SHENZHEN, China, June 06, 2025 (GLOBE NEWSWIRE) -- Huize Holding Limited, ("Huize", the "Company" or "we") $(HUIZ)$, a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia, today announced its unaudited financial results for the quarter ended March 31, 2025.
First Quarter 2025 Financial and Operational Highlights
-- Robust growth in insurance premiums: Gross written premiums ("GWP")
reached RMB1,437.3 million for the first quarter of 2025, representing an
increase of 37.8% from RMB1,043.0 million in the final quarter of 2024.
First year premiums ("FYP") also rose 30.9% sequentially to RMB730.4
million in the first quarter of 2025. Increases in premiums were driven
primarily by our high-quality customer base, sustainably high persistency
ratios, and the diverse insurance product offerings that we provide on
our platform.
-- Improving operational efficiency: Total operating expenses declined by
28.9% sequentially to RMB82.7 million in the first quarter of 2025. Our
expense-to-income ratio improved significantly from 40.7% in the final
quarter of 2024 to 29.1% in the first quarter of 2025, reflecting the
operational efficiency improvement driven by our recent cost-optimization
initiatives and the integration of our proprietary AI into everyday
workstreams.
-- The cumulative number of insurance clients served increased to 11.0
million as of March 31, 2025. Huize cooperated with 143 insurer partners
in mainland China and internationally, including 83 life and health
insurance companies and 60 property and casualty insurance companies, as
of March 31, 2025.
-- As of March 31, 2025, cash and cash equivalents were RMB201.7 million
(US$27.8 million).
Mr. Cunjun Ma, Founder and CEO of Huize, said, "We are pleased to deliver another quarter of resilient business results, with operating revenue exceeded RMB280 million, while gross written premiums and first-year premiums facilitated on our platform increasing 38% and 31% sequentially, reaching RMB1.4 billion and RMB730 million, respectively."
"Throughout the quarter, we remained focused on acquiring and serving high-quality, mass-affluent customers. The average age of customers who purchased long-term insurance products in the quarter was 35.0 years old, among which 66.4% were in higher-tier cities. By the end of February, our 13(th) and 25(th) month persistency ratios for long-term life and health insurance products remained at industry-high levels of more than 95%, reflecting the high quality of customers we acquired through various channels."
"We continue to develop and launch differentiated customized products with insurer partners. Market demand for wealth protection solutions has intensified amid a declining interest rate environment. In response, we partnered with New China Life to launch "Bliss No. 3," a savings product striving to achieve sustainable returns for customers. Additionally, we expanded our portfolio of customized participating products. Building on the "Fu Man Jia" series co-launched with Aviva-COFCO, we partnered with Cathay Lujiazui Life Insurance on "Jin Man Yi Zu No.6", a participating incremental whole life insurance product. This was followed by the launch of "Xing Hai Hui Xuan", a participating annuity product co-developed with Pramerica Fosun Life Insurance. These customized products were designed to cater to the industry-wide demand shift from fixed returns to floating-returns, further solidifying our leadership in China's participating insurance segment."
"Our proprietary AI solutions are increasingly integrated across our operations, enhancing service efficiency and supporting sustainable growth. Notably, our expense-to-income ratio fell by 11.5 percentage points sequentially, reaching 29.1% in the first quarter of 2025. With private large-language model deployments, we are not only realizing meaningful cost savings, but also reinforcing the security and effectiveness of our data capabilities, ensuring regulatory compliance."
"During the quarter, we launched an AI-powered smart portal on Huize's app, offering 24/7 insurance agent support. Our AI services now cover key customer lifecycle touchpoints including policy inquiries and product matching, serving an average of over 15,000 users daily. We are also revolutionizing after-sales claims processing through Xiao Ma Claim's AI agents, achieving end-to-end automation of claims reporting, review, and payout. This innovation is expected to reduce processing time on Xiao Ma Flash Claim from one day to one hour upon full rollout. In the first quarter, Xiao Ma Claim facilitated RMB190 million in claims across 36,000 cases, providing customers with efficient and reliable insurance claim services."
First Quarter 2025 Financial Results
GWP and operating revenue
GWP facilitated on our platform was RMB1,437.3 million (US$198.1 million) in the first quarter of 2025, a decrease of 16.3% from RMB1,718.0 million in the same period of 2024. Within GWP facilitated in the first quarter of 2025, FYP accounted for RMB730.4 million (or 50.8% of total GWP), a decrease of 14.8% year-over-year. Renewal premiums accounted for RMB706.8 million (or 49.2% of total GWP), a decrease of 17.9% year-over-year.
Operating revenue was RMB283.8 million (US$39.1 million) in the first quarter of 2025, a decrease of 8.5% from RMB310.3 million in the same period of 2024. The decrease was primarily driven by the decrease in FYP facilitated.
