Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2024

Commission File Number: 001-39216

 

 

Huize Holding Limited

(Registrant’s Name)

 

 

49/F, Building T1, Qianhai Financial Centre, Linhai Avenue,

Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen 518000

People’s Republic of China

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒    Form  40-F ☐

 

 

 

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EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Press Releases

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Huize Holding Limited
By		:		/s/ Ronald Tam
Name		:		Ronald Tam
Title		:		Co-Chief Financial Officer

Date: September 26, 2024

Exhibit 99.1

Huize Holding Limited Reports Second Quarter 2024 Unaudited Financial Results

SHENZHEN, China, September 25, 2024 (GLOBE NEWSWIRE) – Huize Holding Limited, (“Huize”, the “Company” or “we”) (NASDAQ: 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 second quarter ended June 30, 2024.

Second Quarter 2024 Financial and Operational Highlights

 

•

Resilient business performance: Gross written premiums (“GWP”) moderated slightly to RMB1,336.9 million in the second quarter of 2024, compared to RMB1,377.7 million in the same period of 2023. Renewal premiums increased by 42.8% year-over-year to RMB685.4 million in the second quarter of 2024, driven by our high-quality customer base and continued robust persistency ratios.

 

•

Sequential improvement in gross profit margin: Gross profit margin was 31.3% in the second quarter of 2024, up by 2.3 percentage points sequentially, mainly driven by our disciplined control on channel expenses and optimization in product mix.

 

•

Cumulative number of insurance clients served increased to 9.8 million as of June 30, 2024. Huize cooperated with 125 insurer partners, including 78 life and health insurance companies and 47 property and casualty insurance companies, as of June 30, 2024.

 

•

As of June 30, 2024, cash and cash equivalents were RMB236.2 million (US$32.5 million).

Mr. Cunjun Ma, Founder and CEO of Huize, said, “Our business demonstrated resilience amidst a challenging economic and operating environment, with total GWP reaching RMB1.34 billion in the second quarter of 2024. These results reflect our strategic vision and core competencies in attracting high-quality customers, innovating customized products, developing sophisticated AI solutions, and diversifying into international markets.”

“Our long-term insurance products maintained a GWP contribution above 90% for the nineteenth consecutive quarter, underscoring our commitment to sustainable growth. The overall quality of our customers continued to improve, as evidenced by our record-high average first year premiums (“FYP”) ticket size of RMB 78,000 for savings products and a sustainably high repeat purchase rate for long-term insurance products of 40.5%. Moreover, our high-quality customer base also helped sustain our persistency ratio for long-term life and health insurance products at the industry’s highest levels. As of the end of June 2024, the 13th and 25th-month persistency ratios stood at above 95%.”

“Our expansion into the international market is gaining traction, with revenue contribution from our international business increasing to 11% in the second quarter. We are also pleased to have completed the acquisition of a controlling stake in Global Care, a leading Vietnam-based Insurtech company specializing in digital transformation solutions for the insurance industry through our international arm Poni Insurtech in September. These strategic initiatives will further diversify our revenue streams and solidify our presence globally.”

“Looking ahead, we remain committed to enhancing the customer experience by leveraging cutting-edge technology, further solidifying our position as a leading pan-Asian digital insurance platform. We are focused on diversifying our revenue streams by expanding into high-growth markets in Southeast Asia, reinforcing our strategy for sustainable, long-term growth.”

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Second Quarter 2024 Financial Results

GWP and operating revenue

GWP facilitated on our platform was RMB1,336.9 million (US$184.0 million) in the second quarter of 2024, a decrease of 3.0% from RMB1,377.7 million in the same period of 2023. Within GWP facilitated in the second quarter of 2024, FYP accounted for RMB651.5 million (or 48.7% of total GWP), a decrease of 27.4% year-over-year. Renewal premiums accounted for RMB685.4 million (or 51.3% of total GWP), an increase of 42.8% year-over-year.

Operating revenue was RMB283.0 million (US$38.9 million) in the second quarter of 2024, a decrease of 23.2% from RMB368.2 million in the same period of 2023. The decrease was primarily driven by the decrease in FYP facilitated.

Operating costs

Operating costs were RMB194.4 million (US$26.7 million) in the second quarter of 2024, a decrease of 20.2% from RMB243.6 million in the same period of 2023, primarily due to a decrease in channel expenses.

