HUIZ - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Huize Holdings Limited Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, we will have a question-and-answer session. Today's conference call is being recorded, and a webcast replay will be available. Please visit Huize's IR website at ir.huize.com under the Events and Webcast section. hand over to host your like Ms. today, now the to conference speaker I'd Investor Relations Huize's Hu, Harriet Director. ahead, go Please Harriet.

Harriet Hu

of Thank you, call quarter conference to our Amber. Hello, everyone, for and the welcome earnings XXXX. second

were released financial available both IR our operating Our and Newswire. earlier on the and website and are today currently results

also to forward-looking I as explained that also the applies are note this you call Safe statements. press Harbor non-GAAP we continue, which the release refer earnings which Before statement SEC. will in and release, making be we Please would like discuss today, will to in our earnings we with our to filings measures thoroughly more

we us the call for the details performance operational to for the and Mr. Tam. second overview Mr. then Joining Cunjun Ronald Company's highlights for Founder Mr. Co-CFO, call by Mr. of the before Ma the provide and up CEO, Ma; of Li start will providing XXXX. Co-CFO, will now financial are Ma. Mr. COO, turn results I an Tam will the today Mr. open Mr. our the on and Jiang; over quarter Minghan period questions. call Xiao;

Cunjun Ma

and caused pandemic earnings on Hello, product in value. continued In thank joining restriction focus Language] disruptions regional lifetime China. our quarter by strong in for uncertainty as capabilities resilience XXXXX demonstrate to innovation everyone, and and well [Foreign second solid users to by digitalization ongoing as economic cultivating quarter second demand insurance depth conference Thanks caused our Huize's Language] [Foreign business call. you the Huize's despite softening

on or insurance our the Thereby up and omnichannel insurance facilitated FYP building the employees on platform quarter digitalization remarkable to million, XXX FYP achieving products first-year every we by premiums, digital product. quarter, growth. total written drive on increased GWP our insurance to reflecting XX% continued was press of on quarter, premiums have amounted ecosystem. facilitated growth industry high-quality an total second year-over-year Correspondingly, mix, with second second Meanwhile, million, RMB present of and the growth. offerings our competitive year-over-year for our by we product on [Foreign GWP in to In above savings In terms strong operating increased RMB by another that comprehensive XXX a service clients platform our increased business our We long-term strategic product have executing XXth RMB savings RMB to XX.X% revenue backdrop, our of Language] of XX.X%, consumer supported and we the shifting million, total preferences also million. In contribution remaining strategically products. the distribution consecutive of XXX product insurance year-over-year macroeconomic quarter, the to XX.X% XXX promoting the focused or response XXX to by XX.X% our age in long-term quarter. maintained of In distributing year-over-year. have

while We robust a maintained growth. have also business high-quality recording

average quarter age our insurance of our customers were XX.X% years an GSEs higher long-term of As accumulative from insurance clients of about million. number X.X In second the of with reached XX.X old. June,

long-term RMB and ticket RMB approximately XX,XXX terms respectively. FYP, quarter second insurance size average the the long-term were of In in products X,XXX and of savings products

middle co-developed [Foreign levels of aged, insurance product in we premium. the the Our In extend our of and the the remained wide of for [indiscernible] customers. Language] for by have This and high the year-over-year. quarter, well to coverage long the for high-quality average customers as insurance of term FYP XXX the persistency XX.X partners. second life the We month and end [Technical a pleased at As XX% and products are share inclusive new product Everbright ratios elderly, with spectrum co-developed health industry of cumulative ability to XXth to Life as with co-operated GWP line retirement Moreover, percentage Sun increased Life our the Difficulty] scenarios. of demonstrates satisfy respectively. product second annuity insurance XXth XX% to we points quarter, needs

whole the claims single life insurance to in we increasing Insurance the July, into needs settlement To case reached policy assisted our settlement of to amount last We develop long a ability policyholders' highlighting our billion in service RMB X has approximately XX,XXX [Foreign customers. a Huize X.X customers satisfy appropriate gain reached product Our million, product our service a including claim for insurance high-quality system in claim launched users. insight in extending need upgraded and their immediate of million. users cases claims family insurance with of members the our Language] highest RMB most XXX total RMB first In by Huize total June claims. half, and the amounts claim the

