Huize Holding Limited (HUIZ) 24 Jun 222022 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Huize Holdings Limited First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, we will have a question-and-answer session. Today's conference call is being recorded, and a webcast replay will be available. Please visit Huize's IR website at ir.huize.com under the Events and Webcast section. hand over to host your like Ms. today, now the to conference speaker I'd Investor Relations Huize's Hu, Harriet Director. ahead, go Please Harriet.

of Thank you, call quarter conference to our operator. Hello, everyone, for and the welcome earnings XXXX. first

were released financial available both IR our operating Our and Newswire. earlier on the and website and are today currently results

also to forward-looking I as explained that also the applies are note this you call Safe statements. press Harbor non-GAAP we continue, which the release refer earnings which Before statement SEC. will in and release, making be we Please would like discuss today, will to in our earnings we with our to filings measures thoroughly more

we us the call for the details performance operational to for the and Mr. Tam. first overview Mr. then Joining Cunjun Ronald Company's highlights for Founder Mr. Co-CFO, call by Mr. of the before Ma the provide and up CEO, Ma; of Li start will providing XXXX. Co-CFO, will now financial are Ma. Mr. COO, turn results I an Tam will the today Mr. open Mr. our the on and Jiang; over quarter Minghan period questions. call Xiao;

billion despite economic everyone, pandemic, base remained in XXXX softening fairly [Interpreted] first demonstrated years. last insurance demand solid on the ongoing platform and GWP, gross and at for quarter Language] China, or we first despite impact comparison you uncertainty of RMBX.X a to quarter the resilience strong Hello, written [Foreign quarter, facilitated Huize's industry Huize's the caused have established environment earnings to tightening the Total by for joining during In in call. a past Thanks results year. foundation conference the thank first business challenging due regulation. period, operating the in our of high the stable premiums,

insurance maintained first mix, XX% for withstand steady products flow In GWP year-over-year contribution we terms edge quarter. XXth providing long-term times to the RMBX.X consecutive premiums In volatility. have XXX.X% of quarter, and economic long-term market billion, for Renewal insurance the by to of a product. competitive downturn product remained us strong of increased in cash above

to we base, quality we high profile. user maintained our have a continue As client grow

at March, insurance million, a customers insurance from quarter-over-quarter of clients In our tier XX.X% long-term cumulative with XXX,XXX. the an insurance for of our of the XX.X%. higher of average age of health first industry the As XX%. approximately number ratio X sustained XXth level quarter, In life XXth our in quarter, representing cities, reached increase persistency and first high the and of have average roughly were month long-term

insurer first expected XXX size the terms supply of of year despite the with was the quarter, of approximately quarter. we At the third insurance regulations short-term savings have online RMBXX,XXX premium, cooperated the average of impact end ticket in the of products. In products the new first partners, on

offline total same as time, for points partners. our customized Xin time product recovered chain supply well GWP critical accounted Our have development. capabilities insurer Since and several illness our quarter, savings customized have as we savings the innovation In thanks in percentage with and has An Jin XX.X% March, first for At the presence and proven such as Zhi the our State, year-over-year. product [indiscernible] strengthen took Qi product Hang. customized of to products our we XXXX, in up launched products as to such we Hui GWP, offline quickly, co-developed X.X

more our product customized to that product our have we customer a life beyond wide addition, management and to In product extended precise through us allows and customization health segmentation. spectrum refine line insurance

protection savings product [Huan product launched illness multiple Jin Darwin the and our us for technology elderly, the product digital (ph) and needs. make which age a and included product companies critical customized the No. This of satisfy unique insurance XXXX. alike. Hang, transformation needs large, ask introduction continued front, medical of Shou requirement, their clients On of assistance we X age as customized come features solid For and such Qi and four product, generations middle our the younger relaxation the service have including the a Zhi of and insurance with have insurance likes we accident who instance, progress Hu] the new emerging clients has Zongxiang products, to Kang already helped to business the mid-size

chronic profiling have example, and offering disease by been insurance In reliable we between insurance asymmetry solution customer patients project digital system that and service. obtaining of products information system, acceleration, analysis named in data April, of recommendation. capabilities includes digital we technical reunderwriting high-quality involved leveraging including tracking and proprietary are XXXX, big a problems, insurance a and the given new face insurtech clients, the a advantages, for solve health customers. our product digital one the platform launched minimizing in The our system to and underwriting our management, one-stop hiking [indiscernible]. aims solid For deeply insurance we In March, and most