Operating expenses

Selling expenses were RMB46.8 million (US$6.4 million) in the second quarter of 2024, a decrease of 18.3% from RMB57.3 million in the same period of 2023, primarily due to a decrease in salaries and employment benefits related to employees with sales functions.

General and administrative expenses were RMB49.7 million (US$6.8 million) in the second quarter of 2024, an increase of 33.9% from RMB37.1 million in the same period of 2023. This increase was primarily due to an increase in rental and utilities expenses and share-based compensation expenses.

Research and development expenses were RMB18.1 million (US$2.5 million) in the second quarter of 2024, a decrease of 17.7% from RMB22.0 million in the same period of 2023, primarily due to a decrease in salaries and employment benefits for research and development personnel, as well as a decrease in office expenses.

Net profit and Non-GAAP net profit for the period

Net loss was RMB23.3 million (US$3.2 million) in the second quarter of 2024, compared to net profit of RMB14.1 million in the same period of 2023. Non-GAAP net loss was RMB13.0 million (US$1.8 million) in the second quarter of 2024, compared to non-GAAP net profit of RMB19.0 million in the same period of 2023.

Cash and cash equivalents

As of June 30, 2024, the Company’s cash and cash equivalents amounted to RMB236.2 million (US$32.5 million), compared to RMB249.3 million as of December 31, 2023.

Conference Call

The Company’s management team will hold an earnings conference call at 8:00 A.M. Eastern Time on Wednesday, September 25, 2024 (8:00 P.M. Beijing/Hong Kong Time on Wednesday, September 25, 2024). Details for the conference call are as follows:

Event Title: Huize Holding Limited’s Second Quarter 2024 Earnings Conference Call

Registration Link: https://register.vevent.com/register/BId0560560e56046b6aebe3fdd2b12cd48

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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.

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 and the interest on convertible bond. 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.

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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 RMB7.2672 to US$1.00, the exchange rate on June 28, 2024, 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

[e-mail]

Media Relations

[e-mail]

Christensen Advisory

In China

Ms. Dee Wang

Phone: [phone]

Email: [e-mail]

In U.S.

Ms. Linda Bergkamp

Phone: [phone]

Email: [e-mail]

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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 June 30
		2023				2024
		RMB				RMB				USD
Assets
Current assets
Cash and cash equivalents			249,258				236,161				32,497
Restricted cash			42,307				46,419				6,387
Short-term investments			8,879				5,221				718
Contract assets, net of allowance for doubtful accounts			41,481				65,010				8,946
Accounts receivables, net of allowance for impairment			178,294				145,906				20,077
Insurance premium receivables			927				1,646				226
Amounts due from related parties			383				2,450				337
Deferred costs			6,147				—				—
Prepaid expense and other receivables			78,784				80,407				11,064
Total current assets			606,460				583,220				80,252
Non-current assets
Restricted cash			29,687				29,887				4,113
Contract assets, net of allowance for doubtful accounts			12,495				23,931				3,293
Property, plant and equipment, net			54,107				50,788				6,989
Intangible assets, net			50,743				50,436				6,940
Long-term investments			76,688				70,710				9,730
Operating lease right-of-use assets			115,946				114,750				15,790
Other receivables			—				7,267				1,000
Goodwill			461				461				63
Other assets			419				485				67
Total non-current assets			340,546				348,715				47,985
Total assets			947,006				931,935				128,237
Liabilities and Shareholders’ Equity
Current liabilities
Short-term borrowings			30,000				30,000				4,128
Accounts payable			211,905				232,854				32,042
Insurance premium payables			37,514				42,330				5,825
Contract liabilities			2,728				993				137
Other payables and accrued expenses			34,850				29,015				3,990
Payroll and welfare payable			56,207				35,340				4,863
Income taxes payable			2,440				2,440				336
Operating lease liabilities			16,949				20,047				2,759
Amount due to related parties			2,451				1,593				219
Total current liabilities			395,044				394,612				54,299
Non-current liabilities
Deferred tax liabilities			12,048				12,048				1,658
Operating lease liabilities			129,299				126,636				17,426
Payroll and welfare payable			200				1,507				207
Total non-current liabilities			141,547				140,191				19,291
Total liabilities			536,591				534,803				73,590
Shareholders’ equity
Class A common shares			62				62				9
Class B common shares			10				10				1
Treasury stock			(28,580	)			(29,512	)			(4,061	)
Additional paid-in capital			905,958				905,958				124,664
Accumulated other comprehensive loss			(14,060	)			(12,039	)			(1,657	)
Accumulated deficits			(458,237	)			(474,678	)			(65,318	)
Total shareholders’ equity attributable to Huize Holding Limited shareholders			405,153				389,801				53,638
Non-controlling interests			5,262				7,331				1,009
Total shareholders’ equity			410,415				397,132				54,647
Total liabilities and shareholders’ equity			947,006				931,935				128,237

