Huize Holding Limited Reports Second Quarter 2024 Unaudited Financial Results
Rhea-AI Summary
Huize Holding (NASDAQ: HUIZ) reported its Q2 2024 unaudited financial results. Key highlights:
- GWP slightly decreased to RMB1,336.9 million, down 3.0% year-over-year
- Renewal premiums increased by 42.8% to RMB685.4 million
- Gross profit margin improved to 31.3%, up 2.3 percentage points sequentially
- Operating revenue decreased 23.2% to RMB283.0 million
- Net loss was RMB23.3 million, compared to a net profit of RMB14.1 million in Q2 2023
- Cash and cash equivalents stood at RMB236.2 million as of June 30, 2024
The company highlighted its resilient business performance, improved customer quality, and expansion into international markets. Huize's CEO emphasized their focus on sustainable growth and diversification of revenue streams.
Positive
- Renewal premiums increased by 42.8% year-over-year to RMB685.4 million
- Gross profit margin improved to 31.3%, up 2.3 percentage points sequentially
- Long-term insurance products maintained a GWP contribution above 90% for 19 consecutive quarters
- Record-high average FYP ticket size of RMB78,000 for savings products
- High 13th and 25th-month persistency ratios for long-term life and health insurance products at above 95%
- International business revenue contribution increased to 11% in Q2 2024
Negative
- GWP decreased by 3.0% year-over-year to RMB1,336.9 million
- Operating revenue decreased by 23.2% year-over-year to RMB283.0 million
- Net loss of RMB23.3 million compared to net profit of RMB14.1 million in Q2 2023
- FYP decreased by 27.4% year-over-year to RMB651.5 million
- Cash and cash equivalents decreased to RMB236.2 million from RMB249.3 million as of December 31, 2023
News Market Reaction 1 Alert
On the day this news was published, HUIZ declined 14.38%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SHENZHEN, China, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Huize Holding Limited, (“Huize”, the “Company” or “we”) (NASDAQ: HUIZ), a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial and Operational Highlights
- Resilient business performance: Gross written premiums (“GWP”) moderated slightly to RMB1,336.9 million in the second quarter of 2024, compared to RMB1,377.7 million in the same period of 2023. Renewal premiums increased by
42.8% year-over-year to RMB685.4 million in the second quarter of 2024, driven by our high-quality customer base and continued robust persistency ratios. - Sequential improvement in gross profit margin: Gross profit margin was
31.3% in the second quarter of 2024, up by 2.3 percentage points sequentially, mainly driven by our disciplined control on channel expenses and optimization in product mix.
- Cumulative number of insurance clients served increased to 9.8 million as of June 30, 2024. Huize cooperated with 125 insurer partners, including 78 life and health insurance companies and 47 property and casualty insurance companies, as of June 30, 2024.
- As of June 30, 2024, cash and cash equivalents were RMB236.2 million (US
$32.5 million ).
Mr. Cunjun Ma, Founder and CEO of Huize, said, “Our business demonstrated resilience amidst a challenging economic and operating environment, with total GWP reaching RMB1.34 billion in the second quarter of 2024. These results reflect our strategic vision and core competencies in attracting high-quality customers, innovating customized products, developing sophisticated AI solutions, and diversifying into international markets.”
“Our long-term insurance products maintained a GWP contribution above
“Our expansion into the international market is gaining traction, with revenue contribution from our international business increasing to
“Looking ahead, we remain committed to enhancing the customer experience by leveraging cutting-edge technology, further solidifying our position as a leading pan-Asian digital insurance platform. We are focused on diversifying our revenue streams by expanding into high-growth markets in Southeast Asia, reinforcing our strategy for sustainable, long-term growth.”
