AIFU Inc. Q4 FY2022 earnings call

• China's insurance industry is transforming with life insurance sales teams becoming more professional, specialized, and flattened. Fanhua initiated a strategy of professionalization, career-based development, digitalization, and open platform. • Established professional empowerment systems like Triple F (family office consultant, fund, retirement planner, family policy custodian) and Three A training programs for sales supervisors. Over 26,000 agents attended training in 2022. • Put in place product lines including trust + service + insurance, house and elderly care service + insurance, and insurance policy custodian service + insurance, using an insurance as a service model. Implemented RRR marketing model for consistent professional services. • Built digital platform infrastructure with investments in technologies like FPO Version 3.0, Enterprise recheck, etc. • Growth metrics: 100,000 premium agents' contribution to new business rose to 56% in 2022; affiliated fund RONS Open Platform achieved profitability; 2022 total GWP RMB12.9 billion, operating income RMB168 million; Q4 2022 total GWP RMB3.6 billion, FYP grew 19.6%.

No detailed breakdown of product segments with absolute terms and revenue contribution % provided in the transcript.

• Aim to achieve no less than 50% year-over-year growth in life insurance first year premiums and operating income in 2023. • Target to acquire 10 insurance intermediate companies in 2023 contributing no less than one billion first-year premiums. • Expect to invest in or acquire majority interest in 20 to 30 regional leading insurance intermediate companies in the next two years.

• The accuracy of forward-looking statements may be impacted by business risks and uncertainties outlined in SEC filings.

Q: Outlook for insurance agent and brokerage industry in China and Fanhua's position; details on open platform strategy and acquisitions.

A: Competitive landscape in insurance intermediary is changing with sales organizations becoming elite-based and fragmented, leading to competition among platforms driven by digital tech. Open platform strategy focuses on empowering participants with products, professional systems, digital tools, and services. Plan to acquire 20-30 regional leading companies, 10 in 2023 contributing over 1B FYP, and use digital tenant system for independent teams.