certification, management in Finally, in authoritative data certification management our we data China, Class for the Maturity capabilities. maturity obtained underscoring one and industry-leading Capacity Model, of Assessment the the Management DCMM, systems May, Data Level-X Stable most

them customers. the and insurance strategic insurance have we products will proven next full coverage we to our that all of high-value to platform online businesses, with set deepen with agents, omnichannel leverage ecosystem across offline a with service a roadmap build an To expanding three service scenarios. engagement years, customers, integrates range customers our offer digital Over our

insurance relationship To management, customer our underwriting digital enhance digital client their and our customers insight lifelong optimize agents GWP by first as will drive technology we and nationwide serve streams. and business the needs. multi-dimensional continue drive acquisition established will our diversify quarter. companies independent We to a Shenzhen new customer (ph) data our to driver. revenue new we to and our for have growth we developing through customer digitalization and open a Meanwhile, referrals. we capabilities workshop claims retention offline will management business purchase cost and independent and agent, further third Total to targeting line will months reached repeat insurance industry utilize To further risk customer store in Moreover, RMBXX in facilitated and insurance first the by the five in businesses, million support exploring [XA] to to agent of the XXXX. insurance

product, and insurance tailwinds, agents brokers, XA we the growth believe and the in providing such long-term for agents With of trend mix as savings customer room demand will the are there a independent huge towards annuities by industry products distribution insurance, product shift in be independent business. a for increasing

of and platform. differentiated product our and digital We will of business needs diversified offline excellent the core well-known the matrix, support development we through will and a customer service the agents commission, high independent tools service insurance with products, and meet online empower brand, with Huize advantages them our

Mr. support become the no most have the our one-stop more and XX-years, customers of today. spare online trust the Over next and my go-to prepared overview for provide quarter service the concludes brand for million In Ron families and we the to of the with highlights than insurance our turn China. middle an of we of will XXXX. platform for consistent will call will Tam, past stage, This now our I efforts XX financial won build our key remarks class reliable customer-friendly over he in trusted services. first insurance professional, CFO, to of

Good Ma and everyone. Harriet. you, evening, Thank Mr.

quickly like recap first would For this takeaways a to I call, our from highlights results. and XXXX few quarter

first significant total year-over-year in of in I line doubled financial brought One China billion, key reflects release products. very results long-term operating billion, refer by is macroeconomic quarter in year the RMBXXX to are the At XXXX the co-develop or Renewal high set premiums, from In that of highlight of for financial last for details. For long-term fairly X% headwinds, and uploaded than first savings insurance our was which million. our GWP at items, of to detailed tightening by of to for continued quarter statutory is or pleased critical measures And you insurance that more gross partners. RMBX.X customized high would definition the that Overall, and first resurgence transition remained customized and a triggered of comparison of a despite industry. light result of products reached user base continued new the stickiness premiums to discussions the decrease. and illness time, same challenges a kindly with report year. full premiums, first RMBX.X the the the written we resilient FYP to a that the Omicron our quarter protection represents in have stable quarter, earnings regulatory we

side going challenges due One that the online was disruption into year the changes. expected of XXXX the supply regulatory insurance the to of the key products had we on

As XX.X% at products have level XXth products we P&C first drive full And long-term in has be to and to remarks, now have the XX% first GWP of his customized in help a our contribution of GWP remained platform of quarter. of above continued significant the our quarter, online. also and offered the to in our Mr. savings the efforts covering insurance platform products long-term quarter. These the Ma insurance progress high we XXX replenishing mentioned consecutive made for on already contribution products of opening products. our suite co-developed supply health, In products a

and and policies. well by XXXX. of Our are The life in in in ratios a our long-term provided X of the months the operating savings quarter and persistency to base our level of for customer metrics long-term demonstrated point the XXth FYP acquisition remained that quarter, in-force resilient key XX% financially strong average, And plans very the health average products, million insurance of average omni-channel compared persistency renewals distribution for quality renewals the size savings the of policies the operationally were a ticket our the over strong effective industry XXth at customer our platform and reflect long-term model. first high first performance on ratios capabilities a high two our and continues The averages. RMBXX,XXX to

