[Management View]
Key metrics, strategic priorities: Huize reported operating revenue of RMB 284 million for Q1 2025. Gross Written Premiums (GWP) reached RMB 1.4 billion, up 37.83% sequentially. First-Year Premiums (FYP) were RMB 730 million, also up 37.83% sequentially. Renewal premiums grew 64.6% sequentially to approximately RMB 710 million. The company added 90,000 new customers, bringing the total customer base to 11 million. AI integration and international expansion, particularly in Vietnam, were highlighted as key growth drivers.

[Outlook]
Performance guidance, future plans: Huize expects positive momentum in Q2 and Q3 2025, driven by regulatory changes and increased agent migration. The company plans to expand into Singapore by Q3 2025 and the Philippines in the second half of the year. The goal is for overseas markets to contribute 3% of total revenue by 2026.

[Financial Performance]
YoY/QoQ trends compared to expectations/estimates: Operating revenue remained at RMB 284 million. GWP and FYP both increased 37.83% sequentially. Total operating expenses decreased by 29% compared to Q4 2024. The expense-to-income ratio improved by 11.5 percentage points to 29%.

[Q&A Highlights]
Question 1: Hi. This is Amy from Citi. Thank you for the opportunity for me to ask a couple of questions. The first one would be regarding the selling expenses. We noted that the first-year premium facilitated in the first quarter saw around a 15% year-over-year decline. However, selling expenses were up by 7%. What's the gap here? And the second question is on sales momentum in the second quarter and your outlook for the rest of 2025. The industry is expecting another round of pricing rate cuts in the third quarter. Has this somehow boosted customer demand so far? Thank you.

Answer: Thank you, Amy. It's a pleasure to have you again on the call. So I know that you have three questions to address just now. The first one is regarding the year-on-year decline in FYP and versus an increase in selling expenses, I believe. Right? I think to address the question on the FYP decline, I would note that in 2024, in the first quarter, there was actually a pricing cut effective during the quarter, which has also led to rush sales during that quarter. So I think, effectively, we are comparing the first quarter of 2025 versus a relatively high base for the first quarter of last year. So I think that has to do with a high base effect for 2024. Albeit that in the first quarter of this year, we have further driven our revenue growth from not just domestic but also from international markets. So that has to do with the reasons I just cited on the low base high base effect of last year. And then on the gap between the FYP downturn and the channel cost increase, I would note that the international business, in terms of gross margins, is relatively lower than the domestic business. And therefore, I think that will be reflected in what you noted in terms of the gross margin decline in the first quarter of 2025. On your second question regarding the outlook for the rest of the year, we do think that Q1 for 2025 is probably the rock bottom for this year. In Q2, we are seeing very decent momentum. Obviously, the international market is still in a high-growth phase. And for the domestic China market, we are also seeing a revival of growth given that the transition to the power products has basically been complete over the last two quarters. And channels have adjusted to the new product regime. So I think that in Q2, we are seeing growth across different products. And with the expectation for a further pricing rate cut in August 31, which is now widely rumored and expected to be put in place, we do expect that there will be an effect on rush sales in the third quarter, particularly in the months of July and August, where we have seen similar situations in the last year and also in the past few years as well. Although we would note that the pricing rate at this time, because we are speaking versus previous episodes, is relatively muted. And given that we are already in a sort of 2% handle kind of return level, the incitement for consumers to purchase would probably see a diluted effect versus what we have seen in the past years. So we do expect that Q3 will be strong, with August being the peak for domestic sales of savings products. Hope that answered your question, Amy.

Question 2: Good evening, Ron. I'm Kenny from UOB. And I have two questions from my end. First one, how do you expect the enforcement of power across the agency channels to affect your 2A business? And how does it change the overall industry competitive landscape? And my second question is about the latest international revenue contribution in the first quarter. So what is the latest progress of your business expansion plan in Singapore and the Philippines? Yeah. That's all.