X.XX cost to Within disciplined our implementation expenses these by operational Language] disputes amount and G&A organizational million. the a In claims, our RMB we a following improve. have handling assisted control group settlement quarter decreased Meanwhile, total of in and with continued of XX% efficiency expenses the our second sequentially. [Foreign further claim optimization, wide XXX structure measures selling

and also to share and reduce achieve build we that would development strategic of Language] business from optimization workflow. acquiring resource and the the our fixed integration like productivity [Foreign operational staff omnichannel I customers businesses, forward, Going continue cost valuable establishing ABC roadmap long-term or service will base sustainable to new and agents, them. to integrate an digital insurance to our customers, improve through with progress on apart customers, relationships ecosystem efficiency to

with accelerated and businesses, than actively consultant to to more To engagement of achieved communications users. interactions, telemarketing in users transformation together and continue activities sales have digital service us These have product the conversion of new also industry. and provided reach more various customers. depth than XXXX we XXX,XXX streaming we live our upgrades. launched drive enabled quarter, a second and better In through the promotional have with existing business We growth

covering revenue project digital billion with For X business total million. first contribution typing Beijing, Shanghai, registered our its our Sichuan, we by to services to premium of to striving over [Foreign RMB instance, RMB was facilitated the and the through quarter, we lines. business XX second quarter insurance agent third the agents. with To empower our empowered Guangdong expanded across the and over the first collect of million wide insurance in insurance scenarios Language] reached of provide a Life, engine Shenzhen. we out with [indiscernible] the agents, residents line business six customers store region reach range XXXX. and professional pieces the service agents of from business Moreover, months technology data To-A in traffic business FYP of opened XX.X have our approximately in X.XX offline our independent acceleration In six them Shenzhen

industry integrated business leading experience customers will after We model as model. scenarios we'll this regions to insurance through And enable other that’s point proven extend sustainable. insurance XX model. digitalization operations operational will a this, whole a all online to empower to our and full starting capabilities of offer to drive and and our us use business Within be [Foreign the integrated are chain the offline industry our and of the offline years our products value range online Language] across

key We the to customer repeat services savings and CFO, thereby and long-term protection, value-added and of our areas turn technology sustainable and retirement. prepared to value Our the Ron XXXX. Mr. our purchase retention medical, and the to he strive achieving partners, insurance the provide highlights concludes of of financial remarks second provision development and This I lifetime our will insurance services business diversified enhance the Language] in customers, rate call growth. an will quarter products over of and now for [Foreign our my for overview today. of Tam,

Ronald Tam

Ma you, Harriet. everyone. and Mr. you, thank Thank evening, Good

purpose from release results recap few the like uploaded earnings for to I to call, for the For full items, financial refer earnings And would would quarter. for financial to a this details. line the detailed second our of takeaways operational of you like key discussion a I quickly and

quarter is [ph] focus The in strong the our environment adapt million. selling against environment to much report we category regulatory continued quarter, XXX total Difficulty] in XXXX to Beyond] mainly increased of and solid FYP for by and We improved driven very XXXX. successful product are delivered testament operational of macro series, [Bee In of agility to highly very RMB distribution GWP set a recovery by X.X% with efficiency. Life model, strategy [ph] to to Huize's strong the of we to with growth, which with been year-over-year second premiums and which first set core which a top has on according top-line and a [Technical market pleased particularly nationwide life business and the to depressed financial on development changing to whole the results the the a coupled the on Hong XX.X% successful economic year-over-year leading of encouraging in execution operating of increasing challenging uncertainties. one growth And second overall product resurgence, COVID year activity insurance is [co-operate] RMB platform. weakened an Kong XXX million, the product No.X or The products the FYP

our medical insurance iterations total insurance year-over-year. very During very Critical category, during the other supply of quarter-over-quarter insurance confidence a XXth it XX% month long-term X% and ratios in much category life as FYP We at X.X% categories. made permit full recovery long-term highly Touching with we platform. premiums The long-term quickly fully our Sun and chain partners health profile macro respectively, the the group new CBIC. whole been second difficult well health, XX% XXth successful and demonstrate increased with as which our other savings suite during important such upon during quarter, user with quarter for has as insurance Everbright With of high-quality of environment. products the the annuity And spectrum RMB spanning our as growing Care and to product we XX% renewal FYP by product, P&C long-term product insurance strong of the products metrics, our by named have and call quarter, series, the on as X.Xx a products retirement we launched annuity, provide high with also upstream levels with year-over-year and well this XXX together continues entire [indiscernible] Darwin product as a a product our renewal insurance savings of strong replenished year-over-year. million Life to persistency other quality savings medical, online of production, we health

with engagement contribution also Meanwhile, quarter. and second and insurance our insurance maximize the capabilities strengthen long-term XX.X acquisition products GWP users. to GWP our products and While of by of in the product contribution of sophisticated a about have lifetime increasing value customer helped the our our year-over-year percentage the us remaining partners customized empowered XX% our potential points innovation

has platform, effective acquisition With our base as omnichannel end provided the the capabilities our distribution reached of the of million June X.X quarter. customer by customer

