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Huize Reports Third Quarter 2023 Unaudited Financial Results

SHENZHEN, China, Nov. 17, 2023 (GLOBE NEWSWIRE) -- Huize Holding Limited, (“Huize”, the “Company” or “we”) (NASDAQ: HUIZ), a leading digital insurance product and service platform for new generation consumers in China, today announced its unaudited financial results for the third quarter ended September 30, 2023.

Third Quarter 2023 Financial and Operational Highlights

  • Driving high-quality growth: Gross Written Premiums (“GWP”) facilitated year to date on our platform were RMB4,555.5 million, increased by 31.7% year-over-year. Within GWP, First Year Premiums (“FYP”) accounted for RMB2,203.1 million, up 54.1% year-over-year. Renewal premiums year to date increased by 16.0% year-over-year to RMB2,352.4 million. Increases in premiums were driven primarily by our high-quality customer base, sustainably high persistency ratios, and the diverse array of customized long-term insurance products we distribute.
  • Focused cost management and improving profitability: Gross profit margin improved by 6.0 percentage points year-over-year to 35.3% driven by improved customer acquisition efficiency. Operating expense-to-revenue ratio continued to improve, decreasing by 3.9 percentage points year-over-year to 29.0%. Net profit in the third quarter of 2023 was RMB20.2 million (US$2.8 million) and non-GAAP net profit was RMB18.5 million, marking the fourth consecutive quarter of profitability.
  • Cumulative number of insurance clients served increased to approximately 9.1 million as of September 30, 2023. We cooperate with 121 insurer partners, including 75 life & health insurance companies and 46 property & casualty insurance companies, as of September 30, 2023.
  • As of September 30, 2023, cash and cash equivalents were RMB258.4 million (US$35.4 million).

Mr. Cunjun Ma, Founder and CEO of Huize, commented, “We are pleased to report our fourth consecutive quarter of profitability, with net profit of RMB20.2 million and non-GAAP net profit of RMB18.5 million. This solid performance is a testament to the progress we have made in acquiring high-quality customers, rolling out a diverse array of cost-effective, customized long-term insurance products, and our omnichannel distribution capabilities integrating online and offline channels, with a focus on maximizing the lifetime value of our users. Despite the challenging macroeconomic and industry environment, we once again delivered a sound financial performance for the third quarter reflecting our resilient business performance amid a turbulent market.”

“During the quarter, our strategic focus remained squarely on distributing long-term insurance products, which accounted for 90.9% of GWP. This is the sixteenth consecutive quarter where this figure has exceeded 90%. FYP for our annuity products tripled during the quarter on a year-over-year basis, capitalizing on market demand for retirement savings products. Our high-quality customer base has contributed to persistency ratios of more than 95% as of the end of August, among the highest in the industry, for the 13th and 25th months of our long-term insurance products. This also led to a 25.2% sequential increase in renewal premiums during the quarter.”

“In the ‘To-A’ segment, we continued to empower insurance agents with innovative technologies. In the third quarter, FYP facilitated by the ‘To-A’ business reached RMB89.7 million, showing a 37.5% growth year-over-year. For the ‘To-C’ segment, we remained committed to our ‘customer-centric’ approach and continued to strengthen user engagement and enhance upselling capabilities. As a result, 38.4% of our long-term insurance products customers were repeat purchases from existing customers, increasing 4.7 percentage points year-over-year. Moving forward, we will leverage our deep customer insights to launch a wider range of innovative customized products to meet the growing demand for healthcare, accident, and retirement insurance products in addition to financial planning and wealth inheritance. We will also further optimize our O2O integration to empower our agents to drive sustainable, high-quality growth and create long-term sustainable shareholder value.”

Third Quarter 2023 Financial Results

GWP and operating revenue

GWP facilitated on our platform was RMB1,245.1 million (US$170.7 million) in the third quarter of 2023, maintaining levels similar to RMB1,249.0 million in the same period of 2022. Within GWP, FYP accounted for RMB644.5 million (or 51.8% of total GWP), a decrease of 5.9% year-over-year. Renewal premiums accounted for RMB600.6 million (or 48.2% of total GWP), an increase of 6.5% year-over-year.

Operating revenue was RMB292.4 million (US$40.1 million) in the third quarter of 2023, a decrease of 16.9% from RMB351.8 million in the same period of 2022, primarily due to the decrease in FYP facilitated on our platform.

Operating costs

Operating costs were RMB189.3 million (US$25.9 million) in the third quarter of 2023, a decrease of 23.9% from RMB248.7 million in the same period of 2022. Operating costs decreased at a faster pace than operating revenue, primarily due to a reduction in channel expenses and an increase in upselling activities.

