Huize Holding Limited (HUIZ) 10 Dec 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Huize's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded, and a webcast replay will be available on Huize's IR website at ir.huize.com under the Events and Webcasts section. I'd now like to hand the conference over to your speaker host today, Mr. Kenny Lo, Huize's Investor Relations Manager. Please go ahead, Kenny.

Thank you, operator. to quarter welcome call. earnings and everyone, our XXXX third conference Hello,

Global financial released both available and were operational our services. today website Our results currently earlier and and are IR Newswire on

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

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

the efforts international the strategy, of capitalized its market past the issued insurance industry, supervision, the XXXX, on promoting trends, on for insurance recovery. confidence market refined opinions the mix of policy to began economy QX development the State expansion product its championing government's strengthening and and effects X and [Interpreted] In China's sector. In the Council development September, signs on of materialize industry macro high-quality In cause preventing a Huize response showed to over steady opportunities risk improved, of years. the build high-quality as

amounted across setting significant reached to revenue new written committed QX, gross this performance profile. The [ RMB year-over-year quarterly FYP average assumed of was insights insurance long-term approximately record. size our of XXX% From products X.XX strong Meanwhile, premiums XXX RMB a billion, XXX achieved In a company with milestone ]. the million. written business customer located of service among end on which purchased customers approximately of X,XXX age diversified profound quarter, our average ticket XX, The customers products in the experience. provide capabilities, XX% ability customer offerings. Building to clients insurance third double-digit short-term cumulative insurance served surpassed a the climbing This service of remain and we RMB and delivering number of to serving recorded growth, product our enhanced By third high-quality premiums further product products quarter were nearly high-quality FYP up the reached cities, saw reflecting approximately result, or insurance The average facilitated who high-tier a rose the RMB million. our XX savings to the size in GWP, year-over-year. platforms a ticket XX% the gross XX,XXX, products all long-term XX.X% approximately superior of amounted Total As quarter. savings third insurance RMB total platform quarter, million, approximately XXX profit product popular facilitated up year-over-year. XXX% whole net adjustment Notably, approximately the year solid were rate. In a RMB year-over-year. to up up and Renewal life on mix first premiums commendable the most FYP result. In to FYP, XX.X the reached million, premiums or quarter, reached third delivering to among million, million, billion, XX% downward interest year-over-year. XXX% RMB X.X-fold prior year-over-year. for reached the perspective, X.XX XXX RMB FYP RMB offerings increase from insurance savings and

level. an industry month the XX%, high remaining XXth end of persistency both As for month, of August insurance, at and long-term ratios exceeded XXth

developed we areas capabilities, to Insurance for needs offerings, In critical partnered knowledge by we of high-quality launch X China tools our the covering third leveraged and we business existing Life of capabilities. of tailored pillar AI matrix. have students. social including pension to swiftly the insurance, New support P&C users, high-quality access we In Since our national videos teams, sales of we provide support and the and we end lifetime September, of health enriching continued Meanwhile, development on products. product infographics, to advertisers, and on innovation information introduce driving insights As and partnerships deep operations XXX AI-powered to product to insurance, content with product Drawing and insurance with stable accident Meanwhile, of we insurance development agents upgrade customer to the internal third continued our and insurance improve and efficiency August, AI-powered solutions. bases maintained iterate service can generate customer our materials, the the tools partnered external quarter, this back-office that beginning digital streamlining media. of companies. system. Empowered into Scholar, year, have upgraded with protection leveraging on CPIC the Little been launch leveraging upgrade annuity articles, AI, digital X.X marketing suite efficient development to new widespread distribution and their Bliss customized enabling a for

[ up year-end, further sales the thematic generation to the terms record sales and in our quarter, demand teams. This of for quarter drive continuous to introduced service by of support driven international in Furthermore, analysis improvement strong high sales international reached progress compared enhancing XX% In mainly team. revenue and domestic formulate XXXX year, tools, production, with previous In our more the these capabilities our our providing and (sic) have the premium strong content third international to underwriting target of optimization our we enables initiatives an sales products performance in evaluate business. AI X business business. tools, are conduct AI that in precise and ], of we the even expanding communication encouraging help a can intelligent By contribution to of XX%, new stage XXXX made total points percentage strategies. business, a assistant expected proposals the to