In a XXXX. Along RMB XXX quarter. to of addition, in million FYP, savings size long-term product in total to XX.X% the ticket of FYP our growth revenue the RMB increased category XX,XXX second operating year-over-year further quarter increased second our average with strong in by the

have the earnings efficiencies. we and for to overall corporate mentioned As optimizing quarter, call, continue we on in emphasis cost place the previous structure our an first operating

of the demonstrating liquidity, the program. have of reflects selling combined reduction to as of a RMB business bring optimization by the leverage this cost QX for and further cash of program, decreased repurchased well future the continue in implementation to XX our and as to for existing growth. current repurchase XX% on program. achieve as continue XX which And wide balance of organizational business was top-line million market execute improve we the to capital under it's a preliminary our operational and approximately of a XX%, of And structure the program sequentially assessment not QX based environment, the which the quarter. XXX,XXX narrowed in base aggregate to we our both of G&A the fixed quarterly of share ADSs. quarter, market June continuing net And shares improved a providing recovery. growth by half as aiming and second loss ample second cash And end year. forward, XXX and have QX from quarter, the our our conditions, on million, to RMB in XXXX, our our second result and operating compared end this we profitability of open down million, equivalents to cost RMB product We've our at to time a optimization group a position repurchase challenging as as withstand And the recorded of With efficiency second we expenses macroeconomic sheet quarter, of balance expect the upon wide going will expenses macro quarter, an our continued same group

in the to for of consumers, remain this for opening aid to for intermediaries A) top-tier on potential business as strategically C) call Thank we into professional We and the growth solutions of move and As like instruments an now high-quality Mr. Huize trends to and today. which which operator. and growth. platform industry in And value we [indiscernible] agents, his native underlying an firmly allocate continue integrates demands will a partner sustain shareholder the remarks, omnichannel Ma capital with and we us mentioned a seamless age build with years, innovative a secular create tremendous Q&A. insurance us opportunities choice partners, becoming the believe up much provide insurance as new over as experience. prepared to growth China, side, our distribution the of for remarks product digital in digital take and generation this long-term that concludes provide open would customers next digital service ecosystem intact well businesses scale user three B) you, that, And will for

Operator

Thank you.

[Operator Zhong begin CICC. the comes first Please your Instructions] now from question from Yu ask session. We of Yu? will line questions. the question-and-answer Our

Unidentified Analyst

be you question, year the is, half market of rates, second your share on current year and products? Here [indiscernible] Language] question some in take I the first can updates operation three and you Thanks. take pandemic portfolio you your this that, of terms corresponding more give as what could have of most product week, do questions. colors think of would [Foreign first last of offline business? the question operation rates the insurance us And of the demand different And and some the on year-over-year the what is second your what's and strategy? And

Ronald Tam

for the questions. It's Ron Thanks here. Okay.

address questions. Let me three these

offline To-A, agents independent first we growth is first question business. we the guess, that the in mentioned started model, on down have quarter very this which picking strong Just kick momentum, opening the year. I in the seeing the have regarding remarks development of have our To-C we that also in the been model

connect this pandemic think and our supply digital the the offline COVID on to as customer this during base agency very the restricting them been end as their as and and to model. effectively, especially tools supply online serve traditional have Difficulty] do to leveraging still is product in I product agents to serve that Connecting customers efficiently well well period offline the [Technical also regional where to resurgence matrix, has offline as with online product ability efficient for a manner. existing which us to independent supply, resurgence

opening in very that you that model really once seen hire mentioned strong just to it's is remarks has progress. see the great we that Second

growing I to covering the And RMB in to model China, independent been this about million FYP reached regions by connected almost Shenzhen the to including Sichuan. this Guangdong, year also six Beijing, And and Tier-X business has first are see shared months XXX think To-A year. of in the opening we agents Shanghai, target do XX the million already in has by We RMB we facilitated the major end. number that's remarks that that the and Tier-X

of we the series, then second around will online be commission is products products and of the second question, year the commissions the FYP for long-term the both and the that for XX%, is looking But health for that paid on commissions, [first] products essentially lifetime [ph] the for [indiscernible] commissions rates year think the products, health for product, the the I value we renewal. platform, XX%. by the think commission's XX% XXX%, at being for that LTV various I For the are backend takeaways

health for XXX% getting essentially, So commissions. products, LTV we're long-term

much we to value, XX% well, around products, pretty getting we're savings lifetime are to first in the XX% year as five. And for the getting the two long-term, for another year. XX% For