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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 June 30,												For the Six Months Ended June 30,
		2023				2024								2023				2024
		RMB				RMB				USD				RMB				RMB				USD
Operating revenue
Brokerage income			355,563				271,790				37,400				643,919				573,672				78,940
Other income			12,628				11,161				1,536				23,182				19,591				2,696
Total operating revenue			368,191				282,951				38,936				667,101				593,263				81,636
Operating costs and expenses
Cost of revenue			(238,512	)			(187,469	)			(25,796	)			(412,588	)			(405,361	)			(55,780	)
Other cost			(5,051	)			(6,885	)			(948	)			(10,822	)			(9,188	)			(1,264	)
Total operating costs			(243,563	)			(194,354	)			(26,744	)			(423,410	)			(414,549	)			(57,044	)
Selling expenses			(57,343	)			(46,825	)			(6,443	)			(113,622	)			(91,030	)			(12,526	)
General and administrative expenses			(37,081	)			(49,669	)			(6,835	)			(70,610	)			(72,301	)			(9,949	)
Research and development expenses			(22,003	)			(18,099	)			(2,491	)			(40,315	)			(32,479	)			(4,469	)
Total operating costs and expenses			(359,990	)			(308,947	)			(42,513	)			(647,957	)			(610,359	)			(83,988	)
Operating profit/(loss)			8,201				(25,996	)			(3,577	)			19,144				(17,096	)			(2,352	)
Other income/(expenses)
Interest income, net			1,011				1,096				151				807				2,320				319
Unrealized exchange (loss)/income			(79	)			49				7				(208	)			(244	)			(34	)
Investment loss			(774	)			(1,511	)			(208	)			(315	)			(3,836	)			(528	)
Others, net			5,691				2,954				406				13,012				4,904				675
Profit/(Loss) before income tax expense, and share of (loss)/income of equity method investee			14,050				(23,408	)			(3,221	)			32,440				(13,952	)			(1,920	)
Share of (loss)/income of equity method investee			(7	)			345				47				(994	)			(422	)			(58	)
Income tax expense			—				—				—				—				—				—
Net profit/(loss)			14,043				(23,063	)			(3,174	)			31,446				(14,374	)			(1,978	)
Net (loss)/profit attributable to non-controlling interests			(79	)			286				39				(586	)			2,067				284
Net profit/(loss) attributable to common shareholders			14,122				(23,349	)			(3,213	)			32,032				(16,441	)			(2,262	)
Net profit/(loss)			14,043				(23,063	)			(3,174	)			31,446				(14,374	)			(1,978	)
Foreign currency translation adjustment, net of tax			5,764				(2,623	)			(361	)			5,252				(1,124	)			(155	)
Comprehensive income/(loss)			19,807				(25,686	)			(3,535	)			36,698				(15,498	)			(2,133	)
Comprehensive (loss)/income attributable to non-controlling interests			(79	)			286				39				(586	)			2,067				284
Comprehensive income/(loss) attributable to Huize Holding Limited			19,886				(25,972	)			(3,574	)			37,284				(17,565	)			(2,417	)
Weighted average number of common shares used in computing net profit/(loss) per share
Basic and diluted			1,004,586,294				991,124,813				991,124,813				1,008,291,649				991,969,450				991,969,450
Net profit/(loss) per share attributable to common shareholders
Basic and diluted			0.01				(0.02	)			(0.00	)			0.03				(0.02	)			(0.00	)

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Huize Holding Limited

Unaudited Reconciliations of GAAP and Non-GAAP Results

(all amounts in thousands)

 

		For the Three Months Ended June 30,												For the Six Months Ended June 30,
		2023				2024								2023				2024
		RMB				RMB				USD				RMB				RMB				USD
Net profit/(loss) attributable to common shareholders			14,122				(23,349	)			(3,213	)			32,032				(16,441	)			(2,262	)
Share-based compensation expenses			4,889				10,355				1,425				5,393				7,797				1,073
Non-GAAP net profit/(loss) attributable to common shareholders			19,011				(12,994	)			(1,788	)			37,425				(8,644	)			(1,189	)

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