Answer: Thank you, Kenny. Appreciate your support. Well, two questions. One on Baoxing Khoi, which is the regulatory rule change impacting commissions for various channels. Given that we have lived through this regulatory change in the last 12 months now, and we do hear and expect that similar measures will be implemented and imposed upon the tied agency channel, you have noted in your question. If such a measure would be implemented in the second half of this year, we do expect that the so-called impact on our business will be positive because what that means is that the playing field is leveled among the different channels, among bankers, brokers, and agencies, tied agencies. And therefore, we do expect that there will be continued so-called exodus of agents from the tied agency model into independent third-party platforms such as ourselves. So we would likely be capturing an additional influx of productive agents if such a measure will be implemented on the agency channel. And on the overall market, I would think that a similar observation will be seen across our competitors as well. And as a whole, then the market would continue to gravitate towards a more independent third-party kind of broker agency distribution model. We do know that right now in China, the third-party intermediaries still account for less than 10%. I think still 5-6% of overall premium distribution versus what we see in more mature and developed markets such as Japan, Hong Kong, or even Singapore, where we see that the intermediary broker agency distribution is as much as 30 to 50% of the market. So in the long-term secular trend, we do see that the intermediation of premium will continue to be in favor of a platform such as ourselves. And the second point that I would note here is that we do see that independent financial advisers or independent agents are increasingly favoring platforms where they can get access to a wide variety of products from different providers such as ourselves. We have over a hundred products on our platform that we can facilitate for agents to serve the customers and also especially in the digital age whereby agents would require digital tools to serve the customers and to make sure that customers have a very efficient and digital purchase journey. And for the likes of the incumbents, this may be a difficult solution to be provided. And where we have a very clear advantage in the competition. So overall, we do think that the impact will be positive, and we would wait and see when the measures will be implemented on the agency channel. And your second question on international market expansion, we are very much on track in terms of our expansion into Singapore. We would likely be able to give a further material update in our next earnings call as to what our Singapore development has materialized into, hopefully, into an operational status by the third quarter. We are working very closely with regulators in the meantime to finalize arrangements and to make sure that our recruitment of necessary personnel for the business is in place. And our target is to be in business on this model by the third quarter of this year. For the Philippines, we are still progressing, given that we are now prioritizing Singapore as a business development market. We likely will see the Philippines in the second half of this year.

[Sentiment Analysis]
Tone of analysts/management: The tone of the analysts was inquisitive and focused on understanding the reasons behind the financial metrics and future outlook. Management's tone was confident and optimistic, emphasizing growth drivers and strategic initiatives.

[Quarterly Comparison]
| Metric | Q1 2025 | Q4 2024 | Change (%) |
|-------------------------------|---------------|---------------|------------------|
| Operating Revenue | RMB 284 million | RMB 284 million | 0% |
| Gross Written Premiums (GWP) | RMB 1.4 billion | RMB 1.015 billion | +37.83% |
| First-Year Premiums (FYP) | RMB 730 million | RMB 530 million | +37.83% |
| Renewal Premiums | RMB 710 million | RMB 431 million | +64.6% |
| Total Operating Expenses | - | - | -29% |
| Expense-to-Income Ratio | 29% | 40.5% | -11.5 pp |
| Cash and Equivalent Liquidity | RMB 202 million | - | - |
| Customer Growth | 90,000 | - | - |
| Total Customer Base | 11 million | - | - |

[Risks and Concerns]
Risks and concerns content: The primary risks include regulatory changes impacting commission structures, potential geopolitical and macroeconomic volatility, and the challenges of international market expansion. The lower gross margins in international markets compared to domestic operations could also impact overall profitability.

[Final Takeaway]
Huize demonstrated strong sequential growth in Q1 2025, driven by AI integration and international expansion. The company is optimistic about future growth, particularly with regulatory changes potentially benefiting independent platforms. The focus on long-term insurance products and the expansion into new markets like Singapore and the Philippines are expected to drive further growth. However, regulatory changes and geopolitical risks remain key concerns. Overall, Huize is well-positioned to leverage its AI capabilities and international strategy to achieve sustainable long-term growth.