In 2025, amid the deepening implementation of the "reporting-compliance integration" regulatory policy, the insurance intermediary industry faced dual challenges of rising customer acquisition costs and shrinking commission margins. As a leading internet-based insurance intermediary, Shouhui Group delivered mixed results, achieving rapid scale expansion and a successful listing on the Hong Kong Stock Exchange while also revealing significant profitability pressures, making it a representative case of the industry's ongoing transformation. Its operational trajectory reflects both the resilience of top players and the broader challenges the insurance intermediary sector must address.
The year 2025 marked a milestone for Shouhui Group. In May, the company was successfully listed on the main board of the Hong Kong Stock Exchange, completing a key step in its capital market strategy. By year-end, total premium volume surpassed RMB 11.2 billion for the first time, a 37% year-on-year increase, with first-year premiums surging to RMB 4.5 billion, up nearly 50%. Annual revenue reached RMB 1.469 billion, maintaining a steady growth rate of 5.90%. The company's scale continued to expand, with cumulative policyholders exceeding 4.16 million and over 30,000 contracted agents. Operating across 15 provincial-level regions, Shouhui Group evolved from an online startup into a comprehensive life insurance intermediary group.
Throughout the year, the company took multiple steps to strengthen its business structure. In December, its subsidiaries completed a brand unification initiative to enhance corporate identity. It deepened its presence across three major platforms—Xiaoyusan, Kachabao, and Niubao 100—building an end-to-end service system for individuals, agents, and enterprises. On the technology front, it launched tools such as AI Panshi 1.0, aiming to improve efficiency through technological innovation. Early in 2026, the group acquired overseas equity to explore international markets while focusing on customized dividend insurance and agent IP development to solidify its market position.
Despite impressive growth metrics, profitability remained under pressure. Full-year gross profit fell to RMB 483 million, down 8.70% year-on-year, while the gross margin narrowed from 38.10% to 32.90%, indicating continued erosion of profit margins.
Notably, the group’s reported net profit showed a dramatic turnaround, swinging from a loss of RMB 1.356 billion in 2024 to a profit of RMB 7.936 billion in 2025—a 685.20% surge. However, this increase was largely attributable to one-off accounting adjustments. Excluding these non-recurring items, adjusted net profit was only RMB 200 million, down 17.10% year-on-year, indicating a decline in actual operating profitability.
Profitability challenges stemmed from both industry-wide conditions and the company’s own business structure. Following the full implementation of the "reporting-compliance integration" policy, industry-wide commission rates declined. Although Shouhui Group’s core insurance transaction services segment accounted for 99% of revenue and posted a 5.60% year-on-year increase in revenue, gross profit in this segment fell by 9.73%, with the gross margin dropping 5.50 percentage points. Reduced commissions and rising channel costs made it increasingly difficult for the core business to remain profitable.
While the insurance technology services segment performed strongly, with both revenue and gross profit increasing over 50% and a gross margin as high as 65.60%, its small scale limited its ability to offset profit declines in the core business.
Rising costs further strained profitability. The group’s operating expenses reached RMB 986 million in 2025, up 14.90% year-on-year, outpacing revenue growth. A significant increase in commission and channel promotion expenses was the main driver.
To control costs, the company optimized its workforce structure, reducing employee costs by 8.97% year-on-year. However, the number of full-time employees actually increased from 640 to 692, suggesting lower average compensation. While this helped manage reported costs, it also raised concerns about talent retention.
From an industry perspective, Shouhui Group’s challenges are not unique. The "reporting-compliance integration" policy has accelerated industry consolidation, with the number of intermediaries declining for six consecutive years and market concentration increasing. While leading firms can leverage scale to maintain their position, their profit models remain under pressure.
Over the past decade, Shouhui Group has grown from leveraging traffic advantages to creating hit products and achieving a public listing—a path emblematic of internet-based insurance intermediaries. Yet it faces the same industry-wide challenge: reducing overreliance on commissions and balancing scale with profitability.
Looking ahead to 2026, Shouhui Group has outlined four strategic priorities—product innovation, channel expansion, technological advancement, and overseas growth—as it seeks to overcome operational bottlenecks.
During this critical phase of industry transformation, only by shifting from a scale-driven to a value-driven approach—using technology to reduce costs and improve efficiency, optimizing business structures, and unlocking high-value-added services—can companies withstand ongoing market realignment.
Shouhui Group’s future performance will not only impact its own growth but also serve as a key reference for the broader insurance intermediary sector. Its ability to balance scale and profitability will be closely watched by the industry.