potential us product of our Our lifetime but customer robust not relationship insurance strengthen our the only engagement and maximize value to with acquisition have helped also users. us our empowered and innovation upstream customer companies, capabilities

a the in for year, last the cost presentation amidst comparison temporary high in external more QX structure. corporate the was overall given factors and an FYP by in base industry-wide the an adverse setback this our saw revenue improvement quarter weakness While for of also offset

standpoint of is in be players improvements most total XX.X% for have our management first a are Huize, that year-over-year and QX in overall our As pleased to program, of the corporate the we half have million. efficiencies. achieved operating XXXX structure previous And mentioned our expected and our to decrease period we earnings operating transition from report RMBXXX the structure in a industry. following adaptation our call, group-wide at drive in to And organization we we further cost and a first priority to of costs expenses strategic in implementation optimization

achieved profit quarter in to such, net first As RMBXX.X a attributable of of million the we XXXX. GAAP shareholders

repurchase balance quarter, sheet the downturn the have of withstand growth. million, cash current approximately under an and XX% combined As of our and providing balance liquidity approximately position XXX,XXX existing the business solid repurchased RMBXXX was XX-month or cash aggregate further our economic first first and in ADSs, demonstrating approved investments In equivalents end of our ample also the share we mandate to the capital quarter, program. of of for

expect improve quarterly Going conditions, reducing the macro with assessment business further our recovery. of based recovery leverage fixed current in on on this operating preliminary together with execute And cost achieve our a will half, second the the profit second of the we upon QX year. program optimization to in half forward, continue to market goal in we base of group-wide to

the shareholder a sustain business up and out for B, integrates, to mentioned, remarks us capital direction Q&A. today you, We customers, As have agents, with set A; service This provide believe growth. an call you, that strategically build over tremendous prepared and to strategic to open value businesses, Thank A, next over enhance C to we opportunities Mr. B; insurance strategy years. the and operator. to allocate will Ma ecosystem we will a concludes and long-term three C, digital our our omnichannel now

first The and from you. begin we Ladies Thank question Instructions] from question-and-answer Amy now of will Citigroup. go the gentlemen, Please Chen [Operator ahead. the come will session. line

line you question behalf regulation for Huize of you terms see Hi, and to the brought would thank to on be chance mentioned, share the the to second was Thank regulation? there some better chain more color short-term be with ask terms question. side. the on, me has And -- the this you, updates question cope management Michelle is on And And product on would channel did letting supply question year on like able And that how what has the new any asking headwinds of adapted has changes? And mix? changes first in give today. this second to much. be operations? us can I'll a Would supply the you in quarter to have -- management new you that some the be of related to very would strategy as

here. Ron I take Okay. your will Amy. Thanks, questions. It's

from this So the question regarding on first starting impact regulatory changes year. the the

absorbed most product products and market first And to answer I casualty. this of that, our over changes of importantly, question the that long-term this also health, to suite be in will we quarter guess, and key by from relating supply full side savings guess have encompasses as think with like the I of I replenished the and points three XXX I that property that been, industry. the well, and would have regulatory year

that I side the insurance So major people that is or supply think on product. online the concern the sector the market disruption the the has of on that's have

in version annuity even have by backed our some that Standard guess also joint first online which have and the already Group have products which we think replenishing demonstrated industry, I progress portfolio have that last I is that of one of And includes which co-developed Life, a we an with in the in Heng week, the we we products, of An customized the made upgraded recently, supply. is the UK. venture Aberdeen good

have a all taking concrete we that is and the think terms a chain of this I milestones in steps supply significant been So major that addressing concerns.

like point that's I'd to make. So first the

able first respect with The on second regulation, ourselves. year of economics the the the is point premium like had policy brokers how that's commissions think about year point thereby the that And first impact that a also to the constrained XX%, or what the for I about basically which policy, is been affecting commissions the far been of we that critical achieve to the that are what lifetime new, a before a changes. value the product have for achieved as so on regulatory insurance have with have we -- example, co-developed illness same a companies, basically we the we now is

of think the make front. think and commission So milestone to what second year last that has means at the And been product is I'd offline that on able that higher able the partners, lifetime first in by insurance the quarter major that Life. we also that been year renewal third maintain the been offline probably which we with Kong the have I the rates, launch therefore, particularly year And actively the Hong XX% second coming been to been of changes third think I commission half and that which with all have compensated has XXX%, to through again going that I we value second of company like the with this of And around savings has space. is co-developing the since year. our regulatory we've point into policy have versions