Second Quarter 2024 Financial Results
GWP and operating revenue
GWP facilitated on our platform was RMB1,336.9 million (US
Operating revenue was RMB283.0 million (US
Operating costs
Operating costs were RMB194.4 million (US
Operating expenses
Selling expenses were RMB46.8 million (US
General and administrative expenses were RMB49.7 million (US
Research and development expenses were RMB18.1 million (US
Net profit and Non-GAAP net profit for the period
Net loss was RMB23.3 million (US
Cash and cash equivalents
As of June 30, 2024, the Company’s cash and cash equivalents amounted to RMB236.2 million (US
Conference Call
The Company’s management team will hold an earnings conference call at 8:00 A.M. Eastern Time on Wednesday, September 25, 2024 (8:00 P.M. Beijing/Hong Kong Time on Wednesday, September 25, 2024). Details for the conference call are as follows:
Event Title: Huize Holding Limited’s Second Quarter 2024 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BId0560560e56046b6aebe3fdd2b12cd48
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 Huize Holding Limited
Huize Holding Limited is a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia. Targeting mass affluent consumers, Huize is dedicated to serving consumers for their life-long insurance needs. Its online-to-offline integrated insurance ecosystem covers the entire insurance life cycle and offers consumers a wide spectrum of insurance products, one-stop services, and a streamlined transaction experience across all scenarios. By leveraging AI, data analytics, and digital capabilities, Huize empowers the insurance service chain with proprietary technology-enabled solutions for insurance consultation, user engagement, marketing, risk management, and claims service.
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 U.S. GAAP. We define non-GAAP net profit/(loss) attributable to common shareholders as net profit/(loss) attributable to common shareholders excluding share-based compensation expenses. Such adjustments have no impact on income tax because either the non-GAAP adjustments were recorded at entities located in tax free jurisdictions, such as the Cayman Islands or because the non-GAAP adjustments were recorded at operating entities located in the PRC for which the non-GAAP adjustments were not deductible for tax purposes.
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 U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net profit/(loss) attributable to common shareholders is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP financial measure may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.
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 U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.2672 to US
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Huize’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, business outlook and quotations from management in this announcement, contain forward-looking statements. Huize may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huize’s goal and strategies; Huize’s expansion plans; Huize’s future business development, financial condition and results of operations; Huize’s expectation regarding the demand for, and market acceptance of, its online insurance products; Huize’s expectations regarding its relationship with insurer partners and insurance clients and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing.
Further information regarding these and other risks is included in Huize’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Huize does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
Investor Relations
investor@huize.com
Media Relations
mediacenter@huize.com
Christensen Advisory
In China
Ms. Dee Wang
Phone: +86-10-5900-1548
Email: dee.wang@christensencomms.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
| Huize Holding Limited Unaudited Condensed Consolidated Balance Sheets (all amounts in thousands, except for share and per share data) | |||||||||||
