2,330,045     —         (2,359,427
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Operating (loss)/income
     (521     (7,698     (35     9,893       —         1,639       (4,383     (8,668     (7     (12,853     —         (25,911     (4,725     (22,471     (52     (87,163     —         (114,411
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Other income/(expenses)
                                    
Interest (expenses)/income
     —         7       —         (197     —         (190     11       645       —         (1,813     —         (1,157     4       840       42       (4,092     —         (3,206
Unrealized exchange (loss)/income
     (97     38       —         421       —         362       421       (14     5       (421     —         (9     —         (59     —         —         —         (59
Investment income
     —         718       —         —         —         718       —         —         —         137       —         137       —         (3,959     —         (1,369     —         (5,328
Others, net
     —         (14     —         12,690       —         12,676       —         24       —         10,153       —         10,177       —         —         —         12,627       —         12,627  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Profit before income tax, and share of (loss)/income of equity method investee
     (618     (6,949     (35     22,807       —         15,205       (3,951     (8,013     (2     (4,797     —         (16,763     (4,721     (25,649     (10     (79,997     —         (110,377
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income tax expense
     —         (37     —         (20     —         (57     —         —         —         (1,768     —         (1,768     —         —         —         —         —         —    
Share of income/(loss) of equity method investee
     —         —         —         (180     —         (180     —         —         —         239       —         239       —         —         —         2,660       —         2,660  
Share of income/(loss) of subsidiaries and VIE
     15,520       22,572       22,607       —         (60,699 )
(i)
 
    —         (14,341     (6,328     (6,326     —        
26,995
 
(i)
 
    —         (102,945     (77,296     (77,286       257,527
(i)
 
    —    
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
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Table of Contents
    
For the Year Ended December 31, 2019
   
For the Year Ended December 31, 2020
   
For the Year Ended December 31, 2021
 
    
Parent
company
   
Subsidiaries
of parent
company
    
WFOE
    
VIE and its
subsidiaries
    
Elimination
   
Consolidated
   
Parent
company
   
Subsidiaries
of parent
company
   
WFOE
   
VIE and its
subsidiaries
   
Elimination
   
Consolidated
   
Parent
company
   
Subsidiaries
of parent
company
   
WFOE
   
VIE and its
subsidiaries
   
Elimination
   
Consolidated
 
  
(Note 1)
   
(Note 1)
   
(Note 1)
 
    
RMB’000
   
RMB’000
    
RMB’000
    
RMB’000
    
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
 
Net profit/(loss)
     14,902       15,586        22,572        22,607        (60,699     14,968       (18,292     (14,341     (6,328     (6,326     26,995       (18,292     (107,666     (102,945     (77,296     (77,337     257,527       (107,717
  
 
 
   
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net profit/(loss) attributable to
non-controlling
interests
     —         66        —          —          —         66       —         —         —         —         —         —         —         —         —         (51     —         (51
Net profit/(loss) attributable to Huize Holding Limited
     14,902       15,520        22,572        22,607        (60,699     14,902       (18,292     (14,341     (6,328     (6,326     26,995       (18,292     (107,666     (102,945     (77,296     (77,286     257,527       (107,666
  
 
 
   
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Redeemable preferred shares redemption value accretion
     (32,854     —          —          —          —         (32,854     (4,274     —         —         —         —         (4,274     —         —         —         —         —         —    
Allocation to redeemable preferred shares
     (7,431     —          —          —          —         (7,431     1,074       —         —         —         —         1,074       —         —         —         —         —         —    
  
 
 
   
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net (loss)/profit attributable to common shareholders
     (25,383     15,520        22,572        22,607        (60,699     (25,383     (21,492     (14,341     (6,328     (6,326     26,995       (21,492     (107,666     (102,945     (77,296     (77,286     257,527       (107,666
  
 
 
   
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net profit/(loss)
     14,902       15,586        22,572        22,607        (60,699     14,968       (18,292     (14,341     (6,328     (6,326     26,995       (18,292     (107,666     (102,945     (77,296     (77,337     257,527       (107,717
Foreign currency translation adjustment, net of tax
     119       105        —          —          (84 )
(ii)
 
    140       (22,386     451       —         —         (451 )
(ii)
 
    (22,386     (5,323     1,742       —         —         (1,742 )
(ii)
 
    (5,323
  
 
 
   
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Comprehensive income/(loss)
     15,021       15,691        22,572        22,607        (60,783     15,108       (40,678     (13,890     (6,328     (6,326     26,544       (40,678     (112,989     (101,203     (77,296     (77,337     255,785       (113,040
  
 
 
   
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Comprehensive income/(loss) attributable to
non-controlling
interests
     —         87        —          —          —         87       —         —         —         —         —         —         —         —         —         (51     —         (51
Comprehensive income/(loss) attributable to Huize Holding Limited
     15,021       15,604        22,572        22,607        (60,783     15,021       (40,678     (13,890     (6,328     (6,326     26,544       (40,678     (112,989     (101,203     (77,296     (77,286     255,785       (112,989
  
 
 
   
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Note 1:
 
  (i)
The elimination represents equity
pick-up
of net profits and losses in the subsidiaries of the parent company, WFOE and the VIE and its subsidiaries.
  (ii)
The elimination represents equity
pick-up
of other comprehensive income in the subsidiaries of the parent company.
 