Operating costs
Operating costs were RMB210.5 million (US$29.0 million) in the first quarter of 2025, a decrease of 4.4% from RMB220.2 million in the same period of 2024, primarily due to a decrease in channel expenses.
Operating expenses
Selling expenses were RMB47.3 million (US$6.5 million) in the first quarter of 2025, an increase of 7.0% from RMB44.2 million in the same period of 2024, primarily due to an increase in advertising and marketing expenses.
General and administrative expenses were RMB21.9 million (US$3.0 million) in the first quarter of 2025, a decrease of 3.2% from RMB22.6 million in the same period of 2024. This decrease was primarily due to a decrease in rental and utilities expenses.
Research and development expenses were RMB13.5 million (US$1.9 million) in the first quarter of 2025, a decrease of 6.3% from RMB14.4 million in the same period of 2024, primarily due to a decrease in rental and utilities expenses.
Net loss and non-GAAP net loss for the period
Net loss attributable to common shareholders was RMB8.6 million (US$1.2 million) in the first quarter of 2025, compared to net profit attributable to common shareholders of RMB6.9 million in the same period of 2024. Non-GAAP net loss attributable to common shareholders(1) was RMB10.9 million (US$1.5 million) in the first quarter of 2025, compared to non-GAAP net profit attributable to common shareholders of RMB4.4 million in the same period of 2024.
Cash and cash equivalents
As of March 31, 2025, the Company's cash and cash equivalents amounted to RMB201.7 million (US$27.8 million), compared to RMB233.2 million as of December 31, 2024.
Conference Call
The Company's management team will hold an earnings conference call at 8:00 A.M. Eastern Time on Friday, June 6, 2025 (8:00 P.M. Beijing/Hong Kong Time on Friday, June 6, 2025). Details for the conference call are as follows:
Event Title: Huize Holding Limited's First Quarter 2025 Earnings Conference Call
Registration Link:
https://register-conf.media-server.com/register/BI0fd426b7ca0e4dd38aa44d82b96a9c7e
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 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 http://ir.huize.com.
About Huize Holding Limited
Huize Holding Limited is a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia. Targeting mass affluent consumers, Huize is dedicated to serving consumers for their life-long insurance needs. Its online-to-offline integrated insurance ecosystem covers the entire insurance life cycle and offers consumers a wide spectrum of insurance products, one-stop services, and a streamlined transaction experience across all scenarios. By leveraging AI, data analytics, and digital capabilities, Huize empowers the insurance service chain with proprietary technology-enabled solutions for insurance consultation, user engagement, marketing, risk management, and claims service.
For more information, please visit http://ir.huize.com or follow us on social media via LinkedIn .
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. 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. 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 RMB7.2567 to US$1.00, the exchange rate on March 31, 2025, 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
Kenny Lo
Investor Relations Manager
investor@huize.com
Media Relations
mediacenter@huize.com
Christensen Advisory
In China
Ms. Dee Wang
Phone: +86-10-5900-1548
Email: dee.wang@christensencomms.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Huize Holding Limited
Unaudited Condensed Consolidated Balance Sheets
(all amounts in thousands, except for share and per
share data)
As of December 31, As of March 31,
-------------------- ---------------------
2024 2025
-------------------- ---------------------
RMB RMB USD
Assets
Current assets
Cash and cash
equivalents 233,207 201,708 27,796
Restricted cash 61,708 54,525 7,514
Short-term
investments 5,000 3,137 432
Contract assets,
net of allowance
for doubtful
accounts 71,085 60,680 8,362
Accounts
receivables, net
of allowance for
impairment 157,080 191,794 26,430
Insurance premium
receivables 1,763 1,640 226
Amounts due from
related parties 995 1,204 166
Prepaid expense and
other receivables 68,171 68,225 9,402
Total current assets 599,009 582,913 80,328
---------------- -------- -------
Non-current assets
Restricted cash 29,883 29,883 4,118
Contract assets,
net of allowance
for expected
credit losses 28,435 24,195 3,334
Property, plant and
equipment, net 47,083 44,590 6,145
Intangible assets,
net 68,840 69,785 9,617
Long-term
investments 66,716 69,132 9,527
Operating lease
right-of-use
assets 20,715 17,126 2,360
Goodwill 14,536 14,536 2,003
Other assets 8,981 8,700 1,199
Total non-current
assets 285,189 277,947 38,303
---------------- -------- -------
Total assets 884,198 860,860 118,631
---------------- -------- -------
Liabilities and
Shareholders' Equity
Current liabilities