clear. are goals international Our

Philippines, by sustainable hub development. we ventures, we partners regional revenue acquisitions long-term it group's the the on VIP with end, expansion Kong Southeast to model. with foster overseas this and will of operations. as to our our established in accelerate to Indonesia the trajectories and Through of and joint headquarters international the Poni net Insurtech Singapore mass for the streams positioning in the To Vietnam, Hong diversify into local by brand, a market journey, as deepening insurance clear of expansion international cater supermarket to insurance further expansion. insurance expanding will not in second, of these benchmark and expansion. of a are our market business Care worth Singapore, platform in insurance The consumers In This focus enhancing successful market strategic positioned and markets expansion expanding new have superior, affluent and Care. have solutions, mergers and our leading coverage a international Vietnam, Asia clients platform, Global share. In only insurance the markets high market the comparison and overseas working region, growth jointly into the Global First, we globalcare.vn Vietnam while inbound establish insurance we also penetration one-stop offering potential entered signifies the user-friendly with embedded the with into to leadership digital transparent future continued our October, and but markets, experience. we insurtech acquisition a successfully high-growth the an of for with set Vietnam user in the provide September, milestone shopping reinforced has needs launched

insurance brokerage plan digital to form Looking electronic an for to resources next to with Leveraging the additional enter develop overseas local experienced service a and forward, we the and further with promote combining the markets plans and the have we our Singapore technological of a X partners' In provider insurance an high-end Singapore, XX plan process well-established strategies local understanding industry significant Philippines, in within been for consumer while deep resilience we service insurance Philippines. our in identified revenue, months, venture Huize's and consumers. applying license, services international are In services joint we to long-term have our in team and in formed remarkable capabilities both our key diversified we needs target our and amid demonstrated will also driving of group. XXXX and experiencing growth the a has the of business establish have region our growth account insurance of by adapting XX% By product business. exceptional XXXX, international business total value year another our opportunities. journey. capabilities, for international transformation, creating expansion to hub challenges

XXXX, Chinese development. Looking ahead for present to the insurance continues opportunities market to

a We emerging will to strengths, to trends. leverage needs continue innovative in the Huize's Moreover, international Southeast insurance customized of markets, opportunities on capitalize maximize enhance in the markets will companies range our to diverse resources competitiveness. market collaborate and products particularly proactively to combined launching tailored while and we Asian closely and with

my the into over momentum our greater growth today. to for to With the remarks prepared overview value these and shareholders. This Tam, our financial an quarter. third new provide call our we efforts, key remain Ron aim company will I highlights concludes of committed now Mr. who turn will delivering CFO, inject for for to the

evening, morning in Kenny. Asia. Thank Good from Ma to and friends and U.S., Mr. our everyone, you, the good

RMB So billion, also third facilitated results GWP of set delivered of and challenging total a industry macro than X.XX a X terms Total strong results, reached in more the of just record very quarterly think quarter to on FYP billion. our record environment to doubled platform GWP quickly our RMB recap high the I the amid have landscape. we while

also a GAAP profit the recorded of We non-GAAP net RMB for XX.X and quarter. million

amid meet proprietary robust sophisticated to covering customers, our to capabilities long-term solutions. attract our can demand be distribution relentless offline Our and efficient products to our ongoing efforts for omnichannel channels, consumer insurance network, attributed reforms product online innovation and evolving ability regulatory AI high-quality our

that in for become a More to is long-term growth importantly, driver are sustainable our development. the strategic move we initiate international to industry expansion, set the a new pioneer

XX% our remained as our and to Our XX potential high-quality over our third mark strategic our ability added customers our quarter million to for customers quarter, at quarter. The insurance Meanwhile, stood still long-term of omnichannel ecosystem XXX,XXX repurchase In high have we third premiums of XX.X% number of distribution products, AI new well, value base. and ecosystem, of tools products for for customer focus the capabilities. to customer strengthened end ratio years. acquisition highlights upsell, about further total a which the our has a of on X as the the cross-sell accounted our long-term proprietary continuously of on capitalize during which our lifetime engagement bringing insurance and milestone facilitated the very

to and third independent quarter. Total in for XA RMB to continues IFAs. our advisers architecture million both the business XXX year-over-year platform financial or open our XXX% financial Our surged by advisers FYP internal empower also external

