Huize Holding Limited Reports Second Quarter 2024 Unaudited Financial Results

Core Viewpoint - Huize Holding Limited reported its unaudited financial results for the second quarter of 2024, showcasing resilience in business performance despite a challenging economic environment, with a focus on strategic growth and international expansion [1]. Financial and Operational Highlights - Gross written premiums (GWP) for Q2 2024 were RMB1,336.9 million, a slight decrease of 3.0% from RMB1,377.7 million in Q2 2023. Renewal premiums increased by 42.8% year-over-year to RMB685.4 million [2][4]. - The gross profit margin improved to 31.3%, up by 2.3 percentage points sequentially, attributed to disciplined control over channel expenses and product mix optimization [2]. - The cumulative number of insurance clients served reached 9.8 million, with partnerships established with 125 insurers [3]. Revenue and Profitability - Operating revenue for Q2 2024 was RMB283.0 million, down 23.2% from RMB368.2 million in Q2 2023, primarily due to a decrease in first-year premiums (FYP) [4]. - The net loss for Q2 2024 was RMB23.3 million, compared to a net profit of RMB14.1 million in the same period of 2023. Non-GAAP net loss was RMB13.0 million, down from a non-GAAP net profit of RMB19.0 million [8][22]. Cost Management - Operating costs decreased by 20.2% to RMB194.4 million in Q2 2024, primarily due to reduced channel expenses [5]. - Selling expenses were RMB46.8 million, down 18.3% from RMB57.3 million in Q2 2023, while general and administrative expenses increased by 33.9% to RMB49.7 million [6][7]. Strategic Initiatives - The company maintained a long-term insurance product GWP contribution above 90% for the nineteenth consecutive quarter, indicating a commitment to sustainable growth [3]. - Revenue contribution from international business rose to 11% in Q2 2024, supported by the acquisition of a controlling stake in Global Care, a Vietnam-based Insurtech company [3]. Cash Position - As of June 30, 2024, cash and cash equivalents were RMB236.2 million, a decrease from RMB249.3 million at the end of 2023 [9].