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)