Short-term
borrowings 50,000 53,000 7,304
Accounts payable 202,054 202,697 27,932
Insurance premium
payables 56,042 47,531 6,550
Other payables
and accrued
expenses 44,434 33,446 4,606
Payroll and
welfare payable 41,005 41,776 5,757
Income taxes
payable 2,575 2,575 355
Operating lease
liabilities 16,743 14,901 2,053
Amount due to
related parties 2,495 - -
Total current
liabilities 415,348 395,926 54,557
---------------- -------- -------
Non-current
liabilities
Long-term
borrowings - 6,990 963
Deferred tax
liabilities 14,875 14,848 2,046
Operating lease
liabilities 24,082 19,806 2,729
Payroll and
welfare payable 649 305 42
Accounts payable - 2,713 374
Total non-current
liabilities 39,606 44,662 6,154
---------------- -------- -------
Total liabilities 454,954 440,588 60,711
---------------- -------- -------
Shareholders' equity
Class A common
shares 63 63 9
Class B common
shares 10 10 1
Treasury stock (29,513) (29,513) (4,067)
Additional
paid-in capital 909,930 909,930 125,392
Accumulated other
comprehensive
loss (12,864) (12,311) (1,697)
Accumulated
deficits (458,886) (467,473) (64,414)
Total shareholders'
equity attributable to
Huize Holding Limited
shareholders 408,740 400,706 55,224
Non-controlling
interests 20,504 19,566 2,696
---------------- -------- -------
Total shareholders'
equity 429,244 420,272 57,920
---------------- -------- -------
Total liabilities and
shareholders' equity 884,198 860,860 118,631
---------------- -------- -------
Huize Holding Limited
Unaudited Condensed Consolidated Statements of Comprehensive
Income/(Loss)
(all amounts in thousands, except for share and per
share data)
For the Three Months Ended March 31,
----------------------------------------------
2024 2025
------------ --------------------------------
RMB RMB USD
Operating revenue
Brokerage income 301,882 271,850 37,462
Other income 8,430 11,939 1,645
----------- ------------- -------------
Total operating
revenue 310,312 283,789 39,107
----------- ------------- -------------
Operating costs and
expenses
Cost of revenue (217,922) (209,012) (28,803)
Other cost (2,273) (1,471) (203)
----------- ------------- -------------
Total operating
costs (220,195) (210,483) (29,005)
----------- ------------- -------------
Selling expenses (44,205) (47,320) (6,521)
General and
administrative
expenses (22,632) (21,905) (3,019)
Research and
development
expenses (14,380) (13,471) (1,856)
----------- ------------- -------------
Total operating
costs and expenses (301,412) (293,179) (40,402)
----------- ------------- -------------
Operating
(loss)/profit 8,900 (9,390) (1,295)
----------- ------------- -------------
Other
income/(expenses)
Interest income 1,224 675 93
Unrealized
exchange loss (293) (147) (19)
Investment
income/(loss) (2,325) 214 30
Others, net 1,950 736 101
----------- ------------- -------------
(Loss)/profit before
income tax, and
share of loss of
equity method
investee 9,456 (7,912) (1,090)
----------- ------------- -------------
Income tax
expense - (152) (21)
----------- ------------- -------------
Share of loss of
equity method
investee (767) (1,460) (201)
----------- ------------- -------------
Net (loss)/profit 8,689 (9,524) (1,312)
----------- ------------- -------------
Net (loss)/profit
attributable to
non-controlling
interests 1,781 (937) (129)
----------- ------------- -------------
Net (loss)/profit
attributable to
Huize Holding
Limited 6,908 (8,587) (1,183)
----------- ------------- -------------
Net (loss)/profit 8,689 (9,524) (1,312)
Foreign currency
translation
adjustment, net
of tax 1,499 553 76
Comprehensive
(loss)/profit 10,188 (8,971) (1,236)
----------- ------------- -------------
Comprehensive
(loss)/income
attributable to
non-controlling
interests 1,781 (937) (129)
----------- ------------- -------------
Comprehensive
(loss)/income
attributable to
Huize Holding
Limited 8,407 (8,034) (1,107)
----------- ------------- -------------
Weighted average
number of common
shares used in
computing net
profit per share
Basic and diluted 988,410,632 1,008,857,623 1,008,857,623
Net (loss)/profit
per share
attributable to
common
shareholders
Basic and diluted 0.01 (0.01) (0.00)
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 March 31,
----------------------------------------------
2024 2025
-------------- ------------------------------
RMB RMB USD
Net (loss)/profit
attributable to common
shareholders 6,908 (8,587) (1,183)
Share-based
compensation
expenses (2,558) (2,354) (324)
Non-GAAP net
(loss)/profit
attributable to common
shareholders 4,350 (10,941) (1,508)
---------- ------------ ---------
______________________
(1) Non-GAAP net loss attributable to common shareholders is a non-GAAP financial measure. For more information, please see the section of "Use of Non-GAAP Financial Measure Statement" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.
(END) Dow Jones Newswires
June 06, 2025 05:00 ET (09:00 GMT)