| As of December 31 | As of June 30 | ||||||||||
| 2023 | 2024 | ||||||||||
| RMB | RMB | USD | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 249,258 | 236,161 | 32,497 | ||||||||
| Restricted cash | 42,307 | 46,419 | 6,387 | ||||||||
| Short-term investments | 8,879 | 5,221 | 718 | ||||||||
| Contract assets, net of allowance for doubtful accounts | 41,481 | 65,010 | 8,946 | ||||||||
| Accounts receivables, net of allowance for impairment | 178,294 | 145,906 | 20,077 | ||||||||
| Insurance premium receivables | 927 | 1,646 | 226 | ||||||||
| Amounts due from related parties | 383 | 2,450 | 337 | ||||||||
| Deferred costs | 6,147 | - | - | ||||||||
| Prepaid expense and other receivables | 78,784 | 80,407 | 11,064 | ||||||||
| Total current assets | 606,460 | 583,220 | 80,252 | ||||||||
| Non-current assets | |||||||||||
| Restricted cash | 29,687 | 29,887 | 4,113 | ||||||||
| Contract assets, net of allowance for doubtful accounts | 12,495 | 23,931 | 3,293 | ||||||||
| Property, plant and equipment, net | 54,107 | 50,788 | 6,989 | ||||||||
| Intangible assets, net | 50,743 | 50,436 | 6,940 | ||||||||
| Long-term investments | 76,688 | 70,710 | 9,730 | ||||||||
| Operating lease right-of-use assets | 115,946 | 114,750 | 15,790 | ||||||||
| Other receivables | - | 7,267 | 1,000 | ||||||||
| Goodwill | 461 | 461 | 63 | ||||||||
| Other assets | 419 | 485 | 67 | ||||||||
| Total non-current assets | 340,546 | 348,715 | 47,985 | ||||||||
| Total assets | 947,006 | 931,935 | 128,237 | ||||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | 30,000 | 30,000 | 4,128 | ||||||||
| Accounts payable | 211,905 | 232,854 | 32,042 | ||||||||
| Insurance premium payables | 37,514 | 42,330 | 5,825 | ||||||||
| Contract liabilities | 2,728 | 993 | 137 | ||||||||
| Other payables and accrued expenses | 34,850 | 29,015 | 3,990 | ||||||||
| Payroll and welfare payable | 56,207 | 35,340 | 4,863 | ||||||||
| Income taxes payable | 2,440 | 2,440 | 336 | ||||||||
| Operating lease liabilities | 16,949 | 20,047 | 2,759 | ||||||||
| Amount due to related parties | 2,451 | 1,593 | 219 | ||||||||
| Total current liabilities | 395,044 | 394,612 | 54,299 | ||||||||
| Non-current liabilities | |||||||||||
| Deferred tax liabilities | 12,048 | 12,048 | 1,658 | ||||||||
| Operating lease liabilities | 129,299 | 126,636 | 17,426 | ||||||||
| Payroll and welfare payable | 200 | 1,507 | 207 | ||||||||
| Total non-current liabilities | 141,547 | 140,191 | 19,291 | ||||||||
| Total liabilities | 536,591 | 534,803 | 73,590 | ||||||||
| Shareholders’ equity | |||||||||||
| Class A common shares | 62 | 62 | 9 | ||||||||
| Class B common shares | 10 | 10 | 1 | ||||||||
| Treasury stock | (28,580 | ) | (29,512 | ) | (4,061 | ) | |||||
| Additional paid-in capital | 905,958 | 905,958 | 124,664 | ||||||||
| Accumulated other comprehensive loss | (14,060 | ) | (12,039 | ) | (1,657 | ) | |||||
| Accumulated deficits | (458,237 | ) | (474,678 | ) | (65,318 | ) | |||||
| Total shareholders’ equity attributable to Huize Holding Limited shareholders | 405,153 | 389,801 | 53,638 | ||||||||
| Non-controlling interests | 5,262 | 7,331 | 1,009 | ||||||||
| Total shareholders’ equity | 410,415 | 397,132 | 54,647 | ||||||||
| Total liabilities and shareholders’ equity | 947,006 | 931,935 | 128,237 | ||||||||
| Huize Holding Limited Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) (all amounts in thousands, except for share and per share data) | ||||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | USD | RMB | RMB | USD | |||||||||||||
| Operating revenue | ||||||||||||||||||
| Brokerage income | 355,563 | 271,790 | 37,400 | 643,919 | 573,672 | 78,940 | ||||||||||||
| Other income | 12,628 | 11,161 | 1,536 | 23,182 | 19,591 | 2,696 | ||||||||||||
| Total operating revenue | 368,191 | 282,951 | 38,936 | 667,101 | 593,263 | 81,636 | ||||||||||||
| Operating costs and expenses | ||||||||||||||||||