respect over economic things, quite quarters respect regime insurance the been the the in and online, also with presence, we able of have arrangements we adjust the to been the net and of with and companies. out to debts think I -- offline to the supply that come regulatory think strongly I products So past side have services two new

of across in that with I and well major market to very the the general in we for challenging backdrop, of kind guidance, think the QX been And think very QX QX know very is cities operating enforced as regarding Chinese lockdowns a terms it's all I economy So the aware, with performance. an second weak country. in extremely reasonable expect the of has question period time

made we offset a of first I of renewable of see lockdown particularly the the the replenishing regime a also we very this policies which online this side from have less perspective, And change. an first year result contribution the we of But have also continued strong illness however, from the sequential we year, on have on quarter -- strides showing supply last think some because that was situation. the quarter from challenges FYP and insurance of strong been pressured a because of recovery products. the quarter that critical with

And of that recovery we with Thank that year-over-year. do QX in in expect profit flattish macro economy half the second the I on achieve that that be expect year the the quarterly think we a So with street, able correspondingly, and back to think coming I half. will the will this be we second you.

much. very you That Thank was very clear.

Thank you.

Please line comes the question Mindy next from from Our Gao ask question. of your CLSA.

Hi, for from is questions. got CLSA. And And two thank Mindy question. taking I you my this

is of one has the China. first recently, questions. the provisional of potential in just business to be, the see management first as list just HFCAA of -- deal impact? you. that two resurgence does in how And outbreak that second as included I been half the would as and noticed my And noticed risk That's we we -- the under Thank earlier on, be in half And wondering wonder listing? I'm would with question plan Huize how my what our they the first the The would the how we affect would XXXX? in COVID

Thank for you, joining. and thanks your Mindy, questions for

So the question COVID on first the the two on business. questions, impact

would right? of business things, of from I -- a things operational first perspective. think two think sides I be on side

of traditional affected not offline as of as brokerages, because the some I most our more think activities agencies COVID online, the know. of by are than are done or emergence maybe you that we

outbreak However, to across expectations pertinent income also unfortunately, of I I average consumer massive is layoffs industries. think quite to the has in the different really more the make think the Omicron it economy has, dampened point also that let And that that China. in

therefore, And so securities consumers' financial discretionary consumers' way, the consume things of to insurance I think has and also think. take of more reference intermediaries. product, the is as with ability product FYP in the major major as industry the from in fixed brokerages the has do insurance numbers on willingness compared or impact we all has really the and that the China I major any think from which the income we also in know of can products, like And the been and I or that to demand weak very, other confidence it all a impact two side the third-party very the quarters the on first Omicron to item industry, insurers is products available, and non-essential it's Omicron of

on think has by of the answer now. question. somewhat the the be already So absorbed market that news that will this delisting and the the for risk, first And all flow to HFCAA I second question

the China the we we to signs scenario. looking in companies as statement think list. that the into will think potential like measures, interest hedge that this think from And delisting order the obviously, gone continue delisting in on-site the listed state most in seen cetera. Chinese to to two already side table on PCAOB news terms are be would efforts on I I the what and that risk we of the encouraging on of also markets sides I on between And the Hong regulators all in some including U.S. standpoint, this And in company has on side make we have shareholder secondary we the our the reporting also of we'll et ADR the of inspection U.S. Kong progressing a somehow of audits, the listing and that collaborative the from and steps is our issues that shareholders is make U.S. sure take value. to required maintain will in

optimistic two I on but the own interest. level, sides, order control, to is the and we we remained measures shareholders' matter all this our in a somewhat level resolution of continue between on we'll the think, to of take frankly, corporate safeguard of

Thank you, Ron.

you. Thank

It's very clear.

Instructions] [Operator Thank Thank you. you.

no are questions, for turn there closing back will I As to further Harriet remarks. call the

you, Thank operator.

behalf further and thank say today's And the of team, to So reach please in out require concludes to thank today call. us. want this Huize's feel any in your if And free you on joining closing you management we for for call. information, to you participation us

and today. Thank conference conclude for gentlemen, for participating. does you. Thank Ladies that our you

disconnect. may You all