year-over-year end remained a points insurance, industry-leading and XX% solutions to also August, high operations the market achievements Kong. in at for of for XXth -- percentage predominantly leveraged underpinned our revenue the reached segment, by of enhance sales reflecting also health third to RMB up high operational following: of month Hong the of Number our long-term quarter, improved level highlight will quarter, again partly international to the We and efficiency. the by RMB XX%. I average contribution expense further XX% which on which over over from quarter, month. premiums by other increased self-developed size one, as is premium In streamline an XX,XXX an ticket by is ratio product key both products which XXX by long-term our to AI year-over-year, persistency third record The million, of which over our high our ratios savings renewal approximately includes year-over-year is increased and X in life XX% which XXth

products growth health pursue health customized long-term between products CPIC. Meanwhile, by with continue short-term to mix of year-over-year savings RMB a XX% XX% We primarily long-term and FYP to steady FYP our and XXX by health XXX P&C our products. million, year-over-year from for RMB to surged million. driven approximately approximately products balanced sustained

financial equivalents In very of USD liquidity terms of our RMB cash September. a cash with or remains XXX of million our million of end as robust, position, and of position the XX balance combined

our China empower our ecosystem, Asia product our distribution and arm, insurance successful tremendous partners customer and to tools our capitalize on Insurtech. Southeast optimized Going support market our omnichannel our business distribution the engagement. In forward, continue on partners across with Poni model to an acquisition we and parallel, advanced agents, we to international leverage will continue IFA through AI to untapped opportunities offerings rich proven

Hong Care, rose Kong, mainly Kong to Global of our from group Our total international in business Hong expansion revenue XX% up in quarter contribution the this Vietnam-based the in total for revenues, subsidiary. of in -- controlling is completed segment. Alongside our ongoing of driven quarter, our our expansion in acquisition last which XX% stake September, by the of a which is we

platform aiming since business model. with Global enhanced Care partnerships customized its insurance comprehensive the products, have and to embedded is solutions, insurance We accelerate through innovative mainly which AI distribution growth

which We can months. alluded these we prominent next in to to initiatives are XX growth further is opening Asia, to in confident remarks, the from value. and more believe revenue XXXX. Moreover, contribution streams enter new year achieve our the Philippines the operations Southeast in new we revenue markets diversify we that Singapore namely will the shareholder drivers that have We plan further our service enhance long-term earlier a X in Vietnam and as

evolving are China's insurance very revenue industry XX% presently which contribution growth positioned now chain. target healthy group of and is by benefit we to XXXX. In expected revenues landscape, to the our are sustainable achieve value to from across entire summary, well foster of We on international track

also an middle-class young digital Southeast solutions demand on economies, for capitalize Asia international demographics, and will in our insurance populations We and large growing footprint. to increasing expand urbanizing

our our on data-driven platform, development. consumers, connecting We insurance further are carriers AI-powered and capital solutions. And remark strategies position through solidify as confident partners Asia's market distribution and insurance our digitally my leading efficiently that technology and final a recent will

now to of closing our As trading split effect ratio effective, you. the that share the up has which outstanding we'll this has questions. with remark, has December our in a X, reflected reverse ADS been X:X over call you, Thank of open shares And price. effect yesterday, in become And to and on as market operator. yesterday. And change

[Operator Citi. from of first question our Chen Instructions] We'll Amy now take the line from

profitable for first of growth. the be your full-year on second a on Congratulations question would be on would outlook turned see for fourth net is quarter. quarter to profit. GWP the My strong has third next the very your especially very year in decent also biz that good mainly quarter, very It's for question again What guidance and expense-wise. XXXX? The

and bit in First, margin the fully reviewed? the little elaborating of year. pressure the more could you be to quite on? Secondly, channel expenses. gross noticed Would impact you think expense of G&A rose I that and actually been attributed do this margin that, increase noticed the further the actually, a has you the seen actually in broker going pressured gross that think significantly in expenses quarter rental this that has we this? Do Or utility management mind on third rationalization

always. Amy. Thank you, Thanks for joining us as again,

So by with just one few questions, to your will regards address one. I

to the so-called with in the In -- month terms first QX particularly customers, has of products or August on August. to do the the couple like And products that -- mainly July say China full-year by lot market our overall very due think been of I strong the of rate question savings upfront guidance I and a reasons. one in relating most to adjustment for XXXX, the and interest to would category. of has a prevalent the the of has driven a Mainland quarter, we That the demand China think into