| Cost of revenue | (238,512 | ) | (187,469 | ) | (25,796 | ) | (412,588 | ) | (405,361 | ) | (55,780 | ) | ||||||
| Other cost | (5,051 | ) | (6,885 | ) | (948 | ) | (10,822 | ) | (9,188 | ) | (1,264 | ) | ||||||
| Total operating costs | (243,563 | ) | (194,354 | ) | (26,744 | ) | (423,410 | ) | (414,549 | ) | (57,044 | ) | ||||||
| Selling expenses | (57,343 | ) | (46,825 | ) | (6,443 | ) | (113,622 | ) | (91,030 | ) | (12,526 | ) | ||||||
| General and administrative expenses | (37,081 | ) | (49,669 | ) | (6,835 | ) | (70,610 | ) | (72,301 | ) | (9,949 | ) | ||||||
| Research and development expenses | (22,003 | ) | (18,099 | ) | (2,491 | ) | (40,315 | ) | (32,479 | ) | (4,469 | ) | ||||||
| Total operating costs and expenses | (359,990 | ) | (308,947 | ) | (42,513 | ) | (647,957 | ) | (610,359 | ) | (83,988 | ) | ||||||
| Operating profit/(loss) | 8,201 | (25,996 | ) | (3,577 | ) | 19,144 | (17,096 | ) | (2,352 | ) | ||||||||
| Other income/(expenses) | ||||||||||||||||||
| Interest income, net | 1,011 | 1,096 | 151 | 807 | 2,320 | 319 | ||||||||||||
| Unrealized exchange (loss)/income | (79 | ) | 49 | 7 | (208 | ) | (244 | ) | (34 | ) | ||||||||
| Investment loss | (774 | ) | (1,511 | ) | (208 | ) | (315 | ) | (3,836 | ) | (528 | ) | ||||||
| Others, net | 5,691 | 2,954 | 406 | 13,012 | 4,904 | 675 | ||||||||||||
| Profit/(Loss) before income tax expense, and share of (loss)/income of equity method investee | 14,050 | (23,408 | ) | (3,221 | ) | 32,440 | (13,952 | ) | (1,920 | ) | ||||||||
| Share of (loss)/income of equity method investee | (7 | ) | 345 | 47 | (994 | ) | (422 | ) | (58 | ) | ||||||||
| Income tax expense | - | - | - | - | - | - | ||||||||||||
| Net profit/(loss) | 14,043 | (23,063 | ) | (3,174 | ) | 31,446 | (14,374 | ) | (1,978 | ) | ||||||||
| Net (loss)/profit attributable to non-controlling interests | (79 | ) | 286 | 39 | (586 | ) | 2,067 | 284 | ||||||||||
| Net profit/(loss) attributable to common shareholders | 14,122 | (23,349 | ) | (3,213 | ) | 32,032 | (16,441 | ) | (2,262 | ) | ||||||||
| Net profit/(loss) | 14,043 | (23,063 | ) | (3,174 | ) | 31,446 | (14,374 | ) | (1,978 | ) | ||||||||
| Foreign currency translation adjustment, net of tax | 5,764 | (2,623 | ) | (361 | ) | 5,252 | (1,124 | ) | (155 | ) | ||||||||
| Comprehensive income/(loss) | 19,807 | (25,686 | ) | (3,535 | ) | 36,698 | (15,498 | ) | (2,133 | ) | ||||||||
| Comprehensive (loss)/income attributable to non-controlling interests | (79 | ) | 286 | 39 | (586 | ) | 2,067 | 284 | ||||||||||
| Comprehensive income/(loss) attributable to Huize Holding Limited | 19,886 | (25,972 | ) | (3,574 | ) | 37,284 | (17,565 | ) | (2,417 | ) | ||||||||
| Weighted average number of common shares used in computing net profit/(loss) per share | ||||||||||||||||||
| Basic and diluted | 1,004,586,294 | 991,124,813 | 991,124,813 | 1,008,291,649 | 991,969,450 | 991,969,450 | ||||||||||||
| Net profit/(loss) per share attributable to common shareholders | ||||||||||||||||||
| Basic and diluted | 0.01 | (0.02 | ) | (0.00 | ) | 0.03 | (0.02 | ) | (0.00 | ) | ||||||||
| Huize Holding Limited Unaudited Reconciliations of GAAP and Non-GAAP Results (all amounts in thousands) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||
| RMB | RMB | USD | RMB | RMB | USD | |||||||||||
| Net profit/(loss) attributable to common shareholders | 14,122 | (23,349 | ) | (3,213 | ) | 32,032 | (16,441 | ) | (2,262 | ) | ||||||
| Share-based compensation expenses | 4,889 | 10,355 | 1,425 | 5,393 | 7,797 | 1,073 | ||||||||||
| Non-GAAP net profit/(loss) attributable to common shareholders | 19,011 | (12,994 | ) | (1,788 | ) | 37,425 | (8,644 | ) | (1,189 | ) | ||||||
FAQ
What was Huize's (HUIZ) gross written premium (GWP) in Q2 2024?
How did Huize's (HUIZ) renewal premiums perform in Q2 2024?
What was Huize's (HUIZ) net profit/loss in Q2 2024?
How much cash and cash equivalents did Huize (HUIZ) have as of June 30, 2024?
What was Huize's (HUIZ) operating revenue in Q2 2024?