Operating expenses

Selling expenses were RMB49.1 million (US$6.7 million) in the third quarter of 2023, a decrease of 12.9% from RMB56.4 million in the same period of 2022, primarily due to a decrease in salaries and employment benefits.

General and administrative expenses were RMB21.5 million (US$2.9 million) in the third quarter of 2023, a decrease of 50.2% from RMB43.1 million in the same period of 2022, mainly due to a reduction in depreciation and amortization expenses and rental and utilities expenses.

Research and development expenses were RMB14.3 million (US$2.0 million) in the third quarter of 2023, a decrease of 12.6% from RMB16.4 million in the same period of 2022, primarily due to a decrease in employee costs.

Net profit and Non-GAAP net profit for the period

Net profit in the third quarter of 2023 was RMB20.2 million (US$2.8 million), compared with a net loss of RMB10.5 million in the same period of 2022.

Non-GAAP net profit was RMB18.5 million (US$2.5 million) in the third quarter of 2023, compared with a non-GAAP net loss of RMB9.8 million in the same period of 2022.

Cash and cash equivalents

As of September 30, 2023, the combined balance of the Company’s cash and cash equivalents amounted to RMB258.4 million (US$35.4 million), compared to RMB277.2 million as of December 31, 2022.

Share Repurchase Program

Year to date as of September 30, 2023, the Company had purchased an aggregate of 1,363,148 ADSs for a total amount of approximately US$1.7 million under its share repurchase program.

Conference Call

The Company’s management team will hold an earnings conference call at 7:00 A.M. Eastern Time on Friday, November 17, 2023 (8:00 P.M. Beijing/Hong Kong Time on Friday, November 17, 2023). Details for the conference call are as follows:

Event Title:Huize Holding Limited’s Third Quarter 2023 Earnings Conference Call
Registration Link:

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a confirmation email containing dial-in numbers, a passcode, and a unique access PIN, which will be used to join the conference call.

Additionally, a live and archived webcast of the conference call will also be available on the Company’s investor relations website at

About Huize Holding Limited

Huize Holding Limited is a leading digital insurance product and service platform for new generation consumers in China. Targeting the younger generation, Huize is dedicated to serving its insurance clients for their life-long insurance needs. Leveraging its online platform, Huize offers a wide variety of insurance products with a focus on long-term life and health insurance products and empowers its insurer partners to reach a large fragmented client base in the insurance retail market efficiently and enhance their insurance sales. Huize provides insurance clients with digitalized insurance experience and services, including suitable product recommendations, consulting service, intelligent underwriting, and assistance in claim application and settlement, which significantly improve transaction experience.

For more information, please visit

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 and interest on convertible bond. 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 RMB7.2960 to US$1.00, the exchange rate on September 29, 2023, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

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

Media Relations

In China
Ms. Crystal Lai
Phone: +852 2117 0861

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004

Huize Holding Limited
Unaudited Consolidated Balance Sheets
(all amounts in thousands, except for share and per share data)
  As of December 31  As of September 30
  2022   2023
Current assets      
Cash and cash equivalents 277,168  258,437  35,422 
Restricted cash 98,917  72,523  9,940 
Short-term investments -  9,556  1,310 
Contract assets, net of allowance for doubtful accounts 49,888  33,704  4,620 
Accounts receivables, net of allowance for impairment 250,667  134,504  18,434 
Insurance premium receivables 1,792  2,410  330 
Amounts due from related parties 489  373  51 
Deferred costs -  4,409  604 
Prepaid expense and other receivables 71,818  97,530  13,368 
Total current assets 750,739  613,446  84,079 
Non-current assets      
Contract assets, net of allowance for doubtful accounts 6,634  9,715  1,332 
Property, plant and equipment, net 38,518  54,794  7,510 
Intangible assets, net 53,498  52,853  7,244 
Long-term investments 77,305  76,742  10,518 
Operating lease right-of-use assets 162,180  119,099  16,324 
Goodwill 461  461  63 
Other assets 279  -  - 
Total non-current assets 338,875  313,664  42,991 
Total assets 1,089,614  927,110  127,070 
Liabilities, Mezzanine Equity and Shareholders’ Equity      
Current liabilities      
Short-term borrowings 150,000  19,800  2,714 
Accounts payable 262,266  191,806  26,289 
Insurance premium payables 27,567  39,128  5,363 
Contract liabilities 4,034  3,935  539 
Other payables and accrued expenses 58,251  41,198  5,647 
Payroll and welfare payable 43,938  76,026  10,420 
Income taxes payable 2,440  2,440  334 
Operating lease liabilities 10,075  16,044  2,199 
Amount due to related parties 495  1,718  236 
Total current liabilities 559,066  392,095  53,741 
Non-current liabilities      
Deferred tax liabilities 12,491  12,048  1,651 
Operating lease liabilities 176,032  132,796  18,201 
Payroll and welfare payable -  405  56 
Total non-current liabilities 188,523  145,249  19,908 
Total liabilities 747,589  537,344  73,649 
Commitments and contingencies      
Shareholders’ equity      
Class A common shares 62  62  8 
Class B common shares 10  10  1 
Treasury stock (15,306) (29,802) (4,085)
Additional paid-in capital 904,935  905,601  124,123 
Accumulated other comprehensive loss (17,695) (9,206) (1,262)
Accumulated deficits (531,127) (478,926) (65,642)
Total shareholders’ equity attributable to Huize Holding Limited shareholders 340,879  387,739  53,143 
Non-controlling interests 1,146  2,027  278 
Total shareholders’ equity 342,025  389,766  53,421 
Total liabilities and shareholders’ equity 1,089,614  927,110  127,070 