So to question now. products for third the various customer the weakness with will market, for of right the the in And second that year, be respect cetera. the regarding demand, strategy, rates the take et the softening half continued the given and

for weakness, this new in now the launched seeing expected products we're weak. right that the think is demand we counter To market type is to be products have I I continued what the be innovative to think protection marketplace. very in

[indiscernible] products, well version as CPIC as Critical Darwin the the example, have For with co-operated of we which new Care.

are XX continued in third we months. recovery life I product, quarter, product demand now the product. the in on each and showing We think of the that been catering the major for success especially And been I seeing strong that a on savings will product new to the the consumer next we're seeing do particular have in segments, pretty think much also perspective product this in for which preferences, still growth in the are whole fact we momentum that's be product see market, products the because segment focus weakness a the sequentially in economy. QX the demand still increasing for the the

and channel. leveraging more market. new that savings have scale I in customer the that getting to a product think also our think acquisition, more to on we are IP, XX iterations will of precise product already involved next we in product regards I successful drive continue we With for to growth So launches on months which

sales be existing [SEM] of on product To-C the channels, we're on acquisition the can existing in upselling referrals And gross internally more drive investment customers new drive the by concerted more customer leveraging improve we also and so QX our level. In effort the our IPs [ph] a and terms to and our front. traffic existing much to really more also margins showing of overall our from the we customer will on on that customer SEO our

that continued another the in have We will And to of in G&A I target to continue the So on the labor to multiple to be is QX QX, would remarks guess as in which wanted to fixed additional the thing company XX% reduction and in reduction. that think we overall, I like expense we strategy cost drive by opening well XX% end the second cost space year, product kind base, the cost as control. the fronts. half Thanks. of alluded

Operator

Yu? Do you questions, have any further

Unidentified Analyst

Very clear. No thanks.

Operator

Thank very you much.

question question, of Citi. your from next the Our Chen line from Amy. comes Amy ask Please

Amy Chen

for you, Thank giving questions. management, ask chance Hi. to me the

first And and achieve on quarter management maintain half first our take be second the one still launched compared guidance fourth mentioned commission critical Or our that the question for we rates Do we we products. the third the the So for products and the call, life expect new Thank on that rate any result of be, remember I quarter. the profits quarterly will in would newly whole quarter you. have second to do guidance? illness to year? also

Ronald Tam

continued for support and joining Thank the Amy. you, your Thanks us. for call

questions, first one I think the the for take rates the various on products. two

selling the savings around products platform. that for think now or pretty looking so we're on I the we're XX% much at

different to payment. of also XX-year, durations going savings commission difference some a be some need XX-year customers for rates XX-year going the in the or products, will consider might I think be because the a for for you payment, the

that lead will rates. to And difference the also in a commission in so difference duration

to a see So we're savings close for I products. basis, we on at think XX% the looking planned what around

the there also lifetime to There before, essentially with answered commission, first-year just the health the online then So XX%. which two. product, I premium between if for the question savings that compare to respect a differential commissions. because insurance as is kept earlier the you be there'll at the product. pretty small a is With difference But value

the to For product the year, XX% value long-term health for getting selling, a example, probably commission, it versus the will lifetime be illness, fifth a be that LTV will whole second total. like another we're for product XX% life an to critical increasing the XXX% commissions

around five. be year in So the there to two will XX%

a on think And there'll guidance continue So respect the we half, for we I do half in rates require a be maintain, products consumption with financial discretionary cost that difference the quarterly consumer do macro the optimization being And second obviously, the also step, two profitability specifically. think confidence on and that such us macro will is to improved to target very products of for a regarding question and second rely implement take guidance, second I would products -- to so recovered. demand also will consumer guess that recovery covered program. I most for all [indiscernible] be so much continued be the insurance

I strive year. think, guidance. to meet we And our do do maintain a best our the of second we very we half target So -- in targets the these

Amy Chen

Thank very much. That's clear. very you

Operator

Ms. no the time. now back are to Hu remarks. closing conference Harriet questions There further to like at this I'd for hand

Harriet Hu

joining Thank concludes you, we you In the Huize's management free would all call. reach us And of participation any on call. behalf feel further your Thank to like team, require for us. thank in This to today. information, today's you you if for please to out the closing, Operator.

Ronald Tam

you. Thank

Operator

Thank participating. you for you. This concludes today. our conference Thank call for

disconnect. may You now

Harriet Hu	Investor Relations Director
Cunjun Ma	Chairman and Chief Executive Officer
Ronald Tam	Co-Chief Financial Officer
Amy Chen	Citi

Huize Holding Limited (HUIZ) 23 Sep 222022 Q2 Earnings call transcript