12

Table of Contents
Selected Condensed Consolidated Balance Sheets Information
 
    
As at December 31, 2020
   
As at December 31, 2021
 
    
Parent
company
   
Subsidiaries
of parent
company
   
WFOE
   
VIE and its
subsidiaries
   
Elimination
(Note 2)
RMB’000
   
Consolidated
   
Parent
company
   
Subsidiaries
of parent
company
   
WFOE
   
VIE and its
subsidiaries
   
Elimination
(Note 2)
RMB’000
   
Consolidated
 
    
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
   
RMB’000
 
Assets
                        
Current assets
                        
Cash and cash equivalent
     187,217       4,893       529       211,979       —         404,618       16,291       34,783       7,073       323,011       —         381,158  
Restricted cash
     —         106,380       —         217,950       —         324,330       —         56,093       —         127,315       —         183,408  
Contract Assets
     216       —         —         —         —         216       —         —         —         —         —         —    
Account receivables, net of allowance for impairment
     —         —         —         232,589       —         232,589       —         207       —         777,055       —         777,262  
Insurance premium receivables
     —         —         —         1,974       —         1,974       —         —         —         1,217       —         1,217  
Amount due from related parties
     189       62       —         —         —         251       106       22       —         —         —         128  
Prepaid expense and other receivables
     131,895       711       —         66,323       (154,552 )
(i)
 
    44,377       291,666       2,812       128,000       106,865       (451,832 )
(i)
 
    77,511  
Total current assets
     319,517       112,046       529       730,815       (154,552     1,008,355       308,063       93,917       135,073       1,335,463       (451,832     1,420,684  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Non-current
assets
                        
Restricted cash
     —         —         —         —         —         —         —         19,738       —         24,680       —         44,418  
Property, Plant and Equipment, net
     —         34       —         10,217       —         10,251       —         661       —         47,800       —         48,461  
Intangible assets, net
     —         —         —         2,030       —         2,030       —         2,647       —         18,979       —         21,626  
Deferred tax assets
     —         —         —         605       —         605       —         —         —         605       —         605  
Long-term investments
     —         9,195       —         36,889       —         46,084       —         13,551       —         59,450       —         73,001  
Investment in subsidiaries
     179,059       189,606       —         —         (368,665 )
(ii)
 
    —         76,030       239,113       —         —         (315,143 )
(ii)
 
    —    
Investment in VIE
     —         —         189,159       —         (189,159 )
(ii)
 
    —         —         —         109,172       —         (109,172 )
(ii)
 
    —    
Operating lease
right-of-use
assets
     —         —         —         267,352       —         267,352       —         5,939       —         241,880       —         247,819  
Goodwill
     —         —         —         461       —         461       —         —         —         461       —         461  
Other Assets
     —         —         —         838       —         838       —         —         —         379       —         379  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
non-current
assets
     179,059       198,835       189,159       318,392       (557,824     327,621       76,030       281,649       109,172       394,234       (424,315     436,770  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total assets
     498,576       310,881       189,688       1,049,207       (712,376     1,335,976       384,093       375,566       244,245       1,729,697       (876,147     1,857,454  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Liabilities, and Shareholders’ Equity
                        
Short-term borrowings
     —         —         —         31,540       —         31,540       —         —         —         216,710       —         216,710  
Accounts payable
     —         —         —         227,532       —         227,532       —         186       —         680,183       —         680,369  
Insurance premium payables
     —         —         —         187,219       —         187,219       —         —         —         124,019       —         124,019  
Contract liabilities
     —         —         —         —         —         —         4,555       —         —         2,681       —         7,236  
Other payables and accrued expenses
     14,836       131,368       82       39,419       (154,552 )
(i)
 
    31,153       17,892       292,602       5,132       207,461       (451,832 )
(i)
 
    71,255  
Payroll and welfare payable
     10,901       454       —         52,564       —         63,919       1,357       —         —         92,094       —         93,451  
Income taxes payable
     —         —         —         2,440       —         2,440       —         —         —         2,440       —         2,440  
Operating lease liabilities
     —         —         —         12,763       —         12,763       —         2,524       —         12,362       —         14,886  
Amount due to related parties
     —         —         —         —         —         —         —         —         —         11,875       —         11,875  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total current liabilities
     25,737       131,822       82       553,477       (154,552     556,566       23,804       295,312       5,132       1,349,825       (451,832     1,222,241  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
                                                                       —    
Non-current
liabilities
                        
Long-term borrowings.
     —         —         —         53,860       —         53,860       —         —         —         20,000       —         20,000  
Deferred tax liabilities
     —         —         —         605       —         605       —         437       —         4,455       —         4,892  
Operating lease liabilities
     —         —         —         252,106       —         252,106       —         3,787       —         245,396       —         249,183  
Payroll and welfare payable
     4,156       —         —         —         —         4,156       225       —         —         —         —         225  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
               
Total
non-current
liabilities
     4,156       —         —         306,571       —         310,727       225       4,224       —         269,851       —        
274,30
0
 
 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total liabilities
     29,893       131,822       82       860,048       (154,552     867,293       24,029       299,536       5,132       1,619,676       (451,832     1,496,541  
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Shareholders’ equity
                        
Common shares
     —         —         485       44,766       (45,251 )
(ii)
 
    —         —         —         129,989       44,766       (174,755 )
(ii)
 
    —    
Class A common shares
     62       —         —         —         —         62       62       —