Huize Holding Limited
Unaudited Consolidated Statements of Comprehensive Income/(Loss)
(all amounts in thousands, except for share and per share data)
  For the Three Months Ended September 30, For the Nine Months Ended September 30,
Operating revenue            
Brokerage income 338,536  279,110  38,255  862,156  923,029  126,512 
Other income 13,254  13,334  1,828  37,341  36,516  5,005 
Total operating revenue 351,790  292,444  40,083  899,497  959,545  131,517 
Operating costs and expenses            
Cost of revenue (236,324) (184,474) (25,284) (547,654) (597,062) (81,833)
Other cost (12,369) (4,841) (664) (24,427) (15,663) (2,147)
Total operating costs (248,693) (189,315) (25,948) (572,081) (612,725) (83,980)
Selling expenses (56,395) (49,129) (6,734) (189,850) (162,751) (22,307)
General and administrative expenses (43,116) (21,493) (2,946) (116,104) (92,103) (12,624)
Research and development expenses (16,363) (14,305) (1,961) (64,020) (54,620) (7,486)
Total operating costs and expenses (364,567) (274,242) (37,589) (942,055) (922,199) (126,397)
Operating profit/(loss) (12,777) 18,202  2,494  (42,558) 37,346  5,120 
Other income/(expenses)            
Interest income/(expenses) (1,924) 1,490  204  (4,469) 2,297  315 
Unrealized exchange loss (50) (101) (14) (95) (309) (42)
Investment loss (435) (613) (84) (2,217) (928) (127)
Others, net 4,349  1,299  178  11,071  14,311  1,961 
Profit/(loss) before income tax, and share of income/(loss) of equity method investee (10,837) 20,277  2,778  (38,268) 52,717  7,227 
Share of income/(loss) of equity method investee (393) 1,359  186  (3,033) 365  50 
Net profit/(loss) (11,230) 21,636  2,964  (41,301) 53,082  7,277 
Net profit/(loss) attributable to non-controlling interests (691) 1,467  201  (1,942) 881  121 
Net profit/(loss) attributable to common shareholders (10,539) 20,169  2,763  (39,359) 52,201  7,156 
Net profit/(loss) (11,230) 21,636  2,964  (41,301) 53,082  7,277 
Foreign currency translation adjustment, net of tax 7,438  3,237  444  13,151  8,489  1,164 
Comprehensive income/(loss) (3,792) 24,873  3,408  (28,150) 61,571  8,441 
Comprehensive income/(loss) attributable to non-controlling interests (691) 1,467  201  (1,942) 881  121 
Comprehensive income/(loss) attributable to Huize Holding Limited (3,101) 23,406  3,207  (26,208) 60,690  8,320 
Weighted average number of common shares used in computing net profit per share            
Basic and diluted 1,021,183,878  995,606,092  995,606,092  1,022,391,802  1,004,018,221  1,004,018,221 
Net profit/(loss) per share attributable to common shareholders            
Basic and diluted (0.01) 0.02  0.00  (0.04) 0.05  0.01 

Huize Holding Limited
Unaudited Reconciliations of GAAP and Non-GAAP Results
(all amounts in thousands, except for share and per share data)
  For the Three Months Ended September 30, For the Nine Months Ended September 30,
Net profit/(loss) attributable to common shareholders (10,539) 20,169  2,763  (39,359) 52,201 7,156
Share-based compensation expenses 744  (1,684) (231) 4,447  3,709 508
Non-GAAP net profit/(loss) attributable to common shareholders (9,795) 18,485  2,532  (34,912) 55,910 7,664


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