segment Kong the been category of front-loaded momentum into to But this QX, market, our up growth savings offsetting as December envisage an have a some do somewhat current on in we offshore has QX. And lukewarm months Hong leading we a is So, result, is predominantly which product side. think recovery the in strong seeing is what month. continuously particular our in the we still the demand

revenue effect a share of offsetting overall we business compared overall, QX there as think predominant the Mainland that quarter think likely and of as would the But less consists our we that our as would So, given result be therefore, FYP quarter some China to that on still and part. be a that strong QX.

the from promoted traditional we of par we ourselves. that is savings see now new category, of have a X now par savings this product other as the to products we product, the the into into still the for is products, with mostly factor to of well, process quarters. deal that think And think transition QX and as QX. that like share on will next takes to that We the being the the And the is therefore, mind result demand the which we by consumers right a probably particular the the not mindset The therefore, regime time brokerages to mature. in the change intermediaries, X as in see it definitely the strong be do as overall

So in that less QX. we be strong point think would this at fourth quarter as time,

question. So, first that's the

on question margins. gross second The

business rates. result, the XX% distribution gross rate. this third Bao adjusted for that rationalization the is to or And a business decline the in with QX. And has expenses, around few take of China The a the our down the note the quarters our expense You fixed do be of slight materially should on overall cost has in because commission the decline on the of right? think cost selling has levels do a it of because steady this so-called And structure the in in commission R&D, to less your increase noted structure across that that question rationalization do in gross we of that not therefore, focused cost to -- been felt we the need also of has and a quarter-on-quarter that relatively do or also Xian effect economic with expect on on should a rates base. of QX regulatory on is from point optimization lot or at think have We overall the as as has third the reflected margin remain see as effect rates result expenses, do result the the and which chain. to margin fully drop QX. we going brokerage further structure that, be that the We a side therefore, G&A therefore, And G&A with least the next margin we channel onwards this trended full quarter, level the Mainland And a gross compensate from headline has forward expense partners, commission -- are channel or correctly basis, value highly as compressed the declined in level other Fei. to effect economics more bit QX. on been in G&A a especially for from partnerships the our channel

target We this improve of the in the very company. have of a to particular our and structure cost-to-revenue clear strong ratio part cost

next comes line from Guo of [Operator ] question CICC. Instructions] Your Ray from [ the

data one because I any management. on And have that's have the for are commercial does or industry has plan access to on of medical the FYP? the And health XXXX amount insurance health the about the question on company is another the hospitals? have XXXX FYP plan we management one management guidance. of Huize industry? guidance any have the likely any to Do companies And further further plans

joining you, Thank for the you. Ray, Thank call.

business segment care enter life For because established have care about think on the have still question, the and industry have whether we we our health whole. focus already the at start-up question I as model services business do health have strong plans was although first has to Internet very we or insurance platform, plans. do a We the health a been a and the stage. health care own Actually,

continue we customized they the for to to market forward to, complement industry, we respect the social pursuing among a to DRG that to health necessity a on the consumer upgrade especially on trends forward I see lead in health that insurance right the reforms, our because care security still we be which example, side focus going what going have commercial strong tackle are points, already believe, think will to with with their is very products level. seeing up coverage care what consumers the pain coming will to

going forward years. to years our X setting in high-end the the are X medical on focus mid- to next we health So, products

Our that of plan product provide X in up we is to in good quarters a target care respect in solid industry. plans already are future, customized reforms the probably overall these the would have customers in next our seeing that come the health -- coverage to with we near

the that's question. So, first

full-year question be reach little will think do a for XXXX. now QX providing in that on guidance We which we would the a results, bit road. be right the down to months it's early. few guidance when scheduled Second We market our

Do for Ray? I'm I'll turn Mr. no any questions. And the question, closing follow-up showing Instructions] Lo further have back [Operator with to comments. that, you Kenny conference

like on closing, behalf team, in operator. In to for would you, of management call. we your you Huize's Thank participation thank today's

information, to feel free out If you you the Thank call. us require any joining This for reach to further concludes today. us.

program. for you Thank conference. does This today's in the participation your conclude

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